Understanding a company's economic moat is a core part of investing. While pure monopolies are hard to come by, there is a compelling duopoly in one of Australia's favourite sectors: Property.
The smaller of these two players, Domain Holdings (ASX: DHG), has released a favourable result with key earnings figures sitting above consensus. In doing so, it reaffirmed its potential of seizing further market share from premier player REA Group (ASX: REA).
The key investment thesis is that it is a high-quality, high-growth business that operates in probably the most attractive industry sector in Australia - housing. Its capital-light business model means it offers a high return on shareholder equity and invested capital.
In this wire, Jun Bei uses a question-and-answer format to explore the key learnings from Domain's August report, what investors need to pay attention to and assess the outlook for this user favourite.
Read the full article on Livewire here.