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TIP686: Big Tech Stocks w/ Adam Seessel

We Study Billionaires - The Investor’s Podcast Network

ANECDOTE

Amazon vs Alphabet

  • Adam Seessel initially believed Alphabet had a superior business model to Amazon due to its capital-light nature.
  • However, he revised his view, recognizing that Amazon's capital intensity creates a barrier to entry, making it difficult for competitors to dislodge them.
  • He cites Amazon's e-commerce network and AWS cloud infrastructure as examples of this, noting their significant economies of scale.
  • Seessel points out that Google Search, being less capital-intensive, is more vulnerable to disruption, unlike Amazon's entrenched e-commerce and cloud businesses.
  • This contrast highlights how capital intensity, while requiring reinvestment, can offer substantial competitive protection.
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