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Buffett focuses on companies with strong competitive advantages from "summary" of Warren Buffett's Ground Rules by Jeremy Miller
Warren Buffett's investment strategy revolves around seeking out companies that possess durable competitive advantages. These competitive advantages come in various forms such as brand loyalty, economies of scale, regulatory barriers, and patents. Buffett looks for businesses that are able to maintain their competitive edge over the long term, allowing them to generate consistent profits and fend off competition. By focusing on companies with strong competitive advantages, Buffett is essentially looking for businesses that have a moat around them. This moat serves as a barrier to entry for potential competitors, making it difficult for others to replicate the company's success. This gives these companies a certain level of insulation from market forces and allows them to maintain their profitability even in the face of economic downturns...
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