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Commentary

Video: Stan DruckenMiller on Amazon Vs. IBM and Other Things

In a comment to what seems to be a “blockbuster” post on Capital Mind (over 14,700 hits yesterday, the highest ever single day page view count) – the Inflexion point in the Indian IT industry – Guruprasad pointed out this interview of Stan Druckenmiller:

The first part of the interview is what’s relevant. The fact that IBM is losing out to Amazon AWS in the server tech and so on. But IBM is a large service organization, and not really a server company.

Druckenmiller is a fund manager who, with George Soros, traded against the Bank of England and won (the battle of the British Pound in the early 90s). He then made the blunder of putting a large amount of money into the dot-com businesses about a few hours before the whole thing went bust in 2000. He’s got a pretty good record of making money; he stopped his fund in 2010 (and moved into family office mode) after years of what he calls sub-optimal returns of -5% (which he recovered by the end of the year).

It’s a great video to watch because it tells you of the humility of those that manage large chunks of money and have got beaten black and blue by the market. You never say something’s wrong or something’s right – you just bet your money on it, and you only focus on the making of profit. It’s the greatest lesson in humility when people who have no reason to be humble, just are. Hubris will be the death of us.

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  • Guruprasad V says:

    Thanks for mention. Stanley Druckenmiller is a humble soul who simply reversed his long position and shorted the market during the great crash of 1987.

  • Vishnu says:

    In simple terms , Cloud is all about replacing software and hardware. But most of Enterprise software is based on changing requirements-> Like Basel 1/2/3 norms, M&A Activities. As long as requirements are there and they are changing , there will always Indian Techies in Big Companies will be needed. I just joined a Project where Client is transitioning to Cloud Based Architecture..ha