DOCU - 5 Essential Network Effects To Invest In The Digital Economy

• Warren Buffett suggests that economic moats are more durable than competitive advantages.
• Network effects, arguably the most powerful kind of economic moat, occur when a product becomes more valuable as more users join.
• As the world shifts to digital, identifying companies with the right kind of network effects has become more relevant now than ever before.
• In the age of software, market share growth can compound for those with the right types of dynamics at play in their business model.
• Let's review five types of network effects with examples of companies that could easily justify a spot in your portfolio.

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