Larry Smith Insight

Larry Smith is one of the best lecturers the University of Waterloo has to offer. The great thing about Larry is that he’s a bit of a geek. Even though he’s teaching economics, he gives the whole thing a CS-Engineering treatment that tends to result in a few increadible gems of insight. The following is a few I’ve caught over the past few weeks.

“The technology sector is driven by the market place, not by cool technology.”

Inventory control isn’t sexy, but it built Walmart

[on the creation and eventual adoption of computerized inventory control in the 70s]

The technology market place is inherantly chunky and if it continues to develop products that require massive investments, it will be more and more volitle.

[on investment cycles and capacity planning]

Look at VoIP. Vonage shares are dropping like a stone and Skype is giving it away. Too many railways, not enough demand.

[on market saturation]

“Companies institutionalize ambition.” Waterloo co-ops are some of the cockiest kids out there and cocky is synonymous with self-confidence.

[on the importance of “animal spirits” in investment]