The fabric of data differs from physical assets in that data cannot be used up, unlike physical assets. Data can be replicated and applied in multiple ways without decreasing its value.

In fact, the more data is collected, the greater its value becomes, resulting in a feedback loop of improved algorithm accuracy as more data is fed into the system.

This phenomenon is similar to the formation of black holes in the universe through extreme gravitational pull.

In the context of our economy and competition, this translates to companies being able to create a strong competitive advantage, similar to what Warren Buffett referred to as a “moat” around a business.

He stated that determining the size of the moat is the most crucial factor in evaluating the value of a business.