Building Modern Monopolies

This podcast is sponsored by:

The CFA Institute. The CFA Institute is the global association of investment professionals whose mission is to lead the investment profession by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society. CFA Institute serves a global community of investment professionals working to build an investment industry where investors' interests come first, financial markets function at their best, and economies grow. The Chartered Financial Analyst credential is the most respected and recognized investment management designation in the world. The views expressed in this podcast do not necessarily represent the views of the CFA Institute.

[00:02:39] – (First question) – Exploring the history of business models from linear to platform

[00:05:46] – A look at the share of overall business platform companies have taken over

[00:07:48] – The potential for platform businesses over the next 20 years

[00:09:18] – Detailing the difference between a linear and a platform business

[00:12:08] – Exploring transaction costs and core transactions across different business models

[00:19:49] – Is the platform business model good for investors and VC’s since so many can get crushed when there’s a sole victor, or is it just for the founders and entrepreneurs

[00:24:35] – How the self-driving car is going to deliver more opportunity for consumer consumption

[00:27:15] – Untapped supplies as the opportunity for new platforms and where we could see new openings

[00:30:24] – How consolidated will things become across all platforms

[00:33:16] – How do platform companies create a moat to keep others from replicating their business strategy

[00:37:03] – Are there platform strategies that specifically don’t work

[00:38:45] – Why complex systems typically don’t scale up and you should think small and easy to get started

[00:40:02] – How the origin of so many larger companies started out small and localized, and why it makes investors more comfortable

[00:41:37] – How Alibaba had to tweak its business model to accommodate the Chinese market

[00:44:07] – Why are the modern monopolies better for consumers

[00:47:52] – Exploring platforms that are asset-heavy

[00:49:00] – What do you look for as a VC to determine

[00:52:05] – Alex’s take on whether a platform-based company like Uber should be more asset-heavy

[00:54:31] – Exploring some lesser-known platform businesses that Alex finds interesting

[00:56:18] – If there is a demand in the secondary markets for a product, why don’t the primary suppliers simply raise their prices

[00:57:03] – What Alex’s portfolio of platform-based businesses would look like

[00:58:48] – A couple of most influential books Alex has read

[00:59:53] – Looking at Applico, how it started, and how it becomes so focused on the platform business model

[01:03:56] – The most memorable day for Alex

[01:05:13] – Kindest person to Alex in his life

[01:06:10] – What platform opportunities could exist in the financial world