3 ideas
Some companies deliberately pass cost savings from growing scale back to customers through lower prices rather than capturing them as margin, which drives more volume, which lowers costs further, creating a self-reinforcing loop. The customer's saving becomes the company's growth engine, making the model extremely durable because it strengthens the more it is used.
Judge a company by where its model is heading and what it is becoming, not by its present financial snapshot, which may look unimpressive precisely because management is sacrificing current profit to build future advantage. The market systematically misprices firms whose deliberate reinvestment depresses near-term earnings while compounding long-term value.
Sustained outperformance comes less from superior information than from a willingness to hold through volatility that forces shorter-horizon investors to sell, so the durable edge is behavioral and structural rather than analytical. By deliberately matching capital to a multi-year horizon and tolerating interim underperformance, an investor can harvest returns that others cannot wait for.