competitive advantage
8 posts
NYT Write-Up
barriers to entry
For the first time in years, investors have become pessimistic on the main drivers of NYT’s business model – its digital news subscriber potential & its digital news pricing power. This write-up examines base rates for both of these drivers.
What's Priced In?
Valuation
Stock prices are the clearest and most reliable signal of the market’s expectations for a business’s future performance. Ignore them at your peril!
10 min read
Scale Economies Shared
Flywheel
Scale Economies Shared businesses have a flywheel because their competitive advantages increase as the business grows larger, making it harder and harder for competitors to offer as much value to customers.
39 min read
Online Marketplace Businesses
Flywheel
Marketplace businesses offer one of the most durable competitive advantages available in the business world: network effects. The best marketplaces deliver value to all parties involved in the transaction (often creating Money Out
What Makes Stocks Go Up?
Investing
If you read the title of this and are hoping for a magic formula that mints money, then read no further. You’re not going to find what you’re looking for in
The Nature of Content: New York Times vs Netflix
Investing
How does the nature of content impact long-term margins at media businesses? All else equal, the more durable your content, the less you need to continually spend on content creation. Let's explore that.
The Customer Value Proposition of the Cloud
cloud
The cloud is a great example of why it is often beneficial to turn your fixed costs into variable costs. Concurrently some players are emerging as scaled champions from having this be a fixed cost.
11 min read
When Fixed Costs Turn Variable
Investing
What happens when a variable cost turns fixed? What happens when a fixed cost turns variable? Let's explore.
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