In this economic moat series, we’ve covered two types of competitive advantages: the cost advantage moat  and the brand moat . Now let’s talk about one of the most powerful economic moats in investing — the network effect moat . Imagine a business that gets stronger every time a new customer joins. More users make the product more valuable. A more valuable product attracts more users. And the cycle keeps reinforcing itself. WHY NETWORK EFFECTS CREATE POWERFUL COMPETITIVE ADV

In my last post, we looked at the cost advantage moat — how being the lowest-cost provider can protect profits. But there’s a tradeoff. Competing on price often means thinner margins. This week, let’s look at the opposite approach: companies that can charge more  and still keep customers. That’s the power of a brand moat . WHAT IS A BRAND MOAT? HINT: IT’S NOT JUST A FAMOUS COMPANY NAME OR LOGO. You might assume that a company with a brand moat is just one that has an easily

In my previous post, I talked about economic moats —a durable competitive advantage that protects a company from competitors. A moat keeps market share from being stolen. It protects long-term profits. And in some cases, it gives a company pricing power —the ability to raise prices without losing customers. Today, we’re looking at one of the most powerful—and slightly counterintuitive—types of moats: The cost advantage moat. How can being the cheapest player in the market al