The Dutch Investors #56 | New rules of competitive advantages and competition | Moats & Marathons w/ Jeffrey Towson
Sep 18, 2025
Jeffrey Towson, consultant and author known for Moats & Marathons and One Hour China, brings on-the-ground experience in Chinese tech. He discusses why Chinese firms move fast and how moats are dynamic. He explains when remote research works, why consumer tech can enter EVs, and what practical AI adoption looks like in logistics and manufacturing.
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Go On The Ground For Complex Sectors
- You can study many Chinese consumer businesses remotely, but deeply technical or state-influenced industries require on-the-ground research.
- If your sector faces Chinese competitors, study them even if you avoid investing in China.
Xiaomi Built A Car Factory In 18 Months
- Towson visited Xiaomi's EV factory and learned they decided EVs around 2020 and built a huge factory in 18 months.
- He credits China's fast manufacturing ecosystem and Xiaomi's experienced A-team for the rapid success.
Top Down Moat, Bottom Up Innovation
- Moat strategy must be top-down while day-to-day innovation remains bottom-up.
- Design the moat and marathon centrally, then let agile teams execute features and adaptations.
