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Businesses – The Great, the Good and the Gruesome
When evaluating businesses, it’s essential to recognize which ones create lasting value and which ones struggle to stay afloat. Inspired by Warren Buffett’s insights, let’s break them down into three categories: The Great Business A great business has a strong competitive edge—what Buffett calls a “moat”—that protects its profits. This could be a globally trusted…
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What Is Your Moat?:
What Is Moat? “A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital. The dynamics of capitalism guarantee that competitors will repeatedly assault any business ‘castle’ that is earning high returns. Therefore, a formidable barrier such as a company’s being the low-cost producer (GEICO, Costco) or possessing a powerful…