Tag Archives: economic moat
One Year Live: The S&P 500 Economic Moat Index Outperforms Its Benchmark
Long before Warren Buffett popularized the term “economic moat” in his 1986 “Berkshire Hathaway Letter to Shareholders,”1 savvy investors have zealously sought out businesses with sustainable competitive advantages. On April 15, 2024, S&P Dow Jones Indices (S&P DJI) took a pioneering step by introducing a purely systematic approach to identify and track companies possessing this…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
The Quantitative Metrics for Identifying an Economic Moat
In our previous blog, we introduced the newly launched S&P 500® Economic Moat Index by reviewing its methodology, index characteristics and historical performance. In this blog, we will examine the specific quantitative metrics used to identify the companies with the widest economic moats. Furthermore, we will discuss the complementary nature of the metrics, which has…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
Identifying Economic Moats Using a Quantitative Lens: The S&P 500 Economic Moat Index
Popularized by Warren Buffett, the term economic moat refers to a company’s sustainable competitive advantage that allows it to preserve market share and generate high profits over the long term. In this analogy, companies are compared to medieval castles surrounded by deep and wide moats, which protected the castles from attack. In the same way,…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags