Capital Allocators – Inside the Institutional Investment Industry Mike Tian – Moat Trajectories and Investing in China at WCM (Capital Allocators, EP.212)
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Sep 6, 2021 In this conversation, Mike Tian, a Portfolio Manager and Analyst at WCM Investment Management, dives into the art of moat trajectory analysis, using Visa as a prime example. He discusses the intricacies of investing in China, highlighting the impact of culture and consumer behavior on heavy and light industries. Mike emphasizes the balance between risks and opportunities, while also sharing insights into WCM's own strategic approach to navigating competitive advantages in the investment landscape. Tune in for valuable perspectives on adapting investment mindsets!
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Morningstar Framework
- Morningstar's equity research framework provides a structured way to evaluate companies.
- Their moat framework is applicable to diverse companies, categorizing them effectively.
Moat Trajectory
- WCM's 'moat trajectory' concept is similar to Morningstar's 'moat trend'.
- This involves analyzing a company's moat evolution and predicting its future strength.
Assessing Moat Trajectory
- Moat trajectory analysis involves envisioning a business's future state and comparing it to its current state.
- Consider whether the business is improving or declining, focusing on factors like network effects, switching costs, and brand evolution.