Thread by @RamBhupatiraju

This was a great episode with many interesting topics. 👏 @investing_city and @IntrinsicInv

Some of my favorite takeaways, mixed with my own understanding/thoughts.

Thread.👇

1/8

https://twitter.com/investing_city/status/1161340390609489920

When analyzing a Company that has a current moat or high ROIC, ask questions that will help you better answer how this Company is going to maintain or increase it's competitive advantages and preserve/grow Cash flows.

2/8

A Legacy moat isn't worth much if their products/services aren't going to be as relevant in the future.

3/8

Pricing power of a manufacturer (based on a legacy brand or other) could turn into pricing pressure from the Retailer/distributor (when facing their own competition in serving their end Customers). 

4/8

If you are very far in the value chain from the end Customer, and you don't have a critical product/service the entire value chain depends on, and you can't innovate, the future is guaranteed to be bleaker than the past.

5/8

Relation between Velocity of new ideas, low turnover (if your goal is to pick good Co's for the long term) and Portfolio activity (taking actions based on opportunities Market provides to buy/sell).

6/8

Relation between amount of information consumed during research, arc of confidence (in ur analysis) vs accuracy (needed to make a good decision). To identify ur own point of diminishing returns during this stage.

7/8

I loved this idea so much that I made the below illustration. 😃

@investing_city @IntrinsicInv
@ToddWenning

8/8.