Behind the Balance Sheet cover image

#39 The Optimizer

Behind the Balance Sheet

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Invest with Time Limits

Investing decisions should consider a reasonable timeframe for market penetration, ideally around seven years. If a company cannot demonstrate growth potential within this period, or if abnormal growth must be expected for an extended timeline, it's wise to avoid investment. The search engine market exemplifies rapid evolution, where established players like Google can outpace and eliminate former competitors quickly, indicating that the landscape is less accessible for newcomers. Heavy asset investment strategies, as seen with companies like Amazon, require careful scrutiny to assess their long-term viability and growth prospects.

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