Technology does not compound very well, which means technology assets do not give long term advantage, and barely protect from shocks.
Google did not buy Altavista assets to become a market leader. (Altavista was the biggest search engine before Google came out of the wood).
Facebook did not buy Friendster or MySpace to become a market leader. They just obliterate the previous.
Automobile was invented in Europe, popularized in America, but the current market leader is a Japanese company called Toyota.
Now, let’s visit the oldest multinational in the history of humanity, which is still a market leader, with never ending market expansion: the Catholic church.
The roman Catholic church is the world’s oldest multinational. It is also, by many measures, its most successful, with 1.2 billion customers, 1m employees, tens of millions of volunteers, a global distribution network, a universally recognised logo, unrivalled lobbying clout and well positioned for the future, with successful emerging markets operations.
What makes the Catholic church so enduring?
Here is something you have never heard off.
Formalism is the best asset of any society, and mastering formalism is the best investment for any individual.
Companies, societies, people with high formalism endures, prosper, out perform any of their counterparts.
In short, management, understood as a set of rituals designed to reassure and control output and risk, is the best compounding asset in the world.
Indeed, management uses and throw away technology, people and knowledge along the way.
No society endures without good managers. Training good managers is the single best investment for any society.
Master formality to fulfil your destiny.