Interesting. Any thinking about needing nominal distribution within and across geographies, or is it ok to have the *industry* basically nominal even if there are regional or urban/suburban/rural differences?
It's a good question and I don't totally know the answer. Intuitively, I think any time you're dealing with real world businesses they're going to be regionally concentrated - they scale on physical infra/boundaries. So I imagine you'd expect to buy your way into markets/geographies one or several at a time. But if it's a normal distribution (or theoretically approximates one) than you'd expect any sufficiently large sub-set to also be normally distributed. If it's a series of local monopolies with regional/national players (like auto dealerships) that says something important about the market structure. I just don't know what...
Interesting. Any thinking about needing nominal distribution within and across geographies, or is it ok to have the *industry* basically nominal even if there are regional or urban/suburban/rural differences?
It's a good question and I don't totally know the answer. Intuitively, I think any time you're dealing with real world businesses they're going to be regionally concentrated - they scale on physical infra/boundaries. So I imagine you'd expect to buy your way into markets/geographies one or several at a time. But if it's a normal distribution (or theoretically approximates one) than you'd expect any sufficiently large sub-set to also be normally distributed. If it's a series of local monopolies with regional/national players (like auto dealerships) that says something important about the market structure. I just don't know what...