Sustainable Competitive Advantage

When asked what is the most important thing he looks for when evaluating a company to invest in, without hesitation, Warren Buffett replied, " sustainable competitive advantage".

 

Choosing Stocks to Buy

Yes, business valuation matters, but it is the future growth and prosperity of the company underlying a stock, not its current price, that is most important.

A company's prosperity, in turn, is driven by how powerful and enduring its competitive advantages and competitive strategies are.

 

Warren Buffett advice quotes

Ignore convention. Do not follow the crowd. Ignore the market, the crowd, and its fashions. Do your own research and do it thoroughly.

Warren
Buffet

 

Sustainable competitive advantage and market category leadership give a company the edge that keep competitors at bay and reap extraordinary profits and  growth Download PowerPoint presentation, pdf e-book . Sustainable competitive advantage and market category leadership give a company the edge that keep competitors at bay and reap extraordinary profits and  growth Download PowerPoint presentation, pdf e-book . Warren Buffett seeks to identify rare companies with strong competitive advantage that has a potential to grow even stronger over time.

 

 

Warren Buffett advice quotes

Do not switch holdings frequently. Expect to hold your investments for ever. Do not avoid holding cash.

Warren
Buffet

  

 

Often, investors in high-growth companies are disappointed not because the growth projections were wrong, but because the implicit assumptions that the market is making about the sustainability of these companies' competitive advantages are too optimistic.

 

Warren Buffett advice quotes

Our goal is to find an outstanding business at a sensible price,
not a mediocre business at a bargain price.

Warren
Buffet

 

 

Warren Buffett said it best in his Fortune article: "The key to investing is not assessing how much an industry is going to affect society, or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them are the ones that deliver rewards to investors."