Quick share today: With the recent passing of Charlie Munger (RIP) I was again reminded of a Buffet/Mungerism of how important it is to invest in (or build) companies with gnarly, crazy, seemingly un-crossable moats.
Perhaps nobody defined and measured the idea of a moat better than Michael Mauboussin in his masterpiece Measuring the Moat. The big takeaway is most business opportunities get competed away toward the underlying cost of capital (plus the absolute minimum margin) absent one of these dragon infested moats. If you have an hour or three to spend studying one thing from this blog, let this be it Check it out (in full) here.
