29 Aug '16, 9pm

The moats that fintech companies must cross

The moats that fintech companies must cross

It started with a question which seemed simple enough when I first started investing in technology despite my training in years as a value investor: How do you invest in a fintech (financial technology) start-up with the potential to revolutionise finance, but which has not gained wide traction or turned a profit? Cue the Oracle of Omaha with a question in response. To paraphrase legendary American investor Warren Buffett, investors of all stripes must first be able to answer this question: Is there any asset which deserves to be paid more for than the asset is worth? In the rapidly shifting sands of the disruption-prone fintech world, this fundamental question remains as relevant as ever. How does one pick a fintech stock that might be priced below its worth? Let's consider the concept of moats. In mediaeval days when kings lived in castles, the moats surrounding these ca...

Full article: http://www.straitstimes.com/opinion/the-moats-that-fintec...

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