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  Stock Market Basics 87: Economic Moat Explained — Why Great Businesses Stay Strong for a Long Time 3-Line Summary An economic moat is a company’s structural advantage that helps protect profits and market position from competitors over long periods. Strong brands, switching costs, network effects, economies of scale, cost advantages, patents, and regulation can all create economic moats. Investors should analyze economic moats together with ROIC, margins, cash flow, pricing power, market share, and long-term sustainability. Recommended Keywords economic moat, competitive advantage, long term investing, ROIC, WACC, network effects, switching costs, economies of scale, brand power, cost advantage, business quality, financial statement analysis, stock market basics, investing basics Table of Contents What Is an Economic Moat? Why Use the Word “Moat”? Why Economic Moats Matter Economic Moats and ROIC Brand Moats Switching Cost Moats Network Effect Moats Economies of Scale Moats Cost...