In value investing, a strong and durable moat refers to a company's ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms. It's significant because it helps the company to sustain its profitability and growth, which in turn increases the value of the company's stock. A strong moat is often a sign of a good investment.

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For a strong and durable moat, each of these four numbers should be growing at 10% or more every year. Periodic ups and downs are not a problem, as long as the trend over time is for steady growth. When there is a down year in any of the four numbers, check to see what the reason was and how quickly the company got back on track.

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Yes, there are numerous examples of companies that have quickly recovered from a down year in their growth trend. For instance, Apple Inc. had a significant downturn in 2016, but quickly recovered in 2017 with the release of new products. Similarly, Microsoft had a down year in 2015 but bounced back in 2016 due to its successful transition to cloud-based services. It's important to note that recovery often depends on the company's ability to innovate and adapt to market changes.

Investors might face several obstacles when applying the 'moat' concept. One of the main challenges is identifying a true economic moat and differentiating it from a temporary competitive advantage. This requires deep understanding and analysis of the company and its industry. Another challenge is that even companies with strong moats can face disruption from technological changes or shifts in consumer behavior. To overcome these obstacles, investors should conduct thorough research, stay updated with industry trends, and diversify their portfolio to mitigate risks.

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