🇩🇪🇺🇸 Peter Thiel just pointed out a pretty brutal difference between America’s young wealthy and Germany’s.
Looking at the 50 richest people in each country who are Gen X or younger, Thiel says 9 of 12 Americans made their own fortunes.
Germany? All 20 inherited theirs.
“Not a single person did something new, made some new money, built a large new scalable company.”
Germany isn’t running out of rich people. Thiel thinks it’s running out of people getting rich by building something new.
Writer: Lynn
Yes there is a big gap always between what the market returns and what investors take home themselves because of behavioural aspects.
But this is reality and that is the way human beings are.
No human being is a rational actor permanently. In fact when it comes to money, most are not.
Then what is the point of pointing out the big gap in returns between laboratory conditions and the actual battlefield returns , when in the actual battle fields, most will have exactly the same behavioral pattern.
Are equities , then , indeed the right asset for people, given this behavioural aspect which is real and present in the vast majority?
Let's all take a moment to understand how self-serving it is for OpenAI, Anthropic and other execs of big hyperscalers to talk of slowing things down.
1. LLMs are not AI and won't be AGI. There is nothing AI to slow down.
2. Competition is coming up fast, slowing benefits incumbents.
3. IPOs need hype & puffery; "we are so awesome it could become dangerous" is hype & puffery
4. Cover for real uncontrollable slowing growth as IPOs look to be pushed out