Does the business have a sustainable edge?
In the long run, stocks with a durable competitive advantage tend to produce multiplying returns for the investors. Buffett describes this advantage as a “moat” around the company that’s hard for competitors to cross.
This competitive advantage could be in the form of a brand that consumers love (such as Coke), or a technology that is hard for others replicate (3M), or very large economies of scale (like Amazon), and so on.
