Technology has eaten the world

  • On Friday, I looked at the top 5 quarter-end market caps for the first quarter of 2017.
  • I went back 11 years to the same day and saw that on March 31, 2006, only one out of the top 5 market caps, namely Microsoft, was a technology company.
  • The top market caps were rather diversified, including financial services, industrial groups, technology, and of course oil production giants.
  • This does not mean there will be no market crash or bubble bursting; I am just saying that these companies are generating real revenue and profit just like the old top 5 companies, even though their services are often intangible.
  • I wouldn’t be surprised to see leaders in transportation, construction, and travel among the top 10 market caps within the next decade.

A few years ago, Marc Andreessen first declared that “software is eating the world.” We have been mostly inclined to intuitively believe the trend he was referring to, but we were missing undisputable proof. Now we have quantified proof, at least for the domination of the technology as a whole if not specifically for software.
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