When a new investor starts his journey in picking stocks, very often no thought process is given to the economic moat or management quality of the company. What is economic moat? An economic moat is a concept popularized by Warren Buffett, describing a company's sustainable competitive advantage that allows it to maintain its market position and fend off competition. Similar to a castle's moat protecting it from invaders, an economic moat protects a company from competitors trying to erode its profits and market share. There are several types of economic moats that can contribute to a company's competitive advantage: Cost Advantage: When a company can produce goods or services at a lower cost compared to its competitors. This could be due to proprietary technology, efficient processes, acc
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