The tech world is a highly competitive place. Many companies make money by being late to market, they are late to meet customer expectations, they are late to meet competitive demands, and they are late to meet regulatory demands. These are all forms of self-awareness.
While it may seem counterintuitive, a company is only late to market when they are either late to meet a competitor’s demands or they are late to meet regulatory demands.
What’s interesting about this statement is that while it may seem counter-intuitive, it’s not at all like this is a bad thing. It’s simply a fact that companies that are late to meet competition or regulators can be more profitable than those that are late to meet their customers’ expectations. In other words, it’s a form of self-awareness. But it’s also not a bad thing because it helps companies become more profitable.
This one is actually a little more difficult. We as investors want to see a company go bankrupt, but how do we know if they are going to go bust? The answer is they don’t, and they don’t even know they are going to bust. Companies are built on top of one another, and a company that is built on top of a company, they will always be there.
So if you are a shareholder, all you have to do is look at the companies that are not going to be the next company to go out of business to know they are not going to go bust. Then you just keep on buying the stock until the company goes bust. If you are a stock trader, you could say, “Well, I just bought the stock because my company is going to go bust, so I just might as well go and buy the company right now”.
Of course, companies that go bust are usually companies that are built on the wrong idea. So if you are a company that is built on the wrong idea, then you are unlikely to be very successful. If you buy into a company that is built on the wrong idea, then you are more likely to be successful.
When you buy into a company that is built on the wrong idea, you are likely to be successful. But when you buy into a company that is built on the right idea, you are more likely to fail. But when you buy into a company that is built on the wrong idea, you are also more likely to fail. But when you buy into a company that is built on the right idea, you are more likely to be successful.
For me, this sounds like typical tech stocks, but what’s interesting is that it’s not just the tech stocks that are built on the wrong idea. I’ve talked to many investors who are convinced they own the best stocks, but they are so convinced of their stocks’ success that they refuse to consider the possibility that they might be wrong.
So is someone in a position of wealth, or even power, going to take their time and think carefully about the stocks they own? Or will they buy whatever stock is best for them? It sounds like a pretty big leap of logic to me.
It sounds like the most common investor gets a pretty good sense of what they are doing. These “best stocks” investors have seen their companies grow from 100 to 1,000 times their revenues, and they are not particularly worried about the stock market. It makes sense that they’ll buy the stock that does as well in the current market, but that doesn’t necessarily guarantee they’ll buy a stock that isn’t doing well.