moat

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/moʊt/
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A protective ditch around a place, or a lasting business advantage that protects a company from competitors.

Examples

  • High switching costs give the software firm a wide moat.
  • Rainwater collected in the abandoned moat.
  • Investors asked whether the business had a durable moat.
  • The zoo used a wide moat to separate visitors from the animals.
  • Some old forts had dry moats instead of water-filled ones.

Similar words

trench
defensive advantage
barrier to entry
channel
protection
defense
fosse
competitive advantage
ditch
barrier

Meanings

Defensive ditch

noun
everyday
neutral
A deep, wide ditch around a castle, fort, building, or town, often filled with water, used as protection or separation.

Usage

Use moat for historical castles and forts, and also for modern security, zoo, or decorative barriers that work like a surrounding ditch. Mention whether it is dry or water-filled if that matters.

Examples

  • The castle was protected by a deep moat.
  • A wooden bridge crossed the moat.
  • Some old forts had dry moats instead of water-filled ones.
  • The zoo used a wide moat to separate visitors from the animals.
  • Rainwater collected in the abandoned moat.

Common mistakes

Moat is the ditch around the structure, not the wall, bridge, or whole castle.
IncorrectCorrect
The moat opened to enter the castle. The drawbridge opened to enter the castle.
The castle had a wall of water moat. The castle had a water-filled moat.
They crossed the castle through the moat. They crossed the moat to reach the castle.

Similar words

Competitive advantage

noun
business
neutral
A lasting advantage that helps a company protect its profits, customers, or market position from competitors.

Usage

Use moat or economic moat in business and investing when an advantage is durable, not just temporary. Common moats include strong brands, patents, network effects, cost advantages, and high switching costs.

Examples

  • The company built a strong moat around its brand.
  • Patents can create an economic moat for a drugmaker.
  • High switching costs give the software firm a wide moat.
  • Investors asked whether the business had a durable moat.
  • A narrow moat may disappear when competitors copy the product.

Common mistakes

A short-term trend is not a moat unless it actually protects the business from competition.
IncorrectCorrect
The company has a moat because sales were good this month. The company has a moat because its network is hard to copy.
Their moat is a temporary discount. Their advantage is a temporary discount.
The brand moat protects the castle. The brand moat protects the company from competitors.

Similar words

Usage

Moat is concrete in history, architecture, zoos, and security. In business, economic moat is a metaphor and should be supported by a real source of durable advantage.

Common mistakes

Moat is not the same as mote, a tiny speck. In business, a moat is not just popularity. It must protect the company from competitors.

Etymology

From Middle English mote, from Old French mote, first connected with a mound or fortified site and then with the surrounding ditch. The business metaphor comes from the castle image, where a moat protects what is inside.

FAQ

What does moat mean?

A moat is a deep ditch around a castle, fort, or building, often filled with water. In business, it means a durable competitive advantage.

What is a castle moat?

It is a ditch around a castle or fort that makes attack or entry more difficult.

Can a moat be dry?

Yes. Some moats are dry ditches, while others are filled with water.

What is an economic moat?

An economic moat is a lasting business advantage that protects a company from competitors.

What is a wide moat?

A wide moat is a strong, durable competitive advantage that is hard for competitors to overcome.

What are examples of business moats?

Examples include strong brands, patents, network effects, cost advantages, and high switching costs.

What are synonyms of moat?

For the physical sense, synonyms include ditch, trench, and barrier. For business, competitive advantage and barrier to entry may fit.

Comments & contributions

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Sincere Seahorse
3 days ago
ngl I thought moats were always full of water and crocodiles when I was a kid
1
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Contribution
Onyx Heron
Jun 27
For spelling, moat and mote sound the same in most English accents. A dust mote is the tiny speck, a moat is the ditch. spellcheck wont always save you there
4
Reply
Dashing Cheetah
Jul 10
I have definitely written dust moat once. very different image
0
Contribution
Fresh Grouse
Jun 24
Finance nerd detail: wide moat and narrow moat are not just vibes. Morningstar-style analysis also has no moat, so narrow is still a positive rating, just a weaker one.
5
Reply
Lofty Pheasant
Jun 25
yes, no moat is a real label. sounds rude but it is just the category
2
Contribution
Nimble Bee
Jun 16
in startup pitch decks people often drop the economic part and just ask, whats the moat? They mean defensibility, usually data, distribution, switching costs, network effects, not profit this quarter.
8
Reply
Cloudy Sandpiper
Jun 23
AI companies are making this word do overtime now. sometimes the honest answer is just we raised money faster than the next guy
1
Contribution
Dapper Dolphin
Jun 12
moated is a normal adjective in British building descriptions. A moated manor house is not necessarily some battle castle, could just be an old house with a ditch or water around the platform.
6
Reply
Neat Yak
Jun 15
This one confused me in estate history books. moated sounded too dramatic for a farmhouse lol
1
Contribution
Crisp Hedgehog
Jun 4
If a castle guide says neck ditch, that is basically a moat that only cuts off the exposed side of a hill castle. It doesnt have to go all the way round like the cartoon version.
15
Reply
Free Ladybug
Jun 10
yeah, German castle signs often say Halsgraben for that. first time I saw it I was looking for water and there was only a big dry cut in the hill
3
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