What is an economic moat?
An economic moat is a business’ ability to maintain its competitive advantages and fend off competition in order to protect its long-term profits and market share.
In the same way a moat provides a level of protection for the castle it surrounds, an economic moat refers to the level of defense a business has built to protect itself from competitors. According to Morningstar, a business may have a narrow moat or a wide moat, or no moat at all.