Buffett moats and the secret sauce of pricing power
Some companies are in the seemingly fortunate position that they can maintain profit margins simply by raising prices
business franchise
The awkward link between Buffett’s moats and ROIC – Part l
Growth benefits investors only when the business in point can invest at incremental returns that are enticing
Looking behind Buffett’s moats at the forces that shape them
Asking ourselves questions in a simple framework based on Michael Porter’s five competitive forces allows us to understand what makes Warren Buffett’s moats work and where they are likely to break down.
Whether management loves money or loves the business
Management that unfailingly thinks and behaves like an owner of the business and has the courage and candor to discuss failures openly in reports to shareholders.
Investing in businesses vs investing in stocks
When investing, we view ourselves as business analysts – not as market analysts, not as macroeconomic analysts, and not even as security analysts
Stocks – avoid stepping in the bad stuff
Unless management holds the major part of their family net worth in shares of the company there is a serious potential agency problem
The tenets of companies Buffett invests in
There won’t be many seven footers out there. The vast majority of stocks don’t measure up and can be ignored.
How to distinguish a superb value creator from an also ran
The best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return
How to identify great companies to invest in – Part ll
Some companies are in the seemingly fortunate position that they can maintain profit margins simply by raising prices.
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