Economic Moat
The competitive advantage that one company has over other companies in the same industry. This term was coined by renowned investor Warren Buffett. Investopedia Says:
The wider the moat, the larger and more sustainable the competitive advantage. By having a well-known brand name, pricing power and a large portion of market demand, a company with a wide moat possesses characteristics that act as barriers against other companies wanting to enter into the industry. Related Terms:
Absolute Advantage
Comparative Advantage
Economies Of Scale
First Mover
Masterbrand
Patent Reexamination
Soft Economic Moat
Switching Costs
Value Proposition
Warren Buffett |