Quality growth in technology markets: A systematic approach


Hi Qapitalist!

Here is your Friday publication. The technology sector’s unprecedented growth over the past decade has created extraordinary value but also posed a fundamental question: How can investors systematically identify companies capable of sustaining quality growth in rapidly evolving markets? Building on foundational research in quality investing (Graham & Dodd, 1934) and modern platform economics (Parker & Van Alstyne, 2018), our study presents a comprehensive framework that bridges classical quality investing principles with contemporary technology market dynamics.

Quality growth in technology markets: a systematic approach

Quality in tech? It's evolving. 🚀

Remember when tangible assets defined success?

Those days are over.

Today's tech titans build empires on intangibles:

• Network effects 🕸️
• Data moats 🏰
• Platform ecosystems 🌐
• Innovation velocity ⚡

The impact? Staggering.

Companies harnessing these new quality metrics:

• Grow revenue 2.7x faster 📈
• Boost customer retention by 89% 🤝
• Achieve 40% higher gross margins 💰

As a strategist, I've witnessed this shift reshape competitive landscapes firsthand.

It's no longer just about superior products.

It's about cultivating self-reinforcing advantages that compound over time.

The new tech playbook? Create flywheel effects that accelerate growth.

Read more...

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