How Value Investors Should Think About Moats in 2026

In Episode 35 of The Value Investing Podcast, Lucas and Luna unpack the concept of economic moats in the current market environment. With the S&P 500 down nearly 3% in the past week and the NASDAQ off 5%, growth stocks are under pressure, and value is rotating back into favor. But not all value is created equal. The hosts examine why a wide-moat business like Berkshire Hathaway — up nearly 4% in five days — is outperforming, while narrow-moat companies in the Russell 2000 are lagging. They discuss how to identify durable competitive advantages using Morningstar's moat framework, and why moat investing has historically beaten the market over a 20-year horizon. The episode drills into specific examples like Coca-Cola's brand moat and KeyCorp's local banking moat, contrasting them with companies that trade at low multiples but lack defensibility. Lucas argues that in a flat rate environment, moat quality matters more than ever, and Luna challenges him on whether investors overpay for safety. The conversation closes with a reflection on how moats can protect against technological disruption — and a reminder that the best moat is often the one you don't have to monitor every quarter. #EconomicMoat #ValueInvesting #BerkshireHathaway #Morningstar #CocaCola #KeyCorp #Russell2000 #S&P500 #NASADOQ #CompetitiveAdvantage #LongTermInvesting #Patience #TechDisruption #FlatRateEnvironment #Finance #Investing #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo