Wednesday, May 03, 2006

Do All Banks Have Moats? May 3, 2006

You might be surprised to hear that nearly all banks have a sustainable competitive advantage--an economic moat. Warren Buffett and Charlie Munger were surprised, too. Buffett once remarked, "Charlie and I have been surprised at how much profitability banks have, given that it seems like a commodity business."

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All the best,
Dah Hui Lau (David)

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