In this Investor Bootcamp episode on The Australian Investors Podcast, Owen Rask dives deep into competitive advantages, otherwise known as "moats".
Topics covered include:
What is a moat?
Morningstar's 5 moat ratings:
Network effects
Efficient scale
Intangible assets
Cost advantage
Switching costs
Where wide, narrow and no moat companies are found
How moats are measured (ROIC - WACC)
Why the airline industry sucks... capital away from investors
How dominant wide-moat companies like Microsoft or Xero can grow more powerful as they grow
Some of companies mentioned include:
Xero Limited (ASX: XRO)
Microsoft Corp (NASDAQ: MSFT)
Qantas Airways (ASX: QAN)
Virgin Airways
Flight Centre Travel Management Ltd (ASX: FLT)
Woolworths Ltd (ASX: WOW)
Coles Group (ASX: COL)
APA Group (pipeline operator)
Download Owen's Investor Bootcamp training manual: https://bit.ly/rask-analyst
Resources:
Please see the investor bootcamp for images & graphics
Book: Gorilla Game: Investing in High Techonology
Books from Porter: Competitive Strategy (1980), Competitive Advantage (1985) and Harvard Business Review’s 10 Must Reads – On Strategy
David Gardner Snap Test
Owen's Value Investor Program
Which tools are your favourite? Let us know:
Owen’s Twitter: https://twitter.com/owenrask
Watch the video version on the Rask Australia YouTube page.
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DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser.
Full individual disclosures for each guest are available via the show notes page. Owen and The Rask Group Pty Ltd do NOT receive anything for mentioning Super funds, products, shares, bank accounts, etc.
Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg
Date recorded: 13th of May 2022
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