JULIA LA ROCHE 00:00
Michael [inaudible] ask, of the various types of moats and competitive advantages, which types do you think will be most important in the years ahead, and what combinations of competitive advantages can you imagine will create any new types of moats?
CHARLIE MUNGER 00:24
Well, that’s too hard in general a question for me.
The one thing I will say is that a lot of the moats that looked impassable, people found a way to displace. Think of all the monopoly newspapers that used to be, in effect, part of the government of the United States. And they’re all dying — every damn one of them almost.
A lot of the old moats are going away, and, of course, people are creating new moats all the time. That’s the nature of capitalism. It’s like evolution in biology. New species are created and old species are dying.
Of course, it’s hard to negotiate in such a field. But there’s no rule that life has to be easy on the mental side. Of course, it’s going to be difficult.
Nothing can last forever because the nature of capitalism is like evolution in biology; new species are created and old species are dying.