This morning I have published a tweet about a talk at the Francisco Marroquín University, “Investment according to the Austrian School of Economics” by the Fund Manager Francisco García Paramés. Author of the book called Invirtiendo a largo plazo.
For him, investments like Google or Facebook are still Venture Capital, 15 years are not enough for Francisco to invest or try to understand the business. But technology (Internet in this case) does not mean that you cannot take advantage of this technology to increase the valuations in other company, you can find other ways to do it. For example:
- Look for non-Internet companies that indirectly benefit from Internet traffic. For example, DHL benefits from Amazon. Or other package delivery company does the same.
- An Internet business is embedded in a non-Internet company with real earnings and a reasonable stock price.
- Old-fashioned business uses Internet to cut costs, improve operations and become more efficient.
SAETA CAPITAL 