My observations are nowhere as scientific as the Grants’ or Kurtén’s. However, I know that the daily, weekly, monthly, and quarterly rate of change in exceptional businesses appears much greater than the rate of change measured over years and decades. This realization has helped me formulate an investing principle that I call the Grant–Kurtén principle of investing (GKPI). It goes as follows: When we find high-quality businesses that do not fundamentally alter their character over the long term, we should exploit the inevitable short-term fluctuations in their businesses for buying and not
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