If you have ever wondered what makes Rightmove such a draw for investors – then it is because it fulfils an essential requirement: it has a distribution network.
The existence of a distribution network is what veteran fund manager Anthony Cross specifically looks for – and he specifically cites Rightmove.
In the Telegraph at the weekend, Cross and his co-manager Matt Tong talk about how they find companies to invest in.
Their formula has three top rules: the company must be profitable, be headquartered in the UK, and the directors must have their own money in the business.
They then look for companies with their own intellectual property and secondly they look for distribution networks – businesses that are vital in the chain of operation.
“Everyone wants their house on property site Rightmove when they are selling, for example, so estate agents can’t really operate without it.”
Their final criteria is to look for recurring income – companies that make money come rain or shine.
The whole piece runs under the headline: ‘Everyone who sells a house wants a Rightmove listing’.
Comments (5)
RM doesn’t have any intellectual property of it’s own, it has ours for as long as we are prepared to provide it which I ceased to do a year ago.
Maybe a fourth rule for them: Don’t invest in companies that could literally go out of business overnight if agents were to collectively pull all their listings.
I’m assuming their data was from the last decade……. you would have thought they would use more up-to-date data before making such claims = no confidence in their abilities.
“Everyone wants their house on property site Rightmove when they are selling, for example, so estate agents can’t really operate without it.” Their final criteria is to look for recurring income – companies that make money come rain or shine. The whole piece runs under the headline: ‘Everyone who sells a house wants a Rightmove listing’.
However as ALL estate agents know, Rightmove doesn’t sell houses and estate agents don’t need Rightmove to sell houses. Rightmove merely create the impression that they are necessary in the “distribution chain”
I’m sorry by you are wrong on this. Property no longer has to be on Rightmove to sell. We now sell 50% of our properties via OnTheMarket by making sure they are seen there 48 hours before they go on Rightmove. The times, they are a changing. That is far more than it used to be. We are just hoping the cycle continues