1/ Thread: Big Tech Criticism
In his newsletter, @LibertyRPF lamented today about the current state of big tech.
Not that his criticisms are not valid, I wanted to share how I think about big tech’s foibles.
In his newsletter, @LibertyRPF lamented today about the current state of big tech.
Not that his criticisms are not valid, I wanted to share how I think about big tech’s foibles.
2/ When I think about big tech, I primarily imagine them as these large, powerful countries.
What are some of the powerful countries today? USA, China, India etc. come first in mind.
What are some of the powerful countries today? USA, China, India etc. come first in mind.
3/ These countries are extremely powerful not only because they have WMD, but also the weight of history and demography play strong roles.
All these powerful countries have perhaps one thing in common. They are riddled with all sorts of failures.
All these powerful countries have perhaps one thing in common. They are riddled with all sorts of failures.
4/ From botched foreign policies and deep political divisiveness to lack of freedom of expression, the list of failures in these countries is a lengthy one although the list slightly differs from country to country.
5/ Despite these real failures, some (many?) of these countries will still remain powerful for a long period of time.
It’s the proportionality that matters. If the positives significantly drown the negatives, most failures just may not matter for a long period of time.
It’s the proportionality that matters. If the positives significantly drown the negatives, most failures just may not matter for a long period of time.
6/ Big tech is perhaps like that. I cannot overstate the complexities any business will face when they generate the kind of revenue the big tech is generating.
7/ Amazon’s sales last year were close to Bangladesh’s GDP.
A company with ~1 mn employees generated the same level of “GDP” as did a country with ~180 mn people.
A company with ~1 mn employees generated the same level of “GDP” as did a country with ~180 mn people.
8/ Big tech faces real problems/challenges and has to deal with competing priorities that lead to non-obvious solutions.
While perhaps not all of them will remain successful, the FCF they generate each year is an incredible cushion to figure out the next S-curve.
While perhaps not all of them will remain successful, the FCF they generate each year is an incredible cushion to figure out the next S-curve.
9/ And at least some of them are probably much better at their job than any of the Presidents of those powerful countries.
If Microsoft can transform from being Micro$oft to what it is now, some of the current big techs can probably as well.
If Microsoft can transform from being Micro$oft to what it is now, some of the current big techs can probably as well.
10/ Of course, that’s not guaranteed, and that’s certainly a risk.
Yes, being a shareholder of these companies certainly can warp my perception, as eloquently written by @LibertyRPF.
Yes, being a shareholder of these companies certainly can warp my perception, as eloquently written by @LibertyRPF.
End/ Link to the original piece by @LibertyRPF who consistently poses these thought provoking questions.
libertyrpf.substack.com/p/55-my-nvidia…
libertyrpf.substack.com/p/55-my-nvidia…
• • •
Missing some Tweet in this thread? You can try to
force a refresh
