Comments on: “How to Make Wealth” by Paul Graham http://www.itsrishi.com/archives/2005/12/22/how-to-make-wealth-by-paul-graham/ Thought streams on the future of tech and media Thu, 08 Apr 2010 01:27:47 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Maxwell http://www.itsrishi.com/archives/2005/12/22/how-to-make-wealth-by-paul-graham/comment-page-1/#comment-48 Maxwell Tue, 27 Dec 2005 19:44:32 +0000 http://www.itsrishi.com/?p=22#comment-48 ...I don't mean to babble on like Rishi does most of the time but I figure that's what Blog is about right? : ) my last point on this - think of all the tycoon who became ridiculously rich simply by being in real estate. yeah they may use technology like a PDA to keep track of their connections, and an Excel sheet to keep track of price trends. But at the end, it's their vision, their connections that made them rich (plus a bit of luck of course). Like they bought a piece of land cheap, then they suddenly realize it'll be re-zoned to a business zone and they can build offices. Yeah i wonder how they can tell the future wink wink. …I don’t mean to babble on like Rishi does most of the time but I figure that’s what Blog is about right? : )

my last point on this – think of all the tycoon who became ridiculously rich simply by being in real estate.

yeah they may use technology like a PDA to keep track of their connections, and an Excel sheet to keep track of price trends. But at the end, it’s their vision, their connections that made them rich (plus a bit of luck of course).

Like they bought a piece of land cheap, then they suddenly realize it’ll be re-zoned to a business zone and they can build offices. Yeah i wonder how they can tell the future wink wink.

]]> By: Maxwell http://www.itsrishi.com/archives/2005/12/22/how-to-make-wealth-by-paul-graham/comment-page-1/#comment-47 Maxwell Tue, 27 Dec 2005 19:38:38 +0000 http://www.itsrishi.com/?p=22#comment-47 ...and in my dad's industry - garment manufacturing - i know enough people who became rich by lowering labor cost (think moving to China) that'd prove Paul's theory wrong. …and in my dad’s industry – garment manufacturing – i know enough people who became rich by lowering labor cost (think moving to China) that’d prove Paul’s theory wrong.

]]> By: Maxwell http://www.itsrishi.com/archives/2005/12/22/how-to-make-wealth-by-paul-graham/comment-page-1/#comment-46 Maxwell Tue, 27 Dec 2005 19:34:14 +0000 http://www.itsrishi.com/?p=22#comment-46 ...having worked in a medium size enterprise software house for 4 years and knowing friends and family who did startups I'd comment on this a little. In particular, while this is a very motivating and insightful read, I found the logics behind the cover is quite weak. For example, he mentioned: "If you look at history, it seems that most people who got rich by creating wealth did it by developing new technology." this is true and false in many ways. To elaborate, I'd quote the list of Fortune 500 companies - inside, a company makes cheese, another one makes labels and one that makes, well, gas (and you know who!). Fortune 500 (2004) http://www.usatoday.com/money/companies/2004-03-22-fortune-500-list_x.htm these are commodities and everyone knows we all need these on a daily basis, that's their first step of success, creating something everyone wants. but how are they more successful than their competitors? it's about how they execute their ideas. Like they may use technology to give themselves an edge (e.g. wal-mart), or they may use smart partnerships (e.g. ExxonMobil + George Bush). But to coin all successful wealth generators under the umbrella of "new technology", I think that'd be a gross overstatement. However, new technologies are what startups are about and that's how they make wealth - because they have nothing else to offer. …having worked in a medium size enterprise software house for 4 years and knowing friends and family who did startups I’d comment on this a little.

In particular, while this is a very motivating and insightful read, I found the logics behind the cover is quite weak.

For example, he mentioned:

“If you look at history, it seems that most people who got rich by creating wealth did it by developing new technology.”

this is true and false in many ways. To elaborate, I’d quote the list of Fortune 500 companies – inside, a company makes cheese, another one makes labels and one that makes, well, gas (and you know who!).

Fortune 500 (2004)
http://www.usatoday.com/money/companies/2004-03-22-fortune-500-list_x.htm

these are commodities and everyone knows we all need these on a daily basis, that’s their first step of success, creating something everyone wants. but how are they more successful than their competitors? it’s about how they execute their ideas.

Like they may use technology to give themselves an edge (e.g. wal-mart), or they may use smart partnerships (e.g. ExxonMobil + George Bush).

But to coin all successful wealth generators under the umbrella of “new technology”, I think that’d be a gross overstatement.

However, new technologies are what startups are about and that’s how they make wealth – because they have nothing else to offer.

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