What does an economic moat mean?

* A business having a strong moat possesses a competitive advantage that is both strong and sustainable for the long run.
* The term has been inspired by the moat that used to surround medieval castles to protect them.
* Warren Buffett has also highlighted the importance of buying businesses with deep moats, as they are protected from competitors.

The term “economic moat” has been popularised by Warren Buffett which refers to a long-term competitive advantage that protects a company’s foothold in the marketplace. The term is inspired by the moat that used to surround medieval castles in the earlier times to protect its valuables from invaders.

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