The competitive advantage that one company has over other companies in the same industry. This term was coined by renowned investor Warren Buffett.
I'm a MOAT guy. In fact, when I invest into any company, my 1st criteria will be MOAT. I will spend all my time researching on the MOAT before I crunch through the financial numbers. Sometimes I see the MOAT so huge, I go through the financial numbers just for the fun of it, you know, just to make yourself feel good you did your homework tho you really didn't put in the effort.
I have 2 recommendations as of this time. Most of my previous recommendations has soared past beyond my fair value, I have already shifted my capital.
As now today 14 May 2015, I keep hearing people talk about recession is coming, the big drop is coming, I'm waiting for the big drop. I have that worry too, however they focus too much on that shit, they don't see what is happening right infront of their eyes. There are 2 industries which I know off, are in recession now.
Number 1: Gambling Industry
Since China crack down, profits down. Macau's casino are being hit. Most gaming stocks are down so bad. To me, that's a recession. The biggest player in that sector would be non other then Las Vegas Sands (LVS).
I have about 20% of my portfolio in LVS right now, and won't capital allocate till I see a better deal. They just raised their dividends.
Number 2: Energy Sector
Oil prices has plunge. The whole sector is down. Looking at the energy sector, I was looking at which company has the biggest moat. Well, it turn out to be National Oil Vargo (NOV) They too have perfect track record weathering through such tough times.
I have about 50% of my portfolio vested into NOV. Happily collecting dividends every quarterly. I trade options on NOV every month to generate extra cash. I will be in this for the long haul.
This post is pretty important so I'm placing this as one of my articles too