What's up everyone? This is Alex Lieberman, co-founder and executive chairman of Morning Brew.

Welcome back to Founders Journal, my personal audio diary, where I give you the business builder,

the tools you need to think better in order to build better, whether that's building a business,

a team or a new product. Today I am talking about Elon Musk and Twitter. This is going to be a fun one

regardless, but it's especially fun if you haven't heard the news yet. Let's hop into it.

So Elon Musk is making moves. If you didn't see in the last two days, Elon officially bought

9.2% of Twitter stock, I believe it's 73 million shares, making him the largest shareholder in the

company. For reference, Jack Dorsey, co-founder, former CEO of Twitter, oftentimes considered the face

of Twitter. He's also, you know, the co-founder of Square. He has 2.3% of the business.

Now, before we get into the meat of this, it's important for you to know that Elon is technically

a passive investor in Twitter, because he owns less than 10% of the business, 10% is generally

considered the threshold at which someone is either an active or, quote unquote, activist investor.

And to get into a few of the specifics, there are basically two forms that an investor fills out

when they buy a big stake in a public company. There's the 13D and there's the 13G.

13D is for people who take active investments. Generally, you have to fill out more paperwork,

give more rationale around the investment. 13G is for passive investments. Guess which one

Elon filled out? He filled out the 13G. Now, there is obviously speculation that Elon is not going

to be a passive investor, but he has gone about all of the motions as if he is. So put a pin in that,

Elon filled out the 13G, quote unquote, passive investor in the business.

On the news that Elon bought 9.2% of Twitter shares in the company went up as much as 29%,

and for reference, Ben Thompson, who writes the newsletter Stratekry,

he has this great, basically, mental model that he's come up with, which is the Elon Musk effect.

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