One key reason could be the lack of competitive advantage in the companies you invest in. Just like a business needs a unique edge to thrive, companies must have a strong competitive advantage to maintain profitability. For example, brands like Apple and LVMH succeed due to emotional branding, allowing them to command high profit margins. Investing in companies without such advantages often means they compete on price alone, leading to declining profitability.
Watch my latest video to learn more about identifying companies with sustainable competitive advantages.
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