Robin Hood of Omaha?
Did Warren Buffett suddenly become Omaha’s Robin Hood instead of Omaha’s Oracle? not likely! When you are 90 years old, You will not make silly bets with your money. It can tarnish your reputation and your legacy. So why is the most famous investor in the world, Warren Buffett to take $ 570M stake in start-upThe And why is Salesforce invests $ 250M extra In a company you’ve never heard of? Here is my complete information about Warren Buffett, Mark Benioff and I Snowflake.
Short history lesson
- March 12, 1986 – Oracle $ ORCL (IPO price: $ 0.067, today: $ 55.73)
- March 13, 1986 – Microsoft $ MSFT (IPO price: $ 0.089, today: $ 214.25)
- June 23, 2004 – Sales force $ CRM (IPO Price: $ 3.95, Today: $ 254.70)
- June 29, 2012 – service now Now $ (IPO price: $ 23.70, today: $ 487.41)
Will the year 2020 add another name to that list?
Play it frank again
Do you think Snowflake will be the youngest? Not me Here’s why:
Snowflake is going to be one of the biggest technical IPOs in history
- Snowflake Tam is far bigger for an IPO than any previous firm Frank
- Snowflake disrupts a market dominated by Oracle, Microsoft, IBM… etc.
- Snowflake is designed for a multi-cloud world
- Snowflake is a primary acquisition target for almost every cloud vendor
- Snowflake can be as large as Oracle (if not stopped by acquisition).
- Snowflake complements SaaS applications like sales, service no … etc.
- Snowflake has a technology advantage that will be carried forward
- Snowflake has a favorable economic model that makes it a hedge against vendor lock
- Snowflake works with all major clouds: AWS, Azure, GCP and Salesforce.
- Snowflake integrates multiple data platforms Informatica, Tableau, Power BI, etc.
And this is just a beginning.
What is the future of snowflakes?
There are only three most likely options:
- Snowflake is acquired by Salesforce, Oracle, Microsoft, Google, Amazon or IBM.
- Snowflakes will become high-end like service names, documents, octa, viva… etc.
- Snowflake will outperform competitors and become acquisitive like Salesforce
In 1986, I could not invest in Oracle and Microsoft IPOs; I was very young.
In 2004, I missed the Salesforce IPO because I had no investment experience.
In 2012, I did not invest in ServiceNow because I did not know how to evaluate companies.
But in 2020, I will not miss the Snowflake IPO.
(Additional disclosures: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to buy or sell securities. Before buying or selling any shares, you should do your research and reach your conclusion or consult a financial advisor. Investment involves risk, including loss of principal.)