News that mad-keen monarchist and Australian Prime Minister Tony Abbott has decided to turn the clock back 30 years and restore the British honours system of knights and dames had me thinking why not go a step further and introduce the honours for Australia's most outstanding companies?
Perhaps we could do away with chief executives and boardrooms and revert to kings, queens and courts? Here are a few selections to join Dame Edna Everage and the like.
One company perhaps stuck in a time warp and hopeful of some Abbot patronage is Qantas Airways Limited (ASX: QAN). This business would happily live on past glories and is a fitting candidate for the first foolish knighthood.
On the other side of the ledger in the battle for political support is Virgin Australia Holdings Ltd (ASX: VAH). Its combative approach to cost-cutting and support received from foreign owners has really thrown down the gauntlet to Qantas who have been slow to react. Investors are advised to watch this duel from the sidelines, as actively supporting either side may prove detrimental to a portfolio's performance.
Next up is giant Anglo-Australian BHP Billiton Limited (ASX: BHP), dual listed in Australia and the UK it looks the kind of business likely to catch the prime minster's eye of approval. It's a profit-generating machine that would represent a royal addition to any investor's family of businesses.
Another likely candidate is News Corp (ASX: NWS). Its strong support of the prime minister and his traditionalist tendencies means it could be expected to do well in a fantasy court of King Tony. Financial performance has been mixed recently but it certainly has the influence and power to deliver long-term results for investors.
Once state owned but now sold off is CSL Limited (ASX: CSL). It certainly fits the bill of outstanding service and performance to shareholders. A biotechnology superstar that shows just what's possible through top-class Australian science and ingenuity, it fully deserves its Foolish knighthood.
What's more is that it already has its own impressive ready-made moat, meaning this newly made knight should remain king of its castle.
Foolish takeaway
Moats to defend advantages are important to companies, knights and perhaps prime ministers alike, maybe Mr.Abbot wants to build some moats to stop the boats? Either way, the investing fundamentals remain the same, always look for great companies with sound management, wide moats, and bright futures.
