Consider the economic moat of a company from "summary" of Buffettology by Mary Buffett,David Clark
An economic moat is the factor that gives a company a competitive advantage over others in its industry. It is like a protective barrier that helps the company maintain its profitability and market share over the long term. Warren Buffett emphasizes the importance of considering the economic moat of a company before investing in it because a strong moat can lead to sustained success and growth.
There are different types of economic moats, such as brand recognition, economies of scale, network effects, switching costs, and patents or proprietary technology. These moats make it difficult for competitors to enter the market or take market share away from the company. Companies with wide economic moats are more likely to generate high returns on invested capital and deliver consistent profit...
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