David Rosenthal: commitment

Transcript context

…Oh, yeah. I mean, we should talk about there’s a great, great… I almost included this as my carve-out for the week, but I’m going to do something else because I knew we’d talk about it on the episode. There’s a great paper that was written by Michael Mauboussin and his team who’s a great investor. He was head of Legg Mason which is a large mutual fund and at Credit Suisse for a long time. I believe he’s now back at Credit Suisse. He’s written a number of great books. He’s also a professor at Columbia Business School, I believe. He wrote this great paper called Measuring the Moat. It’s all about the concept of the moat, you know, as an investor is sort of the most important thing. Warren Buffet emphasized it in Berkshire Hathaway and Charlie Munger emphasized the moat as sort of the most important thing they look for. And it uses the airline industry as an example of a terrible industry that has destroyed so much economic value and has no moat. Yeah, and this is… I’m not sure if this… I think this is still true. It was at least true a couple of years ago. If you look at the airline industry since its inception and you look at basically a profit loss statement for an aggregate of every single airline, it’s lost value, like it’s actually not been profitable if you look at every single.…

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