I’m astounded by how often the concept of “building moats” comes up. If you think the technology you’re building is good for the world, why not laser focus on expanding your tech tree as quickly as possible vs. slowing down and dividing resources to impede the progress of others?
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i) Moats are often structural qualities of a business, not something additional that has to actively be built, and ii) a moat just means ability to maintain margin (through higher prices or lower costs) over a long time horizon, which allows for more R&D.
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Moats can also be things like brand. Take Airbnb or Nike - the same brand dynamics that lead to growth and differentiation also lead to a moat.
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generating new knowledge in any area, be it science or art, is extremely difficult and takes a lifetime of dedication usually, so definitely not the norm.
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Can't you do one without the other? Laser focus on expanding your tech tree as quickly as possible without deliberately slowing down and dividing resources to impede the progress of others? I think it's pretty clear that Tesla is achieving this. Their moat is unsurmountable.
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Bcs most ppl bets are small and deep down they believe anyone could do it, so a moat you need. Very hard and rare to truly look forward only. Many fear being beaten by others than by the problems they are trying to solve.
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Infinite vs finite games.
Tech moats aren't always built with the intention of specifically being tech moats.
If you play the infinite game, and you're the leader, tech moats seem to naturally emerge.
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Honestly, it's a misapplication of the metaphor if folks are using it as a strategy to slow down/impede the progress of others. Buffet's 'moat' concept is mostly about being able to predict market demand based on habitual acts & events.
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Why many start-ups think this way is that they need to protect themselves from giant, predatory superpower companies who can copy and steal their work (almost at will).
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It's kinda silly