The quest for a compounding machine

Excerpts from Bharat Shah's book 'Of Long-Term Value & Wealth Creation from Equity Investing: Observations, Ideas & Reflections'

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One of the greatest Indian investors, Bharat Shah has more than 25 years of investing experience. An alumnus of IIM Calcutta, he is also a qualified chartered accountant and cost accountant. He is currently Executive Director at ASK Group, a wealth-management company, where he has been on the board since 2008.

He wrote a book in 2013 titled 'Of Long-Term Value & Wealth Creation from Equity Investing: Observations, Ideas & Reflections'. Here are some excerpts from the book on the five pillars of creating a compounding machine.

SIZE OF OPPORTUNITY

The idea of growth is derived from the idea of the size of opportunity and the idea of sustainability of high growth is derived from the character of the opportunity, size of opportunity and vision and competence of the management. When the two get combined, it creates a power of compounding.

EARNINGS GROWTH