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Understanding Economic Moats

Advanced Investing • 10 min

An "economic moat" is a term made famous by investor Warren Buffett. It describes a strong competitive edge that keeps a company's profits safe from rivals, much like a moat shields a castle from invaders. Companies with big moats can maintain high profits longer than those without one. It's tough for competitors to steal their customers or cut their prices.Moats come in several common forms. Brand strength lets a…

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