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The difference between a good business and a great one is that a great business throws up one easy decision after another. A good business makes you think hard every day about whether the economics still make sense.

— Charlie Munger, Wesco Financial Annual Meeting (2004)
1d ago
readtheprofile.com
Who Is Michael O’Leary?

"The other airlines are asking how they can put up fares. We are asking how we could get rid of them," he said in a 2001 interview.

2d ago

The market is brutally efficient at processing publicly available information. Your edge, if you have one, almost certainly lies in your ability to wait longer than the person on the other side of the trade — not in knowing something they don't.

1w ago

The best business returns are usually achieved by companies that are doing something that it's hard or impossible for you to do to them. Every year they get harder and harder to compete with. They have an ever-widening moat around their castle, and the key is not 'how big is the castle today?' but 'what is the trajectory of the moat?'

1w ago

The greatest competitive advantage in business is not being smarter than your competitors. It's being willing to be patient when they can't afford to be. A long time horizon is a cheat code that almost no one is willing to use.

2w ago
lennysnewsletter.com
How to tell if a startup has a moat

Speed, distribution, brand, a great founding team, and lots of funding—these are all fuel. They get the car moving in the right direction. The four compounding advantages are what it looks like when the car starts rolling downhill on its own.

3w ago

The best CEOs I know are teachers, and at the core of what they teach is strategy. Most companies deteriorate because they compromise on one or two key strategic choices under competitive pressure. A business that stands for something specific — and refuses to stand for everything — is a business that can actually win.

1mo ago

The single greatest edge an investor can have is a long-term orientation. Most of the competition is focused on the next quarter; if you can honestly say you don't care about the next three years, you've already eliminated most of your rivals before the game begins.

1mo ago
oneusefulthing.org
The Overhang

The capability overhang, the gap between what these models can do and what almost anyone is doing with them, is an opportunity because most people don't bring their own advantages to AI, and those who do get much more out of it. That is why I think we will need to focus on the individual traits we have that remain useful even as AI abilities improve. You are not trying to compete with AI in producing outputs, that is a losing game.

1mo ago

The best business returns are usually achieved by companies that are doing something that it's relatively easy to do, but that has a moat around it — and the moat is usually not a patent, it's usually a network effect or a cost advantage or something that's very hard to replicate.

1mo ago

The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors.

2mo ago

The single greatest edge an investor can have is a long-term orientation that other investors are structurally unable to adopt. Most institutions are prisoners of their own quarterly reporting cycles, which means patience itself is a source of alpha — not intelligence, not information.

2mo ago
upstartsmedia.com
‘Maybe I’m Psycho’: Why Tech Founders And VCs Are So Online

"Anyone who has PMF [product market fit] has it for max six to 12 months, and is required to continuously keep releasing bangers," Ding argues. "Versus before, you could have dominance for three to five years, and rely on that."

2mo ago

The difference between a good business and a great one is that a great one makes it hard to compete against it. A good one merely makes it hard to make money. The best business is one where you can keep repricing upward without losing customers—that's when you know you own something real.

2mo ago

The best business returns are usually achieved by companies that are doing something that is quite easy to understand. The trick is getting first to a strong market position and then exploiting the advantages that follow. What you want is a natural franchise. A company can have a perfectly marvelous product and still be in a lousy business.

3mo ago

Investors often make the mistake of confusing a exciting industry with a profitable one. The trick is not to find industries that are growing fast, but to find companies that can keep competitors from eating their lunch.

3mo ago

The single greatest edge an investor can have is a long-term orientation that other investors are structurally unable to match. Most investors are forced by their mandates, their clients, or their own psychology to think in quarters. If you can genuinely think in decades, you are not playing the same game they are.

3mo ago
readtrung.com
Kirkland Signature: Jim Sinegal and the Making of Costco's $90B Private-Label Empire

Consumers, conditioned by heavy promotion and by habit, did not bolt even as prices of some of their favorite soaps and cereals increased by 5% or 8% a year. And so profits increased much faster than that. Heinz's earnings climbed by an average of 13% a year during the past decade, Clorox's by 15%. Their shareholders and owners reaped a treasure.

3mo ago
ai-supremacy.com
Claude Fable Guide for Stock Analysis

The real version is more useful to you as an investor: the single most capable model Anthropic has ever released to the public was considered serious enough that a government reached for emergency export controls — and it's now sitting in the same app you already use.

3mo ago

The best business returns are usually achieved by companies that are doing something quite similar today to what they were doing five or ten years ago. That is no accident.

4mo ago
stratechery.com
Anthropic’s Safety Superpower

A world where models are interchangeable is one where models are commodities, while most of the value flows elsewhere. Right now that's compute, but in the fullness of time, whenever we have enough compute, the most valuable place to be in the value chain will be the place that has always been the most valuable: owning the user touchpoint.

4mo ago

The biggest moat a business can have is not technology, not patents, not brand — it's the accumulated trust of customers who would feel genuine loss if you disappeared. Trust is the only asset that appreciates purely through use and deteriorates purely through neglect.

4mo ago

The greatest competitive advantage in business is a long time horizon. Almost all of the gains in any market come from people willing to wait longer than everyone else is willing to wait, and almost nobody is structurally set up to do that.

5mo ago
notboring.co
America Spins on Westmag

In the Electric Era, maintaining design leadership without manufacturing leadership is not a coherent strategic position, and one that gets less coherent the better you believe AI will get.

5mo ago

The best business is one where you can raise prices without losing customers. The second-best business is one where you can raise prices and gain customers.

5mo ago

The best business to be in is one where you can raise prices without losing customers, and yet few businesses qualify. Most businesses are competitive enough that if they raise prices, they lose significant volume.

5mo ago
ai-supremacy.com
OpenAI's Momentum is Spiraling Down ▼

While Google and Anthropic have executed well in their Generative AI efforts, OpenAI has fumbled their priorities while losing considerable marketshare over the last year.

5mo ago

The difference between a good business and a bad business is that a good business throws off cash and requires little capital to grow, while a bad business requires lots of capital and doesn't throw off much cash.

6mo ago
upstartsmedia.com
Meet The DJing a16z Alum Who Raised $30M For New VC Firm Worldbuild

There is so much noise in venture today, that actually leading with original thoughts can have a competitive advantage. We want other, larger platforms to view Worldbuild as a tastemaker for where they should be spending time six months, or 12 months from today.

6mo ago

The best investment is in yourself. But once you've bought yourself, you need to think about what produces the best return on that investment. And the answer is usually a business where you have some advantage—whether it's a better mousetrap, or better access, or better understanding of the customer.

6mo ago
stratechery.com
Amazon’s Durability

Amazon, more than any other company, actually operates with decade-long timeframes, consistently making real-world investments at massive scale that (1) convert their marginal costs into capital costs and (2) gain leverage on those capital costs by selling them to other businesses.

6mo ago
stratechery.com
2026.18: Long-term, Peripheral & Myopic Visions

Amazon — whether through vision or good fortune — was positioning itself well for a world defined by inference (given that their inference chip is called "Trainium", I'm going with a little bit of column A and a little bit of column B).

6mo ago
ai-supremacy.com
The Landowners of AI

What's becoming more clear is that hyperscalers are the true landowners of AI. They are the custodians and the ones that benefit directly from the demand for compute in more Cloud computing and digital Advertising revenue.

6mo ago
stratechery.com
An Interview with OpenAI CEO Sam Altman and AWS CEO Matt Garman About Bedrock Managed Agents

Azure had a real competitive advantage thanks to being the only hyperscaler able to offer OpenAI models, but this also hindered OpenAI, particularly once it became clear that many enterprises cared first and foremost about accessing models on their current cloud of choice; I've been noting for a while that this was a real competitive advantage for Anthropic.

6mo ago
ai-supremacy.com
Why Cursor is the Enterprise AI Darkhorse of Generative AI

Unlike OpenAI, where Cursor really shines is in product innovation. You can feel the difference in talent. Cursor has recently transitioned from being an AI-enhanced code editor to what they describe as an "Agent-First Interface."

6mo ago

The best way to think about the future is not by projecting the past, but by understanding what is actually changing in the world and which businesses benefit from that change versus which ones get hurt by it.

6mo ago
stratechery.com
2026.16: Servers, Satellites, and Stars

The key to understanding and analyzing tech has been appreciating the implications of zero marginal costs, which govern the economics of everything from chips to software to services. AI services generally fall under the same rubric — fixed costs in terms of data centers and chips matter more than marginal costs (mostly electricity) — but the worsening shortage in compute means it is opportunity costs that matter more than ever.

6mo ago

The best investment is in yourself, but the second-best is often in businesses where you can understand what they do and where they're going better than the market does.

6mo ago

The difference between a business that compounds and one that doesn't is often not the talent of the founder, but the defensibility of the moat—and most founders underestimate how much time it takes to build one.

6mo ago

The best thing a company can do is compound capital efficiently over decades. But the second-best thing is to be so boring that people forget to worry about you.

6mo ago

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