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Show Notes

[00:02:23] – Transition from the sell-side to the buy-side and the biggest surprise

[00:03:40] – What is a moat?

[00:05:16] – What part of the stock market universe has a moat

[00:06:57] – Pat’s framework for identifying a moat, starting with intangibles

[00:08:32] – The power of brands

[00:09:44] – What chance does an upstart have to come in and usurp a well-established brand

[00:12:24] – Switching costs as part of the framework for identifying a moat

[00:14:55] – The third component of identifying a moat, network effects, and what businesses should do to effectively build one

[00:17:29] – Last component, cost advantages/economies of scale

[00:19:29] – How do you analyze these four components in an investing framework that can be built into an actual strategy

[00:21:13] – How does Pat think about this from a mispricing standpoint

[00:23:37] – How does Pat incorporate the current price of a company in consideration for future returns when pricing a moat

[00:25:39] – How should a company with a moat operate to protect that characteristic, especially when it comes to their capital allocation

[00:26:51] – Which characteristic of a moat does Pat find most intriguing

[00:30:35] – What makes for good and smart capital allocation

[00:35:58] – What is Pat’s process for identifying the best investment opportunities

[00:38:38] – What are good economics when looking at a company

[00:41:03] – If Pat could take any business, but have to swap leadership, what would he choose

[00:44:13] – Back to his process of finding investment opportunities

[00:46:05] – Kindest thing anyone has ever done for Pat