Economic moat

Economic moat is a term popularized by Warren Buffett describing a company's competitive advantage. Morningstar uses the term for its stock ratings.

Contents 1 Expanded Definition 2 Related Fool Articles 3 Related Community Blogs 4 Related Terms 5 Recent Mentions on Fool.com

Expanded Definition

The bigger the moat the better for a company, as it keeps competitors at bay. Components of a moat include:

• Economies of scale
• Intellectual property
• Network effect
• Switching costs

Related Fool Articles

• Competitive Advantage 101
• Why Warren Buffett Loves Water
• I Like Big Moats and I Cannot Lie

Related Community Blogs

Related Terms

• Competitive advantage
• Warren Buffett
• Morningstar
• Value investing
• Economies of scale
• Intellectual property
• Network effect
• Switching costs

Recent Mentions on Fool.com

• 2-Star Stocks Poised to Plunge: Moody's? (MCO)
• Value Investing
• 1-Star Stocks Poised to Plunge: lululemon athletica? (LULU)
• Set 'Em and (Possibly) Forget 'Em
• Only the Best Stocks Will Do
• Warren Buffett's Priceless Investment Advice

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