I didn't really appreciate how the optics of "margin" could cause some businesses to make poor global product decisions. Even if company leaders know better, external analysts focusing on it can exert indirect pressure through stock prices.
@ID_AA_Carmack Only founder CEOs can withstand that pressure
@ID_AA_Carmack Needs to be better financial education for future business executives. Market cap == long-run economic profit == NPV. Somewhat similar to how risk is broadly underappreciated, despite the obvious math.
@ID_AA_Carmack The only thing I've learned is that reasoning applies to engineering, not human behavior. The only reason engineering works is because reality will continuously bitchslap you until you get it right. Social activity requires a longer cycle time.
@ID_AA_Carmack The power of being ‘in the black’ forever and not needing stock prices to behave a certain way is understated. When all you can do is chase the next loan… you’re going to have a bad time.
@ID_AA_Carmack Does that mean, for example, that some companies will not make the correct decision in developing a product because the profit margin for that product is so great that external analysts will complain it's unfair? Is that the kinda thing you are referring to or something else?
@ID_AA_Carmack Seems like the general issue of later stage companies being more short-term focused. Prioritizing the long term means ignoring short-term pain, an ability that gets lost as the company moves toward the end of the exploration-exploitation spectrum.
@ID_AA_Carmack Dear John! Every pocket money used to be invested in the latest ID game, your life story was an inspiration for millions of kids - do I really have to buy a PC again at the age of 40 after 7 years! new quake? once again feeling like in q2 the first 20 minutes… 😍