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

Concise summary of the sources of competitive advantage: (1) intangible assets (brands, patents, licenses), (2) high switching costs, (3) network effects, (4) cost advantages (scale in distribution, manufacturing or niche markets), location advantages, unique assets, process advantages). Valuation is largely based on (1) how large cash flows will be (growth), (2) the likelihood that those cash flows materialise (risk), (3) how much investment is needed (return on capital), (4) how long the business can generate excess profits (moat).