In the days of days of old, when the armies marched into new lands, the first construction was a fort with a moat or areas where the commanders believed the fort would have a competitive advantage over the enemy and would be considered safe. Most of the time it was true, the forts were constructed where the enemy would not go, but sometimes the enemy goes where it is not expected. Think of the Lawrence of Arabia movie – they came across the desert because the other side did not expect them to come across the desert. Companies who consistently make money have solid moats or defences that make it very hard for them not to make money. Although things do change with technology or the companies have to have “bad” management or a combination of other things.

According to data from Morningstar some companies to consider for they have demonstrated advantages Morningstar examined 5 year annualized growth rate of earnings per share; one year total return; and upward revisions by analysts over the past 90 days. The companies are Visa, Comcast, Intuitive Surgical, Home Depot, Express Scripts Holding, Amgen, Starbucks, ebay, Walt Disney, Magellan Midstream Partners, Dun and Bradstreet, Blackrock, Philip Morris International, Brown-Forman, Franklin Resources, ONEOK Partners, Mondelez International, T Rowe Price, Fiserv, and Wal-mart. All of these companies have done well in the past and are continuing to do well.

Linking to dividend producing stocks – each of the above have a vast number of competitors, but they also have a large advantage over their competitors. It can shrink, they are dependent of a variety of expectations in the economy, but if you look at each of them and determine why their model works, you can occasionally check to determine if it is continuing to work. If you are satisfied it is working, then you have the luxury of not doing anything. If the model is not working then you have adjust your holdings.

There are more questions than answers, till next time – to raising questions.