When you’re shaping your own personal financial planning, it’s easy to get lost in the weeds. We’re all looking for the same thing: a business that’s not just in a big, growing market, but one that has a clear edge over its competition. This edge is what allows a company to consistently grow its sales and profits for years. Finding the right framework is a crucial part of any best investment strategy.
Like many investors, I started as a loyal student of the Warren Buffett school of thought. The approach was sound: find mature, dominant businesses with protective moats. But as I dove deeper into the business models of modern tech giants, a question started nagging me: Did I have to settle for the slow-and-steady franchises that defined the Warren Buffett investment strategy?
An old investment story tells you everything you need to know about the evolution of making money in the stock market. It starts with a man named Benjamin Graham at a shareholder meeting for Northern Pipe Line. He put forward a motion to return excess cash to stockholders—and was met with complete silence. The motion failed, and the meeting ended.