Intel, Mobileye, and Smiling Curves

The great story behind it is that when Mike was taking over for Don Valentine with Doug, he was sitting and looking at Sequoia’s returns. He was looking at fund three or four, I think it was four maybe that had Cisco in it. He was like, how are we ever going to top that? Don’s going to have us beat. We’re never going to beat that.

He thought about i... See more

At first glance, the proposed (and now-withdrawn) acquisition of Harry’s Razors by Edgewell Personal Care Co. — the makers of Schick — and Intuit’s announced acquisition of Credit Karma don’t appear to have much in common. There is, though, a common thread: digital advertising, and the dominance of Facebook and Google.

As the market's understanding of software companies has matured, increasing numbers of investors have capitulated to higher and higher prices. Tech companies are still at relative highs compared to historical average multiples before 2021. Modern software businesses can be better businesses than most investors realize. You can make a lot less money... See more