Sunday, January 4, 2015

25 percent margins

“I’ve always said 25 percent margins are not a forever thing.” Bill Gates. Forbes, February 28, 1994

Moats created by existing network effects or others factors are brittle even though they are strong. All moats deteriorate over time the only questions are (1) is how fast the process happens and (2) can the company generate a new moat with the cash flow

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