competitive moat

Intermediate 💼 Corporate / Business

Definition

Sustainable competitive advantages that protect a company from rivals, like a medieval castle's water-filled ditch. Modern moats include brand loyalty, patents, and network effects rather than crocodiles.

Example Usage

Amazon's logistics network is their competitive moat—nobody else can afford to build that infrastructure.

Origin

Popularized by Warren Buffett in his investment philosophy

Fun Fact

Buffett's favorite moats are so wide that competitors give up before trying to cross, which is more cost-effective than actual warfare.

Source: Strategic management and investment analysis terminology

Related Terms

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