Economic moats protect competitive advantage from "summary" of Essays of Warren Buffett by Lawrence A. Cunningham
One key concept that Warren Buffett often emphasizes is the idea of economic moats. These are the barriers that protect a company's competitive advantage over its rivals. Just like a medieval castle is surrounded by a moat to fend off attackers, a company with a strong economic moat is able to defend its position in the market. There are several types of economic moats that can help a company maintain its competitive advantage. One common type is a brand moat, which is built on the strength of a company's brand name and reputation. Consumers are often willing to pay a premium for products or services from a trusted brand, giving the company a pricing power that its competitors may not hav...
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