The book begins with the basics of what to look for when searching for quality companies, especially the importance of choosing firms that have a good return on capital and a strategy for dealing with competition. Next, it moves on to what the authors call the “patterns” that successful companies follow. The third section deals with what can go wrong with companies and stop them being successful. The final part looks at the mechanics of long-term growth investing, including valuation, timing and learning from your mistakes. More than 20 case studies, each with their own lesson, are scattered throughout.
Cunningham has made his reputation through his books about Warren Buffett, who has followed a similar strategy for the past 40 years, while Eide and Hargreaves both run portfolios at the successful hedge fund AKO Capital.