My First Million
The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.
Brand moats are undervalued by tech entrepreneurs compared to technology and network effects, but can be more durable in many industries
The Reasoning
Tech people understand measurable moats but dismiss brand because it's harder to quantify. However, brands can last centuries while technology becomes obsolete quickly.
What Needs to Be True
- Products have emotional or status components beyond utility
- Consumers care about heritage and story
- Distribution channels reward brand recognition
- Category has room for premium positioning
Counterargument
Technology moats can be more defensible because they create functional superiority rather than just perception
What Would Change This View
If AI commoditizes brand creation or if consumers become purely utility-focused
Implications for Builders
Don't dismiss brand-first strategies
Combine operational excellence with brand building
Think decades ahead for brand sustainability
Price for brand value, not just cost-plus
Example Application
“Louis Vuitton founded in 1854 still commands premium pricing while most tech companies from even 20 years ago are obsolete.”
Related Knowledge
Brand as Moat Strategy
Using brand power as a primary competitive moat instead of technology or network effects, particularly effective in luxury goods where perception drives value.
Correct Lesson Learning Framework
A systematic approach to evaluate whether someone is drawing the correct conclusions from their experiences, rather than just having experiences.
Service-to-Product Acquisition Strategy
Using profits from a service business to systematically acquire better businesses with recurring revenue and product characteristics.
Acquire and turn around distressed luxury brands
Transformed brand with luxury margins (75%+), global distribution, and sustainable competitive moat
Build trusted business relationships entirely through digital interactions
Trusted business partnerships conducting significant transactions without ever meeting in person
Diagnostic Authority Model
When you can diagnose a problem for someone, you gain more authority and sales leverage than if they already know they h