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What is an economic moat
and why is it important?
//A Thread//
and why is it important?
//A Thread//
The term "economic moat" was coined by the brilliant investor Warren Buffet
In Mid-evil times, Moats surrounded a castle and were used to defend against attack
Economic moats don't take this concept literally but it's just as powerful
Moats in this context are used to protect a company from outside competitors
A very strong example is $AAPL
Moats in this context are used to protect a company from outside competitors
A very strong example is $AAPL
$AAPL's Economic Moat
- Award winning Products/Services
- Award Winning Customer Service
- Attractive Operating System
- A strong emphasis on Privacy
- A commitment to the environment
Did i miss anything?
- Award winning Products/Services
- Award Winning Customer Service
- Attractive Operating System
- A strong emphasis on Privacy
- A commitment to the environment
Did i miss anything?
As an investor you're apart of the company's castle
if your company doesn't have a great Moat then another business may come along and do better
Examples:
- Blockbuster - Netflix
- Toys R Us - Amazon
- Circuit City - Best Buy
- Kmart - Walmart
if your company doesn't have a great Moat then another business may come along and do better
Examples:
- Blockbuster - Netflix
- Toys R Us - Amazon
- Circuit City - Best Buy
- Kmart - Walmart
Make sure you do your own research before buying a company!
To learn more checkout "Investing made easy" by @DecadeInvestor
https://gumroad.com/a/862581875
To learn more checkout "Investing made easy" by @DecadeInvestor
https://gumroad.com/a/862581875
