This article presents a practitioner’s definition of Quality. We make the case that both the research that identify quality as a promising factor or find that quality does not result in superior returns are misguided.
Not all brands are created equal. This article lays out a framework for analyzing consumer preference driven moats.
In this article, we discuss an analytical process for evaluating economies of scale cases that lead to sustainable competitive advantages. Through the example of Shoprite Holdings, we present an analytical process for effectively evaluating economies of scale; a process driven by size of the industry in relation to the efficient scale, steepness of cost differentials, ancillary competitive advantages, and market structure.
Lately, quality as an investment factor has received significant attention. In our earlier articles on this topic, we have discussed a key element in the process of identification of quality businesses is the presence of competitive advantages. However, not all competitive advantages are created equal. The strength of the competitive advantage and the risks that the business needs to protect itself against are largely dictated by the type of competitive advantage that the business possesses. This article provides a summary overview of the various types of competitive advantages that we have identified over the years.
Some interesting reads that caught my eye from the week of November 8th, 2015.