No. of Recommendations: 5
Measuring the Moat - Michael J. Mauboussin
Assessing the Magnitude and Sustainability of Value Creation
"Sustainable value creation is distinct from sustainable competitive
advantage, which describes a case when a company generates
an ROIC above WACC that is also higher than that of its
competitors.3 Multiple companies in the same industry can
achieve sustainable value creation. For example, rivals Coca-
Cola and PepsiCo are both among the top dozen stocks with the
highest long-term returns in the U.S. stock market from 1926
through 2023. Still, sustainable value creation requires that a
company establish a difference that it can maintain."morganstanley.com - Article measuringthemoat"The key to investing is not assessing how much an industry is going to affect society, or how much it will grow,
but rather determining the competitive advantage of any given company and, above all, the durability of that
advantage. The products or services that have wide, sustainable moats around them are the ones that deliver
rewards to investors."“Mr. Buffett on the Stock Market,” Fortune, November 22, 1999
Are there companies with moats today? Who are they?
Does Berkshire have a moat? Is it gone without Warren and Charlie?
