Episode 28: The Gorilla Game | Value of Growth Lecture Series

I introduce The Gorilla Game in this video, a book I co-authored with Geoff Moore and Tom Kippola. The book’s first edition was published in 1998 and the revised edition was published in 1999. The book sold over 100,000 copies. If you are interested in purchasing the book, please click below: https://www.amazon.com/Gorilla-Game-P... In this video, I tell the book’s origin story and then explain the investment insights I gleaned from writing the book and talking about it for the past 25 years. I believe these investment insights are still relevant a quarter of a century later. The key lesson I learned from Gorilla Game investing is to distinguish between an actual Gorilla Game and what Geoff labeled as a Royalty Game. Gorillas are software companies or true platform companies in large markets. Because Gorilla business models exhibit natural scale, these markets usually evolve into a winner take most / winner take all industry structure, with the Gorilla emerging as the dominant company. The combination of scale and a large market produces excess returns for investors. Royalty Games may produce a dominant vendor, a King, but that company's reign is more fragile than that of a Gorilla, which make investing in Royalty Games more challenging. #pauljohnson, #valueofgrowth, #valueinvesting, #growthinvesting, #columbiabusinessschool, #fordhamuniversity, #gabellischoolofbusiness, #valuation, #competition, #excessreturns, #ROIC