What is an economic moat?

The term economic moat, coined and popularized by Warren Buffett, refers to a business’ ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms. Remember that a competitive advantage is essentially any factor that allows a company to provide a good or service that is similar to those offered by its competitors and, at the same time, outperform those competitors in profits.
March 06, 2017 at 11:18AM
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Posted on 03/06/2017, in Invest and tagged , , , . Bookmark the permalink. Comments Off on What is an economic moat?.

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