Curiosity - The Weekly Dose of Wisdom
Weekly dose of learning
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1.
The Key Traits of Family-Owned Businesses
From their humble or at least unremarkable beginnings, then, it’s obvious that family businesses can grow in scale and flourish, despite – or perhaps because of – typically going their own way rather than pursuing the playbook of publicly quoted companies.
The Boston Consulting Group has noted that: During good economic times, family-run companies don’t earn as much [as those with a dispersed ownership structure]. But when the economy slumps, family firms far outshine their peers. The simple conclusion we reached is that family businesses focus on resilience more than performance. They forgo the excess returns available during good times to increase their odds of survival during bad.
Family businesses are frugal in good times and bad.
Family businesses tend to invest only in very strong projects, miss some opportunities but avoid cash black holes.
They aren’t energetic dealmakers, preferring organic growth and what’s been called elsewhere ‘the disciplined pursuit of doing less’.
They retain talent better than their competitors do.
In short, family businesses focus on the next generation, not the next quarter, embracing strategies that put customers and employees first.
2.
The Rise of China 2.0
China Shock 2.0, the one that’s fast approaching, is where China goes from underdog to favourite. Today, it is aggressively contesting the innovative sectors where the United States has long been the unquestioned leader: aviation, A.I., telecommunications, microprocessors, robotics, nuclear and fusion power, quantum computing, biotech and pharma, solar, batteries.
Owning these sectors yields dividends: economic spoils from high profits and high-wage jobs; geopolitical heft from shaping the technological frontier; and military prowess from controlling the battlefield.
General Motors, Boeing and Intel are American national champions, but they’ve all seen better days and we’re going to miss them if they’re gone. China’s technological vision is already reordering governments and markets in Africa, Latin America, Southeast Asia and increasingly Eastern Europe. Expect this influence to grow as the United States retreats into an isolationist MAGAsphere.
According to the Australian Strategic Policy Institute, an independent think tank funded by the Australian Department of Defense, the United States led China in 60 of 64 frontier technologies, such as A.I. and cryptography, between 2003 and 2007, while China led the United States in just three. In the most recent report, covering 2019 through 2023, the rankings were flipped on their head. China led in 57 of 64 key technologies, and the United States held the lead in only seven.
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Thought of the Week
“It is an undoubted truth, that the less one has to do, the less time one finds to do it in. One yawns, one procrastinates, one can do it when one will, and therefore one seldom does it at all.” - Lord Chesterfield
“The cave you fear to enter holds the treasure you seek." - Joseph Campbell
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