Hlib Chabaniuk

Tren Griffin: Sustained high returns signal a business moat

Tren Griffin: Sustained high returns signal a business moat
High returns over years define moat

Tren Griffin explains that a business demonstrating returns on capital significantly above the opportunity cost of capital for more than five years has established a moat. The determination, according to Griffin, is based on mathematical evaluation.

He specifically addresses claims that companies like NVIDIA and TSMC lack moats, stating that moats can be quantitatively assessed and established over extended periods.

Griffin has previously reported that Citadel completed nearly 100 block trades valued at $4 billion to reduce its portfolio risk exposure, as detailed in a recent article. He also examined Citadel's bulk acquisition of SA in a trade linked to flex options, citing sources from August in another report. These articles reflect his ongoing coverage of significant transactions and risk strategies in the financial sector.

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