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What Is a Competitive Moat?

By Kristi Waterworth – Updated Jun 17, 2025 at 12:32PM

Key Points

  • Competitive moats give companies a unique business edge, making them attractive to long-term investors.
  • Types of competitive moats include cost, cultural, networking, and resource advantages.
  • Investors should seek companies with strong competitive moats for potentially safer, sustainable returns.
Key findings are powered by ChatGPT and based solely off the content from this article. Findings are reviewed by our editorial team. The author and editors take ultimate responsibility for the content.

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