A super awesome thread on megatrend that is shifting the world in drastic way...
What's that??
These are platform businesses....
What is platform business? How is it changing our lives? How does it matter to me as an investor??
READ ON TILL THE END..This is powerful..
(1/n)
First of all let's look at industrial age...what was happening with tata motors, bajaj electricals, reliance etc.??
You have PIPELINE model of business.
Raw material >> Components >> Assembly >> Distribution
What was the focus? >> How to make this supply chain efficient
(2/n)
You had all these part of your life...Bajaj, Tata, Aditya Birla, Pidilite, Asian paints, colgate etc.
And they created huge wealth for shareholders...MOST IMPORTANT RIGHT...
And they were able to scale in right way..
(3/n)
Now look around you....you take Uber/Ola cabs, order food from zomato, get shopping done from amazon/flipkart, your kids play games on xbox, you use twitter, FB etc
What are these? These are platform businesses?
These are businesses which do not own any product generally
(4/n)
Look at these...unlike traditional businesses which own factories and warehouses...these businesses do not own any of that...still they became NO. 1
And this is what happens around these core transactions
1. Create 2. Connect 3. Consume 4. Compensate
That's it and they get cut out of it...
(6/n)
Imagine business like Naukri....
1. HR creates jobs and posts it 2. Naukri connects it to right pool of candidates 3. Candidates consume that 4. On hire - Naukri gets a cut and both parties are compensated
So platforms are just like brokers?
(7/n)
Kind of in some cases like exchanges but many provide tools and ancillary services and some like android gives entire development platform...
So what's special about it?
(8/n)
Look at this ....some of the top companies in the world are now platforms..
Great thing about these are..
1. They are generally digital
2. Asset light and very few employees
3. SCALES VERY FAST - most important..
4. Has very high entry barriers
(9/n)
And best part is that instead of supply side economies of scale like traditional businesses, they have buyer side economies of scale as well
What does that mean.?
Means each incremental user on the platform adds great value to existing users without any cost to platform
(10/n)
Example: One new user on FB or tweeter can add lot more value to entire network...one new user on amazon/airbnb can add lot of value through reviews
And most of the times this creates NETWORK EFFECTS...which is very powerful moat and creates huge barriers to entry
(11/n)
And these are very powerful...and creates WINNER TAKES IT ALL EFFECT
So think about businesses around you & create wealth riding this megatrend...
It's great to see how it has panned out since few months...some of the platform or quasi platform businesses have done great and I believe should do well..
Examples:
- IndiaMART
- CDSL
- MCX
- MSTC
- IEX
- BSE
- Matrimony etc. And many more..
It's all about riding MEGATRENDS
And many more..
- Infoedge
- IGL
- Gujarat Gas
- Affle
- MCX
- Just Dial
....
What else?
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Ever wondered how to turn the stock market into your playground?
Meet William J. O'Neil – the maestro of investing! 🚀
Let's dive into his game-changing strategies and unveil the secrets to conquering the market.
Here you go...below are the secrets
William J. O'Neil was an American entrepreneur, author, and investor who is best known for his work in the field of stock market analysis and investment. He founded Investor's Business Daily,
a financial newspaper that provides comprehensive coverage of the stock market, and he is also the author of several books on investing
Nobody will tell you this....but it will transform your life....
Don't miss the last one....
A thread... Let's go....
(1/n)
1. Invest - Increase Income
Millionaires prioritize growing their income streams
They don't settle for just saving money; they actively seek ways to expand their earnings,
whether through entrepreneurship, investments, or side projects
Key is to keep exploring new sources
2. Think in Terms of Probability
Successful investors assess risk and reward by thinking in terms of probability
They don't take reckless risks or gamble their wealth away. Instead, they make informed decisions by analyzing the likelihood of success and potential downsides.
When we talk about investing, some of the common questions come to our mind like what to buy? What to avoid?
What are the important parameters to look at while researching any company?
These 5 videos will help you to kickstart your investing process step by step
Here you go..
1. How to do the stock analysis? | A step by step process using the screener tool
Learn how to effectively use screener from the very beginning, this will help you understand the financial strength of any business with a ready-made template.
(2/n)
2. How to identify a quality business?
Learn how to identify a good quality business with the help of some fundamental and technical parameters like...