
Morningstar’s Five Sources of Moat
Moat investing is based on a simple concept: Invest in companies with sustainable competitive advantages trading at attractive valuations. One of the first steps in implementing this approach is finding companies with a moat.
A company’s moat refers to its ability to maintain the competitive advantages that are expected to help it fend off competition and maintain profitability into the future. Morningstar has identified five sources of moat:
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