Monday, 18 April 2016

Facebook and Softbank where long term is really long term

Facebook had their annual conference last week. They impressed with their ten year plan/outlook for communication revolving around messaging and virtual reality. Their Facebook Messenger app is the fastest growing in the US. Including Whatsapp their users are sending 60 billion messages a day versus 20 billion globally through SMS 3x the size.


The crowd went wild when they demoed a selfie taken in virtual reality (personally not looking to forward to that). But in the short term Facebook view chat bots in Messenger as the new way to communicate. No need to download any more apps if you need to do anything just open up messenger and you can chat with companies to find out information and buy things. Initial partners include Bank of America, Burger King and 1800-Flowers. 1800-Flowers might have to change their name. It was a conference to be at as everyone received a free Gear VR and Samsung Galaxy phone.

Facebook's 10 year plan is very impressive in a quarterly world. Ten years ago they only had 24 million users compared to 1.6 billion today. Their ten year plan reminded me of Softbank's long term vision. The Japanese telco has a 300 year vision though it is broken down into 30 year slots. Their goal is to provide so much value that they will be one of the top companies in the world by market cap in 2040. It's an impressive goal apparently only 0.02% of companies survive after 30 years yet alone grow (see vision below) my hat goes off to both of these companies for their long term view.



Decisive has no position in Softbank (9984) but has a position in Facebook (FB). The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.