Here are the S&P 500 and Nasdaq 100 companies that had consistently high returns on equity for at least 10 years

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What’s a good starting point when looking for companies that have a good moat?

Return on equity is one way to look at how much a company earns for each dollar of its equity capital. It’s not infallible, as no number is, but over a long period, it allows an investor to compare the prospects of any two companies, regardless of industry. Jensen Investment Management, a firm that focuses its investments on companies it perceives to be high quality, screens for companies with at least a 15% return on equity for 10 consecutive years.

That’s a high but not impossible bar. MarketWatch found 79 such companies within the S&P 500 SPX and Nasdaq-100 NDX. The list includes tech stalwarts such as Apple Inc. AAPL, -0.08%, along with discount retailers Costco Wholesale Corp. COST, +0.58% and Target Corp. TGT, -0.50%, and apparel maker Nike Inc. NKE, +1.96%.

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