A lesser-known piece of tech history from the late 80s and early 90s and what that can learn us about the implications for today's long-term tech investing.
(h/t WSJ)
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(h/t WSJ)
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In the late 80s, the tech sector had lost its mojo. Since the 1960s, the Cold War had spurred big defense investments in tech, but the Cold War was over now.
2 important things revived tech in the early 1990s.
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2 important things revived tech in the early 1990s.
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The first initiative was legislative: the High-Performance Computing Act of 1991, better known as the Gore Bill.
The goal? To build the "Information superhighway" aka the internet. ARPANET had already started the evolution in the sixties & implemented the TCP/IP protocol.
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The goal? To build the "Information superhighway" aka the internet. ARPANET had already started the evolution in the sixties & implemented the TCP/IP protocol.
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The Gore Bill pumped money into the system to reach the goal and the first web browser was developed, Mosaic, developed at National Center for Supercomputing Applications by Marc Andreesen @pmarca, who later also made the first commercial browser, Netscape.
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The Gore Bill also incentivized the roll-out of an interconnected high-speed fiber optic network.
The money and the technological advances spurred a gold rush, eventually leading to the dotcom bust.
What are the implications for and similarities with today?
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The money and the technological advances spurred a gold rush, eventually leading to the dotcom bust.
What are the implications for and similarities with today?
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The Gore Bill injected about $1.3 billion in tech (inflation-adjusted).
Without the infrastructure and the research money, the internet would not have been a reality so fast. There was a bust but the subsequent boom lasts until now.
Today, it looks even better.😍
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Without the infrastructure and the research money, the internet would not have been a reality so fast. There was a bust but the subsequent boom lasts until now.
Today, it looks even better.😍
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The Chips and Science Act of this year injects a baffling $52.7 billion in the semiconductor sector and it could be the beginning of another boom.
What will the boom be in exactly? Next to money, you also need technology on the brink of a breakthrough.
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What will the boom be in exactly? Next to money, you also need technology on the brink of a breakthrough.
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I think the most obvious candidate is AI. Just look at #gptchat for example. And that's just the very beginning.
But there are other candidates: 5G, AR&VR, autonomous driving, edge computing... Or maybe all of these or something entirely new we don't see coming.
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But there are other candidates: 5G, AR&VR, autonomous driving, edge computing... Or maybe all of these or something entirely new we don't see coming.
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The most important takeaway for investors is that, while sentiment for tech investing is low now, for long-term tech investors, the future still looks very bright. 😍
To end, a few questions for you, dear reader:⏬
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To end, a few questions for you, dear reader:⏬
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What do you think will be the next big technology breakthrough platform?
What companies will benefit the most?
What companies have the potential to become the new Big Tech?
If you liked this, for more, feel free to follow me @fromvalue and feel free to retweet.
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What companies will benefit the most?
What companies have the potential to become the new Big Tech?
If you liked this, for more, feel free to follow me @fromvalue and feel free to retweet.
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