This link is a great resource for understanding the different types of moats in business/investing.
From the article:
“A company must have a durable competitive advantage that protects it from attack, like a moat protects a castle.”
~ Warren Buffett
Also from the article:
You also want to avoid investing in companies that sell goods/services for fixed prices, as they will be eaten by inflation, and are doomed to fail. Instead, purchase market leaders that can increase their prices when it seems fit. Even if the products/services cost a little more than a few years prior, customers will pay the price if the company has a strong economic moat.
The four main key performance indicators you want to focus on are:
- Revenue
- Stockholders' Equity
- Free Cash Flow (or Owners’ Earnings)
- Earnings per Share (EPS) or Net Income
(I have also seen others say that you should look at high ROE and Profit Margins.)
Economic Moat Investments
On another personal note, these are some ETFs that follow the concept of stocks/companies having a moat:
