We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks Podcast Highlights: Wide Moat Investing: The Best Way to Find Great Long Term Stocks?
Read MoreHide Full Article
For Immediate Release
Chicago, IL – In this edition of the Dutram Report, we investigate the world of wide moat companies. These firms have durable competitive advantages which may make them top notch picks for investors over the long haul. To learn more about this concept, we speak with Brandon Rakszawski, a product manager at VanEck, who gives us his insights on the topic. To listen to the podcast, click here: (https://www.zacks.com/stock/news/243925/how-to-find-the-best-stocks-for-long-term-investments )
When you are looking for a great selection for your long term portfolio, you want a stock that is in a great competitive position, and one that looks to see these advantages hold over years, if not decades. But how do you find a company that is going to stand the test of time?
One way to find these companies is by looking at those with ‘wide moats’. This concept seeks companies that have a long term, durable competitive advantage that can protect a firm’s position over the coming years. Think of a castle with a wide moat surrounding it. The wider the moat, the tougher it will be to break into the castle, and that is exactly what this approach is looking for in the corporate world too.
Where Are These Companies?
To find these companies, I spoke with Brandon Rakszawski of VanEck for some insights. Brandon is the product manager at VanEck, an ETF provider that has the VanEck Vectors Morningstar Wide Moat ETF (MOAT - Free Report) and the VanEck Vectors Morningstar International Moat ETF (MOTI - Free Report) in its lineup, so he is definitely familiar with the concept.
We discuss the idea of wide moats in a bit more detail, and we also talk about the index construction of these products which focus on wide moat ratings from Morningstar, in addition to trading at big discounts to fair value.
We also talk about some of the major types of wide moats out there and how these can help give companies durable competitive advantages over time, and what investors need to look for when analyzing a stock’s prospects.
I also asked Brandon for a few examples of how this in terms of the funds’ holdings, and he noted how Tiffany & Co with its excellent brand name is a great case, as well as Mastercard (MA - Free Report) with its incredible network. Additionally, investors should note a few other top-notch examples from the current holdings list, including Amazon (AMZN - Free Report) which is well-known for its ultra-low cost model, as well as Grupo Aeroportuario Centro Norte, which is a Mexican company that owns more than a dozen airports, giving it basically a monopoly over air travel in many areas of that country.
We also discuss how this approach might result in some sector biases, and some key factors that investors need to know about this approach. I also talk to Brandon about some of the companies out there that have no moat at all—and thus little to no competitive advantage—and what investors can take away from these companies too.
Bottom Line
This was a great chat on what makes a ‘wide moat’ company, and it could give investors something to look for in terms of 2017 picks too. So, make sure to listen to this edition of the Dutram Report for a closer look at this often-overlooked, but potentially lucrative, segment of the equity world. And for more news and insights into the world of ETFs, make sure to be on the lookout for the next edition of the Dutram Report each and every Thursday, and check out the many other great Zacks podcasts as well!
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Zacks Podcast Highlights: Wide Moat Investing: The Best Way to Find Great Long Term Stocks?
For Immediate Release
Chicago, IL – In this edition of the Dutram Report, we investigate the world of wide moat companies. These firms have durable competitive advantages which may make them top notch picks for investors over the long haul. To learn more about this concept, we speak with Brandon Rakszawski, a product manager at VanEck, who gives us his insights on the topic. To listen to the podcast, click here: (https://www.zacks.com/stock/news/243925/how-to-find-the-best-stocks-for-long-term-investments )
When you are looking for a great selection for your long term portfolio, you want a stock that is in a great competitive position, and one that looks to see these advantages hold over years, if not decades. But how do you find a company that is going to stand the test of time?
One way to find these companies is by looking at those with ‘wide moats’. This concept seeks companies that have a long term, durable competitive advantage that can protect a firm’s position over the coming years. Think of a castle with a wide moat surrounding it. The wider the moat, the tougher it will be to break into the castle, and that is exactly what this approach is looking for in the corporate world too.
Where Are These Companies?
To find these companies, I spoke with Brandon Rakszawski of VanEck for some insights. Brandon is the product manager at VanEck, an ETF provider that has the VanEck Vectors Morningstar Wide Moat ETF (MOAT - Free Report) and the VanEck Vectors Morningstar International Moat ETF (MOTI - Free Report) in its lineup, so he is definitely familiar with the concept.
We discuss the idea of wide moats in a bit more detail, and we also talk about the index construction of these products which focus on wide moat ratings from Morningstar, in addition to trading at big discounts to fair value.
We also talk about some of the major types of wide moats out there and how these can help give companies durable competitive advantages over time, and what investors need to look for when analyzing a stock’s prospects.
I also asked Brandon for a few examples of how this in terms of the funds’ holdings, and he noted how Tiffany & Co with its excellent brand name is a great case, as well as Mastercard (MA - Free Report) with its incredible network. Additionally, investors should note a few other top-notch examples from the current holdings list, including Amazon (AMZN - Free Report) which is well-known for its ultra-low cost model, as well as Grupo Aeroportuario Centro Norte, which is a Mexican company that owns more than a dozen airports, giving it basically a monopoly over air travel in many areas of that country.
We also discuss how this approach might result in some sector biases, and some key factors that investors need to know about this approach. I also talk to Brandon about some of the companies out there that have no moat at all—and thus little to no competitive advantage—and what investors can take away from these companies too.
Bottom Line
This was a great chat on what makes a ‘wide moat’ company, and it could give investors something to look for in terms of 2017 picks too. So, make sure to listen to this edition of the Dutram Report for a closer look at this often-overlooked, but potentially lucrative, segment of the equity world. And for more news and insights into the world of ETFs, make sure to be on the lookout for the next edition of the Dutram Report each and every Thursday, and check out the many other great Zacks podcasts as well!
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .
Follow Eric on Twitter: https://twitter.com/ericdutram?lang=en
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com/performance
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.