william the wie
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- Nov 18, 2009
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And how do you determine if there is a moat and its probable life span? Commodore was the first company to ship one million home computers and was touted for the width and depth of its barriers to entry from small fry companies like Microsoft and Apple. Similar examples can be pulled from any industry. Berkshire for example lost its moat about 1998 when private equity firms and pension funds saw their metrics and started to compete with it. Risk adjusted returns on Berkshire with its @ 30% leverage has been reverting to the mean with a vengeance since at least the 1998 purchase of Munich Re.
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