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Why These Asset Managers Are the Only Ones With Wide Moats

We recommend long-term stock investors focus on quality over price by sticking with BlackRock and T. Rowe Price.

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Greggory Warren: Given the cyclical and secular headwinds the U.S.-based asset managers are facing, we've taken a much harder look at the moat sources, economic moats, and moat trends of the companies we cover.

At this point, we believe that only two of the U.S.-based asset managers--BlackRock and T. Rowe Price--have wide economic moats, as they not only have the ability to differentiate themselves from the competition with low-cost fund offerings and repeatable investment strategies but have demonstrated a willingness and an ability to prudently adapt to the changing competitive environment.

Greggory Warren does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.