This week, Erik Torenberg and Byrne Hobart discuss the pod shop hedge fund model, market cycles, AI pricing models, and the future of AI-generated content, with Byrne offering insights on hedge fund evolution, the current market environment, and AI's impact on entertainment and society.

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🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse.

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Highlights from the Episode:

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SPONSORS:

📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/

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LINKS:

Byrne’s writing: https://thediff.co

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X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

This week, Erik Torenberg and Byrne Hobart discuss AI's economic implications, the rise of passive investing, gambling markets, and Warren Buffett's early investment tactics, examining how technological advancements shape economic metrics, market dynamics, and industry shifts.

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🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse.

---

Highlights from the Episode:

---

SPONSORS:

📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/

---

LINKS:

Byrne’s writing: https://thediff.co

---

X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

This week, Erik and Byrne discuss the impact of technological change on markets, debate the feasibility of Argentine-style economic policies in the U.S., discuss government efficiency, payroll costs, and political dynamics, including the potential economic effects of a Trump administration and strategies of figures like Elon Musk and Sam Altman. For full shownotes, visit: https://highlightai.com/share/da0b923d-7d50-4459-b8e9-d0bf87710da7

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🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse.

—

RECOMMENDED PODCAST:

🎙️ Unpack Pricing - Dive into the dark arts of SaaS pricing with Metronome CEO Scott Woody and tech leaders. Learn how strategic pricing drives explosive revenue growth in today's biggest companies like Snowflake, Cockroach Labs, Dropbox and more.

Apple: https://podcasts.apple.com/us/podcast/id1765716600

Spotify: https://open.spotify.com/show/38DK3W1Fq1xxQalhDSueFg

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SPONSORS:

Take your personal data back with Incogni! Use code ECON102 at the link below and get 60% off an annual plan: http://incogni.com/econ102

📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/

---

LINKS:

Byrne’s writing: https://thediff.co

---

X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

On this week’s episode of The Riff, explore the impact of technological change on markets and businesses, discussing economic bubbles, the future of AI, the post-election political landscape, and Byrne's upcoming book Boom, which examines the role of bubbles in infrastructure development. For full shownotes, visit: https://highlightai.com/share/44975e08-681b-484a-9f8f-64588f17da2f

—

🙏 Help shape our show by taking our quick listener survey at https://bit.ly/TurpentinePulse.

—

RECOMMENDED PODCAST:

🎙️ Unpack Pricing - Dive into the dark arts of SaaS pricing with Metronome CEO Scott Woody and tech leaders. Learn how strategic pricing drives explosive revenue growth in today's biggest companies like Snowflake, Cockroach Labs, Dropbox and more.

Apple: https://podcasts.apple.com/us/podcast/id1765716600

Spotify: https://open.spotify.com/show/38DK3W1Fq1xxQalhDSueFg

---

SPONSORS:

📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/

---

LINKS:

Byrne’s writing: https://thediff.co

Byrne's book: https://www.amazon.com/Boom-Bubbles-Stagnation-Byrne-Hobart/dp/1953953476

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X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

This week, Erik Torenberg and Byrne Hobart explore the evolving landscape of heretical ideas, election dynamics, AI and crypto’s market impacts, prediction markets, the shifting Overton window, contrarian perspectives, and trends in housing and smaller social networks. For full shownotes, visit: https://highlightai.com/share/77be6b84-0f55-4dcc-9dd1-c69341272e2e

---

📰Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess

---

RECOMMENDED PODCAST:

🎙️ Unpack Pricing - Dive into the dark arts of SaaS pricing with Metronome CEO Scott Woody and tech leaders. Learn how strategic pricing drives explosive revenue growth in today's biggest companies like Snowflake, Cockroach Labs, Dropbox and more.

Apple: https://podcasts.apple.com/us/podcast/id1765716600

Spotify: https://open.spotify.com/show/38DK3W1Fq1xxQalhDSueFg

---

SPONSORS:

📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/

---

LINKS:

Byrne’s writing: https://thediff.co

---

X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

In this special episode of The Riff, Erik Torenberg and Patrick McKenzie explore the evolving landscape of tech journalism, media narratives about the tech industry, and how the industry is increasingly telling its own story. For full shownotes, visit: https://highlightai.com/share/2dab4f2e-f8b1-410b-9bc4-b4a9b137c22f

📰Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess

---

RECOMMENDED PODCAST:

🎙️ Unpack Pricing - Dive into the dark arts of SaaS pricing with Metronome CEO Scott Woody and tech leaders. Learn how strategic pricing drives explosive revenue growth in today's biggest companies like Snowflake, Cockroach Labs, Dropbox and more.

Apple: https://podcasts.apple.com/us/podcast/id1765716600

Spotify: https://open.spotify.com/show/38DK3W1Fq1xxQalhDSueFg

---

SPONSORS:

📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/

---

LINKS:

Byrne’s writing: https://thediff.co

---

X / TWITTER:

https://x.com/patio11 (Patrick)

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

In this episode of The Riff, Byrne Hobart discusses his upcoming book about financial bubbles, venture scale businesses, creator financing, and prediction markets. For full shownotes, visit: https://highlightai.com/share/d084ef81-e3cd-41b2-be04-b6fc2bbe3f7a

📰Be notified early when Turpentine drops new publication: https://www.turpentine.co/exclusiveaccess

---

SPONSORS:

📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/

---

LINKS:

Byrne’s writing: https://thediff.co

Byrne's book: https://www.stripe.press/boom

---

X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

In this special episode of The Riff, Byrne Hobart is joined by Patrick McKenzie, host of the podcast Complex Systems to discuss a range of topics including app business models, restaurant industry economics, AI's impact on productivity, the evolution of search technologies and more.

🔥 Apply to join over 400 Founders and execs in the Turpentine Network: https://www.turpentinenetwork.co/

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RECOMMENDED PODCASTS:

🎙️ Complex Systems

Patrick McKenzie (@patio11) talks to experts who understand the complicated but not unknowable systems we rely on. You might be surprised at how quickly Patrick and his guests can put you in the top 1% of understanding for stock trading, tech hiring, and more.

Spotify: https://open.spotify.com/show/3Mos4VE3figVXleHDqfXOH

Apple: https://podcasts.apple.com/us/podcast/complex-systems-with-patrick-mckenzie-patio11/id1753399812

🎙️ This Won't Last - Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.

Apple Podcasts: https://podcasts.apple.com/us/podcast/id1765665937

Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz

YouTube: https://www.youtube.com/@ThisWontLastpodcast

---

SPONSORS:

📑 Discover Carta, the innovative end-to-end accounting platform revolutionizing private fund management with streamlined operations and on-demand insights. Experience the new standard at https://carta.com/investors/

---

LINKS:

Byrne’s writing: https://thediff.co

---

X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

https://x.com/patio11 (Patrick)

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TIMESTAMPS:

(00:00) Intro

(01:08) Economics of free-to-play games

(09:45) High spenders and VIP systems

(12:13) Misconceptions about industry economics

(13:22) Spending patterns

(15:46) Airline industry

(20:51) Custom software and high-end services

(24:17) Sponsor: Carta

(25:06) Evolution of restaurant websites

(33:57) Role of platforms in restaurant business

(41:33) Strategic moves in food distribution

(43:53) Restaurant groups and concepts

(47:39) Economics of business meals

(53:33) Value of free company food

(01:03:37) Role of LLMs in research and writing

(01:12:04) Future of LLMs and human interaction

(01:23:44) Wrap

This week, Byrne Hobart and Erik Torenberg discuss the shifting dynamics of careers and education, the notion of "auto-paternalism" in organizational choices, Spotify's growth strategy in a mature market, the future of podcasts and audio content, and the intricate relationship between AI art, property rights and more.

🔥 Apply to join over 400 Founders and execs in the Turpentine Network: https://www.turpentinenetwork.co/

---

RECOMMENDED PODCASTS:

🎙️ This Won't Last - Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.

Apple Podcasts: https://podcasts.apple.com/us/podcast/id1765665937

Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz

YouTube: https://www.youtube.com/@ThisWontLastpodcast

---

SPONSORS:

BRAVE: Get first-party targeting with Brave’s private ad platform: cookieless and future proof ad formats for all your business needs. Performance meets privacy. Head to https://brave.com/brave-ads/ and mention “Turpentine” when signing up for a 25% discount on your first campaign.

---

LINKS:

Byrne’s writing: https://thediff.co

---

X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

---

TIMESTAMPS:

(00:00) Intro

(00:27) Career advantages

(05:00) Young entrepreneurs today

(09:38) Money and legitimacy

(17:57) Sponsor: Brave

(18:59) Education and critical thinking

(27:34) Disrupting higher education

(39:25) Auto paternalism in organizations

(48:13) Spotify's market strategy

(53:39) AI art and property rights

(57:07) Wrap

This week, Byrne Hobart and Erik Torenberg dive into a range of fascinating topics such as the evolution and future of OpenAI's business model, economic rationale behind corporate buybacks, changing software economics, China's recent equity market surge and more.

🔥 Apply to join over 400 Founders and execs in the Turpentine Network: https://www.turpentinenetwork.co/

---

RECOMMENDED PODCASTS:

🎙️ This Won't Last - Eavesdrop on Keith Rabois, Kevin Ryan, Logan Bartlett, and Zach Weinberg's monthly backchannel. They unpack their hottest takes on the future of tech, business, venture, investing, and politics.

Apple Podcasts: https://podcasts.apple.com/us/podcast/id1765665937

Spotify: https://open.spotify.com/show/2HwSNeVLL1MXy0RjFPyOSz

YouTube: https://www.youtube.com/@ThisWontLastpodcast

---

SPONSORS:

BRAVE: Get first-party targeting with Brave’s private ad platform: cookieless and future proof ad formats for all your business needs. Performance meets privacy. Head to https://brave.com/brave-ads/ and mention “Turpentine” when signing up for a 25% discount on your first campaign.

---

LINKS:

Byrne’s writing: https://thediff.co

---

X / TWITTER:

https://twitter.com/ByrneHobart (Byrne)

https://twitter.com/TurpentineMedia (Turpentine)

---

TIMESTAMPS:

(00:00) Intro

(00:20) Role of competition in tech

(03:57) ByteDance and the music streaming market

(08:15) OpenAI's business model evolution

(19:05) Sponsor: Brave

(20:07) Future of OpenAI and AI regulation

(27:56) Understanding interest rates and treasury bonds

(30:58) Corporate buybacks

(37:05) Software economics and growth strategies

(45:38) China's economic strategies and market impact

(50:49) Predicting market movements with headlines

(54:15) Wrap