Reblog: Steven Cohen: Investors Take Note! Model-Driven Companies Will Accelerate Away From The Pack Now That Software Has Become Ubiquitous
One of the investors we follow closely here at The Acquirer’s Multiple is Steven Cohen, founder and chairman at Point 72 Asset Management. According to their last reported 13F filing for Q2 2018, Point72 has $25.056 Billion in managed 13F securities.
Cohen recently wrote a great article together with Matthew Granade, managing partner of Point72 Ventures, at the WSJ which provides a warning for investors based on the impact that model-driven companies are having on the changing business landscape saying:
“Software continues to eat the world, but yesterday’s advantage is today’s table stakes. In the hunt for competitive advantage, model-driven companies will accelerate away from the pack now that software has become ubiquitous.”
Here’s an excerpt from that article:
The software revolution has transformed business. What’s next? Processes that constantly improve themselves without need of human intervention.
Marc Andreessen’s essay “Why Software is Eating the World” appeared in this newspaper Aug. 20, 2011. Mr. Andreessen’s analysis was prescient. The companies he identified— Netflix , Amazon, Spotify—did eat their industries. Newer software companies—Didi, Airbnb, Stripe—are also at the table, digging in.