2-1b3a 'Circle of competence' & 'Niches' - Build a moat. Thrive in where you can.

It’s not really about product per se. It’s about moat. It’s about relation.

Edison General Electric, Thomas Edison’s company, encountered financial trouble and was forced into a merger by J.P. Morgan, the man, in 1892. An early investor in electricity who held through to the productivity boom in the 1920s would have experienced thousands of bankruptcies, multiple panics, a major depression, and the onset of THE World War. During the mid-1930s, electricity was proven, utilizations was over 75%, and the future was rather clear. Yet General Electric traded at 19th century pricing.

Next:

• 2-1b3b ‘Arbitrage’ - Arbitrage both space and time (both offline and online)

Related:

• 2-1c2 ‘Specialization’ - Minimizing opportunity costs maximize comparative advantages and leads to prosperity

• 7-1a2a1 絶対に勝てるところから勝っていく

  • 7-1a2a3 Win at the corner then come back (傾く・バロック)

• RUL3 - Create something, or become someone, that is hard to duplicate (‘Barriers to entry’)

  • 7-1d Create something simpler-faster-cheaper for things we’ve been doing for thousands of years (Chipotle example)

• RUL3 - Run upstairs. Choose the difficult terrain like guerillas.

• 5-1b1b2b Don’t try to be the best. Be the only.

• 7-1d1c You can be at the edge of the newest technology

  • But this keeps changing—so even here, it has to be hard to duplicate

• 7-1a5a Finding some distribution arbitrage in your time and place is also a great source for growth

• 7-1d1 Apply the newest technology to the oldest problems. The best source of arbitrage is between the newest tech papers and the oldest books.

• Inverted—narrow it down so you can have a chance to build your own moat

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