Hey Carl and Morgan Efficiency has of course been the word of the year so far for the

tech sector now even Chamath Paul Hoppetius Bat King and

backer of unprofitable companies like Open Door and Virgin Galactic is fully on the

bandwagon and his letter annual letter released this week.

He writes, as we enter a sustained period of non-zero interest rates, discipline of

mission must now also intersect with discipline of management and operation, efficiency,

risk management, business model fundamentals, and most importantly, sustained profitability

are must-haves, not nice-to-haves. Now this is of course a sharp

turnaround and he acknowledges that from the low-interest-rate days during which he by

the way pitched deeply unprofitable companies to retail investors as SPACs.

He now calls rising rates akin to, quote,

having cold water thrown in our faces.

And a look at the performance of his SPACs

over the last 16 months really does get that point

across Open Door, SoFi, Virgin Galactic, and. last 16 months really does get that point across open door sofy

virgin galactic and clover they have all lost 60% or more of their market value

since January of 2022 so like Zuckerberg Paul hapate, he has found religion in efficiency and he is all in.

He says, the mathematical truth of high interest rates is that it renders unprofitable companies

valueless.

He touches on the private markets and venture capital as well to make a point that we've been

making over the past few months as well, and that is there's a major revaluation of startups

happening amid this tougher financing environment and as a result

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