1. MOSL Wealth Creation Study Summary Subash Nayak http://art-of-mental-modelling.blogspot.in/

2. Wealth Creation Management MacroBusinessValuationQuality Outstanding management Unquestionable Integrity Focused on core business First generation entrepreneur Outstanding management Unquestionable Integrity Focused on core business First generation entrepreneur ROE/ROCE > 20% Growth > 25% ROE/ROCE > 20% Growth > 25% PEG < 1 Payback ratio < 1 PEG < 1 Payback ratio < 1 Favorable Tailwind Huge size of Opportunity Favorable Tailwind Huge size of Opportunity Not in commodity business Non cyclical High entry barrier business Leadership market position (1st or 2nd) Low capital Intensity Not in commodity business Non cyclical High entry barrier business Leadership market position (1st or 2nd) Low capital Intensity

3. DNA of an Wealth Creator - 1 Business o Not in commodity business o Non cyclical o High entry barrier business o Leadership market position (1 st or 2 nd ) o Low capital Intensity Valuation o PEG < 1 o Payback ratio < 2 High ROE/ROCE Sustained earning growth (>25%) Business o Not in commodity business o Non cyclical o High entry barrier business o Leadership market position (1 st or 2 nd ) o Low capital Intensity Valuation o PEG < 1 o Payback ratio < 2 High ROE/ROCE Sustained earning growth (>25%) Management o Outstanding management o Unquestionable Integrity o Focused on core business o First generation entrepreneur Macro o Favorable Tailwind o Huge size of Opportunity Size o Preferably Midcap Management o Outstanding management o Unquestionable Integrity o Focused on core business o First generation entrepreneur Macro o Favorable Tailwind o Huge size of Opportunity Size o Preferably Midcap

4. DNA of an Wealth Destroyer Commodity Business Manufacturing of intermediate products Low ROE

5. DNA of an Wealth Creator - snippets 1999 2000

6. DNA of an Wealth Creator - snippets 2004

7. DNA of an Wealth Creator - snippets 2005 2006

8. DNA of an Wealth Creator - snippets 2007 2008 2009 2010

9. DNA of an Wealth Creator - snippets 2010 2012

10. 5 forces of Wealth Creation 1.High ROE 2.Increasing CE 3.Growth 4.Cost of Capital 5.Margin of Safety

11. 3 Component of Value

12. Valuation and Growth Valuation Consistency of Growth Profitable Growth (FCF gen capability) Sustainability of Growth How much capital needed for Growth Non cyclical Secular Growth Longevity of Earning

13. Deconstructing ROE

14. Great, Good, Gruesome

16. Winning Investment o Winner Category Sector growing 1.5x of GDP o Category Winner Moat + Growth + Management o Reasonable Valuation

17. Uncommon Profit

20. SQGLP Framework

21. Quality of Management

22. Growth vs Quality

24. Phases of Commodity Cycle

25. Commodity Investing