Long Inovation

Wednesday, November 27, 2013 Francisco Carneiro 0 Comments

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Druckenmiller described Google Inc. as the most “innovative company on the planet,” citing the company’s web-enabled eyeglasses and self-driving cars. He said investors who want to bet on innovation should buy shares of Google and those who want to bet against innovation should buy IBM shares.

http://www.bloomberg.com/news/2013-11-22/druckenmiller-shorting-ibm-in-bet-cloud-computing-to-win.html

This is a very interesting interview and besides the Nikkei theme (min 6.40) he clearly cites the case for the new monopolies. Amazon & Google. I have posted several times in the last year about 2 themes

Here http://thoughtmeme.blogspot.pt/2013/11/brands-monopolies.html

a)Big get Bigger
b)Monopolies

Well there is no doubt that some companies are going to win big, because of economies of scale, because of brand & because of R&D & Marketing dollars/budget. On top of this a lot of people love to buy the number 1 player which is a low risk option. If the number 1 can even provide a better service......

These companies, Google, Facebook, Priceline, Amazon, are going to win but are already very expensive. What to do?

The smart money always loses money shorting bubbles because they cannot comprehend that it could go as high as it does
- Jim Rogers