03- Finding a Competitive Advantage

What truly sets great businesses apart from the crowd? Legendary investors like Warren Buffett know the answer: a company’s competitive moat. This concept might seem straightforward, but there’s more to it than just having a unique competitive advantage. However, recognizing which real-world businesses have that lasting advantage takes insight and discipline. So, what actually creates moats in business? How can you spot one and truly practice mindful investing?

In this episode of the InvestED Podcast, Phil and Danielle Town explain how to spot a durable competitive advantage, or what Buffett calls a “moat.” They walk through the five key types of business moats, sharing what makes each one powerful and unique. Drawing on Buffett’s time-tested investing principles, Phil and Danielle reveal why some brands endure. They also show how legal protections safeguard profits and how switching costs help keep customers loyal. With Phil’s practical wisdom and Danielle’s legal expertise, they make these concepts simple and actionable.

Knowing how to find companies with a true competitive moat is a cornerstone of Rule #1 investing. These are the businesses built to weather market storms and deliver steady, long-term value. Tune in to learn how to spot these rare companies—and start building a more resilient investment portfolio.

Here are three reasons why you should listen to this episode:

Discover the competitive moats that set great businesses apart from their peers.

See how to align your investments with your values.

Get actionable insights from Charlie Munger’s timeless investing wisdom and learn how to put them to work in your portfolio.

Resources:

Rule #1s "InvestED" Podcast and Website: Website | Apple Podcast | YouTube

Visit Rule #1 for more investing resources: Website | Facebook | LinkedIn | X (Twitter) | Instagram

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