Nelnet Inc.

Nelnet’s New Moat

by Glenn Busch September 16, 2010
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http://www.youtube.com/watch?v=2SWjIPwm954″>Bill

As investors in businesses we want to find companies with large barrier to entries or large moats as Warren Buffett likes to call them. One way a business earns a moat is to become a government-favored-company in a heavily regulated industry. Due to recent federal legislation the student loan industry has now become a heavily regulated industry and Nelnet (NNI) has become one of four chosen companies to service the new federal loan program; Nelnet has earned its moat.

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