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0 pointsjacobjjacob1mo ago0 comments

Markets can’t see the product quality of a monopoly. It won’t be reflected in the metrics because there’s no competition to anchor the earnings to the real consumer value. But that doesn’t mean quality isn’t a factor- it makes them vulnerable to disruption.

Warren Buffett is known to trade on product quality (he buys what he uses). So his sale could be based on that.

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aetherson1mo ago

Amazon isn't a monopoly, it has 8% of retail in the US.

There's no real evidence that this trade was made by Buffet himself, and it's part of a general major sell-off of Amazon that transparently did not temporally align with the idea that Amazon's retail business has suffered a decline in quality.

This is the market making a (reasonable!) judgment that it lacks confidence that Amazon's capital expenditures will pay off.

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0 pointsjacobjjacob1mo ago0 comments

Warren Buffett is known to trade on product quality (he buys what he uses). So his sale could be based on that.

0 comments

aetherson1mo ago

Amazon isn't a monopoly, it has 8% of retail in the US.

This is the market making a (reasonable!) judgment that it lacks confidence that Amazon's capital expenditures will pay off.

j / k navigate · click thread line to collapse