An economic moat isn’t just a term bandied around by top tier investors, but instead is a very real fortress that protects a company’s pricing power and sustains its margins over time.<\/p>\n
It’s no mean feat for a company to build an economic moat that stands the test of time because well-capitalized companies are always looking to encroach on their turf.<\/p>\n
A good example of such a threat was when Richard Branson launched Virgin Cola in an attempt to dislodge Coca Cola’s<\/a> grip on the market.<\/p>\n He failed, however, when it became clear that Coca Cola (NYSE:KO<\/a>)<\/strong> enjoyed a brand advantage that couldn’t easily be dislodged. Simply put, consumers flocked to their favorite cola beverage in droves and weren’t about to switch allegiances.<\/p>\n For Coca Cola, branding and global distribution channels provide a moat that few companies can compete with, let alone disrupt. <\/p>\n These days, with inflation on the rise, what other wide moat companies offer the potential to provide above-average returns?<\/p>\n