• Patient Platforms build foundational tech in genomics, AI, and advanced computing.
• Investment focuses on long-term growth from creating entire industry ecosystems.
• These companies may offer durable value through high switching costs and moats.
• AI accelerates platform development, presenting unique opportunities and investment risks.

The Unseen Architects: Why Investing in Tech's Plumbers Could Be an Idea

Let’s be honest, the market has the attention span of a caffeinated gnat. It flits from one shiny object to the next, chasing meme stocks, quarterly earnings beats, and whatever a charismatic billionaire tweets about at 3 AM. It’s exhausting. But while everyone is gawping at the penthouse suites of the tech world, I find myself more interested in the plumbing. The real, foundational, and frankly, rather unglamorous infrastructure that holds the entire glittering skyscraper up.

Forget the Penthouse, Consider the Plumbing

I’m talking about platform companies. This isn’t a new concept, but it’s one that often gets lost in the noise. A platform isn’t just a product, it’s an entire ecosystem. Think of Microsoft Windows in the nineties. It wasn’t just an operating system, it was the very ground upon which a thousand other software companies built their fortunes. Or look at Amazon’s cloud services today, the digital landlord for a huge chunk of the internet.

These companies build the roads, lay the pipes, and supply the power. Once an industry becomes dependent on their infrastructure, it’s incredibly difficult to switch. Take Intuitive Surgical. They don’t just sell a fancy robot for operations. They sell a whole system, complete with training, instruments, and support. A hospital that invests in their da Vinci system isn’t just buying a machine, it’s buying into a long term relationship. The cost and hassle of leaving become almost unthinkable. That, to me, is a powerful position to be in.

The Monopolists Hiding in Plain Sight

This theme of indispensable infrastructure runs deep. You have companies like Illumina, which has become the default provider of DNA sequencing technology. Nearly every major breakthrough in genetic research, from medicine to agriculture, likely relies on their machines. They are, in essence, building the library of life itself.

Then you have my personal favourite, the Dutch firm ASML. This company has a complete monopoly on the ridiculously complex machines needed to make the world’s most advanced computer chips. Each machine costs a fortune, contains more parts than a space shuttle, and takes an age to build. Without ASML, there would be no cutting edge iPhones, no superpowered NVIDIA graphics cards, nothing. They are the ultimate gatekeepers. It’s a collection of companies that, to my mind, fit this mould, a sort of who's who of the quiet giants. You can see the full list in the Patient Platforms basket.

The Agonising Virtue of Patience

Now, here’s the catch. Investing in the plumbers of the world requires a virtue that is in desperately short supply today, patience. These are not get rich quick schemes. Building foundational technology takes years, sometimes decades, to pay off. You have to endure regulatory hurdles, market scepticism, and the gut wrenching volatility that comes with any long term vision.

There are, of course, significant risks. A new technology could appear and render a dominant platform obsolete overnight. Competition is always lurking, and these companies often trade at valuations that might make your eyes water, especially when profits seem so far off in the future. This is not a strategy for the faint of heart. It’s a bet that the deep, structural advantages these companies are building will eventually create immense value. It’s a belief that in a world obsessed with the next big thing, the companies building the stage for it might just be the most interesting players of all.

Deep Dive

Market & Opportunity

• The investment theme focuses on 17 companies building foundational technology platforms.
• Key technology sectors include genomics, AI, robotics, and advanced computing.
• The strategy centers on platform technologies that create entire ecosystems for other innovations, similar to Microsoft Windows or Amazon's cloud infrastructure.

Key Companies

• Intuitive Surgical, Inc. (ISRG): Core technology is the da Vinci robotic surgery system, a comprehensive platform including hardware, instruments, and training. This creates high switching costs for hospitals and a recurring revenue model.
• Illumina Inc. (ILMN): Core technology is DNA sequencing, providing the essential infrastructure for most global genetic research, including cancer research and agricultural improvements.
• ASML Holding NV (ASML): Holds a monopoly on extreme ultraviolet lithography machines needed to produce advanced semiconductors. Each machine costs around $150 million, and the company has an order backlog extending years into the future.

Primary Risk Factors

• Dominant platforms can become obsolete due to significant technology shifts.
• Regulatory changes, especially in healthcare and genomics, can delay or disrupt development.
• Competition from well-funded startups or large tech companies can erode market share.
• Long investment horizons tie up capital and can test investor patience during market volatility.
• Companies often trade at high valuations relative to current earnings.

Growth Catalysts

• Artificial intelligence is accelerating development timelines for platform technologies.
• The convergence of AI, genomics, and robotics creates a virtuous cycle of improvement and innovation.
• Companies that establish dominant platforms with high switching costs and network effects can achieve long-term, durable growth.
• A "patience premium" may reward long-term investors as these technologies become essential infrastructure.