Most of the time, the market is efficient at pricing a business.
But, it often overlooks pricing in the optionality of a business.
Recognizing these patterns early on can provide big rewards.
4 types of hidden optionalities that could produce the next winner:
But, it often overlooks pricing in the optionality of a business.
Recognizing these patterns early on can provide big rewards.
4 types of hidden optionalities that could produce the next winner:
/1 Product Expansion
Potential to increase the range of products to the same pool of customers.
E.g.
$AMZN started out as an online book store and then expanded to become the "everything store".
$CRWD introducing new modules to their existing customer base.
Potential to increase the range of products to the same pool of customers.
E.g.
$AMZN started out as an online book store and then expanded to become the "everything store".
$CRWD introducing new modules to their existing customer base.
/2 New Businesses
Create entirely new business by leveraging the advantages of its core business.
E.g. $SE launched digital payments after establishing a strong presence in Southeast Asia's e-commerce.
$AMZN rolling out AWS because its e-commerce demanded huge usage itself.
Create entirely new business by leveraging the advantages of its core business.
E.g. $SE launched digital payments after establishing a strong presence in Southeast Asia's e-commerce.
$AMZN rolling out AWS because its e-commerce demanded huge usage itself.
/3 Strategic Pivot
Disrupt existing modus operandi to deliver a superior customer value proposition.
E.g.
$NFLX pivoted from mailing DVDs to a streaming company.
$DPZ from pizza company to becoming a tech company.
Disrupt existing modus operandi to deliver a superior customer value proposition.
E.g.
$NFLX pivoted from mailing DVDs to a streaming company.
$DPZ from pizza company to becoming a tech company.
/4 Expand Internationally
Expanding its TAM by exporting existing product overseas.
E.g.
$SBUX brand was well-received overseas and now has 50% of its stores abroad.
$SE Garena Free Fire mobile game made headwinds in Southeast Asia, LATAM, India and more.
Expanding its TAM by exporting existing product overseas.
E.g.
$SBUX brand was well-received overseas and now has 50% of its stores abroad.
$SE Garena Free Fire mobile game made headwinds in Southeast Asia, LATAM, India and more.
Want to learn more about finding great companies?
@heymaxkoh and I are running an investing course for beginners!
And there's an early bird discount of 15% till Wed 9am, EST.
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@heymaxkoh and I are running an investing course for beginners!
And there's an early bird discount of 15% till Wed 9am, EST.
For the first 100 sign-ups only.
Get your spot now!
zeninvesting.gumroad.com/l/investingaca…
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