David and Goliath

David and Goliath - Malcolm Gladwell

- The advantages of disadvantages (and disadvantages of advantages)
- Inverted U-curve:

• first stage (linear rising) - doing/having more make things better
• second stage - diminshing returns
• third stage (flat) - doing more doesn't make much difference
• fourth stage (falling) - more resources are counterproductive

- Big fish-Little pond effect - it's better to be a big fish in a little pond
- Some difficulties are desirable - emerge stronger
- There are limits to what evil and misfortune can accomplish

investment metrics

Fong Siling @ ColdEye 5 Investment metrics:

1. Return on equity, ROE,
2. Cash flows
3. PE ratio
4. Dividend yield and
5. Net tangible asset backing per share, NTA