Concept · Investment & Valuation
Economic Moat
Origin: Warren Buffett, coined Pat Dorsey
Biological Parallel
Acacia trees don't just defend themselves—they house stinging ants in hollow thorns and feed them nectar. Herbivores attempting to browse get swarmed. This mutualistic defense creates a competitive moat: undefended plants get eaten while acacias thrive. Buffett's economic moat mirrors these evolved barriers—network effects, switching costs, and brand loyalty are structural defenses that, like ant-plant mutualisms, compound over time and resist competitive erosion.