Ep11. Coatue Conference Recap, Tesla & ISS Controversy | BG2 with Bill Gurley & Brad Gerstner
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- Опубліковано 12 лип 2024
- Open Source bi-weekly convo w/ Bill Gurley and Brad Gerstner on all things tech, markets, investing & capitalism. This week they recap Coatue Conference and discuss Elon’s pay package, Tesla's shareholder vote, ISS controversy, AI market trends, OpenAI IPO, Delaware court case, and more. Enjoy another episode of BG2.
Timestamps:
(00:00) Overview of Coatue’s East Meets West Conference
(5:05) AI and Market Trends
(18:17) Insights on Venture Markets and IPOs
(24:15) Challenges and Opportunities in Going Public
(30:05) The Case for OpenAI Going Public
(33:03) Challenges and Considerations for IPOs
(35:55) SPECIAL GUEST: Coatue Founder Phillipe Laffont
(39:27) AI Startups Staying Lean
(42:31) AI Agents and the Future of Work
(45:28) Tesla's Shareholder Vote and ISS Controversy
(50:57) Delaware's Legal Precedent and Corporate Implications
(58:27) Globalization and Competitive Advantage
Available on Apple, Spotify, www.bg2pod.com
Follow:
Brad Gerstner @altcap x.com/altcap
Bill Gurley @bgurley x.com/bgurley
BG2 Pod @bg2pod x.com/BG2Pod - Наука та технологія
I already own shares of TSLA, NVDA and APPL as well. Sure, I don't mind having these equities sit around for a while, but I'd also like to appreciate short-term opportunities that could fetch $200,000 or less..
If you need advice on short-term investments, consider speaking with a financial advisor. They have a lot more knowledge and expertise in this area.
Agreed, this is why i now work with one. I’ve been investing by myself in the market for 11 years now, but the last 6 years is with the help of a financial planner. Throughout the 6 years of guidance alone, I've been fortunate enough to 10x my return as a DIY investor, summing up nearly $1.4m roi as of today.
She's known as a 'Angela Lynn Schilling'. One of the finest portfolio managers in the field also widely recognized. Just research the name. You’d find necessary details to work with and set up an appointment.
finally Bill Gurley with good audio 🙂
so true! come on Bill.... or maybe the frumpiness is the appeal.
Bill Gurley is such a smart giant lovely guy.
I love being a fly on the wall with these two every week!!
BG2 keep getting better and better. Whilst All-In gets more political, it's refreshing to proven minds speak unfiltered about business, tech and economics. Strength to strength fellas 👐
They were political, too. You just didn’t listen closely enough.
I cannot emphasise enough, just how amazing this pod is. Thanks for all you do to bring this to us BG2! Means a lot and it’s great to hear your opinions on a wide variety of topics. Hope you keep it up! 🙏
Such amazing content. Thank you gentlemen. Don’t tell UA-cam but this show alone makes it worth the price.
This is an incredibly insider conversation. I applaud Brad and Bill for bringing it a wide audience of people who would never be able to attend an event like this.
My new favorite pod! Thanks for sharing your insights with us.
You guys are absolutely brilliant 👏
This is my #1 pod. Keep em coming!
Best BG2 episode yet! In fact, it was simply the best thing I've watched in tech & biz podcasting all quarter 👍
Thank you for taking the time and effort to share this ! Incredible insights
My favorite episode so far. And I love the idea of stopping vilifying China. What a revolutionary idea, more important voices coming out with it now. Gives me hope.
Please do these together as much as you can! Love the height differential 😂
Thx so much Bill and Brad for this pod. It’s incredibly helpful for us retail investors. Thank you
No question that Bg2 pod is my favorite pod right now. I always get excited to see a new episode and feel like I pick up interesting/valuable insights every time. Really appreciate you guys taking the time to do this.
Invaluable insights esp on the state of VC market. Really enjoyed listening to the back and forth. No way for us retail investors to get this level of insight otherwise. So Thank You!!
Terrific discussion. Many thanks for allowing us in on the discussion 🙏
Great pod, thanks for timestamps, so we can focus on the sections we love the most
Love listening to yalls conversations. Thanks for the access from small town va.
Bg2 LFG baby !!! love this pod
As always, Excellent content and discussion. While not obvious from the outset, Bill and Brad in the ISS discussion outlined yet another reason why companies are staying private longer. SarbOx, SEC, NASD, NYSE, ISS, Glass Lewis…the list goes on for public companies. Much less “regulatory” overburden on the private side.
Great stuff as always!
Thanks, guys!
Would LOVE to see your talk with Larry Summers.
Great insights from coatue conf
Another great show
The fact that
BG2 Pod
All In Pod
&
EPD Research
Are all free... What a world we live in.
EPD Research?
The in person pod is wild
I love the intro tune 🎵 feels fully Texas style beats
Love this Pod. A true tech and market discussion….. I recommend this to everyone interested in tech. It’s like the all in pod 2 years ago before they turned into FOX news.
anyone know where to find Bill's speech about evolving with our tools? from 20 years ago
Huge!! Best show. Satya is going to the moon
Does anyone have the slide deck from the conference?
as a reminder to everybody the best pod on the planet
Microsoft owns 49% of OpenAI so if they do go public one way to participate is just own MSFT shares. Satya has done well for his shareholders.
What mics are you guys using? Sounds great!
Anyone know what kind of mics they are using? I like the quality of the audio.
Very curious what Brad’s interest is in OpenAI going public. I suspect benevolence towards retail investors isn’t the primary motive.
Ofc these VCs want more IPOs.
The reason people answered "we're in a bubble" is because they missed out on NVDA and other AI companies!
I wish I could be this close to Bill
Does anybody else get the feeling that Gerstner never stops talking even to himself? Even in his sleep? He's just talking cuz he loves to hear him self talk.
He is like the host of the show, bringing up new topics and laying the foundation of a discussion. Bill's job is to react and expand upon the new thesis.
On the Musk compensation lawsuit an alternative perspective could be the following. If there is any penalties ruled, than it is a precedence that what of the best performance in recent history deserves zero compensation for the CEOs. Then every company could be sued as any CEO compensation would be too much. You find some lawyers, buy 9 shares of any Delaware company, sue them, then split the CEO compensation stollen this way. Isn't it ridiculous that this can even be considered?
How could the state of Delaware allow a one of their judge's to single-handedly EFF over one of their top economic sectors?! Wild.
What guys didn't mention, is that Delaware has significant tax advantage, watch Patrick Boyle video on a topic, it is not that simple.
If I can join we can be BG3.
I won’t bring as much value but can provide color commentary on behalf of other normal BGs.
Wonder if the possible disfunction at the sec ftc Delaware courts could be holding back ipo’s?
Can we plebs get access to any of the Coatue panels?
🔥
Can some one tell me the intro music ? what is it ?
Is it me or did Bill somehow take 15 years off his appearance?
Who is Phillip, Brad was referring to him around 11:03
How does a company solve the problem of irresponsibly allocating large amounts of employee-based stock compensation? You've shown some great charts in the past of companies with astronomical amounts of outstanding employee-based compensation and mentioned they need to solve that problem because it is a bad business practice that screws up balance sheets; a view point supported by Warren and others.
42:08 One word: Lacework.
big dogs in the same room!
pdf link?
interesting
55:14 surely Gurley isn’t taking a dig at Culp? Immelt right?
how tall is brad gerstner? like 5'4? genuinely curious
Claiming that so called retail investors are being disadvantaged is very disingenuous with a lack of access to ipos. Most IPOs are poor investments and are just great selling opportunities for VCs and founders.
While what you say is statistically true, a tech company worth 100 billion+ like OpenAI should be public. Also, isn’t the onus on the investor to separate the wheat from the chaff.
Why does taking a larger and higher priced round as a private company affect going public or selling? It would seem if the business is actually good, then both can still happen.
Because companies can’t IPO at lower valuations than their last round. That would be a kick in the face to those private investors who stand to lose money (some of whom may own significant portions of the company). The same is true for selling privately.
If the business is exceptional, sure. But the VC market in 2021 was bonkers, and most non-AI companies aren’t worth anywhere near what they were then.
@@golfinguru11 Sometimes the VCs and private investors overpay in a round just like anyone can in the public market. A good company can still go public and be successful even if it IPOs below the last round.
@@stevec1996 the difference is that these investors, unlike average public market participants, often own a significant percentage of the company and therefore have a lot of say over whether their companies go public.
Love the tractor oxen statement. 99% of the workforce that used to work on the farm are now doing other things and some are software engineers. It keeps moving on as we get better tools.
Great pod guys. Your pod is becoming a must watch. I for one am all in. (Also all in on All In).
Do you believe those rural communities are better off now than they were then? Lol
@@golfinguru11 yes absolutely and relatively
Lol
Judge--GPT can't happen soon enough.
It's the same 3 topics in every show
Perhaps the majority of returns in 2025 will come from IPOs of US AI and Chinese EV companies.
Bill, I don't get that the number of IPOs is due to bankers not willing to bring companies to public. Shouldn't we be discussing how we get real money to play smaller deals with less liquidity? Is Brad willing to put his money behind a smaller/less liquid IPO?
The current venture capital model is completely broken. Early stage, risk capital needs to be completely re-invented.
Has Silicon Valley always been this economically conservative? I get the self interest (more skilled immigrants pushes wages of Americans down, business owners see nearly all of the benefits of more trade with China, etc) but this is unabashed…you’re saying the quiet parts out loud and nobody is batting an eye…
These guys aren’t running for office anytime soon. And they’re venture, removed from direct consequences they fire from the hip
@@spartaleonidas540 I guess so. On one hand, I appreciate the candor. On the other, their incentives are deeply misaligned with the average American. I don’t understand why more listeners aren’t pushing back.
Travis say hi
A lot of big companies around here are rolling back all the ai investment, training, and money spent past two three years. They are rolling it back and getting rid of ai systems. Even Walmart is rolling back ai systems. The censored LLMs are kinda useless. People highjack the investment cycle like the humane ai pin and rabbit device hell even Microsoft rolling back recall and other features. It’s gimmick to suck money outta the vcs
Love the program. Could you do a deeper dive on software stocks, specifically Snowflake, Salesforce, and Service Now? Bill, China is an authoritarian state, which does share our values and may very well invade Taiwan. How do we reduce our vulnerability to a country that we may very well have a military confrontation with? Moreover, they don’t always play by free market principles.
VCs always say that displaced workers will be "consumed in another task." (Interesting choice of words by Brad.) It's often BS.
Brad must slow down a bit… 😊 the poor BG must be hesitant to pause him for a proper convo.
These guys are monsters
The green cards for university graduates was implemented in Canada, and a bunch of degree mills popped up so unskilled immigrants could game the system.
You're completely wrong about Delaware, it is not about history, there is also substantial corporate tax advantage for Tesla. If they move to Texas it will open even more lawsuits re fiduciary duty, because now Tesla will have to pay more tax
what weirdo editor cut out your laughter at the joke.
Samsara?! Really??!!
Love this podcast and always learn a lot. Please keep up the good work and keep politics out of the discussion (why I stopped listening to All In)
Thanks Brad and Bill
The only thing that's true about the entire tech industry right now is that no one knows shit.
I'm so glad you guys started this pod! I unsubscribed from all in cuz of all the trump ass kissing and this is exactly the insights into the tech industry I'm looking for. Thx!
Mate you spoke my mind 😂😂 as if you were reading my thoughts. I was about to write the same comment.
You, too? 😊
The political pivot eroded a lot of the value for me too
TDS for all of you 😂
Why didn’t Brad or Bill engage with the actual arguments made in the judgment against Elon’s options grant? I assume they’ve read it.
This conversation would’ve been much more interesting if they had, for example, discussed whether they thought Tesla’s Board was actually independent, and what good governance looks like at public and private companies, especially when dealing with a controlling CEO/Founder.
Instead, we got the suggestion that a rising stock price is proof of good governance (it isn’t) and some vague criticism of Delaware and ISS as somehow anti-business or anti-shareholder (they aren’t).
Maybe the problem here - like the All In Pod - is that these guys are themselves not independent of Elon Musk and so anything they say about Tesla or SpaceX etc. should be taken with a giant pinch of salt.
I’d be surprised if either of them read the judgement and are informed of the reasons the compensation package was rescinded. Otherwise they would have at least partially addressed the judge’s findings that the board was not independent and did not act in shareholder interest in the process of creating the compensation package.
I’ve found the Prof G Markets pod to be a good antidote to this. Galloway has issues with these guys and isn’t afraid to throw it down - he spoke at length about the judge’s ruling and why Elon is wrong. Even had a corporate governance law prof on to explain it.
There is nothing wrong with corporate governance at Tesla. They are a wildly successful enterprise and Elon deserves to be fairly compensated for his efforts. Elon has brought tremendous value to Tesla and shareholders have been rewarded handsomely. To suggest that corporate governance is an issue at Tesla suggests you are ignorant of the purpose of capitalism which is to create value in a marketplace and drive returns for owners of the enterprise.
@@Zaerki Tesla’s stock price is down since November 2021. Revenue growth, profitability and operating cash flows are all down. In that same time the CEO has acquired or founded 2 other businesses, both of which have taken time and resources away from Tesla. And you don’t think there’s a governance issue?
@@golfinguru11 I like ProfG too but he is a total clown when it comes to Elon and Tesla, pretty much a decade of being completely wrong. That our country is so busy trying to bring down an innovative company (while turning a blind eye on, for instance vaping companies, or diabetes slinging junk food companies, or drug companies who have bought the regulators, on and on) is a sad state of affairs in the US. Really a bunch of negative sad ppl who dont realize that China is eating our EV market lunch.
Just dont buy the stock if you believe it is not correctly governed.
Less macro analysis, more business model analysis. Less talk about the macros and market structure, more talk about revenue, fcf, margins and capital allocation. Too macro.
This is one of the least interesting BG2 episodes. Y'all can do much better.
This is where the All-In crowd will migrate to after they get tired of the politics
These two are so awful compared to the All-In gang.
BG2 keep getting better and better. Whilst All-In gets more political, it's refreshing to proven minds speak unfiltered about business, tech and economics. Strength to strength fellas 👐
All the hate to All In 🥱