This resonates so strongly with me, and I'm so glad you posted it. It reinforces the framework I've been using myself for the past few years and perfectly articulates what I've been trying to explain to myself even.
I can add even one more I personally follow. The standard way most tech companies put capital to work is hiring or aqui-hiring tech talent.
My own experience tells me that's too risky since I've worked with far, far more overvalued people than undervalued. Therefore, I reinvest the profits of my tech business into companies that have steady and real return on equity (e.g. Wells Fargo). Imagine that: A tech company that invests all retained earnings in a boring bank! :)
I can add even one more I personally follow. The standard way most tech companies put capital to work is hiring or aqui-hiring tech talent.
My own experience tells me that's too risky since I've worked with far, far more overvalued people than undervalued. Therefore, I reinvest the profits of my tech business into companies that have steady and real return on equity (e.g. Wells Fargo). Imagine that: A tech company that invests all retained earnings in a boring bank! :)