Inker: Google cannot outgrow GDP forever without a new business model
Ben Inker · Ben Inker – Value Investing at GMO (First Meeting, EP.17) · Mar 30, 2020 · at 31:50
Ben Inker, Head of Asset Allocation at GMO, discusses the structural limits of tech growth stocks when evaluating fundamental valuation spreads.
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“Google has been able to grow extraordinarily fast by taking share from every other kind of advertising that has happened. The underlying fundamental truth that advertising grows with GDP has not changed, and as their share of advertising gets bigger and bigger their ability to outgrow Gets compromised. They are not going to be able to outgrow forever unless they fundamentally change the way they make money.”
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