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b"My guest this week is Pat Dorsey, who was the longtime director of equity research at Morningstar, where he specialized in economic moats: sources of sustained competitive advantage that allow a few companies to deliver huge returns over time. Several years ago he left Morningstar to form his own asset management firm, Dorsey asset management, and build a portfolio of companies with wide moats like those he studied at Morningstar. And while moats are critical, equally important is how companies allocate the capital generated--or made possible--by the existence of the moat.\\xa0\\xa0\\n A special thank you to Brian Bares who introduced me to Pat, and to Will Thorndike--an earlier guest on the show. In the vast majority of conversations you hear on this show, I'm meeting the guest for the first time. I mention this to encourage you to connect me with anyone whose story or way of looking at the world might resonate. Always feel free to contact me with ideas.\\xa0\\xa0\\n Pat and I begin our discussion with the key differences between the sell side and the buy side, and then discuss all aspects of moats and capital allocation.\\xa0\\n \\xa0\\n For comprehensive show notes on this episode go to\\xa0http://investorfieldguide.com/dorsey\\n For more episodes go to\\xa0InvestorFieldGuide.com/podcast.\\n To get involved with Project Frontier, head to\\xa0InvestorFieldGuide.com/frontier.\\n Sign up for the book club, where you\\u2019ll get a full investor curriculum and then 3-4 suggestions every month at\\xa0InvestorFieldGuide.com/bookclub.\\n Follow Patrick on Twitter at\\xa0@patrick_oshag\\n \\xa0\\n Show Notes\\n 2:23 \\u2013 (First question) \\u2013 Transition from the sell side to the buy side and the biggest surprise\\xa0\\n 3:40 \\u2013 What is a moat\\xa0\\n 5:16 \\u2013 What part of the stock market universe has a moat\\xa0\\n 6:57 \\u2013 Pat\\u2019s framework for identifying moat, starting with intangibles\\xa0\\n 8:32 \\u2013 The power of brands\\xa0\\n 9:44 \\u2013 what chance does an upstart have to come in and usurp a well-established brand \\xa0\\xa0\\n 12:24 \\u2013 Switching costs as part of the framework for identifying a moat\\xa0\\n 14:55 \\u2013 The third component of identifying a moat, network effects, and what businesses should do to effectively build one\\xa0\\n 17:29 \\u2013 Last component, cost advantages/economies of scale\\xa0\\n 19:29 \\u2013 How do you analyze these four components into an investing framework that can be built into an actual strategy\\xa0\\n 21:13 \\u2013 How does Pat think about this from a mis-pricing standpoint\\xa0\\n 23:37 \\xa0\\u2013 How does Pat incorporate current price of a company in consideration for future returns when pricing a moat\\xa0\\n 25:39 \\u2013 How should a company with a moat operate to protect that characteristic, especially when it comes to their capital allocation\\xa0\\n 26:51 \\u2013 Which characteristic of a moat does Pat find most intriguing\\xa0\\n 30:35 \\u2013 What makes for good and smart capital allocation\\xa0\\n 35:58 \\u2013 What is Pat\\u2019s process for identifying the best investment opportunities\\xa0\\n 38:38 \\u2013 What are good economics when looking at a company\\xa0\\n 41:03 \\u2013 If Pat could take any business, but have to swap leadership, what would he choose.\\xa0\\n 44:13 \\u2013 Back to his process of finding investment opportunities\\xa0\\n 46:05 \\u2013 Kindest thing anyone has ever done for Pat\\n \\xa0\\n Learn More\\n For more episodes go to\\xa0InvestorFieldGuide.com/podcast.\\xa0\\n Sign up for the book club, where you\\u2019ll get a full investor curriculum and then 3-4 suggestions every month at\\xa0InvestorFieldGuide.com/bookclub\\n Follow Patrick on twitter at\\xa0@patrick_oshag\\n Read more at https://investlikethebest.libsyn.com/pat-dorsey-buying-companies-with-economic-moats-invest-like-the-best-ep51#oBGdOp1br4EMtORd.99"