Moat
Selected Quotes on Moats & Differentiation
💡 Core Golden Quotes
- “Products without differentiation find it very hard to earn big money over the long term”
- “Pricing power is the moat”
- “The moat should be part of the business model”
- “Monopoly refers to moat, not customs”
- “Things that can raise prices indicate they have a moat”
❓ Selected Q&A
Q: Why does Apple make so much money from phones while other phone companies don’t?
A: Simply put, products without differentiation find it very hard to earn big money over the long term. The reason Apple makes big money is because Apple sells iPhones—the same applies to others. Let me simply explain differentiation: it’s something users need that other competitors can’t satisfy. (2018-11-05)
Q: Why can’t airlines make money while cereal companies can?
A: I think it’s related to the degree of product differentiation. The lower the product differentiation, the harder it is for enterprises in the industry to make money. Airlines are the extreme case precisely because their product differentiation is minimal. Another extreme example right now is many companies making solar silicon wafers—their fate will be even worse than airlines’. (2012-07-11)
Q: What’s the relationship between moat and business model?
A: The moat should be part of the business model. A business model without a moat isn’t a good business model, but a business with a moat doesn’t necessarily have a good business model either. (2012-06-24)
Q: What does monopoly refer to?
A: Monopoly refers to “moat,” not “customs.” (2010-05-28)
Q: What’s the relationship between pricing power and moat?
A: Pricing power is the “moat,” isn’t it? (2010-05-18)
Q: Are pricing ability and moat the same thing?
A: Pricing ability and moat are actually the same thing. Old Buffett says he values pricing ability more than management ability—but actually building strong pricing ability takes extremely long time; it can’t be done without good management ability. So what he says isn’t contradictory. (2011-02-22)
Q: How should we understand that things which can raise prices show they have a moat?
A: Things that can raise prices show they have a “moat”—being able to grasp this shows considerable talent. (2010-05-28)
Q: Which is more important: moat or management team?
A: This is like asking in warfare: what’s more important, an army that can fight or good trenches? Without good protection, even the best army won’t last in battle. But obviously having only trenches isn’t enough either. (2010-04-14)
Q: What constitutes a so-called good business model?
A: A so-called good business model probably means having a very wide moat. (Investment Logic Chapter)
Q: Is customer loyalty part of the moat?
A: So-called customer loyalty is actually customer trust (level of understanding)—this is a very important part of the moat. (2010-05-28)
Q: How should we understand that sustainable differentiation is a moat?
A: Sustainable differentiation is a moat. (“The Essence of Investing”)
Q: What does it mean that iPhone might actually be the cheapest phone?
A: The iPhone might actually be the cheapest phone—you just need to look at all those unused phones in your drawer to understand. People accustomed to using iPhones aren’t likely to switch just because other phones are slightly cheaper. (2012-05-02)
Q: Are online games differentiated products?
A: Online games actually have quite significant differentiation. Though they look similar to non-players, for core players inside the game, differences in community and feel are actually huge—they’re not easy to switch from. Companies that can continuously produce differentiated products that users like often end up with excellent business models. (2012-05-02)
Q: Where’s Coca-Cola’s moat?
A: In Coca-Cola’s moat, being able to buy it anywhere is extremely powerful. (2012-07-13)
🔗 Related Notes
Related Concepts Moat · Differentiation · Business Model · Pursuit Beyond Profit Related Companies Apple · Moutai · Tencent Related People Duan Yongping · Warren Buffett · Charlie Munger Related Topics How to Judge a Good Company · Criteria for Good Companies
护城河与差异化篇精选
💡 核心金句
- “没有差异化的产品是很难长期赚到大钱的”
- “定价权就是护城河”
- “护城河应该是生意模式的一部分”
- “垄断指的是护城河，不是海关”
- “能涨价的东西就表示他有护城河”
❓ 精选问答
问：为什么苹果靠手机赚很多钱，而其他手机公司不行？
答：简单讲，没有差异化的产品是很难长期赚到大钱的。苹果之所以赚到大钱，是因为苹果是卖iphone的，其他同理哈。简单讲一下差异化：就是用户需要但其他竞争对手满足不了的某些东西。（2018-11-05）
问：为什么航空公司赚不到钱，而麦片公司能赚钱？
答：我认为和产品的差异化程度有关。产品差异化程度越低，行业内的企业越难赚到钱。航空公司是极致，就是因为产品差异化小。还有一个极致的例子就是现在很多做太阳能硅片的，下场会比航空公司还惨。（2012-07-11）
问：护城河和生意模式的关系是什么？
答：护城河应该是生意模式的一部分。没有护城河的生意模式不是好的生意模式，但有护城河的生意未必就一定是好的生意模式。（2012-06-24）
问：垄断指的是什么？
答：垄断指的是”护城河”，不是”海关”。（2010-05-28）
问：定价权和护城河的关系是什么？
答：定价权就是”护城河”吧？（2010-05-18）
问：定价能力和护城河是一回事吗？
答：定价能力和护城河其实是一回事。老巴说相对于管理能力他更看重定价能力，其实建立强的定价能力需要的时间非常长，没有好的管理能力根本做不到。所以他说的不矛盾。（2011-02-22）
问：能涨价的东西就表示他有护城河，这句话怎么理解？
答：能涨价的东西就表示他有”护城河”，能体会出这点来还是很有天赋的。（2010-05-28）
问：护城河和管理层哪个更重要？
答：这就像打仗一样，是能打仗的军队重要还是好的战壕重要一样。没有好的防护，再好的军队也不经打。光有战壕显然也是不行的。（2010-04-14）
问：所谓好的生意模式是什么？
答：所谓好的生意模式大概就是有很宽的护城河的意思。（投资逻辑篇）
问：客户忠诚度是护城河的一部分吗？
答：所谓客户忠诚度实际上是客户信任度（了解度），这个是护城河里很重要的一部分。（2010-05-28）
问：能长期维持的差异化是护城河，这句话怎么理解？
问：iPhone有可能会是实际上最便宜的手机，这是什么意思？
答：Iphone有可能会是实际上最便宜的手机，你只要看看你抽屉里那些已经不用了的手机就明白了。习惯用iphone的人是不大可能因为别的手机便宜一点而换的。（2012-05-02）
问：网络游戏是有差异化的产品吗？
答：网络游戏其实也是一个有相当差异化的产品，虽然不玩的人看起来都差不多，但对在游戏里面的中坚玩家而言，社区和感觉的差异实际上是巨大的，不那么容易换。能够持续有用户喜欢的差异化产品的公司往往就有了很好的生意模式。（2012-05-02）
问：可口可乐的护城河在哪里？
答：可口可乐的护城河中在哪里都能买到这点是非常厉害的。（2012-07-13）
🔗 相关笔记
相关概念 护城河 · 差异化 · 生意模式 · 利润之上的追求 相关公司 苹果 · 茅台 · 腾讯 相关人物 段永平 · 巴菲特 · 芒格 相关主题 如何判断一家好公司 · 好公司的标准