Retreat from risk: buy stocks with moats

A moat represents a castle’s first line of defence against intruders. The bigger and deeper it is, the better. An ‘economic moat’ does the same thing for a company – and it’s an absolutely critical feature to look out for before you invest in any stock. An economic moat gives companies staying power. As we’ll discuss in a moment, the moat can come in a wide range of guises – from a brand, to a patent, to regulatory constraints – but in essence, it’s any aspect of the business that allows it to keep making money, and stops other firms [...]

MoneyWeek magazine

Latest issue:

Magazine cover
A new dawn for energy

Our experts pick the stocks to buy

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

FREE REPORT:
What you should really do with your money (2014 Edition)


How to buy and sell penny shares

A beginner's guide to investing in gold

How to invest in British fracking