Latest / The Curve / Australia’s Wealth Divide BC and AC.

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Australia’s Wealth Divide BC and AC. · The Curve

0:01
Welcome to this episode of The Curve Weekly.
0:04
This is where we read the finance news so you don't have to.
0:07
I'm Vic Harris.
0:08
I am a finance professional and have spent many years making money for other people.
0:16
in this week's episode we give you a update on the netflix warner brothers saga now if you haven't
0:25
kept up well go back and listen to a few episodes because oh my goodness this keeps getting more and
0:30
more juicy and paramount the other bidder for warner brothers has tried to sweeten their deal
0:36
a bit so we update you on that uh we also talk about an iconic and a classic shoe brand within
0:44
Nike that is really actually weighing it down financially.
0:48
Google has a massive, massive
0:51
financial flex, which we'll run through and explain for you in much, much detail.
0:55
And it's
0:56
to do with the AI space.
0:57
We can't have a Curve Weekly without mentioning AI.
1:00
And we're updating
1:01
you on BC and AC.
1:04
We don't mean before Christ and after Christ.
1:06
This is before COVID and after
1:08
COVID.
1:09
And the massive wealth disparity that's occurred in Australia between people who bought
1:13
properties bc and people who bought properties after covid or ac but before that we have a new
1:21
temporary studio and we're very excited to show you this is what life would be like if we lived
1:31
in new zealand the studio yeah it's so good thank you honestly i've been trying to keep it a secret
1:38
but it's hard when you record video i know but it is quite hard to see because it's it was only
1:43
one shot yeah i did think wow it's looking so good there but i just didn't know what the context was
1:49
so okay we'll probably give a bit of backstory because this time last year it was a bit of a
1:54
shit show trying to record i was like we can just use my parents bedroom it's fine and then they had
1:59
like people staying oh it was just a bit and there was a bed taking up the whole room and my dad
2:03
bliss was like i'm being quiet and then he'd like put on the coffee machine and the kettle was so
2:08
It was all go.
2:11
Anyway, Vicks completely transformed a room into an actual studio.
2:16
Like, it looks amazing.
2:17
I think I should be an interior designer.
2:19
Genuinely, if all else fails, I would say the same.
2:21
Well, I actually had a lot of help.
2:25
What do you mean?
2:25
All this beautiful furniture has been loaned to us.
2:28
So we don't own it.
2:29
This is not, we don't get to keep it.
2:31
I mean, we can.
2:32
Because I was going to say, I actually think I almost like these chairs and the table more
2:36
than what we have in our studio in London.
2:37
I know.
2:37
I reckon they shipped to London.
2:39
Anyway, it was KU Studio in Auckland have very kindly loaned us these beautiful seats, tables, benches.
2:48
Is the rug theirs too?
2:49
I know.
2:49
It's so nice.
2:51
I feel very luxurious.
2:53
Same.
2:54
And there's like a beautiful bowl.
2:55
Is this from there too?
2:56
Yes.
2:56
Yeah.
2:57
It's so good.
2:58
Also, Vic's framed.
2:59
Well, actually, I thought she'd purposefully framed them for us, but actually we got sent our podcast awards.
3:05
Yeah.
3:05
And they're framed in our studio.
3:08
They're very cute.
3:09
Here they are.
3:10
Best independent podcast.
3:11
Best education podcast.
3:13
I actually think we should take these to London.
3:15
I think we should definitely put them somewhere.
3:18
They're so cool.
3:19
Should I just put them up on the wall at parents' house
3:21
and when they get back?
3:23
You don't even have photos of me on the wall.
3:24
Thank you.
3:25
You know when you get sent your degree?
3:27
Oh, yeah.
3:27
Or you get your degree and most people frame it.
3:29
I did not.
3:30
Did you?
3:30
I don't even know what mine is.
3:30
Yeah, no, I have no idea.
3:32
I love it.
3:32
I love it.
3:33
It's so good.
3:33
Yeah, and the chair swivel, which is so good.
3:35
They're nicer than the ones in our studio.
3:37
I love the kind of beige-y colour rather than off-white.
3:40
Yeah.
3:41
It's just they're quite comfortable.
3:43
I'm like sort of already slouching back.
3:45
I know.
3:46
It's so much beautiful stuff.
3:47
I was like.
3:48
Did you choose it?
3:48
I wanted to be like, oh, can you throw in a few extra things for me personally?
3:51
It'd be great.
3:52
Just put on the work.
3:52
Did they design the space or did you choose what you wanted?
3:56
I chose it.
3:57
No.
3:58
No, they were very helpful.
3:58
They were like.
3:59
You're taking credit.
3:59
Yeah.
4:00
I was like, I just need two chairs and a table.
4:03
And then, bless, it was a rug.
4:05
It was a bench.
4:05
It was some bowls.
4:06
And I was like, oh, okay.
4:07
She knows what she's doing.
4:09
No, so they're just a beautiful homewares store.
4:12
And I reached out to them.
4:13
And she, bless, was a huge fan of the podcast.
4:16
Oh, that's so good.
4:17
Don't you love it?
4:18
It's such a good starting point.
4:23
And, yeah, just incredibly helpful.
4:25
And it's perfect.
4:26
Also, I think mum and dad should just keep this as a podcast studio.
4:29
I agree.
4:29
if anyone needs to rent a studio.
4:31
Yeah.
4:32
Yeah, so thank you, KU Studio,
4:34
for helping us out.
4:35
Big, big help.
4:36
We would have been sitting on the ground otherwise.
4:37
No, no.
4:38
Honestly, last year it was a bit dire.
4:39
Yeah.
4:39
It would take us like 45 minutes
4:41
to set up each podcast
4:42
because we had such limited space
4:43
with the way we could shoot it.
4:45
And then we'd have guests
4:45
and it would be so awkward.
4:46
It was embarrassing and hot.
4:48
Yeah.
4:48
I remember it was so awkward.
4:50
Yeah, it was.
4:50
Oh, you can sit there
4:51
and you can sit there.
4:52
Yeah, it was bad.
4:53
I'll just stand.
4:54
Oh, I actually podcast from the bed.
4:57
I don't think people realise how,
4:59
You know, people do record podcasts from their bed, but I don't know.
5:03
There's so much effort, more effort that we put in, but I think it's great.
5:07
I prefer to walk into a beautiful studio like this.
5:09
It puts you in the mood.
5:10
Totally.
5:11
It's the difference between getting dressed up and not.
5:14
Like sometimes I find in the morning, this is a really weird example,
5:17
but if I don't feel good or like I don't like being in track pants and working
5:22
because I just don't feel like I'm ready for the day.
5:25
It's like during COVID.
5:26
I had to put on shoes.
5:28
Oh, yeah, that's right.
5:29
I just had this, if I put on shoes, it was like I was ready for the day.
5:33
Ready for the day.
5:34
And I'd put on my shoes and walk from my bedroom to the kitchen.
5:37
And now it's still a thing.
5:39
If I work from home, I have to put on shoes.
5:40
It's so weird.
5:41
Yeah.
5:42
I just, I like often people will have their home, you know, like baggy pants or like they
5:48
don't get dressed.
5:49
There's no way any good work is getting done if I don't feel like I'm.
5:52
Also, I have a bone to pick with you, with our producer, with everyone listening.
5:58
Oh no.
5:58
I am sorry I do not know my analogies well.
6:02
I am sorry I get them wrong most of the time.
6:06
Okay, wait, you need to give context for what,
6:07
because some people might not have listened to last week's episode.
6:09
No, so last week I said, oh my giddy arms.
6:16
You didn't say that.
6:17
You were trying to say that.
6:18
Sorry, no, I said, oh my giddy arms.
6:22
Yes.
6:22
And I meant, well, I didn't even know,
6:24
I didn't actually know the actual saying,
6:26
but it's, oh my giddy aunt.
6:29
It sounded like you said ghillie arms.
6:31
Oh, no, I said ghillie arms.
6:32
That's right, and it's ghillie arms.
6:33
Yeah.
6:34
Anyway, my brain only has capacity for so much, okay?
6:39
And that is financial content.
6:41
Yeah, yeah.
6:42
So cut me a break, okay?
6:43
No, no, cut me a break.
6:45
There we go.
6:49
Cut me some slack.
6:50
Cut me some slack.
6:52
Wow.
6:53
Oh, my God.
6:53
Couldn't have scripted that one better.
6:57
Honestly.
6:57
I'm just so glad someone picked up on it
6:59
I think I'm so used to your analogies being twisted
7:02
That I didn't even notice at the time
7:04
Yeah
7:05
Great to have you back on this side of the world
7:07
Honestly I'm back
7:07
How are you doing?
7:08
My hair's frizzy again
7:09
This isn't coffee number four
7:10
My skin's turned to shit again
7:12
It's all great you know
7:14
I'm loving the humidity
7:16
Your hair does look great
7:17
It's so chaotic isn't it
7:19
I don't know what it is about this weather
7:21
But my hair and skin hates it
7:23
It is very muggy at the moment in New Zealand
7:26
What I will say, this is completely random.
7:30
I really want to go to some fitness classes in Auckland.
7:33
I want to go to some weights type classes.
7:35
Nice.
7:36
I'd love to know if anyone is based in Auckland and has any recommendations on good fitness
7:40
classes.
7:41
Because I just feel like, what?
7:42
Sala.
7:43
Yeah, but it's quite far for me because I'm living in the depths of suburbia right now.
7:48
I'm kind of more in, I'm not really on Ponsonby side.
7:51
Anyway, sorry, super niche.
7:53
Yeah, any recommendations.
7:54
Any recommendations, let us know.
7:56
I've actually bought ankle weights and when I go for a walk,
7:59
I walk with ankle weights.
8:00
Oh, do you?
8:00
Yeah.
8:01
Does it work?
8:02
Yeah.
8:02
It's just like an extra bit of work.
8:05
Oh, my God.
8:05
That's quite good.
8:06
Because sometimes walking, you're kind of like, you know,
8:08
it's just a walk.
8:09
But then if you actually put ankle weights, it's like a walk.
8:12
Is it getting fit legs toned?
8:15
I don't know.
8:15
I think it's just more weight, so therefore using more muscle
8:19
is just more of a strenuous exercise.
8:20
Right.
8:21
How heavy are they?
8:21
That's quite intense.
8:22
I feel like I've found out.
8:23
One kg.
8:24
Oh, okay.
8:26
No, but I bought two KGs.
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And oh my goodness, it was like this big.
8:30
It was like this massive turd on my ankle.
8:35
No, I think if you're going, you can't be obvious.
8:37
It'll look like you're walking around with an ankle monitor.
8:39
You know you want it to be subtle and tucked away under your bootlegs.
8:41
I couldn't even walk in them, let alone like go for a walk in them.
8:44
Yeah.
8:45
Anyway.
8:45
That really takes me back to my gymnastics days.
8:47
We used to have lots of ankle weights.
8:49
Leg lifts with ankle weights.
8:51
Yeah.
8:51
Have you watched the Winter Olympics?
8:53
No.
8:54
I should.
8:54
Why?
8:54
What's wrong with me?
8:55
where do I watch it?
8:57
Skysport
8:58
but like who has Skysport?
8:59
I know
9:00
no seriously
9:00
I mean like
9:01
do we watch online?
9:02
yeah I think so
9:03
you can do Skysport
9:04
one of my friends
9:05
is the presenter
9:05
is a presenter over there
9:06
she's amazing
9:07
so is my boyfriend
9:08
yeah yeah
9:09
yes he's doing the night shift
9:10
he just came home
9:11
and he just had a beer
9:12
at 7am
9:12
it was quite wild
9:13
he comes in and he's like
9:14
how you going girls?
9:15
I was like wow
9:16
you look like shit
9:17
actually when I hugged him
9:18
I thought you smell like a brewery
9:19
but I didn't want to say that
9:20
because it's 7 in the morning
9:21
I was like surely not
9:22
goes to a cafe
9:23
for breakfast
9:24
and orders a beer
9:25
but actually this is dinner.
9:26
I was like, imagine if there will be people out there
9:29
that have this kind of shift work.
9:30
Yeah.
9:31
And literally I wake him up and then I'm like, good night.
9:36
Weird.
9:36
So weird.
9:37
Yeah.
9:38
Very bizarre.
9:39
Yeah.
9:39
And he has a shower and I'm like, hurry up.
9:41
I want to go to sleep.
9:42
You know, like it's kind of.
9:43
How weird.
9:44
So weird.
9:45
Being on different time zones.
9:46
And like having dinner by myself because he's asleep.
9:49
He nearly made a steak at seven in the morning.
9:51
I know.
9:51
So no, I haven't been watching it.
9:52
Have you had any highlights to share?
9:54
No, I just like all the tricks and stuff, you know.
9:57
I'm sorry.
9:58
Could we sound any less educated around sport?
10:02
No.
10:02
Me, no.
10:03
Where do I watch it?
10:04
You, I like the tricks.
10:06
I do.
10:07
It's the fun Olympics, right?
10:09
I don't know.
10:09
They do like, you know.
10:13
Are we talking about skiing?
10:14
Skiing, yeah.
10:14
And then like the half pipes and then like the ice skating.
10:17
They're the fun sports to watch.
10:18
I wonder if it's higher accident prone.
10:21
than because it is quite like action isn't it there was lindsey von she was one of the oldest
10:27
competing woman 41 she just had like knee construction surgery or something so she was
10:33
skiing with a brace and this was like her comeback like she'd been training for years and like
10:38
went down everyone's like woohoo and then 13 seconds in absolutely totaled herself got
10:43
helicoptered out like i know oh god quite sad i was like god like you just don't hear much of
10:49
athletes over the age of 40 really not even i mean it could be anyone 40 or 20 is that still
10:55
true yeah that's three years you know like it's not as though she's like an old woman i know i
11:00
know but that's what i mean like you look at these tennis players and i'm like gosh they look like
11:04
old men but actually they're younger than us some of them you know i'm like wow you really do peak
11:10
as an athlete quite young yeah i mean that's why you need to sort out your finances early
11:15
it's true yeah your career is peaking gonna peak a lot quicker than most people
11:21
although that's the finance angle i can bring that's all like really nice
11:26
let's talk about what's happening in the world there's some really big interesting news happening
11:31
this week yes now we've got a bit of an update oh oh god on what on netflix oh yes the saga that
11:39
continues.
11:39
Saga.
11:40
I genuinely
11:41
hope they make a Netflix series out of this
11:43
Netflix deal.
11:44
I think they will.
11:45
Yeah.
11:45
It'd be weird to watch yourself being
11:47
played.
11:47
Normally it's like 50 years after.
11:49
Yeah.
11:50
But I wouldn't be surprised if in like
11:51
12 months time they're like, hello.
11:53
Who would
11:53
play you if you're in a movie?
11:56
Margot Robbie.
11:58
Yeah, I get told
11:59
that I look like Margot all the time.
12:01
I actually am going to get my hair cut and dyed
12:03
because I'm hating the brown crown
12:05
that I've got.
12:06
Anyway, I was looking at
12:07
photos of Margot Robbie being like, what's her hair
12:09
doing stunning stunning have you watched withering no but could you put two more hot people i know
12:16
together i saw a photo something with his hand going into her mouth and i was like i think it's
12:20
quite sexual say no more oh yeah yeah yeah i'm hoping so yeah anyway um we had about 10 seconds
12:29
of finance chat you were kendall jenner would play you oh stop it stop it she's she'd be
12:35
to get a work done but anyway who cares i reckon disney disney plus or something would do the
12:40
netflix drama you have to get an independent or like amazon prime or something you know
12:44
although you would need insight into like the characters and what was going on and you only
12:49
would get that from the inside but if netflix did it they'd have a one one-sided view you know true
12:54
for those who have missed this there is a huge media acquisition happening and it's quite
12:59
fascinating you know there's some stories that we come back to we can you know a couple of weeks and
13:04
we give it a break and we come back to it.
13:06
It's just the story that keeps on giving, isn't it?
13:07
I know, it is.
13:08
It's like, oh, what are we going to hear this week?
13:11
So anyway, Warner Brothers is essentially for sale.
13:15
Netflix has wanted to buy it.
13:17
Paramount came in also wanting to buy it.
13:19
There's kind of two bids for Warner Brothers going on.
13:22
Warner Brothers has said we want to go with Netflix,
13:24
but Paramount's putting its foot down and going,
13:27
no, no, no, no, no.
13:28
Our deal's best interest for shareholders, you know,
13:30
and they're making it very difficult.
13:32
They have now come out.
13:33
So Paramount has now come out and sweetened its deal more to get Warner Brothers across the line.
13:40
Imagine just being Warner Brothers and sitting there going, what have you got?
13:43
Oh, what have you got?
13:44
And what else can you give me?
13:45
It's a bit strip poker-y, isn't it?
13:46
It's a bit like, I'll take my top off.
13:47
Yeah, yeah, yeah.
13:49
But it's like, oh my God, here, I'll give you a bunch of flowers and chocolates.
13:52
It's like, no, no, I'll give you flowers, chocolates and wine.
13:54
What is it like?
13:55
It is really, it's almost like trying to pick a teammate when you're at school or something.
14:00
You know, oh, cool.
14:01
I see that and I'll raise you your five chocolate bars
14:05
and I'll also throw in a free Powerade.
14:08
It's like trying to win over a girl.
14:10
Yeah.
14:10
Oh, yes, that's quite good.
14:12
But she's interested in him and you're like,
14:14
well, no, I'll buy a better car.
14:15
I've got a beach house.
14:16
Yeah, yeah, yeah.
14:17
So Paramount has now said that it will cover the termination fee
14:23
for Warner Brothers that it will have to pay Netflix
14:26
if it ends these negotiations.
14:29
So Warner Brothers has got to deal with Netflix
14:31
because there's a lot of lawyers involved.
14:33
There's a lot of costs associated with this.
14:35
So it's kind of like, don't F us around.
14:38
If you're serious, you're serious.
14:40
And so Warner Brothers and Netflix have a deal that if it falls over,
14:44
then Warner Brothers has to pay Netflix $2.8 billion.
14:49
Billion?
14:49
Billion, yeah.
14:51
And is it just Netflix?
14:53
What about to?
14:53
So it's kind of like a make good being like, look,
14:56
let's sign a little agreement saying, a big agreement saying that,
15:00
you know we're in this we're in this we want to help you get across the line and we will help you
15:06
get there and if we if we don't we'll pay you 2.8 billion essentially so Warner Brothers will pay
15:12
Netflix 2.8 billion dollars if the deal doesn't go through so it's kind of they're basically trying
15:17
to say don't take us for a ride don't take us for a ride but what who's taking her for Warner
15:21
Brothers don't take Netflix for a ride and Paramount don't try and entertain both of these
15:25
deals like that's not fair on paramount and netflix if you're entertaining both deals
15:33
exclusively work with us to get this deal across the line and warner is like yep cool we are we
15:39
promise we will we promise so much in fact that we will pay you 2.8 billion dollars if it doesn't
15:43
go through does that make sense so basically yeah but is paramount still and then paramount's come
15:50
out and said, look, Warner Brothers.
15:53
If you bail on them, we'll pay the 2.8.
15:55
So it's like now there's nothing to stop you from entertaining both deals.
15:59
Oh, God.
15:59
Do you know what I mean?
16:00
They literally throw everything out.
16:02
Yeah.
16:03
It's essentially, well, yeah, it's a ginormous penis competition.
16:08
Can we just for a second talk about, is Warner Brothers that amazing?
16:11
I know.
16:11
Like, it feels like they're fighting over, like, a really bitchy girl who's actually
16:16
not that nice.
16:17
But also what will happen.
16:19
if there is a Netflix Warner Brothers deal that puts that company that new company in a much
16:25
stronger position which Paramount is now like going to be if that goes ahead oh shit we've
16:30
now got a much stronger competitor so we need to get it's like what's the lesser evil yeah yeah
16:36
exactly it's like and also we think we can be better and stronger with Warner Brothers
16:40
as part of our company but it's kind of we need to prevent this as much as we can because if it
16:46
goes through we're kind of effed over but same with netflix as well that's why they're both
16:54
yeah god imagine the bargaining power you'd have imagine the whining and dining of the
16:59
i'm actually not sure about that if you could just book another dinner yeah for us to just talk
17:05
about um i actually think we need to discuss this over um a holiday in the caymans yeah i feel like
17:10
the maldives is where i'm gonna need to be making this decision but why what i don't get is like
17:16
how long is this going to go on for at what point is someone just going to get off because it sounds
17:21
like netflix were getting a bit annoyed being like don't entertain this with paramount because
17:27
and we're going to pay these you know like it feels like it's starting to get to that point
17:31
so also paramount so remember paramount is controlled by a very trump friendly family
17:38
the allison family i forgot so kind of another reason why you know this is getting very political
17:44
as well but they have also said they'd pay warner brothers shareholders a ticking fee
17:51
which means that for every quarter so every three months that the transaction isn't closed by
17:59
december this year they get an extra 25 25 cents on each share yeah so that is paramount saying
18:09
that yeah so this is to say like if the deal if the deal closes and again there's kind of there is
18:16
an agreement made and then the deal close there's so much you know kind of in terms of merging the
18:20
two businesses and all that that will take so much time so that's why it seems like ages away but
18:24
these things take time you're dealing with two massive companies so even if Warner Brothers goes
18:29
okay and all the shareholders agree we're gonna go to Netflix or we're gonna go with Paramount
18:34
like there is so much that then needs to be done so what Paramount is saying is like they're
18:38
saying to shareholders we will close this deal as quickly as possible because and if we don't
18:44
and if things get dragged out we will pay you more so like they're really trying to get Warner
18:48
Brothers shareholders across the line I think if Paramount wins it's a political financial situation
18:52
because let's be honest who's the better who would you want to be partnering with it would be Netflix
18:58
it wouldn't be Paramount and I think I'm a bit uh biased because I own Netflix shares so I'm like
19:03
Netflix get in there buy it do what you have to yeah you know um whereas if I was a Warner Brothers
19:07
shareholder i'd be like well whoever's gonna pay me the most yeah you know so or if you don't
19:13
either you're kind of like incentives yeah i actually i really want to buy netflix shares
19:18
because i don't right now but i'm still on team netflix yeah i think you've got time
19:23
it sounds like probably jump around a bit you know if they do sign a deal with paramount
19:27
then netflix share price will probably go back up because this has been a huge distraction huge cost
19:33
but then you've also got the threat like what i was saying before of paramount and warner brothers
19:36
now being a bigger competitor to Netflix.
19:39
But yeah, Netflix's share price hasn't done that well
19:41
because of this deal.
19:43
The amount of cash they're going to have to pay for it,
19:46
which means it puts their own business at risk, right?
19:48
Because they've got less cash on their balance sheet,
19:51
like all of that.
19:52
Yeah.
19:53
Yes.
19:54
We will keep you updated, listeners.
19:56
Don't you worry.
19:57
Don't you worry.
19:58
Did you talk about Pepsi?
19:59
I knew you were going there.
20:01
I was looking at it and I thought,
20:02
yes, that's what I'd like to talk about next.
20:04
So Pepsi has announced that they've raised their dividend for the 54th consecutive year in a row.
20:12
54 years.
20:13
That's older than me and you.
20:15
I just can't imagine a business having enough money to pay out dividends like that for such a long period of time.
20:23
Yeah.
20:24
I mean, the idea of a dividend is that they're making so much money that they don't need to keep any more of it within the business.
20:30
They can give it to the shareholders.
20:31
Yeah.
20:32
Like dividends are a percentage of profits that are paid out to shareholders because, yeah, the company's like, we don't need the million dollars that we've generated.
20:41
We'll keep half a million.
20:42
We'll pay out half a million.
20:43
So the fact that they've increased that every year shows just how consistent their profits are or how consistent their view on the world is and their growth plans, which, you know, we've had a COVID pandemic.
20:55
We've had a global financial crisis.
20:57
We've had some pretty monumentous occasions and it's still racist evidence, which is wild.
21:04
The fact that Pepsi has been so successful over such a long period of time, I would have thought in the world of, you know, eating well and going to yoga and running, that Pepsi would be struggling way more than being in a position to pay out even more of a dividend.
21:23
Well, they have 200 brands, over 200 brands, and they've got snacks.
21:28
They've also got their drinks.
21:30
Yeah.
21:30
Like they have 7-Up, Mountain Dew, like so many, Gatorade, all of those.
21:35
They own all the unhealthy drinks in every petrol session.
21:38
They've got 70% market share in the sports drinks market.
21:41
Oh, wow.
21:42
Yeah, which kind of lands into the health and wellness issue.
21:44
So is PepsiCo kind of like a uni-lever bit of snacks and drinks?
21:48
Yeah.
21:48
It's the consistent, boring company, the stable one, the one that's defensive.
21:55
And it sells a billion products a day.
21:58
Crazy, crazy.
21:59
They've actually also bought SodaStream.
22:01
So that's probably their health angle.
22:03
I do love SodaStream.
22:04
Yeah.
22:05
They paid $3.2 billion for it in 2018.
22:08
SodaStream, also, don't you think that that business, someone was just in their kitchen thinking,
22:12
I just need to blow off a bit of bubbly water.
22:15
It's pretty genius.
22:16
Yeah.
22:16
I love sparkling water.
22:17
if only I had a little contraption that could fizz my water.
22:20
Boom, there's $3.2 billion.
22:22
Honestly, wild, wild, wild.
22:24
But sometimes when I think about the idea of business ideas,
22:27
you assume all of those easy ideas have been taken.
22:31
Yeah.
22:32
But it also shows me that you don't have to be a genius.
22:34
You don't have to think of a new tech platform with innovation.
22:37
It's just solve a problem that people have.
22:39
Or that you have.
22:40
Yeah, that you have.
22:41
Yeah, exactly.
22:42
I don't want to buy San Pellegrino every time I need sparkling water.
22:45
I just want to have it in my kitchen all the time.
22:47
Exactly.
22:48
I'm like, what could we do?
22:50
Yeah, yeah, yeah.
22:51
But Warren Buffett owns a lot of PepsiCo, actually.
22:55
Of course he does.
22:55
Yeah.
22:55
It's a dividend paying company.
22:57
Yeah, exactly.
22:57
And it's a consistent, these are actually called dividend kings, which I know you call them
23:02
dividend queens.
23:03
Any company that has paid a dividend consistently, sorry, has raised its dividend consistently
23:09
for 50 years.
23:10
So wait, so sorry.
23:11
So 50 years is the dividend king mark.
23:13
Yep.
23:13
That's when you like join the dividend king club.
23:14
Would there be that many different things?
23:16
There's quite a few.
23:17
Really?
23:17
Procter & Gamble, 3M, Coca-Cola, Walmart, Kimberly-Clark, Johnson & Johnson, Walmart.
23:24
God.
23:25
Walmart.
23:25
Have you seen the Walmart share price?
23:28
No.
23:28
You think Amazon is dominating?
23:30
Compare Amazon's share price with Walmart.
23:33
Walmart is a sleepy giant that's no longer sleeping.
23:35
Wow.
23:37
It's up 163% in five years.
23:41
Oh my God, I'm just looking at it now.
23:42
Even in the last six months, it's up a lot.
23:44
Amazon's share price is up 26% in five years.
23:47
Why is it doing so well?
23:50
People need to buy their...
23:52
You said this ages ago.
23:54
You did say this ages ago when you were like...
23:56
It's not an AI company.
23:57
But everyone gets so caught up in what's the next AI.
23:59
It's like there's a whole lot of companies out there
24:01
that have nothing to do with AI that are also still killing it.
24:05
Thank God.
24:05
They just don't get any airtime.
24:07
Yeah.
24:07
I mean, Walmart, I can't even really...
24:09
It's basically just a ginormous supermarket,
24:11
like cheap chain supermarket, right?
24:13
Yeah.
24:14
Well, it's just like a supermarket, but it sells everything.
24:17
It'd be like in New Zealand, the warehouse, Woolworths combined.
24:22
Yeah.
24:22
So this is a big green flag.
24:24
When I saw this headline, I was like, massive green flag.
24:27
Green flag for PepsiCo or for those businesses in general?
24:31
Green flag for PepsiCo.
24:32
Just investing in, and I'd love to do this case study.
24:35
If you just invested in the Dividend Kings,
24:37
and I'm sure there's like a fund that does,
24:41
how well you would have done.
24:43
But the fact that they've raised their dividend again, this is the 54th year.
24:48
If you want some stock steady defensive companies in your portfolio, which when the market has done so well recently, I'd be putting some companies, some defensive companies in my portfolio.
25:00
Defensive.
25:00
It's like having your goal defense in there, your wing defense.
25:04
Yeah, exactly.
25:04
You know, you're having, you've got your little centers that are the maybe AI and they're the constant running around the court.
25:12
and then you've got the defensive ones that are like,
25:14
oh, you thought you were going to have a disaster?
25:15
Don't you worry, I'm here.
25:16
Yeah, yeah.
25:17
You need your goalie, but you also need your wingers.
25:19
Yeah, yeah, yeah.
25:20
I don't know what sport.
25:22
We really started the podcast sounding incredibly unsporty.
25:25
Yes, we did.
25:26
Also, I want to talk about something which is the wealth in Australia,
25:30
BC, and the wealth in Australia, AC.
25:32
It's before Christ and after Christ.
25:34
We're going religious with this one.
25:35
Yeah.
25:37
I loved this.
25:38
When I first saw the headline, I thought it took me a while to get it.
25:42
Did you think we were talking about Jesus?
25:43
Yeah, yeah.
25:44
I was like, what is going on?
25:46
Who was investing before Christ?
25:49
I actually got this.
25:50
I went to the doctor and they were like, when did you last get your smear or something?
25:54
I don't know.
25:55
I was like, oh God, I can't remember.
25:57
They were like, was it BC or AC?
25:59
And I was like, and they thought that was so funny.
26:01
I was like, before COVID or after COVID?
26:03
And it was actually a good like ballpark.
26:05
I was like, oh no, it was before.
26:07
You know, and they're like, oh, you need another one.
26:09
And it was, yeah, it was quite a good.
26:10
I guess it's a five-year mark really.
26:12
Totally.
26:12
And it's like everyone kind of knows where they were, what they did or, you know, at that point in time.
26:18
So it is quite good.
26:19
A good benchmark.
26:20
Anyway.
26:21
Benchmark.
26:22
Benchmark?
26:22
We'll go with that.
26:23
Benchmark.
26:24
Yeah.
26:24
Anyway, in Australia, there's been a huge divide in wealth with Australians who bought homes before COVID and Australians who bought homes after COVID.
26:39
and can I ask you before you get into the story is this going to make anyone that doesn't own a
26:43
home in Australia or actually anywhere in the world feel really gutted with themselves maybe
26:49
yeah okay sorry sorry this is the thing that's shit about property is you could have always
26:54
bought it sooner and you would always be better off yeah which I hate because it makes everyone
26:58
feel like they've missed the boat constantly but it's the same with investing right could have
27:02
always bought last year and you'd be up 20 percent you know but like there is the thing is we take
27:08
a long-term view with these things.
27:09
There's going to be ups, there's going to be downs.
27:11
So if you've got the funds and you want to make that investing decision,
27:15
just do it.
27:17
Not advice, but you know.
27:19
Anyway, so people who bought property in kind of 2021 before COVID,
27:24
mortgage rates were super low.
27:26
So what they could, there was a lot of people buying properties
27:30
and a lot of people able to borrow debt.
27:32
So therefore, they could get on the property ladder.
27:34
And if that was one of you, you know, someone listening,
27:36
then they would be much more better off than someone buying after COVID
27:41
where rates, interest rates absolutely roofed it
27:46
and they're in a much worse off financial position
27:49
than people that bought before COVID.
27:51
Also, house prices went after COVID.
27:55
Not straight after, but a bit of a delay after.
27:57
Because it was everyone really all over the world was thinking,
28:00
get me home, get me to a nice space because I'm going to be stuck inside.
28:04
Yeah, we don't know how long this is going to go on for.
28:06
So there was like low rates and house prices went up substantially.
28:11
But rates take a while to move, right?
28:12
You can't just jack up rates overnight by 5%.
28:16
It would absolutely break the economy.
28:19
So they have to stagger them up.
28:20
So they were staggering them up.
28:21
House prices were falling.
28:23
And then all of a sudden there was also a lack of demand because everyone had kind of bought houses.
28:27
Yeah.
28:28
So there were these people that had bought houses at the peak and interest rates were rising on their debt that they'd borrowed.
28:35
so it was kind of like a the cluster so essentially if you bought before covid yeah you've done well
28:42
yeah if you bought when things were rising you're struggling or have done pretty badly because you
28:48
bought at a peak yeah yeah i mean and it was was there was a pretty fine line but yeah like it was
28:55
there was a pretty i guess opportunistic gap in terms of like the time when rates were ultra low
29:00
and then house prices absolutely exploded, which, I mean,
29:04
I wasn't a buyer then.
29:06
I bought a few years earlier, but I still got the benefit.
29:09
Really?
29:09
I'm still BC.
29:11
Oh, really?
29:11
Okay, right.
29:12
So it doesn't matter if you weren't buying it.
29:15
Well, I guess the increase is different depending on how close to that.
29:19
Yes, yeah.
29:20
If you were right on that mark, then you'd be, yeah.
29:23
I do feel for people who bought when it was really high.
29:26
It's so hard because there's, I mean, oh, God,
29:29
It would just be so devastating to have bought and it already lost quite a lot of value on something.
29:34
And even now, like in Australia, property prices are 50% higher than where they were in 2020.
29:39
And yet, but yet interest rates are also higher.
29:44
So you are going to have to borrow more debt at a higher rate to get the house that you could have probably afforded before COVID.
29:52
Does that make sense?
29:53
So yeah, it's just a worse time to buy now with interest rates much higher than they were.
29:57
How much did people benefit comparatively?
30:01
You know, you said you bought yours before COVID,
30:03
but it wasn't quite at that point where it was the opportunistic mark.
30:08
Can you put that in more tangible numbers?
30:10
Like how well or much better?
30:13
Yeah, I guess it depends on how much you borrowed,
30:15
but like the average wealth within the 25 to 34-year-olds
30:21
that bought property between 2020 and 2021,
30:24
their average wealth jumped 63% in five years.
30:30
So if your net worth or your wealth was a million dollars,
30:35
that's just jumped 63% in five years.
30:39
Shit.
30:40
That's a lot.
30:41
I know.
30:42
What about the – because, you know,
30:44
there's obviously we bang on about the Gen X generation
30:47
who bought property and did super, super well.
30:50
Yeah.
30:50
Is this almost like –
30:52
It's bet that generation.
30:53
Really?
30:53
Yeah, it's bet the boomer generation and it's bet the Gen X generation.
30:58
In terms of increase in value or wealth over a period of time.
31:01
Yes, yeah.
31:03
Gosh, that's crazy.
31:04
Yeah.
31:05
Because we're always complaining.
31:06
They got in at such a great time, blah, blah, blah.
31:09
I guess that's more of the entire generation than just a small percentage.
31:12
And I guess you can sit here and be like, oh, damn it.
31:14
But like it's – you kind of just have to take the cards you've been dealt a bit
31:19
when it comes to investing.
31:21
you know you're never gonna who knows what's around the corner right it could be house prices
31:27
absolutely fall off a cliff and all those statistics mean nothing mean nothing like it's
31:32
trying to because actually unless someone sells now yeah and make 63 percent in the five years
31:38
since they bought it they it might do something else and then it goes down by 60 and they've
31:42
made nothing and because they didn't actually crystallize their win yeah yeah you're right
31:47
And it's like, it doesn't mean that just because you didn't buy property then that you're a failure.
31:52
It's like, it's just more being aware of how the market moves, really.
31:57
And there'll be more opportunities down the track.
32:00
And you kind of just need to start investing where you can.
32:03
You know, if you had to overstretch yourself to get into the property market in 2020, 2021, that probably wasn't the best idea either.
32:11
You know, like there's, it's just very situational, I think.
32:15
but yeah quite amazing the like the contrast between buying before and after and I've got
32:21
friends that bought after and they're still feeling the pain it's quite sad I guess you
32:26
when it comes to property and this is what we speak about on the property podcast quite a lot
32:30
it's so it's such an exercise to buy and sell property it's not just like buying and selling
32:38
shares where you can be more strategic about it there has to be an emotional personal tie to the
32:45
purchase well it doesn't have to be you can just be buying as a property investor but generally
32:50
it's it's a lot harder oh totally and also not many people have that much spare money to be able
32:56
to have their home and then investment properties yeah yeah sort of one or the other and it's like
33:02
even the deposits are huge like sometimes investing in the stock market it is it is way more liquid
33:08
you can buy and sell you know you can get the money in and out when you need you can start
33:12
with a smaller amount if that's for you that's fine you know like don't I don't know this whole
33:17
like you need to get on the property later need to do you know like it's don't stress this out
33:21
it's so many other ways I mean I was that so I can't actually sit here and be like don't worry
33:26
it's fine because I was so desperate to buy yeah I don't know I just I guess you're always going
33:32
to look around and think that person did that at a better time than me that person has a cooler top
33:37
than me there's always someone more successful hotter more personality funnier not in my case
33:43
no there's no one funnier but you know but it is you kind of you could constantly look around and
33:48
be comparing or thinking what if or you couldn't just be constantly trying to do better and learn
33:52
and make good decisions but actually just know that you know you're doing your best yeah because
33:57
otherwise it's exhausting and you just literally will never get to a place financially where you
34:01
feel proud of what you've done comparison is the thief of all joy yeah and if i take anything from
34:05
this it's like the property market goes up and down interest rates go up and down they affect
34:11
house prices and we've got an incredible property podcast that explains all of this but just never
34:16
overstretch yourself financially it'll cause you way too much stress and headaches going forward
34:21
it's not worth it and do you do you mean that in relation to looking around you and if you think i
34:25
want a bigger house or i want to yeah that's all better that if you're having to really stretch
34:30
yourself it's it's not worth it oh it's not worth it yeah yeah because investing is incremental you
34:35
know it's and I I do feel like um if I look back on the last five years and I think holy shit I've
34:42
come a long way in five years but at the time along the way it's quite hard to think oh wow
34:47
I've done it's it's the compounding of investing in hindsight you kind of have to trust the process
34:53
of it it takes time right like five years seems like a long time but it actually goes bloody
34:58
quickly yeah and same with 10 years and all of that so it's like the fact i've nearly had my
35:02
house house for 10 years i'm like wild it seems like yesterday absolutely wild also some news on
35:11
nike and converse so converse is actually owned by nike i didn't know this yeah did you yeah but
35:19
they're not i kind of forgot has it been in the nike family for a long time 23 years wow yeah
35:24
They paid $300 million for it in 2003.
35:28
2003?
35:29
2003.
35:30
That sounded really weird.
35:31
But don't you think $300 million at the time would have been an enormous amount of money?
35:35
Oh, totally.
35:36
But now we're talking about SodaStream being bought for billions.
35:40
I know.
35:41
It's also the only brand that Nike owns.
35:43
Well, not that it bought, but that's under the Nike brand.
35:46
You've got Nike and Converse, essentially.
35:48
Do you know what I mean?
35:50
You would have thought, oh, maybe this is part of a strategy and they're going to buy
35:53
yeah lots of other brands and have a bit of a like a house house of brands but they've got
35:58
their flagship brand nike um but converse converse has been really really struggling
36:04
and its sales are at a 15 year low they've never been this low so when i look at that and think
36:13
you paid 300 million for a company and now its sales are at a 15 year low probably wasn't the
36:18
best purchase you know so yeah but i think i don't know you buy a brand and you think or business and
36:25
you think that sales are going to go up and up and up and up and up or that you can add value or
36:28
improve it don't you think in since 2003 the amount of money that converse would have made
36:33
would have definitely repaid that 300 million dollar investment of buying converse but you
36:38
value a business on the future revenue and the future growth so has it been going down for a
36:44
while basically yeah yeah so um they've really struggled and the reason that i've put this in
36:48
the curve weekly is that they have sent all employees have been told to work from home
36:55
and you'll get a call about whether you still have your job holy shit that is so stressful yeah
37:02
so um there's no news about like how many job cuts or anything but not good news for converse no
37:07
what do you think about because for me converse i think sometimes with fashion labels it's it's
37:13
hard because things go in and out of fashion yeah i would have said converse is one of those tried
37:18
and true stands the test of time i still love converse it's quite iconic yeah chuck taylor's
37:23
but that's it right oh they have lots of other yeah and they tried to do like the platform ones
37:30
the skinny ones the thin ones it's like the classic well for me yeah it's just the test of
37:35
time yeah i think when you can't continue to grow and innovate and you just have one iconic
37:42
product that's great but also like there's no future growth what's next yeah so yeah nike's
37:50
actually have it nike's got its own issues it's got huge problems and with sales in china
37:56
the tariffs all of that and its share price is down 55 in the last five years and now it's got
38:03
converse as problem child that's also not doing well that's so stressful so i don't know when
38:07
you're trying to turn around a big business and you've got this wart on the side that's
38:12
So what do you think someone could buy Converse
38:14
And that they would get rid of it for lower
38:16
I think they'd probably divest it or
38:18
Yes sell it to someone I mean
38:20
Puma's in the same position
38:21
You know there's a lot of sportswear
38:24
Companies that are struggling right now
38:25
Do you think it's just the industry then perhaps rather than
38:27
The fact that Converse can't innovate and find new product
38:30
Yeah there's just so much
38:32
Competition now right we've got so much
38:34
Choice you can just go online
38:36
And order from wherever
38:38
In the world and you know like
38:39
There's so many businesses that are doing well that have the exact same thing.
38:42
Yeah.
38:42
You can buy online and blah, blah, blah.
38:45
Yeah.
38:46
Under Armour is another company.
38:47
Absolutely.
38:48
Really, really suffering.
38:50
Maybe it's apparel.
38:51
Like sports apparel is just doing badly.
38:53
And the tariffs.
38:53
I mean, the tariffs have hit them, right?
38:55
Their tariff costs went from $9 million last year to $294 million.
38:59
Wait, who's this?
39:00
Under Armour.
39:01
Oh, my God.
39:02
Imagine our cost base.
39:04
We've factored in $9 million for freight and logistics.
39:09
and now it's 294 million like you just you can't even really plan for that wow it's just
39:15
that is that is huge huge losses that's so scary and made a net loss of 450 million like what
39:21
happens in this sort of situation if all of these businesses i mean this is probably a really good
39:26
example of if you have invested in heaps of different companies like this like nike and
39:30
under armour and they're all doing badly because you haven't diversified the types of companies
39:35
that you've invested in, your portfolio would be looking terrifying.
39:38
Pretty dire, yes.
39:40
But what happens with this is the companies that have a lot of cash
39:44
on their balance sheets.
39:46
Can fund this awkward time.
39:47
Or can get, yeah, if Nike and Under Armour had,
39:51
then they can fund this awkward time.
39:53
Or the ones, you know, you might have, I don't know,
39:56
an Adidas or a Lululemon.
39:57
I mean, Lululemon's not doing well,
39:58
but you have other competitors on the sidelines going,
40:01
What do you mean?
40:03
We're just going to wait for you to
40:05
Oh, and then they go buy it
40:07
Then the shark starts circling
40:08
And then they're like, okay
40:09
You can't continue to trade
40:11
And we can buy your business for peanuts
40:14
Oh, it's so shit, isn't it?
40:16
Yeah
40:16
But yeah, but it's
40:18
God, I honestly feel it
40:19
A little struggle street for
40:20
For Nike and Converse, Under Armour
40:23
God, it's a bit of a negative
40:25
Yeah
40:25
Weekly really, isn't it?
40:26
There's a lot happening
40:27
Yeah, sorry
40:28
Let's talk about AI then
40:31
Oh, my God, because it's this new thing.
40:33
It's this new thing that stands for artificial intelligence.
40:36
I do like the name more than AI.
40:38
Artificial intelligence sounds so fun.
40:41
I feel like we're off on a spaceship somewhere.
40:43
AI is just so used now that you can't forget what it stands for.
40:46
It also doesn't flow off the tongue, AI.
40:48
Neither does chat GPT.
40:49
I'm sorry.
40:51
I agree.
40:51
I keep calling it PT.
40:53
Chat GPT.
40:54
Oh, just chat GPT it.
40:55
It's like.
40:56
Yeah, I know.
40:56
I agree.
40:57
I reckon it'll be chat soon.
40:59
Just chat it.
40:59
Yeah.
41:00
I put it in chat and it said, yeah.
41:03
Although I was speaking to someone yesterday and they were saying that chat is now almost one of the worst models.
41:09
It is continually changing, right?
41:11
Like these AI agents are like humans.
41:14
You feed them more information, they get better and better and better.
41:17
And they learn and they learn and they learn.
41:19
And there's going to be better programs and platforms that come out because they learned off better data and like all of that.
41:26
So it's, yeah, it's stressful staying up with.
41:30
I must say that's one thing
41:31
if anyone has any recommendations on the best
41:34
podcasts or articles to read or people
41:36
to follow on Substack to stay up with what's going
41:38
on I really I almost need to have
41:40
half an hour a day where I'm just like
41:42
but I'm also like I'm not stressed about it
41:44
no but I feel like a granny
41:46
I'm so far behind yes but you're not
41:48
like there is like
41:50
so many people that are
41:52
more behind than you are
41:54
I don't want to be like you know the
41:56
three quarters of the pack at the back you know what I mean
41:58
I want to be passing the baton.
42:00
The baton?
42:00
Baton.
42:01
Alphabet, so that's the Google parent company,
42:04
has raised $32 billion in debt by issuing a 100-year bond.
42:11
So we have heard of all these companies investing billions
42:16
and millions and billions into AI and all of that.
42:18
Like Amazon's going to spend $200 billion in 2026 for data centers for AI.
42:24
like but this is really rare to issue an 100 year bond now a bond is like an iou so this is
42:34
alphabet going so can we borrow some money off you and we'll pay you back in 100 years with interest
42:41
and you're like yeah cool i'll give you 1 billion of that 32 and they go to someone else and they
42:45
get another billion you know like yeah but people aren't gonna be alive in 100 years so how does
42:48
that work yes so you can you can sell those you can sell those bonds to you know you might get to
42:54
50 years and be like oh I'm gonna leave this to my granddaughter and yeah you know that kind of
42:57
thing um or you can sell it there's like a market for selling and trading and trading bonds but
43:02
what it shows from google or alphabet is they're locking in this interest rate this bond for 100
43:13
years so they're saying like the reason you issue a long-term bond it's like a big flex they're
43:19
they're paying interest on that 100-year bond and the actual money borrowed doesn't get repaid
43:25
for 100 years that's so ridiculous yeah think about that shows to me they see this need for
43:32
our in the potential it's not a short term oh my god we need to scramble we need to invest and then
43:37
pay back the money you know asap we need to you know ai is not going to be around for that long
43:42
that like the fact that they're saying that it's going to be 100 years we're going to pay it back
43:45
in 100 years.
43:46
So is the idea here what we take from it is that AI is a long-term investment.
43:50
AI is not a flash in the pan.
43:52
It's going to be around forever.
43:53
It's going to be embedded into our lives.
43:55
And businesses are so confident in that that they're investing
43:58
and loaning money for AI purposes and they're not going to be paying it back
44:03
for such a long time.
44:04
And what that says is this is a long-term investment.
44:07
And the fact that it raised $32 billion in 24 hours for a 100-year loan,
44:14
essentially wrong.
44:14
It's not all outrageous.
44:16
But that's also, if you think, look, I'm going to lend you money at a certain interest rate and you're going to pay me back in five years time, cool.
44:24
You know, there could be risks within that five years, but it's kind of, it's visually I can comprehend five years.
44:29
for me to sign up and lend you money at an interest rate which could be five percent whatever it is
44:36
for a hundred years shows that i have so much confidence in you that i am willing to take that
44:43
risk for the long term you know what i mean for us for that many people to jump on it is absolutely
44:47
the immense interest and trust funding and support for ai do you and so with something like this when
44:58
they issued these bonds would that have gone on to the public market how did people get access to
45:02
that yes yeah yeah did you would you have bought it I mean I just don't really like bonds just
45:07
don't really interest me it's boring I'd rather buy google also I thought the point of bonds is
45:11
that people buy bonds because they want that steady more you know recurring type revenue it's
45:19
more for older investors but feels very counterintuitive to have bonds that are for AI
45:23
which is like a very fast-moving agile bond for google like that's probably where the like
45:30
defensiveness comes right only companies that are very stable and the fact that google can issue a
45:38
hundred year bond shows that it's going to be around in a hundred years time do you know what
45:42
i mean it's usually it's usually government it's like blue chip companies my point is that because
45:46
normally people that are older that get bonds yeah wouldn't you be wanting a bond that's going
45:51
to be returned to you within a shorter space of time because older people generally invest in bonds
45:56
a hundred year payback is so long you get a lower return on that though because it's lower risk
46:02
right so you get you get a higher return on a hundred year bond because you're there's so much
46:06
more that can happen in 100 years does that make sense so right so what they might what they're
46:10
getting from a money back in their accounts because they're taking such a big risk because
46:14
it's 100 years actually they might be getting quite a high income from yeah that that bond
46:19
It's like a term deposit.
46:20
You know, if you put it in for three years or five years versus three months, you get a higher rate.
46:26
Got it.
46:27
It's a bigger commitment.
46:28
Yeah, it's a bigger commitment.
46:29
Yeah.
46:29
So there's definitely that.
46:31
But it is kind of counterintuitive that this money is being used to fund AI, which is, you know, deemed to be still very new technology.
46:39
Kind of more risky, you would think.
46:40
But it's actually a safer investment because it's a bond.
46:43
Yeah.
46:43
But it's effectively the company that's paying you back.
46:46
So yeah, the fact that a company like Google, a tech company, if it defaulted on this bond would be like so, so bad.
46:56
Because also bonds normally only from governments and like the most sturdy companies.
47:00
And the reason that it's a lower return generally than a stock is because it's less risk that they'll default.
47:08
Like you generally can only get bonds from the most well-established like institutions.
47:13
So yes, there's a bit of risk involved, but it's not like a share.
47:16
Or like governments, because governments can't issue shares, right?
47:20
The governments are owned.
47:21
They're not owned by the people.
47:23
So their only way is to do debt, essentially.
47:27
That's quite interesting.
47:28
Why would they not have issued shares and done this as shares?
47:30
Why would they have done it as a bond?
47:32
Oh, now we're getting into something real.
47:34
But essentially the return on, sorry, the cost of issuing debt,
47:39
sorry, the interest rate they have to pay on this debt,
47:41
would have been lower than issuing shares.
47:44
It's basically a cheaper way to get money.
47:45
Yeah, and also like people get pissed off if you're constantly issuing shares
47:48
because you're constantly diluting shareholders.
47:50
Also, it's a pretty amazing story and green flag to see a 100-year bond,
47:55
don't you think?
47:56
Yeah, it's just a big flex.
47:58
Like their share price, you would think that that would have seen a bit of a spike
48:02
when it's like, hi, we've got a 100-year bond.
48:04
Yeah, I mean they've now got more debt though.
48:06
Oh.
48:06
So, yeah.
48:07
But it's more like we're going to be around for 100 years.
48:11
We are so confident in our trajectory and we are, yeah.
48:15
anyway it just goes to show like people are getting quite crafty in terms of
48:18
how they're funding all this ai spend as well so yes that's all i have for you i will there's
48:25
actually some stuff that's coming from the community oh nice yeah and i'd loved it there's
48:29
a voice note actually that i wanted to play hey girls uh firstly this feels super awkward to do
48:36
i've never actually done anything like this before but you um your work and what the content
48:42
that you put out makes me feel so passionate about networking and talking out and just doing
48:47
stuff like this which I normally wouldn't um basically what I wanted to know is I'm a I'm a
48:54
new investor really um I'm living in Wellington New Zealand and we uh well I find it really
49:01
difficult to find investing platforms that I can manage so I have shares but I know that there's
49:07
like Hatch and then I know that there's like private people after your talk about Japan I was
49:15
really interested in looking at you know like Japan stocks and almost like the S&P 500 for Japan
49:21
or China things like that but obviously you can't buy some of that stuff on Cheesy's so
49:27
I'm just wondering like what platforms are accessible to us and how do we actually find
49:32
that information because I probably know that there's a bit involved in terms of you can't
49:38
say or recommend certain products.
49:40
I imagine you can't say, look, She's This is a great option or
49:44
whatever because there'll be, I don't know, your behind the scenes business legality stuff about
49:49
it.
49:49
But it would be really interesting to know, is there places that we can go to get informed
49:55
besides chat GPT?
49:56
Where do I go and how do I know what's good fees?
50:01
Things like that.
50:02
Even
50:02
like kiwi saver like how do i know that my kiwi saver is good fees like what's the bench line and
50:08
can we talk about it more um so yeah i just want to know investing platforms yeah how do we do it
50:14
thank you and i love your work thank you so much for what you do bless i love the voice note can
50:21
everyone send us voice notes it's so fun to hear from people so much more real right isn't it you're
50:25
like oh my god people listen to this podcast um oh so much in there okay okay okay where do we start
50:30
do you know what I think we should do as an aside or what yeah no you go oh I was gonna I was gonna
50:36
say it could be quite cool to have a page on our website we're building a new website at the moment
50:41
where we feature the our best picks in each area you know like for KiwiSaver really be clear on
50:50
on fees the best for you know ethical the best for returns like blah blah blah like the same with um
50:56
The platforms like sort of highlight our favorites, have them featured and show the pros and cons so that people can then make that decision for themselves.
51:04
Because there's not like one best of everything.
51:07
There's different that suits different people, depending on what you're looking for.
51:11
Some people might want the lowest fee.
51:13
Some people might want more comprehensive data on what they're trading.
51:18
Some people might want all this stuff just in one place, you know, like it might be quite helpful for us to.
51:22
We can do that for trading platforms, not for funds, though.
51:26
What do you mean?
51:27
Like we can't recommend.
51:28
So when she was like,
51:29
as to as much as you can recommend,
51:31
we can recommend trading platforms
51:32
because we're not,
51:33
that's not an investing decision.
51:36
You then go on there
51:37
and you choose what you want to invest in.
51:38
And to be honest,
51:39
I think Sharesies is the best in New Zealand.
51:41
They have the most choice.
51:43
Yes, there's a few things
51:44
that we can't get on there,
51:45
but I think there is also so much we can
51:48
that, you know,
51:50
Japan, for example,
51:51
you can get Japan ETFs on there.
51:53
that's a really good way around it so it's like rather than feeling like you need to buy direct
51:58
yeah you can yeah you can do etfs i think etfs is a really good thing to highlight because for
52:03
example you might be thinking and this is actually really interesting you bring this up actually
52:06
because i've been thinking the etf space we could do a bit of education help in terms of like here
52:12
are the top three or not top three but here are three suggestions for if you do want to invest oh
52:17
is that recommend oh it's so hard and also it changes right like the best like what is the best
52:24
is it the highest performing the lowest fit yeah like we can suggest places to go to make those
52:28
decisions yourself so we can suggest shares we can suggest hatch you know all of that but saying
52:33
and this is the best investment that's where we kind of have to draw the line but could we say
52:38
but could we say if you're using shares we've we've put 10 um we've highlighted 10 etfs that
52:45
you can access on Sharesies and broken down so that you can understand and make your own decision
52:50
on what's best for you because it's not we're not telling them to go and choose one of those it's
52:55
like this is how this is yeah you know we'll chat about that yeah I think this is like we'll chat
53:00
about that but it's a really good thing to bring up and thank you so much for asking it's really
53:04
helpful to know the places that people are getting stuck we can absolutely work on this but essentially
53:08
I use Sharesies in New Zealand yeah and don't stress yourself out about finding a trading
53:12
platform in Japan or Asia or the UK or like unfortunately we can't buy Europe or UK stocks
53:18
on Sharesies which is a bit frustrating but I use Stake for that but also I'm just I can kind of get
53:26
what I want on Sharesies you know unless there's one that I'm like really really wanting to invest
53:31
in a company that I'm really really wanting to invest in which is not on there but yeah most of
53:36
my 99% of my investments are on Sharesies.
53:39
And the stuff that you use Stake for is that when you
53:42
there's something you want to invest in yeah it's available there but not on shares lvmh
53:46
yeah is a classic one yeah louis vuitton louis vuitton mohine se which i've spoken about a bit
53:51
on the podcast is unfortunately not available in shares but they're getting better right they're
53:55
adding they're adding more they're getting more regions all of that more etfs so maybe it is
54:01
you know in the interim it's buying a luxury uh luxury retailer etf on shares for example
54:08
which includes our VMH.
54:10
So yeah, there's ways around it.
54:12
Getting creative.
54:12
There's no perfect answer.
54:14
And unfortunately, I think we will get to the place
54:15
where one trading platform can access everything.
54:19
But we've come so far, which is so great.
54:21
Even a couple of years ago.
54:23
The shares weren't even around.
54:24
You know, it's like, yeah, so we'll get there.
54:27
Just take time.
54:28
Hopefully that was helpful.
54:29
Thank you so much for your question.
54:30
Anyone that does have any,
54:31
we've got a link in our podcast show notes
54:33
to leave us a message on the Curve hotline.
54:35
You look very sweaty.
54:36
I'm sweaty.
54:37
I'm boiling
54:38
before when we were
54:39
having technicals
54:40
I took my top off
54:41
because I was just
54:41
needing to like
54:42
it's just so hot
54:43
we'll put a little
54:44
insert in the
54:45
in the YouTube
54:46
I mean
54:47
poor Emily
54:48
our producer
54:49
must have gone on
54:49
to the
54:50
when we started
54:50
recording and
54:51
seeing that I was
54:51
in my bra
54:52
oh my god
54:54
we're doing the porno
54:55
and that's time to go
54:56
bye
54:57
have a good week
54:57
everyone
54:59
thank you so much
54:59
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55:00
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55:37
Okay, quickly, The Curve was created to empower and
55:39
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55:43
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