First, we should understand what is economic moat, and what kind of benefits it can bring to a company. Basically, the concept of economic moat is that one company has a distinct advantage over its competitors, which allows them to maintain their profitability. In order to do so, it should be something that are hard to copy or duplicate such as brand and patents.

Talking about brands, the writer believes that there are few brands that you would prefer one than another, which includes NESTLE, TOYOTA, APPLE and more. These are the companies that have a very established brand that will instantly click into people’s minds when talk about it. For example, when we talk about consumer product, NESTLE will be the one which pops out of our mind. The same goes to TOYOTA when talked about car, and APPLE when talked about phones.

Take a look at companies such as JFTECH and MYEG. These two companies have the same characteristic, which is high profit margin. This is because they have a lot of certified patents that does not allow the same product being produced by others. This also give them a better pricing power, allowing them to be more profitable if they are willing to increase their price.

When we talk about economic moat, we can always relate it to monopoly. When a company monopolises a sector in the country, then they will have the absolute right to price their product and attract more investors to invest in their business. For example, TENAGA monopolises Malaysia’s electricity, GCB is the only cocoa company in Malaysia, and SCOMNET is the only medical cable manufacturer.

In short, investing in these companies with a wide economic moat and a near monopoly business allows the company to be profitable throughout their life cycle. Other than that, investors will not be too worry that their customers being snatched by other competitors since this economic moat is the exact reason that their customers would always stick to the company.

首先，我们要了解什么是护城河，并且他会给一家公司带来什么好处。基本上，护城河的概念就是一家公司有比起它的竞争者来得更明显的优势，而这也会让他们保持的赚钱能力。一家公司要有护城河，他就必须要有别人复制不到的东西，就好比品牌以及专利。

当我们说到品牌时，笔者相信有几个品牌你是一定会在同行里面选择它们的，而这就包括了NESTLE，TOYOTA，APPLE等。这些都是很老牌的牌子，并且在想到这个板块的时候一定会第一个出现在脑海中。举例，那我们说到消费品的时候，NESTLE一定是你第一个会想到的品牌。同样的，当提到车时，TOYOTA也会在你的脑海里出现，而在提到手机时，APPLE很自然的就会出现在脑海中。

我们来看看好像JFTECH和MYEG的公司。这两家公司有个共同点，就是很高的净利润率，这是因为它们的有很多有认证的专利，并且这些专利不让其他的公司做出同样的产品。这同时也给予他们更好的定价权，而如果它们想要提高价钱的话，赚幅也自然会被提高。

在当我们谈到护城河的时候，我们可以把它联系到垄断性行业。当一家公司垄断了一个国家的某个部分时，它们就会拥有绝对的定价权，并且可以吸引更多的投资者来投资他们的公司。举例，TENAGA垄断了马来西亚的电能行业，GCB是马来西亚唯一一家可可公司，而SCOMNET是马来西亚唯一一家做医疗电缆的公司。

总结，投资在这些拥有强大护城河以及几乎垄断性的公司可以让自己的公司在整个生涯中持续赚钱。除此之外，投资者也不太需要担心公司的顾客被其他人抢去，毕竟护城河就是顾客不容易被抢去的主要因素。

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