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 (inflation), and
. the general economy
Strong and durable economic moats enable forecasts to be made with more confidence. In an interview in the U.S. News & World Report, Warren Buffett said, "Look for the durability of the franchise. The most important thing to me is figuring out how big a moat there is around a business. What I love, of course, is a big castle and a big moat with piranhas and crocodiles." (June 20, 1994)
