432- Perfect Competition
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\u2014couldn\u2019t be simpler, right?\n\nIn 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.\n\nWhile 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.\xa0The 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.\n\nJoin 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.\n\nIf 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:\xa0https://bit.ly/42dBHSn\n\nTopics Discussed:\n\nConditions under which companies can succeed\n\nImperfect competition\n\nSwiss house cleaning customs\n\nMoat vs competitive advantage\n\nCalculating return on capital\n\nTangible vs intangible assets\n\n\nResources Discussed:\n\nGlanbia\n\nLululemon\n\nSephora\n\n\nLearn more about your ad choices. Visit megaphone.fm/adchoices