I tried to define my criteria for inclusion on the about page, but this trend also informed my thinking.
Private alternatives are naturally riskier when diminishing capital returns are guaranteed to manifest more quickly due to the collaborative “free” effect.
Indeed, unless you invest in an industry monopoly which is prepared to sue anyone who tries to compete in their field — often in a way that suspends or regresses technology — it’s unclear whether the company in question will have enough time in the limelight to be able to return your capital, let alone interest, before it is obliterated by a market competitor or the collective collaborative base.
What’s more, when so much is available for free in the market, who can actually be bothered to spend on stuff that, you know, costs something?
Why a “free” market changes everything | FT Alphaville
Note that I don’t think solar or battery manufacturing is a defensible model, but I do think one of the few areas for surplus (profit) is in developing new high-end technology. Beyond that, your business model should assume (as Tesla does, for example) that they’ll keep getting cheaper, and build a brand-defensible service on top of it.