Free Daily Reads 2022: Article 352

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Article Title: Challenging Warren Buffett’s investment style


Article Summary

The article is about the influence of various strategies of investment. The risk taking strategy of Elon Musk and the stable economic moat based strategy of Warren Buffet is actually taken into comparison here. Elon Musk does not believe that the economic moats can give a market advantage every time. Such business firms can be overpowered by a better product, says Musk. Warren Buffet on the other hand does not believe in investing in the firms which do not have durability with its products or service. He also suggests that the investment made should be for a company with a competitive advantage. This has made him stay away from technological investments because of the fast changing environment of such fields. Contrary to this nature, he has invested in Apple because of its extraordinary customer franchise. The moat has got its ups and downs according to the author. In a changing business environment it is not easy to make a decision by using reasonable valuations.

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Words to learn from this Article:

Moat: a deep trench filled with water and mud around a castle.

Ponder: think about something deeply before making a decision

Emulate: match or surpass

Preclude: prevent from happening

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