Missed this until now, but my cheerfully misguided friend Herb has an entertaining diversionary post up wherein he redefines what it means to be a technology stock. Tired, seemingly, of decrying tech stocks during the current bull run in the group, Herb has taken it on himself to deploy the old debater’s tactic of redefining what it means to be tech, thus solving his sectoral problem.
Anyway, according to Herb, flailing companies that spend a lot of money for minimal growth, like Microsoft, are tech; and growing companies that spend somewhat lower percentages of revenues for more growth, like Google and Apple, are not tech. This is, of course, nutty, even if Herb has managed to corral my friend Andy Kessler into providing some supportive quotes.
(And Andy’s right, tech generally creates new markets, as opposed to media, where it’s mostly a share game. But some of tech is increasingly at the confluence of both, creating markets and gaining share. Redefining the sector away on that basis is, let’s just say, convenient and somewhat blinkered.)
Over to you HG.