Digital Realty Has A Powerful Moat Of Dividend Repeatability

By Brad Thomas:

It’s hard to imagine a data center as fortress that is surrounded by a wide moat but that’s the picture that comes to my mind when I think about Digital Realty (NYSE:DLR). It’s not just my imagination however; it’s also the same picture that my good friend Mr. Market sees when he paints his continuous “dot-to-dot” renderings or what we call the “real time” price chart. Although Mr. Market oftentimes ignores the true long-term profits that are the basis for a wide moat, he eventually becomes more rational in nature and provides a more accurate representation of value.

(click to enlarge)

Remember that the term "economic moat" was coined by Warren Buffett and he popularized the use of the word "moat" as a means to describe how a castle (or fortress) can be protected against enemy threats. To Buffett, the castle is the business and the moat is the competitive


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