This week’s article has an example of the Salim group:
Notice how neither you nor Agustiadi’s businesses were defeated by superior product or smart counter-positioning or better, more efficient operations. No: you were defeated by superior access to capital.
I don’t fully understand… this looks like a structural cost advantage (cornered resource) to me? What makes this an example of capital?
This article does remind me of one of the metrics I would look at when analysing companies. Everyone knows to look at ROIC/WACC, but fewer people think about return on incremental invested capital. ROIIC is harder to figure out, but very valuable to get an idea about!