Welcome To The Long Wealth Newsletter (August 6th). (est. 4 min read)

In today’s newsletter we will go over:

• What is a MOAT?

• Breaking down Companies’ MOATs

• And much, much, more..

Actionable Tip Of The Day

Before you invest into a stock, understand their MOAT.

A Moat is a company’s competitive advantage that protects it from competitors.

This allows a company to maintain its market position and profitability over time.

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Deep Dive

Let’s go deeper here.

Here’s why we want to find company’s with a great MOAT:

• It makes it difficult for competitors to replicate the company's success or take away its customers.

• It gives a business a long-term edge over its competitors, allowing it to protect its market share and profitability.

• It can lead to sustained profits and market dominance, making the company a potentially attractive long-term investment.

Here are some examples:

Coca Cola

• Their MOAT is there BRAND.

Amazon

• Unmatched e-commerce and delivery infrastructure. (You can literally get packages in the next day)

Meta (Facebook)

• They have something called the Network Effect.

This basically means the more users a social network has, the more valuable it becomes for each user.

This network effect creates a significant barrier to entry for potential competitors.

New social platforms struggle to offer the same value because they lack the established user base and content ecosystem that Meta has built over time.

This is why Meta's network effect is considered one of its strongest competitive advantages or "moats."

Talk soon.

Darold Trinh

Long Wealth Newsletter

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