Miguel Maeztu @AzeriaInvest: "𝐖𝐡𝐞𝐧 𝐥𝐨𝐰𝐞𝐫 𝐩𝐫𝐢𝐜𝐢𝐧𝐠 𝐢𝐬 𝐲𝐨𝐮𝐫..."

Luxembourg

𝐖𝐡𝐞𝐧 𝐥𝐨𝐰𝐞𝐫 𝐩𝐫𝐢𝐜𝐢𝐧𝐠 𝐢𝐬 𝐲𝐨𝐮𝐫 𝐦𝐨𝐚𝐭 Often moats are associated with prices hikes - a company's pricing power. And to a large extent it is true. However, another competitive advantage is based on being the cheapest. CostCo is an example where being the cheapest at scale has created a formidable moat. The company I had in mind for this is Wise. A core segment is the take rate on cross border payments. Such take rate has been declining for years, and its a reason of why Wise wants to be the most price competitive company out there for cross border currency transactions. It is counter intuitive to think that lower prices increase Wise's moat. Thinking of IBKR (Interactive Brokers) brings a similar case, where their competitive advantage is anchored at being the lowest cost for stock transactions. For as long as volume follows, lower prices support the business case. 𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘵𝘩𝘪𝘴 𝘪𝘴 𝘵𝘩𝘦 𝘴𝘰𝘭𝘦 𝘰𝘱𝘪𝘯𝘪𝘰𝘯 𝘰𝘧 𝘵𝘩𝘦 𝘢𝘶𝘵𝘩𝘰𝘳, 𝑢𝑛𝑟𝑒𝑙𝑎𝑡𝑒𝑑 𝑡𝑜 𝑚𝑦 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑟 𝘢𝘯𝘥 𝘪𝘴 𝘯𝘰𝘵 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘐 𝘮𝘪𝘨𝘩𝘵 𝘣𝘦 𝘪𝘯𝘷𝘦𝘴𝘵𝘦𝘥 𝘪𝘯 𝘵𝘩𝘦 𝘴𝘵𝘰𝘤𝘬𝘴 𝘮𝘦𝘯𝘵𝘪𝘰𝘯𝘦𝘥. 𝘋𝘰 𝘺𝘰𝘶𝘳 𝘰𝘸𝘯 𝘳𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘢𝘯𝘥 𝘪𝘧 𝘶𝘯𝘴𝘶𝘳𝘦, 𝘴𝘦𝘦𝘬 𝘱𝘳𝘰𝘧𝘦𝘴𝘴𝘪𝘰𝘯𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘊𝘰𝘱𝘺 𝘛𝘳𝘢𝘥𝘪𝘯𝘨 𝘪𝘴 𝘯𝘰𝘵 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘥𝘷𝘪𝘤𝘦 | 𝘊𝘢𝘱𝘪𝘵𝘢𝘭 𝘢𝘵 𝘳𝘪𝘴𝘬 | 𝘗𝘢𝘴𝘵 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘨𝘶𝘢𝘳𝘢𝘯𝘵𝘦𝘦 𝘧𝘶𝘵𝘶𝘳𝘦 𝘳𝘦𝘴𝘶𝘭𝘵𝘴 $WISE.L (Wise Ltd) $IBKR (Interactive Brokers Group) $COST (Costco Wholesale Corp) $RELY (Remitly Global Inc) $ESP35

Not investment advice. The author may have financial interests in the mentioned instruments.