Economic moats are characteristics that help protect a company’s profitability just as Castle moats help protect people inside. There are 2 stages of economic moats: legacy (existing) and reinvestment (under construction). Companies with reinvestment moats should invest more back in the business than legacy moat businesses. We believe the identification and evaluation of economic moats is an integral part of analyzing a company’s stock.

Economic moats are characteristics that help protect a company’s profitability just as Castle moats help protect people inside. The presence and development of economic moats can help a business have long term success. We believe the identification and evaluation of economic moats is an integral part of analyzing a company’s stock.

Dividends have been a lure for public investors ever since the 1600s when the Dutch East India Company distributed regular profits to shareholders in the form of guilders (Dutch currency). Investors who are looking to maximize returns often shun dividend-paying stocks, mischaracterizing them as low return investments. In fact, those investors are missing out when one takes a historical view of stock market returns. You may be surprised to learn that stocks that pay dividends have outperformed non-dividend-paying stocks over the long run.