Understanding Moat Strength & Tariff Score: How to Spot Long-Term Winners

New Features Introduction - GuruFocus has added Mode Score and Tariff Score to stock analysis, accessible on stock pages within the profitability rank box [1][2] - Mode Score ranks a company's long-term competitive advantage, considering factors like leadership, lower costs, IP, and switching costs [3][4][5] - Tariff Score indicates how much a company is affected by tariffs, considering where products are made and the nature of the product (e.g., software vs physical goods) [7][8][9] Scoring and Ranking - Both Mode Score and Tariff Score range from 1 to 10, with a score of 8 or above considered high [10] - AI is used to assist with the ranking of the Tariff Score [9] - The platform allows filtering for companies based on Mode Score and Tariff Resilience Score [13][14] Examples and Analysis - Microsoft has a high Mode Score due to its dominant market position, strong brand, network effects, high switching costs, valuable IP, and consistent innovation [6][7] - Tesla has a Tariff Score of 4, indicating it is significantly impacted by tariffs, with approximately 20% of their cars being manufactured outside the US [11][12] - Amazon has a wide Mode Score of 9 due to its dominant market position, strong network effects, customer loyalty, and economies of scale, and its vast global supply chain helps mitigate tariff impacts [14][15] Investment Strategy - Combining Mode Score, Tariff Score, profitability rank, and growth rank can identify high-quality companies for investment [16][17] - Companies with high ranks in profitability and growth often exhibit consistent business performance and high profit margins [17][18] Platform Access - Mode Score and Tariff Score can be found on the GuruFocus website within the profitability rank box for each stock [20] - Links explaining the ranking details will be added to the platform [20][21]