2 Competitive Advantages That Drive Stock Returns

As a long-term investor, you understand the incredible wealth you can build over decades by simply buying quality businesses and continuing to hold them. But how exactly do you identify "quality" businesses?

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.

Let's break down what they are and how to identify companies exhibiting these advantages.

Source Fool.com