Content material:
This was clearly certainly one of my “should learn” books in 2024. The writer, Lionel Barber, is the previous editor of the monetary instances and as such clearly has entry to individuals who may need in any other case not spoken to a extra unknown journalists.
The ebook goes again to Masa-son’s very humble roots as a part of the Korean minority in Japan which clearly was not a straightforward childhood. His father earned the primary cash by breeding pigs of their backyard in a “slummy” space of their hometown. The daddy appears to have been fairly an entrepreneurial character himself, transferring into “mortgage sharhing” after which into Pachinko, low scale playing sport very talked-about in Japan. Just like Masa later, his father used dangerous leverage and infrequently risked all of it to win. In any case, the household obtained decently wealthy with these playing halls.
Earlier than setting out on his personal, Masa obtained the advise from one other profitable Japanese enterprise man to deal with computer systems and to be taught English. So Masa got down to go to the US. He confirmed exceptional math abilities however very quickly started to think about methods to become profitable.
His first enterprise, a Noodle store on campus needed to shut due to “inventive accounting” points. His first profitable enterprise was a pocket “speech sythesizer”. By creating this product he as soon as forgot truly his appointment for the wedding ceremony and his (future) spouse needed to go dwelling single at that day.
His early companions on the speech syntheziser felt bertrayd, as a result of Masa kapt virtually the entire 1 mn USD he acquired from a Japanese firm for himself.
After going again to Japan, he arrange a Software program distriubution firm for PC software program (Softbank) which was simply beginning of in Japan. Nevertheless, after 2 years ge obtained very sick (liver) however later somhow recovered. In his early years, Masa efficiently recognized many developments and capitalized them usually by way of JVs in Japan with US companions. He was additionally succesfully making a relationship with Invoice Gates early on and distributed Microsoft’s producst in Japan.
Following the implosiuon of the Japanes miracle within the early 90ies, Masa needed to bail out his father who had speculated in actual property and misplaced all his cash. Within the meantime he additionally managed to IPO Softbank which clearly was not straightforward. Very early on, Masa turned the “wheeler-dealer” that he’s nonetheless to at the present time, byuing and promoting firms on a regular basis. He additionally was very insensitive to valuations early on when he actually wished a enterprise for no matter cause.
His acquisition increase was fueled by extremely low-cost JPY loans from Japan’s banks. Masa was comparatively sluggish to know the impression of the web however then made his first transfer by investing into Yahoo by way of Ziff, a publishing home he acquired for two bn USD earlier. Once more, he massively overpaid (round 10x of what Sequoia paid simply weeks earlier). Solely to prime that up a number of weeks later for a bigger stake. As Yahoo hesitated, he got here up along with his future “signature transfer” and threatened to speculate an enormous quantity into Yahoo’s then largest competitor Excite. He additionally pressured them to create a Japanese JV with Softbank.
Based mostly on this blueprint, Masa muscled his approach into extra startups reminiscent of E*Commerce, Morningstar and many others. and efficiently rode the wave of web firms within the 1990ies. The underlying earnings of the businesses weren’t related, solely that the inventory value of those holdings would rise.
Thise rise was intercepted briefly by a whistle blower case in 1997, claiming that Masa and Softbank manipulated share costs and stored debt off-balace sheet in non-consolidated autos. It was fairly apparent that monetary engineering was one software in Masa’s toolbox, however nothing severe got here out of that.
Shortly earlier than the bubble burst, Masa made his greatest invement ever: Shopping for 30% of Alibaba for 20 mn USD. Again then, Alibaba was an early stage startup with virtually no revenues, however as all the time, Masa didn’t care as a result of he “may scent the cash” in China.
Masa bacame one of many wealthiest males on the earth in 2000, solely to lose virtually every thing within the Dotcom crash. However as soon as once more, Masa reinvented himself, this time as a Telecom entrepreneur and operator, culminating in shopping for Vodafone Japan which he managed to show round with the assistance of an unique settlement to promote the primary Iphones in Japan. After which solely to outlive one other close to demise expertise throughout the GFC.
After the GFC, he then employed two guys, Rajeev Misra and Nikesh Arora who needs to be instrumental in making Softbank into the most important “Tech progress” investor the world had ever seen. What occurred subsequent (Imaginative and prescient Funds, WeWork and many others.) is sort of well-known.
Abstract & Suggestion:
General, the ebook is a really detailed report of Masa Son’s profession to date. He clearly is a novel character, on the one facet he did establish a whole lot of the massive developments within the final 30-40 years, alternatively he’s a reckless gambler and isn’t shying away utilizing any soiled trick to get his approach.
My favorit a part of the ebook is the place he tries to promote the Imaginative and prescient Fund to Warren Buffett, who, not like many different older businessmen didn’t for one second fell for Masa’s charms. The assembly was very brief.
As Barber is a Journalist by coaching, the ebook reads much less like a Michael Lewis ebook and is extra “reporter fashion”, alternatively, he appears to know so much about Japan and I like so much how he manages to clarify occasions in Japan over the previous 40 years because the background for Masa’s rise.
I can undoubtedly advocate this ebook to anybody remotely occupied with Softbank and Masa Son, particularly as he simply reappeared along with Sam Altman and Larry Ellison in entrance of President Trump to vow 500 bn in AI investments, simply earlier than DeepSeek hit:
This enterprise comprises every thing from Masa’s playbook: Coming in late, and making an attempt to again the apparent winner with a shitload of cash.
Up to now this typically labored, typically it didn’t. Let’s see how this one will work out. Perhaps Lional Barber can add a brand new chapter in a number of years time.
As talked about above, the ebook is price studying, each if you’re occupied with Masa Son and Japan.