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MOATs Aren't Useful

clarification What I mean is that, conceptually, “MOATs” are not a useful abstraction. There is a saying that “all models are wrong, but some are useful” and I am saying that, as a model, MOATs are not useful. I think that asking a founder “what their MOAT is” will not offer useful information about their project. I am also specifically referencing tech startups. what is a MOAT From what I gather, a MOAT is defined as “a company’s (unique) ability to maintain a competitive advantage that protects its long-term market share and profits.

From what I gather, a MOAT is defined as “a company’s (unique) ability to maintain a competitive advantage that protects its long-term market share and profits. In other words a MOAT is just a good product, and as to “protecting its long-term market share and profits” that is a skill issue, a bet on the founders. “Network effects” (which only matter if you have a product people actually want to use) “Proprietary technology” (which becomes commoditized surprisingly quickly) “First mover advantage” (meaningless - see the examples above)

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