Measuring How Long Competitive Advantages Last
We have a new report out today on the concept of "competitive advantage period." A company’s anticipated value creation is measured by how much its return on invested capital (ROIC) exceeds its cost of capital as well as how long it can maintain a positive spread, a reflection of its sustainable competitive advantage. The report is about the “how long” part.
Most Stocks Lose Money, Yet Market Adds $91T
Self Recommending: "One Hundred Years in the U.S. Stock Markets" by Hendrik Bessembinder. A century of data for nearly 30,000 U.S. public companies. Fun fact: "Shareholders' wealth was enhanced by $91 trillion over the century, but long-term investors in nearly...
Historical Base Rates Reveal AI Growth Realities
We have a new report out today, "Bayes and Base Rates: How History Can Guide Our Assessment of the Future." -We place projected sales growth rates of some artificial intelligence (AI) businesses in the context of history. - We review...
