Now if a company has some proprietary products, technologies or methods that give it a
sustainable competitive advantage, that
multiple can rise — AFLAC might be an example of that.
All this raises the question: if I'm reasonably assured of good long term returns with Graham's mechanical quant approach (based on extensive backtesting by
multiple authors including Ben Graham, Tobias Carlisle, Joel Greenblatt, James Montier, etc.), then why would I jeopardize these reasonably assured good returns — and risk incurring unrecoverable opportunity costs over my limited lifespan — by following a concentrated approach that depends on subjective, accurate assessments of
sustainable competitive advantage?