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You cite the Capitalists' Dilemma, but Christiansen's argument actually suggests that the strategy of building companies to be bought by Apple/Google/etc is a g
by calcsam 12y ago
You cite the Capitalists' Dilemma, but Christiansen's argument actually suggests that the strategy of building companies to be bought by Apple/Google/etc is a good one. Why? Because they have tons of $ on their balance sheets and don't know what to do with it.
- npalli 12y agoSure, I’m not suggesting that getting Google/Amazon investment by itself is a bad thing. The problem is if the bulk of your investment thesis revolves around filling in niches in the Google/Apple ecosystem. The linked article talks about how investing in proven markets doesn’t lead to great returns. More broadly though, the universe of markets that can be created is much larger than what Google/Amazon/Apple are interested in. Just because they have too much money (though as I mentioned the cash pales in comparison to global capital) doesn’t mean they will invest willy-nilly. So, the goal should be broader not just on what already exists and of interest to these guys.