So a wide moat serves to deter potential attackers. But if an attack occurs, they might find shallow waters. Their attack might succeed. If however the moat is truly deep, they won't. The competitive advantage period will determine how the moat can last. Thanks for breaking this all down!
Thanks, Kevin! Yes, that's how I think about it. Some companies have wide moats supporting high ROICs but are susceptible to a well-timed attack due to poor morale, etc. behind the castle walls or frustrated customers, for example. On the other hand, some narrow moats support mid-teen ROICs but are quite difficult to overcome due to strong culture, highly relevant products/services, etc.
So a wide moat serves to deter potential attackers. But if an attack occurs, they might find shallow waters. Their attack might succeed. If however the moat is truly deep, they won't. The competitive advantage period will determine how the moat can last. Thanks for breaking this all down!
Thanks, Kevin! Yes, that's how I think about it. Some companies have wide moats supporting high ROICs but are susceptible to a well-timed attack due to poor morale, etc. behind the castle walls or frustrated customers, for example. On the other hand, some narrow moats support mid-teen ROICs but are quite difficult to overcome due to strong culture, highly relevant products/services, etc.