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Economic Moat Scorecard

Assess the strength and durability of a company's competitive advantage — its "economic moat." Buffett only invests in businesses with wide, sustainable moats. Score yours across six dimensions.

Enter Company Financials
Use 5-year averages where indicated for more reliable moat assessment. Find this data in the company's annual reports or on Morningstar.
Higher = pricing power
Profitability after all expenses
Return on invested capital
Weighted avg cost of capital
Compound annual growth rate
Cash conversion quality
Lower = more financial strength
EBIT / Interest expense
Return on equity
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Pricing Power —
Based on: Gross Margin, Net Margin
Capital Efficiency —
Based on: ROIC, ROIC vs WACC spread
Growth Durability —
Based on: Revenue Growth CAGR
Cash Generation —
Based on: FCF/Net Income conversion
Financial Strength —
Based on: D/E Ratio, Interest Coverage
Shareholder Returns —
Based on: ROE
Understanding Economic Moats
What is an Economic Moat?
A term coined by Warren Buffett to describe a company's sustainable competitive advantage that protects its profits from competitors. Like a castle's moat defends against invaders, an economic moat defends market share and margins.
Why Moats Matter
Companies with wide moats can maintain high returns on capital for decades. Buffett has said: "The key to investing is determining the competitive advantage of any given company and, above all, the durability of that advantage."
Types of Moats
Brand power (Coca-Cola), network effects (Visa), switching costs (Microsoft), cost advantages (Costco), intangible assets (patents), and efficient scale (utilities). The strongest companies often possess multiple moat sources.
Quantitative Signals
Consistently high ROIC above WACC, stable or expanding margins over 5+ years, strong cash conversion, and low debt relative to earnings. These financial fingerprints reveal whether a qualitative moat actually translates to economic value.
AI-powered moat analysis for every stock
LIUV's Portfolio Advisor combines quantitative moat scoring with qualitative analysis — brand strength, competitive positioning, management quality — to deliver a comprehensive moat assessment for your entire portfolio.
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Disclaimer: This scorecard provides a simplified quantitative assessment of competitive advantage based on user-entered financial data. Economic moats also depend on qualitative factors (brand, patents, network effects) not captured here. This is not financial advice. Consult a qualified financial advisor before making investment decisions.