Costco gets paid before customers buy anything.
Most retailers chase transactions.
Costco chases renewals.
A small difference in incentives.
A massive difference in outcomes.
#Costco#BusinessStrategy#TheQuantDigest
Most people think Amazon is a shopping company.
But you can use Amazon all day without opening Amazon. The store gets the attention. The infrastructure gets the power.
#Amazon#BusinessStrategy#Technology#Economics#Investing
The Dot-Com Bubble wasn’t created by bad technology.
It was created by investors believing innovation justified any price.
The internet survived. The speculation didn’t.
And markets still repeat that cycle.
#DotComBubble#Investing#Finance#StockMarket#AI#Crypto#Bubble
The biggest companies don’t always win because they’re better.
Sometimes they win because everyone else already uses them.
That invisible advantage is called: Network Effects.
The network becomes the moat.
#Business#Finance#Investing#Economics#TheQuantDigest