Sustainability matters in stock market investing

Table of Contents

Sustainability is key to long-term investment success

The key to getting rich in the stock market

In the following subsections of my book “The Rules of 10 Baggers“, I spent a whole subsection to fully explain to investors that the most important keys to success in stock market investment are “time” and “sustainability”. Investors can escape these two elements and succeed:

Section 1-2, the key to getting rich in the stock market lies in “time” and “sustainability”, pages 29-37

Smart reader like you should have already discovered by analogy: “Time is combined with sustainability, and the result is time compound interest.” This is the fundamental principle of accumulating wealth.

How to judge a investor achieves the final success?

I once wrote an article in this blog “A investor can be sustained or not? how to verify?“, listed 3 creteria. Same topic is also discussed in my book “The Rules of 10 Baggers“:

Section 1-2 “Using 3 Criteria to Determine Whether Successful Investors Are Worth Learning”, pages 33-35, also explains my views in more detail.

In my book “The Rules of Super Growth Stocks Investing“:

This important concept has been explained on pages 64-67 of the subsection “Using 3 Criteria to Select Trustworthy and Successful Investors” of 1-5.

Please note that the three criteria I put forward are not only used to help you select successful investors who are worthy of your trust; what is more important behind it is that “You can use these three criteria to measure themselves and see their investment objectively. Whether it is really successful, and whether it can continue to deliver good results in the future.”

Factors controlled by yourself

In my book “The Rules of Super Growth Stocks Investing“:

Section 1-1, page 19, Key 1 “Start early and invest money consistently
Sections 1-3, pages 38-409, Parameter 1 “Time: The duration of the investment is directly proportional to the performance

No one else can help you with these two elements. In the end, they are the fundamental elements that determine whether the investment is successful.

Sustainability is the key factor in company moat and competitiveness

Buffett’s view

In a 1999 article, published in Fortune magazine, Buffett said: “The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage.”

The so-called durability here is actually the sustainability of competitiveness, or how long can the moat last? The longer the better of course. Because, as I emphasized in my previous blog post There are indeed monopoly in this world“, no moat can exist forever; investors must face this reality. For example, in my previous article “Industries with moat and going downhill“, I cited some famous cases of moats going downhill for investors.

Sustainability is one of the commonalities of 10 baggers

In my book “The Rules of 10 Baggers“:

Section 2-3, “Most of the good performance of 10 baggers is sustainable”, pp. 94-97

But with the information in the book, the point I want to point out is that “sustainability is very important” (remember the section “Using 3 criteria to determine whether successful investors are worth learning” in 1-2 of the book, pages 33-35 ?). Companies that can “consistently” appear in each period of the list in Appendix 5 have a very high rate of reappearing in the next statistical period.

In my book “The Rules of Super Growth Stocks Investing“:

In subsections 1-2, 30 pages, there are 3 reasons for the rise in stock prices: the first of which is 1. The continuous growth of corporate earnings
In subsection 2-1, pages 78-83, when I select companies with strong competitive advantages, I must pass three filtering criteria: Standard 2 “Is the company’s profitability sustainable?
In section 6-1, page 274, how do we pick out the cocoons from a bunch of companies that seem to have potential, and find out the companies that are more likely to become 10baggers in the future?

In other words, “We’re looking for candidates with proven ‘sustainable’ revenue growth and profitability. “There are countless examples that can be used to illustrate that if the growth cannot be sustained, it cannot become a 10-baggers.

Sustainability — credit: environmentalscience.org

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