The year 2020 is another story of fail, bleakness, and uncertainty for General Electric. Yet, our task as an investor is to seek the opportunity offered by a mismatch between consensus and reality – between expectation and fact. To exploit that, we think we need to know the competitive advantage of GE Aviation – the largest segment owned by the conglomerates.Continue reading “Competitive Advantage of GE Aviation”
How it’s feel hit by something not real or intangible? Ask Samsung. In August 2012, The Jury decide that The Korean Giant has to pay more than $1 billion due to Apple’s patent violation. The jury declared that slide and bounce touch is part of Apple’s innovation property – thus, a company has to pay Apple when using it in their product. This content will discuss intangible as a lasting competitive advantage: including patent, right, and brands.Continue reading “Intangible as a Lasting Competitive Advantage”
With aging Americans with their unhealthy and sedentary lifestyle, investors see the pharmaceutical company like Amgen has a great trend ahead. Moreover, things like recession, Inflation, high unemployment, can’t prevent people to buy medicine. Seems perfect combination. We try to analyze the competitive advantage of Amgen in the midst of that promising opportunity offered.Continue reading “Competitive Advantage of Amgen: Expiring Moat”
This isn’t Minecraft. We can’t build or improve our home online, no undo, copy-paste, or redo. The home improvement business is one of the most insulated industries from the online threat. Is this the only competitive advantage of HD (Home Depot)? We don’t think so.Continue reading “Competitive Advantage of HD: Inside The Box”
To give you a perspective about the competitive advantage of IBM, try to imagine that every time people or businesses use Visa or Mastercard, it is IBM Mainframe that handles that transaction.Continue reading “Competitive Advantage of IBM. The Big Blue Ship”
Is Aero Industry Business Advantage exist? Seven years ago, at the Berkshire Hathaway annual meeting, Warren Buffett said, “the airline industry is a death trap for investors”.Continue reading “Aero Industry Competitive Advantage: Moat In The Sky”
Daimler needs 3 years to introduce their employee to a new product lifecycle platform. Switching Cost as Business Advantage can’t be overlooked.Continue reading “Switching Cost as Business Advantage. Microsoft”
Value investing evangelist, Warren Buffett ever revealed his investing secret: “The most important thing [is] trying to find a business with a wide and long-lasting moat around it. Protecting a terrific economic castle with an honest lord in charge of the castle.”
What is economic moat? Could Qualcomm wireless patent classified as economic moat? Disney raise its Disneyland ticket every year and Apple sell iPhone more and more expensive, do they show us economic moat?Continue reading “Value Investing 101: Economic Moat, Buffett No. 1 Criterion”
Charlie Munger has one single – simple, financial ratio for stock market analysis “It’s obvious that if a company generates high returns on capital (ROIC) and reinvests at high returns, it will do well. But this wouldn’t sell books..”. In this article we will discuss:
- How ROIC is equal with ROA (Return On Asset)
- Why not use ROE (Return on Equity) instead?
- In what case ROIC failed?