This month, we explore Elon Musk’s history with Peter Thiel, the ongoing monetization of AI, and the comforting fact that even Warren Buffett had moments of panic.
#1 – “The Contrarian: Peter Thiel and Silicon Valley’s Pursuit of Power” by Max Chafkin
“The experience shook Thiel, who came to see Musk as reckless; Musk saw Thiel as a money guy who cared about technology primarily as a means to profit.” – Max Chafkin
It was hard to pick just one quote from this book. Peter Thiel and Elon Musk are two of the most important figures in today’s investing landscape (especially with SpaceX filing to go public in the near future) and it was fascinating to learn about the 25+ year history of their relationship starting with their work together at PayPal.
#2 – “The Infinity Machine: Demis Hassabis, DeepMind and the Quest for Superintelligence” by Sebastian Mallaby
“I’m talking about the biggest invention ever. And they keep coming back to, ‘Where’s the widget?’” Hassabis recalled of the discussions. “And I’m like, ‘It’s going to revolutionize all widgets, so I can pick you a random widget if you want me to, but you obviously haven’t got the point if you are asking me this.’”” – Sebastian Mallaby
I strongly recommend this book for anyone interested in learning about the history of AI and the people who are leading many of the largest AI companies today. This quote highlights one of today’s most important debates around how and when AI will be monetized to provide a return for companies and investors who continue to pour billions of dollars into an obviously powerful technology that largely still lacks a clear business/investment case.
#3 – “A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market” by Edward Thorp
“Warren Buffett, who had better information and insight than almost anyone, later told The Wall Street Journal’s Scott Patterson that at one point he was looking into the abyss and considering the possibility that everything could go down, even Berkshire Hathaway.” – Ed Thorp
I was encouraged to know that even Warren Buffett (the best investor ever!) had moments of doubt during the 2008 financial crisis. One of the best lessons we can learn from Buffett’s investing success is that carrying extra cash provides staying power and optionality if/when stocks go on sale (though the drag on long-term returns must be managed) and this approach enabled him to make some of his best investments during times of crisis.
My goal for these blog posts is to provide useful information so that you can make more accurate decisions.
- Noise includes facts/data/news that cannot be processed into useful information (<— WHAT MOST STUFF IS)
- Useful information can be used to make more accurate decisions (<— WHAT I’M TRYING TO PROVIDE)
Since there is an endless and ever-growing amount of things to learn, I hope that these posts are helpful in summarizing important topics related to investing.
Sources
Chafkin, Max. The Contrarian: Peter Thiel and Silicon Valley’s Pursuit of Power. Penguin Press, 2021.
Mallaby, Sebastian. The Infinity Machine: Demis Hassabis, DeepMind and the Quest for Superintelligence. Penguin Press, 2026.
Thorp, Edward O. A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market. Random House, 2017.
