The big moat company can also keep its prices low, but because it has more margin of its profits. When the competitor, who is weaker with a smaller moat, is pricing themselves out of business,. They are now losing money in order tat ti igt bei to absorb those supply price creases. So when you have a really big mote company, and a, it can raise prices, and b, it can lower prices and still be profitable, and c, it can a grow actually in a tight economy, that's what we're looking for.
On this episode of InvestED, Phil and Danielle continue the discussion of investing in strong companies, especially during times of uncertainty.
Higher prices lead investors to ask if a company's moat will crumble. However, a big moat has a durable competitive advantage and an inflation-proof company brings value to investing in an uncertain investing environment.
Tune in to this episode of InvestED to understand more about the importance of value investing and take Phil and Danielle’s advice on finding safe, big moat companies.
To learn even more about where to find inflation-proof companies, download a copy of Phil’s Ultimate Stock Market Crash Survival Guide. Get your free guide here: https://bit.ly/3qvca75
Topics discussed in this podcast:
- Value investing
- Successful investing in uncertain times
- Inflation proof companies
- Pricing power
- Broken moats
Additional resources discussed in this podcast:
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