Do All Banks Have Moats?

Morningstar, Jim Callahan, 1 May 2006You might be surprised to hear that nearly all banks have a sustainable competitive advantage--an economic moat. Warren Buffett and Charlie Munger were surprised, too. Buffett once remarked, "Charlie and I have been surprised at how much profitability banks have, given that it seems like a commodity business."At Morningstar, we've long recognized the moats of