Vishnu Agarwal's Reviews > The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments

Good book....It explains in great details about the kind of business one should own i.e., business with large and durable moats...Business with large moats can only generate very high Return on Capitals....The author identifies the four major categories which covers a large part of businesses having moats...
1. Intangibles - Brands, Patents (Pharma), Regulatory Licenses (Ratings)
2. Switching Costs - Banks/ Financials, IT Software Companies, Money managers
3. Networking effect - One platform used by many people like Internet Companies (eBay, Microsoft),
Exchanges (NSE, NASDAQ etc), TV Stations
4. Cost Advantages - Process Adv, Location Adv, Unique Assets, Size Adv.

Overall it was fun reading this book. Thanks