Nine Ways to Defend Your Castle

摘要

Tn medieval times, well-defended castles were surrounded by moats 1 that kept invaders from attacking. Centuries later, economic moats (also called competitive moats) represent the advantages a business has over its competitors, protecting profitability. Famed investor and business magnate Warren Buffett is credited with coining the term. In 1995, he talked about how his company, Berkshire Hathaway, selected companies to invest in based on whether or not a given company had "a wide and long-lasting moat around it" (Buffett 1995). Then, the analysts would try to figure out what advantage created this moat and how company leaders would manage the related riches in order to determine if the business was a good investment.