This chapter explores the cautionary tale of companies that lose focus and fail when they diversify into new fields, using Sears and General Motors as examples. It highlights the potential future vulnerability of X (formerly known as Twitter) and its desire to become a financial app and payments processor, expressing concerns that it may lead to the downfall of the company.
What does it mean if history is just the same movie, playing over and over?
Morgan Housel is a longtime Fool contributor and the bestselling author of The Psychology of Money. Dylan Lewis caught up with Morgan to talk about his latest book, Same as Ever: A Guide to What Never Changes. They discuss:
- The not-so-helpful side effect of having fewer economic downturns
- Why true optimists believe that the future is messy
- Cautionary tales from companies that “got too wide”
- And what Warren Buffett understands about storytelling.
Tickers discussed: MSFT, GM, APPL, SSU, BRK.A, BRK.B
Claim your Stock Advisor discount here: www.fool.com/mfmdiscount
Premium Motley Fool US members can check out the latest “Mindset with Morgan Housel” episode here.
Host: Dylan Lewis Guest: Morgan Housel Producer: Mary Long Engineer: Rick Engdahl
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