Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Moats Work, But Not Forever Not Rated 0.0 Email Routing List Email & Route  Print Print
Monday, August 06, 2012

Moats Work, But Not Forever

News summary by MFWire's editors

Moats can be a big plus to mutual funds and ETFs, but they don't last forever, writes Jonathan Burton for MarketWatch.

Warren Buffet, chairman of Berkshire Hathaway, used "moat" to describe the advantage of barriers built by companies to defend the portfolios they offer. He said he wants "economic castles protected by unbreachable moats."

"A company that has a greater duration of competitive advantage is simply worth more," said Morningstar chief equity strategist Paul Larson. "[Wide moat companies] should be able to parlay that into higher returns on invested capital.

"A wide-moat business, purchased at the right price, is the ultimate 'sleep well' kind of investment," Yacktman Fund co-manager Jason Subotky also told MarketWatch.

In 2007, Morningstar came up with the Wide Moat Focus Index, which is comprised of the 20 least expensive wide-moat stocks handpicked by the from 1,200 U.S. stocks. This index is used by the Market Vectors Morningstar Wide Moat Research ETF and Elements Morningstar Wide Moat Focus.

Some funds that invest in wide-moat stocks are SPDR Dow Jones Industrial Average, Schwab US Dividend Equity and Vanguard Dividend Appreciation ETF

Edited by: HFD


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2018
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use