3 ms·

Can you point to some other examples of technology companies that lost their competitive advantage and were able to pivot successfully into an investment fund?

• pokepim 3y ago
  [dead]
• riku_iki 3y ago
  No, I can't. It is not easy research for me to find some tech company which collected 100b in cash, and has main business collapsed.
  • steve1977 3y ago
    Have you tried asking ChatGPT? (sorry, couldn’t resist…)
  • bongoman37 3y ago
    [dead]
• datavirtue 3y ago
  The Kodak pension fund is gigantic. It eclipses the husk of a company that remains. Google could close up shop, invest in a tobacco company (and maybe a handful of other dividend kings), and literally live forever as a trillion dollar fund.
  • skmurphy 3y ago
    According to https://www.plansponsor.com/kodak-outsources-management-of-overfunded-u-s-pension-plan/ https://www.plansponsor.com/kodak-outsources-management-of-o... it's $6.5 billion. But pension fund management is mandated by regulation. Google "cash on hand" is https://companiesmarketcap.com/alphabet-google/cash-on-hand/ https://companiesmarketcap.com/alphabet-google/cash-on-hand/ $111 billion. The question I am having trouble parsing is who makes the decision to become a pension fund at Google given their historical focus has been on technology. It's a significant pivot. At a small closely held firm I can see the owners deciding to use the corporation as a vehicle for managing retirement funds (or inter-generational wealth transfer) but Google has a much more diverse base of owners with divergent interests.
    • riku_iki 3y ago
      > who makes the decision to become a pension fund at Google given their historical focus has been on technology I don't think anyone said Google has to become pension fund. They can become some generic investment fund: invest into stocks, other funds, bonds etc, or focus on tech investments.
      • skmurphy 3y ago
        Sorry "pension fund" was a typo on my part, I meant investment fund.
        • elSidCampeador 3y ago
          Berkshire Hathaway. Not a "true" investment fund but not far off either.
          • skmurphy 3y ago
            I would characterize them as a conglomerate operating in multiple lines of business that rely on a financial perspective and a sound investment thesis for much of their decision making. Unlike a mutual fund or most other investment firms they make very few investments or divestments over time. The thesis I am fighting against is that all it takes to become a successful investor is a big pile of cash. There many many counterexamples. Buffet and Munger at Berkshire Hathaway prove a different point: a sound investment thesis pursued diligently to enable compounding can yield very attractive returns.
            • dotcoma 3y ago
              Google could invest only in woke companies and make a small fortune — by starting off with a large one.
        • riku_iki 3y ago
          so, what's your concerns then? They already operate like investment fund: its not like they keep pile of 100+B cash, they invest it in various securities, and directly into startups through Google Ventures. If main business dies, investment part will continue operating.
• deleted 3y ago
  [deleted]
• ajhurliman 3y ago
  Yahoo (they’re just a portfolio now right?)
  • skmurphy 3y ago
    Yahoo is a portfolio of brands. Compare https://www.yahooinc.com/our-brands https://www.yahooinc.com/our-brands with firms that manage investments: https://www.bridgewater.com/ https://www.bridgewater.com/ https://www.schwab.com/ https://www.schwab.com/ https://www.blackstone.com/ https://www.blackstone.com/ https://www.sequoiacap.com/ https://www.sequoiacap.com/ Yahoo is managing web properties and is essentially a media company (is paid by advertisers or other customers to deliver a well-characterized audience).