If you don't build a moat, or you didn't build on real estate that already has a moat in place, even the most beautifully designed sand castle will drift away just as soon as a large enough wave reaches its walls. Your kids probably already know this, but do you?
Unfortunately, most companies (even highly successful ones) don't have that kind of defensive characteristic -- that is, they don't have a means to protect themselves from the attacks of competitors. They don't have any moat. But some companies definitely do.
What is a moat and how do you know whether your company has it? Analyst Nick Kapur illustrates the point by describing the difference between two mega-tech companies, Google
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