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