Remember the childhood science experiment of burning paper with a magnifying glass. It was fun creating fire without matches. It was, of course, no wizardry. It was all about focusing the sunlight using magnifying glass. Focus is a powerful trait and together with specialisation, it can create extraordinary and durable competitive edge for businesses. Durable competitive advantage or moat, as it is called, can help create superior economics in businesses, meaning high pricing power, sticky and predictable revenue streams with fabulous free cash flows. Such businesses usually come with superior margin profile and high return metrics measured by return on equity (ROE) and return on capital employed (ROCE). They don’t guzzle capital to fund the growth because of free cash flows, and, usually, depend less on debt to fuel their growth.