Hunting Ground


Circle of Competence, Environment, Opportunity Cost, Risk, Strategy

Hunting Groundhʌntɪŋ ɡraʊnd/nouna place likely to be a fruitful source of something desired or sought. Imagine if you’re going on a fishing trip, what do you need? You need a location, fishing rods, reels, lures, etc. That’s the plan. But a plan doesn’t equal success. You might catch some fish if you’re lucky, but you’re […]

A Million Dollars Lesson


Investment Process, Luck, Market, Psychology, Risk, Strategy

In investing, knowing what not to do is more important than knowing what to do. But since we don’t have all the time in the world to make all the possible mistakes to figure out what not to do, the best way is to learn from other’s mistakes.  In What I Learned Losing A Million […]

Scale Economies


Analysis, Moat, Scale Economies, Strategy

Scale economies is one of the seven moats of quality companies.  Scale economies mean the fixed cost per unit falls as volume increases. Fixed cost is indivisible. And indivisibilities are more likely when an activity is capital intensive. The 3 main sources where scale arises are distribution, manufacturing and niche market.  A dense distribution network […]

10 Lessons on Moats


Capital Allocation, Compounder, Moat, Strategy

Moat is independent of market size The common misunderstanding for moat like scale economies is that it only exist in large markets. While a company has to reach a certain size to achieve scale advantage, it is in relative to the size of its competitors, not the size of the market. A company that is […]