Microsoft is rated A tier, passing most tests with high quality business and growing Azure, though considered to have a slightly weaker moat than Google and Amazon, particularly regarding AI.
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Does Joseph Carlson Practice What He Preaches? (Ranked)
Investing Moats with VarunMay 7, 2026
The creator reviews Joseph Carlson's stock picks against his own criteria, evaluating Meta, Mastercard, Costco, Netflix, Intuit, Alphabet, and Duolingo. Mastercard and Alphabet are highlighted as strong performers within Carlson's framework, while Meta and Netflix are also highly rated. Costco and Duolingo receive lower grades due to framework fit, and Intuit is viewed with caution regarding its consumer business. This analysis evaluates Joseph Carlson's stock portfolio against his own investment framework, grading companies like Duolingo (D tier), S&P Global (A tier), Moody's (S tier), ASML (A tier), Amazon (A tier), Texas Roadhouse (B tier), and Microsoft (A tier). The creator highlights the importance of temperament and adherence in investing, suggesting that Carlson excels at building a portfolio that matches his personal style and allows him to hold through market volatility.
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Tickers discussed in this post
Texas Roadhouse receives a B tier, fitting an Acumen-style restaurant play with predictable unit economics from organic growth, despite not meeting the monopoly or capital light criteria.
Amazon is graded A tier despite failing the capital light test, as its significant reinvestment in infrastructure is seen as widening its moat and positioning it as a major AI winner in the physical world.
ASML is considered an A tier company due to its literal monopoly in advanced chip manufacturing equipment, but is not S tier because it is cyclical and capital intensive.
S&P Global is graded A tier due to its regulatory duopoly in credit ratings and strong operational metrics, though its recent large merger with IHS Market is noted as a reliance on acquisitions for growth.
Duolingo receives the lowest grade due to concerns about its total addressable market shrinking with AI translation advancements.
Alphabet is rated A tier, considered an S tier moat business, due to its data advantage, elite engineering talent, strong AI research, and YouTube's reach.
Intuit is placed in the C tier due to concerns about AI eroding its consumer tax prep moat and reliance on acquisitions over organic growth.
Netflix is rated A tier for its strong operating leverage, global subscriber base, and unique position as a destination for time, despite not being a monopoly.
Costco receives a B grade on Joseph's framework due to its business model not fitting the 'capital light' criteria, despite being an S tier business quality.
Mastercard is an S tier pick due to its duopoly in card transactions, strong pricing power, operating leverage, and capital-light, organic growth model.
Meta is rated A tier due to its strong advertising business and ecosystem, despite high capex and unpredictable ROI on Reality Labs.