When we boil down value investing to the absolute basics, the goal is to pick great companies that will maintain a high level of profitability over the long term—couldn’t be simpler, right?

In reality, there are an enormous number of factors that can affect whether or not a company is successful, especially in a capitalist system where they have a high degree of freedom to operate without being hamstrung by regulations.

While competition is an important feature in capitalism, it can also sap profitability from businesses when too much of their output is focused on separating themselves from their rivals. The key is finding businesses that have unique qualities that allow them to rise above the competition and carve out their own niche within their industry.

Join Phil and Danielle as they discuss the various ways companies find an edge in the cutthroat world of international big business, and how investors can use the data and tools available to discern who might come out on top.

If your investment research could benefit from tools that can help to simplify and streamline the process, click here for our free Rule #1 Investing Calculators: https://bit.ly/42dBHSn

Topics Discussed:

Conditions under which companies can succeed
Imperfect competition
Swiss house cleaning customs
Moat vs competitive advantage
Calculating return on capital
Tangible vs intangible assets

Resources Discussed:

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432- Perfect Competition 33:36 Share

InvestED: The Rule #1 Investing Podcast

Shownotes Transcript

432- Perfect Competition