Speaker unverified: belief

Transcript context

…One thing I think was really counterintuitive about how you guys think is you actually not looking for moats. The companies you just described and I think a lot of investors think about like, oh, wow, they've got really deep moats. Of course, you want those as your long-term compounding holds, but you guys have a little different perspective on this, right? Yeah, we've a little bit of a different take. I don't want to offend anyone that uses the term moats. I think it's a great term and it's a great part of anyone's investing toolkit. I guess one of the things that we're careful about is looking for companies where part of their moat is inserting themselves into the value chain into their customers' share of wallet, basically, where they put themselves in a position to extract as much economics as possible. I think that can be viewed, especially in more like an industrial age view of how competitive advantage has evolved, is something that we try to avoid. We're not trying to look for a company where they feel like they have a customer lock-in and then all of a sudden they can raise the price 3%–5% for the next 10 years. Part of our framework and the reason we named the firm NZS Capital is we're looking for non-zero sumness, so looking for a win-win outcome for all constituencies across the value chain. That includes the company's employees, their customers, and also kind of society in the environment at large. We're just careful looking for companies where all of a sudden, if I have this moat then I can screw my customers over the next 10 years. I think that's what we're careful about. I don't think you guys hold Apple, right? But you do some of the other large tech companies. This feels like a perfect example to me of oh, Apple, incredible moats.…

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