Nick Griffin, Head of Investments at Munro Partners, says the network effects at Google, Facebook, or Amazon are now so strong that only regulation could break them. That won’t stop others from creating their own network effects to create global scale. One such opportunity lies in video gaming, where even the largest company only commands a market capitalisation of US$37B.

 “If I had to point to the next thing that comes along that could potentially have the same network effect, it’s probably video game stocks.”

Key points:

  • There probably won’t be another Facebook, Google, or Amazon. The network effects are now too strong to break.
  • The most likely candidate for this very strong network effect would be the video gaming industry.
  • Activision Blizzard is a $37B market-cap company, which controls most of the major video game franchises in the world.
  • Franchises for ‘Overwatch’ sports teams are selling for millions of dollars.
  • These games are essentially a sport like the NBA.
  • This theme probably has about another three years left to run.

Visit the Munro Partners website for more information.


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