Agreed that their strong competitive advantage is relatively well known, but I think there are some advantages:
1. Not as widely know as the obvious big moats like Google, Microsoft, Facebook, Adobe, etc. those big names face legislation, fines, and people objecting against their moat. There seems to be a weekly article about how damaging their “monopoly” is
2. Although ADSK’s moat is known, I don’t think the market understands how strong the moat is. I personally think it is beyond Microsoft’s and Adobe’s moat for example. There are multiple decades invested in that software and it has a runway adoption of multiple decades going forward. I use Autoddsk, Adobe and Microsoft software - it would take a lot for me to switch from Word and Excel and Photoshop….but can’t even imagine switching Autodesk, it’s nearly impossible at this point for a lot of projects.
3. for both Autodesk and Tyler - they’re both involved in Public Agency adoption. That process - like Munger has said - has such a slow adoption rate - and once adopted it’s a much slower rate of change. Public agencies move very slow and have very high bureaucracy.
That’s why I’m invested. Always looking to be proven wrong!