One of the strategies when investing in equities is to identify companies with a moat. This refers to a company’s ability to maintain its competitive edge and maintain profitability in the future by beating competitors. According to Morningstar, there are 5 types of moats as shown in the below chart:
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![](https://topforeignstocks.com/wp-content/uploads/2023/01/5-Types-of-Economic-Moats.jpg)
Source: Morningstar via Market Index
Related:
How an “economic moat” can protect companies and their dividends, ASX