moats

Definition

In medieval times, a water-filled ditch that kept invaders at bay; in modern business, the metaphorical competitive advantages that protect a company from rivals trying to steal its lunch money. Warren Buffett popularized this term to describe sustainable competitive advantages like strong brands, network effects, or regulatory barriers. The wider the moat, the harder it is for competitors to storm your castle and the more VCs will swoon over your pitch deck.

Example Usage

Apple's ecosystem creates a massive moat—once you're in, switching to Android feels like moving to a foreign country without a translator.

Source: Business strategy terminology, popularized by Warren Buffett

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