Hey everybody. Welcome Back besties are back. And it's a bestie spax giving congratulations to the queen of quinoa his second company David Freiburg announces today hours before the taping of this special Thanksgiving pod that he is taking Metro mile public there was back and that bestie see
and here is the quote.
That as only chamath can tweet Buffett had Geico I pick Metro miles. Are we just like to say that's how you move markets LeBron James has three rings Freiburg. Tell us what is Metro Mile and well, this isn't a self-promoting podcast is it I mean like no, but I think it's just, you know, it's your second time. I started the company in 2011 when I was running climbing.
It when I was the CEO there and you know, we were climate was offering insurance at the time. We learned a lot about the insurance markets and figured like a, you know, telematics or connecting cars to the internet's going to be a big deal and we're going to be able to completely change the auto insurance industry. So we set up this company. I was the chairman from the founding in 2011 and you know been been chairman and I've been an active investor in the business and every round since then so
the business has built some, you know, really compelling value proposition for customers and you know, it's got really good unit economics and it's you know needed its last round of capital to get profitable and turns out you know, we were thinking about that this Summer that ass pack was a really good path for the business given the inflection point it's at and the basic premise of the businesses instead of paying for insurance by month or time period. Yeah Innovation here is you pay per mile.
Yeah insurance today is like, you know, you fill out a form and you get a price for insurance you pay that rate for six months of coverage, but you know, depending on when you're driving and how much you're driving. You should be paying a different price. Right? So we kind of changed the model to a rate per mile. And so if you don't drive you save, you know, so the average customer doesn't drive a lot with Metro mile. They say 47 percent over what they were paying with like Geico or Progressive reassurance. And you do that with that ODB poor. It's like oh, yeah the Lord on your device and increasingly we're actually
Ali doing it directly by connecting two cars direct through a Ford and a couple other big Automotive oems now have this ability to send the data directly out of the car because they're all internet-connected now, so so that allows us to just basically, you know, see how many miles you're driving and the rate per mile is what we bill you each month times. The number of miles you drove on your on your car and you didn't mention how you drive. I think that was a controversial concept for a while, you know, if you speed if you are we don't know the exact roadmap.
Or yeah that that is part of it today. But frankly 70% of the price difference you get in auto insurance is from the number of miles you drive and only 30% is really in this variance around Behavior, you know, most people are generally pretty good drivers. So believe it or not. So the real variance in terms of you know, your risk to the insurance companies how many miles you drive? So that really is the predominant Factor. So if we can accurately track that now what's interesting is like in a world of autonomous cars where you're like turning on the car to be autonomous or fully self driving at some point.
It's on and off. You should be getting a different rate for those miles. Right? So if the car is if your Tesla is on autopilot on the freeway, that should be safer than you on the freeway. You shouldn't be paying as much problem. There are even better than got you can kind of think about how this moves into a world where everything is dynamically priced and dynamically build usage priced usage fight them at and also fair. So, you know, if you're a good driver and you're driving well or if you're using autonomous feature, it's you shouldn't pay as much and ultimately that translates, you know into a truly kind of more Dynamic service and
Really where the world has to go because those low mileage drivers or those good drivers are those drivers using autonomous features should be paying considerably less. So they'll start using our service and that will force the other guys for raise their rates and it creates a huge, you know, kind of Market mode great wearing that we're in the we're in the very early days. I mean, it's like the first inning still so we're you know, we're just getting going to move you chose to do a pipe with the SPAC explain to the audience. What a pipe is people don't know and what you loved about Metro mile.
Sure, I think the what is a pipe a pipe is a private investment in a public Enterprise and basically what that means is that you're making the round bigger, right? So it's kind of like Sequoia does your series a and invest 10 million, I would come in and put another 10 million and now your series a is 20 million same terms as the as Sequoias around except you're now just grossing up the amount of capital.
Why is that helpful while what it does is it allows somebody to price the deal? So in this case David SPAC sponsor price the deal did the diligence and decided to underwrite Metro mile at that price and then they came to me and said hey, you know, do you want to come and join this round essentially and I got to know the business a lot of things that David said basically are true. The thing that I will say is like, you know, everybody talks about the value of machine learning right and data.
Oriented learning the most obvious thing that you can do is if you learn on top of a huge subset of data, especially out in the real world, like driving data or any other kind of information is you should be taking risk on top of it. And this is why sort of these next-generation insurance companies to me are so interesting because it's probably where you're going to see machine learning be used at just massive massive scale because you're just going to reprice risk and make it as David said much more dynamic.
Beck so anyways, they showed it to me. I really like the product the metrics are really amazing. And so I joined this great. I'm really excited for I'm really excited for Freiburg. Yeah. Congratulations great job, and I've never worked on anything together. So it's awesome. We're doing our first project here on the all in podcast together. All
right, so sounds that it sounds like a brilliant idea and I'm just pissed on my part of it.
Yeah, I Jason do you know about
this? I don't know anything I get I'm the last
both got out of it. First of all,
I need to get my beak wet you two got the wet or
be my beak
wet you to narcissistic besties have been have been running around all day shouting every single unicorn you guys have been apart allocation and Robin Hood. I miss my allocation first or whatever. All right new bestie rule new. Bestie rule. Everybody gets a slice even a little Pasty.
Who everybody gets to be quite the old neighborhood like the old neighborhood back a little share? Let's Jason. Why don't you start an angel lists indicted for every all in podcast listener? Yes all in podcast Syndicate. It will be on The Syndicate.com Olivia Angeles. But yeah, okay. Yeah, we'll do it. We'll do it that Syndicate.com / all in podcast and then will aggregate all these subscribers and it's a 20% carry and you guys can suggest ideas accredited we will do will do 0 carry and will allow all the listeners.
To participate in our deals, which I think would be pretty cool. Listen. I have a I love what every time you look my business into this whether it's podcasting or syndicates, you take out the money and the process I tell you what how about we speak this week in startups and you do it for no participation on the father of growth. You know, how you grow by making things free. You want to maximize the man just make it free, by the way on this topic Sachse poo had this incredible tweet this week, which was
Sickly like wow, this is like my 95th unicorn that went that filed to go public. I mean literally every single unicorn that filed this week to go public Sachs was an angel investor, which is incredible in Saugus is a goodies as an investor, but the best follow-up to eat was Zach Weinberg the co-founder of flatiron Health whose tweet was I just want to congratulate myself on nothing for having not been a part of any of these complications. I would like to congratulate myself for making no bets.
Taking no risk and getting no reward. I thought Zach's to eat was the best sex don't you find it tiring? Like all these Investments that you've made like but not these guys call you and want to do meetings and chat all the time. I mean, you know, this is going to be like a huge amount of
effort, right?
Well, not not not. I mean it's not really money and turn around. Well, you know, if you're not on the board, your obligation is basically to respond when somebody asks you for something and as an angel investor, it is a little different when you're actually like leading around in your board member. I'm Jamaican accent. I was making these Investments back in 2012-2013. That's when these seeds were planted right
these were 50k a hundred K 250k.
Checks, right? So the responsibilities proportional to the dollar
amount somewhere a little bigger than that actually but I mean I've written I've written checks, you know, seven-figure checks and some of these companies
will tax according to your personal balance sheet that we got from your accountant this week. I feel how many sent it. Yeah. We see here our transaction for house. Is it true you did the series V of house the entire Series be $1.99 are no I heard it was.
You led the Syrian man. No, no any a LED that round. I mean, I invested a lot as an individual. I did co-lead the series B or C of at a park. That was one that I did as an individual.
That's incredible. Yeah, that's amazing going to be huge. I have no idea what that company is, but that sounds awesome. They manage fun. I do portfolio me software. Just kidding.
Let's start the pot Jake Al where we going to start. Well, I mean, I think now that we've also
promoted exact. Well, I'm just happy to hear that. Jason was cut out of your deal as much as me and I went when I read about it on Twitter. I'm like, I better not be the only
best of Pals. All right. You're right. You're right it is it is getting awkward now because people who watch
This podcast assume that we do everything together. Like literally they're like, well you guys go grocery shopping together you go on vacation together you guys get the same together now, so yeah, it's that's not how it works. I think the first thing we should we should talk about is just this amazing moment in time when because of science, you know in this podcast started during the pandemic we have had as
Goodbye, Freiburg who gets to take to Victory laps. He said by the end of the year, we have vaccines and they would have because of this mRNA if I remember correctly 90 95 % efficacy and sure enough the week after Trump wins. I'm sorry loses. Sorry sax. He lost actually after Trump lost. I know you didn't vote for him the week after he lost moderna Pfizer then the next week.
Moderna and then the next week Oxford and I understand Johnson & Johnson is about to announce something and all of these have 90 to 95% efficacy and that there are going to be 40 50 and 60 million doses in December January and February just from the first two in America alone. So Friedberg if you were to put a number on when herd immunity hits because probably 20 or 30 percent of people have had it 20 30 percent of people have some natural immunity. How long
Is
this going to take and could we be at a be doing this from you know A Warrior's game next year. When are we going to be able to do this in person? I think I don't know if it was test. Yeah, I don't know if it was Fouch here. Someone that's closer to the operation shared that they do think they can get 70% of Americans immunized by May. So my major yeah, so, you know, if you'll remember a few podcasts to go. I think I try to explain a big part of the budget that went into this operation warp speed was to parallelize production of these vaccines while they were being tested.
It and so we've been scaling up the production and manufacturing of these and if they weren't going to work, we're just going to crash them right couple billion dollars who cares. It's a good option for the American people. So we've got a ton of doses that have been produced. It's about packaging and distribution now and that's, you know supposed to be kind of underway with the plan to be that on December 11th or 12th. When they give the emergency use authorization these doses start showing up in can we went well, and we basically went all in blind like we just shove the chips in and said we're going to make these
Seen 0 if they're not like it's more like a spray and pray Angel Investment Portfolio, you know, we bought a but we bought like four different things or five different things. We made it that's in all of them and hope that one of them pays off and it turns out they're all going to pay off. So, you know or chunk of them are going to pay off and we get to have them ready, you know in time to kind of make a difference here now all that being said, if you look at the case numbers in the u.s. Right now, we could be as high as 30 percent of the American people.
I've already been infected with coronavirus based on some estimates. So as of the June 30th paper that was published from those dialysis patients and they did a pretty good statistical interpretation of looking at antibodies and people's blood. They estimate 10 percent of the American population was infected by coronavirus as of June 30th. And then if you look at the number of people that have been infected since then and you apply the similar sort of multiple that you would assume based on tests, you know, there's an estimate that we could already be at up to 30 percent of the u.s. Population.
Patient has been infected. Wow, and therefore immune and the theoretically mostly immune. Let's just say that right and so we sure there's anecdotes and so on but yeah, let's just say generally yes in you and so you combine that with these vaccines starting to roll out and we get, you know, a pretty kind of comfortable position in terms of the pandemic and hopefully a couple of months here.
And that's why the markets going nuts and that's why everyone I mean, I don't know about you guys, but I got some conference invites this last week for conferences for next year that have been cancelled this year and we're viewing on hold. Yeah. So wow, people are starting to leave what for what time frame third quarter or fourth quarter? Summer July. Yeah. So people are now assuming that and they're booking Hotel spaces based on it. That is extraordinary sacks. You shared this New York Times story wanted to summarize it for the audience and I'd love to get your thoughts in addition to this.
As to what this recovery might look like if in fact we have more vaccine than we need and even you know, a reasonable number of Americans take it and don't believe that it's a conspiracy theory by Bill Gates to control and the Illuminati
and all that stuff. Yeah. I mean this New York Times story is pretty remarkable. It's called politics science and the remarkable race for Coronavirus vaccine. This came out I think just came out today in the New York Times actually. Sorry. It's
Published it published of our 21st updated over 24th, and it's pretty remarkable. It describes the effort by operation warp speed by the administration by Pfizer by the during that kind of gives you the behind-the-scenes play-by-play and reading the article. You have to come away thinking that the Trump Administration did a pretty good job with this whole warp speed project. I don't know if the New York Times realizes that it's making the term feminist.
You look so good, or maybe they don't care anymore because he's lost the election but the article does make the administration looked very good. I mean competence very competent. First of all, they shoveled money to the right people. They you know, they offered Pfizer money Pfizer didn't want it or need it. But moderna did so they got a few billion dollars to moderna. They parallel processed a bunch of different the temps here so that if one company failed the others might succeed there was a sort of a
Die cutting of bureaucratic red tape wherever they could there were examples in the story of the drug company needing something some supplies or what have you and they would call the administration and they would you know make it happen. And then finally the administration didn't do anything to to kind of mess with the science, you know, in fact, they describe how this the this new experimental mRNA technique that they used to generate the vaccine. They had the code for that.
Within two days. They actually had the vaccine sort of printed if you will within weeks and really what took all this time where the human trials what you know, the three-stage human trials, which the administration did not do anything to speed up and probably the irony of ironies a supreme. Irony is there's a story there's a bit in the story actually begins with the disguise flowey who's the head of the Trump administration's effort to produce the vaccine. He actually slow down.
Down the moderna human trials by about three weeks because they weren't including enough minorities in the you know in the in the trial and that cost him three weeks. If it weren't for those three weeks moderna is vaccine would have happened before Pfizer and it would have come out about a week before the election. So you got to wonder like Trump is got to be pulling out his hair or about what hair about about about this twist of
fate David. How does it attribute credit for warp speed?
And Ike I'm going someplace with this. So I'm just asking you the question.
Well, I don't the article is not trying to attribute credit. They're just kind of describing the behind-the-scenes of how Pfizer moderna came up with their vaccines and it just but in describing, you know Pfizer moderna did the work of creating the vaccine but in describing the ways that warp speed contributed they did things that were only helpful and nothing that was harmful. And so in that sense it made the Trump Administration. Look quite good.
Yeah, I think the point is that the warp speed folks, which is probably the least well-known working group working on coronavirus to the rest of the public is because it was a lot of wonky insiders it was sign of almost proving the exact opposite of what Trump typically does which is, you know, some idiotic nepotistic leaning words his daughter or this son-in-law running around, you know completely and effectively, you know doing something where they become sort of front and center for taking credit.
In this case. It was just a bunch of policy wonks. You never heard about the project. We only know about works because a handful of us have talked about it and it it turns out to actually have been good because they knew what they were doing and they do enough to not try to seek the credit and just got out of the way. I mean, it proves almost the antithesis of how the Trump campaign, you know manage their time in the White House.
Well, I mean, I you have a point where you know, I was kind of reading this article wondering you know, where was Jared Kushner because if Kushner knew about this, there's no way he slows down the momentum.
Uh, derna vaccine by three weeks. I mean that might have made the difference right there and whether Trump wins or not. Can you imagine the effect on the election if the vaccine had come out one week before November
3rd decided trumpet of one decidedly if he had a vaccine or to out with 90% but I think he had no credibility even though moderna and Pfizer were saying late November and he said the vaccines around the corner his whole tenure was based on so much lying.
Was the boy who cried wolf he's he was the president who cried wolf by the time he told the truth and he was telling the truth about the
vaccines.
He it was like, oh my Lord, he told the truth and the final three months and I can I give you the opposite David of that which is that if moderna basically says, hey guys, we have a vaccine that works for white people and disease that's you know, disproportionally killing blacks and you know Hispanics and brown people Native Americans
And all of a sudden people are like wait, what the fuck maybe they would have gone to Georgia and they would have just crushed them even more and then you would have actually had the Senate flip to so you could have had a whole kind of distribution of outcomes. They're in a different case because you could have had an angry reaction as well. We don't know I guess as
well. Yeah. I mean, I think it's ironic that an Administration that was constantly accused of white supremacy probably lost the election because they slowed down.
This vaccine trial group to include more
minorities. No, I know but I think it what we're saying is it wasn't the actual administration of myself. It was somebody, you know, we the doctor knows what they were doing. We call that redemption in the movie when the person actually loses because they did the right thing is kind of redemption Freiburg. When you look at these mRNA vaccines you were educating us about them last night and also for a long time tell the audience just one more time how
how these work briefly and what the potential for them is in the future because I think a lot of us now are starting to see the light at the end of the tunnel. This is going to be over we're going to be a conferences or going traveling to Europe or whatever. It is next summer, but we are all going to be scarred for life thinking, you know, when is the next coronavirus just like for a decade we were on pins and needles when is the next 9/11 so this is going to be scar tissue for a generation or two of people.
When the next covid comes how quickly will warp speed 2.0 go. Yeah. It's a it's the right question because our approach to doing vaccines may have just changed permanently. So, you know every cell has your DNA and DNA basically codes proteins. Every three letters of DNA makes an amino acid codes for a specific amino acid. There's 20 amino acids. The way that DNA turns into proteins is through RNA so RNA
Is kind of like a mirror copy of your DNA floats into these things called ribosomes in your cells and outcome proteins and those it's like a printer, right? And so those ribosomes make your proteins using those amino acid sequences coded by the RNA. So the way that the vaccines work historically is you'll get a dead virus, which is basically the protein of a virus your immune system then learns to kill that were
to protein
Jesus my dog your immune system and
learns to remove that protein from your body and that's how you develop this memory your immune memory to a specific protein. And so they put this dead are vaccine but virus in your body and hopefully your immune system learns a good response to it mRNA basically puts the RNA in your body that codes for that protein your cells then make that protein and because it's making a lot more of the protein in a more consistent, you know way theoretically the idea is your body develops a much more robust immune memory and immune
Bonds without it overloading your system with all the immune cells try and wipe that protein that right away and so on the challenges, you're putting RNA in your body and we've always been worried about we don't know what the side effect is mixing RNA your body would be is it going to change your DNA? It's going to change your genetic makeup. Is it going to cause other delivered curious side effects. So this technology this capability this knowledge has been around forever. I'm not forever but for you know a long time and the idea has always been we could use RNA in this way, but, you know, no one wanted and we've used it in animals, and we've used it in plants and we've seen the capabilities of
Using RNA to do different things like this, but this is a big leap. And so, you know, we kind of left forward here getting to the point that we felt comfortable with you know, RNA is a treatment like this and it's it's working. So in theory in the future, it's act points out. You could take any virus or any bacteria. You could read its DNA you do that in an hour. Then you can take chunks of that DNA and code RNA for its that your body makes those proteins of directly produce an immune response. So that that's the that's the science of like, how do you how do you create a
new bank statement? I think that's the amazing.
Saying part is the way it's described, you know in this article is that it's almost like laser printing or 3D printing a vaccine. It's kind of like the equivalent of that. You just take the Genome of the virus and you know, boom you've got the vaccine and then all the other delay is about human trials and testing of it. But imagine if that there was the next coronavirus is ten times as deadly, you know, something that's as spreads as contagiously as smallpox.
And is you know as deadly as a bowl or something like that, we could have a vaccine the next day, you know, like you could we can have a very
privileged David would be as we'd have it the next day like we did here but we would be going through this three phase trial and so I want to take a moment here and talk to jamaat about something which is challenged trials in the UK. They will start doing challenge trials for those people who don't know what a challenge trial is essentially. They expose you to something dangerous is a virus like covid.
And then they give you the vaccine and then they give you the virus as opposed to how we do a three phase trial, which is you give the vaccine to 30,000 people and Placebo to 30,000 and then you come back three months later and see how many people got infected and it takes time and money. Whereas challenge trials only take risk on the individuals who are part of it trauma that a hundreds of people in the science Community signed a letter and in the UK, there are going to be doing the first challenge trying.
Owls in January the United States is not doing these I'm certain China is do you think it's a moment in time where we need to think about the ethics and morality of challenge trials specifically and then if so, how do you execute them with that? How do you execute a challenge trial without it being unfair or too dangerous for people? Obviously, you're not going to just go into a prison and say hey anybody want to get 10 years off the sentence join the challenge trial that seems morally bankrupt, but we let people climb mountains without
So right. Well, I think this speaks to a whole bunch of other issues that we've talked about on the Pod before, you know, another example of this was section 230 before when we talked about it. We had a body of law that was created in a moment of time that essentially was about Framing and understanding a specific pathway in a way to use technologies that today look archaic and we have to rewrite the laws in order to just compensate and understand for where we are. So if I
If you double-click on Trials as an example, you know, if you have a solution for a rare disease, you can go in a specific pathway with the FDA and get breakthrough and fast-track approval. But if you for example have you know, a novel immunotherapy cancer drug, you probably you cannot you know, you have to do a multi phase trial a typical three phase trial you have to solve for very typical things like fatigue, etc. Etc. All these things slow progress down now in a world where we were somewhat Flying Blind.
You're 50 years ago. We didn't have you know things like crisper. We didn't have you know, a real understanding of the genome. We didn't have delivery mechanisms, like karti. You would say. Okay. Yeah, we should be really really careful. But I would say that the more you know, the more you can ease up on the rules because you can actually Empower people with a lot of information and it shouldn't take a disaster scenario for us to be iterative and experimental so
I think the challenge trial is really important. I think the concept of the make a lot of sense. I think a lot of government should employ incentives to figure out who is eligible and why but if you're a healthy adult male or female and you want to participate in a trial for whatever set of reasons you should be allowed to do so and companies that want to run those trials should be allowed to run them. Similarly. If you want to find a complementary pathway through Regulatory Agencies.
Get drugs to the starting line. You should be able to do those two and I think what we have to do is multipath these compounds going forward because I think that's where you accelerate. All these Technologies is ability to actually solve these diseases Freiburg. Why is it so controversial that a rocket ship company or you know people who want to climb on mountains without ropes or a rocket ship going to be like there are experimental Pilots We Have astronauts they take unbelievable risk.
We send thousands of troops into Harm's Way for many different reasons many of which sadly died and they volunteer for those activities those people are volunteering and compensated. But when we look at science, and we look at a challenge trial scientists say this is morally reprehensible to compensate somebody for taking risk when it that's exactly what we do in the Army. We do it with police officers and we do it with astronauts. Help us understand how scientists
think so differently than say War. I don't know if it's scientists as much as it is, you know regulatory framework like the
some people would call it a nanny State and you know, there are things that the nanny State assumes individuals don't have the capacity to understand the extent of the potential loss or the or the nature of the risk. This is true for Angel Investing, right? You have to be a qualified investor to invest in a private company without appropriate disclosures and it's true in a lot of other contexts. So, you know to give people the authority to make decisions like this. It seems like my I have no point of view.
I'm kind of making here but it seems like the government assumes or the elected officials assume or the populace assumes that there are things that people aren't really equipped to make decisions on because they can't understand the risk because they're not qualified and that and they get excluded from those activities. But SATs is the it's just actually refund stuff. Yeah.
Well, I think she may be pregnant. I think it's some sort of risk is is a is a really good principle and it is a way for people.
People to engage in potentially harmful behaviors is because it behavior is potentially harmful doesn't mean you don't get to do it in the United States. You're allowed to do things that are manifestly harmful to yourself like smoking. Well, you know,
usually even even worse if you're an Oregon you can now do all kinds of hard drugs. I mean you can assume that risk for yourself. So, you know if in Portland, Oregon you can now take heroin openly in the street with no consequence, but you can't participate in a trial that could
Basically cure a cancer. That's insane to me. I'll tell you I'll tell you I'll tell you the flip side of it. You're allowed in Nevada to play roulette me what the fuck like, you know, it's got a negative expected value statistically factually for individuals, but the individual doesn't have the capacity generally speaking that's playing roulette to recognize that every dollar. They're spending at the roulette table is likely going to be to you know, taken away from them like this some percentage of that that's going to be taken away. There's a 5% Edge for the house on
At that game and and so we make the argument in some cases that people don't have the capacity to understand risk, but in other cases it's okay for them to not have the capacity to take risks. And I think that there is this notion of what some people call regulatory capture that probably encompasses both of these which is that there is some degree of profiteering that has created some set of laws that kind of manifolds fastly capture that system in a certain way. So there are profitable Casino Enterprises that say, let's get people to spend their money in a risky way that they don't understand.
And that becomes the law and then people in the batter like to do that. There are also pharmaceutical companies that will say we need to have huge regulatory burdens. So once we make that big investment and we get patent approval and we can lock in that drug. We can charge a lot of money for it. So I would argue to some extent that the regulatory capture associated with the profiteering that happens on the back end in Pharmaceuticals has in large part driven the structure around risk-taking in drug trials particularly in the u.s. I mean you can go
Whatever drug you want over the counter in Mexico, right? I mean, we have a very different system. It's also happens to be the most expensive in the world. And the rationale is well, you're the most protected right? Well the drug the drug infrastructure here has created to your point because of Regulation the entire, you know cro industry which is a multi multi-billion dollar industry, which basically is essentially a retardant of Rd velocity, right? Its entire job is to slow things down.
These double blinded Studies by the way, and some many of these studies are not even double-blinded. They're not even actually scientifically rigorous. They get basically blown apart after the fact. So what are they really in the business of doing it's because they're exploiting a business model that was created by laws laws that were written by Regulators Regulators that were in the hands of lobbyists. None of those folks truly understood at the time, but especially today what's really possible. So, you know, it does not make sense in the United States of America just writ large.
Please put that you can buy alcohol and drink yourself into the ground by cigarettes and smoke yourself to death, you know, jump all the way your money gamble away your money where your negative EV or open, you know, openly do illicit drugs, but you can't participate in a thoughtful trial backed by scientific research In fairness to math. You can get away with smoking fentanyl in San Francisco and Oregon but it is illegal to use that plastic straw. So be careful folks that
Pause very clear here that plastic straw is going to get you in a lot of trouble. I don't know what the fine is but it is you make it difficult. It would it would it be so crazy if it were true but to your point like you would actually get arrested for having a plastic bag. Then you wilt for having fentanyl in San Francisco. Absolutely. They'll arrest you for the bag that The fentanyl is in the chesa Boudin will not arrest you for the fentanyl in the plastic bag sacks. We've totally lost the script but
shimoff sort of bridge this with the 230 discussion of common carrier and hey, you know, we had great intent with this law, but nobody saw social networks becoming this dominant addictive Etc. So we need to be more Nimble as a government in changing these regulations, whether it's trough sufentanil challenge trials or 230. You wrote a blog post about it after we had our 230 discussion. A lot of people started talking about it. Have you come to some conclusion as to
An exit ramp for 230 or a way to maintain it without you know throwing the baby with the bathwater.
Yeah. Yeah. Well, okay just kind of make one concluding thought on shore, of course, I stopped. So the reason why innovation has happened so fast on the Internet is because of you know, one word permissionless, right permissionless Innovation. Nobody who has an idea for stardom. He said go get permission from someone in the government, you know repeatedly, that's really what makes a difference, you know, Mark Zuckerberg as a you know sophomore in college can
Just build his project Larry and Sergey as PhD students can just build their project ship it start, you know getting users and they don't have to get the permission of a regulator whose incentive by the way is just typically not to get fired by approving something that might rebound on them and some you know, and some bad way
and to keep their job. Yeah
keep their job. I mean imagine if you know, imagine just take it like a random example when Ilan launched Starman member and he put the like, yeah.
He launched the Tesla into space and there's like a astronaut in there. It was like this kind of really cool moment. I assume he just did it. I assume he didn't get permission from anybody to do it, but could a moment like that have really happened if he did have to get permission. No way be like making its way through the chain or would know what to think of it. No one would know whether they could be the one to approve it and then what if something goes wrong what if the Tesla comes back down to earth and turns into a meteor or whatever those
The scenarios of me running through their heads. Nobody would have allowed it. Right and so when you just let entrepreneurs do things like good things happen, right? And that's why we've had so much progress on the internet and in some of these other areas, we've had much less progress because you know, what a system like that selects for is your ability to go Lobby Regulators as opposed to just building your project and shipping it.
I think that one of the things that maybe happens is that you know, we're all expecting or maybe some of us I have
definitely some version of a new deal and some Grand bargain and I wonder maybe whether the New Deal and are sort of like our version of FDR over the next I don't know 10 years is the person that actually says guys we're going to have a wholesale rewrite of the regulatory infrastructure to account for technology just period we're going to start someplace reasonable and small and we're going to make Common Sense reforms just observing the times as they exist today, right and we're going to go and
And systematically try to make these industries a little bit more resilient a little bit more entrepreneurial, you know a little bit less corrupted by regulatory capture and lobbyists and laws that just don't make sense a hundred years
later. The I mean it'd be great. If we could do that. The reason we can is because how do you reform the law without the lobbyists getting their fingers in it? Right? And and the problem is there's no there's no lobbyists for the company that doesn't exist yet right for the founder for
Entrepreneur who's got an idea in their head, but they haven't built their company yet. There's nobody representing that person Innovation 10, right? And what happens is you get new regulations in Washington some agency gets created. They Reach Out And Touch an industry, but gal every player that's affected has to create their own lobbying, you know not working tradition.
Not true and David. What do you think about this? What if the the advocate for the entrepreneur or the uncreated company and uncreated product is really the same as
just individual civil liberties and rights.
How are they really that different because really what it's doing is saying the entrenched organizational infrastructure that runs my life gets deconstructed and then power gets pushed down to be the individual that's tantamount to the same thing. I think well, we we have seen some we have seen some dudes back. Well, I mean there is some silver lining here. If you look right now the citizens of California obviously people have been fleeing and we've been talking about California and the one part.
A system here causing so many problems but we did have prop 22 pass and we now have nine hundred thousand people have signed to recall Governor Newsom and these seem to be some pushback against this sort of Nanny state where people can't make decisions and then additionally today the SEC announced that they will allow gig working companies to give stock.
Two employees as part of their compensation up to 15% of their compensation. In fact Hester. How do you pronounce your last name? It's not Pierce. You can't pronounce the word Pierce purse first purse. No, it smells Pierce, but it has to purse. Is it worth following on the Twitter hesder Pei rce has to purse I had her on my pockets this week in startups, and she they're really getting aggressive.
In changing the accreditation law. So anybody's going to be able to be an accredited investor you'd become sophisticated through a testing mechanism and now they want to like gig workers get by the way. Sorry, here's a perfect example of a regulatory body and infrastructure that actually has changed with the times. I think the SEC. In fact, I think we maybe we talked about this a little bit the last time I actually think one of the best Trump appointees has been Jay Clayton, and I actually think Jay Clayton has done an incredible.
Good job, and a lot of what he's done is just deconstruct this kind of Nanny State and say people can become educated and make good decisions for themselves. And because it's in some it's an area that's relatively benign IE investing people kind of just let it happen without a lot of pushback and everybody kind of generally supports it Democrats supported Republicans support it and the outcomes are really good to your point Jason, which is in a world of zero rates. How do you expect any just you know, average ordinary middle American who just works?
Is a decent job to save for their retirement to actually make enough money while they're going to have to get educated and they're going to have to find a way of putting their money to work in in in assets that have a better return which literally was illegal up until very recently. I mean, we you were having this you were systematically letting the rich stay rich and you were blocking the poor from having the opportunity to advance like what if Apple store employees could get their paycheck and say I want to take my paycheck 70 percent cash 30%
You know restrict restricted stock units at this discount like we could let Apple store employees make, you know, a million dollars after 5 or 10 years of working there 10 20 years from now and have generational wealth change David Sachs you have comment
was going to ask for math. Do you think this type of deregulation is going to happen in the by ministration? Yes, what you're discussing is like a very really kind of classical Republican reaganite idea, right?
I agree and and and I think what's going to happen is you're I think you're going to continue to
to see deregulation in areas that are benign and non-controversial. So I think the SEC the FCC, I think all of these places you'll see movement. I think you're probably actually see a lot more choice and deregulation effectively in in Medicare and cmmi. I think those places will move first and then I think it'll be up to
Some leader politician to then really rally the troops on some higher order bits and one of the biggest higher order bits would be sort of around the broader Healthcare infrastructure Social Security regulation education education is probably the biggest one that's that's like the it's just too sacrosanct for the Democrats. You cannot get elected with other teachers. And so unless there is a startup that completely disrupts teacher pay and teacher compensation then the
Public School teachers unions will continue to dominate a lot of the federal and state policy for the worse. Unfortunately Freiburg, if you had one regulation or series of regulations or regulatory body, you would most like to see change for the good of humanity and you know Americans and the rest of the humans on the planet. What would it be probably helped? Yeah. It's probably
the drug price of the drug development process, you know, there was a
gene editing program that ran and someone died. So it's what you always this 97 99 and they basically halted all Gene editing programs for 13 years, you know many people died during that time. I was fucking it's a crazy crazy fact where you know, they're the you know, the one death is too many rule, you know.
Sickly doesn't take into account the the kind of broader implications on the downside. So yeah, I think that one's probably pretty important. But you know, there's a good interview if you want to hear some interesting thoughts and on again not trying to be an advocate for any political point of view, but Charles Koch goes on Tim Ferriss. If you guys heard this podcast intern I've listened to it. Yeah, and he highlights a couple of really good examples about this regulatory capture problem, like if you're poor,
And you want to become a hairdresser and you know, start a salon or go work in a salon and make money cutting hair the cost and the burden for you to go get the necessary approvals from the cosmetician Association is too burdensome for you know, the average person who's poor needs to become a hairdresser and it's just insane that you can't just go be a hairdresser the government government needs to ensure that people don't get bad haircuts there. It's worse. Yeah you could you
You don't need a license to be the engineer that writes the machine learning code that either drives a car autonomously or that, you know helps Propel disinformation in a social network, but you do need to have a license to give someone a buzz cut. So that's a bingo statement right there. Yeah. I mean In fairness I'm checking out saxes new haircut here and I'm gonna thinking there should be more regulation their money without a
license.
Yeah,
you're so white and pale you're blending into the background shade. It's impossible to see where your skin ends your hair starts and the regulatory if you think about the framework, you know, it extends into education to like you can't go get an entry level job without a quote-unquote college degree. How fucking useful is a college Philosophy degree to someone that's trying to get an entry level job working at XY.
He back right? Like it's it's a bit absurd that the structure is set up so that there are whether it's you know government or not, but there is effectively a hurdle which is this alternative to regulatory capture, but it's like call it embedded system, you know capture like there is a significant kind of hurdle that you have to get through that costs a lot. And the point of entry is gotten too high for most and it really stalls things out and it's going to cause more damage than good well and it's also been completely disconnected from the reality.
T of your employment potential people are going into debt for $200,000 in a liberal arts degree that provides. No scale that is do we all people make sense. Like does anyone on this in this group argue for meeting a bachelor's degree for everyone knowing I don't mean II think I think it's useless. What do you guys think of is a sin come sharing agreements. These have become kind of Lambda school. Does them bunch of other schools David? You saw a start-up we just invested in that's doing them and I think you like them at the demo day we did with crafts.
Maybe you know this idea is who should take the risk for an education and when you look at an is an income sharing a room what they're saying is the school takes the risk they let you come to school for free. They give you what would be the equivalent of us a $15,000 coding camp or growth marketer risk. Then you pay double that amount over five six seven years as a percentage of your income, but if you don't get income if you don't break 50k year, you don't have to pay it back and if
Side to go back to school or income drops below 50 you don't have to do it. Can you imagine if a college had to make that promise they should do it. They should start in college sports, but they should do it.
Imagine you you know, Duke basically went recruited kids and said listen, we're going to pay you to come to Duke. We're going to get you a ticket educated. We're going to teach you how to play basketball better than anybody else and we're going to take 5% of your future earnings. Yes or no, you're not going to have to go to boosters. You're not going to have to take money. You're not going to do any of this stuff on the side, but just be your best learn to play the game will get your reasonable education will give you a good infrastructure. And we take 5% of the back end with a kiss so you could cap the upside right? Or maybe there's maybe there's no cap and
And but why do we always have to care about all of this? Like it's like, you know, it's like whatever may be its 5% for the rest of your life. You're going to pay the government 50% you get nothing in return. So if you pick by percentage you get Coach K to teach you how to shoot a jumper it's better than that, right? So why isn't it possible and I remember how people had this unbelievably paternalistic allergic reaction to income sharing agreements when they were first talked about the called them indentured servitude modern slavery slavery, and it was all my God. I'm so insulting to but a concept
In signing a contract with an agent to represent you when you first start out in any industry music or or sports or film or whatever one you could sign a agency agreement where the ancient is your rep for 10 20 years, right? I mean some of those agreements can have long tails on them and that's effectively the same, you know, look at what's in your cap. Look at look at we can talk about this in a second. But like, you know, did you see what happened with Chappelle the last couple of days where she'll be let's go. Did you watch the video? I loved it. Yeah video is incredible. It was incredible. So the
Quick story on this is Chappell. Basically did he had a request he went to Netflix and he said take down Chappelle's Show Netflix took it down and he did a little stand-up. It's on his Instagram. It's like 18 minutes. It's fabulous as most Chappelle stuff. He's your pal Peak Chappelle and he basically told this story which essentially the punchline is like, you know, he signed a contract where he just got completely fucked and he's like this is happening every single day in so many markets and so the
That then you have actually a different Market which disrupts something by actually creating transparency in something reasonable is all of a sudden completely immoral makes no sense to me. So there is abuse is happening all the time. That is what the contract that Chappelle's signed was indentured servitude. He doesn't even have the rights to his name. He cannot attorney's name and likeness, right? Yeah, he if you want to create the Dave Chappelle Show again. He's got to called the TV show but this is perfect. Somebody owns his name. What the fuck and this is
Be in all mediums and plot this graph. This is a perfect tie back to the earlier statement about you know, do you have the appropriate kind of understanding of the risk? You're taking or the benefit that you're getting? I think Kanye's been doing this whole thing about he doesn't own the Masters to his music originally right at the moment that he signed that contract when he signed over all the Masters, you know, Master recordings and all the future Revenue rights to his music. He was getting paid a ton of money in his mind at that time. He said, oh my gosh, I'm getting whatever it was. Let's say it's 5 million dollars.
I'm getting five million dollars most amount of money I've ever seen it is absolutely worth me giving over the masters of this music and the future royalty rights to this music for 12 songs or whatever. It is for me to get 5 million dollars today and I can live an amazing life. It will change everything for me who is to say that he was not, you know of the appropriate sound mind and understanding to decide in that moment to take that five million dollars and give up all future royalties to his music. Well Chappelle's Chappelle's argument was the people who are in that ecosystem.
Are all friends they're all working together and they've commoditized the artist and they collude to do this kind of people died limiting deals. And I think what makes Silicon Valley so special is that we collude the other direction. We want people to have Equity participation and we want the social contract of Silicon Valley is I'm giving you Equity. I hope your your penny stock becomes worth $1,500 and that you create multi generational wealth and you become an angel in but I don't know look if I
An angel investor or want to be an angel investor and some Schmo tricks me into investing in his shitty company and I just lose $20,000, but I didn't know how to determine whether that company was shitty or not because I've never done investing before read my book. Is it for the government to regulate that circumstance and say you know what you need to be a quote-unquote qualified investor to be able to discern a good company for a bad company or bullshit from not listening to testing for these contracts. Right? Like I mean, so, you know, we're making the argument I think for the you know, the regulatory framework for preventing people from being able to
Freedom of choice and I think like earlier, you know that the case was made like people should be able to make have freedom of choice at any point. Why should the government kind of step in and make it I think for me, I think that they're I'm not I'm not advocate advocating for government intervention. My only point is that there are morally reprehensible things that are happening today using contracts and that you know, something like an income sharing agreement actually writes the ship in so many ways that's definitely the burden of capitalism ultimately it'll it devolves to that right. We're like, oh you're
Sic, your give cancer pay me a million dollars. I'll give you this
drug. So Hollywood's a little bit of its own Beast where there's all these Gatekeepers and The Gatekeepers are always trying to get control over the creative product. And so yeah, like, you know signing contracts with those sharks is always a dangerous thing to do. I think Silicon Valley is very different. We have much more of a culture of equity. I think the income share Agreements are much more in that vein, and I think they're a great idea for like
Any trade that demonstrable increases your earning power, right? So the beauty of Lambda school is they pay for you to get an education being a coder it then increases your salary and they get a piece of that that's like a win-win for everybody. I think where this goes if these is a star successful is that every trade that's valuable will get its own is a type school and then that gets peeled out of a university education. So what's left for college?
Colleges to do is basically, you know all the stuff that doesn't add
value their museums. They're basically like these monasteries again, right? They go back to being monasteries not places where you get skills. We need to set we need to celebrate vocational capability because I think like, you know, we have we have so celebrated this mythical bachelor's degree and it just means fucking nothing. It's like it doesn't agreeable learn a trade and that's just this real frankly that should be as respected or more but in the American culture
You don't do that right now. I've never understood that if you go for example to different countries around the world Europe's a good example actually of this because it's the closest analog in terms of quality of living to America. There's a real celebration of people who choose vocational trade craft because there's an entire educational infrastructure that you can onboard yourself into you can become a skilled person and you can have a really good decent life and I'm not pride in the work and there's pride in that work and in America, you know you covered
At this piece of paper. The piece of paper is really just a scam that allows, you know administrators to basically pay themselves millions of dollars and or run in Asset Management business as a the Trojan Horse of that purpose. It just doesn't make any sense. And so, you know, I don't know it's I just think it's I just think the most amazing thing about these companies I've been digging into them because I'm looking for more to invest in and these company these companies that are based the
Tools that are based themselves on Isis and there are ones who are doing welding and plumbing and all kinds of different things and they are Aisa platforms that are providing Isis to any school that wants them and doing like the sort of AWS of Isis. Anyway these first what this firm told me was inside of one of these traits goes they spend 50 percent of their time on placement 50% on education and that a college they spend 99 point x amount of time on the education and less than
1% on placement which kind of tracks right? I mean we went to college. I don't know if it's changed much but the Career Services Center was like this to person office like in the worst part of campus and they don't when you're doing a nice up if you accept more people who are unqualified and can't aren't ready for the education or not motivated for it. It works against you because they're not going to pay back the Aisa. So you then get sharper, you know, you sharpen the blade of who gets accepted you start accepting the
People these colleges they would accept anybody who would come in and take the loans. That was your qualifier is did you pass your loan?
The ice is a service idea is a brilliant idea. Sorry, I would invest in that I like that idea as an investment way better than running one of these schools, you know that that's basically issuing the Isis themselves. But how amazing is that that we live in a country where people are willing to as a movement. Now people are willing to fund your education because they
Oh, it's going to increase your earning power and then they'll get paid on the back end. That's like fantastic and like that's all like happen at all that Innovation is happening right now without the government need to get involved or big government loan program and the historical getting saddled people aren't calling it an officer attitude
literally like the Vox is and the New York Times of the world and you've got to pay down you can never get rid of in bankruptcy for the rest of your life. Yes, I can go.
Real indentured servitude. I think the problem is that you know, East Coast left-leaning editorial Publications. They have to themselves justify their hundred ninety thousand dollar Bachelor Philosophy from Oberlin College. So, you know, if you if you took that you don't come up Oberlin is the number one listener base we have on this podcast. Yeah, you just lost. Yeah.
No, but you're right once you've taken out every valuable trade and and move them from a university where
You got to pay a hundred thousand a year to a nice aware it cost you nothing. Like what's left is going to be people study. Lots of people. Yeah,
Peter intentionality start intersectionality stand. They'll be studying the past. They'll be studying the best what a disaster the collapse upon itself. All right, as we wrap up here. Let's just take a moment to think about what some people are calling the big reset. It's Thanksgiving. We have a change in management the country which is
Is obviously polarizing so I'll put that aside but I think what's happened with these vaccines and science is truly miraculous and let's face it a lot of people as a lot of pain and suffering this year. A lot of people lost their jobs. A lot of people lost their restaurants. A lot of people are suffering from melted mental illness. Some people are having to take care of their kids and get to know them. I mean it's been hard for a lot of people. Sorry about that sex. I wasn't driving and you know your children's names now.
Yeah, I do now, let me
know what you like to spend three hours with
What have your children he's got flashcards in front of it right now the pictures on the back of every other side. So anyway, I was trying to
be sincere the kids would even occasionally run into my office during covid, you know? Yeah, they want to talk to you and hug you and show affection crazy.
Excuse me, sir. Who are you here? Father? Actually, I have a
I thought I was working for my office and all these kids show up and tell me it's their homes.
Well, we just want
Amounts to the all in audience that we have upgraded Friedberg and saxes chips just last week to Martha and I push the update for the joy 1.7 update and how's it been going to the two David's now that you have a third emotion, we now have emotion of joy not using for feels good and warm inside body. Do not use it all in same day spread it out over a month. Hey David, did you think that Trump actually resigned two days ago was that it was that
Was that the equivalent of a res like or the concession
tweet? It was acceptance of the Year talk about when they he authorized the GSA to release transition funds to buy it in. Yeah, I mean that that was his concession right there. That's that's basically what you're going to get out of him. That's his acceptance of the of the election
result. So after anger he is now when into bargaining and then he was depressed and now he's accepting.
Well what basically
It is, you know, you had Rudy and Sydney Powell and you know that legal team going to court to try and challenge all these rules The Wack Pack. Yeah the try to go to court to challenge all these rulings. I think Rudy was like one and 35 Min. I think he won one ruling and lost 35 so it was going very very poorly. So like you were today allocating go ahead. Yeah, but the thing that's a whole separate story will get into but but the thing that really like ended it was when Sydney pal came out.
With this elaborate conspiracy theory that actually Trump lost the election because communist code writers had effectively, you know infected this the software that was running the election and somehow Hugo Chavez was behind this even though he's been dead for seven years Hugo. I'm guessing and the and the Republican governor of Georgia and Secretary of State were in on it. Anyway, it was so wild and crazy that
Sickly The Narrative just cracked and so then you have like Steve schwarzman come out and then sort of the Republican business community and and Pat Toomey a Republican senator from Pennsylvania came out and they all this said look this is this is ridiculous. And so that was the moment I think at which the this narrative that the election was stolen kind of cracked as and I think she kind of she did everyone a favor by being so like off the reservation that I just bought the whole thing to like
Meltdown Sydney Powell, always whenever I see her I always think I just think that she's one second away from her Dentures flying out of her mouth and hitting the camera. I mean, that's your crazy aunt. That's the crazy aunt at Thanksgiving like she she said she
was going to release the Kraken and I guess she met the an extremely rude. He's I think it's the hair. Dye running down Rudy's face. Yes, exactly. That's the cracky thirties the crap.
I mean, I'm glad that
it was a total meltdown as a total shit show.
I'm glad the GOP.
Finally after Trump's defeat decided with 55 days left to go that they would take a stand against.
Well, let me let me tell you I got struck. What we do I think is going to happen now is I think that this New York Times article we talk about the top of the show about the fact this operation warp speed that I was a big success. I think that the best narrative for Trump if he wants to maintain this idea that he was robbed is not that he was sort of Legally Rob with fake votes or fake.
Make voting software, but rather just that if these Pharma companies have put out the news a week earlier. Yes, it would have me fully changed like and I think he has an amazing story there. I would agree with that. Yeah, and it's kind of like, you know, when you have like a major sporting event, there's like a bad call by the rest and all the fans basically said, oh we were robbed. Well, you can't get that like result overturned it is now it is you lost but you have a talking point forever that you lost.
I mean if you go to st. Louis or whatever and you mentioned Asterix, there's no there's an Asterix. Yeah, when they
suspended right moment, when the national LeBron Association suspended Draymond and that series
there are all these sporting events with aspects as by them. I mean like, you know, if you go to st. Louis and mention the name Don denkinger, you know, people will know what you're talking about. The I think the cartographers he missed the st. Louis Cardinals lost lady five world series because of the first base umpire is call or
least that's their view of it. Right? And so I think you know, what what Trump can do is is say that look we were robbed because we never got credit for the vaccine. Now if I do think the economy is going to bounce back really strong next year because of the vaccines right? I think you got to say that if these vaccines and covid in the next three four five months 2020 ones can be a great year. So if Trump hands bite in these vaccines and the economy does well next year but something bad happens.
Between now and for years from now he'll say I have a this guy everything on a silver platter you screwed it up and that'll be his narrative for four years. Now good could happen. I'm just
saying what do you what do you think about what do you guys think about the pic so far? Janet Yellen for treasury secretary is great. Thank God is Not Elizabeth Bernie Sanders? Yeah. I mean, it's really the party. Well, I do think really does. I do think the biggest challenge we're going to face is is this monetary
I see issue. I mean the dollar is you know in Decline we printed 30 percent of the u.s. Dollars in circulation in the last six months and everyone's cheering that the Dow is at 30,000. It's like well, you know this 30% more dollars so everything's going to inflate so I think there's a lot of work to do. It's great to have someone sitting in that seat who understands Economic Policy really clearly and the tide of monetary policy. I think you're perfect so far have been I've been really really top notch.
Blinken friend of a couple of hours for Secretary of State he's a star yellen's a dove which I think is really good for just you know, did you guys know the chief of staff's Acts? Do you know who this guy? He's been like by that's it for a long time kind of is that the deal? All right plane. He's the founder of Revolution with Steve case. Yeah, he comes from a
venture background violence pics have been people who have been long time washing the hands. He's had personal relationships with for a long time. He really seems to value that personal loyalty.
The and they've also been kind of, you know, nice and boring safe because she has passed. I think he's delivering on kind of what he promised to normalcy which is present we can forget about
it and just tell tone tone it down. That's
it may be a caretaker
president. Yeah, what do we do without Trump to talk about in this podcast? Because it's been about 34% We're going to need a new topics to rotate in here. We might need to put in little Netflix as we wrap up here. What do you thankful?
For and what are you most looking forward to next year vis-Ã -vis just it's been a rough year. I mean unless it's been nice for people's Equity portfolios, of course, but it is really what do you hope for America for Humanity for yourselves your family for friends? You know, what do you thankful for and I'll let you Freiburg. It looks like you're processing unit has delivered a result. So let's hear it. The emotion bank has been cleared.
It's I look I don't think that this year was any
Any cup of tea for anyone so I think like everyone you kind of value your friendship and your family. So it's it's been it's been a year, you know going into covid. I was in the office everyday spending more time at home being closer to my children. I know their names by the way sex, I'll teach you how to learn them there. It's been it's been actually really special being at home a lot and being with the family a lot and realizing like how much that stuff matters and how being close to everyone matters because when you're in the run of the life before you kind of get knocked back and just put everything in
Effective you miss those moments. So that's been really special and important to me that's here in a really kind of personal way and just having friendships. Right? I mean it's great for us to all be able to talk as we do every day and have people you can kind of connect with even if you're not sitting in person. I do think that everyone realizes they need that. So anyway, it's been a spin-out insightful year money aside its yeah, I was fucking terrorized and it started this year about money and the end of the year. Here you go. Finally it is don't fucking roll.
A coaster sold the first company and I got the second one might be on congratulations Mazel Sachs has your processing unit overloaded with this question or are you going to be able to
articulate thank you for and I appreciate I agree with all these of Freiburg said, you know the flip side of working from home all this time as you do get spent a lot more time with the kids. I personally have I like this shift to remote work where I can do a meeting from anywhere, you know, you don't have to go to the
First that's been kind of kind of nice upside. I think I think we probably all learn how self-sufficient we can be. I have learned how to give myself a haircut. Apparently, you guys don't think done a very good job with it, but
what's better than anyone here? Yeah.
So yeah, but look, I mean I'm thankful for you know, knock on wood. We all have our health and you know and weirdly the the
Ami silicon Valley's doing still doing great Technologies doing great still the future and I think the country is even though covid is kind of at its worst right now. I do think it's going to get rapidly better as soon as these vaccines come to Market. So I do think will work. I do think 2021 will be a much much better year
shimoff.
In this really crazy way. I actually now am pretty thankful for what I've learned during the pandemic. I mean, I wish we didn't have to go through it. But I think that it was the most psychologically stressful period of my life just to be so isolated from everybody and I learned something about myself recently, which is that
In Psychology, it's called repetitive compulsion, which is sort of like, you know, you repeat the sins of your father or in this way, you know, I repeat these tired ways of behavior from my teens and my 20s that were just unproductive and in the day-to-day life of just running around and going to meetings as David said like flying around go to a meeting go to the office go here go there. You can make a lot of excuses for shitty behaviors that you carry with you.
You and so what I'm really thankful for is in this lockdown. I've been forced to really find the things that I don't really like about myself and try to fix them. So, you know, I'm really thankful for that because I think hopefully everybody has something positive to look at it the end of this and that's definitely one thing for me. That's very touching and actually quite appropriate as we wrap here because sax and free broke and I had some things we don't like about you Jamal that we wanted.
Ha ha ha,
it's good. You're doing this work?
It's good or bad shit for this add to the pot. But you kind of open the doors. So here we go, you know, I'll wrap up with you're saying, you know family and friends are the obvious, you know things that you appreciate at this time. I am thankful also for the hope that we've seen from
um, you know, what we can do collectively as a society when we put our minds to something warp speed comes to mind these Frontline workers. I mean, we really maybe have seen what a global recognition challenging problem being solved can do and hopefully that can translate into something like nuclear disarmament a sustainable energy global warming Etc. And so I think on a macro level the most macro level is the species us humans as a species have now had
Enlightening moment just like world wars and you know Hiroshima and Nagasaki kind of change people's perspective of the entire world Jay and I were talking about that the other day how people look at the world differently after those horrific bombs went off. I think after this bomb goes off. We're going to look at the world and say, hey we can solve problems right and maybe we can be proactive about that. And then finally I think for the people suffering from mental illness who maybe I was callous and made fun of or maybe just didn't relate to I can relate to now.
Because I felt depressed I have felt anxious. I have felt exhausted from this right and it's the first time in the 49 years. I've been on the planet that I ever would say. I felt depressed. I didn't understand what that meaning was. When Sachs would tell me how depressed he was. I just never never hit me. I'm joking. He never said that but is a good joke. I am joking, but I you know, I think for people suffering from mental illness get help and you know talk to people and I think this really opened my eyes to that and of course this podcast
You know and our first podcast is the best thing that that in one of the best things in my life that came out of this whole period I think for me too and you know, I've heard that from a lot of the people who listen to it and I'm sure if sacks and Friedberg had a fourth emotion they would they would agree
frankly. I think this podcast has been doing nothing but costing me money,
you know, because I hated you have to Trump
supporter knows how many deals I've lost because Jason
I thought at least I'd get this bestie deal and you guys cut me out of it.
Okay? Listen, I just want to be clear.
Sax is a conservative and a republican. He is not a trump supporter who did not vote for Trump. This time did not vote for Trump last time. He does not support Trump his behavior. You can tell what he's voting dude. Sorry, but he told in a vote for him. Well, he did which one which one of us, which one of us is going to try to hire Jared Kushner as a general partner. No, definitely not if you are saying most likely because now you're reinforcing the beam, that's a key. If you had to pick actually if you had to pick a venture fund that is most
A higher during Center as a GP Andreessen Horowitz quadrant anything for are they still around Founders fund? No, I don't think Peter wants to share the spotlight. Okay, I go Andresen, they'll do anything to get a press release.
I don't think that guy needs a fun to go work at true. You helped us go by
another he did get three Middle East peace deals done. So
but you know who's gonna be attacked by the way, by the way, I mean talk talking about inheriting incredible dividends, but is it the most incredible thing that you can come in and get Middle East peace done, but with you really unpacked Middle East. Peace. Do you think that middle east peace would have happened if the cost of solar was not cheaper than the cost of
Odyssey pbbt like if if you if you didn't see an end in sight to oil do you think that the Middle East peace? I got that thing. I don't think so.
Well, I know what you're saying, which is that if the Middle East wasn't becoming less strategically relevant to us, you know, that that creates degrees of freedom. I think but yeah
that's had profound benefits for Silicon Valley to write like I mean all the stimuli that went into the vision fund and the money from Qatar and the money from
I call these Sovereign wealth funds in the Middle East has funded a lot of venture funds has gone into direct late-stage rounds and a lot of companies and it's really been a great Boom for Silicon Valley people can make fun of the company's getting overfunded the nonsense. It's gone on all they wanted like my you're right kind of that. He's it filters out into more Angel Investing in filters out the more Venture LPS and It ultimately gives a more Innovations ecosystem. So I think that the damage to oil has been great for Silicon Valley the most incredible dividend of climate change is peace.
Like its it is made radical Islam a failed startup, you know, a hyped series a That Couldn't raise it series B. It's made, you know, sworn enemies over thousands of years cooperate together all for what reason because you got to pull the oil out of the ground now and monetize it because otherwise the cost of wind and you have observers older. Yeah, and you have to diversify because otherwise the cost of winning the cost of solar is going to make pulling the oil out of the ground economically infeasible within three or four years.
Ears. Yeah, I mean you're like they started selling off the shares and they invested that capital in Tech and other stuff around the world and
that's it's been helpful. But there is there is a another Factor at work, which is the fear of Iran is now greater than on the part of Saudi Arabia and Israel Their Fear of Iran is now greater than whatever mutual hostility that used to have and so it's it's kind of bringing people together that way but
Give
Crystal credit for still getting those deals done. You know, no one thought he could get do it. I remember I was walking him. I
agree. It's not a moron and he's not an episiotomy the opposite of an abrasive guy and he's very thoughtful and apparently very venomous you guys know personally, but I suppose to be very smart. I'm sure that wherever he ends up next he's going to do very well and he's gonna get invited to be in a lot of places. Yeah. No, it's clear. He did a very good job on the Middle East
stuff. Yeah, by the way, how crazy is it that Trump delivers on
on hottest economy ever peace in the Middle East and three vaccines for Coronavirus and he still lost
who would as well just go to tell you what people think of character. Yeah characters yourself to eat. But he's a little sad if he acted normal sax, he could actually take those victories if he stopped the personal attacks if he stopped the grifting he would have won he could he could have been he actually it would have been more than one if he even Raymond if he could exactly
I was thinking if he came in in 2016 calm cool and collected with the team where there is a dial down the insecurity and dial-up sort of the intensity of actually calling people out for not passing Progressive change. He would have been elected in a landslide people would have said well on the way in we were afraid but after four years the guy I'm gonna be magnanimous is what you're saying. Yeah, and it's a real missed opportunity for him. I still think much of trump is he's a WWE Superstar and that's what people
voted for its why Jesse Ventura got elected governor of Minnesota. It's like Arnold Schwarzenegger got elected governor, California the average, you know person that's looking at that guy versus you know, the old dude that doesn't talk and you know saying some weird stuff about policy. It's like, oh man, that guy looks awesome. Let's put him in office like this is gonna be fucking fun. And if he turned it down when he got an office, he'd be much less appealing I think to a lot of people I think well, then it's the attack carry my caricature of himself that makes him so so appealing then I'd like to go
Like to go on the record with my 15-year projection then or which is that the rock is going to run for president. And well, I think you know the Iran situation just to put that in perspective David if you look at the age distribution on the chart, I just put in the chat it is just extraordinary how young that country is the median age is I think 28 or 29 years old and they're barely holding on to power there and it is going to flip into a much more.
Aggressive Society than it is now. They are barely holding on when you look at how many 25 year olds and 30 year olds are on that country who are drinking and watching TV on the internet projects and you have the internet and they're watching porn and they're gambling. I'm sure and buying Bitcoin and doing all this crazy stuff. That country is barely holding on it's going to be a crazy Civil War and let's just hope they don't have nuclear bombs when that Civil War a guys guys guys, like being being like extremist. It's just like it's just a
Product Market fit now, you know, it's just like not worth it. There's there's no money to fund it. Nobody cares that much anymore. Everybody's moved ompf score. Yeah, would you recommend extremism to a friend or family member to all right. This has been another all in podcast for bestie. See the Rain Man David Sachs and the queen of quinoa on his coming out party today IPO coming up for
Rome I'll congratulations to Friedberg. Congratulations to Jim off on the pipe sacks and I we're going to have to figure out a way to lick our wounds and wet our beaks with for thinking caps on and over the break find a deal we can exclude these two from we got it. We got to get in early get 30% of a company and then we got to have chip mouth SPAC it in Freiburg do the late stage deal with all this Metro mile money and we'll see you all next time on the all in Pakistan. I was fucking great best one yet. Yeah. Yeah. Yeah.
I want to see something funny. You guys see that video my wife just send me that's my dog. Take it at shit on your driveway sex. Well, yeah.
Oh man.
Where is it? I want to see that douche. I just put in the code 13.
Oh my God, you've one person who hasn't code thirteen two sacks mocking you take a
shit on his model X. Oh my God, that's unbelievable. Have code
13 boob. Oh, no everybody.
We rolled over the credits.
