A moat with crocodiles

The moat analogy is drawn from medieval times, when castles were surrounded by deep and wide pits filled with water and deadly crocodiles to prevent intrusion. Likewise, economic moats provide companies a competitive advantage, enabling them to earn high profits for long. Moats can also be compared with the competitive advantage or talent of cricket players like MS Dhoni, Virat Kohli or Sachin Tendulkar. Competitive advantage can originate from a number of factors, such as: Low-cost advantage: When a business offers a reliable product at lower cost

This article was originally published on August 19, 2019.