What is an Economic Moat and Why should Stock Investors Care
Wednesday July 30, 2008
Economic moats are competitive structures that help great companies continue to be great investments. Stock in a company with a substantial economic moat is usually much safer than investing in companies that have strong competitors.
Comments
I think the moat is seem like barrier to entry for the other company. Mr. Little says the one of the moat is offering low cost. As a consumer, we must find a cheap product moreover poor man. In great company, they could product efficiently the production cost so they can sell the product cheap. On the other hand, the small corporate could not product efficiently so they could not product cheap product.