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Steve Harmon - Roundup

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A quick look around tech and what's happening
 

Steve Harmon

July 27 · Issue #32 · View online
Beyond the hype, inside the world of venture capital, tech, stocks and trends, from Silicon Valley to Shanghai, from veteran investor and entrepreneur Steve Harmon - followed by many leaders in finance and tech, see more: http://steveharmon.com

A quick look around tech and what’s happening

Amazon or Amazing?
December 2016 I wrote an analysis called Amazon.life that said there’s a 3-way battle for your living room to try and provide hardware and software, content and services. At the time Amazon stock was $640/share. Now it’s $3,000/share.
At its IPO I recommended AMZN also…at $1.72/share. In 1997 Jeff Bezos (founder of Amazon) was a guest of mine at a conference. Soft spoken and focused.
Is the Amazon story over? It has more legs if broken up, value released. The key takeaway that many miss is Amazon started with a simple premise: sell books online.
Amazon made many mistakes since its start, though. Around 2000, 2001 it wasn’t clear it had a path ahead after trying to become a holding company of brands and niches.
The things it did right, however, made up for the failures along the way.
Venture Capital
I think the industry of venture is mostly a dead horse. The idea of 12 guys at a VC firm sitting around a table debating a startup pitch and designing what ends up being a camel.
When the entrepreneur was designing a horse.
There really needs to be some breakthrough here for venture and I think it’s happening in blockchain and crypto worlds and with global super angels. I think these markets are more closely aligned with the tech edge vs. the old paint by numbers world of VC.
If you’re an entrepreneur these days consider the movers and shakers in blockchain and crypto or super angels vs. a group managing college endowment money (most VC).
The idea of IPOs also is way out of date. Many moons ago Bill Hambrecht tried to pioneer direct IPOs and it started to gain traction. Yet here we are many years later and the big bank IPO process still exists. Oh, Bill was the guy who convinced a small startup named Google to do an Internet-based auction for its IPO in 2004. That guy.
Virus
If you haven’t already, take a look at the Spanish Flu of 1918, not because of the viral origin but because of the length of time it lasted and how it seemed to spread: close contact, overcrowding.
Many back then also fought against wearing a mask. Human nature.
Will this new virus pass also? We’ll see.
What I think will stay are brand new ways of living. Cleaner. More aware. Less contact in public. More delivery, less go getting. More nods, less handshakes. More living rooms, less public rooms.
Market Strategy
I would own diversified tech funds. Growth tech funds. There are many to choose from but they usually have the big names, little names mixed together. At this juncture I think the value exists in the little names who I think could grow fast and/or be acquired by the whales (big tech names).
Sure, you can try and pick the little fish as they move. But I think a fund makes more sense and offers some risk protection. If you have a 401k ask to take a look at the portfolio and results.
Until next time...stay well.

best regards,
steve
steveharmon.com
ditto.one
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