Feature

Moats Versus Boats - Part 4

Value investor Raamdeo Agrawal on his understanding of a economic moat

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Published 7 years ago on Mar 31, 2016 3 minutes Read

I am a CA by education and have been buying stocks since 1980. During those days, books on investing were almost zero. I didn't know about Warren Buffett till 1994 and got to know about his annual reports at the same time. Sanjoy Bhattacharyya first told me about him and gave me a few physical copies of the reports. After I read through them, it was as if a light switch had flipped on. Buffett advocated focusing on the economic moat rather than earnings per share. That seemed like pathbreaking wisdom. Ever since, I became his disciple and have been trying to understand what he does in depth. One of his favourite quotes is, "Great companies are like wonderful castles with deep dangerous moats."