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What does moat stand for in business?
The term economic moat, popularized by Warren Buffett, refers to a business’ ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms.
How do I find a company’s moat?
First, seek out the company’s key competitors. Then, compare their revenues and profits to the company you’re looking at. If there’s a big gap between your company’s earnings and those of companies it competes against, you can say that the more profitable one probably has a wide moat.
What is a product moat?
Economic moat describes a company’s competitive advantage derived as a result of various business tactics that allow it to earn above-average profits for a sustainable period of time. Essentially, the wider the economic moat, the larger and more sustainable the competitive advantage of a firm.
Does Starbucks have a moat?
Today, Starbucks has a dwindling reinvestment moat in terms of capacity, but they still have a strong legacy moat that protect the profits of existing stores.
Is moat ETF a good investment?
It has a relatively high expense ratio of 0.75\% but has rewarded investors with a strong performance over an extended period with a 10-year return of 13.47\%, a five-year return of 12.54\% and a three-year return of 14.7\%. The ETN also has an impressive YTD return of 6.63\%.
What are moats used for?
A moat is a deep, broad ditch, either dry or filled with water, that is dug and surrounds a castle, fortification, building or town, historically to provide it with a preliminary line of defence. In some places moats evolved into more extensive water defences, including natural or artificial lakes, dams and sluices.
What companies have economic moats?
With that information, here are seven stocks with strong moats:
- Bank of America (NYSE:BAC)
- BlackRock (NYSE:BLK)
- eBay (NASDAQ:EBAY)
- General Motors (NYSE:GM)
- Kellogg (NYSE:K)
- Lockheed Martin (NYSE:LMT)
- Nvidia (NASDAQ:NVDA)
What companies have the biggest moat?
Attractively valued U.S. moat stocks
| Rank | Company | Recent Price (US$) |
|---|---|---|
| 1 | Watts Water Technology | 146.7 |
| 2 | Plains All Amer. Pipeline | 11.54 |
| 3 | AutoNation Inc. | 99.54 |
| 4 | MYR Group Inc. | 90.25 |
What is an economic moat rating?
A moat rating is an analysis of a company’s economic moat — How effective it is at a given moment, and for how long the moat will remain effective. A moat can be “wide,” meaning it’s expected to last for at least the next twenty years, or “narrow,” meaning it could last for about a decade.
Does Amazon have a moat?
While Amazon’s dominance has been built on a variety of moats, its central business advantage comes from harnessing the marketplace network effects that come from aggregating suppliers and customers.
What is an economic moat?
What is an ‘Economic Moat’. An economic moat is a competitive advantage that one company has over other companies in the same industry; this term was coined by Warren Buffett , a renowned investor and executive at Berkshire Hathaway . The wider the moat, the larger and more sustainable the competitive advantage of a firm.
What is moat investing?
A moat is obviously the water around a castle but in investing terms, a moat is the durable competitive advantage that a company has that protects it from being attacked by competitors. A moat is what makes a company predictable and allows us to put a value on the business.
What is a moat rating?
Wide-Moat Focus™ Index. Given our universe of stocks receiving an Economic Moat Rating of Wide, Morningstar has created an index that consists of the 20 stocks that are trading at the largest discounts to our analyst’s fair value estimates.
What does wide moat mean?
What is a ‘Wide Economic Moat’. A wide economic moat is a type of sustainable competitive advantage possessed by a business that makes it difficult for rivals to wear down its market share. The term is derived from the water-filled moats that surrounded medieval castles.