For a clear view of broader market trends, one should always distinguish between the real "operating economy" and the financial "betting economy," where speculation often runs amok. Success in business and investing lies in identifying cases where these two domains will become one and the same.
SEBASTOPOL, CALIFORNIA – It is often hard to see the true trajectory of the technology industry because it is hidden by so much financial-industry smoke. For a clear view, one must start with the notion that there are two economies: the operating economy, where people make things or provide services for paying customers; and the betting economy, where people “invest” in things that people might be able to make, and that others might want to buy and sell.
SEBASTOPOL, CALIFORNIA – It is often hard to see the true trajectory of the technology industry because it is hidden by so much financial-industry smoke. For a clear view, one must start with the notion that there are two economies: the operating economy, where people make things or provide services for paying customers; and the betting economy, where people “invest” in things that people might be able to make, and that others might want to buy and sell.