• “Economic moat” is a term that refers to the ability of a business to maintain a competitive advantage over its competitors.

  • The analogy refers to the moats that surrounded medieval castles and served as a protective barrier.
  • Ways a company can create an economic moat include creating advantages in size, intangible assets, value, and high switching costs.
  • The term “economic moat” was made popular by the legendary investor Warren Buffett.