Baker says great public equity investors are often wrong more than right, with best batting averages around 55%.
“They're wrong more than they're right, but because they make more money when they're right, they still have a great track record.”
“A series of fairly wild thoughts from Dwarkesh. I thought I was bullish but even I am not assuming that the price to rent compute continues to go up! I will say that I am in SV this week and Dwarkesh is capturing the zeitgeist. Net, net public markets would probably be trading https://t.co/PzIxxnzbiS”
Baker notes the Financial Times reported a three trillion dollar valuation for Anthropic and suggests public markets struggle to value high growth.
“$3 trillion for Anthropic in the FT. I feel like I’ve heard that somewhere else. Although public markets generally struggle to accurately value growth when it is this high.”