The following is a must read for all Godzilla gamers!
I sent an email to the author of the fm on Sunday telling him about our thread and thanking him for his book. He asked me to post the following message in response:
>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Gorilla-game investors:
In the revised edition of the Gorilla Game just out, we revamped our approach to Internet stock investing and introduced a new term, godzillas, for transaction services stocks that appear to have increasing returns. In the B-to-C space, these are the usual suspects - AOL, AMazon, eBay, Yahoo, etc. In the B-to-B space, these are emerging, and our view is somewhat slanted by the fact that Tom Kippola and I are both shareholders in Internet Capital Group. The key point here is that service offerings can be taken up faster than product offers and so can tornado incredibly quickly (note the Internet cell phone phenomenon in Japan, for example - I think 3 million new users in less than a year), so that makes Internet stocks very attractive. But switching costs appear to be very low - which makes this a very volatile king-like game. The 64 dollar question (OK, 64 X 10 to some exponent dollar question) is, what is the true nature of switching costs in each category of Internet service. That is the thing I would encourage all Gorilla Game investors to be helping each other think through, because that is where CAP will get determined.
Thanks for your interest and support of the Gorilla Game. I am delighted to hear that people are making money using the philosophy. To be fair, however, in this market even a blind squirrel can find acorns. The real test will be the coming correction.
Cheers,
Geoff
Geoffrey Moore
Chairman, The Chasm Group
(650) 312-1946
Venture Partner, Mohr Davidow Ventures
(650) 854-7236 |
