This is one of the most essential keys to the buy-and-hold investment strategy: looking for companies with sustainable competitive advantages. The only way a trading strategy like this works is if the companies you buy – which, remember, you may hold for decades – have what Buffett calls "moats," or sustainable competitive advantages that competitors can't mimic.
Take Coca-Cola (KO), for instance. One of Buffett's most successful investments ever, Coca-Cola enjoys a patented secret recipe and over 100 years of branding that no upstart soda company will ever be able to match overnight.
Source: MSN Money
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