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How to identify economic moats

We identify the companies which have created economic moats using the criteria of Morningstar

How to identify economic moats

dhanak हिंदी में भी पढ़ें read-in-hindi

Ancient castles had deep, wide ditches filled with water around them called a moat, which protected them from attacks. Similarly, successful companies build 'economic moats', in simpler words - competitive advantage. These moats can be either qualitative or quantitative, and they protect companies from their competitors. Some common ones are proprietary technology, patents, intangible assets, cost advantages, efficient scale, customer switching costs, network effects, etc.

This article was originally published on May 23, 2023.


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