Wide-moat companies carry “sound balance sheets and significant competitive advantages” — two desirable qualities in the face of today’s economic uncertainty, says Dziubinski in a Dec 31, 2024 note. “Over time, we’ve found that the strategy of investing in wide-moat stocks trading at a discount to their fair values has been an effective approach to stock investing.”
Morningstar Equity Research has released its list of 10 “cheap, wide-moat” US stocks for 2025. According to the investment research firm, these are companies with “wide economic moats” and “significant advantages” that allow them to successfully fend off competitors for decades.
Susan Dziubinski, investment specialist at Morningstar Equity Research, says companies can carve out their economic moats in a variety of ways: by having high switching costs, through strong brand identities or by possessing economies of scale, among others.
