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Section Summary - One
Course Section 1 - Lesson 6
We've covered a lot of ground in the first section. We've examined what it means to be a business and how businesses create value for their customers and owners. We've talked about how companies come to exist. We've discussed why flashy companies attempting to build revolutionary products don't always end up being the best investments. Finally, we've laid the groundwork for understanding two of the most important concepts we'll encounter once we begin researching stocks: growth and competition. We covered these topics quickly.
A few weeks ago, I fell down an internet rabbit how and I ended up reading an article about efficiency. That article broke down the drawing of a car and showed that once the artist was about 20% of the way through the illustration, the viewer could clearly identify the picture's subject. This drawing demonstrates the Pareto principle in action.
I believe that's what we're working with in this course. You are most certainly not going to be an expert on any of the topics we've discussed so far. But the mere fact that you have been exposed to the ideas will convey a significant portion of their benefits to you.
With each lesson, I have linked to articles, videos, and exercises that will help you cement the ideas in your mind, and I encourage you to read, watch, and complete those.
I devote a lot of energy to telling stories throughout these lessons hoping that these stories will stick in your mind and better illustrate the sometimes boring - albeit important - topics necessary to understand on your path to becoming a competent investor.
While I hope the material is enjoyable to consume, I also hope you will not simply sit back and absorb it passively. Use the course materials I've provided, chew on the ideas in your mind, and actively try to think about examples and counter-examples to the ideas I've put forward.
If you commit to doing that, I am confident that as we continue through the course, the ideas will become engrained in your mind, and you will begin to apply them naturally to your own investment ideas.