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At least one of the reasons why Buffet et al. have been sneering at techno-fetishists is because they remember when the Fed Rate was in double digits. In such a climate, accounting matters more than financial speculation.

Here's Munger's take on EBITDA https://www.youtube.com/watch?v=l82kIjqBtqw

But in the last 20 years of cheap money (for banks), and a weak regulatory framework (for banks), allowed for Metric Shit Tonnes of capital to flow into speculative areas (re: Softbanks).

So, capitalism isn't the problem. It's poorly regulated capitalism that's the problem.

And tech companies moved faster than the regulation could.

And now, the regulators are mounting up (h/t Warren Griffith III)

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Great stuff, as usual!

It's important in this space to be specific about the actual problem. I love how you differentiate between tech and tech companies, for example. Indeed, I would argue that tech "eats the world" so voraciously that it even eats tech companies.

A lot of the frustrations or concerns folks have about the modern world seem to me to be ill-defined. A lot of complaints about capitalism, for example, seem more about consumerism--one natural result of capitalism but not a necessary one. When people express concern about Facebook, are they worried about that specific company, social media companies, big tech, or big business?

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May 26, 2023Liked by Rohit Krishnan

An alternative way to explain why all tech companies are different is that "tech" is a fake category and that each company is a true monopoly in a single field, along with a bunch of minor companies bolted on. Do any of Apple's many revenue sources overlap with Microsoft's any more?

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Wow thank you for opening my eyes to this whole other side of things!

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