Investment News’ Gregg Greenberg asked for HVP’s take on how electrification and EVs change the case for investment in the auto sector. Competitive dynamics are at the core of how we evaluate businesses and are factors in determining whether a company is one of the “franchise businesses” that we seek to own in portfolios. Franchise Businesses tend to have strong competitive advantages, high switching costs, higher returns on equity, and dominant positions in their industry. In a fragmented market like global autos, it is hard for even the best carmakers to reach these standards. You can read more about what Franchise Businesses mean to us in our whitepaper on the topic.
April 18, 2024
Investment News: EVs & Electrification
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