Categories
AI San Francisco/California

Tsunami

The trucks are what I remember. Not the houses, not yet — the trucks.

This was 2012, Atherton, a Tuesday probably, and I was driving through on some errand that doesn’t matter anymore. What matters is that the street had rearranged itself. Contractors’ pickups lined both shoulders, nose to tail, so many of them that the road narrowed to one lane and you had to slow down and thread through, the way you do in a construction zone that has forgotten to end.

White trucks, mostly. Ladders racked on top. A generator humming behind a hedge somewhere I couldn’t see.

Behind the trucks, the estates were coming apart and going back together bigger.

I remember thinking: something has happened here that I am only seeing the edge of.

What had happened was Facebook.

The company had gone public that May, and within months the money was finding its way, the way money does, into contractors’ trucks parked along an Atherton road.

I didn’t call it a wave at the time. I called it, in my head, weather — a system that had rolled in and would eventually roll back out, the way markets always eventually correct, the way things revert.

I was an investor. I’d seen booms before.

I believed in the mean.

I was wrong.

The prices didn’t stay at their old level. They didn’t return to the world I’d known. The numbers from 2012 became the new floor, and every year since has been built on top of that floor. Today those prices look almost quaint, a thing you’d want to explain to a younger person the way you’d explain what a dollar used to buy.

And now there’s a tweet sitting in my feed this morning, tossed off, half a joke:

Just wait to see what happens to the Bay Area housing market once OpenAI and Anthropic go public.

I read it twice.

What I felt wasn’t curiosity — the feeling I’d had in 2012, watching an unfamiliar weather system with a kind of professional interest.

It was closer to dread.

Because I’ve already seen the after-photo.

And I know how to run the comparison forward.

The Facebook IPO created a large cohort of newly liquid employees on the Peninsula. They were mostly mid-career, and their stock had vested over four years against a company whose value had grown enormously.

The frontier labs are different.

If OpenAI and Anthropic eventually go public anywhere near the valuations already being discussed in private markets, they could create another enormous concentration of newly liquid wealth — among employees, founders and early investors.

I don’t know how large that wave will actually be. Maybe I’m overstating it. Not every employee will buy a house. Some will already own one. Some will move away. Much of the wealth will remain on paper for years.

And housing doesn’t respond mechanically to stock-market wealth.

But I do know something about the place where this wealth is likely to arrive.

There isn’t much of it.

Land is the constraint.

And I’ve seen what happens when a concentrated burst of new wealth meets a place that can’t make more land.

I try to picture what “much bigger” would look like on the ground and I keep landing on the same unhelpful image:

More trucks.

Longer lines of them.

People get ready..

Categories
Financial Planning Inspiration Living

Being Serious

One of my favorite podcasts is William Greenโ€™s Richer, Wiser, Happier podcast on The Investorโ€™s Podcast network. Greenโ€™s book came out a couple of years ago and has been one of my favorites. His ability to profile a great group of investors is superb and the book is very enjoyable reading.

On his latest podcast episode heโ€™s interviewing one of my favorite financial writers, Jason Zweig, about his about to be published updated 75th anniversary edition of Benjamin Grahamโ€™s The Intelligent Investor. The book comes out on Tuesday. For many years Zweig has written The Intelligent Investor column in the Wall Street Journal – one of my favorite reads every Friday morning.

Late in this podcast conversation thereโ€™s the following exchange between Green and Zweig – two colleagues who have worked together and apart for many years in the arena of financial journalism:

William Green: And you sent me this lovely quote from Philip Roth, the great novelist who both of us love, who said, “Sheer playfulness and deadly seriousness are my closest friends.”

That’s the formula to describe the concoction that energizes virtually any writer worth his or her salt. I thought that was just so interesting that it’s like you somehow want to go about these pursuits, whether it’s writing or investing, with deadly seriousness and at the same time sheer playfulness.

Jason Zweig: Yeah, I mean, I guess one way I have described this now that you mention it is, is that I take my work incredibly seriously, so I don’t take myself seriously at all. And another way to put that is I have ego in my work, and I have no ego for my work. So I, I throw everything I’ve got into it, I leave nothing on the field but when I’m done, if you ask me, it’s great, right? I’ll say probably not. It’s probably, it’s probably somewhere between terrible and okay. And I’m not really faking it either.


Thatโ€™s such a great way to approach life – being serious about your work (and family and friends, etc) while not taking yourself seriously at all.

Loved hearing Zweig talk about this on this podcast! And Iโ€™m really looking forward to reading his updated commentaries in the new edition of The Intelligent Investor.