**What’s a “Moat” in Investing?**
A **moat** is a company’s edge — something that protects it from competitors.
# Common Moats:
* **Brand** – People pay for the name (Apple, Nike).
* **Network Effect** – More users = more value (Visa, Meta).
* **Switching Costs** – Too hard to leave (Microsoft, banks).
* **Cost Advantage** – They can undercut everyone (Walmart).
* **Patents/IP** – Legally protected ideas (pharma, tech).
# Why It Matters:
Moats = pricing power, steady profits, and long-term compounding.
It’s what Warren Buffett looks for — companies that quietly win.