Investing Foundations

Competitive Advantage (Economic Moats)

Step 1 of 4 · What a moat is0 pts

High profits attract competitors. A is whatever stops them from arriving and competing those profits away. The word that matters is durable. A good quarter is not a moat; a structural reason competitors keep failing is.

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An economic moat refers to:

A company's cash reservesA durable competitive advantage that protects profitsA type of financial statementA government regulation