And even now, running huge multibillion-dollar corporations, he still loves working with small companies. SpaceX has a policy of working with hyperspecialized smaller firms. Specifically, it tries to: “Leverage specialized, small, nimble, or local suppliers that enable us to achieve our goals.” Remember those words: specialized, small, nimble. JOEL: These are EXACTLY the kinds of companies DOGE is going to want to help roll out AI across the government. ROB: It is... Elon and David Sacks expect things to move FAST. If you’ve ever worked for a giant corporation, you’ll know that’s rare in big business. The bigger the company, the slower things move. That’s why Elon loves small companies. SpaceX uses 3,000 different suppliers, rather than working with one or two big contractors. In fact, when you look at its supply chain, you find some really small companies. One micro-electronics firm it works with called Filtronic has just 133 employees. Another is a veteran-owned small business called Technical Micronics Control. When you dig into the details, you find it has a sales team of four, a marketing team of three, and an IT team of just one person! JOEL: He loves working with smaller companies that just get things done... and I think that’s exactly what we’re going to see play out in DOGE PHASE II. Remember, even with Elon gone, it’s his philosophy that drives everything DOGE does. JON: And Elon isn’t alone in favoring small companies... There’s already been a bill proposed that would give a massive advantage to smaller AI companies.
Last year, two senators put forth a bill called the Protecting AI and Cloud Competition in Defense Act. The idea behind the bill is simple: To make it easier for smaller firms to win government contracts... And to break the monopoly Silicon Valley tech firms have when it comes to these deals. That bill got proposed before Elon even came to Washington. But based on what you’ve just been saying about his love of small companies, it’s exactly the kind of thing he’d like to see made into law. The Stocks Most of Wall Street Can’t Touch JOEL: This is where things get really exciting... Because a lot of these smaller companies are effectively off-limits to Wall Street. If you’re a fund manager with $10 billion dollars to invest, you can’t really touch a $250 million stock. If you did, you’d end up buying so much of it that you’d effectively control the company. No fund manager wants to do that. So, what ends up happening is Wall Street basically ignores the smaller end of the market. It makes sense... Why bother analyzing companies you can’t really buy? That means there are some companies that have Some of these stocks are great businesses. Tesla, Nvidia, Amazon, Apple... they all started out as small caps no one knew about. It’s just that while they’re small... no one is looking at them. One report I saw called smaller stocks “ the undiscovered country for investors .” And there are thousands of these stocks out there. There are about five times as many small- and mid-cap stocks as large caps. literally zero analyst coverage. No one is even looking at them.
REVIEW BY JULY 18
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