While many investors look for a competitive "moat," investor Mala Gaonkar's primary differentiator is identifying businesses with very long-duration moats. The key to finding truly great companies is assessing how long their competitive advantage can be sustained, not just that it exists today.
Investor Mala Gaonkar asserts that to deliver quality at scale, any business, whether in aerospace or medtech, must have a strong technology backbone. Her firm gains an edge by analyzing the "tech stack map" of companies, especially those not traditionally considered technology businesses.
AI is improving medical imaging accuracy and speed by nearly 70%, enabling earlier detection of chronic diseases. This leads to more effective preventive care, which is crucial for an aging global population and offers a promising path to making overall healthcare more cost-effective.
Instead of focusing only on new technology, it's crucial to see how old technologies disrupt industries in new ways. Mala Gaonkar cites lithium-ion batteries, invented in 1976, revolutionizing the modern auto industry, and gaming GPUs from the past now powering the AI boom.