Content material:
This was clearly considered one of my “should learn” books in 2024. The creator, Lionel Barber, is the previous editor of the monetary occasions and as such clearly has entry to individuals who may need in any other case not spoken to a extra unknown journalists.
The e-book goes again to Masa-son’s very humble roots as a part of the Korean minority in Japan which clearly was not a simple 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, shifting into “mortgage sharhing” after which into Pachinko, low scale playing sport very talked-about in Japan. Much like Masa later, his father used dangerous leverage and infrequently risked all of it to win. In any case, the household acquired decently wealthy with these playing halls.
Earlier than setting out on his personal, Masa acquired the advise from one other profitable Japanese enterprise man to concentrate on computer systems and to be taught English. So Masa got down to go to the US. He confirmed exceptional math expertise however very quickly started to consider methods to earn cash.
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 nearly all the 1 mn USD he obtained 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. Nonetheless, after 2 years ge acquired very sick (liver) however later somhow recovered. In his early years, Masa efficiently recognized many tendencies and capitalized them typically 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 this present day, byuing and promoting corporations on a regular basis. He additionally was very insensitive to valuations early on when he actually wished a enterprise for no matter motive.
His acquisition growth 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 couple of weeks later for a bigger stake. As Yahoo hesitated, he got here up together with his future “signature transfer” and threatened to speculate an enormous quantity into Yahoo’s then greatest 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 akin to E*Commerce, Morningstar and so on. and efficiently rode the wave of web corporations within the 1990ies. The underlying income of the businesses weren’t related, solely that the inventory worth 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 saved 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 nearly no revenues, however as at all times, Masa didn’t care as a result of he “may odor the cash” in China.
Masa bacame one of many wealthiest males on the earth in 2000, solely to lose nearly all the pieces 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 dying expertise in the course of the GFC.
After the GFC, he then employed two guys, Rajeev Misra and Nikesh Arora who ought 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 so on.) is sort of well-known.
Abstract & Suggestion:
Total, the e-book is a really detailed document of Masa Son’s profession to this point. He clearly is a singular character, on the one aspect he did establish a number of the large tendencies within the final 30-40 years, then again he’s a reckless gambler and isn’t shying away utilizing any soiled trick to get his approach.
My favorit a part of the e-book is the place he tries to promote the Imaginative and prescient Fund to Warren Buffett, who, in contrast to many different older businessmen didn’t for one second fell for Masa’s charms. The assembly was very quick.
As Barber is a Journalist by coaching, the e-book reads much less like a Michael Lewis e-book and is extra “reporter model”, then again, he appears to know quite a bit about Japan and I like quite a bit how he manages to clarify occasions in Japan over the previous 40 years because the background for Masa’s rise.
I can positively advocate this e-book to anybody remotely all in favour of 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 incorporates all the pieces from Masa’s playbook: Coming in late, and attempting to again the apparent winner with a shitload of cash.
Prior to now this typically labored, typically it didn’t. Let’s see how this one will work out. Possibly Lional Barber can add a brand new chapter in a couple of years time.
As talked about above, the e-book is price studying, each in case you are all in favour of Masa Son and Japan.
