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Making a Moat with 'Efficient Scale'

Serving a naturally limited market can be a source of competitive advantage, or economic moat, says Morningstar's Paul Larson.

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Jason Stipp: I'm Jason Stipp for Morningstar.

If you are a regular reader on Morningstar.com, you know that our analysts spend a lot of time thinking about economic moats, and they recently came up with another explicit source of economic moat.

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