Capital flows to new areas of value
Investors seek growth. When fresh opportunities emerge, money shifts toward those evolving spaces and away from declining ones.
Investors seek growth. When fresh opportunities emerge, money shifts toward those evolving spaces and away from declining ones.
Joseph Schumpeter noted that new innovations often sweep away the old. Businesses must adapt or be replaced as technology and markets progress.
Making something more efficient can actually lead to greater overall consumption. This is known as Jevons' Paradox and means savings may be temporary as demand rises.
As components industrialise, they consume more energy and concentrate complexity elsewhere. The total cost may rise even as efficiency improves.
The bigger the unknowns, the greater the possible upside. If everyone is sure about an investment, the likely rewards are already priced in.
Industrialised components do more than cut costs — they provide the foundation for entirely new products and markets. As once novel capabilities become utilities, they are combined in fresh ways to generate economic value. Electricity enabled radio, telephony and computing; cloud infrastructure enables countless digital services.