08.06.2025

Opportunities in Turbulent Times: Moat Stocks as an Attractive Investment Opportunity

The discussion about fallen moat stocks is particularly relevant for private investors, as times of crisis often offer attractive entry opportunities. Moat stocks – meaning stocks of companies with sustainable competitive advantages (‘moat’) – are often more resilient to market turbulence and can achieve above-average long-term returns.

What are Moat Stocks?

Moat stocks are characterized by the following features:

  • Sustainable competitive advantages: Patents, strong brands, economies of scale, or network effects protect the business model from competition.
  • Stable cash flows and balance sheets: Solid financial figures enable companies to invest even in times of crisis and to pay dividends.
  • Long-term perspective: Companies have a history of wise capital allocation and benefit from long-term growth trends.

Opportunities from the Crisis

In times of crisis, even successful companies come under pressure: Scandals, product recalls or profit warnings lead to price setbacks. For investors, this can be an opportunity to acquire high-quality stocks at low prices. Especially interesting are:

  • Fallen successful companies: Many well-known names like L’Oréal, Nestlé or Roche offer attractive valuations again after short-term problems while maintaining a robust business model.
  • Attractive valuations: After sell-offs, many stocks are significantly below their highs – this increases the chance of long-term value appreciation.

Examples of Attractive Moat Stocks

According to current analyses, the following companies are considered particularly interesting:

Name Industry Special Features
L’Oréal Consumer Goods Strong brand, global presence
Nestlé Food Diversified portfolio
Roche Pharmaceuticals Innovative medications
Allianz Insurance Stable balance sheet, high dividend
Munich Re Reinsurance Attractive PE ratio (~12), dividend

International corporations like Apple, Microsoft or Amazon are also frequently referred to as “stocks for eternity” – they also provide a wide moat through technological leadership and strong cash flows.

What Should Investors Pay Attention To?

When buying fallen moat stocks, the following is important:

  • Examine the business model: The core business should still be intact.
  • Financial robustness: High cash flows and stable balance sheets help withstand crisis situations.
  • Quality of management: Proactive leadership is crucial for long-term success.
  • Diversification: Don’t put everything on one card – broad distribution reduces risk.
  • Investment horizon: Holding for at least five to ten years is advisable for quality stocks.

“Quality takes time. We recommend a minimum investment horizon of five years.” (Handelsblatt)

Conclusion

Price setbacks caused by crises in moat companies offer private investors the chance for attractive entries into high-quality stocks. Those who rely on solid business models and are willing to have a longer investment horizon can thus participate in the recovery and benefit long-term. The current discussion reflects both general market developments and corporate news.