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Friday, 1 January 2016

ECONOMIC MOAT

by: MisS VictoriA DaviD

 

If you want to become a successful investor, analysing and being sagacious when buying shares in a company on the market is a cunning attitude. And, if you have vision plans to earn more money rather than to loss a lot of your savings, you should also scrutinise each company that sells shares on the market before committing yourself.

It is very common to all investors to read about the company thoroughly and also, to learn more opinions from the experts (seniors) who are now sharing their own good and bad experiences about the market on the web and written in numerous 'money' magazines. Moreover, a direct way to identify if a firm(s) has strong defences against economic crises is by knowing its economic moat.

According to the third wealthiest man in the world, Warren Buffet, the term economic moat refers to a business ability to maintain competitive advantages over its competitor in order to protect its long term profits and market share from competing firms.

*Photo from INKCINCT CARTOONS

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