Taking on Big Co.

Commentarya year ago
There's an old saying in technology: "every market is a race between a new entrant pursuing distribution, and an incumbent pursuing product innovation."
Or put differently, will Fast Growing Co. be able to become big before Big Co. modernizes its product enough. If Big Co. does, Fast Growing Co. could experience major challenges.
Take Zoom vs. Microsoft.
Many investors would argue that Zoom has built a sleeker video conferencing product (it works seamlessly) while Microsoft has more dominant distribution (millions of enterprise customers already using Office 365).
As Zoom shareholders know well, fast growing companies can yield exceptional investment returns, but for true marketplace durability, the company needs to find the path to get really big. Distribution.
We're seeing the same in travel. Earlier this week, we published a deep dive on Airbnb. What we found was an innovative company that had the right "bone structure" to potentially be a good investment (one we're considering). Yet despite billions of dollars in funding, Airbnb has fewer active listings than the incumbent, Booking (a Titan Flagship holding). Airbnb is going up against Booking's 12-year head start which has yielded massive scale advantages.
Travel startups have come and gone, and yet ~24 year old Booking.com continues to chug along quietly, delivering +26% annualized returns to its shareholders over the past decade. 
Some investors salivate over innovation, but distribution advantages are harder to win and identify early. The prize is large for those who can.

Become a Titan investor today.

Titan Global Capital Management USA, Inc ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 110 Greene Street, Suite 910, New York, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
© Copyright 2021 Titan Global Capital Management USA, Inc. All Rights Reserved.