Comments by "Louis Giokas" (@louisgiokas2206) on "Xiaomi Is Trash: Its Quality Is Shockingly Bad. Buyers Smashed It" video.

  1. This tendency for Chinese companies to branch out into businesses where they have no background is a bad thing for the Chinese economy. We call such companies conglomerates. They were once fashionable in the west, but have become, rightly, unfashionable.
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  2.  @danielch6662  I worked for GE. Actually, their issue was not that they were a conglomerate (although you could not say that at corporate level, trust me). They were, for almost a century, a highly profitable and valuable company. What happened was that Jack Welch steered the company into finance. There had always been a finance arm, but this had two purposes. One was to help customers buy the products (from individual consumers to large companies). The leasing portion of that satisfied the second purpose. Minimize the tax bill. The depreciation on large turbines and jet engines, for example, checked that box. Then Uncle Jack got GE into reinsurance, and all kinds of other financial businesses that had nothing to do with the core business. On top of that, the execs after Welch got into deal making and took their eyes off the ball. Don't get me started on that. Oh, wait, you already did.
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  3.  @danielch6662  One other thing. Look at Elon Musk. He is in several different businesses. On the other hand, his businesses are all in separate companies, each of which has its own investors. Most of the Chinese companies I am talking about have subsidiaries that still roll up to a single top-level entity.
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