Investing in Companies and Sectors With Strong Competitive Advantage
DifferentBusiness Models is different from other investment books because it breaks new ground. It deploys 129 business models to empower an outside investor to analyse the internal competitive advantage of companies and sectors.Competitive advantageStrong competitive advantage is only achieved by having low costs and/or doing something different from the competition. This must add value to the customer, who then pays a premium price. He is glued to the company, which will earn dependable revenue streams and be in the profit zone.Key features- 64 company business models are scored for competitive advantage. They include moats, recurring revenues, product differentiation, bolt-on acquisitions and bargaining power.- 65 sector business models are scored for competitive advantage. They include recession resistance, must-have products, sticky customers, toll bridges and megatrends.- The economic cycle is the ultimate arbiter of investment success or failure.- Other important tools are growth at a reasonable price, technical analysis, scuttlebutting, accounting for growth and investment axioms.ConclusionBusiness Models unearths the best companies to outperform in a bull or bear market, giving investors a real advantage. They can correctly evaluate a company or sector in 15 minutes and emulate Warren Buffett, who uses business models to invest in companies with strong competitive advantage.
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