For investors seeking a steady stream of passive income, dividend stocks are usually the go-to option. Yet many once-revered income investments have disappointed shareholders in recent years.

With the pandemic disrupting almost every industry, dividends have been cut, or even cancelled, as companies aim to build up cash reserves. And now that inflation is wreaking havoc, this trend continues to plague income portfolios.

So I can’t help but get excited when looking at two businesses that have not only maintained shareholder payouts but also continue to grow them in all this chaos. Let’s take a closer look at what seems to be money-making machines.

Putting other dividend stocks to shame

While the e-commerce industry is suffering from the consumer spending slowdown, outlay on ancillary services like warehousing remains strong. Or at least, that’s the impression I’m getting when looking at LondonMetric Property (LSE:LMP).

The company owns and leases urban logistics centres to online retailers, including industry titans such as Amazon. Its property portfolio spans 17 million square feet with a 99% occupancy rate and an average lease agreement lasting 12 years.

Consequently, the group’s £143m annual rental income has proven exceptionally resilient to external forces. And this has resulted in dividends expanding every year since 2018, reaching a yield of 5.4% today.

Needless to say, seeing payout growth paired with reliability is an encouraging sign. But the dividend stock is far from risk-free. Acquiring and maintaining industrial real estate isn’t cheap. And it’s led to a pretty unimpressive £1bn pile of debt on its balance sheet.

With interest rates on the rise, the pressure on margins is mounting. While management has hedged and fixed the vast majority of its loans, further rate hikes could impact future shareholder payments. That’s probably why the share price has tumbled by nearly 30% in the last 12 months.

But with the valuation trading at a P/E ratio of just 2.2, I feel investors may have oversold this business, potentially creating a buying opportunity. And it’s one that I personally would have already acted upon if it weren’t for another similar dividend stock already in my portfolio.

Another real estate opportunity?

Continuing the warehousing theme, another promising income play that’s already made its way into my portfolio is Warehouse REIT (LSE:WHR).

Much like LondonMetric Property, the group acquires and leases warehousing space, predominantly to e-commerce enterprises. The key difference between the two is the target audience. Warehouse REIT focuses on serving small- and medium-sized businesses carving out an often-underserved niche.

Smaller-scale clients do introduce additional risk with a shorter average lease term of 5.6 years. And like other warehouse operators, the debt balance does represent a significant chunk of its capital structure.

Yet management’s strategy of acquiring run-down but well-positioned warehouses for renovation seems to be paying off. The group has successfully raised shareholder dividends every year since going public in 2017. And despite being a young enterprise, it’s already become a member of the FTSE 250 index.

With Warehouse REIT shares offering an impressive 5.7% yield today, the income prospects of this dividend stock seem to outweigh the risks. At least, that’s what I think. And that’s why I might decide to increase my existing stake once I have more capital to invest.

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Zaven Boyrazian has positions in Warehouse REIT. The Motley Fool UK has recommended LondonMetric Property PLC and Warehouse REIT. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Making a million in a Stocks and Shares ISA is far more realistic than many investors believe. Obviously, the economic conditions today make for a choppy stock market. But zooming out and taking a long-term perspective reveals a perfect track record of recovery from every crash and correction in history.

That’s why I believe right now could be the perfect time to start buying a diversified collection of top-notch companies at an excellent price. Providing I take a disciplined approach and make some prudent decisions, my ISA could have an impressive seven-figure balance in the long run.

Investing in millionaire-making shares

A common misconception among newer investors seeking to become millionaires is to focus on the cheapest, fastest-growing stocks. While that can lead to some success, it usually lands people into the realm of penny stocks, where they’re more likely to destroy wealth rather than create it.

Why? Because while some penny stocks have a reputation for achieving impressive growth, most lack another critical characteristic of a successful investment – value.

The lacklustre financials of these tiny, usually-unprofitable businesses make them highly susceptible to external factors such as rising interest rates and inflation. As such, there are countless examples throughout history of penny stocks surging right before they collapse into nothingness.

Needless to say, that’s not a great recipe for making a million in my Stocks and Shares ISA. Instead, focusing on high-quality, established enterprises with attractive long-term prospects could yield better results.

The growth may certainly be slower. But buying shares in a company that can consistently expand for decades is how investors like Warren Buffett became billionaires. Moreover, thanks to the 2022 stock market correction, many of these fanatic businesses are trading significantly below their intrinsic value.

In other words, now might be the perfect time to start investing if I’m aiming for £1m.

Diversifying my Stocks and Shares ISA

Even if I can successfully identify the best shares to buy today, there’s no guarantee they will stay that way in the future. After all, industry leaders are susceptible to disruption. And not all succeed in retaining their throne, whether it be from internal or external forces.

That’s why diversification, in my opinion, is critical for success. By owning a diverse collection of solid companies rather than a handful, my portfolio’s exposure to an underperforming investment is reduced. And by ensuring my investments are scattered across multiple industries, I can also reduce the impact of any sector-specific risk.

Suppose I’m starting from scratch investing £750 each month into high-quality companies and can achieve a 10% average annualised return? In that case, my portfolio would hit the £1m threshold in just over 25 years.

Of course, even a diversified portfolio is never risk-free. 2022 has demonstrated that perfectly, with the FTSE 250 dropping by nearly a third, despite having 250 stocks in it.

Crashes and corrections are an unavoidable part of investing. And more will undoubtedly happen again in the future. As such, it may take considerably longer for my Stocks and Shares ISA to enter millionaire territory.

Nevertheless, given the potential long-term rewards, I feel it’s a risk worth taking.

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Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

With the stock market seemingly in freefall this year, investing in shares to build a passive income may seem like madness to some.

There are undoubtedly companies facing the heat of macroeconomic factors. Yet many have sufficient resources at their disposal to weather the storm. And when the stock market eventually recovers, as it has done in every previous correction or crash, these businesses can once again resume their growth and value-generating trajectories.

In other words, buying today while prices are cheap could send my portfolio through the roof in the next couple of years. And even accelerate its journey towards millionaire territory.

Let’s explore how I can leverage today’s stock market environment to eventually make £5,000 appear in my bank account each month.

Building a four-digit monthly passive income

The prospect of sitting on a sunny beach with a mojito and watching the money roll in without having to lift a finger sounds delightful. But there are a few steps that need to be taken before arriving at this destination.

A passive income through the stock market typically comes in the form of dividends. And, on average, dividend-paying stocks offer a yield of around 4%. Several high-quality companies are offering more. So a carefully selected portfolio could realistically generate a 5% yield without compromising reliability.

However, this quickly highlights a financial barrier. At a 5% yield, my portfolio would need to be worth £1.2m to generate my desired £5,000 monthly passive income. And that’s not exactly pocket change. Fortunately, building such a large portfolio in the long run isn’t as impossible as many think.

The FTSE 250 is down a horrendous 28% so far this year. But, historically, the index has actually delivered returns of around 11.3% annually after dividends. Assuming this performance can continue, sparing just £500 from my monthly salary for investing would enable me to build a £1.2m in around 28 years, if I were starting from scratch today.

Understanding the risk

Waiting nearly three decades to hit my passive income goal is obviously frustrating. And I may end up having to wait even longer.

After all, there is no guarantee the FTSE 250 will resume its historical rate of return once the current stock market correction is over. And even if my average return drops by just one percent, it could add years to the waiting time.

Of course, the opposite is also true. With so many top-notch UK shares trading at dirt-cheap discounts, my average return could increase, potentially reducing the waiting time by several years.

In other words, the future performance of my portfolio is shrouded in uncertainty. And it’s only exacerbated by the high likelihood of multiple stock market crashes and corrections in the future.

Depending on the timing of these events, my passive income portfolio could see enormous chunks of value wiped out that could take years to recover from. This is especially true if a once-thriving business in my portfolio is brought low because of an external force. Just look at what happened to travel stocks in 2020.

But even with this in mind, earning a prospective £5,000 a month makes for a lovely retirement plan, in my opinion. That’s why I believe it’s a worthwhile endeavour, especially with the stock market offering such a low entry point today.

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The ongoing stock market correction has created quite a catalogue of UK shares trading at seemingly dirt-cheap prices.

For some, the drop in market capitalisation may be justified. After all, we’ve just had a decade of near-zero-percent interest rates. And many FTSE 100, as well as FTSE 250 companies, overleveraged themselves, making the impact of rising interest rates cataclysmic.

Yet the spike in stock market pessimism this year hasn’t discriminated. Consequently, it’s not just low-quality shares being hammered into the ground but top-notch enterprises as well. And as every long-term investor knows, buying a terrific business at a fantastic price is a proven recipe for wealth generation.

UK shares vs panicking investors

Since the start of the year, being a shareholder has undoubtedly been tough. The FTSE 100 has shown some resilience, only dropping by around 7%. Yet the same can’t be said for the FTSE 250, which is down a whopping 28%!

The latter index consists of smaller businesses with fewer resources to weather today’s economic storm. So the stark contrast in price performance for these UK shares is hardly unexpected. And we’ve already seen some businesses like Cineworld’s collapse in the wake of rising interest rates.

But does that mean every company on the London Stock Exchange is doomed? Certainly not.

We’ve been through corrections and crashes before. And on every occasion, the stock market has eventually recovered before reaching new record highs.

As the UK’s economic outlook slowly improves in the long term, so will investor sentiment. And for the individuals who bought undervalued high-quality shares, this return of optimism can translate into spectacular portfolio returns.

Portfolio risk management

Buying UK shares during a stock market correction might be the key to unlocking wealth. But that doesn’t mean it’s risk-free. Even the best businesses today are still at risk of failing if another unpredictable spanner is thrown into the works.

Therefore, putting all my eggs in one basket is probably not a sensible investment decision. Instead, diversifying my capital across multiple UK shares that I’m confident will thrive during and after the stock market recovery will likely yield the best results. That way, should one company fail, the damage to my portfolio is mitigated.

Furthermore, while I can confidently say that a stock market recovery is on its way, its anyone’s best guess when it might start. And suppose inflation continues to worsen in the meantime? In that case, it could continue to send stocks firmly in the wrong direction, creating more undesirable volatility.

Further buying tactics like pound-cost-averaging can help reduce the level of risk exposure. But even with these strategies deployed, it may be impossible for me to avoid risk entirely.

Yet if I have patience, buying the best, cheap UK shares in November while investor sentiment remains weak could propel my portfolio to record levels in the long run.

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It’s been a rough year for FTSE 250 shares. Following the ongoing uncertainty surrounding the economy, the index has seen its level plummet by nearly 30% since 2022 began (and 25% over 12 months). That’s considerably more volatility than the FTSE 100 has experienced by comparison. Although the latter does house larger enterprises that are proving more resilient to rising interest rates and inflation.

Yet, a double-digit decline in a stock market index is pretty rare. And while it’s unpleasant right now, history has shown countless times that buying when stocks are cheap is a recipe for long-term wealth generation.

That’s why I can’t help but see this price correction as a golden opportunity to snatch up some bargains for my portfolio.

Investing in the FTSE 250 during volatility

Regardless of what the economy is doing, the core principle of long-term investing remains unchanged. Buy and hold high-quality businesses with talented management and robust balance sheets. The latter is crucial right now since rising interest rates make access to external capital far more expensive than a year ago.

However, we’ve seen that even the most financially sound companies have been caught in the panic-selling crossfire lately. And with further political uncertainty surrounding the British government, this volatility may not be going away anytime soon.

Therefore, even if I find some of the best beaten-down FTSE 250 shares to buy today, these stocks may continue to tumble further. That’s why I believe deploying a pound-cost-averaging buying strategy is paramount.

Instead of investing all my capital in one lump sum, I have and will continue to drip-feed capital into my investments over several months.

Why? Because suppose the stock prices of these terrific businesses continue to fall on the back of emotionally-driven decision making? In that case, I retain the financial flexibility to capitalise on even better prices for my portfolio, bringing down my average cost basis. Moreover, this tactic also improves my odds of buying when the stock market eventually hits the bottom rather than trying to pinpoint the exact date.

Managing risk

Beyond spreading my buying activity, diversification is another risk-reduction strategy to protect my portfolio during these volatile times.

No matter the size, every company in the FTSE 250 has to overcome challenges and threats. And not every business will be successful. Just take a look at what happened to Cineworld. The world’s second-largest cinema chain collapsed despite being a thriving growth stock just a few years ago.

Whether it’s an external force like a global pandemic or an internal problem like a lost contract, diversification helps my portfolio absorb the impact of failure. And with the cost-of-living crisis sending consumer spending off a cliff, the risk of failure is undoubtedly rising today.

Having said that, by maintaining a diversified portfolio of high-quality shares and taking advantage of dirt-cheap valuations, I improve the odds of achieving impressive long-term returns for my portfolio.

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Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Generating a passive income from dividend shares to replace my monthly salary sounds a bit fanciful. After all, the ongoing stock market correction perfectly highlights the risks of holding stocks, even the large-caps.

While rising interest rates do make savings accounts a bit more attractive, they still pale in comparison with the yields of high-quality dividend-paying stocks. And with all the chaos circulating the UK bond market right now, buying equities remains the best income-building strategy, in my mind, even with the heightened volatility.

So if I wanted to generate a salary-sized income in the stock market, how would I do it?

Building a resilient income with dividend shares

The biggest priority for any source of income (beyond its size) is reliability. Investing in stocks that pay a handsome dividend today is worthless if the payouts will stop tomorrow. That’s why accessing a company’s ability to provide a steady income stream is paramount before becoming a shareholder.

Fortunately, assessing the affordability of dividends is relatively straightforward. I can just compare the total amount paid with the group’s net income – both of which can be found on the cash flow statement. Suppose payouts are easily covered by earnings? In that case, it suggests the business can maintain my stream of passive income even if short-term disruptions cause sales to suffer.

Beyond offering a lucrative income today, I want to invest in dividend shares that can grow their payouts over time. Over the long term, a business capable of continuously increasing its dividends can profoundly impact my wealth.

Case and point, Coca-Cola has increased its dividends for more than 60 consecutive years. As such, Warren Buffett’s original investment back in 1988 now generates a 52% annualised yield!

Diversifying the income stream

As tempting as it may seem to find and buy the best dividend shares today, it’s worth remembering the importance of industry diversification. Some sectors are highly cyclical and can experience prolonged challenging periods during which dividend growth could grind to a halt.

We’ve already started seeing signs of this in 2022. With the cost-of-living crisis sending consumer spending down the toilet, the cash flow of many businesses is beginning to feel the pressure, including industry titans. And for some, dividends have been cut, or suspended, to maintain financial health.

Don’t forget dividends are paid at the discretion of management from a pool of excess earnings. And if those funds dry up, shareholder payouts usually follow. Therefore, it’s critical to diversify across multiple high-quality enterprises. That way, if one should falter, the others can mitigate the impact and keep the money flowing into my bank account.

Replacing my salary with dividend shares isn’t going to happen overnight. But, given time, compounding can do its magic. And with a large enough nest egg, even a 4% portfolio yield can be enough to substitute my earnings.

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Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

With UK income bonds collapsing in September, FTSE 100 shares look even more enticing today. Obviously, the stock market has been no stranger to volatility in 2022. Yet plenty of excellent businesses within the flagship UK index have seen their share prices tumble, despite showing resilience to the troubling macroeconomic factors.

That’s why, personally, I can’t help but think there are buying opportunities for my portfolio. Even more so when looking at the dividend prospects for the FTSE 100. Following its 8% decline over the last 12 months, the index is expected to offer an enticing 4.1% yield by the end of the year.

That’s the highest it’s been since the pandemic started. So how can I capitalise on this passive income opportunity for my portfolio?

Unlocking passive income with FTSE 100 shares

As mentioned, FTSE 100 shares are expected to offer an average yield of 4.1% this year. Obviously, with economic uncertainty plaguing the markets, there is no guarantee that this level will be hit. And depending on the severity of inflationary pressures, the yield may fall as companies cut shareholder payouts.

Having said that, should the macroeconomic environment improve, the opposite is also true. The steady recovery of consumer spending could propel businesses back into growth mode, unlocking an even higher yield.

Even with this uncertainty looming over the markets, FTSE 100 shares appear to be a more attractive passive income opportunity than bonds. The sudden spike in interest rates may make the latter seem more lucrative. But with so many companies still reeling from the effects of the pandemic, there are growing fears that default rates could soon be on the rise.

Investing in a careful selection of income bonds would likely mitigate this risk. Yet I’m sceptical that these higher-quality debt instruments can offer the same yield as the FTSE 100 this year.

Risk versus reward

While top-tier income bonds might not be as lucrative as stocks, they remain far less risky. Don’t forget repayment of debt obligations has a far higher priority for businesses than shareholder dividends. And if the current inflationary environment worsens, the pool of excess earnings used for shareholder payouts may begin to dry up.

In other words, volatility in the stock market might be here to stay for a while. That obviously introduces additional risk to the investor’s portfolio.

Fortunately, a lot of this risk can be mitigated through diversification. What’s more, as bleak as the situation seems, it’s worth remembering that the stock market has a perfect track record of recovering from the worst economic catastrophes. And I’m pretty confident that’s not about to change.

That’s why I believe some of the best FTSE 100 shares today could end up being highly lucrative investments in the long term, both in terms of dividends and share price appreciation.

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Investing £20k in my Stocks and Shares ISA could prove to be quite a profitable strategy in the long term. Beyond the tax benefits of using this special account, an investor like me is in the middle of a rare buying opportunity – even if it doesn’t seem like it.

The stock market has had quite a tantrum so far this year. But as most industry titans have shown resilience, the FTSE 100 is only down by around 8%. Yet smaller-cap indices like the FTSE 250 and FTSE AIM All-Share have suffered spectacular double-digit declines since the start of 2022.

Many UK shares are falling as rising inflation and interest rates dominate headlines. So, now might seem like a bad time to do some shopping. But as famous contrarian investor Baron Rothschild once said: “The time to buy is when there’s blood on the streets, even if the blood is your own”.

Investing via a Stocks and Shares ISA

To many, the threat of a looming recession shouldn’t be casually dismissed. Yet as a long-term investor, I have the luxury of being able to do just that. Providing the underlying businesses in my portfolio remain uncompromised, falling stock prices look like nothing but buying opportunities in my eyes.

Obviously, there are companies out there in serious trouble. After all, rising interest rates create massive problems for overleveraged enterprises. That’s especially true for those with restricted cash flow courtesy of pandemic disruptions.

But not every stock falls into this category. There are countless enterprises whose revenue streams are being impacted. Yet many have sufficient resources to weather the storm and continue executing their long-term strategies. That’s why the stock market has a perfect track record of recovering from every financial disaster since its inception in 1611.

In other words, given time, many of the UK shares being bashed into the ground today could deliver lucrative long-term returns thanks to the dirt-cheap valuations. What’s more, by using a Stocks and Shares ISA, these potential long-term gains are entirely protected from the taxman.

Understanding the risk

Investing in the stock market is never risk-free. And buying during a time of heightened volatility only amplifies this risk. At least in the short term.

With UK shares currently being moved by emotion rather than logic, prices may continue to tumble further, especially if more bad news emerges about the economy. As such, it’s impossible to say when the stock market recovery will begin.

Therefore, investing £20k in my Stocks and Shares ISA today as a lump sum may not be the best idea. Instead, if I had this capital at hand, I would slowly drip-feed it into high-quality businesses over several months. Why? Because if stocks fall further, then I can buy more at an even better price.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

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Over the past couple of decades, Warren Buffett’s long-term buy-and-hold strategy has proven to be immensely successful. Even during various extreme macroeconomic climates. So it’s odd that the billionaire investor hasn’t bought any buy-to-let properties over the years like many of his peers.

Apart from owning a few real estate investment trusts (REITs) through Berkshire Hathaway, the ‘Oracle of Omaha’ hasn’t really ventured into this space. And that’s despite his investing partner, Charlie Munger, making his fortune in this sector. Why?

Warren Buffett versus buy-to-let

Buffett’s lack of interest in the property sector has less to do with his well-known circle of competence. But rather the challenges and headaches associated with being a landlord.

Buying a rental property in the long term can be immensely profitable. With the monthly income generated more than covering the mortgage payments and house prices typically remaining stable during economic wobbles, buy-to-let certainly seems like an enticing idea.

But it’s worth remembering that house prices don’t always go up. And despite many real estate investors spending time researching the location, and long-term development prospects, macro-factors like interest rates have thrown quite a spanner in the works this year.

What’s more, even if property values remain strong, managing a property can be a real pain. Let’s not forget that landlords have to deal with repairs, late payments on rent, and in the worst-case scenario, evictions. The latter two can be particularly problematic if they rely on rental income to cover mortgage payments.

Pairing all this with all the additional complications of ever-changing tax and regulatory requirements for landlords, it’s not surprising that Buffett hasn’t ventured into the buy-to-let space.

Investing in the stock market for the long term

On the other hand, buying shares is far less problematic, at least from a managerial perspective.

Owning a robust portfolio of top-notch businesses offering a sustainable dividend can yield similar returns as buy-to-let. The key difference is it’s a far more hands-off approach to building wealth. After all, shareholders aren’t involved in the everyday running of their businesses.

Plus, even if investors are keen to own real estate, buying shares in a REIT, as Buffett has done, is often seen as a viable alternative. And one that opens the door to owning industrial properties like warehouses, hospitals, and retail parks that a standard mortgage would never be able to cover.

Of course, investing in high-quality shares is far from risk-free. As 2022 has perfectly demonstrated, the stock market can be a volatile place. And even REITs have been hit hard lately.

However, for many businesses, their long-term strategies remain intact. Providing they have the fundamentals to support operations during the ongoing storm, today’s depressed prices offer some exciting buying opportunities for my portfolio. And it would seem Buffett agrees since he’s spent over $50bn buying shares so far this year.

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With inflation still putting pressure on stock markets worldwide, finding the best shares to buy is proving tricky. It seems even the best businesses are being hammered into the ground today, making life tough for equity investors.

But as frustrating and painful as things are today, there could be countless lucrative long-term buying opportunities for my portfolio. Let’s not forget the stock market has a 100% track record of recovering from even the most horrendous economic catastrophes. And I’m fairly confident that’s not about to change.

With that in mind, how can I find the best investment opportunities for my portfolio today, next year, and beyond?

The impact of inflation

Inflation itself isn’t what’s causing stock prices to plummet. Instead, it’s the side effects of inflation that’s got everyone in a huff.

To combat rising prices, central banks have begun raising interest rates. And while there are other factors at play, this appears to be the primary culprit behind the volatility currently plaguing the markets.

Increased rates with further hikes likely on the horizon are making debt increasingly expensive for consumers and businesses alike. It’s particularly problematic for companies that have become reliant on debt financing, especially during the pandemic. After all, higher interest rates mean a higher cost of servicing debt, resulting in tighter profit margins.

The situation is obviously bad for many over-leveraged businesses. But, fortunately, there are plenty of companies that remain financially sound. And even those with loan liabilities to contend with may be unaffected by the macroeconomic environment if the interest rates on their debts have been fixed.

Despite this, many have been caught in the panic-selling crossfire. Yet, in my experience, this is how long-term buying opportunities are formed. And that’s where I believe I can find some of the best shares to buy.

How to find the winners

Having a strong balance sheet is obviously a good start. But what’s even better is finding companies that also have sufficient resources to outpace their struggling competitors.

The current investing environment highlights the importance of maintaining a vast collection of competitive advantages. While sales volumes may suffer in the short term as consumer spending slows, creating barriers to prevent rivals from stealing market share is critical for long-term success. Moreover, these advantages can even be used to capitalise on weakened opponents to steal their customers away.

Finding businesses capable of leveraging a competitive moat is obviously easier said than done. Not to mention that a random external force could de-rail the entire process.

Needless to say, finding the best shares to buy is a difficult endeavour fraught with risk. That’s even more true today, with stock prices seemingly in free-fall. But by focusing on the groups in good financial health with a wide competitive moat, I can certainly narrow down the search.

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Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.