Focused Compounding Ep 365. Finding Moats: Market Power, Customer Behavior, Substitution, Distribution, and Margin Protection
28 snips
Jul 14, 2022 AI Snips
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Episode notes
Distribution Advantages
- Distribution advantages are powerful, allowing established products to introduce new products more easily.
- John Wiley's university relationships and big food companies' retail connections exemplify this advantage.
Overlooked Distribution
- Distribution advantages are often overlooked in write-ups, which tend to focus on technological or patent advantages.
- Geoff Gannon prioritizes companies with a superior sales force and established distribution over patent advantages.
Patents and Network Effects
- Patents can allow for building mindshare or network effects, leading to durable advantages after patent expiration.
- Network effects often lead to winner-take-all scenarios, like local bus service monopolies.