This guest post is by Aman Basanti of ageofmarketing.com.
Billionaire Warren Buffett's method of deciding which companies to buy and invest in is not only instructive for share investors, but also for bloggers. His strategy can be used in the blogging world to create a successful blog—especially instructive for bloggers who are short on time and need to make every post count.
Buffet's “Durable Competitive Advantage” concept
When Buffett analyses a company for potential, he looks for what he calls a “durable competitive advantage.” A durable competitive advantage is a unique product that has a strong competitive advantage in the market and does not have to change over time. In other words, he looks for a product that he can profit from over a long period of without changing it much.
Coke, for example, has a durable competitive advantage because it does not change over time. The same can be said for Budweiser, DeBeers Diamonds and OPEC. A car manufacturer, on the other hand, does not have a durable competitive advantage because cars change in design every few years.
Companies with a durable competitive advantage like Coke enjoy the following advantages over other companies:
- They spend fewer dollars on research and design.
- They do not need to retool their production line to cater for new models.
- They have a long life span in the marketplace.
This means that more money is available for profits and re-investment, allowing more to be achieved with less.
Applying Buffett's principle to blog strategy
Buffett's strategy is a great strategy for time-deprived bloggers. Simply put, it states that rather than buying companies that have time-sensitive products—or writing posts that are time sensitive—buy companies who products are evergreen—or write posts that are evergreen.
Rather than building a news site, which is what many bloggers do,...
