A Value Investor’s Perspective On Digital Disruption

February 2019 Newsletter | “Digital disruption” has been a catch-cry for new technology companies that are challenging established and traditional business models. Understanding broadly how disruption works, what opportunities there are to take advantage of any disruption that is taking place and what makes an incumbent business model defensible in such circumstances are all
critical elements in managing an investment portfolio and any risks to a portfolio from potential disruption. In this edition we discuss the threats and opportunities that digital disruption presents for value investors.