The Pursuit of Compounding (@thepursuitofcompounding): "A brand alone is not a moat, if the brand can be substituted (Nike, lululemon). Intellectual property alone alone is not a moat, if the IP is inferior to other IP (Kodak). A moat is the structural reasons the customers don't, or can't, leave (VMS Software). A moat is somethin…"

A brand alone is not a moat, if the brand can be substituted (Nike, lululemon).

Intellectual property alone alone is not a moat, if the IP is inferior to other IP (Kodak).

A moat is the structural reasons the customers don't, or can't, leave (VMS Software).

A moat is something that competition can't replicate, no matter how hard they try (FICO Score vs VantageScore).

It shows up in the financials as ROIC that sustainably exceeds the cost of capital on an ongoing basis.

If a rival wouldn't concede the moat, then there probably isn't one.

Apr 12

1:58 PM