Wide Moat Stocks
Wide moat stocks typically have significant competive advantages over their competitors that allow them to fight off competition and maintain high returns on capital. A moat can come in several forms. Some firms create moats through a superior brand. Others do it via pricing power that competitors can't match. Still others do it through operational advantages. Our system to identify moats uses criteria adapted from our Warren Buffett model. It looks for firms with consistent growth in earnings over time and consistently high returns on equity and returns on total capital.