A wonderful post on technology investing from Bronte Capital. There is so much in this, including why they are short First Solar. For new readers, Bronte Capital Blog is written by the hedge fund guy who runs the fund. He's a terrific writer, great thinker and lives in Australia so has interesting observations on US markets, policies and individual stocks.
My favorite excerpt among many:
"Technology offers value creation like few other industries. In Australia Cochlear has created enormous value and improved the world. It can literally plug a bionic ear into someone's brain-stem and get them to hear. And the stock has paid about 20X – which is better than anything in our portfolio. Many of the biggest fortunes were made in technology. But technology – and specifically technological obsolescence has thrown many a fine company to the wolves. Palm for instance is likely to go bankrupt even though the concepts it pioneered are in everyone's pocket." -- Bronte Capital