In depth 

Digital champions

Digital champions

In his 1986 letter to Berkshire Hathaway shareholders, Warren Buffett used the phrase “moat” to illustrate a durable competitive advantage. During a discussion of GEICO insurance, he wrote: “The difference between GEICO’s costs and those of its competitors is a kind of moat that protects a valuable and much-sought-after business castle.” Put another way, GEICO’s competitors tried desperately to match its low-expense business model but failed. This allowed GEICO to charge lower premiums than its competitors while delivering similar profitability.

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