Pardeep Sehgal

𝗪𝗵𝘆 𝗱𝗼 𝘀𝗼𝗺𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝘁𝗵𝗿𝗶𝘃𝗲 𝘄𝗶𝘁𝗵 𝗵𝗶𝗴𝗵-𝗽𝗿𝗼𝗳𝗶𝘁 𝗺𝗮𝗿𝗴𝗶𝗻𝘀 𝘄𝗵𝗶𝗹𝗲 𝗼𝘁𝗵𝗲𝗿𝘀 𝘀𝘁𝗿𝘂𝗴𝗴𝗹𝗲? 40 years ago, the average profit margin in the S&P 500 was ~6%. Today, it’s ~12%. But the best companies? They’re operating at 30%+ profit margins. 📊 What’s driving this gap? The best companies aren’t just executing better—they’re operating differently. They have mastered three core differentiators: 1. 𝗥𝗲𝗹𝗲𝗻𝘁𝗹𝗲𝘀𝘀 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝗘𝗳𝗳𝗶𝗰𝗶𝗲𝗻𝗰𝘆 & 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻: The top-performing companies use AI, automation, and data-driven insights to eliminate inefficiencies. 78% of CEOs are increasing AI investments to drive cost efficiency and margin expansion. Leaders in AI adoption operate at 2x higher productivity than laggards. 2. 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗣𝗼𝘄𝗲𝗿 & 𝗩𝗮𝗹𝘂𝗲 𝗖𝗿𝗲𝗮𝘁𝗶𝗼𝗻: The best companies don’t compete on price—they compete on value. High-margin companies invest in differentiated products, premium services, and customer loyalty to sustain pricing power. Apple, Microsoft, and NVIDIA maintain 30%+ profit margins by continuously innovating and leading in their categories. 3. 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗔𝗹𝗹𝗼𝗰𝗮𝘁𝗶𝗼𝗻 & 𝗗𝗶𝘀𝗰𝗶𝗽𝗹𝗶𝗻𝗲𝗱 𝗚𝗿𝗼𝘄𝘁𝗵: High-performing companies reinvest in areas that create the most long-term value. 80% of value creation comes from just 20% of business initiatives. They focus on high-margin, high-growth segments while optimizing costs in lower-value areas. 𝗧𝗵𝗲 𝗧𝗮𝗸𝗲𝗮𝘄𝗮𝘆: 1. The best companies don’t just grow revenue—they grow profitably. 2. They don’t just manage costs—they maximize efficiency, pricing power, and strategic investments. 3. They don’t just follow trends—they shape markets and set new industry benchmarks. Thoughts?

@thegarybrecka 14078...14768 average

How many steps have you taken so far today??

@CoachDanGo 1. 5 eggs 2. 10oz sweet potato 3. 1 serving kimchi 4. 1 serving cottage cheese 5. Salmon (amount vary day by day) 6. Greek Yogurt with berries

Question for people under 15% body fat: What's one meal you eat on most days?

@JeffBezos Congratulations!

@alojohhardcore @ross0ner @kiszal It would be great if you can share the names of those two companies. Thanks!

@elonmusk @SpaceX @xai Congratulations!

To the stars! @SpaceX & @xAI are now one company

𝗧𝗵𝗲 𝗠𝗶𝘀𝘀𝗶𝗻𝗴 𝗗𝗶𝗺𝗲𝗻𝘀𝗶𝗼𝗻 𝗶𝗻 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗧𝗵𝗶𝗻𝗸𝗶𝗻𝗴 Most teams miss this step Most smart people don’t fail because they make bad decisions. They fail because they stop thinking too early. I’ve seen this pattern repeatedly in boardrooms, and “high-potential” leadership teams. High IQ. Impressive resumes. Yet progress stalls. Here’s why The trap smart people fall into They solve problems from one dimension only. When something breaks, they default to the lens they know best: • Leaders call it a strategy problem • Technologists call it a platform problem • Finance calls it a cost problem • Operations calls it an execution problem Same problem. Different labels. No resolution. That’s not strategic thinking. That’s domain reflex. A real example: A company I worked in the past kept missing growth targets. The executive narrative: “The market is saturated.” So they: • hired better salespeople • tweaked pricing • doubled down on incentives Nothing moved. When we zoomed out, the real issue surfaced: • Sales didn’t trust Product • Product optimized for features, not outcomes • Leadership rewarded speed, not learning This wasn’t a market problem. It was a system + incentive + belief problem. Growth returned only after leadership stopped asking: “How do we sell more?” and started asking: “What behaviors are we unintentionally rewarding?” Different altitude. Different outcome. What strategic thinkers actually do They don’t rush to answers. They change the dimension of the question. Instead of asking: • What’s broken? They ask: • Where is my thinking constrained? Instead of: • Who’s wrong? They ask: • What perspective am I missing? Instead of: • What’s the fix? They ask: • What pattern keeps repeating? A simple practical test Next time you’re stuck, run this in order: 1. Technical lens: What’s failing operationally? 2. Human lens: What beliefs, fears, or incentives are driving behavior? 3. System lens: What structures make this outcome inevitable? 4. Time lens: How did we get here, and what will this create 12 months out? If all four point to the same answer, you’re probably right. If they don’t, you’re not done thinking yet. The uncomfortable truth: Most people stop thinking when their identity is threatened. The moment the problem suggests: • “Your leadership style might be the issue” • “Your expertise might be incomplete” • “Your success model might be outdated” Defensiveness replaces curiosity. That’s where growth dies. The real advantage going forward: In an AI-accelerated world, knowledge is cheap. The edge belongs to people who can: • hold conflicting ideas without panicking • think across domains without oversimplifying • stay curious when certainty feels safer That’s not talent. That’s trained thinking. Strategic thinking isn’t about being smarter. It’s about staying open long enough for a better answer to emerge. What’s a problem you kept trying to fix until you realized you were asking the wrong question?

Highly recommend this article.

@DavidSacks Congratulations @chamath You have one of the best framework for investing. Happy for you.

Chamath’s haters in absolute shambles right now. Congrats Bestie!

@MedicalMedium @dr_ericberg @bryan_johnson Curious for your response.

Collagen Scam Exposed You Can’t Eat Collagen To Build Collagen Collagen supplements have been a massive trend but the truth is simple. You cannot build collagen in your body by eating collagen. That is not how the body works. People who are chronically ill do not receive real help from these products because they don’t do what they are said to do. To build collagen, you need specific building blocks that collagen is produced from, not to consume collagen itself. Medical Medium information teaches you the real tools that rebuild your body from the inside out. Skin Potion: medicalmedium.com/blog/skin-poti… Medical Medium 101: medicalmedium.com/medical-medium…

Just finished reading "1929: Inside the Greatest Crash in Wall Street History and How It Shattered a Nation" by @andrewrsorkin over Thanksgiving break. As someone fascinated by business and finance, this book felt like a thriller: greed, power plays, and human folly unfolding in real time. Sorkin's fresh access to diaries and records brings the chaos alive. Highly recommend if you're into markets or psychology. My 5 key learnings from the book: 1. Debt is the silent killer in crises: The 1920s boom was fueled by easy credit and margin trading, pulling future wealth into the present. But when optimism flips to panic, overextension devastates everything. Lesson: Leverage amplifies wins and wipeouts. 2. Human emotions drive markets more than math: Greed, overconfidence, and herd mentality blinded investors to warning signs. Sorkin shows how "collective delusion" during prolonged booms makes us ignore risks. Reminder: Stay grounded, avoid FOMO. 3. "This time is different" is a dangerous illusion: Financial innovations like 1920s investment trusts created false security. History repeats because we dismiss past lessons. Vigilance and diversification are key defenses. 4. Regulatory inaction worsens disasters: Backroom manipulations and ignored alarms let speculation run wild. Political gridlock delayed responses, amplifying the crash. Today, it underscores the need for oversight to curb systemic fragility. 5. Optimism is America's superpower and Achilles' heel: The era's boundless faith in progress was inspiring, but unchecked, it led to ruin. Sorkin ties this to resilience: Crashes test us, but they also spark reforms. Highly recommend this book. Enjoy reading.

@suhanisehgal16 @natbrunell @saylor wow...learning now about your investment😀

I’m a high school student and make about $900 a month. I’ve been saving and investing everything for college, but this week something changed. I watched @natbrunell’s conversation with @saylor and it pulled me into a 5-day deep dive on Bitcoin. For the first time, money, energy, and long-term thinking actually clicked. So yeah… I just put my entire month’s earnings into MSTR. Most of you will probably give me different reasons not to invest in #MSTR but I did my homework, and I’m convinced it’s the right move for me. It may be a small amount to others, but it’s a big step for me. Thanks @saylor for breaking down Bitcoin in a way even a high school student can understand. Excited to keep learning and keep going.

@nejatian Low carbs and zero pessimism? Sounds like the ultimate 'keto' strategy for Opendoor 2.0 - cutting the bloat in iBuying while fueling AI driven gains. What's one bold prediction you and team made post-dinner?

We had our first Opendoor 2.0 board dinner last night. Two things were in short supply: 1. Carbs 2. Pessimism

@APompliano Your letter is full of insights. I shared it with my daughter, who’s in high school, and she’s been reading it for the past year. it sparked her interest in business and macroeconomics. Thank you for doing what you do best!

I write a daily letter about macroeconomics, stocks, bitcoin, and technology innovation. It is read by more than 270,000 people, including billionaires, hedge fund managers, and independent investors. You can subscribe here: pompletter.com

@ashishkr9311 All the best. We know you will do great.

Decided to leave Tesla. It's been an incredible ride leading the Optimus AI team. We went all-in on scalable methods — swapping the classical stack with reinforcement learning & scaling dexterity by learning from videos. AI is the most significant bit to unlock humanoids.

@nejatian How about rethinking from scratch than incremental improvement ?

Bug request. Send me all the bugs you've seen in Opendoor. Please DM me any instance when you've tired to sell a house to Opendoor and it has not worked for you. Why did it not work?

@FitFounder Did 125 pushups today😀

If you can do 10 pushups you're stronger than 85% of men in America.

@coldhealing Follow your passion. This will matter in the future

If you were advising a widely-talented 17yo today who wanted the safest path to the upper middle class what college major would you recommend? I genuinely don't know. The world is changing a lot. It's probably not computer science. Maybe it's mechanical engineering or math?

@elonmusk @xai I feel like you will meet this goal much sooner😀

The @xAI goal is 50 million in units of H100 equivalent-AI compute (but much better power-efficiency) online within 5 years

@davidasinclair Agree but sleep play an important role😀

Longevity is earned in the gym, the sauna, and the kitchen

@MrBeast Hi.....Looking forward to your message

I’ve sent thousands of messages today my thumbs are literally hurting lol. If you’re a creator and didn’t reply to the previous tweet or dm me yet plz do! August 1st will be the biggest creator collab in history and I want you apart of it.