Way back in 1975, Harvard Business Review wrote a piece on the importance of market share. The higher the market share a company has, the more likely it is they’ll be able to show a superior return on investment. Intuitively this makes sense based on things like economies of scale. Says the piece, “once a business achieves a leadership position—possibly by developing a new field—it is much easier for it to retain its lead than for others to catch up.” The article goes on to say that companies selling into fragmented populations who make infrequent purchases will stand to do best.
Look no further than one of our biggest holdings, Illumina, to see this in action. Another example is a fintech stock we’re going to look at today called DocuSign (DOCU).
About DocuSign Stock
DocuSign first came across our radar in a recent piece we published on
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