Skip to Content
US Videos

Why Are Wide-Moat Stocks Underperforming?

High-quality stocks with competitive advantages should outperform during tough markets. They aren't this year.

Mentioned: , , , , ,

Susan Dziubinski: Hi, I'm Susan Dziubinski at Morningstar. At Morningstar we're fans of companies with wide economic moats. Such high-quality firms have competitive advantages that allow them to effectively fight off competitors. And because of those competitive advantages, wide-moat stocks often hold up better during market downturns. So, how are they doing so far in choppy 2022? I'm here with Morningstar's chief U.S. market strategist Dave Sekera to find out. 

Dave, first let's unpack this premise that wide-moat stocks should theoretically outperform in tough markets. What's the thinking behind that?

David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.