As anyone who’s stuck paying an onerous bill to a local internet monopoly will agree, there’s a great market opportunity out there for any company that could offer a global wireless internet connection. SpaceX has been working on just that since 2015, developing a broadband satellite constellation called Starlink. A recent article in SmarterAnalyst proposes that Tesla could be an integral part of the plan.
This story is about Tesla’s moats, but I don’t mean to imply that Buffett would invest in Tesla. Tesla is far from the value investments of the Berkshire Hathaway portfolio. Rather, Buffett’s comments are to demonstrate the importance of moats. Morningstar even has a guide called Why Moats Matter. Understanding the moats a business employs is clearly important to understanding the business and its future.
Two experimental satellites will ride into space this week aboard a SpaceX Falcon 9 rocket. They are “proof of concept” satellites that could lead to a global high speed broadband network in coming years.
