Right click to select the Fundamental Explorer tool for a ticker \u2013 and then click on Analyst Ratings on the top tab and select Morningstar. <\/p>\n\n\n\n
Morningstar estimates the Moat and the Moat Trend \u2013 and see the reasoning behind Morningstar\u2019s analysis. <\/p>\n\n\n\n
There are more topics in this menu to explore such as recent business strategy and outlook, fair value and profit drivers, risk and uncertainty, capital allocation, financial health and business description.<\/p>\n\n\n\n
Here are three common types of moats, including the narrow moat, and an explanation of why they may be classified as such:<\/p>\n\n\n\n
Narrow Moat<\/strong><\/p>\n\n\n\n A narrow moat represents a relatively smaller or less durable competitive advantage compared to other types of moats. It indicates that the company has some advantages, but they may be more susceptible to erosion or competition.<\/p>\n\n\n\n Some factors in a company that can contribute to a narrow moat include:<\/p>\n\n\n\n Wide Moat<\/strong><\/p>\n\n\n\n A wide moat represents a more substantial and durable competitive advantage that provides the company with a significant edge over its competitors. Wide moats typically have stronger and more defensible barriers to entry.<\/p>\n\n\n\n Some factors that contribute to a wide moat include:<\/p>\n\n\n\n No Moat<\/strong><\/p>\n\n\n\n Some companies may not have a moat or a sustainable competitive advantage. They operate in highly competitive industries where it is relatively easy for new entrants to replicate their products or services, resulting in minimal barriers to entry.<\/p>\n\n\n\n It’s important to note that the classification of a moat as narrow or wide is not<\/strong> a fixed or absolute categorization. The assessment of a company’s moat is subject to interpretation and can vary among analysts or investors based on their analysis and perspectives.<\/p>\n","protected":false},"excerpt":{"rendered":" In Economic moats refer to the competitive advantages that allow a company to maintain its market position and fend off competitors. These advantages create barriers to entry, making it challenging for other companies to replicate the company’s success. <\/p>\n","protected":false},"author":850,"featured_media":9622,"parent":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"contributors-categories":[149],"traders-academy":[100,103,105],"class_list":{"0":"post-9621","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-interactive-brokers","7":"traders-academy-beginner-trading","8":"traders-academy-level","9":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n\n
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