Things I’ve Learned from Charlie Munger about Moats (2015)
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Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#2It’s great seeing any post by Tren Griffin.
This is another great post by him:
https://25iq.com/2019/06/08/secrets-of-sand-hill-road-ventur...
Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#3TL;DR courtesy GPT4 API (yes I paid for it - you’re welcome)
Charlie Munger on Moats
1. Importance of moats: Durable competitive advantage, or moats, are crucial for long-term investing success. Moats are created by factors such as supply-side economies of scale, demand-side economies of scale, brand, regulation, and patents/intellectual property.
2. Buying moats at a fair price: Moats are important, but overpaying for them can hinder success. Value investing focuses on buying assets at a significant discount to their value.
3. Building moats is difficult: Identifying and creating moats is challenging, with no specific formula. Venture capital focuses on building moats, while value investing focuses on buying existing moats at discounted prices.
4. Widening the moat: Managers must focus on widening the moat and maintaining barriers to entry for competitors. Moats can be widened through acquisitions or innovation.
5. Competing against fanatics: Building and continuously widening a moat is essential to compete against devoted business owners and entrepreneurs.
6. Inversion approach: Moats may weaken over time, so it's important to consider what could cause their decline.
7. Moats can shrink: Increased buying power of companies like Walmart and Costco can impact moats, causing them to shrink.
8. Technological change: Disruptive technology can weaken moats or even cause businesses to disappear entirely.
9. Moats can be destroyed: The internet has weakened or destroyed moats of some businesses, such as newspapers.
10. Strong moats can lead to success: Some moats are so strong that even weak management teams can lead to business success.
11. Monopolies and moats: Owning monopolistic businesses with unregulated prices can be profitable, but true monopolies are rare. Moats vary in strength and size, and are constantly in flux.
12. Lollapalooza effect: Great moats tend to have more value than the sum of their parts, creating a "lollapalooza" effect.
Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#4TL;DR courtesy GPT4 API (yes I paid for it - you’re welcome) Charlie Munger on Moats 1. Importance of moats: Durable competitive advantage, or moats, are crucial for long-term investing success. Moats are created by factors such as supply-side economies of scale, demand-side economies of scale, brand, regulation, and patents/intellectual property. 2. Buying moats at a fair price: Moats are important, but overpaying f…
How did you phrase your request? e.g., summarize all numbered points in article into single sentences.
Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#5There are a lot of good points contained in this post, if a bit basic. The Munger quotes are mostly fun and reasonably illustrative.
But the poor organization and the repetition were very frustrating. The lede is buried in about half of the numbered points, obscured by increasingly repetitive connective tissue.
It started out as an interesting read and ended up quite annoying.
Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#6[deleted]
Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#7TL;DR courtesy GPT4 API (yes I paid for it - you’re welcome) Charlie Munger on Moats 1. Importance of moats: Durable competitive advantage, or moats, are crucial for long-term investing success. Moats are created by factors such as supply-side economies of scale, demand-side economies of scale, brand, regulation, and patents/intellectual property. 2. Buying moats at a fair price: Moats are important, but overpaying f…
At no point is a "moat" defined! Perhaps I am in the minority but I thought this was going to be about medieval castle defences.
Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#8TL;DR courtesy GPT4 API (yes I paid for it - you’re welcome) Charlie Munger on Moats 1. Importance of moats: Durable competitive advantage, or moats, are crucial for long-term investing success. Moats are created by factors such as supply-side economies of scale, demand-side economies of scale, brand, regulation, and patents/intellectual property. 2. Buying moats at a fair price: Moats are important, but overpaying f…
At no point is a "moat" defined! Perhaps I am in the minority but I thought this was going to be about medieval castle defences.
The first three sentences:
> 1. “We have to have a business with some inherent characteristics that give it a durable competitive advantage.” Professor Michael Porter calls barriers to market entry that a business may have a “sustainable competitive advantage.” Warren Buffett and Charlie Munger call them a “moat.”
Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#9TL;DR courtesy GPT4 API (yes I paid for it - you’re welcome) Charlie Munger on Moats 1. Importance of moats: Durable competitive advantage, or moats, are crucial for long-term investing success. Moats are created by factors such as supply-side economies of scale, demand-side economies of scale, brand, regulation, and patents/intellectual property. 2. Buying moats at a fair price: Moats are important, but overpaying f…
At no point is a "moat" defined! Perhaps I am in the minority but I thought this was going to be about medieval castle defences.
It's in the first point: "durable competitive advantage, or moats"
Re: Things I’ve Learned from Charlie Munger about Moats (2015)
#10Indeed it does have alot of good points, and i think its important to understand who Charlie Munger was, like his beliefs etc. First of all he is a total critic of Bitcoin calling it "rat poison squared" and "turds". And the guy is totally minimalist, very frugal in his lifestyle. He lives in the same house in California that he owned for over 50 years, and he vocally expresses disdain for luxury cars and other ways of displaying wealth. I'm not sure if thats due to his deep confucianism and taoism appreciation, though.