daringanitch Deep moat analysis using the Morningstar 5-source framework:
- COST ADVANTAGE — can they produce cheaper than competitors? Sustainable?
- SWITCHING COSTS — what does it cost a customer to leave? Cite evidence (churn rates, contract lengths)
- NETWORK EFFECTS — does the product get better as more people use it? Direct or indirect?
- INTANGIBLE ASSETS — patents, brands, licenses, regulatory approvals
- EFFICIENT SCALE — do they operate in a market where a second competitor can't earn returns?
Then: who is the most credible threat to each source of moat and what's their progress?
Moat rating: Wide / Narrow / None Time horizon of moat: 5yr / 10yr / 20yr+