Business Quality & Moats
Brand as a Moat: When It Works
A brand is a moat only when it creates pricing power. Learn the test that separates a true brand moat from a well-known name, with examples and numbers.
Read guide → Business Quality & MoatsCost Advantages as a Moat
A cost advantage lets a company produce more cheaply than rivals and still earn good returns. Learn the four sources, how to test them, and when they last.
Read guide → Business Quality & MoatsEconomies of Scale as a Competitive Advantage
Economies of scale let a bigger company produce at a lower cost per unit. Learn when scale is a real moat, when it is not, and how to test it in the numbers.
Read guide → Business Quality & MoatsGross Margin vs Operating Margin vs Net Margin
Profit margins explained: how gross, operating and net margin differ, what each reveals about a business, and how to read all three together.
Read guide → Business Quality & MoatsHow to Spot a Widening Moat
A widening moat is a competitive advantage that grows stronger over time. Learn the signs that a moat is deepening, why it matters most, and how to test it.
Read guide → Business Quality & MoatsIntangible Assets as a Moat (Patents and Licences)
Patents, regulatory licences and brands can all be moats. Learn how these intangible assets protect returns, which last longest, and how to test them.
Read guide → Business Quality & MoatsPricing Power: The Sign of a Great Business
Pricing power is the ability to raise prices without losing customers. Learn why Buffett calls it the most important test of a business and how to spot it.
Read guide → Business Quality & MoatsROE vs ROIC: Which Matters More?
ROE vs ROIC compared: why return on invested capital is the cleaner measure of business quality, when return on equity misleads, and how to use both together.
Read guide → Business Quality & MoatsSwitching Costs as a Moat
Switching costs are the money, time and risk a customer faces to change supplier. Learn how this quiet moat protects pricing power and how to spot it.
Read guide → Business Quality & MoatsUnit Economics Explained
Unit economics strips a business to the profit of a single customer or sale. Learn to read CAC, lifetime value and contribution margin to judge a model.
Read guide → Business Quality & MoatsNetwork Effects: The Most Powerful Moat Explained
A network effect exists when every new user makes a product more valuable to every existing user.
Read guide → Business Quality & MoatsGross Margin Explained: The Pricing Power Test for Investors
Gross margin is the share of each sales dollar a company keeps after paying the direct cost of making or buying what it sells: gross margin = (revenue − cost…
Read guide → Business Quality & MoatsRed Flags in Stocks: Warning Signs Organised by the Five Criteria
Eight critical red flags: declining ROIC, insider selling, accounting complexity, customer concentration, FCF divergence, margin erosion, leverage,…
Read guide → Business Quality & MoatsIndustry Analysis for Investors: Porter's Five Forces and Strategy
A great business in a terrible industry often underperforms a mediocre business in an excellent industry. Learn Porter's Five Forces for industry analysis.
Read guide → Business Quality & MoatsBoring Stocks: Why Dull Businesses Often Make the Best Investments
Unsexy, predictable businesses with stable cash flows often outperform glamorous growth stories. Why predictability matters more than excitement.
Read guide → Business Quality & MoatsBusiness Models Explained: 7 Types Every Investor Should Know
Six fundamental business models: SaaS, marketplace, franchise, direct-to-consumer, capital-intensive, and consumer brand.
Read guide → Business Quality & MoatsReturn on Invested Capital (ROIC): How to Spot a Great Business
Return on invested capital (ROIC) is the best single measure of business quality.
Read guide → Business Quality & MoatsEconomic Moat: How to Spot a Competitive Advantage in Any Business
Learn how to identify durable competitive advantages (moats) in any business — the four types that matter, plus specific questions to ask.
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