Many investors focus on the current size of a company's competitive advantage. A better indicator of future success is the direction of that moat—is it growing or shrinking? Focusing on the trajectory helps avoid value traps like Nokia in 2007, which had a wide but deteriorating moat.

The most successful founders, like Koenigsegg, say the same things on day one as they do 20 years later. Their success comes not from pivoting, but from the relentless, decades-long execution of a single, powerful vision. This unwavering consistency compounds into a massive competitive advantage and defines the company's character.

Amadeus maintains its "gorilla" status by being beneficial to its ecosystem, acting as a variable cost for airlines and sharing economies of scale. The ultimate test of a great business is when competitors hate you but customers love doing business with you for the same reasons.

Breakthrough companies often succeed not by iterating endlessly, but by 'planting a flag'—making a strong, often contrarian bet on a core thesis (e.g., email-first media) and relentlessly executing against that vision, even when it's unpopular or lacks momentum.

The growth role has evolved from a narrow focus on media buying to a strategic function involved in all business expansion, including new markets, sales channels, and product categories. Growth teams offer a critical viewpoint on customer spending and market trends, acting as thought partners for the entire business.

LEGO maintains its market leadership by replacing half of its product portfolio—around 450 products—every single year. This aggressive renewal cycle forces the company to stay deeply connected to current trends and continuously innovate, ensuring they are "no better than the creativity we are coming out with right now."

The idea that startups find product-market fit and then simply scale is a myth. Great companies like Microsoft and Google continuously evolve and reinvent themselves. Lasting success requires ongoing adaptation, not resting on an initial achievement.

A brand's strength can be measured by its "durability"—the permission customers grant it to enter new categories. For example, a "Nike hotel" is conceivable, but a "Hilton shoe" is not. This mental model tests whether your brand is defined by a narrow function or a broad customer relationship.

Companies like Amazon (from books to cloud) and Intuitive Surgical (from one specific surgery to many) became massive winners by creating new markets, not just conquering existing ones. Investors should prioritize businesses with the innovative capacity to expand their TAM, as initial market sizes are often misleadingly small.