. . . Thursday October 28, 2004

The Boom Bust Cycle

The night of September 11, the President and his key advisors met to discuss next moves. Even then, both Donald Rumsfeld and Paul Wolfowitz were arguing that there was now an opportunity to go into Iraq and that perhaps they should start with that effort. Bob Woodward explains: “That night, Don Rumsfeld says, ‘this an opportunity to strike Iraq perhaps.’ And Wolfowitz … was very worried that Afghanistan would not be a success and Wolfowitz felt very, very strongly that we needed to put a success on the board. And [he] felt always that Iraq was going to be easy.”

Imagine 12 members of a technology company corporate board sitting around a table at the beginning of the dot com boom. Eleven of those board members have all agreed that the company should acquire a promising little start-up called Google. But one guy stands up says, no, you’ve got it all wrong. The company we should be buying is Kozmo.

Now imagine it’s years later and that board member still has his job.

Concentration is important!