As an astute investor, I want to see the future growth of the business we invest in. Therefore, I am not only finding wonderful companies but also companies that can last long because businesses returning a 10-bagger need time to grow. If they grow, our investments grow too.

The secret to every successful investor is found here. Warren Buffett has quietly slide a paper under the door to us with one of his priceless wisdoms: "The key to investing is not assessing how much an industry is going to affect society or how much it will grow, but rather determining the competitive advantage of any given company and, above all, the durability of that advantage."

Yes, we must buy companies with a competitive advantage, more commonly known as an economic moat. Not only that, this economic moat of the company must be durable and last long.

So what is this economic moat all about?

An economic moat is inherent in the business of a company and can protect its long-term profits and market share from competitors in the industry. Just like a mediaeval castle, the moat serves to protect those inside the fortress and their riches from outsiders.

HOWEVER! Buying companies that have already finished building their economic moat is akin to buying at the end of their hyper-growth cycle. Their upside has almost finished and is very difficult to grow further. Companies like Microsoft, Apple, Google, Alibaba, and Tencent are companies with strong established economic moats already. I agree they are very good companies.

BUT! If you aspire to become a next-level investor with substantial returns, you must understand the significant distinction between purchasing quality companies and those that have the potential to generate substantial profits. And herein lies my secret: "Learn to find and buy companies that focus on widening and deepening their economic moats every day!"

Far too many investors focus on economic markets that are already established. This is stagnant quality growth. What we want is to see the management and company keep improving and strengthening their moats. The market will continue to reward higher and higher multiples on companies that execute on expanding their markets.

Once you have done the work to find a good business with improving financials while being protected by an economic moat that gets stronger and stronger, all you need to do is give it time to achieve your 1,000% ROI. Time is the ally of the exceptional business and the adversary of the mediocre. 

I let my stocks ripen on the vines. I don’t pick them too early. I invest big with a long-term horizon, monitor their executions, and hold as long as they perform. Don’t be impatient and find the need for “action”, the powerful feeling that you need to “do something” to achieve something.

Just let time and the power of compounding work in your favour. Good luck and happy investing.