Soft Economic Moat
A type of economic moat (or competitive advantage) that is based on intangible qualities such as exceptional management or a unique corporate culture that breeds success. Investopedia Says:
Soft moats are more difficult to identify than better-known economic moats such as brand name, pricing power, high switching costs and market share. Nevertheless, they can be a great way for companies to ward off competitive pressures.
Many would argue that Jack Welch's exceptional leadership at General Electric as the company's CEO from 1981-2001 provided GE with a soft economic moat. Related Terms:
Absolute Advantage
Comparative Advantage
Economic Moat
Economics
Value Investing
Warren Buffett |