Strong Customer Loyalty Recurring Revenue Business Models
Potentially High Cash Returns on Invested Capital Excellent Management Teams
Prospero believes that because of the abundance of capital, globalization and rapid technological change it is becoming increasingly difficult for many companies to sustain a meaningful competitive advantage over their competitors. We have found, for example, that there are companies with superior management teams that proactively use technology to fortify existing competitive advantages or create new ones and build additional protections around their businesses such as low-cost production and distribution systems, differentiated highly-valued products and services, and/or a clear focus on specific niche markets. By definition, companies without significant and sustainable competitive advantages are unlikely to earn superior returns on capital over time.