A long time ago in a century far far away, I was having a conversation with Peter Yastrow on the trading floor. We were talking about what would jumpstart growth in the US. Peter said, “Great movements forward have always been lead by improvements in transportation, and/or improvements in communication.”
Back then, the only thing that was changing communication was the introduction of the cheap mobile phone. Today it’s far different and it makes me hopeful for the future.
In communication, the speed, way and how we communicate has changed and continues to change. It’s been a gigantic sea change. My kids pay closer attention to Snapchats than they do Instagram. When Peter and I had that conversation, neither of us could have fathomed either.
In transportation, the obvious technological revolution is driverless cars. In the meantime, we have seen tremendous linear iteration inside existing cars. Drones, new kinds of roadways, sensors and other kinds of technology will rapidly change the way we get from point to point in coming years. If Elon Musk can get his vacuum tube idea off the ground, that makes it go even faster.
Technological costs are dropping. It’s possible to write code and create software that solves previously unsolvable problems in unique ways. Technology is accessible to more people than ever before. At the same time, with mobile phones, their potential customers are accessible 24/7. They are also not so much about place-but can be reached instantaneously internationally.
Yet, more and more money is being poured into Private Equity. If you know of a family office that is intent on pursuing a private equity strategy with multiples at all time highs, interest rates at all time lows, and banks that are tight fisted with money-send em my way I will show them what I am seeing.
The new World Renaissance is just beginning.