RE:RE:RE:RE:RE:RE:RE:Is the market efficient? - NoLots of time and effort into your posts TLV. Thank you for sharing your wisdom. And yes, questions like 1, 2 and 3) are what I was talking about
My experience is internal to the business and as an advisor to management.
Many years ago I started to assemble pithy how to framweworks, models and checklists pertaining to business areas and issues, then when I learned the power of good questions (I don't have to have the answers) clients should answer for themselves, I began assembling and asking questions. Had an Annual Review set I was quote proud of.
WRT competitive advantage, ..in my experience it is all about people and their competence making the right decisions and executing well. It is their methods and techniques and how significant their product service is to enabling their customers to achieve some aim they may have.
A patent is a patent is a patent is simply a legal right to do exclusivity...but it is nothing if it does not produce revenue.
So I definitely see what you are saying in that it can be difficult to ascertain exactly.I also understand why you talk about ROIC because it is a great proxy for management competence at using their invested capital to earn money
I was in the small business sector where it is easier to see. My own practice included professionals who had their market protected by legislation...doctors, dentists, veterinarians ...where only they could provide certain services, and business owners who used specialized equipment and techniques....like ultra high water jets that cleaned paint booths by slicing through paint layers like nothing...
and better yet, one well spoken salesman with an almost guaranteed "script" that led his client conversations to where he wanted to take them. "No" was simply an unresolved objection... invariably followed up by politely phrased "why" he could tackle. But it was all based on a tested sales script that produced results.
Specialized equipmet and techniques also gave advantages to my professionakls, like veterinarians. At one time I had one of the only veterinary neurologist in Canada as a client.
In these cases it was easy to see where the competitive advantages lay.
And thanks for the book suggestion I will chase it down