I just finished one round of reading this excellent article written by our own u/\_quantitative
The discussion is two parts, how to look at the moats. We normally associate moats with either keeping competition out or keeping customers from defecting, however the author says that perhaps we should also look at the supply side in terms of response and the type of responses.
The 2nd part of the articles uses these concept to explain FICO. And the conclusion is that fico is perhaps moving for a wide moat towards a moat based on duration. \[ *i read that as a narrow moat* \]. And the duration has perhaps shorted to a 5 year moat. And a sensitivity analysis on various growth scenarios would project a different valuation.
Anyway, this is a very long article and it is best not to read it in one sitting. It is also a great article if one wants to know the history of fico evolution from an old slow moving owner of the FICO score to a dynamic growing company that has been targeted by regulators.
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I hope the author will do a similar analysis on other wide moat companies as well.
