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Find Winning Stocks with Warren Buffett’s Secret Weapon – A Durable Competitive Advantage

Every day millions of stock traders are looking at stock prices, stock trends, company balance sheets to figure out how to find winning stocks to trade. It is not so easy to do and often times using this data forms no more than a hunch which can be financially disastrous. So how do you avoid this trap? Some experts believe in selecting stocks that have a high Durable Competitive Advantage.

Looking for durable and sustainable competitive edges in stocks.

Looking for durable and sustainable competitive edges in stocks.

What is a so called Durable Competitive Advantage (sometimes referred to as Sustainable Competitive Advantage)? It is when a unique new technology or technique is discovered by a company that it rights are protected in such a way that no other company will be able to duplicate it, match its price point, or acquire the use of the technology for the foreseeable future. Often times this is the result of such things as patents and trademarks, and in turn assures that the company’s stock has a higher than normal chance to increase in value and produce better than average shareholder earnings over a LONG PERIOD OF TIME. It is more often than not associated with progressive smaller type companies because larger heavily capitalized companies are expected to do these types of things on a routine basis by those that invest in them.

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When Things Don’t Align, This One Signal Will Help You Make The Right Entry

 

Most stock trading methods lay out for you a number of fundamental and technical factors that should be in place before taking a trade but often the stars are not always aligned in the stock market. While you certainly want to see as many key factors in your favor, it can be confusing as to what to do when certain factors don’t materialize. For example, during a breakout, you want to see at volume spike higher as the stock breaks through its buy point but what do you do if that doesn’t happen?

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Alibaba, Hype, IPO’s

Is Alibaba’s IPO fueled by a bunch of hype or will the stock take off?

JD Lasica/Flickr

Jack Ma, founder of Alibaba.com

Trading stocks in hot new issues can offer huge opportunities so I’m sure you’ve heard and felt the excitement pour out on the news of the week: Alibaba’s IPO. The Chinese’s answer to Amazon.com is about to go public and not since Facebook launch its initial public offering has their been this much enthusiasm for an IPO. Plenty of people are talking it up and I’m sure the investments banks that are handling the offering are ginning up the company as the next greatest thing for tomorrow’s future stock market millionaires. But, is Alibaba going to emerge as the next international powerhouse or is just a bunch of hype?

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