Richard Kramer
👤 PersonAppearances Over Time
Podcast Appearances
And that's why everybody around the world knows about the MAG-7 now. So I think these companies have a unique ability, especially given the $300 billion to $400 billion of net cash balance they're sitting on, of duration in their business models. The Apple iPhone replacement cycle is four years. Gosh knows how long the average Microsoft software installation is.
And that's why everybody around the world knows about the MAG-7 now. So I think these companies have a unique ability, especially given the $300 billion to $400 billion of net cash balance they're sitting on, of duration in their business models. The Apple iPhone replacement cycle is four years. Gosh knows how long the average Microsoft software installation is.
We've all been using these Google and Meta services for a decade or more now, and they passed the toothbrush test of using them twice a day or more. So these companies are very willing to invest through down cycles to come out better on the other end.
We've all been using these Google and Meta services for a decade or more now, and they passed the toothbrush test of using them twice a day or more. So these companies are very willing to invest through down cycles to come out better on the other end.
And I think now the question that will be asked across the entire S&P 500 is how many companies have that stability and duration in their business model and have the sheer resources of big tech. And that's why Mark Zuckerberg can say, well, our CapEx isn't going to be 60 to 65 billion because it might cost a little more. We'll spend up to 72.
And I think now the question that will be asked across the entire S&P 500 is how many companies have that stability and duration in their business model and have the sheer resources of big tech. And that's why Mark Zuckerberg can say, well, our CapEx isn't going to be 60 to 65 billion because it might cost a little more. We'll spend up to 72.
And no one bats an eyelash because they know Meta can generate that much in free cash flow in a given year.
And no one bats an eyelash because they know Meta can generate that much in free cash flow in a given year.
Thank you so much for having me.
Thank you so much for having me.