The Dutch Investors #39 | Quality investing, moats and valuation | Interview w/ Niklas from Heavy Moat Investments
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Jun 5, 2025 Join an engaging discussion with a self-taught investor revolutionizing the approach to quality investing. Discover how to identify companies with durable competitive advantages, or 'moats,' and learn the art of valuation. The talk dives into the importance of public accountability and community engagement in investment research. Explore promising sectors and notable companies, including insights on recent IPOs. This conversation blends investment strategies with a passion for music, offering a unique perspective on navigating the financial landscape.
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Red Flags for Investment Avoidance
- Niklas avoids companies with unpredictable earnings, high churn, and empire-building behaviors.
- He dislikes companies doing large mergers due to integration risks, preferring smaller bolt-on acquisitions.
Signs of Durable Competitive Advantages
- Durable moats often come from duopolies or oligopolies with strong network effects and scale advantages.
- A long reinvestment runway indicates a business can sustain growth and defend its moat over time.
Culture's Role in Sustaining Moats
- Company culture is crucial for maintaining and evolving moats; it enables continual innovation and growth.
- EVS broadcast is a success story of culture-driven turnaround after a decade of decline.
