The real insight is that the S-curve is not just a technology adoption curve — it's also a valuation curve. The multiples that investors are willing to pay expand dramatically as a technology moves from the early adopters to the early majority, and then compress just as dramatically as growth slows and the technology matures.
The great irony of technology investing is that the stocks that look the most expensive at the beginning of an S-curve are often the cheapest, and the stocks that look the cheapest at the end of an S-curve are often the most expensive.
4mo ago
Underscored — save the words that stop you in your tracks.
