Levi Strauss & Co (NYSE: LEVI)., commonly known as Levi’s, is an iconic American clothing company renowned for inventing blue jeans. Founded in 1853 by Bavarian immigrant Levi Strauss in San Francisco during the California Gold Rush, the company initially sold dry goods before partnering with tailor Jacob Davis in 1873 to patent riveted denim pants, creating the original Levi’s® 501® jeans.
In the context of the stock market, a moat refers to a company’s competitive advantage that makes it difficult for its competitors to gain market share or compete with it effectively. It is a metaphorical reference to the medieval castle moat, which made it challenging for enemies to breach the castle walls.
A company with a wide moat has a sustainable competitive advantage that can help it maintain or increase its market share and profitability over the long term. This competitive advantage can be achieved through various means such as strong brand recognition, high switching costs for customers, a large distribution network, proprietary technology or intellectual property, economies of scale, or government regulation.