In his article, “Should Investors Avoid Moats? Paul Mampilly Explains,” Paul takes on the advisability of investing in moats. Moats are companies that have solid and long-standing competitive advantages that have allowed them to gain a large portion of the market share. The term was coined by Warren Buffet as a metaphor for companies that have such a strong position that trying to take them on, would be like attacking a medieval castle. As such, he believed that they were good investments. Elon Musk, the CEO of the Tesla company, took exception to the notion that a company so entrenched, one that did not have to adapt to the pressures caused by competition, would be more competitive. He believed these companies were inherently doomed to failure. Follow Paul Mampilly on Stocktwits.com.
Congrats to all Extreme Fortunes members! A few days ago members made a 532% gain — more or less.
— Paul Mampilly (@MampillyGuru) June 22, 2018
Paul Mampilly argues that Musk is correct. A company needs pressures to innovate, primarily because of the possibility of disruptive technologies developing. In today’s economy, however, capital is much easier to get, and alliances with other companies are much easier to make. This will lead to more companies attracted by an older, more established company’s profitability to enter the market. These ‘moat’ companies, which have previously faced such competitive pressure, will not be able to withstand the competitive onslaught from newer, more streamlined companies that can. These smaller companies would, therefore, have a better future outlook and be a better investment.
In the article “What Is Going to Drive the Next Bull Market? According to Paul Mampilly,” the financial advisor advises that the next market to take the lead is the sneaker market. When hearing this, an investor may question his judgment, but, for example, the popularity of high-performance sports shoes have skyrocketed. Paul Mampilly reports Air Jordans are selling for as much as 900% of their original value; while the value of the company that owns PUMA is up 134%, Nike is up 71%, and Adidas are up by 185%. With numbers like these, it appears that he may be correct in his analysis as the S&P 500 has only grown by 40% during the same period. It seems as though this millennial-driven trend is here to stay, and Mampilly predicts the market will continue to grow and expand, making sneakers a good investment into the foreseeable future. Check: https://banyanhill.com/expert/paul-mampilly/