Meaning of Moat | Babel Free

Definitions

1. A deep, wide defensive ditch, normally filled with water, surrounding a fortified habitation.
2. A surname.
3. An aspect of a business which makes it more "defensible" from competitors, because of the nature of its products, services or franchise or for some other reason.
   figuratively
4. A circular lowland between a resurgent dome and the walls of the caldera surrounding it.
5. A clear ring outside the eyewall of a tropical cyclone.
6. A hill or mound.
   obsolete

Equivalents

Examples

“No matter how good your company's product is or how quickly the industry is growing, if there is no moat, competitors will invade your castle and burn it down.”

““I think ‘moats’ are lame,” Mr. Musk had said during a Tesla earnings call. It was a criticism of an economic principle that Mr. Buffett had coined in 1999 and that has become something of a mantra for his faithful: Invest in businesses “that have wide, sustainable moats around them.””

“Moreover, where older firms might have to stave off competitors and engage in practices like predatory pricing to keep the competition at bay, platform monopolies have a built-in moat. Since a platform’s value comes from its number of users—a phenomenon known as the network effect—competing against large platforms is nigh impossible since its monopoly position makes it inherently more useful.”

CEFR level