{"id":15042,"date":"2026-09-29T12:30:12","date_gmt":"2026-09-29T12:30:12","guid":{"rendered":"https:\/\/www.incredmoney.com\/blog\/?p=15042"},"modified":"2026-09-29T12:30:12","modified_gmt":"2026-09-29T12:30:12","slug":"money-can-buy-almost-any-moat","status":"publish","type":"post","link":"https:\/\/www.incredmoney.com\/blog\/money-can-buy-almost-any-moat\/","title":{"rendered":"Money can buy almost any moat"},"content":{"rendered":"

In 2009, Microsoft launched Bing to take on Google. It spent billions over the next few years but Google\u2019s share of search barely moved.<\/p>\n

In 2016, Reliance launched Jio to take on India\u2019s telecom companies, with free calls and data for months. Within about two years, a market of over a dozen operators had shrunk to three private players.<\/p>\n

Both had deep pockets and both spent big, but only one of them got anywhere.<\/p>\n

The difference wasn\u2019t the size of the cheque. It was the kind of moat each incumbent had.<\/strong><\/p>\n

Google\u2019s edge grew with every search: more users meant better results, which brought more users and more advertisers. The telecom incumbents had spectrum and towers, but a richer rival could buy the same (and in Jio\u2019s case, better) airwaves and build more towers, faster.<\/p>\n

Deep pockets used to be enough to keep rivals out. In many industries, that\u2019s no longer true, and now AI is chipping away at a lot of other advantages too.<\/p>\n

In this newsletter, we will look at which moats are still looking strong and which are becoming weaker.<\/p>\n

First, what is a moat?<\/h2>\n

Warren Buffett borrowed the idea from medieval castles. The castle is the business. The moat is whatever keeps attackers out.<\/p>\n

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For a company, the attackers are competitors. A good product on its own won\u2019t give you a moat. But a moat is what keeps a good product profitable for years.<\/p>\n

Why should investors care?<\/h2>\n

Economics has a simple rule. When a business earns unusually high profits, rivals rush in, add supply and cut prices until returns drift back to normal.<\/p>\n

A moat may not stop that pull towards normalised profits but it can slow it down.<\/strong><\/p>\n

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This is why moats matter so much for investors. Stock prices depend on how long a company can keep earning above-normal returns, not just how high they are today. The market pays a premium for that staying power, and takes it back quickly when it fades.<\/p>\n

Why most moats are getting weaker<\/h2>\n

Staying on top is harder than it used to be. In 2018, consulting firm Innosight<\/a> studied how long companies last in the S&P 500. The answer has roughly halved in fifty years.<\/p>\n

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A few forces seem to be behind this:<\/p>\n