In 1986, two American steel producers faced identical industry conditions: falling domestic demand, intensifying competition from low-cost foreign producers, and steel prices that made profitable operation nearly impossible except at the top of the cycle.
Worked example: Five moat types — five companies, one decade
In the summer of 2011, Coca-Cola raised the price of a case of Coke by approximately 4% across its primary North American markets.
Worked example: Three businesses — one test
Between 1990 and 2010, two American retailers grew their store counts by roughly the same magnitude.
Worked example: ROIC decomposition — two software businesses
In the summer of 2022, two consumer staples companies faced the same macroeconomic environment: raw material costs surging, logistics costs elevated, and consumers under pressure from 9% CPI inflation.
Worked example: Gross margin decomposition: three businesses under pressure — 2021–2023
In 1988, two large American industrial companies each generated roughly $800 million in free cash flow.
Worked example: Capital allocation across four decades — two industrial conglomerates