How to Separate Good Ideas from Great Investments

It may often be hard to distinguish between companies that have what appear to be strong business ideas or models, and those that are able to successfully execute those ideas and create value for investors over the long term.

Heidi says she focuses on the strength of a company’s management, whether the regulatory environment may hinder a company’s business prospects, and the competitive landscape. An investor has to maintain self-control and objectively back-test assumptions, no matter how enthusiastic she may be about a business concept.

Once all the pieces fall into place and a thorough, objective analysis completed, the most important consideration is price.

For more from Heidi, access her views on finding opportunities in emerging market innovation.

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