Private Companies Have The Advantage

Private companies will have the advantage over the next 30+ years.

With world markets changing because of globalization in unforeseen ways, the rise of mass migration due to climate change causing unrest and confusion, and new technologies upsetting our current economic systems, private companies are looking a lot more agile and resilient to me.

Private companies won’t be pulled down in value when market’s tank, they may not profit from bull markets in the same way but at least they are working with values that are not decoupled from reality. It is a good strategy for your company to be based as close to reality as possible. Private companies aren’t chained to quarterly reports and the generally uncreative and shortsighted views of their shareholders/board members. Most investors are not going to have the mind to be making creative and forward-thinking decisions about the future of the world, nor do their incentives align with this goal.

They are investors not creators & innovators. There is no way to quantify the non-linear aspects of the idea generation process that sits so close to the heart of technology.

“No new idea in the history of the world has been proven in advance analytically”

-Charles Sanders Peirce

 

Most importantly, private companies aren’t constrained into making short-term decisions in a long-term game

For a company to have the complete freedom to think non-linearly as long as they are cash-flow positive is a superpower in my opinion. They get to make decisions that position them best in the environments and economies of the constantly changing world, without having to justify those decisions to anyone but themselves.


Previous
Previous

Articles 1.

Next
Next

Books