Summary of Quantifying Competitive Advantages
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Summary of Quantifying Competitive Advantages
Figuring out whether or not a company has an economic moat remains largely a qualitative exercise, but the numbers should confirm your observations. Companies with wide economic moats should have strong free cash flow and handsome returns on invested capital.
What you have learned
- Free Cash Flow, Profit Margins, and Turnover
- Return on Equity and Assets, and the DuPont Equation
- Return on Invested Capital