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Who Has The Best Business Model?
Howard Lindzon
July 05, 2018
It’s back to work not that Independence Day is behind us. I can’t believe it is already July and half of 2018 is gone.
Back to work for me means more reading and networking to find the next big winners in startups and the stock market.
I read this great piece from Eric Feng of Kleiner Perkins titled ‘Who Has The Best Business Model‘. It is definitely something venture capitalists like to discuss. Have a read. I agree with him that Google and Facebook should make a run at Shopify to diversify out of the advertising business. I like how he ends it:
As the fight continues for control of our phones, our homes, our cars, our wallets, our food, our health, our time, a key weapon on the battlefield will be what business model they wield. And I believe that shared-value transactions powered by commerce will be the most lethal weapon of choice in determining whose business reputation will remain intact.
In the stock market, the best business model does not mean the best stocks or returns.
It’s easy to banter about the returns of the big internet companies, but since 2010 it is Domino’s that beats Netflix and the rest of FAANG since 2010:
Return since 2010:
Netflix: 2,421%
Amazon: 1,468%
Tesla: 1,204%
Google: 421%
Apple: 419%
Domino's Freakin' Pizza: 2,501%
— Morgan Housel (@morganhousel) July 3, 2018
Bitcoin has no business model but is up many more thousands of percent than Netflix over the same time period.
If you are looking for the best stocks since 2010 it is actually paint protection film, manufactured housing and commercial dry cleaning equipment that have made their investors the most money
How can you not love the world of investing!
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