What does it mean for a company to have a "durable moat" in the context of value investing?

In the context of value investing, a "durable moat" refers to a company's sustainable competitive advantage over its competitors. This term is often used by Warren Buffett, who looks for companies with wide, durable moats when investing. These moats can be in the form of brand recognition, patents, cost advantages, or efficient scale. A durable moat helps protect a company's profits and market share from competitors, thus making it a potentially good investment.

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Companies that have potential but just don't seem exciting you can put in your 'watching' pile – get back to them later after you're more adept at being a value investor. Very few companies will make it onto your wishlist, but that's OK. Remember: you're looking for a handful of companies that you are capable of understanding; that have durable moats; and that have management with integrity and talent.

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