An economic moat, often attributed to investor Warren Buffett, is a term used to describe a company's competitive advantage.
[2] As of 2012, Buffett had used the word "moat" in the Berkshire Hathaway shareholder letters more than 20 times since 1986.
[4] Examples of some economic moats are network effect, intangible assets, cost advantage, switching costs, and efficient scale.
[9] Cost advantage: Companies that can keep their prices low can maintain market share and discourage competition.
[6] Switching costs: Customers and suppliers might be less likely to change companies or providers if the move will incur monetary costs, time delays, or extra effort.