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2016-04-26

2016-04-20

  • vgm commented on Mitchell Mauer's article 04-20 17:36
    Crossing Your Fingers: The Best Way to Identify Stocks With Competitive Advantages
    When selecting a long-term stock investment, most investors take a page out of Warren Buffett (Trades, Portfolio)’s playbook and look for companies...
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    vgm 04-20 18:36
    • Mitchell,

      Thanks for a stimulating article.

      Buffett is of course the person we look to in the matter of moats. This quote from his 1990 Letter suggests that it is possible not only to identify competitively-advantaged companies, but that the moat can be measurably increased. However (and consistent with comments above) it's not a given and needs monitoring:

      "We do not measure the progress of our investments by what their market prices do during any given year. Rather, we evaluate their performance by the two methods we apply to the businesses we own. The first test is improvement in earnings, with our making due allowance for industry conditions. The second test is whether their moats (competitive advantages) have widened during the year."
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