Ideas for simple business to begin a circle of competence?

[goponcho]

Hi,

Been reading a tonne of books on value investing.
Am at the point of trying to figure out how some businesses work and breaking down the annual reports.

Any ideas of some simple, easier to understand businesses or industries which have good businesses?
Perhaps it may be better to start with some smaller cap businesses which may be more simple?

Have no business experience, but am in the medical field, but the medical research businesses doesnt seem simple or stable generally. Maybe something related?

Thanks

 

[Value Collector]

Hi,

Been reading a tonne of books on value investing.
Am at the point of trying to figure out how some businesses work and breaking down the annual reports.

Any ideas of some simple, easier to understand businesses or industries which have good businesses?
Perhaps it may be better to start with some smaller cap businesses which may be more simple?

Have no business experience, but am in the medical field, but the medical research businesses doesnt seem simple or stable generally. Maybe something related?

Thanks

Capilano honey (Czz) has a very simple business model, basically it buys honey in barrels from bee keepers and packs it into branded handy packs to sell to consumers, take a look at the last few years of their annual reports, and watch their balance sheets etc change over the years,

 

[tech/a]

Capilano honey (Czz) has a very simple business model, basically it buys honey in barrels from bee keepers and packs it into branded handy packs to sell to consumers, take a look at the last few years of their annual reports, and watch their balance sheets etc change over the years,

Yeh great now----but how can you anticipate such an excellent result from Year 1 balance sheet?
This that's what the OP wants to know--me too!

 

[skc]

Hi,

Been reading a tonne of books on value investing.
Am at the point of trying to figure out how some businesses work and breaking down the annual reports.

Any ideas of some simple, easier to understand businesses or industries which have good businesses?
Perhaps it may be better to start with some smaller cap businesses which may be more simple?

Have no business experience, but am in the medical field, but the medical research businesses doesnt seem simple or stable generally. Maybe something related?

Thanks

Simple business...

Retailers... especially simple one trick domestic retailers. E.g. NCK (Nick Scali), JBH (JB Hi-Fi), TRS (The Reject Shop), ORL (Oroton) etc.

Medical field... smaller outfits might be simpler. E.g. VRL/MVF (IVF providers), CAJ (diag. imaging), PHG (small specialist hospital) etc.

Simple single commodity producer. E.g. WSA, NST, ILU etc.

IT service providers. E.g. DWS, DTL, TNE.

 

[goponcho]

Thanks for the array of ideas!!

Will have a look at some over the next while