Chamath Palihapitiya – The Major Problems Facing the World – [Invest Like the Best, EP.211]

Invest Like the Best

Podcast Notes Key Takeaways Chamath sees inequality as the biggest risk to democracyHis solution? Teach people about the importance of saving and investing “I think the key to peace and prosperity today…is to close the inequality gap and to close the inequality gap is to show people everyday normal people, how they can earn and save and invest and be a part of capital, not just be a part of labor.” – Chamath PalihapitiyaThe 3 biggest issues Chamath is trying to fix: 1) InequalitySolution: Help people become part of the capital class by having the government invest $2,000 into the market when they’re born2) Climate changeSolution: Create environmental security so people have access to water and a plant-based diet3) EducationSolution: Instead of having students rack up $120,000-250,000 in student loans and then graduating with no meaningful chance of employment, a better alternative to student debt would be an ISA (income share agreement) Chamath shares his one-page thesis on his investments to show people that being smart doesn’t always require complexity and to give retail investors a chance to invest alongside him  The biggest reason why Chamath loves about SPACs is that it gives folks who can do the diligence themselves, the chance to get into an IPO book which they otherwise would never get the opportunity for“It is the single most powerful way to allow normal, ordinary folks to cross the chasm between labor and capital’ – Chamath PalihapitiyaThings Chamath would change if he were president:Introduce a carbon taxCut personal taxesRaise corporate taxCreate massive incentives to rebuild an entire economy that’s focused on climate change, technology, and biotechnology

Read the full notes @ podcastnotes.org

My guest today is Chamath Palihapitiya, the founder and CEO of Social Capital, whose mission is to advance humanity by solving the world's hardest problems. I didn't know where this conversation would take us given Chamath's wide-ranging activities and interests but I think it provides an interesting glimpse into some of his core beliefs and the source of his drive. In our wide-ranging discussion we cover potential paths to closing the income inequality gap, how to manage one's personal psychology, his perspective on "value investing", and tackling climate change. I hope you enjoy my conversation with Chamath Palihapitiya. 

For the full show notes, transcript, and links to mentioned content, check out https://www.joincolossus.com/episodes/33654465/palihapitiya-the-major-problems-facing-the-world.

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Show Notes

[00:03:13] – [First question] – His experience with debt and how he approaches personal finance

[00:09:13] – Attacking the problem of perpetual income inequality

[00:12:06] – Reaching the right people to fix the problem

[00:15:04] – A for profit business to solve the problem of income inequality

[00:19:18] – Traps he has beaten and hasn’t beaten in his finances

[00:22:15] – Chamath’s focus on family, friends, memories, and legacy

[00:25:01] – Big issues of our time; inequality, climate change, improving education

[00:29:28] – Lessons learned from Social Capital 1.0, allocating funds for himself and others

[00:32:33] – The balance between data and the qualitative analysis of companies

[00:35:26] – Insights into businesses beyond the investments he makes

[00:40:29] – Absurdities in the value investing style

[00:43:32] – Benefits of SPAC investing and opportunities for late-stage entrepreneurs

[00:45:06] – Traits in managers that he invests in

[00:47:20] – What he’s learned about combatting climate change

[00:51:40] – Thoughts on the supply chain, specifically as Americans

[00:54:35] – Company life cycles and innovation

[00:57:15] – What is most broken in the capital markets system

[00:58:58] – Fixing healthcare

[01:01:36] – Fixing climate change as President for a day

[01:02:06] – Messaging effectively

[01:03:14] – Is he a “main character” in the investing world

[01:04:06] – Tweeting a picture of himself as a kid

[01:04:42] – Kindest thing anyone has done for him