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Borsgade
Amy Arnott from Morningstar has recently written an interesting article on the attributes that make a ‘Buffett company’ (available for free on their page).
If you ask Amy (.. and Buffett) a great company has five major characteristics:
Above all else, Buffett looks for companies with a durable competitive advantage, or economic moat. Just as a circle of water or dry land protects a castle from intrusion, an economic moat protects a company from being encroached on by competitors. In his extensive letters to shareholders over the years, Buffett has discussed several key moat sources, including a low cost of production, economies of scale, unique products that competitors can’t replicate, exceptional distribution systems, and a strong brand identity.
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