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Monday, August 4, 2008

About Stocks: What is an Economic Moat and Why should Stock Inve

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  from Ken Little
Investing is all about what return you can expect in the future. Where should you be looking now for companies that will lead the market in the future? Some of the old standards (large-cap stocks) will be back on game soon, but unless they radically change business models, don't expect much more than market returns. For those break-out returns, look to the new technology that will be making headlines in a few years. There are many candidates - the big drug companies are always in contention. However, I predict the next really "big thing" will be connected to alternative energy or green products. They will build huge economic moats and prosper.

 
In the Spotlight
What is an Economic Moat and Why should Stock Investors Care
Economic moats are competitive structures that help great companies continue to be great investments. Stock in a company with a substantial economic moat is usually much safer than investing in companies that have strong competitors.

 
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Understanding Bond Types
Bonds are IOUs issued by both public and private entities to cover a variety of expenses. For investors, bonds provide a cushion of stability against the unpredictability of stocks and should be a part of almost every portfolio.

 
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To paraphrase the classic movie "The Graduate," I have one word for you to think about: batteries.

 

 
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