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How do companies make it tough to compete with them? Warren Buffett calls the moats Barriers to Entry examples: 1) Patents are government-backed monopolies. 2)

How do companies make it tough to compete with them?

Warren Buffett calls the "moats" Barriers to Entry examples:

  • 1) Patents are government-backed monopolies.
  • 2) Licenses/permits. Licenses and permit fees .example are: realtors, beauticians, Certified Public Accountants, Lawyers, Doctors, etc.
  • 3) Standards and regulation. .Facebook wants government regulation to increase costs for competitors.
  • 4) High Start-up Costs. ...The cost to get the plans for a single family home approved by various City of Los Angeles government agencies is $100,000.
  • 5) Economies of Scale. ...Motor Vehicle plants need to make at least 100,000 vehicles/year
  • 6) Loyalty Programs - like supermarkets, coffee chops, etc. have.

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