A profoundly positive story for the American economy

Written by John Osbon on August 24, 2011

Now there’s a headline you haven’t seen recently.  It comes courtesy of Marc Andreessen, co-founder of Netscape and general partner of the venture capital firm, Andreessen-Horowitz.  What does Marc see that so many others don’t?  Find out in his very interesting article “Why Software is Eating the World.”

Marc sees software “invading and overturning established industry structures,” thereby creating real, high-growth, high-margin, highly defensible businesses.  First, it was books and music, now it’s phones, computers, and national defense.  Next, says Marc, its education and healthcare, industries that have been highly resistant to entrepreneurial change and are “primed for tipping.”

Indexers reap benefits

If Marc’s vision is right, a wide range of industries will be transformed by software innovations, becoming more efficient, more customer-centric and more profitable. In my view this story is not only a refreshing reminder of the inherent potential of the US economy, but also another good reason to index. Owning a full spectrum of companies via indexes allows investors to reap the beneficial impact of software, without having to pick winners and losers.

Click here to read “Why Software is Eating the World.”

 



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