In this Investor Bootcamp episode on The Australian Investors Podcast, Owen Rask dives deep into finding, identifying and researching a company’s competitive advantage, otherwise known as a “moat”.
Download Owen’s Investor Bootcamp training manual: https://bit.ly/rask-analyst
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Video version available now on Rask’s YouTube channel
Topics covered include:
- What is a moat?
- Morningstar’s 5 moat ratings:
- Network effects
- Efficient scale
- Intangible assets
- Cost advantage
- Switching costs
- Where wide, narrow and no moat companies are found
- How moats are measured (ROIC – WACC)
- Why the airline industry sucks… capital away from investors
- How dominant wide-moat companies like Microsoft or Xero can grow more powerful as they grow
Some of the companies mentioned include:
- Xero Limited (ASX: XRO)
- Microsoft Corp (NASDAQ: MSFT)
- Qantas Airways (ASX: QAN)
- Virgin Airways
- Flight Centre Travel Group Ltd (ASX: FLT)
- Woolworths Ltd (ASX: WOW)
- Coles Group (ASX: COL)
- APA Group (ASX: APA)
Resources:
- Please see the Investor Bootcamp for images & graphics
- Book: Gorilla Game: Investing in High Technology
- Books from Porter: Competitive Strategy (1980), Competitive Advantage (1985) and Harvard Business Review’s 10 Must Reads – On Strategy
- David Gardner Snap Test
- Owen’s Value Investor Program
Which tools are your favourite? Let us know:
Owen’s Twitter: https://twitter.com/owenrask
Owen’s Twitter: https://twitter.com/owenrask
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