Dimon, Iger, Cook, Nadella, Pichai, Fink … they’re not founders like Gates or Bezos. They’re not investors like Buffett or Dalio. They’re management. And now they’re billionaires. And all their captains and lesser brethren are centimillionaires. And all their lieutenants and subalterns are decamillionaires.
And everyone is perfectly fine with this. No one even notices that this is happening or that it’s different or that it’s a sea change in how we organize wealth in our society. It’s not good or bad or deserved or undeserved. It just IS. This is our Zeitgeist.
This Is Water
One day we will recognize the defining Zeitgeist of the Obama/Trump years for what it is: an unparalleled transfer of wealth to the managerial class.
It’s the triumph of the manager over the steward. The triumph of the manager over the entrepreneur. The triumph of the manager over the founder. The triumph of the manager over ALL.
If TXN is the poster child of financialization, where are the owners? Who should be voting against all this bullshit? Where’s the corporate raider coming in to unlock shareholder value.
Here’s a quick google search.
Mutual fund holders 51.33%
Other institutional 37.52%
Individual stakeholders 0.55%
The finance industry is having it’s own “god is dead and we have killed him” moment.
Many speculate what the end game of “passive” investing looks like.
This is a preview.
But that’s what everyone in finance does. Don’t look at individual investments, build a portfolio. Hurray indexing. Hurray diversification. Hurray diversified portfolio across asset classes because you can’t make alpha without private information.
Are you investing in a way that supports more of this shit? Then going to your favorite forum “let’s ban buybacks”.
Don’t buy TXN stock(directly or indirectly).
Question for Ben: Is there any TXN under your management?
How Nations Recover
I’ve been especially interested in the way Britain revived itself between 1820 and 1848. Its comeback has some humbling lessons for us today.
Britain was roiled by economic and demographic changes. There were financial crises, bad harvests and a severe depression. There was crushing inequality. The average life expectancy nationwide was 40, but in the industrial cities of Manchester and Liverpool it was around 28.
.. The Chartists cohered around The People’s Charter, which had six demands, including universal male suffrage, vote by ballot and equal electoral districts. In 1842, the Chartists presented a petition to Parliament with three million signatures.
.. Finally, there was the Anti-Corn Law League. This was the best organized and best funded pressure group in 19th-century Britain. It promoted free-trade legislation to reduce the power of the landed gentry, to make food cheaper for the working classes and to encourage international exchange and cooperation.
.. Britain was blessed by a stable parliamentary system and by a legislative culture that valued deliberation and debate. Political leaders in both parties understood that the winds of change were blowing and they had better initiate reforms if they wanted to head off a revolution.