This book is excellent.
Galloway deep dives into how these companies know how to exploit our primal instincts. Extremely interesting take. It’s hard to argue he’s wrong. I wish I could take his class at NYU, but like he mentioned, they charge $62K per class, $500 per minute, and it’s criminal.
Amazon will take over the world; many jobs in retail will disappear. Bezos is a genius, and secretly and in plain sight, evil. I have Amazon stock, so I’m ok with it. Though it’s not my fault, can other companies compete? Very difficult since Amazon has so much capital to do whatever the hell they want. I’d be surprised if they didn’t place their 2nd HQ in Washington DC, they can become much more politically involved.
Apple is the luxury branding prime example. Amazing they have only 16% of the market, but over 90% of the cellphone profits. Wow. Great quote, “The world needs more homes with better engaged parents, not a better fucking phone.” Steve Jobs is idolized too much and was pretty much a terrible person. This may be more apparent in Walter Isaacson’s Steve Jobs book.
The Facebook section could really freak some people out. Haha. I knew they personalized ads based on what you are looking at and typing, but not that it can hear background noise. They are able to personalize what people see based on interest, thus they get info on their silo’d views. This is a problem as evident by perceived fake news on Facebook. Wrong info can radicalize idiots and push their beliefs into what they think are facts. Aka. Trump being elected. Pretty much sounds like Facebook will be the contributor to the end of the world by feeding what people are interested to see based on their beliefs. They only take a platform stance which is irresponsible. At some breaking point, government would have to step in.
The Google chapter is not as clear, it seems to be half a story about the search engine being God and his story in the New York Times board...and failing to work with them. Google is confusing as it’s only a search engine, it’s unclear how their stock price continues to grow, but they do have a stronghold on advertising. They are intriguing.
I find it interesting it’s better to break the law and lie rather than not, it’s the smarter business choice in their industries. “Is the government going to turn against Wall Street and millions of consumers?” Likely not. The Four will continue to push boundaries, but also control their industry since they are the only one of their kinds. Eventually they will be beaten.
His next chapters are about the next potential companies that could derail the Four. His common standards for company success is brilliant in regards to these similar companies, though most of them relate to all businesses. Cheap capital, product differentiation, talent, etc. The relatively new outlier is big data and A.I.
I also like the section on what it takes to be part of the Four and to be exceptional in a world of average individuals. A sort of self help portion. He owns six businesses, so he has empirical evidence of talent. First, is to work hard, don’t be a jerk, and help others. That is the basic level, but still billions can do this. Next is emotional intelligence or maturity, this determines how you are able to handle stress and work with others on tough projects. Women are more emotionally mature and at an earlier age. I agree with him that women are the future. I’ve found that having a woman boss is better since I don’t have to weave through an ego. It’s just about getting shit done in an open format.
Another skill is always challenging the existing process, being curious. Growing companies that handle change need this otherwise complacency will kill it from the inside.
A Bezos quote that resonates with my company, “What kills mature companies is an unhealthy adherence to process.”
Another is ownership. Extreme ownership. Similar to the book by the navy seals. Own up to everything. Ego, failures, team, change, etc. This can also show that a person has grit, the ability to see something through until the end no matter how hard it is.
This also assumes that you need to go to college. That is important. You make more in a lifetime just because of it. But a major portion is that a person grows the most there. I thank college for my personal growth, not just education. I was extremely immature and culture shocked, my grades were mediocre, but in the end, it helped me mature and realize the real world is out there. Education is assumed and many smart people exist, but these traits are what separate you from the pack. College helps with that.
One major problem is college is getting way too expensive. I firmly believe that rising tuition will be a major contributor to rising income inequality.
Other tid bits:
- Move to a city. They are hubs of innovation and investment.
- Invest in yourself and your strengths. Improve your weaknesses just enough so they no longer hold you back.
- How to manage young people: clear objectives, metrics, invest in them, and empathy. Personally I’ve noticed they don’t work well with ambiguity; they become unhappy and don’t hide it. They won’t work hard just because.
- Be loyal to people. People help one another if you help them. If your boss is not helping you, you either have a bad boss, or you are a bad employee.
- Don’t follow your passion, that’s bullshit. Follow your talent.
- People who complain about others and how they got screwed, are well, losers.
- Exercise will help enable grit, and will help you handle stress.
I appreciate he recognizes that these four companies are contributing to income inequality and are dangerous to our economic society. They employ 418K employees together, but are worth 2.3 trillion. The same as the GDP of France. But he is not a political analyst, so no further is mentioned.
Again, this book is excellent. Confirms my stock holding positions. Only reason I may not be buying more is the impending impeachment, which may dip the market. We’ll see.