Wide Economic Moat

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Dictionary Says

Definition of '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.
Investopedia Says

Investopedia explains 'Wide Economic Moat'

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.
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'Wide Economic Moat'

  • Economic Moats: A Successful Company's Best Defense

    http://www.investopedia.com/articles/fundamental-analysis/08/moats.asp
    ... Without a wide economic moat, there is little to prevent competitors from stealing
    market share and thus profits. Advertisement - Article continues below. ...

  • How Wide Is Your Company's Moat?

    http://stocks.investopedia.com/stock-analysis/2009/How-Wide-Is-Your-Companys-Moat-LOW-RX-TWC-HOG-RNR-BRK.A-PII0716.aspx
    ... Often referred to as an economic moat, it is a ... The bigger your company's moat, the
    better an investment ... an index it terms the "Morningstar Wide Moat Focus," a ...

  • What Is Warren Buffett's Investing Style?

    http://www.investopedia.com/articles/05/012705.asp
    ... also coined the term "moat," which has subsequently resurfaced in Morningstar's
    successful habit of favoring companies with a "wide economic moat." The moat is ...

  • The Pick

    http://stocks.investopedia.com/stock-analysis/moneyshow/ThePickandShovelofEnergyStocks.aspx
    ... This factor, combined with its research and development strength and technology
    approach, leads us to assign a wide economic moat to the company. ...

  • Boeing Dreamliner Will Pay Off For Investors

    http://stocks.investopedia.com/stock-analysis/2009/Boeing-Dreamliner-Will-Pay-Off-BA-AA-CAL-0903.aspx
    ... Given the prospects for the Dreamliner, the company should continue to line shareholder
    pockets for years to come and sustain its wide economic moat as an ...

  • Fundamental Analysis: Qualitative Factors - The Industry ...

    http://www.investopedia.com/university/fundamentalanalysis/fundanalysis3.asp
    ... of its customer base, market share among firms, industry-wide growth, competition ...
    also suggest that the company possesses some sort of "economic moat," in other ...

  • Advertising, Crocodiles And Moats

    http://www.investopedia.com/articles/06/admoats.asp
    ... do everything in their power to keep their moats deep, wide and filled ... Although there
    are many strategies for maintaining an economic moat, one way to do it is ...

  • Competitive Advantage Counts

    http://www.investopedia.com/articles/fundamental/03/040903.asp
    ... (For background reading, see Economic Moats Keep ... The products or services that have
    wide, sustainable moats around them are the ones that deliver rewards to ...

  • Staples On The Rise

    http://stocks.investopedia.com/stock-analysis/2009/Staples-On-The-Rise-SPLS-ODP-OMX0528.aspx
    ... Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) also sell plenty of office products, making
    it difficult to measure just how wide Staple's economic moat is, but it ...

  • Warren Buffett: How He Does It

    http://www.investopedia.com/articles/01/071801.asp
    ... is what Buffett calls a company's economic moat, or competitive ... The wider the moat,
    the tougher it is for ... objective articles and tutorials on a wide variety of ...

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