Sunday, 8 March 2015

The Copycat Investor (Part Two)

The last time I spoke about the philosophy of a copycat investor on the investment approach taken and what drives the investment decision, I tried to distinguish the copycat investor from the coattail investor. This time I want to look at the copycat investor in a little different way. If you are going to copy the ways of Mark Zuckerberg, you cannot start another Facebook and expect the same level of success. Seek to connect the earth in a different business space.

Peter Thiel in his book Zero to One wrote about the principle of moving an idea from zero to being number one in a space. He went on further to encourage that the investor avert becoming disruptive when entering a business space, but rather try to create a difference and strive to become a monopoly.

There is only one Berkshire Hathaway and indeed only one Warren Buffett, only one Apple, and only Microsoft.

  1. Be a monopoly (the only one your investment space)
  2. Being non competitive is an advantage (market disruption is not necessarily a good thing) 
  3. Bolt on useful ideas to complete your own (reference what works)
  4. Bring different talent to bear on your efforts (check your ideas)
  5. Beware of the known risk and provide for it (caveat emptor)
I like what these bloggers are doing:

  1. Tia Lopez
  2. Brian Johnson
The copycat investor can master the cloning business by designing his own lego.

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Feel free to ask question and make comments.