{"id":2473,"date":"2021-12-05T15:14:23","date_gmt":"2021-12-05T14:14:23","guid":{"rendered":"https:\/\/cfd-trading-blog.com\/?p=2473"},"modified":"2022-06-25T18:58:43","modified_gmt":"2022-06-25T16:58:43","slug":"burggraben-aktien-als-cfds-handeln","status":"publish","type":"post","link":"https:\/\/cfd-trading-blog.com\/en\/stock-cfd\/trading-moat-shares-as-cfds\/","title":{"rendered":"Trading moat shares as CFDs"},"content":{"rendered":"
Moat shares are special shares of companies that have a stable and future-proof business model. The term was originally coined by Warren Buffet and is nowadays popular among many investors for long-term investment. But also trading with moat shares can be interesting and complement the financial investment.<\/p>
\u00a0<\/p>
In the literal sense, a moat refers to an obstacle to approach, which was often located in the forefront of medieval castles or fortresses. The aim was to prevent enemies from entering the castle or fortress. In financial jargon, this refers to the competitive advantages that one company has over another.<\/p>
The term moat is therefore particularly popular in the context of moat stocks, which are stocks that seem to stand out from the crowd in their respective industries and are reputed to be virtually unassailable, valuable stocks. The use of the term moat shares goes back to a \"Chairman's Letter\" of the company Berkshire Hathaway from 1986, where it was used for the first time.<\/p>
\u00a0In it, Warren Buffet described an imaginary moat that quality companies would have in front of their competitors (literally: \"the moat protects a valuable business castle\"). This refers to companies with above-average stability that provide the best possible support for both wealth preservation and long-term wealth accumulation. Added to this are a secure business model and other competitive advantages.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
Anyone who decides to trade in moat shares must first identify them. The extent to which a share earns the title as a moat share (or can keep it in the long term!) depends largely on the following criteria:<\/p>
\u00a0<\/p>
In the following subsections, we would like to explain in more detail the individual criteria that should be taken into account when selecting your Burggraben shares.<\/p>
\u00a0<\/p>
This is about the special knowledge that the company in question has and has had protected against the competition, for example, with the help of patents. An example of this would be the patent recipe of the consumer goods manufacturer Coca-Cola. This category also includes particularly qualified employees or production processes that cannot be replicated by the competition.<\/p>
\u00a0<\/p>
Equally important are the laws in the country where the company operates. Here, for example, monopoly positions deliberately created by the government could be mentioned, which prohibit competition. But the sale of certain products or product variants could also be prevented by law. Ideally, the company should therefore use a sales market that is as free as possible - such as the USA.<\/p>
\u00a0<\/p>
Once a company has achieved a certain level of sales and market power, it can steadily expand its competitive advantages. The risks of launching new products on the market or opening up new markets are then also steadily reduced. This quickly creates a monopoly position that cannot be disputed by potential competitors. Google or Microsoft could be cited as examples of this.<\/p>
\u00a0<\/p>
The more sales, the greater the purchase of raw materials, services and other items that companies buy from their suppliers. This creates a certain economy of scale, which can reduce costs enormously. Accordingly, it is also important to have a good network with various suppliers, partner companies and the broadest possible customer base or sales market.<\/p>
\u00a0<\/p>
A good company stands and falls with good management. It could offer the world's best products or services. However, if the management is poor, sooner or later this inevitably affects the success of the company. Highly qualified employees in the management area must and can often recognize trends at an early stage and integrate them into the individual corporate strategy.<\/p>
\u00a0<\/p>
Large and, above all, globally active companies can accept large orders, establish new divisions, develop products and make acquisitions without, for example, having to take unnecessarily large risks. After all, where there is already substance, it is generally much more difficult for it to disappear again. The bigger the company, the better!<\/p>
\u00a0<\/p>
The choice of moat stocks is huge. Here you can find a list of 20 interesting moat stocks:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t