Scale-Economics-Shared Model

How Companies Like Costco, Walmart, Wise or Charles Schwab Outperform Giving Back To Customers

I don’t generally use screeners in my research process, although I do understand the attractiveness of rapidly filtering among thousands of companies in order to get an investment idea (that otherwise will require a lot of time and effort). The problem with this kind of tools is that frequently quantitative metrics, taken in isolation or without specific context, may not reflect the company’s overall potential. But what does this have to do with the title of this article? Don't give up. You'll find out soon.

Does make any sense to (blindly) use tools that could have made you miss amazing investment opportunities like Costco, Walmart or Amazon? All those are low-margin businesses and would probably be ruled out if we used a screening tool (at least for sure in the early stages of these businesses).

Don’t get me wrong. There are several negative reasons that m…