Narrow Moat
 |
Definition of '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 benefit and will typically last for only a relatively short period of time before competition marginalizes its importance. |
 |
Investopedia explains 'Narrow Moat'The phrase "economic moat" was coined by legendary investor Warren Buffett. This phrase has since been refined to differentiate between "wide moats" and "narrow moats". Wide economic moats offer substantial economic benefits and are expected to endure for a prolonged period of time, while narrow moats offer more modest economic benefits and typically last for a shorter period of time. |
Related Definitions
Articles Of Interest
-
Competitive Advantage Counts
What's the best indicator of a company's future success? Its ability to succeed when others fail. -
Advertising, Crocodiles And Moats
Memorable advertising is a brick in the fortress that keeps competitors at bay. -
Economic Moats: A Successful Company's Best Defense
Find out why some companies thrive while others flounder. -
What is an economic moat?
The term economic moat, coined and popularized by Warren Buffett, refers to a business' ability to maintain competitive advantages over its competitors in order to protect its long-term profits ... -
The News About Newspaper Publishers Is Surprisingly Good
The news about newspaper stocks is surprisingly good. Indeed, the sector that every investing pundit loves to hate has been beaten to a bloody pulp over the last few years is starting to show ... -
Warren Buffett: How He Does It
We look at the Sage of Omaha's methodology for evaluating value stocks. -
The Nash Equilibrium
Nash Equilibrium is a key concept of game theory, which helps explain how people and groups approach complex decisions. Named after renowned mathematician John Nash, the idea of Nash Equilibrium ... -
Think Like Warren Buffett
They don't call him "The Oracle" for nothing. Learn how Buffett comes up with his winning picks. -
Forces Behind Interest Rates
Get a deeper understanding of the importance of interest rates and what makes them change. -
Hedge Fund Fees: Exotic Expenses
Warren Buffett made a bet with Protégé Partners, a fund of funds hedge fund manager, that the S&P500 would beat a group of hedge fund managers selected by Protégé. The bet officially started ...
Free Annual Reports