Glossary/The 10-Year Test
Search analyses, concepts, filings…⌘K
New analysis

The 10-Year Test

noun · the Munger filter for whether a business is investable
Definition

In 10 years, will this business be clearly bigger, more profitable, with a wider moat? You must answer with HIGH CONFIDENCE, or it routes to TOO HARD.

Why it matters

Forces you to admit when you cannot underwrite a long-horizon thesis.

¬ Munger, Daily Journal AGMs

Tagged analyses

depth score: 0

No analyses tagged with this concept yet.

← All concepts