Economic Moat

A term coined by Warren Buffett, the economic moat refers to the advantage one company holds over others in its industry. A wider moat means that the company has a greater competitive advantage, as well as the capacity to maintain this advantage over a longer period of time. Attributes such as general renown and having control over a significant amount of market demand helps a company create a wide moat, which protects against other companies that may try to succeed in the industry.