Nordicsupreme
New member
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- Mar 12, 2025
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Dear Family in Zev today I will be sharing the basic concept in relation to Moat
As mentioned in my previous posts, the data/knowledge I am sharing in conceptual in nature and for your reference. These are also basic concepts discussed with an aim to build Financial Literacy in our midst. This will be a shorter concept with respect to other topics.
Moats: Moats refers to a competitive advantage that a company has in the marketplace that helps maintain its status, greater market share, higher profitability among other things with respect to its competitors.
This terms was coined by Warren Buffet. Moats can help explain why many companies that are already trading in the over-valued zone continue to grow despite unfavorable valuations.
Moats can be of various types like:
1. Brand Moat: these companies have a competitive advantage in terms of having a huge loyal consumer base. Examples of this include : Coca Cola, Apple, Nike, among others
2. Huge Initial Barriers of Entry: Certain industries are capital intensive in that they require lots of initial capital to set up the business. Established companies in these industries benefit greatly since its tough for newer companies to enter the market. These costs can include all types of costs like setting up of huge factories, long list of compliances and certifications needed to enter the business, among other things. Example - Steel and Heavy Metal Refining Industry, Aerospace Industry, Oil and Gas companies.
3. Supple Chain Moats: A supply chain moat is a kind of competitive advantage that ensures a company greater profitability or market share or speed/scale advantage on account of having greater control over the operational like procurement, distribution, logistics, production. Example : Amazon Shipping Services, Walmart
4. Patent Moats : these are competitive advantages that result in greater profitability for the company on account of having legal/copyright advantages with respect to its competitors. This plays a crucial role in development of pharmaceutical drugs ( A Case study with Example of Pfizer : https://hatedmoats.substack.com/p/pfizer-deep-dive-analysis) , technology developed by Artificial Intelligence/ Software Companies ( An article that discusses on AI Moats : https://www.forbes.com/sites/davidh...g-ai-moats-in-the-age-of-intelligent-machines)
For a more detailed study you can refer to the link here : https://cxl.com/blog/economic-moats/
Thanks & Regards
As mentioned in my previous posts, the data/knowledge I am sharing in conceptual in nature and for your reference. These are also basic concepts discussed with an aim to build Financial Literacy in our midst. This will be a shorter concept with respect to other topics.
Moats: Moats refers to a competitive advantage that a company has in the marketplace that helps maintain its status, greater market share, higher profitability among other things with respect to its competitors.
This terms was coined by Warren Buffet. Moats can help explain why many companies that are already trading in the over-valued zone continue to grow despite unfavorable valuations.
Moats can be of various types like:
1. Brand Moat: these companies have a competitive advantage in terms of having a huge loyal consumer base. Examples of this include : Coca Cola, Apple, Nike, among others
2. Huge Initial Barriers of Entry: Certain industries are capital intensive in that they require lots of initial capital to set up the business. Established companies in these industries benefit greatly since its tough for newer companies to enter the market. These costs can include all types of costs like setting up of huge factories, long list of compliances and certifications needed to enter the business, among other things. Example - Steel and Heavy Metal Refining Industry, Aerospace Industry, Oil and Gas companies.
3. Supple Chain Moats: A supply chain moat is a kind of competitive advantage that ensures a company greater profitability or market share or speed/scale advantage on account of having greater control over the operational like procurement, distribution, logistics, production. Example : Amazon Shipping Services, Walmart
4. Patent Moats : these are competitive advantages that result in greater profitability for the company on account of having legal/copyright advantages with respect to its competitors. This plays a crucial role in development of pharmaceutical drugs ( A Case study with Example of Pfizer : https://hatedmoats.substack.com/p/pfizer-deep-dive-analysis) , technology developed by Artificial Intelligence/ Software Companies ( An article that discusses on AI Moats : https://www.forbes.com/sites/davidh...g-ai-moats-in-the-age-of-intelligent-machines)
For a more detailed study you can refer to the link here : https://cxl.com/blog/economic-moats/
Thanks & Regards