IFB196: Investing in Companies with Wide Moats

Welcome to the Investing for Beginners podcast. In today’s show we discuss: *  Best way to think about moats and their impacts on business* Some ways to find moats, plus ideas about protecting those moats* Impacts of moats, plus buying beyond the best business, price you pay matters. For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com SUBSCRIBE TO THE SHOW Apple | Spotify | Google | Stitcher | Tunein Transcript Announcer (00:02): I love this podcast because it crushes your dreams and getting rich quick. They actually got me into reading stats for anything you’re tuned in to the Investing for Beginners podcast led by Andrew Sather and Dave Ahern with step-by-step premium investing guidance for beginners. Your path to financial freedom starts now. Dave (00:32): All right, folks, welcome to Investing for Beginners podcast. Tonight. We have episode 196, and tonight we will return to answering some great listener questions that we got recently. So I’m going to go ahead and read the first question I have. Hi Andrew. Thank you for all the work you and Dave put into their podcast. It’s great to have a rational voice, emphasizing the need for value investing in a field whose boots swings harder than Mr. Market. My question for you both is about the concept of economic moats. Thanks to your explanation of Buffett’s concepts. I understand to finding a great company with a wide moat is essential to value investing, but it seems like the concept of a moat can be a bit abstract for newcomers into investing. I’ve been trying to think of businesses synonymoatus with an industry like Google for search engines. Is there a formula or ratio to look for that would help someone researching a company to find the potential for a wide moat? Thank you for your help, Sam. So Andrew, what are your thoughts on Sam’s really good question. Andrew (01:33): So let’s start with maybe some of the beginner kind of explanation of what the moat is. So if you know, if you can picture a moat, basically let’s go back to the middle ages of the times when they had castles. And, back then, there was a lot of violence. People always want to steal your stuff. So you would build a castle and build really big walls to keep invaders away and be able to protect everything youR...