With all of this talk about a 'moat' and the importance of having one, I would like to propose a different way of thinking here. A moat in the traditional sense is a barrier to entry behind which a business operates in the market under more favourable conditions than competitors (actual and potential).
We live in a world of ever accelerating change. Businesses operating behind a moat run a greater risk, I believe, of becoming complacent to changing market conditions and then being blindsided by shifts in the market that quickly make their product or business model redundant.
What Dave and the team have demonstrated already is the ability to creatively and pragmatically adapt to changes in their business environment and provide solutions to customer problems. Whilst building a moat would be advantageous right now, i believe that this nimble and Agile culture and approach will prove to be a far great asset over time. A different type of moat if you like.
Bigger traditional companies (telcos and utilities) simply can't operate in this way. It's the other startups we should be watching, and the changing landscape....the 'unknown unknowns' ☺️
BUD Price at posting:
23.5¢ Sentiment: Buy Disclosure: Held
