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Understanding Economic Moats

Advanced Investing • 10 min

An "economic moat" — a term popularized by investor Warren Buffett — describes a durable competitive advantage that protects a company's profits from being eroded by competitors, the same way a literal moat protected a castle from attack. Companies with wide moats can often sustain high profitability for much longer than companies without one, because it's genuinely hard for rivals to take away their customers or…

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