Masters in Business

Opportunities for Digital Transformation Capital with David Roux

Dec 5, 2024
David Roux, Executive Chairman of BayPine and co-founder of Silver Lake Partners, dives into the world of digital transformation. He discusses the evolving tech start-up landscape and the future of AI, emphasizing untapped sectors for investment. Roux reflects on his career journey from Oracle to private equity, highlighting landmark investments in companies like Alibaba and Dell. He also explores the pivotal role of tech in enhancing business efficiency and the societal implications of these advancements.
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INSIGHT

Tech Sector Mispricing

  • Tech companies, especially during the dot-com boom, were mispriced due to a misunderstanding of the tech sector.
  • Investors focused on a small percentage of overpriced companies while the majority offered growth at reasonable valuations.
ANECDOTE

Seagate Investment

  • Silver Lake's first investment was in Seagate, a hard disk drive manufacturer, during a time when hardware was undervalued.
  • Despite being the leading producer, Wall Street underestimated Seagate due to the focus on internet companies.
ANECDOTE

Avago Investment

  • Silver Lake invested in Avago, Hewlett Packard's semiconductor division, when semis were out of favor.
  • Roux predicted the widespread adoption of processors in various devices, an idea ahead of its time.
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