'Moats' Add Might to Investment Returns

Summary


In the Middle Ages, moats were deep, water-filled trenches that encircled castles to protect kings. The wider, the better.

In 2007, moats are the competitive advantages that protect dominant companies and their shareholders. The wider, the better.

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Extract


'Moats' Add Might to Investment Returns

The goal in trying to pick companies with wide moats is to give investors the security of knowing that a firm isn't likely to see its products or services overtaken by rivals.

Although many of these companies are king-size, some smaller niche players qualify, too. O...

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