Tag
quality investing
Articles on quality investing - plain-English guides from the MoatMint knowledge base.
11 articles
Moat ETFs: What They Are and How They Compare to Picking StocksA moat ETF is an exchange-traded fund that holds a basket of companies judged to have durable competitive advantages, or economic moats, so an investor can own the whole theme in one purchase. An exchange-traded fund (ETF) is a fund that trades on a stock exchEconomic Moats · 5 min readReturn on Capital Employed (ROCE): Formula and What It Tells YouReturn on capital employed (ROCE) measures how much pre-tax operating profit a company earns on all the long-term capital it uses - debt and equity together. The formula is EBIT divided by capital employed, where capital employed is total assets minus current Returns on Capital · 6 min readThe Disposition Effect: Why Selling Your Winners Too Early Is a Costly MistakeThe disposition effect is the documented tendency to sell winning investments too early and hold losing ones too long. It is a well-studied cognitive bias, and it tends to feel like good sense, which is what makes it expensive. Selling a stock the moment it shPortfolio Strategy · 6 min readWhat Is a Buy and Hold Strategy? Why It Works and How to Run OneA buy and hold strategy means buying shares in good businesses and holding them for years, through the market's ups and downs, instead of trading in and out. Own businesses worth owning, then give them time to compound. The buying is easy. The discipline to kePortfolio Strategy · 6 min readHow to Find the Best Stocks to Buy and HoldThe best stocks to buy and hold are not the ones trending this week. They are durable, profitable businesses you can own through good years and bad ones, and keep owning while their earnings compound. No fixed list stays best for long, so the useful skill is kQuality & Compounders · 6 min readDiversification vs Concentration: How Many Stocks Should You Own?Diversification is not overrated for most investors. Spreading your money across many holdings is the most reliable way to cut risk, and for the average investor it should be the default. But it can be overdone. Past a point, adding more stocks stops lowering Portfolio Strategy · 7 min readROE vs ROIC vs ROCE vs ROA: Which Return Metric Actually MattersROE, ROIC, ROCE and ROA all measure the same broad thing: how much profit a company earns on the money it needs to invest. But each uses a different pool of capital. That single difference is why the same company can look brilliant on one metric and ordinary oReturns on Capital · 8 min readWhat Is an Economic Moat?An economic moat is a durable competitive advantage that lets a company defend its profits from competitors for years. The name comes from the water-filled moat around a medieval castle: the wider the moat, the harder the castle is to attack. A company with a Economic Moats · 8 min readWide-Moat Stocks: What They Are and How to Find ThemA wide-moat stock is a company with a durable competitive advantage, an "economic moat," that protects its profits from rivals for many years, often 20 years or more. The word "wide" is about durability: how long the advantage is expected to last, not how stroEconomic Moats · 5 min readWhat Is ROIC and How Is It Calculated?Return on invested capital (ROIC) measures how much after-tax operating profit a company earns on the capital it puts to work. It answers one question: for every dollar the business invests in factories, software, inventory and working capital, how many cents Returns on Capital · 5 min readWhat Is a Stock Rating?A stock rating condenses a company's fundamentals and its stock's behavior into a single score, so you can compare many companies at a glance.
Ratings come in two kinds: analyst ratings written by people, and quantitative ratings built by a model. MoatMint's iQuality & Compounders · 5 min read