The prevailing investment theory in the US has an emphasis on "Moats," or durable competitive advantages.
The concept is easy to understand, but it is also easy to have bias here because it is hard to define what counts as a moat.
In the recent earnings call, the founder CEO of UBNT mentioned many competitive advantages of his company.
The problem here is that most of these advantages are not considered as "durable" by the prevailing investment theory.
In this article, I will try to show the flaws of these theories, and provide some evidence on what really mattered for the most successful companies.
Message From The Management
After I read the recent earnings call transcript of Ubiquiti (UBNT) for the second time, I thought a lot about the CEO Robert Pera's arguments on what he considered