“In days of old, a castle was protected by the moat that circled it. The wider the moat, the more easily a castle could be defended, as a wide moat made it very difficult for enemies to approach. A narrow moat did not offer much protection and allowed enemies easy access to the castle. To Warren Buffett, the castle is the business and the moat is the competitive advantage the company has. He wants his managers to continually increase the size of the moats …
Article by The Blog of Dr Ngo. Read entire story here.