If a company has a large enough portfolio of products, each protected by patents, and they have enough momentum to replace expiring patents with new patents, then they can have
a durable economic advantage in their technological or medical niche.
This is the fourth in a series of articles highlighting dividend growth companies that have large and
durable economic advantages, or «moats», that protect their business operations and allow years or decades of strong profitability.
Not exact matches
A company that is said to have an «
economic moat» has a
durable competitive
advantage that protects it from competitors for a long time, much like a moat protects a castle from invaders.
This is not to say that I am not a fan of larger, well - run businesses with fantastic
economic characteristics and
durable competitive
advantage.
Pat Dorsey, Author, CFA and Director of Equity Analysis, Morningstar «
Durable Competitive
Advantages: Using
Economic Moats To Improve Investment Returns»