IN THIS EPISODE, YOU’LL LEARN:

• What it means for a company to have a wide economic moat.
• Why a wide moat is critical to assess and succeed as an investor.
• Why technology companies offer some of the most attractive opportunities for value investors.
• Why Clay believes that Alphabet and Amazon offer good value in today’s market.
• Why Amazon is a “forever hold” for legendary investors like Nick Sleep and Bill Miller.
• What super investors have taken positions in Alphabet and Amazon.
• What makes S&P Global and Sherwin Williams both companies with very strong moats.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:03] Clay Finck: Welcome to The Investor’s Podcast. I’m your host, clay Fink. On today’s episode, I wanted to cover four wide moat companies I think are worth the consideration for stock investors in 2023. Given we’re in a bear market and teetering on a recession, the prices of the majority of stocks are down, giving us the opportunity to potentially add to wonderful companies at discounted prices.

[00:00:27] If you’ve been following along with the show for quite some time, you know that Warren Buffett loves companies with wide moats. These are the companies that are most equipped to handle the constant disruption occurring in the capitalistic marketplace. However, even some of the widest moat and highest quality companies can be a poor investment if you pay too high of a price.

[00:00:49] So we also brought price into consideration when selecting these four companies. With that, let’s dive right in.

[00:00:59] You are listening to The Investor’s Podcast, where we study the financial markets and read the books that influence self-made billionaires the most. We keep you informed and prepared for the unexpected.

[00:01:19] Before we get into the companies I’ll be covering today, let’s make it clear what it really means for a company to have a wide moat and why it’s important for a company to have it as long-term investors. It is critical that the companies we invest in have a strong economic moat, which is simply a distinct competitive advantage that a company has over its competitors.

[00:01:41] We want to be certain that if you’re going to own a company for the next 10 or 20 years, we’re fairly certain that the company’s products or services will still be desired. Because if a company ends up getting disrupted, then it’s likely that the SOC won’t end up being a good investment. Warren Buffett says that a good business is like a strong castle with a deep moat around it.

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BOOKS AND RESOURCES

• Adam Seessel’s book: Where the Money Is.
• Listen to John Huber chatting about Amazon on Millennial Investing, or watch the video.
• Security Analysis Newsletter.
• Check out our takeaways from Warren Buffett’s Shareholder Letters. Watch the video here.
• Don’t miss Clay’s review of The Education of a Value Investor by Guy Spier. Watch the video here.

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