One method for investing in stocks is trying to pick stocks which have a moat around them or protection which limits the competition. Through the limited competition, there is an ability to control prices and to ensure a reasonable return on investments which can translate into consistent dividends. As an investor you like stocks for this for they have been and continue to be long term investments. You may have wondered about the moats and such references. In times gone by, many towns were built with defenses around them – they were similar to castles but bigger. An added protection around castles were water, but you did not want to swim in the water for it was likely similar to a septic tank.

An interesting book about breaking the defenses of the castles and towns is a called Ancient and Medieval Siege Weapons by Konstantin Nossov, Lyons Press, Guilford, Connecticut, 2005. People have been building walls around their communities for centuries and the book starts with Ancient Egypt in the 23rd century BC. The book moves to the Bible stories of Joshua and the siege of Jericho. Jumping a few hundred years leads to Alexander the Great who took over many towns to expand his territory, particularly helpful was an elite detachment of the hardy and most experienced soldiers (think about Seals. In the Roman times Cesar had perfected Roman siege warfare. Included in his troops was a legion of engineers. The real secret to Roman success is having the patience and perseverance in carrying out a siege. To break a town could take years and the delicate balance of destroying crops and water supplies to starve people and managing the lands after the siege. Every hundred years or so, new weapons were developed from the ability to tunnel (have to give a distraction so nobody notices); to building moveable towers to be at the same levels as the town of the town; to large rock throwing devices to finally the cannon.

Over time, the nature of the land decided which method of attack was done. Generally most of the sieges were done in the spring and summer. It was easier to move materials and nicer for the soldiers. The two methods of capturing a fortress were an assault and a passive blockade. Each has advantages and disadvantages. For example carrying the siege engines was expensive and needed people with the discipline and knowledge how to do it. On the other hand, a passive siege tended to result in fewer lives lost. However, a passive siege allowed the other side to gather outside friendly forces to help them and lead to a squeeze of the passive army. Supply lines are something people tend to think of last, but no supplies means hungry and tired troops.

The main steps taken by the defense were to prepare for defense. Be prepared is the motto for Boy Scouts, and being prepared in terms of supplies and being independent when the gates are closed. If possible use the same tactics against the enemy. Ensure the builders monitor the walls and try to detect any undermining work. Sneak attacks to keep the attackers off balance and be prepared to fight in the streets or lose independence and never forget the treaty which protects the towns people by buying the attackers off.

Other strategies to use – use treachery. In every crowd, people have their own agendas and living is usually very high on them. Find people on the other side who will help you, usually sons who feel they could be king is a good starting point. The easiest method to win is with cunning. Using a variety of methods which the other side does not expect is a tried and true strategy. Blend into the crowd of the town you wish to siege in advance, when the main army comes, you already have help inside. An example of cunning is to lay siege and then back away as in retreat, and then attack with all the might.

Linking to dividend paying stocks, with these stocks their is a moat around them when you buy them. Sometimes it is the cost to entry, sometimes the legislation, sometimes it was the people. Understanding the reason for the moat as well as strategies to cross the moat into the castle, as long as you can see the moat is not being crossed, you can be contented to collect your dividends.

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