What separates companies that have thrived for decades, like Apple, Amazon, and Google, from those that have disappeared? It all comes down to economic moats: the lasting advantages that protect profits and market share.

In this episode of FinPod, we explore:

• What economic moats are and why they matter
• The five types of moats: brand power, network effects, switching costs, cost advantages, and regulatory protection
• How to spot a company’s moat through financial metrics like ROIC, gross margins, and free cash flow
• Real-world examples: Apple, Visa, Google, and cautionary tales like Blackberry and Kodak
• How finance teams like FP&A, valuation, and strategy roles protect and grow moats
• The future of moats: data, platforms, and the power of adaptability
• How YOU can build your own personal career moat to stay competitive

If you work in finance or strategy or are curious about how businesses stay competitive long-term, this episode is packed with practical insights.

Transcript

All right, so let’s jump into something that I’ve always found super interesting. How do some companies like Apple or Google, you know, stay at the top for what feels like forever while others just, well, they fade away. I think the answer lies in something called an economic moat. Yeah. That’s a really good way to think about it. It’s like a, like a real moat, you know, protecting castle. But instead of keeping out invaders, it’s protecting a company’s profits and market share from the competition. So it’s all about giving a company like a lasting advantage in the market, right? That makes a lot of sense. But what are the actual building blocks of like a strong economic moat? What makes a moat really strong? Well, there are five, uh, five key types. And the first one is brand power. You think about a company like Apple, right? Customers are willing to pay a premium price for their products simply because of the brand’s image and reputation. It’s not just about the product itself. It’s a, it’s almost like a feeling of belonging, you know, like you’re part of an exclusive club. So it’s kind of like the cool factor. I bet Apple also benefits from another type of moat network effects, right? The more people use iPhones and Macs, the more valuable that whole Apple ecosystem becomes. You hit the nail on the head. Visa is another perfect example of this. The more people and businesses that use their network, the more attractive and valuable it becomes for everyone else. Each new user just strengthens the network. Right. So it’s kind of like a snowball effect. That’s a powerful force. Are there any other types of moats that give companies an edge? Definitely. Have you ever felt stuck with a product or service? Because switching to a competitor would just be too expensive or too much of a hassle. Oh yeah. Tell me about it. Like I’ve been thinking about switching music streaming services, but I have like years of playlist built up. It just seems like a massive pain to start over. So is that what you mean by switching costs? Precisely. Microsoft Office is another classic example. So many businesses rely so heavily on their ecosystem that switching to a competitor would be a logistical nightmare. And then you’ve got cost advantages that some companies have. Like this is where giants like Amazon come in, right? They’re so efficient that they can just offer lower prices than anyone else. You got it. Their vast scale and super streamlined operations give them this significant cost advantage. And finally, you have regulatory and intellectual property protection. So like patents on new drugs would be a good example of that kind of moat. Absolutely. Patents in the pharmaceutical industry are a classic example. And then you have regulations that limit competition in certain industries like utilities. That creates a protective barrier as well. So those are the five main types. Brand power, network effects, switching costs, cost advantages, and then regulatory or IP protection. Wow. That’s a lot to consider. This is already giving me a whole new way of looking at how businesses work. But let’s say I’m looking at a company’s financials, right? Are there any like red flags or telltale signs that scream strong moat or weak moat? There are definitely some key financial metrics that can give you a peak behind the curtain, so to speak. They can reveal the strength of a company’s competitive advantage. One of the most important ones is return on invested capital or ROIC. Okay. And that basically tells you how effectively a company is using its money to generate profits. Yeah, exactly. You want to look at it in comparison to their weighted average cost of capital or WACC.

(…)

If their ROIC is consistently higher than their WACC, then it means they’re generating excess returns. And that’s that’s usually a pretty good sign that they have a moat. Google, for instance, consistently achieves an ROIC around 25 percent well above their cost of capital. Makes sense. So what other financial clues should we be looking for? Another crucial one is gross margin. This tells you how much profit a company makes on each dollar of revenue after covering, you know, the direct cost of production. Okay. So higher gross margin means more money left over for things like research and development and marketing and well profit, of course. Exactly. And companies with strong moats usually have high and stable gross margins over time. A great example is Apple. They consistently maintain gross margins around 40 percent. That gives them a lot of flexibility. You know, they can invest heavily in R&D or even lower prices if they need to. That’s impressive. Those high gross margins really show how their brand loyalty gives them pricing power. Are there any other financial metrics that can help us spot a moat? Yeah. One more key metric is sustained free cash flow growth. This tells us how much cash a company is generating after paying for its operating expenses and capital expenditures.

(…)

Strong, consistent free cash flow is usually a good sign of a durable moat. Visa, for instance, has seen its free cash flow grow every single year for over a decade. So strong ROIC, high and stable gross margins and consistently growing free cash flow. Those are the financial fingerprints of a company with a solid moat. You got it. Those are the signs of a company with a durable, lasting, competitive advantage. It’s all starting to make sense now. But I got to say, I’m a story person. Can we like bring these concepts to life with some real world examples? Absolutely. Let’s start by looking at companies that have built incredibly strong moats and really, you know, maintain them over time. OK, perfect. And maybe we can learn from those who, you know, maybe they had what seemed like a strong moat, but then things didn’t work out so well. Sounds like a plan. We’ve already talked about Apple, Google and Visa a little bit, but those are definitely worth exploring in more detail. Let’s do it. Let’s start with Apple. It’s just it’s amazing how they’ve built such a like a dedicated following. How did they manage to create such a powerful moat? Apple really mastered the art of combining brand power with with a really strategic approach to their ecosystem, you know, making it incredibly sticky for customers. Remember those high switching costs we talked about? All their products from their iPhones and Macs to their iCloud services and Apple Watch are just seamlessly integrated. I’ve got to admit, once you’re in that ecosystem, it’s hard to imagine using anything else. But haven’t there been times when Apple’s like closed ecosystem has kind of backfired? How do they balance, you know, control with innovation? That’s a really good question. It’s a tricky balance for sure.

(…)

On the one hand, controlling both the hardware and the software allows them to create a really seamless and optimized user experience. But on the other hand, it can sometimes limit flexibility, you know, and it can potentially stifle third party innovation. Apple’s done a pretty good job over the years, though. They’ve adapted and evolved, striking a balance between control and openness to maintain that competitive edge. Yeah, that makes sense. And it’s clear that their strategies worked out pretty well for them. Their market cap soared past two point five trillion dollars. That makes them one of the most valuable companies in the world. OK, so Apple’s nailed brand power and switching costs. What about Visa? Their long lasting dominance is pretty remarkable. What’s their secret sauce? Visa is the undisputed king of network effects, right? Think about it. Every new merchant that accepts Visa and every new customer that gets a Visa card makes the entire network more valuable for everyone else. It’s like that snowball effect we were talking about, right? Gains momentum with each new participant. But isn’t this level of dominance, you know, kind of raising some eyebrows? People are worried about monopolies. How sustainable is their model in the long run? That’s that’s a really valid concern for sure. I mean, Visa’s market power is undeniable. They process over 14 trillion dollars in payments every single year. Regulators are definitely keeping a close eye on them, you know, trying to ensure there’s fair competition in the payments industry.

(…)

As for their long term sustainability, well, I think a lot depends on their ability to to innovate and adapt to new technologies and how consumer behavior changes, you know, things like digital currencies and mobile payment systems. That could pose a challenge down the road. But Visa has a history of adapting to these kinds of disruptions. So I wouldn’t underestimate their ability to stay ahead of the curve. Those are some really interesting points. OK, let’s switch gears and talk about another tech giant. Google. They seem almost untouchable in the world of search.

(…)

What’s their secret weapon? Their moat is built on what’s built on search dominance, basically, and a massive advantage when it comes to data. Think about it. Their search algorithm is getting better with every single search query. They’re constantly learning, right, refining their ability to give you the most relevant results. So they’re like this giant learning machine that just keeps getting smarter. You could say that. And this translates into a huge advantage in their advertising business, Google Ads, which brings in like over three hundred billion dollars in revenue each year. They managed to stay ahead of the competition like Yahoo and Bing for, well, for over two decades. I guess that’s why we Google something right. Not Yahoo it or the kit. Their dominance in search is so ingrained in our culture at this point.

(…)

OK, so we’ve explored some of the companies that have built these these really lasting moats. Now I’m curious about the other side of the coin. The companies that well, maybe they had what seemed like strong moats, but then they they lost their edge. What can we learn from them? There are some really valuable lessons to be learned from the companies that that stumbled. Let’s start with Blackberry. They were once the dominant player in the smartphone market. You know, but their moat kind of crumbled when Apple and Android came along. Oh, yeah, I remember that. It seemed like everyone had a Blackberry and then poof, they were gone. What happened? Well, they just didn’t innovate fast enough. They didn’t adapt to the changing market. They were so focused on their their physical keyboard and those business oriented features. And they just completely missed the shift towards touchscreen interfaces and all those apps that appeal to a much wider audience. So their brand power faded and those high switching costs just disappeared when everyone realized there were better alternatives out there. Exactly. Their market share plummeted like from around 50 percent to less than one percent. It’s a reminder that even a seemingly strong moat can disappear. You know, if a company doesn’t stay ahead of the curve. That’s a serious warning. What’s another example of a company that lost its moat? Kodak is a classic case study. And ironically, they actually invented digital photography. Wait, what? They invented the technology that that basically killed their business. It’s crazy, right? But they were so focused on, you know, their existing film business that they totally underestimated how disruptive digital cameras would be. They just clung to their old model and companies like Canon and Sony. Well, they embraced the digital revolution and overtook them. Wow. Talk about missing the boat. So Blackberry failed to innovate and Kodak missed the digital wave. Any other cautionary tales that show us how important it is to adapt? Definitely. Yahoo is another one. They were the leading search engine, the top Internet portal. But then they lost their dominance to, well, to Google. It’s hard to even remember what they were known for. Besides maybe their email. How did they fall so far behind? Well, just couldn’t keep up with Google’s innovation, especially when it came to search algorithms. Google just kept getting better at delivering those those relevant search results. And Yahoo couldn’t compete. So Google built a better moat and Yahoo’s crumbled. Exactly. And to make matters worse, Yahoo made some questionable acquisitions. They even turned down a $44 billion buyout offer from Microsoft. Wow. Talk about a missed opportunity. Right. In the end, they were sold to Verizon for a fraction of that, just $4.8 billion. These examples are they’re really fascinating. It’s clear that understanding these economic moats is super crucial for anyone who’s involved in, you know, corporate finance. Absolutely. For professionals in roles like F.P.N.A. valuation, corporate strategy or even M&A. This is this is essential knowledge for making good decisions. But it’s not just about understanding them, right? It’s about like knowing how to build them and maintain them. Exactly. That’s where the real work comes in. Corporate finance teams play a crucial role in supporting the development and sustainability of a company’s moat. OK. So let’s say you’re working in F.P.N.A., right? How can you actually help build and maintain that that all important moat? One key area is supporting strategic investments. F.P.N.A. teams can really leverage their their financial expertise to analyze potential investments, make sure that the company’s capital is being allocated to projects that will really strengthen their competitive advantage. So it’s not just about like crunching numbers, right? It’s about understanding the strategic impact of those numbers, how those numbers fit into the bigger picture of of building that moat. Exactly. It’s about using those financial insights to help guide decisions, you know, decisions that reinforce a company’s strengths and create barriers to entry for competitors. That makes sense. What else can finance professionals do to bolster their company’s moat? Protecting pricing power is another crucial one. Finance teams can help optimize pricing strategies, make sure that the company is maintaining healthy profit margins, you know, and avoid getting dragged into those those pricing wars with competitors. So they’re kind of like the guardians of profitability, making sure the company can charge a fair price for its products or services without losing market share. You got it. Tesla is a great example. Their dynamic pricing strategy allows them to adjust prices kind of in real time based on demand. And that helps protect their profitability while staying competitive. That’s that’s really clever. Sounds like a tough balancing act, but it’s clearly working for them.

(…)

OK, what about keeping costs under control? That’s got to be essential even for companies with, you know, seemingly strong moats, right? Absolutely. Even companies with a dominant market position need to be really disciplined about managing their costs. You know, if they want to maintain that high ROIC and maximize profitability. So even if you have an amazing product and tons of loyal customers, you can’t just sit back and relax and let costs spiral out of control. That’s right. Amazon is a great example. They are relentless in their pursuit of efficiency. They’re always working to optimize their logistics, streamline operations and squeeze out those costs so they can offer lower prices and keep that competitive edge. Makes sense. They’re not just building a moat. They’re constantly reinforcing it. This this whole deep dive into economic moats has been so insightful. Can we do a quick recap of the the key takeaways? Sure. First and foremost, economic moats are essential for long term financial success. Right. It’s that protective barrier that shields the company’s profits and market share. Right. We talked about those five main types. Brand power, network effects, switching costs, cost advantages and regulatory or IP protection. And we explored some of those key financial metrics like high and stable gross margins, strong ROIC, consistent free cash flow growth. All of those can help us assess the strength of a company’s moat. Exactly. And we saw the success stories like Apple, Google and Visa and those those cautionary tales like Blackberry, Kodak and Yahoo. You know, the business landscape is always changing. So adaptability is just as important as having a strong moat to begin with. What does all this mean for for our listener, especially if they’re trying to navigate the world of corporate finance? Well, if you’re an F.P. and a valuation or any other finance related role, your job is to assess and and support the durability of your company’s competitive advantage. So you’re basically the moat protector, the guardian of long term profitability. Yeah, that’s a great way to put it. By understanding how economic moats work and how to identify them in financial data, you can help your company make smart decisions, strategic decisions that will that will set them up for success down the road. I love that. This whole conversation is really giving us a framework for understanding how the business world works. But before we wrap up this part of our deep dive, I want to leave you with one final thought. Think about all the companies you interact with every day. You know, the ones you buy stuff from, the services you use, which ones seem to have the strongest moats and which ones seem, well, a little bit vulnerable. That’s a great exercise. It really helps you see things in a new light. Observing the business world through the lens of economic moats can give you a whole new level of insight into how companies succeed or fail. That’s a really great point. It really does make you think about those companies in a different way. Yeah, it’s amazing how this idea of, you know, economic moats can really help us understand what’s going on in the real world. We’ve talked about some of the big players, Apple, Google, Visa. But are there any other companies out there that you think are doing a particularly good job of building and maintaining their moats? Oh, there are so many. One that comes to mind is Microsoft. You know, they’ve really reinvented themselves over the past few years. They’ve carved out a really strong position in cloud computing with Azure. Yeah, it’s true. For a while, they were seen as like this old school tech company, but they’ve really adapted and become a major player in the cloud. Exactly. And they already had this, you know, this really solid foundation with their dominant position in enterprise software. Like think about Windows and Office, right? Remember those high switching costs we talked about? But they saw this massive shift towards cloud computing. It made some, you know, some pretty bold investments in Azure. So they leveraged their existing strengths and also like embraced new technologies. That’s a smart move. Totally. Yeah. And their finance teams played a huge role in this. They helped guide that that capital allocation towards Azure, making sure the company was putting its resources in the right places to build a lasting advantage. That’s a perfect example of how FP&A can be so much more than just, you know, number crunching. It’s about strategic decision making and having that long term vision. Couldn’t agree more. Microsoft’s finance professionals help the company see the potential of Azure, you know, the long term potential. And they made those investments to get themselves established in that market. Okay, so Microsoft’s a great example. Any other companies you think are really killing it when it comes to moat building? Well, let’s talk about Amazon again. We’ve already talked about their cost advantages and that that incredible logistics operation they have. But their story goes even deeper than that. Oh, I’m all ears. Amazon just seems like this unstoppable force. Always curious to learn more about how they do it. Well, they’ve really mastered what’s known as the flywheel effect. Yeah. Basically, each part of their business just reinforces and strengthens all the other parts. The flywheel effect. Okay, I like the sound of that. But can you break that down for me? Not sure I fully get it. So imagine a giant spinning wheel, right? Takes a lot of effort to get it moving at first. But once it gains momentum, it’s almost impossible to stop. Okay, yeah, I can kind of visualize that. So with Amazon, their massive scale gives them this this huge cost advantage, allows them to offer lower prices than anyone else. And that, of course, attracts more customers, which gives them even more data and insights. And then they use that data to improve their offerings even more and keep those cost advantages going. So it’s like this like this self perpetuating cycle of growth and dominance. Precisely. And their Prime membership program plays a huge role in this whole flywheel. Ah, Prime, yes. I have to admit, I’m totally hooked on that free two day shipping. It’s brilliant. They’ve created this incredible customer loyalty program. It makes it almost unthinkable for a lot of people to shop anywhere else. I know what you mean. Once you get used to that convenience and the selection, it’s hard to imagine going back. And all that customer loyalty gives Amazon even more data and insights, which, of course, they use to personalize those recommendations, refine their product offerings, just make the whole ecosystem even more appealing. So they’re basically using data as a weapon to fortify their moat. That’s impressive. They’ve built this data driven flywheel that’s incredibly tough to disrupt. It’s a masterclass in moat building. Okay, Amazon’s clearly a dominant force. Any other moat building champions that we should be studying? Well, we can’t forget about Coca-Cola. They’ve been around for over a century and their moats still as strong as ever. That’s true. I mean, Coca-Cola is practically a global icon at this point. What’s the secret to their enduring success? It’s combination two things, exceptional brand power and an incredibly powerful distribution network. So you have the Coca-Cola brand, which is recognized and loved all over the world. And then you have their ability to get a Coke into the hands of like anyone on the planet. Exactly. They spent decades building these strong relationships with bottlers and distributors around the world. Gives them unmatched reach that’s almost impossible to replicate. Yeah, I bet that makes it pretty tough for any new beverage company to compete. They just can’t match that kind of distribution. It’s a huge barrier to entry and their brand recognition combined with their marketing and advertising gives them a lot of pricing power. People are willing to pay more for a Coke because, well, because it’s a brand they trust. They have an emotional connection to it. It’s amazing how they’ve managed to stay relevant for so long. I mean, over a century in business, that’s incredible. It really is. Speaks to their marketing and their ability to adapt to changing tastes while staying true to their core brand. Coca-Cola is a good reminder that even in what seems like a simple industry like beverages, a strong moat can be the key to long term success. Absolutely. They’ve proven that combining brand power with a strong distribution network can be a really effective moat strategy. You know, I’m starting to see a pattern here. It seems like the companies that are really successful, the ones that last are the ones that can combine different types of moats. It’s not just about having one strong advantage, right? It’s about layering those advantages to create a truly formidable defense. You’re absolutely right. The companies with the most durable moats, the ones that are really hard to break down, are the ones that create these multi-layered defenses like Apple with their brand, their customer loyalty and that tightly controlled ecosystem or Amazon with their cost advantages, their massive distribution network and that data driven flywheel. It’s like building a fortress with like multiple walls and a moat full of crocodiles. I love that analogy. It’s about creating this web of competitive advantages that make it really hard for anyone to, you know, to attack your position. It’s about making yourself as close to untouchable as possible. This has been so eye-opening. It’s amazing to see how these ideas actually play out in the real world, how they can make or break a company. It’s fascinating, isn’t it? It really shows you how much strategic thinking and long-term vision goes into building a truly successful business and that financial discipline. We’ve covered a lot of ground, but before we move on, I want to like bring it back to our listener for a minute. We’ve talked about these different types of moats, seen how they work in the real world, but what can our listener actually do with this knowledge? How can they apply it to their own lives, whether they’re, you know, investors or entrepreneurs or just people who are curious about business? That’s a great question. One of the most valuable things you can do is start looking at the companies you interact with through the lens of economic moats. Start asking yourself some questions. OK, like where this is going. What are their core competitive advantages? What really sets them apart from the competition? Right. Do they have a strong brand? Are their customers super loyal? What makes them unique? Are their products or services hard to copy? Do they have something that’s truly different? Or do they have a cost advantage, something that lets them offer the best prices? And maybe most importantly, are they making investments that will actually strengthen their moat in the future? Yeah. Are they innovating? Are they adapting to chain? By asking these questions, we can really start to understand why some companies succeed and others, well, they don’t. It’s like having a secret decoder ring. Exactly. It gives you this framework for understanding how business really works. I love that. Once you understand these dynamics, you can make better decisions, whether you’re investing your money or, you know, starting a new business or even just deciding where to spend your money as a consumer. It can really change the way you see the world. I totally agree. It’s about realizing that business success isn’t just about luck, you know, or being in the right place at the right time. It’s about making smart choices, choices that create lasting advantages, choices that set you apart. This has been incredible. I feel like I have this whole new understanding of how businesses work. What really drives success over the long term? Me too. It’s amazing what we can learn from studying those companies, you know, the ones that win and the ones that lose the successes and the cautionary tales. They all have so much to teach us. Okay, so we’ve covered a lot, but I know there’s still more to explore.

(…)

What does the future hold for this whole idea of economic moats? That is the question. The world of business is always evolving, but I think we’ve built a good foundation here today. Yeah, we’ve looked at the different types of moats, learned how to spot them, talked about why they’re so important for long term success. But I’m curious, are there any new trends, any new ties of moats emerging that we should be keeping an eye on? What is the future of economic moats look like in a world that’s changing so fast? That’s a great question. And I think it’s the perfect way to kick off the last part of our deep dive. Stick around, because things are about to get even more interesting as we explore the cutting edge of economic moats. Okay, so we’re back for the final part of our deep dive into economic moats. And we’ve left the most interesting question for last.

(…)

What does the future hold for this whole concept of moats in a world that’s changing so rapidly? That’s right. We’ve covered the classic ones like brand power and network effects, but the business world never stands still.

(…)

Are there any like new types of moats emerging that we should be paying attention to? You know, one trend I find really fascinating is the growing importance of data as a moat. Yeah, we touched on this a little bit with, you know, Google and Amazon, but it sounds like data is becoming even more crucial for businesses today. Oh, absolutely. In the past, you know, companies built moats based on things like physical assets, factories, distribution networks, or they relied on things like patents and government regulations to protect their position. Right. But now it seems like data is like the most valuable asset a company can have. I think you’re right. Think about companies like Facebook, Netflix, even Tesla. They’re all gathering huge amounts of data on their users. And they’re using that data to, you know, personalize their offerings, improve their algorithms, really understand their customers’ needs and behaviors. Exactly. That kind of data advantage is really tough for competitors to overcome. It’s like having this this treasure chest of insights constantly growing that lets you make better decisions and stay ahead of everyone else. So data is becoming this this kind of intangible moat, right? Just as powerful, if not more so than the traditional moats. I think that’s a great way to put it. But it’s not just about having a lot of data. It’s about knowing what to do with it. The companies that can analyze that data, extract those insights and then act on them. Those are the ones that are really going to benefit. It’s like it’s like having a superpower. You see things that others can’t and you use that knowledge to make strategic decisions. I love that analogy. Data is the fuel that’s powering so many of the most successful businesses today. Okay, data is a big one. Any other emerging moat trends we should be watching? Another really interesting area is the rise of platform businesses. Platforms you mean like Uber, Airbnb, Etsy?

(…)

Exactly. Those companies aren’t producing goods or services in the traditional sense. What they’re doing is creating a platform, connecting buyers and sellers, providers and consumers. They’re creating these whole new marketplaces. And the more people use the platform, the more valuable it becomes for everyone, right? Classic network effect, but on a massive scale. That’s the beauty of it. These platforms are creating entirely new markets and disrupting old industries in ways we never could have imagined a few years ago. It’s crazy to think about how these platform businesses are changing everything. You know, how we live, work, interact with each other. Absolutely. And the companies that build the most successful platforms are going to have a significant moat. It’s about creating that smooth user experience, building trust and always innovating to stay ahead of the game. So it’s not just about connecting people, right? It’s about building this whole ecosystem that benefits everyone. A win-win for both sides. Exactly. The best platforms are the ones that create value for everyone involved. They’re fostering this sense of community, you know, a shared purpose. Okay, data and platforms. Those are two big trends to watch. Any other emerging moat contenders out there? You know, I think this ability to adapt and innovate is becoming increasingly important as a moat in itself. Yeah. It’s not enough to just be strong today, right? You have to be able to evolve as the world changes. So it’s not just about what you’re doing now. It’s about your ability to like anticipate those future trends and challenges, being flexible, constantly learning. You nailed it. The companies that embrace new technologies, improve their offerings and stay ahead of the curve. Those are the ones that will win in the long run. It’s like Darwinian evolution for businesses, right? Survival of the fittest. Perfect analogy. The business world is more dynamic than ever before. If you can’t keep up, you’ll get left behind. Your moat will dry up. So just having a strong moat isn’t enough. It has to be a moat that can like transform and adapt. Exactly. The moats of the future. The ones that will last, they’ll be built on agility, a culture of innovation and a laser focus on the customer. This has been such an amazing journey, this deep dive into economic moats. We’ve explored how they work, why they matter and what might be next as the business world keeps changing. It’s been a real deep dive. So insightful. And it’s incredible what we can learn from those companies, both the successes and those that didn’t quite make it. The triumphs and the failures. I completely agree. But before we go, I want to leave our listeners with one last thought. We’ve talked a lot about how companies build and maintain their moats, but this concept can apply to all of us, you know, even if we’re not running some huge corporation. Ooh, I like that. What do you mean? Well, think about it. Each of us has unique skills, talents, experiences. Those are our assets. And just like a company invests in its assets to build a moat, we can invest in ourselves. So instead of thinking about economic moats as something that’s just for businesses, we can apply those same principles to our own lives. Exactly. We can learn new skills, gain knowledge, build our networks, you know, build our personal brand. It’s about making ourselves more valuable. That’s a powerful way to think about it, you know, personal growth, career advancement. We’re all building our own personal moats, our own defenses against the challenges we face in the world. So as we wrap up this deep dive, I want you to think about your own personal moat. What are your strengths? What are you passionate about? What makes you unique? And how can you keep investing in yourself? How can you make your moat even stronger? That’s such a great question to think about. Taking the time to reflect on those things can open up some amazing possibilities. Well, on that note, it’s time for us to say goodbye. Thanks for joining us on this journey into the world of economic moats. It’s been a pleasure exploring this with you. Remember, whether you’re analyzing a company, making investments or just navigating your own career, this concept can be a powerful tool. It helps you see patterns, understand how competition works and make strategic choices that will help you succeed. Until next time, keep learning, keep growing and keep building that moat. And don’t forget to share this with anyone who might find it useful. The more we all understand about economic moats, the better we’ll be able to navigate this crazy world of business. Thanks for listening.