Crossing Your Fingers: The Best Way To Identify Stocks With Competitive Advantages

Crossing Your Fingers: The Best Way To Identify Stocks With Competitive Advantages by Mitchell Mauer

This article appeared first on The Stock Market Blueprint Blog.

When selecting a long-term stock investment, most investors take a page out of Warren Buffett’s playbook and look for companies with strong competitive advantages. History has shown that the odds of identifying such advantages are no better than the flip of a coin.

[buffett]

Protecting the Castle

A competitive advantage is one of the most sought after characteristics of any long-term investment. Wall Street analysts grade stocks almost exclusively on the strength and sustainability of a company’s competitive advantage. Value investors demand stocks that have track records of fending...