Re: All of the big computer manufacturers in the 1970s faced challenges in the transition from minicomputers to microcomputers. Indeed! Predicting the future i

Re: All of the big computer manufacturers in the 1970s faced challenges in the transition from minicomputers to microcomputers. Indeed! Predicting the future is hard. Only Warren Buffett can financially "prove" he has any skill at it, and he doesn't personally even claim such ability (instead following a set of principles laid down by Benjamin Graham, but often ignored by academia). PC's eventually became a commodity business anyhow, and HP wasn't cut out for commodities. Commodity businesses usually flow overseas where labor is cheaper anyhow: it's not US's bag. Microsoft made its fortune on OS's and tricking companies into entrenched software "standards", keeping it from becoming a commodity. But HP was a hardware co., not software. HP were better off as an R&D lab and "nerd tool" maker. Stay with your strength. Warren Buffett also notices that companies that deviate from their core strength tend to suffer. Do one thing and do it well. Transitions of focus can happen successfully, but are rare. Don't bet against the patterns of history unless you want to suffer the patterns of history also. (Apple is arguably an exception, but that's another long topic.)