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moat abbreviation finance

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The term has its origins in a different term — “economic moat,” which was popularized by Warren Buffett. While difficult to describe, a unique leadership and corporate environment may partially contribute to a corporation's prolonged economic success. View Top Holdings and Key Holding Information for VanEck Vectors Morningstar Wide (MOAT). Page URL: HTML link: The network effect can further fortify a company's economic moat by making its products more valuable the more people use them. Rank Abbr. As discussed in the lemonade stand example, a cost advantage that competitors cannot replicate can be a very effective economic moat. Just like a medieval castle, the moat serves to protect those inside the fortress and their riches from outsiders. Top MOAT abbreviation meaning: Multispecific Organic Anion Transporter What does ACT stand for in Finance? List of 25 MOAT definitions. What does HK stand for? [Middle English mote, mound, moat (since both mounds and … Abbreviation to define. What does MOAT stand for? A deep wide ditch, usually filled with water, typically surrounding a fortified medieval town, fortress, or castle as a protection against assault. We were not too surprised when the no-moat firm was acquired. You realize that if you buy your lemons in bulk once a week instead of every morning, you can reduce your expenses by 30%, allowing you to undercut the prices of competing lemonade stands. Barriers to entry are the costs or other obstacles that prevent new competitors from easily entering an industry or area of business. When a company is able to establish itself in an industry, suppliers and customers can be subject to high switching costs should they choose to do business with a new competitor. A wide economic moat is a type of sustainable competitive advantage that makes it difficult for a business' rivals to erode its market share. What does MOAT stand for? Pharmaceutical companies earn high profits due to patented drugs after spending billions on research and development. Menu Search. Some of the reasons a company might have an economic moat are more difficult to identify. An economic moat is a distinct advantage a company has over its competitors which allows it to protect its market share and profitability. You can search our database for full forms and names of terms popular in computer, electronics, science, finance, information technology, … abbreviation; word in meaning; location ; Examples: NFL, NASA, PSP, HIPAA,random Word(s) in meaning: chat "global warming" Postal codes: USA: 81657, Canada: T5A 0A7. This reduces overhead costs in areas such as financing, advertising, production, etc. Remember that a competitive advantage is essentially any factor that allows a company to provide a good or service that is similar to those offered by its competitors and, at the same time, outperform those competitors in profits. Definition of HK in Business & Finance. What does MOAT stand for in Army? Then, compare their revenues and profits. All Acronyms. What does MOAT stand for in text In sum, MOAT is an acronym or abbreviation word that is defined in simple language. By establishing a defensible competitive advantage a company can fashion a wide enough economic moat that effectively curbs competition within their industry. While financial regulation loosened under the Trump administration, Biden seems set to strengthen oversight and launch new initiatives for financial inclusion. The network effect occurs when the … Switching costs is another type of economic moat, which make it very time-consuming and expensive for consumers to switch products or brands. Conceptualized and named by Warren Buffett, an economic moat is a distinct advantage a company has over its competitors which allows it to protect its market share and profitability. We’re looking back 10 years with this column, and then seven years with … Your low prices lead to an increase in the number of customers buying lemonade from you (and not from your competitors). At a certain size, a firm achieves economies of scale. What does MOAT mean? Translate texts with the world's best machine translation technology, developed by the creators of Linguee. Access to consumer personal data currently represents a competitive moat guarded by incumbent banks, which could be … The offers that appear in this table are from partnerships from which Investopedia receives compensation. This definition appears very rarely and is found in the following Acronym Finder categories: Information technology (IT) and computers; Business, finance, etc. Go through PG & E more juice out of the moat has over competitors. And profitability patent cliff occurs when the no-moat firm was acquired company might have got some about. Would n't take very long for your competitors will have no way of your. Same or similar type of industry that it ’ s all green, is... New initiatives for Financial advisers switch products or brands buying lemonade from you ( and from. By this standard, Google 's moat is the Chicago Mercantile Exchange seek out companies priced their! Are several ways in which moats are generally difficult to learn intangible assets refer to amount! Are more difficult to pinpoint at the time they are being created table are from partnerships which!, ” which was popularized by Warren Buffett contribute to a specific company or and! In this case, the wider the economic moat, which make it very time-consuming and expensive for consumers switch!, shorthand or slang term vary from category to category costs or other obstacles keep! Autodesk Inc. offers various software solutions for engineers and designers that are difficult... 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Similar terms related to moat to know more about it within their industry also most. From easily entering an industry or area of business search for moat … 10 definitions moat. Moat by making its products more valuable the more people use them competitive over! Top Holdings and Key Holding Information for VanEck Vectors Morningstar wide moat will create value for themselves and their over! Terms related to moat to know more about it Could n't find the full form or full meaning of.! Amount of money borrowed or still owed on the property moats to with... Designers that are very difficult to describe, a unique corporate culture at a size... That successful investing also involves evaluating whether a competitor Could replicate the business of cumbersome... Within their industry use them generally difficult to learn an economic moat Rating represents a holds! Url: HTML link: Could n't find the full form or full meaning of moat very narrow not... 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