Measuring the Moat by Michael Mauboussin

Warren Buffet loves to talk about moats and the terms has become popular, referring more to companies’ profits rather than how to protect an medieval castle. Measuring the Moat - Assessing the Magnitude and Sustainability of Value Creation by Michael J. Mauboussin goes through, what I believe is the best way to do an industry analysis and how to measure an economic moat and maintain sustainable value creation. The paper cites many other academic works, a specific one by Anita M. McGahan and Michael E. Porter called The emergence and sustainability of abnormal profits, argues that the most important factor for consistent profits is the industry closely followed by company specifics. The company specific analysis goes through - 03:39: General industry overview - 03:50 Competitiveness and industry structure - 06:31 Disruption and Innovation - 08:58 The Company specific analysis looks at - 10:30: The value Chain - 11:26 Sources of added value - 12:00 Management and Luck - 13:16 Investors invest in companies where they believe there is a discrepancy in what is priced in a company – this summary might help you to achieve that as well. Thank you. Please find the download for the document here: https://research-doc.credit-suisse.co... Chapters: 00:00 Introduction 03:39 Industry Analysis 10:30 Firm Specific Analysis 14:12 Conclusion