Tren Griffin @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Dec. 07, 2019 1 min read


Morningstar: "We assign Dollar General a narrow moat rating on the strength of its brand intangible assets and a cost advantage."

Is this the right way to assess the existence of a moat?

Is the conclusion correct?

How does a moat impact intrinsic value?

2/ "Dollar General (DG) serves customers in rural and suburban areas, while its rival, Dollar Tree (DLTR), targets suburban, middle-income shoppers. Family Dollar focuses on lower-income urban and rural customers." 

3/ Voodoo that you do? "The stochastic reading is projected to decline to 58.28 this week from 69.51 on Nov. 29. When the stock set its high this reading was 91.57, above the 90 threshold as an inflating parabolic bubble, which is a signal to book profits." 

5/ "Economic Moat is a proprietary Morningstar data point." 

Is the above sentence:

6/ What is the relationship between:

"Competitive advantage period (CAP) is the time during which a company is expected to generate returns on incremental investment that exceed its cost of capital" 

and the existence of a moat? Why does it matter?

7/ Clue: The terminal value can make up 70 percent or more of the outcome of a DCF analysis. 

You can follow @trengriffin.


Tip: mention @threader_app on a Twitter thread with the keyword “compile” to get a link to it.

Enjoy Threader? Sign up.

Threader is an independent project created by only two developers. The site gets 500,000+ visits a month and our iOS Twitter client was featured as an App of the Day by Apple. Running this space is expensive and time consuming. If you find Threader useful, please consider supporting us to make it a sustainable project.