// strategy template
Wide Moat
Own toll roads: structurally protected businesses at sane prices.
// the lines that end the argument
One criterion is hard: fail it and the score is capped no matter how well everything else scores.
- ROIC ≥ 12.0%
What gets measured
| Criterion | Needs | Weight |
|---|---|---|
| ROIChardAfter-tax operating income over invested capital. | ≥ 12.0%partial credit to 9.0% | 18%Missing: the criterion is skipped and its weight is dropped. |
| Gross marginGross profit over revenue (TTM). | ≥ 35.0%partial credit to 30.0% | 13%Missing: the criterion is skipped and its weight is dropped. |
| Operating marginOperating income over revenue (TTM). | ≥ 15.0%partial credit to 11.0% | 13%Missing: the criterion is skipped and its weight is dropped. |
| Market cap (USD)Market capitalization converted to USD. | ≥ 10Bpartial credit to 7B | 8%Missing: the criterion is skipped and its weight is dropped. |
| Revenue CAGR 3yThree-year revenue compound annual growth. | ≥ 5.0%partial credit to 3.0% | 10%Missing: the criterion is skipped and its weight is dropped. |
Weight is each criterion's share of the whole rule-set, rounded for display. Every figure here comes from the same file the product scores with - the page cannot say one thing while the terminal does another.
What needs judgment
Identifiable moat source
23%Network effects, switching costs, brand, scale economies, regulation - name it and evidence it.
Pricing power evidence
15%Raised prices above inflation without volume loss.
These are the criteria a formula cannot settle. The AI judges them against the guidance above and shows its reasoning next to the verdict; the arithmetic stays with the deterministic rules.
Rules about the portfolio, not the stock
- No single position above 12% of the portfolio.
- No sector above 40% of the portfolio.
These are checked against the book as a whole. A holding can clear every criterion above and still put the portfolio in breach by being too large.
Before you take it as given
This rule-set is a starting point. The moment a portfolio applies it, every threshold, weight and hard line is yours to move - and most people should move them, because the thresholds that make sense for a concentrated book are not the ones that make sense for a wide one.
It has not been backtested and Monsa does not claim it works. What Monsa does is narrower and checkable: hold these rules, and every night it will tell you which of your holdings still clear them and which quietly stopped.
Applying a template takes a minute. The part that is hard to do alone is still being held to it in eight months.