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The Motley Fool defined an economic moat as “a sustainable competitive advantage that protects a company’s market position and profitability from rivals.” Ultimately,...
Feb 6, 2020 · Buffett on the moat. Buffett explained his moat principal at the 1995 Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) annual meeting of shareholders. "What we're trying to do," he said, answering a ...
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- What Does Berkshire Hathaway do?
- What Is Berkshire Hathaway’s Competitive Advantage?
- Who Are Berkshire Hathaway’s Competitors?
- What Are Berkshire Hathaway’s Weaknesses?
- What Are Berkshire Hathaway’s Growth Opportunities?
- Conclusion
Berkshire Hathawayis an American multi-industry holding company headquartered in Omaha, Nebraska. The company wholly owns Fruit of the Loom, BNSF Railway, Lubrizol, Dairy Queen, and GEICO, amongst others. It also is the third largest shareholder of Apple, after Vanguard and Blackrock, and the largest shareholder of Coca-cola, Bank of America, Ameri...
Diversified Portfolio Berkshire Hathaway’s portfolio includes businesses in a wide range of industries, including insurance, finance, energy, transportation, and manufacturing. This diversification strategy helps to insulate the company from the risks associated with any one industry or product. If one industry or product line experiences a downtur...
Among Berkshire’s subsidiaries, many competitors are competing for their market share. For example, GEICO, one of Berkshire’s largest holdings, operates in the fiercely competitive world of insurance. Its main competitor is Progressive, whom GEICO has lost market share due to its strong focus on online sales. Buffett has even said Progressive is ve...
Although Buffett and Munger are incredible investors, they are also in their 90s. The big question is, have they sufficiently trained up their successors to be able to continue the same culture and skill that the current operators have built up. While the company culture is more durable, having a chairman that is able to replicate Buffett’s track r...
As mentioned above, having new management may bring different growth opportunities for Berkshire. Buffett has famously stayed clear of technology as he does not understand it. However, many of the big tech stocks have evolved to become more than just technology companies and still have great potential for growth ahead of them. Buffett invested in A...
Berkshire Hathaway’s competitive advantage is built on a range of factors, including its diversified portfolio, focus on long-term value creation, sound financial management, and strong culture and reputation. These factors have enabled the company to generate consistently strong returns over the long term and to weather economic downturns with rel...
Mar 26, 2019 · Below I list some typical businesses invested/acquired by Berkshire along with what constitutes the economic moat to protect each business: Subsidiary/Investee Economic Moat
Mar 8, 2024 · The term “economic moat,” derived from the water-filled trenches that surrounded medieval castles to protect them from invaders, is a key concept in Buffett’s investment philosophy. It refers to a business’s ability to maintain a competitive edge, to protect its market share and profitability from rival firms.
Apr 29, 2019 · April 29, 2019. - By Liang Chen. Overview. By safeguarding against the law of mean reversion, a wide moat around a highly profitable business castle helps lower the investment risk and keep up a...
Feb 9, 2024 · Performance of Selected Wide-Moat Stocks. Data as of Feb 8, 2024 Source: Morningstar Direct. What Is an Economic Moat? Morningstar’s economic moat rating assesses a company’s ability to...
