Zahedul's Reviews > The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments

This book succinctly summarizes the underlying principles of investing in financial assets e.g. company stocks, for the long-run. The author uses the concept of economic moat as a thought experiment, to differentiate between companies with strong competitive advantages with others. Companies with strong economic moats have high competitive advantages, which cannot be easily nullified/replicated by competitors or new entrants. Factors like customer stickiness, brand image, natural monopoly and production cost advantages, among others, can provide thick economic moats, which may result in higher profitability and cash inflow. This would be an interesting read for those planning to make long term investments in the stock market.