Investment Moats

Investment Moats

Last Updated by WikiWealth

Investment moats are general characteristics that separate great investments from average stock investments. Fundamental investors such as Warren Buffett utilizes the concepts of investment moats for their stock picking. The wider the investment moat the better, because companies can more easily defend themselves from attaches by competitors. Moats may not be able to stop competitor, but they can slow down competition and allow defending companies to think of new strategies. Examples of moats include unique technologies (see Intel) and brand names (see Coca-Cola).

WikiWealth.com Combines Investment Moats and the SWOT Analysis:
The SWOT analysis breaks down a company's important characteristics into an easy-to-understand format. WikiWealth.com combines the SWOT analysis with fundamental investing theories developed by Warren Buffett.

  • SWOT Strengths: Increase investment moats.
  • SWOT Weaknesses: Decrease investment moats.

The larger the investment moat the better.