“”For capital to be truly [inflation] indexed, return on equity must rise, i.e., business earnings consistently must increase in proportion to the increase in the price level without any need for the business to add to capital – including working capital – employed. (Increased earnings produced by increased investment don’t count.) Only a few businesses come close to exhibiting this ability.
“Real moats are built with real dollars, and Bezos has been relentless in pushing the company to continually invest in solving problems with real world costs, from delivery trucks to data centers and everything in-between.
“One way to get a sense of the value capture ability of a marketplace is by measuring its take rate.
Art Imitates the Stock Market: Sixty Years on Wall Street (Chris Mayer, Woodlock House Family Capital) End of Mean Reversion?