Q: If a “moat” is a set of characteristics that help to protect a company against financial or commercial harm, how can you tell if their moat is durable, defensible, and growing? As value investors, we are always on the lookout for companies that offer core value that will stand the test of time. Necessarily, their defense against devaluation or financial harm must be strong and enduring. That means we want companies that possess a set of characteristics that hardens a compa

Q: The Federal Reserve has been hiking interest rates all year. Those increases will push down demand, which is supposed to push down prices. But is it possible their enthusiasm for rate hikes will raise some costs, e.g., if higher interest rates lead to less new housing construction, will that limit supply so much that housing prices stay high or even increase? It’s certainly true that the Federal Reserve has been aggressive in raising the federal funds rate this year. It ha

The Federal Reserve has been unreservedly steadfast in its commitment to get inflation under control. So far, they’ve raised the federal funds rate six times this year – for a total increase of 375 basis points just in 2022 – with a seventh increase likely in December. They’re clearly committed to their cause. What’s less obvious is how much of this effort is working to bring down inflation now versus working with a lag, as well as how they’re going to resolve some tension be