Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

In his book Living on the Fault Line, Revised Edition : Managing for Shareholder Value in Any Economy, Geoffrey Moore assists in the understanding of capital flows to companies that have a competive advantage.  The book offers insight on executive thinking when tactics are endorsed within a company.

The stock market is an information system on competitive advantage.  Investors, by where they put their capital, help sort which markets to attack, which strategies to pursue, which partners to endorse.

Pick markets based on the size of their untapped potential, not their total size.  Having a strong position in a small market is more valuable for future advantage than a weak position in a large market.

Stock prices are not measures of past performance, they measure future potential based on the competitive advantage a company has in the present.