History and current thought

A few excerpts:
A winnowing is coming. For many, it’s already here: Startups will fail. Many big companies will be transformed, some may even be disrupted.
Cloud-computing companies are complaining their customers are slow to sign new deals, chips have gone from shortage to oversupply, and crypto markets are in free fall.
“Companies that basically had been able to spend recklessly, without any concern about where their next paycheck is coming from, are going to be in trouble today,” says Leslie Feinzaig, founder of the Graham & Walker venture fund.
What those in business, and particularly tech, called “blitzscaling” is no longer in vogue.
The recently passed Chips and Science Act of 2022, which provides $52.7 billion in U.S. semiconductor investments, has the potential to fuel the next boom in tech, says Dr. O’Mara.

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In the chemical industry we know one effect of layoffs is the dumbell shaped age distribution. Layoffs of the least experienced leaves more experienced older employees. Do that several times and as older workers retire those replacing them are relatively green. They don’t know where skeletons are buried and can repeat known mistakes.

For the incurably frugal such as I, here is a backdoor link to the article:

Bert Hochfeld at Ticker Target respects value and his reports and selections stress free cash flow. Now, his portfolio has been savaged along with the rest of us, but his recommendations might provide a short list of survivors from this mayhem. But beware, his reports can drive one to TLDNR-land.

KC

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