if we focus on competition, we can be far from valuation complex which normally attract us. remember the data in financial report show a competitive positioning and an industry demand at a time financial report is made. but both competitive positioning and industry demand change, the first more stable ,the second more dynamic.

it is the second, industry demand, which affect stock prices most because it is dynamic .

but it is the first, the competitive positioning which format our investment dicision.

the takeaway is we analyse competitive positioning first, find out the companies with good competitive positioning and after this job, we analyse industry demand. we can react to changes in industry demand rather quickly to buy in and sell our stocks.