What Is The Virtuous Cycle?
The Virtuous Cycle as a way to analyze individual companies. In some of my personal investment selections, you will notice how I describe the virtuous cycle experienced by a company’s stakeholder community. The most basic stakeholders are management, employees, customers, and shareholders. When all stakeholders work together and the benefits derived by one group directly influence the benefits received by the next, a virtuous cycle exists which can be an indicator of exceptional business performance and investment success.
The Virtuous Cycle as an illustration of competitive advantage. The concept of an economic moat, which represents a company’s sustainable competitive advantage, is a critically important one in business. Companies which possess an advantage can use it to shield against competition, enabling them to reinvest earnings in their business, maintain steady revenue streams, and compound their intrinsic value over time.
The Virtuous Cycle as a business. It’s the company I envisioned whose moniker reflects the very means to analyze successful investments, the positive impact of those companies on their stakeholder communities, and the benefit individuals realize from being invested in such enterprises while allowing them to compound their intrinsic value over a long time horizon.
At The Virtuous Cycle, I identify promising companies that possess the characteristics that lead to market outperformance and strong investment returns. And, as the great investor Warren Buffet has often said: “We eat our own cooking.” That is, at The Virtuous Cycle, I’m invested alongside readers to ensure that our economic fortunes are intertwined. So, I invite you to join The Virtuous Cycle as together we exercise the principles and discipline that lead to long-term investing success.
Jason Rowland, Founder
I am forever a student of a business with a passion for investing and a voracious appetite for learning which I satisfy by reading countless books and articles each year. I bring the following with me to the field of investing:
A competitive spirit: In my MBA program, I achieved a tie for the #1 worldwide ranking in the McGraw Hill Business Strategy Game as benchmarked against the performance of nearly 5,000 student teams at 300 colleges on 4 continents.
- A strong understanding of financial statements: A licensed CPA with approximately five years in public and private accounting, I received the top score in my state on the CPA Exam among 32 four-part passers during the same testing window.
- 3 1/2 years management experience at McDonald's (7 total years) through high school and college including oversight of the restaurant's key profitability drivers of food and labor costs.
- Ample leadership experience from past presidency of the accounting honors organization Beta Alpha Psi and various leadership roles held at career stops spanning the past ten years.
- Sound judgment, deep thinking, and careful decision making, as evidenced by 96th-99th percentile scores on multiple nationally-ranked critical thinking skills tests.
The Virtuous Cycle
The Virtuous Cycle is the vehicle through which I explain my investment philosophy, share my analysis, document my decisions, and monitor the results.
I intend to deliver valuable investment analysis to readers and hope that they will engage with their own opinions and analysis in a collaborative and respectful environment where the entire community can learn from one another and gradually improve each month and each year.
My personal portfolios comprise two strategies: (1) The Prime Portfolio and (2) The Action Portfolio.
The inspiration for these portfolio strategies and the overall influences on my investment approach come from Peter Lynch, Warren Buffett, David Gardner, and James O'Shaughnessy, among others. I subscribe to Warren Buffett's adage that, "time is the friend of the wonderful business." As such, The Virtuous Cycle will target long investment holding periods and low portfolio turnover.
The stocks in the portfolios across both strategies comprise all of my personal stock holdings in my self-managed accounts. The Virtuous Cycle exists to track my progress over time and help us all achieve better performance through collaborative discourse.
Follow The Virtuous Cycle and join me on life's financial journey.