economic moat

An economic moat is like a castle with a big, deep ditch full of water around it. This water makes it hard for enemies to attack the castle because they need to cross the water to get to it. An economic moat is like this water; it makes it hard for the competition to attack a company. Companies that have an economic moat use things like patents and trademarks that keep other companies from copying their products or services and make it hard for the competition to compete with them. Companies with a strong economic moat can keep their profits high, making them good investments.