During periods of uncertainty, investors often default to first-order thinking and overweight what’s next. In these environments, attractive opportunities can be found by remaining focused on what a business is worth.

Investment returns, in the long run, are dictated by two factors: earnings growth and changes in the earnings multiple. Many high-flying businesses today are trading at exorbitant multiples. What are the implications of this for long-run annual returns for those stocks?

Value investor Connor Leonard successfully filters business opportunities into four subsets. We explore Reinvestment Moats – entrenched flywheels where management can redeploy capital at high incremental rates of return.

"Discussing how the weak US middle-market business outlook is beneficial for the large alternative asset managers

Nicholas Sleep coined the “scale economics shared” model to identify Costco’s long-term advantages. He later found it had even strong applications to internet retailers, betting big on an “overpriced” Amazon in 2007. In today’s digitally accelerated world his observations are finally being reflected among mainstream investors.