Was this the greatest ROI in history?

For an IRR of 33,500%

My Take:

Before November 5, 2024, Elon Musk's net worth was approximately $263B. Since then, it has risen to $348B —an $84B increase. He spent $250M on politics in the last three months of the cycle, for an ROI of 336X. When annualized, this is equivalent to an IRR (internal rate of return) of 33,500%.

Has there ever been another investment that can match it?

Musk isn't the only tech oligarch wading into politics. A super PAC funded by crypto enthusiasts called Fairshake raised over $200M to become the largest superPAC in the last election cycle.

Tech oligarchs making their presence felt on the pol!t!cal scene hark back to the Gilded Age between 1870 and 1900 when industrialists like Rockefeller, Carnegie, Vanderbilt, and JP Morgan amassed unbelievably huge fortunes. Reading Chernow's excellent biography of John Rockefeller, Titan, you can't help but be in awe of Rockefeller's dogged determination, the clinical way he systematically obliterated his competitors -- and the cozy control he and JP Morgan exerted over national and local politics. I don't know if I fully subscribe to Balzac's dictum that "Behind every great fortune lies a great crime," but there can be no question that with great wealth comes the urge to tilt the table in your favor.

So, while I'm in awe of Musk's political IRR, I worry: Is the 'First Buddy' good for democracy? Are he, Ramaswamy, and other tech bros moving into politics carrying forward the interests and priorities of regular citizens?

We're at the very beginning of what's sure to be a long era of tech titans leveraging their immense wealth to exert control over politics. It's to be expected, but we should be attentive to its unintended consequences and risks. What makes you an amazing entrepreneur in electric vehicles and rockets might not endow you with the acumen and temperament to positively shape geopolitics, markets, and judicial systems.

The robber barons of the Gilded Age eventually saw their reign end — not because they relinquished power willingly, but because society demanded it. Their control over politics, media, and markets left the public disillusioned, and reform movements arose to dismantle their monopolies and redistribute power. As many have said, history doesn’t repeat itself, but it often rhymes. Let’s hope we learn the right lessons this time around.

Completely Uncompensated Promo:

“A biography that has many of the best attributes of a novel. . . . Wonderfully fluent and compelling.” —The New York Times

“A triumph of the art of biography. Unflaggingly interesting, it brings John D. Rockefeller Sr. to life through sustained narrative portraiture of the large-scale, nineteenth-century kind.” —The New York Times Book Review

“Important and impressive. . . . Reveals the man behind both the mask and the myth.” —The Wall Street Journal

“One of the great American biographies. . . . [Chernow] writes with rich impartiality. He turns the machinations of Standard Oil . . . into fascinating social history.” —Time

Buy it from Bookshop, Powell’s or Amazon.

What I’m Reading:

Why AI Could Eat Quantum Computing’s Lunch via MIT Tech Review

Given the pace of recent advances, a growing number of researchers are now asking whether AI could solve a substantial chunk of the most interesting problems in chemistry and materials science before large-scale quantum computers become a reality.

The Hollow Allure of Spotify Wrapped via The New Yorker

Spotify facilitates a music-distribution model inhospitable to working musicians—according to a Times article published in 2021, industry estimates put Spotify’s payout rate at less than half a cent per stream—and an in-app experience that makes any listening not reliant on algorithmic recommendation a burden. To dispirited fans, Spotify Wrapped suddenly seems less like an honoring of personal taste and more an ingenious user-generated content farm that benefits the bottom line and brand recognition of a corporation chiefly concerned with profit margins and squashing its competition.

Assad Returns To Ophthalmology At Moscow LensCrafters via The Onion

Just days after rebels seized Damascus, deposed Syrian President Bashar al-Assad reportedly returned to practicing ophthalmology at a Moscow LensCrafters, sources confirmed Tuesday… At press time, Assad was threatening the front desk receptionist with sarin gas after she made a mistake with the scheduling software.

Inside the Vatican’s Secret Saint-Making Process via The Guardian

Who gets to be a saint is not just about holiness; it is about identity, politics, economics and geography. The historian Peter Burke regards saints as “cultural indicators, a sort of historical litmus paper sensitive to conditions between religion and society”. Canonisation has long been a way for the Catholic church to shape its image, and the Vatican has an incentive to approve candidates with useful profiles. In Acutis, the Holy See found an avenue to connect with a younger generation. From the moment his Cause was officially opened, Acutis was referred to as potentially “the first millennial saint”. He has been nicknamed “God’s influencer” and “the patron saint of the internet”.

Buzzings from the Hive:

Data is the fuel for AI, but so many organizations are flying blind: What data do we have? Where is it? Can we use it safely and responsibly? Most tools out there fall short, relying on outdated, manual processes or skipping the critical connection between the mountains of data they’ve collected and the permission to actually use it for AI and other growth initiatives. ⛽

That’s why we built Ketch Data Map differently. Our platform provides always-on, real-time data visibility, risk and permissions intelligence, and the ability to activate clean, permissioned data—all in one place. 🧼

This is about bridging the gap between privacy and growth, enabling teams to move fast without breaking things (or laws). 🌉

It’s a huge leap forward, and I couldn’t be prouder of what the Ketch team has accomplished and what we have in store. 🏃‍♂️‍➡️