晨星_持久的競爭優勢_用經濟專利來改善投資回報(.pptVIP

What’s Not An Economic Moat Size / Dominant Market Share: High market share does not give a firm a moat. (Ask Compaq – or GM.) In fact, market share may be irrelevant – bigger is not necessarily better. Technology: What one smart engineer can invent, another can improve upon. (Exception: Creating a standard that’s widely adopted.) Easily-replicable cost advantages (lean manufacturing, outsourcing.) Hot Products: Krispy Kreme, Tommy Hilfiger, Crocs, Iomega, etc. Can generate high returns on capital for a short period of time, but sustainable returns are what make a moat. Why Moats Matter Moats add intrinsic value! A company that is likely to compound cash flow internally for many years is worth more today than a company which isn’t. Why Moats Matter When comparing two companies with similar growth rates, returns on capital, and reinvestment needs, the company with the moat has a higher intrinsic value. Underestimating a moat results in opportunity cost, while overestimating a moat can cause you to pay for value creation which never materializes. Some fast-growing companies are worth the premium, because the excess returns are more likely to persist. If a firm has a wide moat that will allow it to reinvest cash flow at a high rate of return for many years, what looks expensive may actually be quite a bargain. Why Moats Matter Moats enforce investment discipline. High returns on capital will always be competed away – eventually. For most companies (and their investors), the regression to the mean is fast and painful. But a few generate excess returns for many years, and moats give us an analytical framework for selecting them. Why Moats Matter Companies with moats have greater resilience. If a firm can fall back on a structural competitive advantage, it’s more likely to recover from temporary troubles. This is a great psychological backstop for the investor who’s buying when everyone else is screaming “sell!” If you’re confident in the moat, it’s easier to