Biggest Market Cap
Technology remains fascinating frontier but scattered with landmines of bankruptcies for capitalists.
I wrote in 2012 (goo.gl/4onjiH) that a consumer Robotics company in future would be the largest market cap. Any such company for now remains elusive. Since then, on 13th of December 2013 Google snapped up Boston Dynamics, the creator of Big Dog.
ASIMO from Honda remains promising
IRobot has done reasonably on the bourses, however it is an easily imitable innovation
The old and decrepit part of human civilization remains the largest leaders. That says something about mind of humans too on an evolutionary ladder. XOM, Shell, CNPC, BP, Saudi Aramco remain the biggest companies in the world in terms of revenues. Old has not yet given way to the new.
A legion of Nobel Laureates or otherwise have not and cannot understand a single and simplest particle of matter. The whole fabric of reality made up of same stuff remains equally elusive to understanding. There are a few things that we can understand, such as strength of alloy or bridge for aerodynamics for a plane or carrying heavy vehicles respectively. The exact ratio of what we actually understand remains from 0.0000000000001% to 99.999999% depending on how foolish you are. I lean and bet my understanding is more towards scale with lots of Zeros rather than Nines.
To me this means, we are less smart that we think. Microsoft and Yahoo rejected to buy Google for couple of million dollars in 1998 when two of its young founders were doing the rounds in Silicon Valley. Since then company’s market cap has grown 20,000 times. (400 Billion USD)
Role of unknown / chance / luck / karma or any other theory is greater than we deem it to be.
Uncertain of returns for capitalists but “Jugaad” or stop gap fix / Frugal Innovation richly deserves much funding to solve the problems of lagging humanity, with ingenuity on budget.
Folks like Manu Prakash Sharma, inventor of Foldscope, and other innovators at Gates Foundation truly deserve a Nobel Prize.
Rounding Off Financially
Old economy continues to accomplish wonders for investors in the 21st century. Bricks, Paint, Food, Drinks continues to make a lot of financial wealth for capitalists.
I have mentioned at least half a dozen times, the opportunity to invest with Crown Berger Paints Kenya since 2012-2013. Revenues are growing at 18% but profits at 25% and share price at 65% (104% in 2012, 78% in 2013 and 65% in 2014), needs a lot of PE re-rating from here for another five years.
The year went by was equally spectacular, expecting an encore in the next three years or maybe a slightly subdued 40% cagr. Crown is a leader but not monopoly
Will post a couple more monopoly investments in Africa shortly over next few months that typically check all boxes on Phil Fischer and Munger checklists.