Capitalism contains within itself the seeds of its own destruction
That’s what Karl Marx said.
And I see the truth in it.
To me, capitalism is all about growth and ambition.
It's about creating something big, something powerful.
But there’s a catch.
Over time, that success often leads to stagnation.
People start focusing on protecting what they have instead of pushing forward, and slowly, growth fades.
I see it in families, in businesses; the same story on repeat:
The first generation builds, the second grows it, and by the third, the vision loses its spark.
The new leaders are more focused on holding onto what’s been built than daring to grow it.
They get stuck in old ways, unwilling to explore new paths.
And when that happens, businesses lose their edge.
They stop taking risks, stop moving forward, and eventually, they lose their power.
Take the Murdoch Family for example…
The saga begins in the 1960s when Rupert Murdoch inherits his father’s small newspaper business in Australia.
With ambition and a fierce drive, he transforms it into a global media empire, acquiring influential publications like the News of the World and The Sun.
By the 1980s, he expands aggressively into the UK and the US, but the real trouble starts when his children enter the picture.
In the 1990s, the tension heats up as Rupert’s four children; Prudence, Elisabeth, Lachlan, and James; begin vying for control.
The public disagreements become apparent during a 2005 board meeting, where Lachlan expresses his desire to take a more active role, leading to a heated exchange with James, who believes he should be the one to lead the family business.
The situation spirals in 2011 with the News of the World phone-hacking scandal.
The fallout is massive; Rupert is called to testify before Parliament, and public outrage reaches a fever pitch.
James, who was seen as the heir apparent, faces intense scrutiny, and in the wake of the scandal, he steps down from his role at News Corp, stating he no longer felt comfortable working in such a toxic environment.
The scandal not only tarnishes the Murdoch name but also fractures the family, as Rupert’s once-solid relationship with his children becomes strained.
By 2020, Lachlan takes the helm, but internal divisions remain, raising questions about whether the Murdoch legacy can adapt to a rapidly changing media landscape.
The tension and rivalry among the siblings highlight how protecting what you have can lead to stagnation and infighting.
And here's another story… The Ambani Family…
The Ambani story kicks off in the 1960s when Dhirubhai Ambani, a visionary entrepreneur, lays the foundation for Reliance Industries.
His relentless drive and ability to navigate the challenges of the Indian market turn Reliance into a behemoth in textiles and eventually in petrochemicals.
Dhirubhai's unexpected death in 2002 leaves a power vacuum, thrusting his two sons, Mukesh and Anil, into the spotlight.
The brothers initially work together to honor their father's legacy, but their differing visions soon cause friction.
In 2005, the rift deepens when the brothers officially split Reliance Industries into two separate entities; Mukesh leads the petrochemical and refining side, while Anil takes charge of telecommunications, power, and entertainment.
This division is far from smooth; public disputes arise over control of resources and the future direction of their businesses.
A significant turning point occurs when Mukesh refuses to share critical infrastructure, such as pipelines, with Anil's telecom venture, Reliance Communications.
This results in a legal battle and escalates their rivalry into a public spectacle.
As the 2008 financial crisis hits, Anil’s ventures struggle to maintain profitability, while Mukesh’s Reliance Industries emerges relatively unscathed.
Anil’s inability to keep up leads to mounting debt, and by 2010, Reliance Communications finds itself in a precarious position.
Meanwhile, Mukesh is positioned for success with his ambitious launch of Jio in 2016, which disrupts the Indian telecom market and redefines connectivity in India.
Anil's companies falter under the pressure, culminating in a massive debt crisis that forces him to sell off assets to keep afloat. Today, Mukesh Ambani stands at the pinnacle of wealth and influence, while Anil faces an uphill battle to regain his footing, illustrating how succession can create starkly different paths even within the same family.
These stories of the Murdoch's and Ambani's remind us that succession is fraught with challenges
They show that succession isn't just about passing down a name,
it's a cycle of succession that often leads to decline.
The drive that once created something remarkable is overshadowed by the fear of change.
But I think we can break that cycle.
Succession shouldn’t just mean keeping things the same.
It’s about rethinking, evolving, and staying bold.
But here’s the contradiction.
We all want to protect our families, to keep what we’ve built for those we love.
I’m the same way.
But that instinct for protection can become the very thing that holds us back.
So, what’s the solution?
After hours of thinking, I realized something simple yet profound:
We have 2 options:
(1) Find people who can run the company for you.
because nepotism won’t always work in your favor. But if you want it to favour you…
here's the second option:
(2) Teach you kids to innovate, teach them how they can continue growing the business long after you’re gone.
Because true legacy isn’t about passing down a name; it’s about passing down a vision that keeps on growing.
Thank you for reading.
~ Hirdesh Matai