Innovation & Markets by Michael Mauboussin
Terrific article, related to GG, and which was recommended this past week by the Motley Fool, and which I think Judith Williams had previously recommended here.
capatcolumbia.com
Major tenets of this paper are,
1. Technology and new innovations are accelerating in number and availability.
2. Therefore, the likelihood of a disruptive technology or discontinuous innovation displacing an entrenched market leader is increasing.
3. As such, the CAP or competitive advantage period is shortening, in general, for the gorillas and leaders; but the GAP, or excess in high returns is increasing. So, even greater GAPs, but shorter CAPs.
4. Bottom line recommendation: avoid companies approaching their economic twilight.
A good read. Basically reinforces the notions of greater and greater technologic advancements, faster and faster time to market, fantastic returns (potentially), and greater volatility with shorter CAPS.
Re: Storage....."Information storage is exploding as well. The world currently produces between 1-2 exabytes (an exabyte = a billion gigabytes, or 10^18 bytes) of unique information per year. This means that over the next 2.5 years, more information will be produced than was created since the dawn of civilization."
apollo |
