“Value accrues, historically, in all industries, to those with a durable competitive advantage manifesting as either pricing power or an untouchable cost or distribution advantage. Most will not benefit, because their competitors will benefit to the same extent, and neither will have a competitive advantage because of it.” – Michael Burry on AI buildout capex (20260110)
Next:
- 2-2c1 If you have negative externalities, tax it
- 2-2d Gresham’s Law generalized—the bad practice drives out the good
Related:
- 2-1b4 Not fighting can win you the battle
- Avoid parade-tiptoe situation (or the escalator example)—see Warren Buffett (p. 215)
- 6-3b3g Federated (protocol) networks have a tendency, a fundamental by-product of their architecture, to evolve into corporate networks because network effects ensure that small advantages compound to create big winners