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ikussain

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  1. Hi guys, I was wondering what is your approach to assessing a company from a qualitative standpoint short of calling the company directly, e.g. its industry, competitors, structural specifics of the business, its management, pricing power, cyclicality. As an example, I was reading a Form 10 issued by Brunswick Corporation in regard of its fitness equipment division spinoff. The entire industry of commercial fitness equipment is estimated to be as small as 3 billions dolls, so there is not much information online regarding the industry specifics. Those researches that I stumbled upon cost north of 4000 USD, which I am obviously not going to pay.
  2. Hi everyone, I have been reading McKinsey's Valuation book, and stumbled upon this: "Price premiums offer any business the greatest scope for achieving an attractive ROIC, but they are usually more difficult to achieve than cost efficiencies." It is not quite obvious to me 1. why cost advantages are easier to achieve than price advantages, and 2. why price premiums are more beneficial to company's returns than cost advantages. Your help would be very much appreciated.
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