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Stock Strategist

How Four Wide-Moat Firms Stay Ahead

Recognizing business models that stand the test of time.

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We think smart investors look for good companies that have solid management teams and can build a strong economic moat around their profits. At Morningstar, we are constantly searching for these economic moat builders--companies that focus on long-term strategic plans, create distinct operating models, and harvest competitive positions, all of which allows these firms to create long-term value for shareholders.

What Makes a Moat?
All management teams say that they are working to increase shareholder value over the long term. In reality, though, setting goals is different from actually achieving them. At Morningstar, we think the proof is in the pudding, and you can look at how a company has positioned itself to gauge whether or not the managers have achieved their goal.

Ramesh Poola has a position in the following securities mentioned above: FTEK. Find out about Morningstar’s editorial policies.