Course 205: Economic Moats
The Bottom Line
In this course
1 Introduction
2 How to Build a Moat
3 Low-Cost Producer or Economies of Scale
4 High Switching Costs
5 The Network Effect
6 Intangible Assets
7 The Bottom Line

While having these four types of moats, or competitive advantages, as guidelines is helpful, there is still a lot of art to determining whether a firm has a moat. At the heart of it, the harder it is for a firm's advantage to be imitated, the more likely it is to have a barrier to entry in its industry and a defensible source of profit.

Next: The Quiz >>

Print Lesson |Feedback | Digg! digg it
Learn how to invest like a pro with Morningstar’s Investment Workbooks (John Wiley & Sons, 2004, 2005), available at online bookstores.
Copyright 2015 Morningstar, Inc. All rights reserved. Please read our Privacy Policy.
If you have questions or comments please contact Morningstar.