Before the internet, real estate investing made sense to me. Obviously it remains an incredible asset class, but other than our family home on Coronado and a small home in Phoenix, I invest in internet software companies.
In 2018, if you can figure out how to turn your internet business into a subscription business (and keep your customers happy), you will be rewarded with prime real estate asset prices AND extremely high multiples and valuations on all kind of new metrics built just for you and your ability to tell stories.
I own most of the great internet/media subscription businesses at the moment including Match.com (Tinder), Netflix, Amazon and Apple (they are all on my 8 to 80 list). I don’t own Spotify but it is an 8 to 80 brand as well and I plan to own it one day soon.
A few months ago I also recommended Disney to my Peloton Subscribers (just $80/year). I also added it to my 8 to 80 list even tough they have not yet launched their ‘DisneyFlix’. Yes they have a piece of HULU and I like HULU and yes they launched ESPN streaming, but the market refuses to pay Disney an internet business valuation until they launch their ‘DisneyFlix’ with a blockbuster early release movie. I front ran this happening and continue to believe Disney will nail the subscription business.
Yesterday, I watched this excellent interview between Scott Galloway and Derek Thompson and you should take the time to watch it once or twice this weekend if you care about these companies.
Enjoy and have a great weekend.
Also published on Medium.