This is a book about investing.

The first part introduces strong competitive advantages of companies. Warren Buffet popularized them as “moats”, and so are known in the industry. Moats are patents, for example, that give you exclusive rights to produce something for a while. Moats are also ways to operate at lower costs than competitors, if you can sustain it. Different moats offer different characteristics, but all promise the same: companies with these advantages generate higher returns for longer periods of time. That’s why investors look for companies that have them.

The second part is about how to find companies with moats, how to valuate them (P/E, EPS, etc.), and the mechanics of buying and selling to maximize your returns.

I picked it up after a recommendation by one of the assets managers I follow. It was published in 2008, and it’s part of the “little books, big profits” series by Morningstar. It’s a pleasure to read, with clean prose and without unnecessary jargon.