A Pineapple for a King
Knowledge and Innovation: The Driving Force of Success Throughout HistoryLearning something new doesn’t just expand our horizons—it transforms the way we see the world. If there’s one clear lesson from history, it’s that knowledge has always been the key to success, both for individuals and nations. Through knowledge, humans, despite their physical limitations, crafted tools to hunt stronger animals and adapt to various climates across the globe. Over time, this knowledge evolved, allowing humans to dominate technology and, consequently, the world.History is filled with examples that illustrate how technological development has been the driving force behind civilization.
A symbolic example of this reality is the portrait of Charles II of England, painted in 1677. In this painting, we see John Rose presenting the king with a pineapple—a gesture laden with meaning. At that time, the pineapple, newly discovered in Central America, was a rarity in Europe, a symbol of power and status. Cultivating this fruit on English soil was an impressive technological feat, achieved through heated greenhouses, and reflected England’s rise as a global power. A single pineapple could be worth the equivalent of 8,000 dollars today. The spice trade had already shown that vast fortunes awaited those who could control the supply and trade of valuable foods.
The Portuguese initiated this journey with their explorations but soon lost European dominance because they ceased to lead in technological innovation. While they developed the best ships, the Dutch, focusing on botany, established botanical gardens around the world, bolstering their economic power.
In the 17th century, botany was considered the "great science," an indication of a country's power and sophistication—much like nuclear science, space technology, or data science today. The pineapple offered to Charles II was therefore not just an exotic fruit but a living symbol of power and technological achievement.
Today, in financial forums, technology is undeniably the dominant theme. Tech companies, in contrast to oil companies and banks a few years ago, have captured investors' attention. In our view, technology has always been and will always be the main driver of markets. Innovation and the mastery of new technologies are the pillars of development, and just as in the 17th century, those who master these pillars will inevitably find fortune—the kind described by Niccolò Machiavelli in "The Prince".
However, there’s a caveat: it’s not enough to simply develop and master a new technology. Besides Fortune, one must also walk hand in hand with Virtù. According to Machiavelli, the person possessing Virtù is the one who succeeds in obtaining and maintaining power.
History teaches us that the technology developed by the Portuguese was not enough to keep them as a superpower for long, as there were no significant barriers for their competitors. Perhaps this is why Tesla became the most valuable car manufacturer in 2020. Looking to the future, it’s expected that Tesla will continue to develop and stay ahead of its competitors. The market favors companies with Virtù—those that can develop and maintain leadership over time.
We believe that cycles are the primary variable in determining asset prices. With the advent of a new cycle, new opportunities and risks emerge that can be avoided. The development of technology is the driving force of humanity and, consequently, of cycles. A new technology can change the cycle we are in, just as its decline can. Our purpose is to relentlessly seek to understand and replicate this vision in our investments. We seek Virtù in hopes of perhaps encountering Fortune.
