5 Types of Economic Moats

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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Source: Morningstar via Market Index


How an “economic moat” can protect companies and their dividends, ASX

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