MICHEL PIREU: Long-term competitiveness and stock-picking
How a company can continue to give good returns to investors for years to come depends on how it fares against five forces of competition
In a 1999 interview with Fortune magazine, Warren Buffett coined the term “economic moats” to sum up the main pillar of his investing strategy.
“The key to investing,” said Buffett, “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”