18 Comments
Nov 22, 2023Liked by Conor Mac

Cool article. I do software and moats are super hard. I’d be interested to chat on how you’re trying to niche in against the terminal.

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Great article. One of the under-appreciated aspects of moats that I’ve found is that the herd spots them quickly and will rapidly deplete the attractiveness of the investment through premium valuations. I’ve been thinking recently about ways to identify moats before the wider investing public catches on. Curious if you have any thoughts there?

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There are 2 articles by mauboussin on moats and capital allocation that can provide further reading. Just go to mauboussin's website. Thanks for the article!

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Great article! I couldn't help but notice how Evolution Gaming serves as a textbook example of moat stacking, demonstrating all of the key characteristics referenced in the article:

Intangible assets from intellectual property

Switching costs from dedicated table setup fees

Network effects from the number of users

Cost advantages through scale.

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Thoughtful article, Conor. We look at the world from an accounting standpoint. Current GAAP does not call for the amortization of goodwill which is an attempt to value such factors as those you discuss. It gives all companies the benefit of the doubt that they have created something with an infinite life span. However, we have seen a lot more Lotus spreadsheets than we have Coca-Colas.

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