So, what 'other' moat does Ferrari or Hermes have? I'd argue that a brand can be one of the most powerful moats, but we just give out the moat 'brand' pretty quickly to a company. Network effects can be very strong, but it can disappear just as fast, because of the same network effect.
I think, without a doubt, economies of scale are the strongest moat (as long as they play their cards right) and then a strong brand.
So, what 'other' moat does Ferrari or Hermes have? I'd argue that a brand can be one of the most powerful moats, but we just give out the moat 'brand' pretty quickly to a company. Network effects can be very strong, but it can disappear just as fast, because of the same network effect.
I think, without a doubt, economies of scale are the strongest moat (as long as they play their cards right) and then a strong brand.
Ferrari and Hermes have strong brand moats, but we feel are the exception to the rule