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Stocks 206: What's behind Economic Moats and Competitive Positioning

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1.
Regarding buying companies that have economic moats, which is probably the more profitable strategy?
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Buying them, holding them for a long time, and then selling them. Given their advantages in their industries, you would likely come out ahead by holding them for a long time.
2.
A company that resides in an industry where wide moats are nearly impossible to create might still have a narrow moat. Such a moat would be of what variety?
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Moat with structural challenges. Due to structural factors, becoming a wide moat is nearly impossible, but the company can still enjoy a narrow moat and still be in a dominant position.
3.
When customers are fragmented and don't have much influence on a product, that is an example of weak _______.
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Buyer power. For the companies producing the products, that is a positive thing, as it strengthens their competitive positioning.
4.
An example of easy entry into a market would be _______.
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A company signing up to become a seller on eBay. Signing up for eBay would be a good example of a new company easily entering the marketplace.
5.
If a company is involved in doing a lot of different things very well, that is a sign that it has a deep economic moat.
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True. In this case, they are really good at more than one competitive advantage.