Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
|
|
Skip to a different definition: |
|
A
- B - C -
D - E
- F - G -
H - I
- J - K -
L - M
- N - O -
P - Q
- R - S -
T - U
- V - W -
X - Y
- Z |
|
| Economic
Moat |
What It Is:
An economic moat is a competitive advantage that is difficult to copy or emulate, thereby creating a barrier to competition from other firms. Common economic moats include patents, brand identity, technology, buying power, and operational efficiency.
How It Works/Example:
Castles were traditionally part city and part defensive fortress. The moat was a key part of this defense -- by surrounding the castle with water, the fortress was more difficult to penetrate. The wider the moat, the more difficult it would be to attack a castle.
Companies are not unlike medieval castles. A successful company will undoubtedly attract competitors. If those competitors are successful in gaining market share, then they'll erode the profitability of the original business.
Thus, the most successful firms are those that boast some sort of sustainable competitive advantage. These firms are able to maintain their success despite the inevitable attacks from competitors. Companies with wide economic moats operate business models that are difficult -- or in some cases even impossible -- for competitors to rival.
Types of Moats
There are several ways to establish a wide economic moat. In some cases, companies can establish a cost leadership position within an industry. If a firm can offer products cheaper than any other firm, then it can drive its rivals out of business.
Wal-Mart (NYSE: WMT) is a perfect example of low-cost leadership in action. The company controls so much retail space that it's able to demand the lowest possible prices from suppliers. Because it would take decades of successful expansion for any firm to match Wal-Mart's tremendous size and scale, the company enjoys a sustainable advantage over its competition. In other words, it has a wide moat.
Another common moat involves a company's brand name and image. Consumers will continually reach for their favorite brands, paying a premium even if there are several cheaper generic equivalents on the market. A classic example is Coca-Cola (NYSE: KO). Although Coke contends with dozens of homogenous soft drinks, the company still manages to charge 20% to 30% more than generic brands. The reason: consumers identify with Coke and continually purchase their favorite brand.
The Dangers of Narrow Moats
A narrow moat makes it difficult to sustain above-average profitability. Narrow-moat firms can show tremendous growth for a period of time, but inevitably, competitors cross that moat and attack the castle's advantage, eroding profitability.
One classic example of this is Palm (Nasdaq: PALM). This firm's personal digital assistants (PDAs) took the market by storm back in the late 1990s. But by 2001 several major competitors had entered the market. Hewlett-Packard (NYSE: HPQ) introduced a new line of handhelds, as did Sony (NYSE: SNE) and Research in Motion (Nasdaq: RIMM). Mobile phone companies even began integrating PDA-like elements into their handsets. The result: Palm's product quickly became a commodity, and the firm's growth soon evaporated.
Why It Matters:
The presence and size of an economic moat correlates to a company’s ability to sustain long-term profitability. Thus, many investors look at a company’s economic moat when choosing where to invest. Measuring the actual size of the moat is difficult and often can’t be done mathematically. However, the concept has a lot of support, particularly from Warren Buffett, who is often credited with coining the term.
|
|
Who Cares What the Market is Doing When You're Pulling in $28,900 a
Year in Dividends?
With the safe, growing, high-yield picks that Editor Carla Pasternak
recommends every month you don't have to worry whether or not the
market has bottomed. You can sit back and collect annual dividend
paychecks of $16,300, $19,900 or even $28,900!
You can't go wrong looking into Carla's recommendations. A year from
now, when you've collected as much as $28,900 from dividends alone
you'll be glad you did. Take the first step and,
read this report now.
Seven "Yield Doubler" Stocks That Are Clobbering The Dow
Just 12 trading days before the market hit its 6,500-point low this
year, the "Yield Doublers" portfolio was born. That was
almost 4 months
ago. The Dow has rebounded +12% since then -- but our seven "Yield
Doublers" have clobbered that figure by a factor of up to 9-to-1...
delivering up to +144.2% gains to boot!
Go here to see why you should add these "Yield Doublers" to your
portfolio today.
|
We're
Putting $50,000 on the Line in Our NEW Stock of the Month Portfolio
We're SO confident in this strategy
that we're putting our money where our mouth is... $50,000 worth of it
in fact! That's how much we've put into a brokerage account to fund the
real-money portfolio for StreetAuthority Stock of the Month. Amy
Calistri just made her first purchase, and it's not too late for you to
join in and follow along with everything she does.
Don't
be left on the sidelines, click here to learn more now.
Two
Infrastructure Stocks That Are Profiting From Massive Government
Spending
Since the stimulus package was signed into law on
February 17th, these two infrastructure picks have moved up quickly.
One's a worldwide construction company that's already gained +32% to
date. The other makes critical copper, aluminum and fiber optic
cables... and shot up +41% in a matter of just weeks. Both are headed
higher. You’ll find their names in this special report. |
|
6
Free Months of Bernie Schaeffer's Option Advisor
Learn the secrets of successful options trading from top trader,
Bernie Schaeffer. Start your free 6-month subscription to The Option
Advisor newsletter now and get free online access to Bernie's Crash
Course in Top Gun Trading Techniques.
3
Penny Stocks Poised to Soar 300%
By the time Wall Street notices the 3 picks revealed in this report,
you could be sitting on a fortune. Click
here to get immediate access to an exclusive Free report --
"3 Underground Penny Stocks Poised to Soar."
|
Investor's
Business Daily (IBD)
Get 10 Free Issues of Investor's Business Daily (IBD) – Plus 2
Free Weeks of Investors.com
52 Wins in 52 Weeks - 365 Days Without A Loss
Success Trading Group scored 52 wins in 52 weeks! Get their weekend
newsletters free and register for Success Trading Group's next stock
picks free for 30 days!
|
|
|
|
|
Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
actually helps some investment or another.Your investing life can
get a lot simpler -- starting today.
Go here to learn about Amy's simple investing strategy.
|
|
|
