3 ms·
A moat is overrated. What kind of moat did SVB have that got it into the S&P500? How many of the companies in that really have a moat?
by lazyasciiart 4y ago
A moat is overrated. What kind of moat did SVB have that got it into the S&P500? How many of the companies in that really have a moat?
- lambic2 4y agoThe fact that SVB just went under disproved your point. Without a moat a company is relegated to ways of making money that at some point in time become unsustainable (i.e. when interest rates change) and then go under. As opposed to companies with strong moats that defend their free cash flow (i.e. Apple).
- lazyasciiart 4y agoIt doesn't disprove it at all, because I'm certainly not arguing that not having a moat is a strength. It almost sounds like you are arguing that having a moat makes a company indestructible.
- aarreedd 4y agoIt is a lot easier to start a subscription box company than a bank. That's a moat.