Links for Moat Hunters
Happy Fourth of July!
Here are some links for the long holiday weekend:
First, are some Michael Burry resources provided by John Chew at the excellent CS Investing Blog. Michael Burry is a huge inspiration to me. If you are not familiar with him, I strongly urge you to read The Big Short by Michael Lewis. Burry is more a of classic value investor and is not particularly interested in moats. He will buy any asset class as long as it is cheap. Nevertheless, I find his story and approach to investing very informative.
Second, here is a site on moats put together by two adjunct professors at Columbia Business School to support their course. They refine the concept of moat by referring to “competitive advantage period” or CAP. This distinction is helpful because it reminds us of the temporal nature of moats. There are very few Cokes out there which can fend off competition for decades. The website is old-fashioned and not particularly well organized, but there are some gems there.
Lastly, here is an open letter to Buffett written by one of the professors referred to above, Michael Maubossin. This letter figures prominently in my thinking.