Look for companies with strong competitive advantages from "summary" of Buffettology by Mary Buffett,David Clark
When seeking out potential investments, it is crucial to identify companies that possess strong competitive advantages. These advantages give companies a leg up on their competitors, allowing them to maintain market share, generate consistent profits, and fend off threats to their business. Competitive advantages can come in many forms, such as brand loyalty, economies of scale, proprietary technology, or a strong distribution network. Companies with strong competitive advantages are able to charge higher prices for their products or services, as customers are willing to pay a premium for the value they offer. This pricing power helps these companies maintain healthy profit margins, even in the face of economic downturns or competitive pressures. Additionally, strong competitive advantages act as a barrier to entry for potential competitors, making it difficult for new entrants to break into the market and steal market share. Warren Buffe...
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