Invest in businesses with a competitive advantage from "summary" of Common Stocks and Uncommon Profits by Philip A. Fisher
One of the key principles for successful investing is to identify and invest in businesses that have a competitive advantage. A competitive advantage can come in many forms, such as superior products or services, strong brand recognition, economies of scale, proprietary technology, or a unique business model. Companies with a competitive advantage are better positioned to outperform their competitors and generate sustainable profits over the long term. They are able to defend their market share, command higher prices, and attract and retain customers more effectively than their rivals.
When evaluating potential investments, it is important to assess the strength and durability of a company's competitive advantage. A strong competitive advantage can provide a company with a moat that protects it from competition and helps it maintain its market leadership.
Investors should look for companies that have a track record of innovation and a culture of continuous improvement. These companies are more likely to adapt to changing market conditions, stay ahead of the competition, and maintain their competitive edge over time.
By investing in businesses with a competitive advantage, investors can increase their chances of earning above-average returns and building wealth over the long term. It is important to take a long-term perspective when evaluating investments and focus on companies that have a sustainable competitive advantage that will continue to drive their success in the future.
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