FYI: Value investing used to be about betting on the underdog — finding the down-and-out losers and gambling that they might have one more fight left in them.
Today’s value investors have a new gospel: Harvard Business School professor Michael Porter’s Competitive Strategy.
Porter’s theory is that power leads to profits. The wider the moat, the greater the market share, the greater a company’s ability to squeeze profits from competitors, suppliers, and customers. Porter tells a modern parable of the Five Forces — the professor’s signature analysis framework — that gave Goliath a sustainable competitive advantage over David.
Regards,
Ted
https://www.institutionalinvestor.com/article/b15jm11km848qm/the-gospel-according-to-michael-porter
