What does an economic moat do?
A strong economic moat means that the company can price its products and services at highly profitable levels while at the same time the moat protects against changes in such things as: . the buying habits of consumers, . existing and new competitors, . government legislation, . cost of living ...
- What are some types of economic moats?
The following is a list of some of the different types of economic moats. . Geographical . Location . Brand Name . Licences or Patents . Start up costs . Management expertise or structure Many shopping malls have a strong economic moat because they "control" the geographic region around them. T ...
- What does Warren Buffett say about economic moats?
After teaming up with Charlie Munger, Warren Buffett has often talked about the importance of an economic moat for companies that he would consider investing in. Just as a moat around a medieval castle kept the castle safe from intruders, an economic moat around a company keeps the company safe ...
- What is an economic moat?
An economic moat arises around a company because its products and services have features that protect them from competitors. Consider Wal-Mart Stores. It has built a name for reliable products at low prices. People are willing to travel to buy at a Wal-Mart. Once a store is built in an area, th ...
