Musk was not referring to moats in the literal sense but in terms of the competitive advantages of a company. The term became popular in the world of investing after legendary investor Warren Buffett used it in 1999 to describe the kind of companies he likes. However, competitive advantages may not be permanent, as other firms would want to emulate them to increase margins and gain market share. Buffett explained that the investment is not because it is a tech stock but because of the way the company deploys capital. Should investors look at the competitive advantages of a company before investing?

Source: Mint May 09, 2018 17:26 UTC