Saturday, June 9, 2012

Capitalism and competition are antonyms, not synonyms.

Great article in Forbes: Ten Lessons "Capitalism is about building wealth. But in perfect competition, nobody actually makes any money; all economic profits are competed away. Competition is overrated. In practice it is quite destructive and should be avoided wherever possible. Much better than fighting for scraps in existing markets is to create and own new ones. Sometimes you have to fight. When you do, you should win. But conflict tends to be romanticized, and people tend to get sucked in. It is worthwhile to think about how to run away from the fighting and build a monopoly business instead."

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