Highly successful venture capitalist and investor, Mark Cuban, has developed a formula for consistently delivering a 16% annual return when investing in listed stocks. That is certainly better than I have ever achieved. Cuban is an astute operator and a very wealthy man. In an interview posted recently on YouTube, Mark Cuban identified three things he […]

Highly successful venture capitalist and investor, Mark Cuban, has developed a formula for consistently delivering a 16% annual return when investing in listed stocks. That is certainly better than I have ever achieved. Cuban is an astute operator and a very wealthy man. In an interview posted recently on YouTube, Mark Cuban identified three things he looks for in a business before investing venture capital. They are:  A strategy that targets the smallest possible market A tangible strategic competitive advantage A strategy that puts the customer front and centre  While recognising the importance of all three of these points, it is the first of them I will focus here. Cuban maintains, as do many others, that while the market you target needs to be big enough to generate the required revenue, once that constraint is met – the target market being should be as small as possible. This is because, the…