Monday, February 1, 2016

C'mon Man - - Walmart versus Amazon

From Heavy Hitter Travel Light in the current issue of Fortune -

Walmart and Amazon have roughly the same market value - $250 billion.  Walmart needed $154 billion of capital to create that market value.  In comparison, Amazon achieved the same result using only $35 billion of capital.

C'mon man - - it's becoming less important to have a lot of physical capital.  The age of substituting technology for physical stuff is here.The battle of which capital produces more value - - the human kind or the physical kind is playing out in the markets.

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