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James Bessen - Understanding the Tech Paradigm

Value Investing with Legends

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The Evolution of Technology in Mass Production

Technology has evolved from emphasizing quantity production during the Industrial Revolution to focusing on producing varieties at low cost in the modern era. Mass production models, seen in the early textile industry, prioritized standardized products to achieve high productivity and growth. However, the tradeoff was the lack of variety to meet individual needs. Unlike traditional manufacturing, software is modular and enables cost-effective production of varieties. Companies like Walmart leverage proprietary software to handle a large number of diverse products efficiently, from tracking inventory to managing supply chain logistics, giving them a significant competitive advantage.

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