I recently read Warren Buffett describe the moat¹ as one of key things to consider when evaluating a business. That is, how protected a business is from incursion by competitors.

This seemed like the perfect *inverse* metric of companies with which I want to do business.

I prefer to engage with businesses where they *know* I have a choice and they take steps to make me *want* to be there. They have an exit-ramp for me to take my business elsewhere if they don't compete for it. They have great products. They have great service.

It's why I like standards. Didn't like my mail-provider? I just connected via IMAP, cloned over my data to a new host, updated my DNS records, and done. Same with web-hosts. Or my mail-software (sorry, Thunderbird). Or automotive businesses.

So financial firms might recommend a business because of the moat, and it might be a green flag for purchasing stock.

But it's a definite 🚩red flag🚩 when it comes to entering a business relationship.

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¹ https://en.wikipedia.org/wiki/Economic_moat