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The Importance of Understanding the Treasury Yield Curve
President Stig: If you do have a flat bond yield curve, it doesn't necessarily mean that you're going to have a recession right then and there. Short term borrowing interest rate becomes higher than the interest rate on long dated debt. This is typically an indicator of the market pricing the out years, the growth expectations far worse than what you are currently experiencing. That's what that inversion is actually kind of showing you.
On today’s classic episode, we study Billionaire Peter Thiel. Peter co-founded PayPal and he was the CEO until the sale to eBay in 2002 for $1.5 billion. After the sale of PayPal, Thiel started a big data analysis company called Palantir Technologies. He also became the founder of a venture capital firm called Founders Fund. With this firm, Thiel became Facebook’s first outside investor when he acquired a 10% stake for as little as $500,000 in August of 2004. Peter’s personal net worth today is about $5 billion and he remains active in numerous tech businesses.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
06:26 - Why and how Peter Thiel is always inverting his thinking and why you should do the same.
15:48 - Why do visionaries think in terms of a tipping point for employees rather than a tipping point for revenue.
38:52 - Why computers replacing people is an angst narrative that is not true.
44:45 - Stig and Preston answer a question from the audience and discuss how much value investors should pay attention to the bond yield curve.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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