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Just popping in here with the customary reminder that even if the sector is growing rapidly, that does not make any individual company in that sector automatica
by WJW 6y ago
Just popping in here with the customary reminder that even if the sector is growing rapidly, that does not make any individual company in that sector automatically a good investment. Just look at the giant graveyard of solar panel companies that went bankrupt.
- mirekrusin 6y agoBut we know they are rails shop, they'll dominate market if the market exists.
- lovemenot 6y agoYour analogy is apt. In both cases, excess capital drives unsustainable business models. In the case of solar panels, we *all" owe a debt of gratitude to China for commoditising a market that we all needed. It's industrial policy, yes. But even more because the product is strategic in other ways too. In the case of Deliveroo and the like, it's another example of capital markets still haven't figured out how to price the capital / tech-growth new calculus that started with Amazon. Deliveroo may turn out to be a harbinger, or markets may revert to dumb credibility in eventual tech-growth.