Moat Investor takes its basic philosophy from Warren Buffetâ€™s style of value investing:
1. Only invest in businesses and industries you can understand
2. Only invest in companies that have a significant competitive advantage (Buffet calls this a â€œmoatâ€ which is from where this site takes its name)
3. Only invest in companies that feature great management
4. Invest only when the price you pay contains a margin of safety
5. Invest only in companies with a high Return on Equity (ROE or ROIC)
6. Invest only in companies with consistently (i.e., minimum of 10 years) strong free cash flow and profitability
7. Invest only if the company has avoided excess debt
It is our belief that while all of these elements are critical for committing your hard-earned cash in an investment, the average investor has the most difficult time evaluating a companyâ€™s moat. Moat Investor is committed to educating investors in all of these areas, and especially with regard to competitive moats, as we believe that the investor with a real knack for evaluating competitive differentiation and changing market conditions will have a significant advantage of the average investor or even institutional investors.
We believe that the most important thing to understand about a company — and also the most difficult to grasp — is the competitive moat that protects it from market share erosion. So, in addition to providing training for value investors, this site also provides analysis of different companies from a competitive perspective.
Legal disclaimer: None of the content on this site should be construed as investment advice. Your investments are your responsibility. Follow your own strategies at your own risk.