One of Warren Buffett’s distinctive traits is how much he values the long term. This is common to all value investors, whose entire thesis relies on the assumption that their views will prevail in the long term, beyond the market’s current volatility. As a result, what they look for are large, profitable businesses with long track records. Berkshire Hathaway’s favorite targets are companies that, over an extended period, can employ large amounts of incremental capital at a very high rate of return.

The problem is how hard it has become to make long-term provisions. As the economy becomes more digital, we’re finally waking up to the idea of companies not lasting forever. It’s not only because the digital transition triggers a radical reshuffling of traditional value chains. Digital business models also generate increasing returns that intensify the volatility of the market and make organizations more fragile than ever. As a result, tech companies have an unfortunate tendency to…