Competitive moat!

A future multi-bagger stock should have that unique business potential to become eventual market leader in the sector it is operating in. It is usually a good idea to take a closer look at businesses that have an advantage over their rivals in an industry which offers significant growth potential. This is what Warren Buffet used to call ‘competitive moat’. It can be anything like quality of product or service giving pricing power, efficient cost management, mass producer leading to economies of scale, prudent capital allocator, dynamic management, etc.