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

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1.
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.
2.
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.
3.
To find out whether a company you are investing in has a deep economic moat, you should look at _______.
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How powerful any one competitive advantage is. This is what depth is about.
4.
Being unable to enter a market because it would cost a huge amount of money just to break into it is an example of _______.
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Threat of new entrants. In this case, the threat is low.
5.
Why is it a good idea to avoid investing in companies that lack economic moats?
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They have few competitive advantages to keep rivals away. The definition of a moat is that of a competitive advantage over other companies.