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No. of Recommendations: 4
No position, but I believe many who didn't really grasp (perhaps for a very long time) the strategy behind what Hock was doing and came late to understand the story - this group includes nearly everyone by the way (not a dig at you) - now feel like they get the strategy, and this one bothers them (seen a few negative references to it).

My view is:

Hock views tech as a crazy bloated cost structure strapped on the side of a few (essentially) monopoly business lines.

Buy, remove bloat, manage the business for margins/profitability and rationality. Find synergies if they exist, but don't count on them.

Essentially the strategy is to arbitrage the tech industries over-infatuation with (organic) growth (which leads to sh1t businesses being built along side amazing ones), and he then simply cobbles together a tech empire of high ROIC businesses with limited reinvestment opptys, and prints money.

Not sure if CA will continue his winning streak, but doesn't seem off base to me, or shocking to me. No view on price, but it doesn't seem insane at least.

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