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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (19795)	10/8/2004 11:42:03 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78618

re economic moat The concept of "moat" which sort of was conered from Warren E Buffet is an important one. it manifest itself usually with the opportunity (if management does not screw up) to achieve above average ROI and/or growth rates in the future. I agree that the rear window view can be very misleading, examples where the rear view did not work are pharmas like BMY and now potentially MRK. Unfortunately I think cencept of moat is often misused, especially by biotech and technology companies. Companies like MLNM have been taking about franchises even before they had products on the market. In technology, there are very few true moat companies - examples are INTC, CSCO or the analog semis like LLTC and MXIM. On the other hand remember ARIBA, HGSI, GLBC?