Vishuddha Capital Management Quarterly Investor Letter

In this letter, we would like to focus on competitive advantage and illustrate how we measure this for our portfolio companies. There is enough literature available globally about what competitive advantage means and the resulting valuation premium that companies tend to achieve as the company’s advantages are realized by the market. Morningstar uses a fairly comprehensive framework to describe the nature and strength of “moats” for various companies, classified broadly as follows: