Zoopla: No.2 gets dumped on

All things being equal, we’d rather own the outright market leader than the next best competitor. But a strong second can still be a good business, as Avis cleverly began claiming 50 years ago with the tagline ‘We’re #2, so we try harder’. We own a few second place-getters in the Forager International Shares Fund.But an upstart in the UK has come up with an ingenious new strategy that reminds us of the vulnerability of being number two. Although this strategy won’t be replicable in most industries, it’s an important case study to put in the analytical tool box.Impenetrable portalsToday,...

All things being equal, we’d rather own the outright market leader than the next best competitor. But a strong second can still be a good business, as Avis cleverly began claiming 50 years ago with the tagline ‘We’re #2, so we try harder’. We own a few second place-getters in the Forager International Shares Fund.

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