The Playbook Theorem - Never Make Strategic Decisions Based on Pricing

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Strategic decision-making should never be solely based on pricing or economic factors, as this often leads to missed opportunities and suboptimal choices. Decisions made purely on financial valuations can result in significant oversights, such as rejecting potentially valuable deals or technologies due to perceived price inadequacies. For instance, venture capitalists may underestimate the true worth of innovative companies, evidenced by past hesitations on investments like Uber or Apple's maneuvers. This principle suggests a need for broader evaluation criteria beyond the immediate economic context, emphasizing that temporary market prices should not dictate long-term strategic directions. Additionally, companies can remain relevant in competitive landscapes for extended periods, highlighting that stock performance does not necessarily equate to overall market influence or innovation capacity. In essence, the Rosenthal postulate underscores the importance of taking a holistic view when making strategic decisions, rather than being constrained by pricing considerations.

It's time. We dive into the unbelievable history behind the quietest technology giant of them all — and as of recording the world's 9th (!) most valuable company — the Taiwan Semiconductor Manufacturing Company. This story checks every box in the Acquired pantheon of greatness: China, America, MIT, Don Valentine, Silicon Valley, "real men" looking silly, and... moats literally built by lasers. We're not kidding. Pull up a seat and settle in for a great one!

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Episode Sources: https://docs.google.com/document/d/1rQMgQDY5c3Fs5DsjB4cZHVZGdhN4kK-6HapO_r7pjyQ/edit?usp=sharing

Carve Outs:

Ted Lasso (Season 1): https://tv.apple.com/us/show/ted-lasso/umc.cmc.vtoh0mn0xn7t3c643xqonfzy
Greek: https://www.imdb.com/title/tt0976014/
Who is Michael Ovitz?: https://www.amazon.com/dp/B07B2HS77M/

‍Note: Acquired hosts and guests may hold assets discussed in this episode. This podcast is not investment advice, and is intended for informational and entertainment purposes only. You should do your own research and make your own independent decisions when considering any financial transactions.