"It's pretty easy to get well-to-do slowly. But it's not easy to get rich quick."
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)
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?
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?
Wow thank you for opening my eyes to this whole other side of things!