Very insightful. Rememberalways invert: how many cases are there where distribution is not really the ultimate moat, but rather secondary, unimportant, or even harmful?
Just take Coca-Cola: they don’t sell direct, yet they still have one of the strongest moats ever.
Or take Nike: they were much stronger before trying to control distribution. In fact, attempting to control it turned out to be a huge mistake.
Look at NVIDIA: the biggest company in the world, growing faster than many small caps, with huge margins, ROE, ROIC, etc. and they rely on partners for distribution.
Or Nintendo, Disney, PlayStation, Visa, Mastercard, the list goes on.
There are so many examples of great companies with great moats where selling direct is simply secondary.
The ultimate moat inmo is when a company has a product or service so unique that people don’t have a choice if they want the experience that company offers.
So yes, distribution is important. But with so many exceptions, I wouldn’t consider it “the ultimate moat.”
😘