Maybe it’s the DOGE ripping to the moon. Could be the NFTs setting auction records. Or the red hot M&A market. The SPAC wave within an IPO tsunami?  The point is it feels a little frothy out there. “Too much money chasing too few ideas” they have traditionally said. Does feel like there are a ton of ideas out there though?

What’s different this time? Are we in the late stages of a bull market or is a transformational industrial revolutionary age upon us? The democratization of media, its speed, and wide range of coverage is certainly a contributing factor. The ability for cult like groups to form quickly and action fast follower-ship into stocks like GME or crypto “assets” like DOGE is unlike anything we’ve seen before. So yeah, it seems a little frothy out there.

Do you talk to your team about investments? Their finances? Money is a personal thing but pop culture ain’t. These trends are pandemic pop culture at this point! Your team is surely spending some time thinking about it. GameStop and Netflix might have the same brand awareness at this point. You can’t avoid these stories if you turn on…anything.

Tech startups, finance, and pop culture are more intertwined now than ever before. It does feel a little different.

What is the same?

High valuations are eventually a byproduct of really good businesses that have top competitive positions, generate cash, and ride secular tailwinds. Companies that leverage technological shifts in industries that serve customers in better, faster, and cheaper ways. Over the long term.

But still, look out. There are some signs the up and to the rightness is slowing. Coinbase and Applovin IPOs last week dropped from their targeted listing price and set issuing price, respectively. UiPath, the revenue process automation giant, rose gently on its opening day of trading. Netflix legit ran out of new subscribers to drive this week! Seriously who hasn’t signed up for Netflix yet? That’s how much they’ve grown! And the market reacted accordingly. Valuation reckonings come for us all.

So the goal is still the same. Build strong businesses that become cash flow machines and generate an above average rate of return on the cash invested in them. Invest in good projects that create value for customers. Try to avoid the noise of the DOGE and all that other stuff. Or at least entertain it for the pop culture fun that it is. Maybe some of it will be real? A lot of it is fascinating, no doubt.

But if you’re not a pro (you’re not) and you don’t have the time to spend on it (you don’t) leave it for someone else. Your team certainly should! The party may end soon or it may not. Every valuation must be grown into or cut down to a reasonable size to reflect eventual realities. So just…keep an eye out. It’s frothy out there!