In this week’s episode, Preston and Stig discuss what they learned from reading Steve Case’s book, The Third Wave. Case is a famous Internet billionaire who co-founded America Online (AOL). His current net worth is $1.3 billion dollars. Although Case’s high net worth is primarily due to his time at AOL, he does run a venture capital firm in Washington DC, and he’s actively involved in numerous political interests. One of his more recent investments that have done quite well is a company called ZipCar, which was recently sold to Avis for a billion dollars.
Case’s book, The Third Wave, suggests that we are entering the “Third Wave” of the Internet. The first wave was when new companies were providing service for people to connect for the first time. This might be referred to as the wild-wild west phase of connectedness. The second wave occurred with companies like AOL laid the foundation for consumers to connect to the Internet. For example, companies like Amazon and Facebook built on top of the Internet backbone to create massive online stores and social networking sites, while apps like Instagram took to smartphones to capture market share. Case argues the Third Wave is what we are about to experience online. This is going to be a period where entrepreneurs transform sectors like health, education, transportation, energy, and food through increased connectedness and sharing. If you would like to read our five-page executive summary of The Third Wave, be sure to follow this hyperlink.
In this episode, you’ll learn:
- Why the story of AOL is really a story about the Internet.
- How to negotiate with Microsoft when Bill Gates wants to crush you.
- Why and how the Internet will be enabled on all devices in the future.
- Why the biggest merger in the field of technology failed and what we can learn from it.
Books and Resources Mentioned in this Podcast
Steve Case’s book, The Third Wave – Read reviews of this book
Preston and Stig’s discussion about Paul Allen and his attempt to take over AOL
Preston and Stig’s discussion about Carl Icahn and investor activism
Preston and Stig’s discussion about disruptive technologies in The Innovator’s Dilemma
Preston and Stig’s review of Ted Turner’s story about his merger with AOL
Sign up for the Berkshire Shareholder Meeting
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