Economic Moat/Competitive Advantage

In general, there are five ways that an individual firm can build sustainable competitive advantage:

• Creating real product differentiation through superior technology or features
• Creating perceived product differentiation through a trusted brand or reputation
• Driving costs down and offering a similar product or services at a lower price
• Locking in customers by creating high switching costs
• Locking out competitors by creating high barriers to entry or high barriers to success

Source: The five rules for successful stock investing by Morning Star

每一次买一家公司股票前，尝试先问一问自己那家公司是不是也有其中一种优势？