On the culture thing, a simpler theory seems to be that every country invests heavily in what people think is cool or prestigious.
So, in the USA, you tell people you invest in or work in AI datacenters or software and people think it seems awesome. Where as (maybe) in Korea super giant awesome ships blasting over the oceans would be the coolest thing. American investors probably have a very different risk appetite—if you imagine a weird model where (for some reason) people overwhelmingly invest in their own country, and (reasonably) each investor wants a certain amount of risk/reward. Then in a big country an investor can reduce risk by investing in lots of different companies that are individually high risk. In a small country, there might just not be enough of these lottery ticket companies to split, so a dependable one is more attrative.
AI data centers sound more high risk/high reward than shipbuilding dry docks.
Presumably Trumps tarrifs are a big part of why Nippon Steel are buying US steel—they think its worth making steel in America if it is impossible to effectively get steel into America.
On the culture thing, a simpler theory seems to be that every country invests heavily in what people think is cool or prestigious.
So, in the USA, you tell people you invest in or work in AI datacenters or software and people think it seems awesome. Where as (maybe) in Korea super giant awesome ships blasting over the oceans would be the coolest thing. American investors probably have a very different risk appetite—if you imagine a weird model where (for some reason) people overwhelmingly invest in their own country, and (reasonably) each investor wants a certain amount of risk/reward. Then in a big country an investor can reduce risk by investing in lots of different companies that are individually high risk. In a small country, there might just not be enough of these lottery ticket companies to split, so a dependable one is more attrative.
AI data centers sound more high risk/high reward than shipbuilding dry docks.
Presumably Trumps tarrifs are a big part of why Nippon Steel are buying US steel—they think its worth making steel in America if it is impossible to effectively get steel into America.
I think that’s largely downstream of what makes money, rather than upstream.
A small country like...China?