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2 Competitive Advantages That Drive Stock Returns

·4 min read
2 Competitive Advantages That Drive Stock Returns
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There are many attributes of great companies, but one thing they all have in common is some sort of competitive advantage. The ability to recognize when a company has an edge over its competition is integral to successful investing, which is why it's incredibly important to understand two of the greatest competitive advantages in business: network effects and counter-positioning. Network effects is a phenomenon where a network exponentially increases in value with every user that joins.