1.Economic moat
Whether the business has a structural advantage that lets it earn above-average returns over time without being competed away.
- Sustained ROIC > 15% over a multi-year window (capital is being deployed at high incremental returns).
- Gross margin > 40% in industries where peers sit lower (real pricing power, not just scale).
- Brand, regulatory, network-effect, or switching-cost evidence in the business description.