Pat Dorsey visits Google to discuss his book "The Little Book that Builds Wealth". Over time, most businesses with high returns on capital attract competition that forces down profitability. However, a small minority of companies are able to defy the laws of economic gravity by creating competitive advantages, or "economic moats" that insulate them from competition and allow them to maintain high returns on capital. After spending fifteen years analyzing thousands of companies, Pat has identified a handful of structural characteristics that create competitive advantage. In this Talk, he discusses these characteristics, how management teams can create and destroy competitive advantage, and how he applies competitive analysis in managing institutional capital at his firm Dorsey Asset Management. Pat is the founder of Dorsey Asset Management, which manages concentrated global portfolios for institutional investors. Prior to starting Dorsey Asset, Pat was Director of Research for Sanibel Captiva Trust, an independent trust company with approximately $1 billion in assets under management serving high net worth clients. He has also served as the Director of Equity Research for Morningstar, where he led the growth of Morningstar's equity research group from 10 to over 100 analysts. Pat developed Morningstar's economic moat ratings, as well as the methodology behind Morningstar's framework for analyzing competitive advantage. Originally published in January of 2015. Visit http://youtube.com/TalksAtGoogle/ to watch the video.

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