It is advised that before investing it is a healthy habit to analyse the asset fundamentally. We see people investing purely based on news and short term information. News and media will not cover a story about a fundamentally strong multi bagger stocks. It takes time for them to analyse and media’s rarely do this. But whenever they find something, let’s say stocks, flying it is immediately covered and they compete to out the coverage first. This is observed globally. Besides doing fundamental analysis requires lot of time and patience. There are thousands of companies out there and to find the good one with great potential is hard and risky. Risky means we have to trust our instinct that somewhere somehow we will find those stocks by sacrificing our time. It is a risk when it comes to time.
The first mover advantage maybe a myth like MySpace. It is not necessary to have a first mover advantage, but it may do good if managed correctly. In the world of crypto we could see Bitcoin reigning over a decade as the leading coin. It got its first mover advantage and it is way ahead than other altcoins. But does it means it will lead forever ? Not really. I’m case of Amazon the first mover advantage was a great benefit. It is not that because of Amazon being the first to deliver goods through online, it is the ever growth mindset of Jeff Bezos. Like in case of any other thing, the important factor is not the advantage, but the mindset that drives it behind. Last day I wrote about having a progressive mindset. But when it comes to BTC, the driver behind it is clearly absent. Its first mover advantage is getting it to the top, but as soon as when one person with growth mindset comes with an equivalent product (which already happened), the first mover advantage may slay. ...
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