- 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 moat, the more difficult it would be for an invader to reach the castle.
Businesses that possess at least one factor of Porter's 5 forces model would possess a wide economic moat. For example, a business that holds an exclusive patent for the creation of a miracle drug would effectively keep potential competitors out of its business. Having few or no competitors would allow the company to continually generate high levels of profit. Legendary investor Warren Buffett is renowned for his philosophy of investing in businesses with wide economic moat.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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… … 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
Castle — This article is about medieval fortifications. For other uses, see Castle (disambiguation). For a list of all castles, see List of castles. For similar but unrelated structures in Japan, see Japanese castle … Wikipedia
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
JERUSALEM — The entry is arranged according to the following outline: history name protohistory the bronze age david and first temple period second temple period the roman period byzantine jerusalem arab period crusader period mamluk period … Encyclopedia of Judaism
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
Chang'an — … Wikipedia
Paris — /par is/; for 2 also Fr. /pann rddee /, n. 1. Matthew. See Matthew of Paris. 2. Ancient, Lutetia Parisiorum, Parisii /peuh riz ee uy /. a city in and the capital of France and capital of Ville de Paris Department, in the N part, on the Seine.… … Universalium
Australia — /aw strayl yeuh/, n. 1. a continent SE of Asia, between the Indian and the Pacific oceans. 18,438,824; 2,948,366 sq. mi. (7,636,270 sq. km). 2. Commonwealth of, a member of the Commonwealth of Nations, consisting of the federated states and… … Universalium
arts, East Asian — Introduction music and visual and performing arts of China, Korea, and Japan. The literatures of these countries are covered in the articles Chinese literature, Korean literature, and Japanese literature. Some studies of East Asia… … Universalium