Sentences with phrase «durable competitive advantage»

The strategy is to select stocks that have strong fundamentals with durable competitive advantages, and enter into positions when the markets provide an opportunity to acquire at favorable prices.
We look for businesses with strong, durable competitive advantages trading at fair or better prices.
These products have created durable competitive advantages for these four companies.
In addition, Connecticut Water Service possesses durable competitive advantages.
«We'll often find opportunity because the markt doesn't look out far enough to correctly value durable competitive advantages» Chris Davis
Tried very hard to select non-name-brand mgrs w / durable competitive advantages Jan 16, 2013
-- Most importantly for a long term value investor, a SWOT analysis can uncover durable competitive advantages or MOAT that can help grow and protect your investments into the future.
Durable competitive advantage of marketing, technology, cultural, or other corporate practices
Many of the best dividend growth stocks generate growing and recurring sales, earnings, and cash flow, which are made possibly by durable competitive advantages that allow a company to protect its margins and returns on shareholder capital over time.
There are many things to look for in your first stock investments, but just to name a few: You'll want to learn basic ways to value stocks, identify durable competitive advantages, and understand how a business makes money.
For example, Warren Buffett found in buying Dexter Shoes that «What I had assessed as durable competitive advantage vanished within a few years.»
A company being popular does not give it a durable competitive advantage.
A major problem with this point is that inexperienced investors often mistake temporary hype with companies that have durable competitive advantages.
A company generating high growth in earnings per share doesn't give it a durable competitive advantage.
Though plenty is going right for Grubhub, its challenge is turning an early lead into a durable competitive advantage strong enough to fend off rivals including Amazon and Uber.
And these businesses should have great fundamentals and durable competitive advantages.
The no - moat firm, in this example, is generating more value for shareholders than the firm with sustainable and durable competitive advantages.
This business is more profitable and more stable than the company's original equipment business, and its branded Parker stores give it a large footprint and durable competitive advantage.
Charlie Munger describes the answer succinctly: «We have to have a business with some inherent characteristics that give it a durable competitive advantage
It also possesses a durable competitive advantage: Going to any other flight - training provider than the best is like taking the low bid on a surgical procedure.
Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers.
Of course, Buffett was making a hypothetical statement, illustrating how to know when a business has a «durable competitive advantage» over others in the same industry.
A company that is said to have an «economic moat» has a durable competitive advantage that protects it from competitors for a long time, much like a moat protects a castle from invaders.
Companies with a durable competitive advantage can generate value for decades, and the market can be so volatile that timing the ups and downs of stocks isn't a great idea for investors.
So long as Wells Fargo maintains its ability to finance loans at a cost less than that of the competition, it has a durable competitive advantage that is unmatched.
Far better to understand the qualitative methods of managers, and analyze whether they have a durable competitive advantage or not.
Companies do not comes with tags saying «Durable Competitive Advantage» and «No Durable Competitive Advantage.»
This is not to say that I am not a fan of larger, well - run businesses with fantastic economic characteristics and durable competitive advantage.
The former part of that statement can be boiled down into making sure a company is within one's circle of competence, sports high - quality fundamentals, and has durable competitive advantages.
In addition, durable competitive advantages should be in place.
Economic moat is a term popularized by Warren Buffett to describe a durable competitive advantage.
2) Buy only great businesses that have durable competitive advantages.
You first want to stick with great businesses that sport high - quality fundamentals and durable competitive advantages.
And these businesses should have great fundamentals and durable competitive advantages.
Buy businesses with a durable competitive advantage 5.
Of equal importance, if you can recognize no - moat businesses that are being priced in the market as if they have durable competitive advantages, you'll avoid stocks with the potential to damage your portfolio.
Factors such as the presence of a stable and attractive industry structure, a durable competitive advantage, and a management team that is both competent and aligned have become much more prominent in my investment process as a result.
These businesses have proven they have a durable competitive advantage that allows them to grow revenue, earnings, and dividends year after year.
Buffett has said that a company that can consistently produce 40 % or greater gross profit margins likely has a durable competitive advantage.
But like Coke in the 1980's, the future is uncertain, but these companies have durable competitive advantages and the balance sheet and cash flow firepower to weather any storm that they face.
The lesson for most of us smaller players is to be aware of how much money is using strategies like ours, and adapt when the space where we thought we had a durable competitive advantage has become crowded.
Sure enough, the authors made sure to create a rule based on this concept: «By only investing in companies with a durable competitive advantage, you also reduce long term risk.
«We have to have a business with some inherent characteristics that give it a durable competitive advantage
Buy businesses with a durable competitive advantage: this advantage can come from being low - cost to having a brand to having captive customers.
The high - quality part might seem obvious — looking for strong fundamentals, durable competitive advantages, and minimal operational risks should clue you in.
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