So we asked ourselves, “what will provide defensibility” and the answer we came to was networks of users, transactions, or data inside the software.
I've always found investment philosophies like this to be too overgeneralized. When I ask myself the question of what will provide defensibility, I can't think of a good answer other than "it depends".
The question really is "how much does it depend?". I think it depends enough such that it's best to just look at each company on a case-by-case basis.
I concur. It seems like it's missing loads of history. Remember when MySpace was the juggernaut with a huge network of people? Then practically overnight they became a joke. Same with Alta Vista, and a million other companies.
networks seem invulnerable, but they are just as vulnerable than anything else. A network cannot keep growing, and it also cannot bleed users or it will lose stability. so inevitably it ends up in a position that it has to keep buying out competitors
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I've always found investment philosophies like this to be too overgeneralized. When I ask myself the question of what will provide defensibility, I can't think of a good answer other than "it depends".
The question really is "how much does it depend?". I think it depends enough such that it's best to just look at each company on a case-by-case basis.
I concur. It seems like it's missing loads of history. Remember when MySpace was the juggernaut with a huge network of people? Then practically overnight they became a joke. Same with Alta Vista, and a million other companies.
networks seem invulnerable, but they are just as vulnerable than anything else. A network cannot keep growing, and it also cannot bleed users or it will lose stability. so inevitably it ends up in a position that it has to keep buying out competitors