George is talking about companies whose high valuations feed back into the business, helping them hire, raise money and keep loyal shareholders. He is relaying someone else's rule, and adds that the inverse also holds: such companies can trade very high.
even like a thing, right? And, you know, but like the big thing, obviously, they have to do that. A lot of people don't
even really know what Palantir does. Yeah,
yeah, for sure. Like, including like big holder retail holders of the stock. Like a friend of mine who has a huge position and like, explain it to me. And he's like, good vibes. But what has happened, right? Like, they're massively accelerated in commercial and they are now seen among CEOs as like a trusted place to go implement your AI. So it has actually given them a direct benefit on the commercial side because they're seen as like the ones that will navigate the situation for you and they're trusted. The valuation is a huge benefit for them. And then it's massive for them retaining and hiring employees. Similar to the Elon companies, like Elon, obviously having a big valuation allows him to have a bigger war chest, to buy companies, to raise more capital, to have loyal followings. So you can look at like the high retail ownership stocks, and there's like a correlation, if they're doing well, a correlation to the valuation. It's funny, I heard from a hedge fund guy this theory on shorting stocks. And his theory on shorting stocks was: I never short a messianic founder and I never short a product that people love. The inverse of that is if you have a messianic founder and there is a product that people love, you can actually trade very high and have all these benefits, right? Right now in AI, obviously you said why the capital side matters and valuation side matters. It is incredible that the whole market is like hanging by a thread on the performance of like two now kind of three private companies on like a monthly basis.
I was just thinking as you were talking that the narrative, however strong the narrative is now, the importance of it all is about to go like hyperbolic as these companies get public.
Yeah. And you can even see
it, you know, there's this funny bit I mentioned to you of, you know, you can see investors and people who are on the opposite side kind of jockeying about like trying to set expectations around these companies. Oh yeah,