NaviMap and Financial Statements

My thoughts stray often to the earthquake off Japan and the tsunamis that is battling the mainland especially Sendai. I didn't want to blog about it because it is all over the media space. At the same time I want to anchor this day that a tragedy like this had happened. I digress. This entry is about NaviMap.

I am almost finished with this book by Mary Buffett and David Clark.

Amazon.com: Warren Buffett and the Interpretation of Financial Statements: The Search for the Compan...

http://www.amazon.com/dp/1416573186/ref=...

Amazon.com: Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage (9781416573180): Mary Buffett, David Clark: Books

I imagine I could mirror a business financial statements with NaviMaps. Those with a enduring advantage will naturally have virtuous cycles. I imagine what it would be like to map those without and discover how reinforcing loops might be nurtured turning them into desirable investors' companies. Also those firms that may be having it good right now, perhaps the virtuous cycles they own do not last. All positive reinforcing loops eventually hit limits of growth. Perhaps the Buffett's type businesses are special? Let's find out how so. What about firms with accelerating loops. Typically they will throw off cash in a hurry but also bump into limits of growth much more quickly. I imagine these are mostly the tech firms. At some point they fade or flame out if they were caught in an inflating asset bubble.

And kind I map all these along a SWOT framework. It is getting interesting and practical isn't it?