™A company with difficult-to-replicate distribution may retain customers, but competition, regulation and pricing evidence are needed to assess how durable that advantage is.
Fundamentals
Economic moat
A durable competitive advantage that may help a business defend profits or market position.
Plain-English context
Put the definition to work.
A persuasive business story is not evidence of durability; examine retention, pricing, returns on capital and competitive changes.
Further reading and verification. Examples are hypothetical, not current quotes or recommendations. Product terms, tax treatment and market rules can change. SEC — financial statement guide