The Prof G Pod with Scott Galloway – Conversation with Fareed Zakaria — The Conflict in Israel and the State of Foreign Affairs

Intro

In this episode of “The Prof G Pod with Scott Galloway,” Scott has a conversation with Fareed Zakaria about the conflict in Israel and the state of foreign affairs. They also discuss topics such as the role of board members, the IPO market, and the challenges faced by the Palestinians. Tune in to gain insights into these pressing issues.

Main Takeaways

Conflict in Israel and US Response

• Israel has become the economic and technological superpower of the region, marginalizing the Palestinians by making peace with Arab countries who fear Iran.
• Netanyahu is pushing forward to make a deal with Saudi Arabia to marginalize the Palestinians.
• Hamas’ objectives were to highlight the Palestinian cause, put Israel on the defensive, and get rid of Saudi normalization.
• The Israeli government focused on overturning judicial independence, normalizing relations with Saudi Arabia, and creating de facto annexations in the West Bank.
• Hamas is looking for a reaction and trying to bait Israel into a massive reaction.
• The situation has put a wedge between Riyadh and Israel.
• Saudis are frustrated with Palestinian leadership but can’t completely abandon Palestinians.
• Perception of empathy towards Palestine has increased steadily over the last 20 years.
• Gaza is the most densely populated place in the world, with 2.2 million people, 50% of which are children.
• The Palestinians want a state and political rights, not just economic aid and development.

Board Members’ Fiduciary Duty

• Board members have a fiduciary duty to represent the interests of stakeholders, not just shareholders.
• CEOs’ decisions are largely driven by what will move the stock price higher in the next 1-4 years.

IPO Market and Private Markets

• US IPO performance over the last 3 years has vastly underperformed the S&P 500.
• Among the 13 VC-backed companies that went public in 2022, not one was profitable.
• Private market investors are keeping gains from IPOs to themselves, rather than letting retail investors in on the gains.
• Companies are doing high valuation rounds from existing investors to give a fake signal to the market.
• Majority of IPOs are trading below their offering price.

State of Foreign Affairs

• The United States realized it was over invested in the Middle East after the war in Iraq.
• Everyone is jockeying for advantage in the post-American Middle East.
• Saudi Arabia has modernized more in the last two to three years than it did in the previous 50 years.
• The Republican Party is moving towards isolationism, which could lead to serious disorder in the world.

Summary

Conflict in Israel and US Response

In this episode, Scott Galloway and Fareed Zakaria discuss the conflict in Israel and the US response. They delve into the dynamics between Israel, Palestine, and other Arab countries, highlighting Israel’s economic and technological dominance in the region. The conversation touches on the objectives of Hamas, the actions of the Israeli government, and the challenges faced by the Palestinians. The discussion sheds light on the complex situation and the need for a comprehensive resolution that addresses political rights and statehood for the Palestinians.

Board Members’ Fiduciary Duty

Scott and Fareed explore the fiduciary duty of board members and how their decisions impact stakeholders. They emphasize the importance of considering the interests of all stakeholders, not just shareholders. Additionally, they discuss the influence of CEOs in shaping decisions based on short-term stock price movements. This insight provides a deeper understanding of corporate governance and the responsibilities of board members.

IPO Market and Private Markets

The discussion turns to the IPO market and the challenges it faces. Scott and Fareed analyze the underperformance of US IPOs compared to the S&P 500 and the lack of profitability among VC-backed companies going public. They highlight the trend of private market investors keeping gains from IPOs, limiting opportunities for retail investors. The conversation also uncovers the use of high valuation rounds to create a false market signal. These insights shed light on the complexities of the IPO market and its impact on investors.

State of Foreign Affairs

Scott and Fareed delve into the state of foreign affairs, particularly the role of the United States in the Middle East. They discuss the shift in US investment and involvement in the region following the war in Iraq. The conversation highlights the jockeying for advantage in the post-American Middle East and the modernization efforts in Saudi Arabia. They also touch on the potential consequences of the Republican Party’s move towards isolationism. These insights provide a broader perspective on the evolving dynamics of global politics.

Conclusion

This episode of “The Prof G Pod with Scott Galloway” offers thought-provoking insights into the conflict in Israel, the fiduciary duty of board members, the challenges in the IPO market, and the state of foreign affairs. Scott and Fareed’s discussion sheds light on complex issues and encourages listeners to delve deeper into these topics. Tune in to gain a deeper understanding of these pressing matters and their implications on a global scale.