Kraig Labs Widens its Moat

It seems like the Warren Buffett and Elon Musk innovation versus moats debate is about a couple of billionaires having fun publicly splitting hairs. Musk, CEO of Tesla Inc. (TSLA), stated, during his May 2 earnings call, “what matters is the pace of innovation.” Whereas, Buffett, head of Berkshire Hathaway (NYSE: BRK-B), believes that successful companies should have a moat, which is some level of competitive advantage that acts as a protective barrier.

While moats can come in many forms, like Coca-Cola’s (NYSE: KO) name brand awareness, they’re usually about an inherent advantage, like Apple’s (NASDAQ: AAPL) innovation and integration combo that motivated Buffett to snatch another 75 million shares, for Berkshire Hathaway, last quarter.

A perfect example of the innovation moat scenario is Kraig Biocraft Laboratories (OTCQB: KBLB), the leading, and only peer reviewed, Spider Silk technology. Because Spider Silk is believed to have so many high-end applications, including potential anti-ballistic and medical uses, many efforts have burned through over $1 billion, collectively, in trying to solve the mass production of Spider Silk riddle and Kraig Labs has not only solved the riddle, but it created an ingenious and very cost effective solution.

By creating, with the University of Notre Dame, transgenic silk worms that produce recombinant spider silk, Kraig Labs built a very deep moat. However, Kraig Labs didn’t believe its moat was wide enough, so it accepted an invitation from the Vietnamese government to set up production and, after several years of working through that country’s bureaucracy, it was just awarded an Enterprise Registration Certificate (ERC), which it will use to green light operations in that country.

Since Vietnam already has the infrastructure to support the biotech’s spider silk production needs, Kraig Labs believes that the issuance of the ERC is the most significant event in its commercialization process, because that allows Kraig Labs to widen its very deep moat.

Whereas it’s thought that Kraig Labs’ current competitors, which collectively raised about $300 million are looking to commercialize fibers that are projected to cost $35,000-$50,000 per kilo to produce, as opposed to Kraig Labs’ fibers that can be produced at price points much closer in line with traditional silk pricing, due to their transgenic silkworms and the existing silk infrastructure in Vietnam.

While Kraig Labs could have established production in other lower cost countries, by setting in Vietnam, Kraig Labs is better positioned to accelerate its pace of future innovation to further widen its moat.

Connect with 24/7 Market News on social media:

About 24/7 Market News

As a pioneer in digital financial market media, 24/7 Market News (24/7MN) is dedicated to the swift distribution of financial market news and information. 24/7 MN provides comprehensive corporate communications resources and tools to engage the investment community.


24/7 Market News (24/7MN) is a third party publisher and news dissemination service provider that produces regular sponsored and non-sponsored reports, articles, stock market blogs, and newsletters covering equities listed on the NYSE, NASDAQ and micro-cap exchanges. 24/7MN holds no investment licenses and is NOT a financial advisory firm, investment adviser, analyst, or broker-dealer and does not undertake any activities that would require such registration. 24/7MN’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities.

24/7MN has covered Kraig Biocraft Laboratories, Inc. in the past and owns shares. You may view this as a conflict of interest. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and based on publicly available information which is believed to be reliable. 24/7MN makes no representations as to the completeness, accuracy, or timeliness of the material provided and all materials are subject to change without notice. 24/7MN and/or its affiliates are not responsible for any gains or losses that result from the opinions expressed and are not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.

For further information on 24/7 Market News, please go to

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may,” “future,” “plan,” or “planned,” “will,” or “should,” “expected,” “anticipates,” “draft,” “eventually,” or “projected.” You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and MSC undertakes no obligation to update such statements

24/7 Market News
[email protected]

Add New Playlist