Investing from Israel with a U.S. brokerage account comes with unique challenges—but also big opportunities. One key to long-term success? Understanding economic moats. These competitive advantages can help you identify strong, resilient investments that stand the test of time. Instead of waiting for the perfect opportunity, knowing how moats work allows you to spot and seize them with confidence.
What is an Economic Moat – and Why Does It Matter?
An economic moat is like a fortress around a company, shielding its profits and market share from competitors. The wider and deeper the moat, the tougher it is for rivals to challenge the company’s dominance. Companies with strong moats don’t just survive, they thrive. Think of Apple, whose loyal customers gladly pay premium prices, or Costco, whose unmatched operational efficiency keeps competitors scrambling. Such businesses leverage brand loyalty, pricing power, and operational excellence, making it hard for competitors to disrupt their success.
Why Great Companies Lose Their Edge
Yet even powerful moats can weaken if companies fail to adapt. Kodak was synonymous with photography—until digital cameras reshaped the market. Blockbuster once dominated video rentals until streaming made their model obsolete. These examples highlight the risk of complacency; no moat is unbreachable if innovation stalls.
As a high-net-worth oleh with a U.S. brokerage account, remaining vigilant to your investment holdings is critical. Strategic investing is not about merely identifying a strong moat; it requires continuous assessment of its strength and durability. Strong companies consistently invest in innovation, proactively address market shifts, and prioritize customer loyalty to maintain their competitive advantage.
Invest in Great Companies
To safeguard your portfolio, consider companies that:
- Regularly reinvest in innovation and adapt proactively.
- Maintain strong brand loyalty or impose high switching costs.
- Respond swiftly to technological advancements and market trends.
Investing wisely means picking companies that not only have a strong moat but actively work to widen it.
Want to master the skill of spotting economic moats? Listen to the Goldstein on Gelt episode, “Cracking the Code of Economic Moats,” by clicking here.
The author may own mentioned securities; this is not a buy/sell recommendation.
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates provide tax or legal advice.
Published November 26, 2025.