A $9 billion hedge fund 'unicorn' says that in 20 years, Google won't be the tech powerhouse it is now

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Google CEO Sundar Pichai

• Hedge fund manager David Abrams says that while Google is "making more money than they know what to do with," it will not be the powerhouse in 20 years that it is now.
• Complacency, Abrams said, can hurt companies that make it to the top.
• Even companies that are aggressive about growing can lose ground. "I don't think Facebook is being accused by anybody of being complacent," he said.

Even the most successful companies can't rest on their laurels.

So says David Abrams, managing partner of $8.7 billion hedge fund Abrams Capital.

Even Google will not be the "powerhouse" it is now in 20 years, said Abrams. "I don't think you can assume anything is unconquerable," said Abrams, speaking at a conference in New York last week at Fordham University's Manhattan campus.

"They're trying to hold off that fate (of declining), but it befalls most people."

Abrams, a protégé of Baupost's Seth Klarman, rarely speaks in public and has been called a "unicorn" by hedge fund peers because he is often talked about, but never seen.

Abrams pointed to Microsoft's dominance during the 1990s, a time when it seemed like the company would "rule the tech world, if not the whole world."

"Who would have guessed Microsoft would have completed missed the Internet?" Abrams said. "It shows what can happen to even the hardest working and smartest people."

Even aggressive companies can be tripped up.

The scandals that have encompassed Facebook this year over user data misuse are not at all surprising, he said.

"Wow, shock," Abrams said with a tone of fake disbelief.

"Some company making a lot money is trying to protect its way of making a lot of money."

Abrams did not disclose if he has a short position in these companies.

A representative for Facebook declined to comment. Google did not respond to requests for comment.

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