Warren Buffett reportedly was the first to coin the term “economic moat” to describe a company’s sustainable competitive advantage. Borrowing from the “Oracle of Omaha,” Morningstar has capitalized on this concept by building an analytical framework around it. In doing so, they’ve identified five sources of moats, including intangible assets, switching costs, cost advantages, network effect, and efficient scale. In this brief interview, Elizabeth Collins, CFA, of Morningstar explains how investors can generate alpha through the disciplined application of their Moats methodology and fundamental equity valuation principles.

The Take 15 Series is a series of short interviews with leading practitioners on timely topics focused on the investment profession.