CHINA CHEMICAL CORP. (OTC QB: CHCC) One of the key characteristics of a great long-term investment is an underlying business with an “economic moat” – something inherent in the company’s core product or service that makes it highly profitable, gives it a permanent edge over and protects it against existing and would-be competitors. Warren Buffett calls it a “durable competitive advantage,” and it’s a crucial factor the legendary investor looks for when evaluating a company.
One company that shows signs of being a business with the type of durable competitive advantage that the Oracle of Omaha so firmly espouses is China Chemical Corp. (OTC QB: CHCC), a rising player in China’s specialty chemicals industry. Yet it remains undiscovered by the market, largely because the opportunity to invest in the company has only been available to U.S. investors since this past October. The Company is in full SEC reporting compliance, and in November, just weeks after the stock began trading, management had already applied for a NASDAQ listing, for which the company meets all of the requirements.