What is the preferred video file format for iMovie? About to purchase POS digital camera w ability to record HD Video.

I am about to purchase a digital point and shoot camera with the ability to record HD video.   I plan on importing all pics and video to iPhoto and want to begin creating iMovies combining photo's and the video clips.
It seems from the many posts that .MOV is supported in iMovie, but many posts in the community seemed to suggest that .MOV does not always work in iMovie.  

YEAH, but  "iMovie" changes the "camcorder Mts" files into "mov" files and
this causes some lost of movie quality. To maintain the highest quality
camcorder movie quality you must not change the "mts" files. However, if
you want to "merge" any of your camcorder movies (and you most likely
will) any merging also changes the "mts" files to "mov" etc., so you will still
loose movie quality. "There appears to be no way to avoid loosing picture
quality once you decide to change the "Mts" files to something other".

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