Sustainable Competitive Advantage or as Buffet calls them "Moats". Moats can come from a combination of:
- Supply side economies of scale
- Demand side economies of scale (network effects)
- Brand
- Regulation
- Intellectual property
The evidence that a moat exists is pricing
power. If pricing power is dropping the moat is shrinking.
BillG -"Intellectual property has the shelf life of a banana".
If the source of the pricing power is hard to
identify, the source is usually brand.
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