All-In E55: Valuing crypto projects, Rivian worth $100B+, inflation: causes and corrections and more
Episode 55 • 11/13/2021
Key Topics Discussed
Crypto Markets & Solana Conference
- David Sacks attended the Solana conference in Portugal, reporting significant developer enthusiasm and activity
- Discussion of Solana vs Ethereum, with Solana offering faster transactions (400ms) at much lower costs compared to Ethereum
- Detailed explanation of how Multicoin Capital was an early investor in Solana and the current market dynamics
Inflation Concerns
- CPI increased 6.2% in October, highest jump in 31 years
- Chamath explains how inflation is becoming persistent through wage pressures and supply chain issues
- Discussion of limited tools available to fight inflation due to high government debt levels
- Three potential solutions discussed: raising rates, increasing taxes, or cutting spending
Corporate Restructuring News
- GE announced splitting into three companies: Aviation, Healthcare, and Energy
- Similar announcements from Toshiba and Johnson & Johnson
- Friedberg explains why conglomerates are being broken up to unlock shareholder value
Investment Philosophy
- Strong emphasis on doing first-principles research rather than following others' advice
- Discussion of productive vs speculative assets
- Critique of stock buybacks vs R&D investment
- Chamath highlights how American companies have underinvested in R&D in favor of buybacks
China & Global Politics
- Discussion of Xi Jinping's consolidation of power
- Concerns about Taiwan situation and potential military conflict
- Analysis of naval capabilities among major powers
Notable Quotes
Friedberg on investing: "If you have to rely on someone else's advice or opinions on what to do, you're going to eventually lose money."
Sacks on inflation: "Inflation is very simple. It's too much money chasing too few goods."