- Good long-term investments can only come from companies that possess durable competitive advantages.
- I’ll mention 6 things to watch for when looking for a durable competitive advantaged.
- Today’s tech companies don’t have large moats, but this doesn’t mean you shouldn’t invest in them.
Warren couldn’t really compete with the hysteria surrounding dot-com stocks and his performance in 1999 was a mere 0.5% increase in book value while the S&P 500 was exploding. This was due to several of his investments lagging the market due to lower operating earnings. Nevertheless, Buffett mentioned in his 1999 letter to shareholders how he was still happy to hold onto those companies because over time, he believed his businesses would do better than the S&P 500. More →