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Facebook has a lot of business moats, but when it comes to the fleeting attention of the youth, and trends, there is no way to moat that. The second you moat a
by criley2 12y ago
Facebook has a lot of business moats, but when it comes to the fleeting attention of the youth, and trends, there is no way to moat that. The second you moat a generation's trend, the next generation declares you old and busted and will do anything but use you.
Which is probably why Buffet doesn't invest in fads and social media: http://www.fool.com/investing/general/2014/01/27/why-warren-buffett-would-never-buy-facebook.aspx http://www.fool.com/investing/general/2014/01/27/why-warren-...
- IgorPartola 12y agoI actually think this is awesome. This means a few motivated individuals can put together a niche social network and have a guaranteed buyout from Facebook. Basically, if you get big enough, they have to buy you. I think the only option they really have is to spin off new social networks to cater to new generations and become just a holdings company for them. Sort of a YC of social networking. Their main advantage would be the ready source of funding vs a random college student thinking up the next Whatsapp or Instagram.