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The Joseph Carlson Show

Why Big Tech Always Wins

Jul 11, 2023
A look into why big tech companies like Apple, Microsoft, Amazon, and Google always outperform benchmarks. Topics include Apple's seamless ecosystem and disruption in the FinTech industry, leveraging existing advantages to grow, and the importance of cohesive product offerings for big tech companies.
31:35

Podcast summary created with Snipd AI

Quick takeaways

  • The success of Big Tech companies lies in their ability to leverage existing advantages and ecosystems, creating a bundle effect that offers products and services that work seamlessly together.
  • Apple's continuous expansion of its product offerings and its ability to monetize its existing customer base have created a substantial moat and competitive advantage.

Deep dives

Big Tech's Consistent Performance and Exceptional Returns

Big Tech companies, including Apple, Meta, Microsoft, Amazon, and Google, consistently outperform the market and deliver remarkable returns. Over the past 10 years, Apple has achieved 1,100% returns, Amazon 742%, Meta over 1000%, Google 410%, and Microsoft 822%. These companies maintain their dominance and keep pushing the equity markets up by leveraging their existing advantages and ecosystems. They excel at using one advantage to generate further advantages and create a bundle effect. This bundling strategy allows them to offer products and services that work seamlessly together, creating higher returns on invested capital and making it difficult for individual companies to compete. While competition among each other exists, as seen with Amazon's Fire Phone, Big Tech as a group always seems to come out on top.

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