We help investors build the foundation of their portfolios with the best US foundational stocks by sector. If all goes well, you should buy these shares at the beginning of your portfolio and keep them forever. Which ones play this role for you? Let us know! No more doubts, No more paralysis: Take action and Retire happy. Save your Spot to the Invest with Conviction Webinar NOW! You'll Learn Before we start let's cover the benefits of investing with a long-term horizon. Don't you want …
Economic Moats: Intangible Assets, Cost Advantages, and Scale
Concluding our series of articles on economic moats, this week we look at the intangible assets, cost advantages, and scale efficiency factors that contribute to companies’ economic moats. Missed last week’s article? No worries, get it here. Intangible assets Intangible assets include intellectual property, brand equity, customer relationships, and proprietary technology. Intellectual Property (IP) Intellectual property is the creation of the mind that has commercial value and that is …
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Things We Believe That Aren’t True [Podcast]
Strong beliefs in the investment world guide many investors' portfolios. The problem is that many of them are not true. It's time to destroy misconceptions about payout ratios, PE ratios, dividend history, and volatility. Get Stock Ideas among the Best Dividend Growers, Download the Rock Star List You'll Learn What is the dividend payout ratio? What does it tell us? A strong belief is that a Good Payout Ratio is under 80%. Why is this a misconception? To illustrate his point, …
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Economic Moats: Switching Costs and the Network Effect
Following last week’s article describing the concept of economic moat, we now look at switching costs and the network effect. Both are competitive advantages that protect a company, in other words, that contribute to that company’s economic moat. Switching cost High switching costs make it difficult, costly, or both for customers to switch from one supplier to another. A company enjoying this type of protection is said to have a sticky business model because the switching costs make its …
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Moaty Dividend Stocks to Buy [Podcast]
Initially, a moat is a deep trench around a castle to protect it from invasion and enemies. Nowadays, there are 5 sources of economic moats for companies. They refer to the factors that help a company survive and thrive. Today, we'll explain these sources and give examples of stocks to buy for each. You'll Learn Moat companies are businesses that show solid competitive advantages or some barriers for competitors to enter their niche. There are narrow and wide-moat companies. The first …
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Add Economic Moats to Your Stock Analysis
Adding economic moats to your stock analysis can help you to develop and be confident in your investment thesis, i.e., why a stock is a good pick for your portfolio. A company’s economic moat can also shed light on loser stocks you have and don’t know what to do with. A moat is a ditch, either dry or filled with water, surrounding a castle or town, that acts as a primary line of defense. Historically, moats were used to protect our most precious asset: where we live. The term economic moat …
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