Stocks with wide moat are companies that have “something” that keeps competitors at bay and allows the business to earn supernormal profits. The term came about from the water-filled moats that surrounded castles of the Middle Ages (like the photo above). The wider the moat, the harder it would be for an adversary to penetrate the castle. Some of the examples of companies with wide moat would include Coca-Cola, Wrigley and Walmart.
Having a wide moat allows companies to have excessive earnings and this eventually causes the share price to rise. However, not all companies with wide moat actually lasts. This may sound shocking but this has become more evident recently. Think of Eastman Kodak, Britannica Encyclopedia, newspaper companies and physical bookstores. Kodak filed for bankruptcy in January 2012. Who ...
Stocks with wide moat are companies that have “something” that keeps competitors at bay and allows the business to earn supernormal profits. The term came about from the water-filled moats that surrounded castles of the Middle Ages (like the photo above). The wider the moat, the harder it would be for an adversary to penetrate the castle. Some of the examples of companies with wide moat would include Coca-Cola, Wrigley and Walmart.
Having a wide moat allows companies to have excessive earnings and this eventually causes the share price to rise. However, not all companies with wide moat actually lasts. This may sound shocking but this has become more evident recently. Think of Eastman Kodak, Britannica Encyclopedia, newspaper companies and physical bookstores. Kodak filed for bankruptcy in January 2012. Who ...
