Why investing in MOAT business is important in stock market
Hello friends lets understand another topic on investing Why investing in MOAT business is important in stock market In business, a "moat" refers to a company's competitive advantage that protects it from rivals, ensuring its long-term profitability and market share. The term, popularised by Warren Buffett, draws an analogy to a moat surrounding a castle, providing a defence against attackers. A strong moat makes it difficult for competitors to erode a company’s market position or profits. Companies with strong moats often enjoy sustained growth and profitability, making their stocks attractive for long-term investment. *Types of Moats* 1. Cost Advantage Companies that produce goods or services at a lower cost than competitors can offer competitive pricing, deterring rivals. *Example*: Walmart, with its efficient supply chain. 2. Network Effect The value of a product or service increases as more people use it, creating bar...