Daily Insider: Warren Buffett on how any business can widen its moat.

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Much of my 2016 book on How to invest like Warren Buffett is timeless. Mostly because it draws on shareholder letters and comments at AGMs by the Oubaas of Omaha. A lot of it is deeply embedded into my memory.

Including one which I pull out up often: Buffett’s advice on how to create a sustainable, winning business. Sheer genius: “Every day, in countless ways, the competitive position of each of our businesses grows either weaker or stronger. If we are delighting customers, eliminating unnecessary costs and improving our products and services, we gain strength. But if we treat customers with indifference or tolerate bloat, our businesses will wither.

“On a daily basis, the effects of our actions are imperceptible; cumulatively, though, their consequences are enormous. When our long-term position improves as a result of these unnoticeable actions, we describe the phenomenon as ‘widening the moat’.

“Doing that is essential if we are to have the kind of business we want in a decade or two from now. We always hope to earn more money in the short term. But when short-term and long-term conflict, widening the moat must take precedence.” Note to self: get that silk-screened and prominently displayed as a permanent reminder.

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