PLATFORMS ARE (STILL) THE BEST BUSINESSES

Summary from the TLDR Founders newsletter

Businesses that perform strongly in profitability, scalability, and defensibility generate substantial profits relative to the capital they require. They grow with limited incremental effort or additional capital, and can sustain success over long periods. Platforms, businesses that enable direct interactions between customers, come closer to this Platonic ideal than any other type of business. Network effects and asset-light cost structures allow successful platforms to generate exceptional returns on invested capital.