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The Power of Momentum in Private Markets

Newton’s First Law: Inertia

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Art, Tech & Capital
Apr 11, 2025
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"An investment in motion tends to stay in motion."

In physics, Newton’s First Law of Motion states that an object in motion will stay in motion unless acted upon by an external force. This principle of inertia applies uncannily well to private market investing—successful companies build unstoppable momentum, while struggling ones languish without intervention.

Understanding this dynamic can help investors identify durable opportunities and avoid value traps. Let’s break it down.

Newton's first law - Examples

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