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In Google’s early days, founders Sergei Brin and Larry Page in humble beginnings


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...“When the tsunami of corporate America threatened innovation, the two found solace at home. ‘We couldn’t risk losing the culture we built in Brian’s dad’s man cave, but this office comes with free Cat5 and a water cooler so we just brought it here,’ Sergei said.”

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Google’s search business isn't protected by economies of scale, network effects, or any typical monopolistic barrier. Yet, it accounts for nearly 90% of searches. Their moat is their product (search algo). Can't think of another monopoly that exists on a superior product alone.

People misconstrue Google’s business as “selling digital ads“. This undervalues Google’s golden goose. All internet traffic can be categorized into 3 major highways: #1 People communicating #2 People looking for information #3 People wanting to buy something Google owns #3.

As a result, they charge advertisers a hefty toll for access. They share #3 with Amazon for product-related searches, but for everything else you could possibly spend money on, its Google.

Need: A hotel?

An accountant?

A nearby restaurant?

Software for your business?



Unlike Facebook (often compared), Google doesn't need personal data to be an effective advertising platform. All they need is your search query. Both Google and advertisers know exactly which keywords display monetary intent and can target ads accordingly.

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