Economic Moat

Economic Moat
The competitive advantage that one company has over other companies in the same industry. This term was coined by renowned investor Warren Buffett.

The wider the moat, the larger and more sustainable the competitive advantage. By having a well-known brand name, pricing power and a large portion of market demand, a company with a wide moat possesses characteristics that act as barriers against other companies wanting to enter into the industry.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Wide Economic Moat — A type of sustainable competitive advantage that a business possesses that makes it difficult for rivals to wear down its market share and profit. The term is derived from the water filled moats that surrounded medieval castles. The wider the… …   Investment dictionary

  • Soft Economic Moat — A type of economic moat (or competitive advantage) that is based on intangible qualities such as exceptional management or a unique corporate culture that breeds success. Soft moats are more difficult to identify than better known economic moats… …   Investment dictionary

  • Narrow Moat — A slight competitive advantage that one company enjoys over competing firms operating in the same or similar type of industry. A narrow moat is still an advantage for a company, but it is one that only provides a limited amount of economic… …   Investment dictionary

  • Quality investing — is an investment strategy based on clearly defined fundamental factors that seeks to identify companies with outstanding quality characteristics. The quality assessment is made based on soft (e.g. management credibility) and hard criteria (e.g.… …   Wikipedia

  • Brand Awareness — The likelihood that consumers recognize the existence and availability of a company s product or service. Creating brand awareness is one of the key steps in promoting a product. Brand awareness is an important way of promoting commodity related… …   Investment dictionary

  • Dog Eat Dog — Intense competition in a market. Dog eat dog competition most commonly arises in markets where products or services have become commoditized. In this case, no company can create a competitive advantage in any way other than competing on price.… …   Investment dictionary

  • Masterbrand — A specific overarching brand name that serves as the main anchoring point on which all underlying products are based. Masterbranding attempts to create a strong association between a company s products and what the brand represents. While… …   Investment dictionary

  • Value Proposition — A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than… …   Investment dictionary

  • Beijing — /bay jing /, n. Pinyin. a city in and the capital of the People s Republic of China, in the NE part, in central Hebei province: traditional capital of China. 7,570,000. Also, Peking, Peiching. Formerly (1928 49), Peiping. * * * I or Pei ching… …   Universalium

  • Mandalay — This article is about the city in Burma. For other uses, see Mandalay (disambiguation). Mandalay မန္တလေး Downtown Mandalay …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”