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Dragon Invest's avatar

AI is unclear but the U.S. certainly leads in industrial fast food. If you or your readers like fast food then you might want to check out this analysis on an American fast food behemoth making rapid inroads into China.

https://dragoninvest.substack.com/

Chinese Restaurant Stock Analysis Series Part 3: DPC DASH (1405.HK)

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Jason Leonard's avatar

I know 'product experience' isn't always seen as a defensible moat, but in the context of Duolingo and how far ahead of the competition they are on this front, I would add it as part of their moat as well.

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The Dutch Investors's avatar

He Jason! Great add-on. We couldn't agree more. This is actually one of the non-traditional moats talked about in the premium fundamental analysis. Having the data (others don't have) is a moat not many investors talk about just yet. They did tons of A/B testing and years of collecting data and improving the product experience you're talking about.

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Eddy's avatar
Sep 3Edited

Very interesting posting. Just enough and not too much. All provocative ideas.

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The Dutch Investors's avatar

Thanks Eddy! Appreciate the compliment! Which idea did you like most?

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Eddy's avatar

Amazon and Hermes was already on my list. EssilorLuxottica is a company I had never heard of and I find it hard to believe how good the margins are for that business.

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The Dutch Investors's avatar

I know! I was stunned during my research.

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Investment Journey's avatar

While Duolingo is popular and has a strong brand in language learning, it operates in a highly competitive tech sector, is struggling for earnings and has significant challenges in monetizing its user base and retaining long-term subscriptions. Additionally, language learning can be cyclical and heavily influenced by market trends, making its growth path potentially less reliable than that of more diversified, resilient companies.

While it shows potential due to its unique position and gamified approach, there are far more stable, established businesses with consistent cash flows and less volatility that might be safer, long-term holds.

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