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Economic moat - Wikipedia

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An economic moat, often attributed to investor Warren Buffett, is a term used to describe a company's competitive advantage.[1] Like a moat protects a castle, certain advantages help protect companies from their competitors.[2] As of 2012, Buffett had used the word "moat" in the Berkshire Hathaway shareholder letters more than 20 times since 1986.[3] The 2016 shareholder letter is the most recent letter to contain the word moat.[4] Examples of some economic moats are network effect, intangible assets, cost advantage, switching costs, and efficient scale.[5] Network effect: A network effect happens when the "value of a good or service grows" as it's used by existing and new customers.[6] An example is Amazon.[7] Intangible assets: Brand identity, think Nike[8] or Apple; patents; and government licenses are examples of intangible assets.[9] Cost advantage: Companies that can keep their prices low can maintain market share and discourage competition. Walmart has cost advantage.[6] Switchi

Economic moat - Wikipedia Jump to content From Wikipedia, the free encyclopedia Economic term by Warren Buffett This article is part of a series on Competition law Basic concepts Barriers to entry Competition Effective competition Competition law theory Economic moat History of competition law Market concentration Monopoly and oligopoly Coercive Government-granted monopoly Market domination Natural monopoly State and Legal monopoly Market power Market share analysis Monopoly profit Price gouging Relevant market Regulatory economics Anti-competition Collusion Dividing territories Formation of c

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