Wide-moat companies enjoy a near-monopoly status in their respective niches. Which stocks have secured their position?
Why do people buy Coca-Cola (NYSE:) beverages over cheap alternatives? Astute investors already have the answer – wide moat positioning. These publicly traded companies have such high brand recognition that customers are willing to pay a premium.
In addition to such an intangible asset as branding, wide-moat companies have other advantages, such as copyrights and patents, to enjoy near monopoly status in their respective niches. And if they are already entrenched, the alternative to switching would prove too burdensome for customers to bear.
Wide-moat companies have also demonstrated their scaling capacity, making it difficult for their competition to take a chunk of their market share. Of the , six stocks fit wide moat criteria: Alphabet (NASDAQ:), Apple…
