Speaker unverified: belief

Transcript context

…Yeah, it’s amazing. It’s really meets the Bill Gates line of the definition of a platform that they’ve created way more value for their customers and their ecosystem than they’ve captured for themselves. Yeah, which is so cool because obviously now a traditional Internet or ecommerce platform, the way most of SaaS platform, the way we think about platforms is like a manufacturing platform which is just so unique. There’s one point that you’re getting at here. It is part of the white paper of what we discussed earlier, which is about leaving money on the table for your customers and leaving money on the table for your partners. It reminds me a lot of when we did the Altos episode with Ho Nam. It’s really this idea that if you as the management team or if you as an investor who deeply understands the company knows that, in a way that other people outside the company can’t underwrite, then you can’t do a much more intelligent job valuing the company than anybody could with a brute force metrics such as industry average earnings multiple. Because if you actually understand, well our earnings could be this if we wanted it to, or our growth rate could be this if we wanted it to, but we’re making strategic trade-offs to not do that, then you actually have a unique ability to underwrite the company’s value and thus actually more of a margin of safety or more of a willingness to pay up than anybody else. It’s interesting being deeply studied about these companies where you do know that they’re sort of leaving something on the table for other participants that you can be more comfortable making an investment than other people can.…

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