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Moats matter more now than ever.

If you invest, you MUST know how to identify them.

Here are 9 financial “rules of thumb” that Warren Buffett uses to tell if a company has one:

1. GM >40%

2. SG&A < 30%

3. Depreciation <8%

4. Interest Expense <15%

5. Income tax ~21%

6. Profit Margin >20%

7. CapEx <10%

8. Debt to adjusted Equity < 0.80

9. Return on equity >15%