Category: Uncategorized

The Social Media Game Show

Posted on by Steve Sammartino

While undertaking my TikTok experiment, I’ve noticed my feed being filled with ‘Random acts of Kindness’ – and I’m wondering, How random can it be when it is clearly a content play?

Contrived Acts of Kindness

For the uninitiated, these ‘random acts of kindness’ are a bit like a new genre of game show. The acts often include;

  • Handing bunches of flowers to people then walking off
  • Giving people money on the street, sometimes thousands of dollars
  • Paying strangers’ bills in supermarkets, gas stations or shopping centres
  • Asking people what makes you happy – and then going to buy it for them.
  • Arriving at homeless encampments and giving goods to the residents
  • Driving round town looking for people to help …. always with gifts or money

Of course, the camera is never off. The video is often made with someone hiding around the corner, and it’s mostly uploaded without permission. The whole thing is an act, and in my view, a distasteful one. They are turning people’s lives into content. This is what the Attention Economy has created, a world where the only goal is to get views. A world where it matters not what people are watching, just that they are watching.

The ugly reality is that these so called acts of kindness are just a cost of doing business. A small financial outlay that is later offset by monetary gains the channel makes for the creator. In today’s digital age, attention equals money.

If you manage to garner enough eyeballs around what you do – people will pay for access to your audience. It’s old school media, in a micro way.

Fee for Audience

On TikTok the going rates for an audience are quite significant. People’s reach can be accessed for fees based on their level of ‘influence’. Cost per single post below:

  • Nano: $50–$300 (1-10k followers)
  • Micro: $300–$1,250 (10-75k followers)
  • Mid: $1,250–$3,500 (75-250k followers)
  • Macro: $3,500–$12,000 (250k – 1m followers)
  • Celebrity: $12,000+ (1m+ celeb status) 

Just last week – a famous TikTok-er known as @LifeofHarrison gave what he described as an old lady some flowers by asking her to hold them – and then says have a lovely day and walks off.

This garnered 65 million views with the comments fawning over the act. The lady however, Maree, said she felt dehumanised and said she didn’t like being described by others as an old lady. In an interview on TV @LifOfHarrsion, aka Harrison Pawluk said, “I want my content to make people feel happy….” Interesting that the word ‘content’ was featured in that sentence. Rather than him just wanting to make people feel happy.


A Legal & Ethical Minefield

While it is legal to film someone in a public space, it’s illegal to use people for commercial purposes without their explicit consent. When we record my TV show The Rebound, every person who appears needs to sign a release form. The only exception, is if you’re part of a larger public audience at a place like a football match. It’s another example of technology companies having a different set of rules to traditional media. But we all know, they’re a really just media companies in disguise.

Of course we shouldn’t blame viewers for watching these acts – they just want to see something positive. But we ought also remember that the creators have been influenced by the media landscape they now live in. First we shape our tools, thereafter, they shape us. While I don’t question that most people would be happy to receive something valuable for free, it does seem a little opportunistic and avoids all of that difficult stuff like working on the structural issues to alleviate hardship. I guess real solutions don’t really suit the short video format.

But if we want to teach our kids anything in a surveilled society, it should be that what we do when no one is watching is what really matters.

The only problem, is that the spaces where we are able to do something without anyone watching, are in rapid decline.

—

Keep Thinking,

Steve.


The Most Important Skill of The Future

Posted on by Steve Sammartino

Our world is changing rapidly. Everything is in a state of flux. What works well today may be ineffective tomorrow. The skill we need to survive an uncertain future is the ability to change gears.

  • Just think through the daily challenges we face in an omni-connected digital society. We must juggle between our online persona and our real world meat space personality and values
  • Navigate the impact of technology in the field we work and how this influences our future income streams
  • Adapt to new interpretations of language to more closely reflect a fluid society
  • Guess at how to interact with social media’s opaque algorithms for desired outcomes on digital tools
  • Relearn how to use constantly updating software
  • Continually re-establish ourselves on digital platforms to protect our brand reputation and connection to followers
  • Decipher organisational hierarchies and working norms reshaped by emergent generations
  • Figure out work-arounds in a volatile global environment with increasing costs of capital and supply chain risk

This list could be a 100 lines long. The one takeaway is that we can’t get too comfortable with the status quo. We need to embrace uncertainty and become accustomed to a state of flux.

The best way to prepare is to develop daily habits that are change-centric. We need to deliberately do things differently, so that it becomes second nature. This is less about technology and more about ourselves as people. By changing our approach, we cope better with rapidly changing technology. This is particularly important when we’ve been successful in business or work, because success hates change.

We all had to do this as a part of the COVID pandemic. Now it’s important that we don’t fall back into the habits of yesterday as work normalises. Personally, my TV show The Rebound would never have happened if COVID didn’t force my hand. Beyond that, there’s many things I do in my career that just don’t work as well as they used to. My Twitter account is a classic example. Engagement in that channel is now very low – change happened. Occasionally, I didn’t adapt as quickly as I should have.

Hack your future – change gears often

Hack your own mind to improve at changing gears by using different approaches to work and life. Treat different situations differently – adapt your style and messages in different forums. It forces an internal shift and helps you cope better with changes that are outside of your control. Kind of like CrossFit for the mind.

Here are examples of how I change gears:

My books and blog: Mostly about technology and its impact on business and the economy, my writing is where I flex my knowledge on the future, emerging technology and geopolitics. These are more intellectual forums for potential clients who want to scrutinise my work and be comfortable in the depth of my knowledge before they hire me in some capacity.

Media: In this forum (News, TV, radio), the gear I’m in is technology translator of the future. I want to show how I can explain the complex in simple terms. I also want the market to know I’m the go-to guy on anything tech and the future. I use the media to build confidence and brand awareness.

Keynote speaking: As the veteran of 500 keynotes in 14 countries, I often tell people that when you’re a keynote speaker, every day is a job interview. You don’t have the luxury of a bad day. In my experience of making speeches, the entertainment factor is more important than knowledge. How engaging you are is what gets you the next gig. However, unless you’re perceived to be an ‘expert’, you’ll never get that first gig. I focus on involving the audience, not talking at them. So it’s a gear that constantly oscillates between expertise and entertainment. In keynote speeches, I need to turn boring tech into something that electrifies a live audience.

Boardrooms: In this forum, my game is full-on economics. It’s about the impact technology has on future business strategies. My gear here is to use a strong financial dialect. It’s all about market capitalisations, price earnings ratios, revenue streams, cost infrastructure, disruptive technology and industry margins. The audience must immediately understand that I’m more than a technologist – I’m actually an economist by training, who just happens to have a deep understanding of technology.

Projects: My projects are all about getting my startup and innovation hat on – to show that I practise what I preach. I’m not an academic, but instead, a practitioner. I know it, because I’ve done it. My latest project is 3D printing a house with Tom from SlikBuild. Here it is all project managment.

Linkedin: This is where I share the work I’m doing. It’s uncomfortable to self-promote.. I aim to show others I’m doing lots of media, projects and keynote speaking. Here I want the masses to see what I’m doing, and that I’m in demand. My prospects will feel assured they are in good company when they hire me.

TikTok: This is my latest social media foray – and it is quite daunting and awkward. In every other digital forum, I have relatively sizeable followings. On YouTube, my videos have enjoyed over 12 million views. I’ve got 10k+ followers on LinkedIn and Twitter. But on TikTok, I am at total ground zero. I’m a beginner again. Two weeks ago, I started posting every day and even have a bet with my son that I can get to one million views by the end of the year. It’s very unlikely I’ll get there, but it’ll force me to upskill in short form video. Despite only having a measly 200 followers, I have posted two videos on TikTok which gained 10,000 views. TikTok has super high engagement levels, hence my investment in the channel. The gear here is one I rarely use in my work – it’s pure motivation and inspiration. I focus on teaching people life hacks to get more out of their career and money. It’s generally something I’ve avoided until now, but I think I have something to offer in this realm, so I’m putting myself out there to see what happens. Get on my TikTok here – it’s gold, baby!

If you can change, everything can change in your favour

Moving between gears doesn’t mean we throw out the skills we have. Instead, we should change how they are used and interpreted in our market segments. The more gears we regularly employ, the more future-proof we become, ready to respond to anything the market throws at us.

If you challenge yourself, you’d be surprised how many gears you can access in your skill base. By changing pace and thought patterns around your work, you’ll garner more respect in your industry, and make an investment in your future.

– – –

Keep Thinking,

Steve.

Headlines from the Future

Posted on by Steve Sammartino

For your reading pleasure, I’ve included 10 headlines from the Future. While they seem unrealistic, they are all based on current and historical exponential improvements in these technologies. Every single one is a predicted reality – by scientists who work in these fields. Under each I’ve put a link or a little description for context as to why these headlines aren’t mere science fiction. Enjoy.

‘Robot performs first cancer surgery unaided by Doctors’ – 2027

Minimally assisted surgery is already here. It’s a relatively small step from here, not a leap, this timeline is possibly too long.

‘First synthetic human born’ – 2028

Artificial sperm and eggs have already been created to give birth to rats. Doctors say that synthetic babies are just a few years away, without the need for cloning. In addition 3D printed male sperm cells were recently created.

‘NanoTech foglets make food out of thin air! ‘ – 2045

I’ll start by saying foglets are tiny robots which can reorganise molecules. If robotics get small enough, and materials smart enough, we’ll be able to create everything from nothing. This is a great summary of how far we’ve come and why it seems inevitable to reorganise atoms eventually.

‘First human connects to internet via neural lace’ – 2037

Connecting a human to the internet, with information transactions occurring by thought has already been done. Now it’s simply a game of improving connectivity, computation, inference and resolution.

‘Brad Pitt’s new movie – 100% AI version of him’ – 2032

This is also probably an understatement – a good chance this will happen sooner. I don’t even have to provide a link of how good deep fakes have gotten. The way Tom Cruise is looking at 59, I’m not even sure that’s him! But we can be sure of this, they’ll be very few new movie stars, maybe we’ve minted our final batch, because big movie studios love nothing more than saving money by extending franchises, I’m sure they’d recycle actors too if they could!

*Bonus: Get 2 people to join my email list (this link) and get a 15 minute one on one mentoring session with me. Just reply email to this to tell me who joined thanks to you. I’ll change your life. Promise.

’60 year old gets 18 year old lung back with lab grown lung transplant’ – 2029

Just this week an ear which was 3D printed with bio ink was transplanted onto a human using their own cells to form it. The path from here is actually quite proximal and linear.

‘First ever full human brain simulated in cloud’ – 2028

Side note: we are by stealth, right now storing our lives, memories, plans, ideas, relationships, knowledge and work in the cloud…. But at a deeper level work is being done to upload entire humans minds.

‘World eats more meat grown in labs than farms’ – 2040

For starters, this process is already possible. The world’s first lab burger cost a cool $330,000. Since that time the cost of production of ‘lab meat’ has declined significantly. Today it costs around $6000 for a quarter-pound of beef and by 2024, it is estimated that the cost of a meat patty could be as low as $5 – not far off an acceptable cost for a gourmet patty these days. It’s important to note, that lab meat is the exact same molecular structure. You will not be able to know, see or taste the difference. While this might sound crazy, 50 years from now killing an animal to eat it, will be regarded as worse than slavery.

‘Renewable energy greater than 50% of global usage’ – 2029

It’s already above this is many countries. Australia, a renewable laggard already has 29% of all electricity and 24% of all energy usage from renewable sources. Pure economic forces will drive this. Free energy is a very enticing price.

The net out take should be this: It is easy to forget how many technological advances we take for granted today: a light switch, a car, air travel, air conditioning, TV, satellites. This is before we get radical and consider things like AI, 3D printing and crispr. Even the internet and a smart phone were literal science fiction when I grew up, and yet, here we are.

If you want to navigate the future, it pays to remember, that something is impossible, right until the moment it happens. Believing in ‘fantasy‘, isn’t just fun, it gives us a chance to participate in its creation.

– – –

Keep Thinking,

Steve.

Is Netflix Over?

Posted on by Steve Sammartino

Imagine if an industry spent $4 to generate $1 in revenue. Stop imagining – this is exactly what Video On Demand streaming platforms are doing in 2022. It really is astonishing:

  • Forecast VOD streaming content spend = $US230 billion
  • Forecast VOD streaming revenue = $US83.4 billion

Don’t forget – this is before profit. No wonder no one can decide what to watch!

The tyranny of choice

Is content still king? My wife and I tend to perform the same ritual every night, where we take turns with the remote control to suggest shows that might entice both of us, but can never agree on one. After an hour of fruitlessly scrolling through content from four streaming platforms, we end up going to bed, having sampled an average of three minutes from six shows.

When it comes to content, we have a tyranny of riches. Netflix has even added a button that appears to prompt us, ‘Can’t decide what to watch? Play something.’

If you think this is bad for consumers, I can assure you it is much worse for companies. There are very few times in corporate history where offering more product options has performed better financially, in contrast to careful market curation. This is especially true when the company is directly making and acquiring the products. User-generated content platforms like YouTube don’t have this problem.

Market reality bites

Since its peak in late 2021, Netflix has lost US$230 billion, which is 73 per cent of its market value. It’s rare for a large market-leading firm like Netflix to suffer such a large hit. It’s another indication that we are moving from a future expectations economy to a reality economy.

Quite frankly, it is long overdue. Tech companies have been getting a free pass for a long time on their valuations. So long as they were growing, no one seemed to care about profit. We can include Tesla into this category as well. Incidentally, Telsa has lost nearly half its value since Elon Musk submitted a bid for Twitter, using his Tesla stock as security.

The streaming market is now seeing an endless slew of competitors with a deep back catalogue, deep pockets or both. Of course, this erodes Netflix’s advantage. While Netflix is planning to invest a massive US$S17 billion on original content in 2022, it’s hardly a leading position. In addition, much of its long-tail content has been removed in recent times, as its former suppliers (like NBC, Paramount and Disney) have become direct competitors.

  • Apple TV is expected to spend US$7 billion this year on content
  • Amazon Prime will spend US$13 billion
  • Disney is investing a colossal US$33 billion to grow their bank of nearly 100 years in deep content and nostalgia
  • Paramount Plus is also investing a large sum of $US15 billion in 2022

Without even considering all of the VOD platforms, it does seem like the market has got this right and is asking hard questions about the true worth of certain stocks in this and other tech sectors. All of a sudden, Netflix looks expensive and replaceable.

It is funny how often the market fails to look into simple financials until stocks start heading south.

Bonus: Speaking of Streaming, Catch up on my TV Show, The Rebound, latest ep. the Internet of Things. Tomorrow we explore Web3 – 12.30pm on Channel 9

Next-gen content

As far as entertainment goes, it is financially impossible to compete with platforms where the content is generated by users for free. YouTube, Meta platforms and TikTok have the advantage of literally billions of content producers working for free. Ironically, it’s the dream of many content producers that their work goes viral and they are eventually picked and paid to make something for a streaming platform. It’s easy to delineate that these platforms don’t compete directly, but in reality they do. They are all competing for attention. Attention is something the market can never get more of, despite the corporate investment in chasing it.

From a marketing and technological perspective, it is clear that spending more on content is not a sustainable strategy. However, it does feel like there is a shift in how content is made and consumed. For any streaming platform to stand out from the crowd, greater creativity is key. Netflix has shown signs of this via its interactive Choose Your Own Adventure storytelling – like Bandersnatch – in which viewers make decisions on how the story unfolds. Another longer-term tech possibility is deep fakes that allow viewers themselves to literally appear in the shows via face swap technology. But the leading light in the future of content is clearly TikTok. (Follow my new content experiments on Tiktok here.) TikTok has managed to launch several simple, yet insightful, innovations that allow content iterations and layering on original pieces, combining something original with crowd participation. Their first move was to grant users the ability to grab someone else’s audio, and more recently, use it in duets. This one here is a classic duet song about Crypto Kids that went super viral last week. It’s brilliant. They really have gone beyond sharing and developed a new kind of iterative layering no other channel has conceived – so simple, yet so effective.

The take out here is that consumer-driven insight and utility always beats big budgets. A lesson we need to remember when investing or building our own company.

—

Keep Thinking,

Steve

USA – The End of an Empire

Posted on by Steve Sammartino

“What? The land of the free? Whoever told you that is your enemy!” – Zach de la Rocca, 1992.

Let me back up a little. Growing up as a child in the 1980s, America was the land of milk and honey, where dreams came true. I just assumed one day I’d move to America. Saccharine sitcoms like Happy Days, Family Ties, Growing Pains and The Cosby Show led me to believe that everyone lived in double story houses, had professional parents without money problems, enjoyed excellent health, were well-educated and that racism didn’t even exist. That was until I peered behind the curtain and saw the reality. Pre-internet it wasn’t that easy to work out what was happening in other countries, because TV, advertising and imported products were our only windows to the world. Oh how little I knew. While it seems the perpetual decline of the US is inevitable, I sometimes wonder if it were ever more than a Hollywood prop.

We are collectively viewing the end of the shortest empire in history, the United States of America. Granted, it was at one point probably the most powerful in history, yet now is crumbling before our eyes. We are witnessing a modern day fall of Rome, live.

To perpetuate an empire, three things need to be maintained:

  1. People need to become a little bit smarter
  2. People need to become a little bit healthier
  3. People need to become a little bit richer

The US is not performing well against these three criteria. It’s the only developed economy in the world where this is the case.

Smarter: It’s clear that the US has some of the world’s greatest thinkers and innovators. However, in recent decades, simple markers of intelligence and collective understanding of the world have declined. It’s astounding how many US citizens deny facts which are indisputable and learned in grade school. Thirty percent of millennials in the US are not convinced the earth is round. This number is only 4% for the rest of the world. In the mid 1970s at the peak of the space race, the proportion of ‘Flat Earthers’ in America was less than two percent. One third of Americans cannot name a single branch of their own government. A quarter of Americans believe that the sun orbits the earth. Twenty percent believe that humans were created 10,000 years ago.

I’ve chosen facts like these, because they should be universally agreed upon. Acknowledgement of these facts frame a viewpoint of society where basic knowledge is important to shape government policy and to address vital issues like climate change. (Coincidentally, of which a quarter of Americans deny.) It also is unlikely that the US can educate its way out of this mess. Access to education in the US is bad and getting worse. Student debt as of April 2022 was US$1.75 trillion dollars. The average debt to education costs per household is US$57,520. The cost of higher education in the US has outpaced inflation for 4 decades. Before anyone even gets to college in the US, they need to fight their way through an incredibly difficult K-12 system, where the amount of money the government spends on a local school depends on how much the houses in the areas are worth. The higher the real estate prices, the more funding local schools attract. If you think this sounds like something from a Black Mirror episode, trust your instincts.

It’s hard to pinpoint exactly how and why the US, once the bastion of global intelligence, is experiencing such a decline. I can’t help but think that the past two decades where, from Fox News to Facebook, the spread of misinformation in the media has significantly contributed to the dumbing down their society.

Bonus: if you want to get smarter – Catch up on The Rebound TV here.

Healthier: For the first time since the industrial revolution, America has witnessed a decline in life expectancy. They lost 2.26 years in the past year alone. This is at a time when medical advances (and terrific things like vaccines) have never been more advanced and available. They suffered more deaths due to Covid than any other developed nation, which is now pegged at more than one million people. They have the lowest vaccination uptake of all developed nations, currently ranking 64th in the world. The crazy thing is that they spend more on health than any other developed nation. They spend US$4.1 trillion on health annually – US$12,530 per person – which is increasing at 9.7% per year, yet for the worst health outcomes. (Most of the spending goes to insurance companies.) They are the most obese nation in the world, with 42.4% regarded as clinically obese. In the year 2000, this number was just 30.4%. For the first time in their history, children are not expected to outlive their parents.

The opioid crisis in the US is at such epidemic levels that it killed over 100,000 people in 2021 and it is getting worse (in 2020 the opioid crisis was responsible for 78,000 deaths.) In contrast, over 45,000 people died last year from gun-related injuries. (Yes, you can still buy guns at Walmart.) It’s ironic that the Supreme Court is allegedly considering overturning Roe v. Wade (the right to choose abortion). It seems like protecting lives is only important before they exit the womb.

Richer: The minimum wage in the US is currently US$7.25 per hour. If you think that sounds bad, it’s worth noting it hasn’t increased since 2010. When adjusted for inflation, the minimum wage in the US is lower than it was in 1970.

Meanwhile, CEO wages have increased exponentially. The average CEO wage in the US is now 320 times more than what workers earn. In 1970, it was ‘only’ 21 times more than the average worker’s.

Unfortunately, this isn’t just about the disparity between CEOs and people working for minimum wage. The general rate of income inequality is increasing rapidly. Five families in the USA now have as much wealth as the bottom 50% of the population. It’s insane, and a lot of it can be tracked back to the narrative proselytising lower tax rates. Lower taxes, it was claimed, create jobs and growth, but all it really does is transfer wealth to the owners of capital. Few people know that the highest tax rate in the US was 94% in 1945. Today it is 37% and you need to earn over $500,000 before you hit that rate. Meanwhile, corporate tax rates are a mere 21%.

The effect of this isn’t just the hollowing out of things like education and healthcare. Income inequality is exacerbated which then creates a spiralling down effect. People can’t access resources for health and eduction, while the wealthy can, so the gap grows bigger.

All of this is happening at a time when the cost of living is increasing and the country is becoming more socially divided.

When the core tenets for a stable society of health, wealth and education are eroded from the bottom up, it rarely ends well. History says that it causes instability, infighting and eventual civil war. TL;DR: people come with pitchforks. I wouldn’t be surprised if the USA splits like the USSR did. Never before have we seen such an economic powerhouse so divided on both beliefs and the foundations that actually hold it together.

—

Keep Thinking,

Steve.

Enlightened Loyalty

Posted on by Steve Sammartino

Loyalty in life matters. But one thing we should never be loyal to, is a corporation.

Corporate loyalty is one of the most foolish decisions we can make, simply because companies, aren’t real. They are a legal-financial construct invented by humans to literally remove human oriented risk. And we can be sure that despite what they say, a company will never be loyal to anyone inside it. The ‘thing’ can only be loyal to its corporate objectives. It’s designed that way on purpose.

But here is what we can do – be loyal to the people we meet inside them. That has the potential to be enduring. This has the potential to extend beyond the original corporate meeting place because it is between people.

One of the most important decisions we can make – is what to be loyal to. On this my advice is simple, be loyal to people, not things or market based constructs. The irony of course, is that the more we focus on human loyalty, the more the companies and market places we inhabit benefit.

Speaking of loyalty – This weeks Episode of The Rebound is all about Gamification & Loyalty. It’ll be shown on Channel 9 Nationally at 12.30pm. We are now in our 3rd season which is pretty cool.

I remember the first pitch meeting we had with Channel 9. I said that we think smart Australians want to watch something a little more educational than seeing strangers get married on an island or at first site. A risky move, but it worked. I was loyal to what I actually believe. And when it comes to pitching I always say that the audience believes, what you believe They can smell it – and there is nothing more compelling than self belief. And while, we still haven’t cracked prime time our audience was up 61% across season 2. So thanks for all who are tuning in.

The first 2 episodes have already run. Ep.1 was all about Data and Algorithms – with clear explanations and hacks to get them working for you. Ep.2 was all about the Freelancer, something close to my heart because I am one.

And if you haven’t had enough Sammatron – here’s a radio interview I did for Talking Finance (nerdy I know) about why Elon Musk literally can’t afford to buy twitter. Yes, you read that right. The world’s richest human with his $250 billion+ in net worth, can’t raise the cash. Nearly all of his wealth is in Tesla Stock, and he hasn’t got the $43 billion in cash needed to buy it, and he can’t access it either. You can listen in here to find out why. I speak at 23 min mark- a simple insight into how investment markets really work.

I actually posted this interview about Elon Musk not having the money to takeover Twitter – and the tweeting Taliban descended upon me with hate mail. Lol. It’s an interesting example of misdirected loyalty. Elon’s fans, or should I say acolytes, think that he can do no wrong. No doubt he is a genius who has changed the world, but I think it is about time that we kibosh the idea that the person with the most money is always correct. Wisdom isn’t a financial construct, and neither should loyalty be.

– – –

Keep Thinking,

Steve

The Weirdness of Tech, Storytelling and Putin

Posted on by Steve Sammartino

The story you tell yourself determines your future.

Right now, horrible war crimes are being committed because of the story that Vladimir Putin has told himself. In his mind, he is a tzar who will reunify the old USSR, and will consequently go down in history as a great, powerful man. Though the validity of his story is questionable, we can be sure that the story he has told himself is the motivation behind the actions he has taken. Ultimately, it will define his future.

Stories are important. They are far more powerful than the truth. If we take a story to be true, then we’ll find ways to justify it, define it, and eventually act it out. As our minds think, eventually we become.

Now, let’s take the story of Elon Musk. No doubt – he is a genius, though he does act irrationally at times. He has certainly changed the world through electrifying transport and putting satellites into orbit. Musk has also made several stupid comments, accumulated US$40 million in fines for securities fraud and left in his wake a long list of broken promises, including putting 1 million robotaxis on the road by 2020. Today, he still can’t scale up to more than 750,000 cars a year, and there are exactly zero robotaxis on the road three years later. His promise of a Hyperloop is equally foolish when you realise he has basically rehashed an inferior version of a train.

But the Cult of Musk is stronger than the truth. Say a single negative word about him in any social forum, and his acolytes will attack you like a pack of wild dogs, accusing you of being a Luddite and not getting it. It doesn’t matter what the truth is. Musk’s story galvanises his fans with a real sense of religiosity. Recently I commented on a TikTok video featuring Musk proclaiming degrees are worthless and that you can learn anything without it. I agree – in many cases this is true. However, I made the mistake of posting a comment that I prefer my doctors to have medical degrees. I had 43 comments rain down on me that varied from accusing me of jealousy to claiming the entire medical industry is a scam. You should try it – click here and make a comment about an Elon tweet that doesn’t support his views, and you’ll see what I mean. There’s also a chance you’re reading this and thinking, ‘I thought Samma was into tech…. wow, I’m surprised’. Let me reiterate. I’m into science, humans flourishing and pointing out our foibles along the way. Storytelling is a powerful force that, like any technology, can be used to emancipate or fool people.

What’s most interesting is that it isn’t just individuals who can buy into a fantasy. We can have collective hallucinations. As I write this, the market value of Tesla is greater than the combined market value of the ten next biggest car companies. While Tesla had an early lead in EVs and autonomous vehicles, it’s now clear they have very little, if any, advantage. This is the financial value of story. I often say that Tesla is the world’s first trillion dollar story. If I had the choice to own either Tesla, or the ten next biggest companies that includes Ford, Toyota, GM, Daimler, BMW, Honda, and Volkswagen, I know what I’d choose. Without a question, it would be the ten auto manufacturers that collectively produce more than 50 million cars a year. The share market – which is meant to be a rational means of capital allocation – says Elon’s 705k annual production and ‘story’ is worth more.

Thought for the day: The story is always more profitable than the truth.

Now to you. What story do you tell yourself? The story of your capability, where you are going, and why you belong there? I tell my clients this all the time – they believe what you believe. The market looks to your story – the one you tell yourself first. By inference, this will the same story you are telling them, and often they put a value on that story.

Stories are what humanity buys into, simply because anything physical in nature starts as an idea or blueprint first. From building a house to putting a man on the moon. Our trajectory depends on our personal stories more than we give them credit for.

– – –

Keep Thinking,

Steve.