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Old 03-13-2005, 03:14 PM  
azguy
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Join Date: Nov 2004
Location: Scottsdale, AZ
Posts: 5,167
The reason is usually a low economic moat, a term once coined by Warren Buffet...

The wider the moat, the larger and more sustainable the competitive advantage. By having a well-known brand name, pricing power, and a large portion of market demand, a company with a wide moat possesses characteristics that are barriers against other companies wanting to enter into the industry.
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