In business, I look for economic castles protected by unbreachable ‘moats’.” Warren Buffet Remember big investors talking about moats in equity context. Apple's moat of high switching cost or in Indian context, ITC's moat of extensive distribution network. This time, I thought of providing a synopsis on what exactly are the economic moats and how to spot them. The term is an analogy to moats which were developed in the ancient times around the castles. These were primarily the holes dug around the castle and filled with water so that enemies cannot breach their territory. Similarly, an economic moat is a competitive advantage that gives a company a superior hand over its competitors. Such advantages can arise in the several different forms which are primarily: Intangible assets : These are majorly "brands" or "patents" owned by the corporations which dis-incentivize other companies to enter the same industry. For eg.,if I am running a