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5 Cards in this Set

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  • Back
What is an economic moat?
the ability of a company to keep "competitors from attacking a firm’s profits"
Why is it difficult to remain profitable in a free market economy?
because profitable firms attract competition that eventually erodes the company's profits
What is the margin of safety?
the difference between the market’s price and your estimate of what the company’s worth
For shakier firms, you should use a ________ margin of safety.
large
For solid firms, you can use a relatively ________ margin of safetly.
small