Warren Buffet talks about "moats" all the time. Basically a business with a moat is just a business with a defensible advantage.
If you think of your business as a castle, a moat is something that stops others from taking your castle from you. This could be anything from a network effect (Facebook, LinkedIn), economies of scale (Amazon, Walmart), to patents (most biotech companies) to brand (Coke).
The way he put it was something like, "If you gave me 100 billion dollars to take Coke's market, I can't. They've been investing in infrastructure and brand all over the world for decades. Even if I could make a better tasting beverage, people would still buy Coke. They have a moat".
If you think of your business as a castle, a moat is something that stops others from taking your castle from you. This could be anything from a network effect (Facebook, LinkedIn), economies of scale (Amazon, Walmart), to patents (most biotech companies) to brand (Coke).
The way he put it was something like, "If you gave me 100 billion dollars to take Coke's market, I can't. They've been investing in infrastructure and brand all over the world for decades. Even if I could make a better tasting beverage, people would still buy Coke. They have a moat".
http://www.valuewalk.com/2015/09/warren-buffett-on-economic-...