Question
The story of Coca-Cola illustrates the concept of a company's 'moat' through its unique brand and recipe which are difficult for competitors to replicate. This creates a protective barrier or 'moat' around the company's market share and profits. Additionally, Coca-Cola's extensive global distribution network also contributes to its 'moat', making it challenging for competitors to reach the same level of market penetration.
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Coca-Cola's story gives a sense of what its moat is like, but the best way to really judge a company's moat is by looking at some key numbers on its financial statements. All public companies have to file these statements according to a set of accounting principles (although there may be some variation in the precise terminology used).
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