Change in the business world is accelerating.
Business customs, technological change, and consumer tastes have always evolved, but in recent years this seems to be at warp speed. Technology, as always, is the biggest driver, but other social factors also play into this. Globalization is a fact of life today and drives many of the changes we see too. Remember life before the cell phone, the internet, or even computers; it wasn’t that long ago.
Investing and looking for opportunity in this fast passed environment isn’t so easy. Fundamentals of business are pretty durable, but the time-frames that can be counted upon are much shorter.
A good business today may simply not be one in just a few years. As examples there are department stores, malls, and big box “category killer” stores that now seem quaint. On-line shopping has supplanted these as growth engines.
All this does not mean there aren’t opportunities; there are more than ever, but going about evaluating these has changed dramatically. This is a process at Riverplace Capital that we love. Learning and staying current is never ending; enjoy!
The Lonely Bull