A company isn't so attractive to invest in if it's been around for a number of years, or decades even. Time marches on, and people's desires change.

A company can try to keep up with the times, but I think this has a limit, as brand recognition and trust of a well known brand or company has less influence on consumer choices, when it moves into a new markets. The encumbent nearly always seems more attractive.

We buy shares in companies on the assumption of decent cash-flow and growth into the future, by creating products to sell. But when a company manages to hit its total addressable market, what then?

Companies stagnate, try new things but nearly always fall back on what they know. We all saw this with Apple's failed attempt at an AR/VR headset, and didn't they try to do a car? Facebook with its metaverse etc. Shareholders demand perpetual growth that doesn't seem to be possible to attain.

This is why I think the stock market is a bit of a pyramid scheme, particularly the S&P 500 which is full of companies that can't grow any bigger, but their share prices continue to inflate because people see them as store of value. They are zombie companies. Technically dead, but kept animated through passive inflows of money.

This is where I think Bitcoin is interesting, because of the fixed supply, is it the only asset you can invest in (although it's not really an investment) that is actually going up forever, as Jeff Booth says, "as long as it stays decentralised and secure"

The distinction here is that companies become zombified when they hit their TAM, when Bitcoin hits its TAM, which is when all money that is sitting in store of value assets move into Bitcoin, it still grows because of the fixed supply and infinite divisibility.

I'm still thinking through the subject of scarcity. I find it interesting.

Why people still buy Apple and Microsoft stock is beyond me.

Was looking after a cute cockapoo called Roxy this week :)