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All articles by Chris Mallon -
If you've ever listened to Warren Buffett talk about investing,
you've heard him mention the idea of a company's moat. The moat is
a simple way of describing a company's competitive advantage. A
strong competitive advantage, or a wide moat, gives a company
sustainability, which, as investors, we're highly interested
in.
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If you've ever listened to Warren Buffett talk about investing,
you've heard him mention the idea of a company's moat. The moat is
a simple way of describing a company's competitive advantages.
Company's with a strong competitive advantage have large moats, and
therefore higher profit margins. And investors should always be
concerned with profit margins.
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