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A "First Principles" Approach

Our analysis is grounded in First Principles Thinking. This is the rigorous discipline of deconstructing a business down to its most fundamental, undeniable truths and reasoning up from there. We relentlessly ask and answer three core questions for every company we analyze
A "First Principles" Approach

Imagine trying to understand a complex machine. You could listen to what others say about it, or you could take the time to understand how each individual part actually works and fits together. The second approach – breaking it down to its most basic truths – is what we call Thinking from First Principles.

In investing, it's easy to get caught up in popular opinions, market hype, or complex jargon. Many people invest based on what others are saying ("This is the next big thing!") or simple comparisons ("It's like Company X, but cheaper!"). This is like guessing how the machine works based on its paint job.

At Glavcot Insights, we believe the only way to build real, lasting conviction is to ignore the noise and understand the business from the ground up. We ask simple, fundamental questions – the kind a potential owner would ask before buying the entire company:

  1. What Actually is This Business? (The Engine)
  • What is the fundamental business model? Forget the stock ticker for a moment. How does it really make money and create value for its customers? What problem does it solve for its customers? What are the basic building blocks of its operation?
  1. Why Can it Keep Winning? (The Fortress)
  • What is its durable competitive advantage (the "moat")? Is that advantage getting stronger or weaker over time?What gives this company an edge over its competitors? Is it a beloved brand? Do customers find it hard to switch away? Does it have a unique technology or process? Crucially, is this advantage likely to last? This is its "moat."
  1. What's the Realistic Path Ahead? (The Road Map)
  • Looking beyond the daily news, what are the real, long-term opportunities for this business to grow? And just as importantly, what are the genuine threats that could seriously harm it? What are the core, long-term drivers of its future growth, and what are the most significant risks that could derail it?

By focusing relentlessly on these fundamental questions, we strip away the complexity and speculation. This first-principles approach allows us to build a clear, logical understanding of a business's quality and potential. It's not about finding secret tips; it's about building a solid foundation of knowledge so you can make your own informed decisions with confidence.