This letter outlines Facebook's mission to make the world more open and connected by building tools for people to share and connect. It discusses how this can transform industries, businesses, governments and social institutions. The letter also explains Facebook's 'Hacker Way' culture of continuous improvement, rapid iteration and meritocracy. It lays out Facebook's core values of focusing on impact, moving fast, being bold, being open and building social value.

The letter discusses the launch and early performance of the Nomad Investment Partnership fund, highlighting two portfolio investments (International Speedway and Matichon newspaper) that were acquired at attractive valuations. The fund exceeded market returns in its first few months and had substantial cash holdings to deploy into new opportunities. The outlook was positive based on the discounted valuations of the current portfolio companies.

The letter highlights Amazon's exceptional growth in 1997, with a focus on customer obsession, infrastructure expansion, and long-term thinking. It outlines the company's philosophy, goals for 1998 including product expansion, and acknowledges challenges like competition and execution risk.