Run back through your day and count the companies you used without really choosing to. Maybe the alarm went off on an iPhone. You've thought about switching, then remembered your photos and your group chats live there. So you stay. 📱 At work it's Excel. Nobody loves it. But every file the office has ever made is in it, so nobody's leaving. You googled something without deciding to google it. And tonight there's a decent chance you order off Amazon, because it shows up tomorrow and the other store takes a week. Investors have a word for that grip: a moat. Buffett made it famous. Picture the water around a castle, keeping everyone else out. Today's came in a few flavours: the pain of switching ($AAPL, $MSFT), plain habit ($GOOGL), and a size nobody else can match ($AMZN). The Canadian classic is a railway. Nobody's building a new one across the country. Why a beginner should care: a moat is what lets a company raise prices, or have a rough year, and still keep you. It's a big part of why some names stay on top for so long. It cuts both ways though. A wide moat doesn't make any price a good price, a great business can still be an expensive stock. And moats drain. Ask anyone who owned a BlackBerry. 👀 Which company would you keep paying even if the price went up tomorrow? Educational, not financial advice. Just my read.
1,670 views
9 Comments
Nate
@hoodnate · 17d
This is such a good way to explain moats. The Excel example hit home, I complain about it but would never switch. For your question, probably my phone plan.
Jon Snow
@jsnow10 · 16d
Add $META as well in this list. You can’t live a day without using Instagram and WhatsApp. Everyone try to replicate them just to fail eventually.
David Monroe
@d0p3y71 · 16d
I’m paying top dollar for AMZN , GOOG, and NVDA. The more I can snatch up the better I feel.
Scott Ewing
@guswing · 17d
Adding Costco to that list, absolutely love that company
See the full comment section 👀Sign up for the full Blossom experience!
