Warren Buffet talks about &quot;moats&quot; all the time. Basically a business with a moat is just a business with a defensible advantage.<p>If you think of your business as a castle, a moat is something that stops others from taking your castle from you. This could be anything from a network effect (Facebook, LinkedIn), economies of scale (Amazon, Walmart), to patents (most biotech companies) to brand (Coke).<p>The way he put it was something like, &quot;If you gave me 100 billion dollars to take Coke&#x27;s market, I can&#x27;t. They&#x27;ve been investing in infrastructure and brand all over the world for decades. Even if I could make a better tasting beverage, people would still buy Coke. They have a moat&quot;.<p><a href="http:&#x2F;&#x2F;www.valuewalk.com&#x2F;2015&#x2F;09&#x2F;warren-buffett-on-economic-moats&#x2F;?all=1" rel="nofollow">http:&#x2F;&#x2F;www.valuewalk.com&#x2F;2015&#x2F;09&#x2F;warren-buffett-on-economic-...</a>