Invest Like the Best with Patrick O'Shaughnessy

Dan Sundheim - The Art of Public and Private Market Investing - [Invest Like the Best, EP.460]

1115 snips
Feb 24, 2026
Guest
Dan Sundheim
Dan Sundheim, founder and CIO of D1 Capital Partners who manages public and private stakes in companies like SpaceX and OpenAI. He contrasts public vs private market dynamics and explains why he backed Anthropic. Discussion covers LLM business models compared to Netflix and Spotify, AI’s impact on software and hyperscaler compute risks, and the firm’s GameStop stress test and strategic changes.
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INSIGHT

Private Markets Offer Scarcer Fundamental Angles

  • Private markets are less competitive because fewer investors look at each deal, making deep fundamental analysis more valuable.
  • Public markets are the most competitive globally since many participants pursue different short-term strategies, creating unique inefficiencies for long-term stock pickers.
INSIGHT

LLM Returns Depend On Scaling Laws

  • LLM companies are capital intensive and the core debate is whether scaling laws keep returns on that capital attractive.
  • If scaling laws slow or enterprise adoption lags, huge up-front compute spending could yield weak or delayed economic returns.
INSIGHT

LLMs Are Netflix Meets Spotify

  • Dan frames LLM businesses as a hybrid of Netflix and Spotify: big up-front fixed assets with high incremental margins plus personalization-driven stickiness.
  • Models may be similar across providers, so user data and personalization become the durable moat like Spotify playlists.
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