Technology-Related Company Investing Observations
• Booms / Busts – In periods of material business disruption – like
those brought about by the evolutions of the Internet – company
creation typically goes through a boom bust boom-let cycle
while wealth creation typically goes through a boom-let bust
• Valuations – There are pockets of Internet company overvaluation
but there are also pockets of undervaluation – the one rule is that
very few companies will win – those that do – can win big.
• Platforms – Race is won by those that build platforms & drive free
cash flow over long-term (a decade or more).
• Free Cash Flow – Value of a business, over time, is the present
value of its future cash flows.