Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Meta met Information Regulator over its camera glasses - Mark Zuckerberg

      Meta met Information Regulator over its camera glasses

      6 October 2026
      Why South Africa's biggest drone isn't flying for the country - Milkor 380

      Why South Africa’s biggest drone isn’t flying for the country

      6 October 2026
      Nersa wants five-year ban on automated electricity trading

      Nersa wants five-year ban on automated electricity trading

      6 October 2026
      South African boardrooms are about to get a lot less private

      South African boardrooms are about to get a lot less private

      6 October 2026
      FNB launches crypto trading - Bheki Mkhize

      FNB launches crypto trading

      6 October 2026
    • World
      BMW restructuring plan bets on AI and new models

      BMW restructuring plan bets on AI and new models

      1 October 2026
      OpenAI's rogue agent problem keeps getting bigger - Sam Altman

      OpenAI’s rogue agent problem keeps getting bigger

      28 September 2026
      The new battle over the desktop

      The new battle over the desktop

      23 September 2026
      AMD is now worth a trillion dollars - Lisa Su

      AMD is now worth a trillion dollars

      22 September 2026
      Anthropic weighs new model launch to blunt OpenAI's Astra surge - Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman

      Anthropic weighs new model launch to blunt OpenAI’s Astra surge

      21 September 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
      TCS | Octotel's Trevor van Zyl on the fibre merger question

      TCS | Octotel’s Trevor van Zyl on the MetroFibre merger question

      16 September 2026
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
    • Opinion
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
      What Revolut can and cannot take from South Africa's banks - Pambos Soteriades

      What Revolut can and cannot take from South Africa’s banks

      15 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Your life savings, one tech investment

    Your life savings, one tech investment

    By The Conversation2 March 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    money-640

    I’ve designed a mind experiment. If I had to invest all my savings in a single company, and had to choose either Apple, Google (now Alphabet) or Facebook, which one would it be? I would not be able to move my money for at least 10 years; it would be a long-term investment with high stakes.

    Portfolio investing or index tracking is out of the question for this experiment.

    The choice is by no means clear. They are all extremely successful companies that have impacted the way we live. They all operate in different but related sectors within the tech universe. In terms of annual revenues, Apple is at US$233bn with a growth rate of 28% over the previous year. Google is at $66bn with 19% growth, and Facebook at $18bn with 44% growth.

    In terms of net profit margins, all three have healthy returns at rates between 20% and 23%. In terms of market capitalisation, Google and Apple have been competing for the top spot. In mid-February 2016, Apple was worth $532bn, Google $495bn and Facebook $307bn. All three are led by senior management teams that are exceptional and committed. In Google and Facebook’s case, the founders are still there. If Steve Jobs had not passed prematurely in 2011, no doubt he would also still be at Apple.

    Differentiating giants

    How then to make the decision of which company to put one’s life savings in? Clearly, market cap is important, but fickle. Revenue growth is important, and Facebook has the highest growth rate, albeit from a lower base at slightly more than a quarter of Google’s revenues, and about one thirteenth of Apple’s revenues.

    How about if we ask, which company faces the highest strategic risks in terms of competitive pressures, and in terms of dependence of its success on a narrow part of its offerings?

    On this score, Apple seems to qualify. Its success is highly dependent on the iPhone, and if it wasn’t for its integrated ecosystem approach (the bundling of media content, apps and consumer electronics) as well as its design brilliance and brand value, copycats would be taking a much bigger chunk out of its pie. Having said that, Apple successfully commands a premium price for its offerings, which implies real differentiation. It also has huge growth potential in emerging markets.

    And even though its Apple Watch was not such a big hit as had been hoped, other future offerings could be. After all, Apple has a record of redefining industries with products that people actually want to use and have fun using.

    Facebook has moderately diversified its offerings and investments by acquisitions such as Instagram, WhatsApp and Oculus, and has built relationships and shared its platforms with thousands of app developers. So far there do not appear to be other social networks that have become serious competitors (LinkedIn operates in the professional space for example, and Facebook has already acquired Instagram).

    Facebook benefits from positive network effects — the more people in its network, the stronger it becomes and the bigger the barriers for competitors. Yet, it is not inconceivable that niche social networks may grow and collectively take market share from Facebook, or competitors from emerging markets progressively moving in to gain users from more developed markets. At a more fundamental level, there is a risk that the next generation may begin to see Facebook as their parents’ social network and seek new alternatives.

    google-640

    Google appears to be the most healthily diversified company, with offerings both in areas related to its traditional search business, such as YouTube, Android, Ads, maps, cloud services, chrome, some hardware, as well as its “other bets”, experimental businesses at the frontiers of technology.

    Google bets include investments in life sciences, self-driving cars, healthcare, media content distribution and venture capital. These emerging businesses have collectively lost money (US$3.6 billion in 2015), yet they are Google’s way of identifying the next big thing, proactively seeking to capitalise on societal and technological trends. Google’s strategic risk from competitors in its core businesses is still significant, but comparatively lower than that of Apple.

    The verdict

    These are all exceptional companies. However, I still need to answer the question I’ve set myself.
    Given strategic risks and the balance between prospering from the current business as well as exploring new avenues for the future, if I had to rank these three companies in terms of their likelihood to be around and prosperous in 10 years, here’s my ranking: Google would be top, closely followed by Apple, closely followed by Facebook.

    The decision is not easy, and no doubt there will be a variety of perspectives on this. But this is what makes business and competition exciting. Nobody knows the future and in the meantime there might well emerge a new technology giant that somehow escapes acquisition by the big boys and grows to become the new market leader.The Conversation

    • Loizos Heracleous is professor of strategy, University of Warwick
    • This article was originally published on The Conversation
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Apple Facebook Google Loizos Heracleous
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleEconomic crime in SA at ‘pandemic level’
    Next Article How Africa could leapfrog fossil fuels

    Related Posts

    AI spending now dwarfs the railway and dot-com booms

    AI spending now dwarfs the railway and dot-com booms

    4 October 2026
    Google scraps Gemini 3.5 Pro and turns to Gemini 4

    After falling behind in AI race, Google turns to Gemini 4

    1 October 2026
    Huawei's Mate 90 bets on 3D chip design to get around US curbs

    Huawei’s Mate 90 bets on 3D chip design to get around US curbs

    1 October 2026
    Company News
    Why laser technology makes sense for small businesses

    Why laser technology makes sense for small businesses

    6 October 2026

    Human-centred design: the business case for simpler enterprise software

    6 October 2026
    iONLINE launches Sydney breakout point, expanding its global network core

    iONLINE launches Sydney breakout point, expanding its global network core

    6 October 2026
    Opinion
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026
    The steam engine lesson AI doomsayers keep missing - Sam Clarke

    The steam engine lesson AI doomsayers keep missing

    28 September 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Meta met Information Regulator over its camera glasses - Mark Zuckerberg

    Meta met Information Regulator over its camera glasses

    6 October 2026
    Why South Africa's biggest drone isn't flying for the country - Milkor 380

    Why South Africa’s biggest drone isn’t flying for the country

    6 October 2026
    Nersa wants five-year ban on automated electricity trading

    Nersa wants five-year ban on automated electricity trading

    6 October 2026
    South African boardrooms are about to get a lot less private

    South African boardrooms are about to get a lot less private

    6 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter