Your favourite kind of MOAT and companies that relate to it
u/Ancient_Bobcat_9150 ·
Reddit — r/ValueInvesting
· May 19, 2026 at 18:16
· ⬆ 15 pts
· 💬 39 comments
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Summary
The post asks the community to share their favorite type of economic moat and gives examples: switching costs and network effects.
The author explicitly names Visa, Microsoft, S&P Global, and ASML as companies that possess both switching costs and network effect moats, implying these are high-quality, durable businesses.
Quality assessment: Noise / discussion prompt – not a detailed DD, but the author’s personal preference is clearly stated and supported by widely known moat characteristics.
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We all (should) value the importance of MOAT from a company - to allow a company resilience, longevity, competitive advantage and so on. I don't remember who wrote, but it is also important that a company does not have exclusively one MOAT, but several.
Do you have a favourite type of MOAT?
Here are the most common ones often mentioned:
**Size and scale**, **Cost Advantage** or **Technical edge** (production advantages)
**Brand strength**, **Switching cost** or **Network Effect** (consumer advantages)
**Intangible asset** which is mainly related to laws and regulatory barriers?
Personally, I try to favour Switching Costs and Network effect from mission-critical companies like Visa, Microsoft, S&P Global or ASML that all fit both MOATs