I’ve been thinking about this question for a while. There are a few that come to mind. $RMS sells to people who can afford a $50k bag, and I doubt many disappear if that same bag becomes $75k. $ASML is another one. If you need their machines to manufacture chips, paying 50% more is probably a lot better than not getting the machine.
But my pick is $VRSN because it runs the registry for .com domains, and a .com costs around $10 wholesale per year. Think about that for a second. A business could be worth $100k, $10m, $100m or $10b and its entire website and email system depend on a domain that costs about as much as lunch.
If that domain suddenly cost $15 instead of $10, what happens? Probably nothing. No business is changing its website, email addresses and everything attached to its domain to save $5 a year.
That’s what makes $VRSN so interesting. They sell something incredibly cheap that their customers absolutely need. The value of the product to the customer is completely disconnected from what the customer actually pays.
Ironically, this is all hypothetical because $VRSN business is so unusual that it isn’t free to raise prices however it wants. Its agreements limit how quickly .com prices can increase, so increases happen in relatively small increments.
I think there’s a great investing lesson in that. Sometimes the greatest pricing power isn’t selling something expensive. It’s selling something so important and so cheap that the customer barely cares what it costs.
🌹
I think @elonmusk said it best:
“Robots don’t all need to be humanoid.
But a general-purpose robot intended to replace human labor should fit the world humans already built.
Roger, roger.”
Personally, I expect $TSLA Optimus form factor to converge to the right image.
I’m proud to announce that construction for the 9th & Illinois Ave. Triangle Park project in Ward 4 will begin on *Monday, Aug. 17*! Funding for this idea I had was solidified 4 long years ago during my ANC commish days and it’s finally gonna get done by Dec. 2026!
FAIRFAX County School Board Approves Superintendent Contract Renewal Through 2030
The Fairfax County School Board held a meeting where members voted unanimously to extend the contrac... (1/3)
A flying life ring?
In a rescue drill in Hangzhou, China, this AI-powered device autonomously navigates to people in the water, then flies back on its own.
Technology that could help save lives. 👏