Which company are you going to choose to invest?
I believe a moat, however wide it may be is going to get breached at a point in the future. OTOH, a hard working management will constantly indulge into R&D and keep generating new moats when the older ones deteriorate.
So I will go with a hard working management. Whats your take?
Good moat + with great management is what is desirable. But between the two, I’d be inclined towards an ethical and smart management.
see, i would like to share some light on this topic.
according to me, the moat is a good thing and it can be breached at any point of time. example , apple company has good moat.
the moat should be such that the competition should find it hard to break and entry in the business with such moat should be very difficult and further the moat should be consistently updating and needs to be protected from any type of obstacles against it.
and on the other hand, the hard working management is good but i would like to see that what the management hides from the share investors and when they declare the company target for the future and i would like to see that whether that target has been meet or not. the company and the management should be clear on its objective and should be doing business in the most ethical way. the footnotes of the company annual report sheds some light on the working of the company, i mean if the company doesnt want the investor to know a certain thing, it writes it down in the form of footnotes.
the management should be earning good returns for the investors and the earnings should be distributed in the form of dividends and if not then the company should put that money to some good use for the company, according to warren buffett, the company should generate the per share earnings for one dollar should be equivalent to the per share per dollar increase on the share investors money.
warren buffett looks for moat but he also sees that is the management candid and rationale with the share holders?
how is the company management spending the money, means whether that the company is spending more on research and development which is unnecessary rather than spending on company expansion and share investors interests.