Evaluating Moats, Management, and Price with Todd Wenning

<p>There are thousands of publicly-traded companies for investors to choose from on any given day. What&#39;s the best way to evaluate them -- and to separate the cream from the crop?</p> <p>7investing CEO Simon Erickson recently interviewed Flyover Stocks&#39; founder Todd Wenning. Todd has spent two decades in the investing industry -- representing the buy-side with Ensemble Capital, the sell-side with Morningstar, and the retail side with The Motley Fool. He&#39;s now launched his own <a href="https://www.flyoverstocks.com/about">Flyover Stocks newsletter</a> to help investors find overlooked, quality companies.</p> <p>In the first part of the conversation, Simon asks Todd about his investing methodology. Todd describes that &quot;Strong Buy&quot; opportunities are often found at the collision of Moats, Management, and Price.</p> <p> </p> <p>A <em>moat</em> refers to a company&#39;s competitive advantage. Easy to comprehend but more challenging to quantify, moats represent an &quot;unfair advantage that makes a business sustainable.&quot; Todd explains that there are different types of moats -- such as legacy or reinvestment moats -- which should be considered as management plans out their capital allocation strategy.</p> <p>The two then discussed <em>management</em>, which they framed as capital allocation decisions. Dividends are still a popular allocation strategy, as they show a discipline and commitment to returning cash directly to investors. Management teams can also pursue acquisitions or execute strategic buybacks with their company&#39;s profit stream.</p> <p> </p> <p>In the final part of the conversation, Simon and Todd discuss why <strong>Costco</strong> (Nasdaq: COST), <strong>Old Dominion Freight Line </strong>(Nasdaq: ODFL) and <strong>Worthington Industries </strong>(NYSE: WOR) might be intriguing opportunities for investors to add to their watch list.</p> <p><em>Publicly-traded companies mentioned in this podcast include Costco, Old Dominion Freight Line, Procter &amp; Gamble, Starbucks, U