Thread by @RamBhupatiraju

Excellent document on "Moats" based on Pat Dorsey's frameworks. An incredibly important concept for investors picking individual stocks.

@dmuthuk @saxena_puru @Gautam__Baid

Thread below with my fav parts summarized.

capitalideasonline.com/wordpress/econ…

Note : Doc is old (2003), some of the examples obviously no longer apply, but the concepts are still very valid.

Always ask Why?

Types of Moats (Network Effects is actually included in #5).

1⃣ Product differentiation through Technology
2⃣ Product differentiation through Brand
3⃣ Cost Advantages
and what to watch out for.

4⃣ Excellent summary of Switching Costs

5⃣ Barriers to Entry/Success and Network Effects

Thinking about Durability of Moats

Excellent Checklist & summary.

Using "Moats" as one of the steps in analyzing individual business to check the presence/emergence, width/depth, sustainability/direction, can be incredibly rewarding down the road, by helping you stay with the best Companies for a long time, thereby reaping the rewards.

/END 👍