Xelime

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The iron law of investing is interest rates. A one % change in rates leads to a 15 or 20 % change in a multiple. The reason multiples have collapsed here for all these businesses is because expectations as to inflation in rates has changed dramatically. We're talking about going from just above five up to six and a half, right? But the big question is, are we going back to two and a half or three,. Are they behind the curve, lost in the weeds, and we're going to have to go to four to five to kill inflation?

This conversation was recorded LIVE at the All-In Summit in Miami and included slides. To watch on YouTube, check out our All-In Summit playlist: https://bit.ly/aisytplaylist

0:00 Bill Gurley & Brad Gerstner break down the state and historical significance of 2022's market downturn

12:27 How VCs will handle capital commitments from LPs, underwriting startups in the new reality

24:14 Bull run mistakes, why VCs don't underwrite lower valuations, handling distributions

33:52 Gurley's take on WeCrashed & Super Pumped TV series, how sophisticated investors got "gaslit" by the market, influx of capital creating consumer-surplus businesses

47:54 Brad predicts the market for next year, Bill gives post-Benchmark plans

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