I’m continuing doing specific videos based on the different industries from the book The Five Rules for successful stock investing by Pat Dorsey. The book shows what to look for a financial report and how to think when evaluating companies. There are a few chapter on interesting sectors and industries. These chapters include specifics about how the industry works and how to think when evaluating companies in them. These parts of the book are less quant heavy and more a general idea on how to tackle the industry.
This video is my attempt at summerising the software industry and how to look at companies and evaluate them in the industry.
The software industry is categorised by low barriers of entry and few moats. It is therefore important to look at established companies and understand how they managed to survive for as long as they’ve done.
Below are the different key sections:
00:00 – Introduction
01:52 – Moats
03:22 – Financials
04:22 - Checklist
Thank you
