Apple Car, Tesla, And Barriers To Entry

Apple Car and Barriers to Entry by Brad Cornell  The rumor that Apple is considering entering the car business is one more example of a central issue this blog has addressed repeatedly regarding the valuation of Tesla (and other technology companies as well.)  There is a tendency to think that if a technology is fundamentally disruptive the companies that develop and exploit that technology will be huge creators of value.  Not necessarily so. One warning in this regard comes from Warren Buffett.  Consider one of the great disruptive technologies of the 20th century – the airplane.  Mr. Buffett notes that…