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The Value Trap

23/04/2025

Pete Winn, Andy David

Andy and Pete dive into their 'Value Trap', a visual framework to explain how AI will transform industries and their approach to escape the value trap. 

They also discuss capital allocation strategies for the AI transition and the characteristics of businesses that fare better through this transition. 

Description

Andy and Pete dive into their 'Value Trap', a visual framework to explain how AI will transform industries and their approach to escape the value trap. 


They also discuss capital allocation strategies for the AI transition and the characteristics of businesses that fare better through this transition. 


Topics Covered: 

  • Introduction and reflection on their lo-fi podcast approach 

  • Explanation of the "Value Trap" concept 

  • Phase 1: Cost reduction through AI implementation 

  • Phase 2: Revenue growth and pricing power 

  • Phase 3: Competition 

  • Phase 4: Mean Reversion 

  • Capital allocation strategies for the AI transition 

  • Business characteristics that fare better through this transition 

  • The paradox of technology laggards benefiting most from AI 

  • Strategies for incumbents: The "Netflix model" of business transformation 

  • Buy vs. build approaches for traditional businesses 

  • Risk management during AI transformation 

  • Potential macroeconomic impacts of widespread job displacement 

  • Monetary policy implications and inflation concerns 

  • Buy Bitcoin

Check out more episodes

The Good Stuff is a low-fi dialogue with Pete Winn and Andy David.

 

Each week, we share our everyday experiences working with artificial intelligence and how it's fundamentally changing the rules of work and business, the economy, entrepreneurship, and human potential. We explore the ripple effects, unintended consequences, and emerging opportunities as AI transforms how we work and create, diving into the tools and technology we're using each week.

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Expect a mix of chats out of the back of a van at the beach, walking interviews and general use of dialectic and discussion with insightful guests that lift the lid on complex topics. Chilled out, minimal jargon, authentic.

 

Connect With Us:

Email: info@otherstuff.studio

Pete: https://x.com/Pete_Winn

Andy: https://x.com/andymdavid

Transcript

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