Dr. Eric Haseltine

And so the military R&D that's going on,

is happening outside the military in Silicon Valley.

Yeah, right, right, right.

And you're seeing this happen with, you know, Anthropic and the Defense Department and so forth.

And so that is exactly what's happening right now.

But so truth in advertising, I have a relationship with Lockheed.

OK, let's disclose.

Yeah.

Which makes me, you know, have to be careful about what I say.

But there's two sides to every story.

Um, if a defense contractor like Lockheed or Northrop or RTX is doing something, it's for one reason and one reason only their customer told them to do it.

They don't do things just to, uh, you know, add to their profit and so forth.

In fact, those businesses aren't very profitable.

When you look at profit margin, they have to only make between 10 and 15% maximum on a cost plus their profit margins are not good at all.

Their return on capital can be pretty big because the government can pay for some of the capital.

But generally speaking, they're not high multiples.

They're very low multiples.

Right.

And the reason is they're not big growth.

Yeah.