MSFT

The hidden value: where to look for the hidden treasure chest

Winning companies build a sophisticated and smart economic structure that creates a competitive advantage with each passing day.

By the SpyStocks desk · 8mo ago · 3 min read

The hidden value: where to look for the hidden treasure chest ❓

Winning companies - don't do it by force. 😇

They build a sophisticated and smart economic structure that creates a competitive advantage with each passing day, these are not companies that live "between rain and storm" - but companies that hold the tap. 💸

1️⃣Software - the new capital? 👨‍💻

No raw materials needed. ❌ No inventory. ❌ No distribution. ❌

There is a product. ✔️ Every additional customer, almost pure profit. 💵

Huge profit margins. ✔️

Recurring revenue. ✔️

Control. Forecasting. Scalability. ✔️

Examples of companies operating in such models include well-known software and payment giants from the American market - $MSFT $PLTR $SHOP

2️⃣Payment networks - collecting tax on the economy 🧾

They don't lend. ❌

They don't take risks. ❌

They only take a commission on every transaction. ✔️

A wall of trust, scale, and connections with the whole world companies like $V $MA 🌍

They are not the players in the game, they are the stadium. ⚽️

3️⃣Subscription platforms, profit with forecasting companies like $NFLX $SPOT - they know who the customer is, how much time is left, when they leave. 📱

They don't hope, they measure - when there is a good product, retention is an asset. 🪴

4️⃣Enterprise software - operational glue companies like $CRM $NOW $MNDY - once the company has implemented it - it cannot be removed. ⛔️

The cost to switch to another provider is high, risky, full of glitches. ✔️

This is pure pricing power. 💎

5️⃣Platforms without inventory - smart brokerage

Companies $ABNB $BKNG $DASH - do not hold products, they only connect parties. 🤝

Low fixed costs. ✔️

Brand advantage and vast data. ✔️

This is not logistics - this is control. 🦾

6️⃣Digital infrastructure - the information tap ⛏️

Cybersecurity, cloud, development tools. $NET $AMZN $VRSN this is the basis for everything 🏦

Once you've entered a company's infrastructure - it's hard to leave. 🔥

7️⃣ Franchising - the net capital

Example companies like $MCD $WING $DPZ

They don't operate. ❌

They only collect royalties. 🧾

This is not a restaurant, this is a cash collection system.

Easy to expand, easy to measure. 🪙

8️⃣ Luxury brands - selling a dream, not a shirt

Companies like $LVMH $RMS $RACE, do not try to compete on price. 🪙

They control your desire to buy. 🫴

The brand strengthens, it does not wear out. ®️

They offer passion, status - not products. ⚡️

8️⃣ B2B niche suppliers - small product, huge value

Company $AXON is an excellent example -

If your product constitutes 1% of the customer's cost, but 100% essential - you are in control. 💡

Customers don't leave, there is pricing power. There is an anchor. ⚓️

When a business model is strong - customers are drawn to it naturally. 🏎

And when the business model is strong - businesses don't beg for the price - they are the ones who dictate it. 🪧

There you can see models that generate stability and real value over time. 🔎

Related Stories

The factors for a stock price increase: earnings, multiple, and time

Guides1w ago3 min read

The cabinet that decides whether to buy your stock

Guides2w ago1 min read

97% of traders lose money: the problem is not the market, but what happens in our heads

Guides3w ago3 min read