Everyone talks about Warren Buffett’s best investment:
See’s Candies.
Why?
The moat.
A powerful brand.
Pricing power.
Loyal customers.
But here’s the problem…
Most investors talking about moats have never walked into a See’s store, bought the candy, or experienced why customers choose it.
A moat isn’t a number on a spreadsheet.
A moat is human behavior.
And human behavior changes.
20 years ago, investors would have said Nike
$NKE had an unstoppable moat.
Disney had an unstoppable moat.
$DIS
Both are incredible companies.
But great companies don’t automatically create great investments.
The question isn’t:
“Does this company have a moat?”
The question is:
“Is the moat widening, and am I paying a reasonable price?”
That’s why I focus on more than brands.