A Wide Moat Is A Must.
A truly great business must have an enduring moat’ that protects market share and excellent returns on invested capital.
The most important thing is trying to find a business with a wide and long-lasting moat around it.
By looking for the companies that have a clear competitive advantage which cannot be easily replaced, chances are fairly low for the company to experience pressure on its market share or margins.
Secanta is trying to figure out what is keeping a company standing or cause it not to be standing five, 10, 20 years from now. What are the key factors? And how permanent are they? How much do they depend on the people running the business?
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Strong market leadership translates directly to a more powerful economic model:
01
Higher Revenue,
Higher Profitability
02
Greater Capital Velocity, And Correspondingly Stronger Returns On Invested Capital (ROIC)
03
A first-mover advantage to set price trends and retain pricing power