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

This book is surprisingly good (should not judge a book by its cover or title in this case). It covers only 1 thing: moats (a.k.a competitive advantages) in a company and I think this is one of the best, if not THE best book on this subject.

The author went in-depth talking about different kinds of moats, especially highlighted things are easily mistaken for moats (better product, higher market share, or better internal processes etc). The true moats are very rare and for most companies, you either have it or do not have it. Or put it simply, some business is just better than others. The other thing he made it very clear is, people normally give the management team/CEO too much credit if things go well, or too much criticism when business goes south because people tend to ignore how strong/weak the business is, comparing to competition, or how much moats the business has.

I also find this book easy to read and the insight/points very practical, I believe this is due to the fact the author was from Morningstar, the research company.