Charlie Munger: He Who Has a Moat Has the World
You’ve been investing for a long time. Why haven’t you made much money? The reason very likely lies in the moat. You know to invest in highly profitable companies. That’s not wrong. But when competitors see it, they also want a piece of the pie. What follows is an increase in product supply, falling prices, and thinning corporate profits. Such a company has no moat. If you invest in these companies, it’s no surprise you don’t make money. ...