Spotting moats
Pricing power, switching costs, network effects, and scale — with a bias toward evidence. · 9 min
A moat is durable advantage
If a smart competitor with money still cannot take the customer easily, you may have a moat. High gross margins, high returns on capital, and stable share can be clues. They are not proof.
Do not confuse a hot product with a moat
A product that is winning this year can still be easy to copy next year. Ask what would have to be true for a rival to steal the economics.