Latest / The Curve / TCW70: Birks, docs & stylish stocks.

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TCW70: Birks, docs & stylish stocks. · The Curve

• 0:00
  Hi and welcome to the Curve Weekly. The podcast that keeps you up to date with all the money,
• 0:06
  business and stock market tea. Everyone should experience for us at least once in their lives
• 0:10
  and Annie shouldn't miss out just because she can't afford it. Help me, I'm poor.
• 0:15
  How's your weekend, Bert? I love how we've changed this to a Monday so we can talk about
• 0:18
  our weekends. And you've done nothing. No, and we just spoke about our weekends.
• 0:22
  Oh yeah. We're loving it out before this podcast. Yeah, yeah, yeah. Oops. And we also did nothing
• 0:26
  exciting. We were both like, and also just a Monday record, just a bit like, blah, blah.
• 0:31
  Yeah. Like Friday, it's like, end of the way. Yeah. Yeah. Some chill. Yeah.
• 0:35
  Do you know I did have a big money went on the weekend? Well, it's not big, but I went to this
• 0:39
  Facebook Greenwich, which is this random. It's kind of, I think, like, a sort of a royal
• 0:44
  barat. You know how they have Kensington and Chelsea. Anyway, whatever. They have no one cares
• 0:49
  about us. But basically, I found a really cool vintage shop. And you know, when you walk into one
• 0:55
  and immediately, you're like, oh, this is full of cool stuff. And sometimes it's just like,
• 1:00
  it really hit on us. I walked in and I was like, oh no, like immediately I fell with belt.
• 1:06
  Like how fast is that? Nice. And it's Cardi. I got this really cool coat thing. Anyway.
• 1:12
  And when I went to buy it, like I never do this. I would never like, haggle. Oh yeah. You
• 1:19
  did it. I did. I was like, hi, like I really want to get all four of these things. But it came
• 1:26
  to 310 pounds. And I was like, is there, is there any discount if I get like a bunch of stuff?
• 1:34
  And she was like, I could do 280. And I was like, what about 250? I was like, where?
• 1:39
  She was like, coming from. Yeah. I was like, oh my god. And then she was like, I can't make
• 1:45
  that decision, but I can call the the boss. And I was like, okay, you know, I'll just wait.
• 1:50
  Anyway, it got down to 265. So I was 75, 85, 95. So I saved about 40 pounds, which is like 80
• 1:57
  New Zealand dollars. Nice. The other time that I did it in the week, you know, don't know what came
• 2:01
  over me. Maybe I was really looking for some content ideas. But I went to this pub with a friend,
• 2:06
  and we we ordered foams. And then hers came and they, you know, with your muscles and there was
• 2:11
  sand all in them. Like, she would open them up and they were black. And she's way too awkward
• 2:15
  to send it back. So she was like, no, it's fine, it's fine, it's fine. I was like, no, you can't
• 2:19
  eat that. Like, they're black. Like, they're covered in sand. Yeah. So the way it came over,
• 2:24
  and I was like, all right, go on, Katie, this is your time to shine. She was like, no, no, no,
• 2:28
  she just stared down. I was like, totally not going to say anything. So I was like, hey,
• 2:32
  like her food, is there any chance she could order something else? Because it's like, whatever.
• 2:37
  Yeah. She was dying, but also very grateful. And then with my food, it was like kind of
• 2:43
  inevitable to be honest. Like, it was not good. Like, there was soup. I had, I ordered steak,
• 2:47
  which was quite weird, but it was really chewy and weird. And anyway, when you came back to ask
• 2:51
  how the food was, I was like, good things. And don't say anything. And I thought, pick up your
• 2:57
  ball, so if you can't go and like try and get someone else to speak up and then not. So then I
• 3:02
  went back and I was like, hey, I also think you can do it in a nice way. You know, like, you can
• 3:06
  be like, yeah, look, it wasn't there, but it's like it was edible, but I just wanted to get some
• 3:11
  feedback since she, like it was quite overdone. You know, you don't have to be a dick about me.
• 3:14
  I'm not paying for it. You know, it's like, you can be, because I would want constructive
• 3:18
  criticism. So I would, whatever product I was selling. Well, I, so I went to the low and then I
• 3:22
  came back and I hit, like, managed to get a bit more confidence. I was like, hey, I was just
• 3:25
  wondering. And when you asked how the steak was, was that just a general queer show of the head
• 3:29
  feedback about it today? And he was like, oh, no, no, there's just a question. He's like, why is that?
• 3:33
  And I was like, oh, no, no, no, no, I did. I said, I was like, look, to be honest. And I,
• 3:38
  but I said it really nicely. Like, I wasn't expecting anything. I just said, oh, I didn't get
• 3:42
  to eat quite a lot of it because I was like, and he was like, I'm so sorry. I'm going to take that
• 3:46
  off the bill. You're like, maybe I thought quite like you obviously don't want to go around doing
• 3:52
  that every way to get a free meal. Because they're like spitting your food when they bring
• 3:55
  a bag out. It's bad karma to get dick on purpose. But I was like, I left there thinking, you
• 4:00
  know what, that wasn't the best experience, but the fact that they had such good customer service.
• 4:04
  Yeah. I would definitely go back, you know? How much of a red flag is it a guy you're dating?
• 4:09
  It's just like, rude to waiters. Oh, I just want anyone actually. I think anyone is rude to
• 4:15
  waiters. I am just like, absolutely not. I want to just crawl onto the table. To be honest,
• 4:20
  she's probably good for me to think about the way I behaved in that if I would have been at
• 4:24
  doubt by myself. But I really do think I did it in a way that was like, not brassy. I think
• 4:30
  what I can't stand is when people, it's almost like speaking down to, they're like, yes,
• 4:36
  they're serving you, but they're not your servant. No, yeah, yeah. And they're just the messenger
• 4:41
  from the chef and the barista and that, you know, like, if the coffee is shit, the food is shit,
• 4:45
  it's not their fault. No. Do you know what I mean? It's like, yeah, having worked in hot
• 4:49
  both so many years. When we used to get complaints, we're like, okay, I'd love to know if anyone
• 4:55
  remembers that in her hot soda. Oh god, I'm like, oh, I listened to this podcast and remembers
• 5:00
  her as a waitress. Can I have some feedback? I was terrible. Were you? Well, it was actually really
• 5:04
  good. But I dated a guy when I was like 14 who also worked together. Oh, yeah, I can't even imagine
• 5:10
  you dating 14. We broke up and we weren't talking to each other. I don't remember, our manager
• 5:14
  like took us aside and was like, you turning to sort your shit out. This is not a work problem
• 5:17
  and we were like, I didn't even know they knew we were dating. You know, I thought I was being
• 5:20
  so subtle. Oh my gosh. Anyway, anyway, we digress. We always digress. I know. And do you know why?
• 5:26
  I think we're going to have to reign in our like, random jerks. I got some good cheers. Do you? Yeah.
• 5:31
  Oh, amazing. Yeah. What's her nickname? So remember Birkenstock IPO. Yeah. It's actually done
• 5:37
  quite well. So for those of you who don't remember it IPO in October and IPO in $35 and it's now
• 5:45
  over $60. So it's up nearly 60% since this IPO. So it's pretty good. That is good. Yeah,
• 5:51
  considering the raft of IPOs we've had which haven't actually done that well. The raft? The raft?
• 5:55
  Is that a thing? The range variety? I feel like raft is not all we're looking for, but I know you
• 6:01
  may. The bundle. The amount? The graft. No, the graft. No, that's when you're like, I think that's
• 6:10
  learning. Yeah. I love that. I love Ireland. Which actually started again, if I. Anyway,
• 6:17
  so we've also had Doc Martins, which we were talking about. Yeah, because they didn't do that well.
• 6:23
  No. In their IPO in 2021 at four pounds, they're now at 87p. Sure. So they had a real tough
• 6:30
  tough one. Why when they're both in the same industry? And honestly, I feel like Doc Martins,
• 6:35
  if anything, could stand the test of time, maybe more so than Birkenstock. But they're similar
• 6:39
  in the sense that they've always stayed in fashion. They're reinvented themselves like why? Yeah,
• 6:45
  good question. Birkenstock's only been listed for less, we'll just over six months. Doc Martins had
• 6:50
  a few years under it's about being a public company. So who knows what's going to happen to Birkenstock,
• 6:54
  but you know, it's like you can't really compare apples with apples, but you're right. They're both
• 6:58
  footwear brands. They're both fashionable. And that leads me to our third footwear company that's
• 7:04
  about to IPO. Oh, can I guess it? Yeah, crocs. No, that's already listed. Oh, listen,
• 7:10
  would I know them? Is it overland? No, that's a shop. I just made it to the end.
• 7:21
  Clown? Golden goose. Sorry, there wasn't a clue. They just told you the board can brand? No,
• 7:26
  that's great. No, you know those sneakers. You would have seen them. They're like those distressed
• 7:31
  sneakers and they've got stars on them. Oh, yeah, yeah, yeah, yeah, yeah. I don't actually love those.
• 7:37
  No, I actually bought a pair when they first came out and I said, oh my god, cool. And they're like
• 7:41
  quite expensive. They're like, you're going to save it one of those? 500 to like $2,000.
• 7:47
  And I was like, no, no, no, I'm going to like them and I bought them and I remember I was in Sydney
• 7:50
  and I bought them from Tuchuzi. And I wore them and I instantly was like, they're dirty.
• 7:58
  But that's the whole look is that they're like roughed up. They kind of look like
• 8:02
  like off-white, like a stuffed shut paper bag. They're just like scruffy, they've got like glitter,
• 8:07
  they've got stars, they're like anyway. And I was like, no, it's fine, I can get past it and then
• 8:10
  like, keep looking at my shoes just wanting to wash my face. Like it was so, I just couldn't wear them
• 8:15
  in any way, resold them. But this is going to be the next footwear IPO. And it's going to IPO in Italy.
• 8:21
  Are they in Italian brand? Yes, yeah. Italian, Italian company, they're going to list for about
• 8:26
  $3 billion dollars. Well, that was the estimate. So to put them in perspective,
• 8:31
  Dot Marlin's is like $840 million. Oh, it's way bigger. Yeah. And why can I just say quick
• 8:38
  question? Why would, like, why would Dot Marlin or Birkenstock's IPO spin its worth so much less
• 8:45
  compared to this brand waiting for so long? Like, what's the bonus of waiting until you're
• 8:51
  having any? It's not waiting. It's just if you need the capital or not, or you need the money.
• 8:56
  Like, the only reason you would list is if you need capital. That's not the only reason if you
• 9:02
  had a large shea holder that wanted to exit. So say at the curve, we had a huge shea holder,
• 9:08
  say you wanted to leave and no one wanted to buy your shoes, then you'd go to the public. Is it
• 9:12
  there like a bad sign to be like, oh, yeah, there's a massive shea holder. You'd probably
• 9:17
  lump the story in to be like, oh, so what's the sale? But we've got all these really big plans
• 9:21
  as well that we need money for. So do you think it's all the benefits to IPOs that understanding the
• 9:27
  reason that they're definitely getting money and like actually really looking at what their growth
• 9:32
  journey is? Yeah. To decide whether or not you're going to invest just kind of like, yeah,
• 9:36
  like. And because if they're just paying down a whole bunch of debt, that money is not actually
• 9:41
  going into the business to help it grow. It's going into business to pay down debt. So it's not
• 9:46
  actually freeing up. Well, it is freeing up money because then they don't have to pay down the debt.
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  But do you know what I mean? You want a company to either issue new shares or IPO and get more
• 9:57
  capital to and money to to grow and do cool shit? Different things. Yeah. So yes, it is a very good
• 10:03
  reason. And just like sort of maybe the biggest red flag would be if the CEO or the founder
• 10:08
  was leaving and the IPOing to sell all this, she's not sticking around. Like that would be,
• 10:12
  you'd be like, why? So with this shoe brand, do you know what they're saying they're using the
• 10:17
  capital for or why they're IPOing? But the private equity company that owns it wants to sell. So
• 10:22
  they're wanting to sell their their stake and invest in other things. So it's kind of the idea of
• 10:26
  a massive shareholder wanting to sell massive shareholder exactly. But so the private equity group
• 10:30
  is called per mirror and they actually owned Doc Martins and sold Doc Martins. So now you've
• 10:38
  run like, well, hang on, Doc Martins has done terribly. Why should we believe gold and goose is
• 10:42
  going to do well? And so it's especially if they've sold. Yeah. Doc Martins and they're wanting
• 10:48
  to sell this. Yeah. So that's not a great sign. And this is this is the the business model of
• 10:52
  private equity. They buy these businesses. They buy these businesses. They grow. They increase.
• 10:57
  They revenue. They earnings. And then they sell them off. Like they usually only have five
• 11:01
  year kind of periods that they invest. And so people are going, well, hang on. If you did that Doc
• 11:08
  Martins, you know, three years ago and it hasn't done well, why should we believe you when it comes
• 11:13
  to gold and goose? Because it's done so well till now. Are we just going to see the same thing?
• 11:17
  Are we going to be the stupid ones buying the stock? And then it just falls off a cliff. So it's
• 11:21
  like this. So you're trying to figure out as an investor. Do I still think that gold and goose has
• 11:25
  lots of runway? And there's kind of been arguments around the fact that it is. It's very fashionable.
• 11:31
  Yeah. Do you know what I mean? Like I feel like Birkenstocks use it's fashionable, but it's
• 11:35
  but they tried and tried to wear them clomping around a true. Yeah. What am I trying to say? Like
• 11:41
  you can wear them hiking. Yeah. You could wear them to a bar. Like there's grandmas that wear
• 11:46
  them. There's like stile twins that wear them. Like it's definitely not. Yeah. I don't know.
• 11:51
  It's quite interesting. The idea of fashion, IPOs or companies, I don't think. But look at
• 11:56
  Samba, the Edidas Samba for example. Like how freaking popular that's been. Yeah. But that's only
• 12:02
  such a small portion of Edidas. Do you know anything like if that was your whole business?
• 12:05
  It's different in the sense that it's way more functional as in lots of the elements of Edidas
• 12:10
  are exporting goods. Whereas when it's purely fashion, I think it's the same as like restaurants
• 12:16
  and bars like things come into fashion and then they go out of fashion and that's what kind of
• 12:20
  decent you want, right? No. And standing the test of time like decades after decades after decades
• 12:26
  or you know even years and years and years is really difficult for fashion brands. Yeah.
• 12:30
  So yeah, we're interesting to see. There's no dates yet that have been put out but it'll be one
• 12:34
  to watch. And then put them on the flip sides like well Birkenstock is done well. So maybe that means
• 12:39
  that golden goose would do well. You know, there's all these factors that come into play but the
• 12:42
  I think one of the biggest red flags is the private equity company that listed Doc Martin's
• 12:47
  and that hasn't done well. They've had five profit warnings in the last 18 months, Doc Martin,
• 12:51
  which means they put a figure out there of say we're going to achieve 100 million and then they
• 12:57
  miss that. So you know how we're like forecasting for the business? For the business. For the
• 13:02
  business. For the big Tesla when they kept like dropping their price of their cars because they
• 13:05
  kept not making. Yeah. It's excellent. We're going to achieve 100 million and you come out and
• 13:09
  you're like, oh shit, sorry, things didn't really go our way this quarter. We're actually going
• 13:13
  to do 80 and then you come out, so you run things 80. So we'll see. But would you listen?
• 13:21
  I think with IPOs, from what I've seen most of the time and making quite a big generalisation
• 13:27
  here, there's better times to buy the stock. Yeah. Interesting. You know, or even if I bought Birkenstock
• 13:31
  right now, it's up 60%, which you might be sitting there kicking yourself, oh damn it, I haven't
• 13:36
  didn't invest in that and it's done really well. I would prefer to see something that's
• 13:41
  done quite well post IPO and buy it and miss out on that little increase in the share price,
• 13:47
  then take the risk and buy something and it'll not do well. That makes sense. Yeah. Yeah.
• 13:51
  It's almost like a tiny bit of phono, like dealing with a bit of phono to like make it the call.
• 13:56
  Yeah, I get that. Yeah. And actually, there's been some news around your old employer, so.
• 14:02
  Hold on. It's like not media works. So me? Yes. So you need it. Yeah. Really? Yeah. So
• 14:09
  so I was going to say, like, so I worked there and the way you're smiling at me is making me feel
• 14:17
  nervous. So I worked, I would have been like 2019, they created like a new creative group.
• 14:25
  I should be honest, I loved the people I worked with and my immediate team. It was just some weird
• 14:29
  stuff that I felt like funny about in terms of the, it was super hierarchical. I don't even know if
• 14:36
  I should share some of this. I won't go into detail, but basically when I left quite a few
• 14:40
  of the senior management team got let go of like there's a lot of scandal around like treatment
• 14:46
  of stuff and like there was one guy, the main CEO or whatever, and he started working in the
• 14:51
  warehouse like 50 years ago and it worked his way up. Yeah. But it was just like you go to parties
• 14:57
  and you wouldn't be able to leave until he had gone home and stuff like that. Oh, I'm a weird
• 15:02
  culture stuff like that. Yeah. And I'm like, I'm tired. I don't know. I can just imagine
• 15:07
  like screw this. Yeah, I do. Like my, like I get that if it's like you've got clients with you or
• 15:12
  you know, the clients are still there and you can't leave for the clients, but not
• 15:15
  been able to leave for the boss is a bit weird. It was just kind of like, what if he was a
• 15:18
  bit part of it or like six or even like it would be times. Yeah. Anyway. So it was quite interesting.
• 15:25
  Yeah. Yeah. Yeah. I feel like there's a lot more that like could be quite
• 15:32
  So they are considering acquiring the music catalog of Queen, you know, the band Queen.
• 15:40
  I just don't think it's like me. No. I've had in such a good time. I actually read the musical
• 15:46
  of Queen music. Oh, so good. It would be a great musical. It was so good. I watched the movie
• 15:52
  for him in Rhapsody. Yeah. Yeah. I just think their music like there's so you just
• 15:56
  been moved for it, but there's some very amazing songs. What would the whole catalog be worth?
• 16:02
  So a billion US dollars, which is one of the biggest deals in history. Wow. Yeah.
• 16:09
  So you think they're buying that because they see more than that in value from buying that asset.
• 16:14
  Does that make sense? Like they're buying, they're not buying that a million dollars, not
• 16:17
  thinking they're going to be a million, billion, sorry. They're not buying that for a billion dollars,
• 16:22
  not expecting to get even more return on that investment. So
• 16:25
  Let me think if they've already had a like they've done the tea like the film. I understand if you
• 16:30
  knew it was a film in the works. Yeah. Yeah. But if you think like music royalties, they pay like
• 16:37
  everything from TV channels, radio stations, streaming platform, venues, you know, everything that
• 16:43
  uses a queen, even a commercial or anything like that. And the reason this is selling for so
• 16:48
  much is that it has stood the test of time. Yeah. Like queen has been around forever. And it gets
• 16:53
  something crazy. Queen, the band gets 52 million listens on streaming platforms a month. A month.
• 17:01
  A month. Wow. Yeah. For them perspective, Taylor Swift gets 114 million. And then I looked
• 17:07
  at like I wonder how much they get paid. Because I know you get paid peanuts from like Spotify for
• 17:11
  example. Yeah. It's something like zero, zero, zero, three cents to get paid. Like it's so low.
• 17:17
  So Taylor Swift, for example, with her 114 million listens a month.
• 17:24
  She gives 100 million dollars. Yeah. So yeah. I'm the 14.
• 17:31
  She gets $100 million. I just says it like fully. I've been like biking because I make headphones
• 17:35
  a broken. I've been biking with my phone on my like lanyard strap. Oh, you want to know?
• 17:39
  And I've been like, hey, Siri, my blank space by Taylor Swift. Like people's been passing it.
• 17:44
  I say, nice to meet you. Okay. I'm so embarrassed. Thanks to where you've been.
• 17:50
  Oh, I got that. So yesterday we went to the park and we were just like sitting there chilling out,
• 17:54
  reading, reading the newspaper, reading our books. And then this group of people comes and sits next
• 17:59
  to us. And like you see we're in different, I get that. But like their music choice, it literally
• 18:04
  made us leave the park. It was like the most intense, heavy metal to the point. I was like, come on.
• 18:09
  You know, like, if the type of music choice put your headphones in, like I'm sorry.
• 18:15
  I'm not saying my music choices the best, but I wouldn't ever play it that well.
• 18:18
  Did you say that you please turn it down a little bit? No, I wasn't going to be that person.
• 18:23
  I just left me just pass a verse of packing up my stuff really loudly.
• 18:28
  So, sorry. So, how many streams does Taylor Swift have in a how much does she get?
• 18:33
  So, she gets 0.003 cents per stream. That's kind of the average of a debt.
• 18:39
  And with her 114 million a month, she's making about 400,000 a month in just streams.
• 18:45
  It's not a lot. Five million a year from the likes of Spotify.
• 18:48
  That is nothing to be the biggest artist in the world.
• 18:51
  Considering what she would must make from her.
• 18:54
  I wonder what needs to change about that business model for that to be better.
• 18:57
  And this is the hard for small emerging artists.
• 19:00
  That is the most listened to person on Spotify.
• 19:03
  And they're making only five million a month.
• 19:04
  That's damn it.
• 19:05
  Sorry, they're only making five million a year.
• 19:07
  Yeah, it's crazy.
• 19:09
  But anyway, it kind of got me looking into music as an asset class.
• 19:14
  And they tried to do it, like buying music royalties.
• 19:17
  I was like, that could be quite a good investment.
• 19:20
  Yeah, I guess so.
• 19:21
  If you'd like to buy one, isn't it?
• 19:23
  Yeah, it's like buying art.
• 19:24
  It's like, will people see value in this asset, the music, in the future, in there for?
• 19:30
  Something like George Michaels, you know?
• 19:32
  Yeah.
• 19:32
  Yeah.
• 19:32
  I'm a guy for it.
• 19:33
  All those really don't know.
• 19:34
  That'd be on sale.
• 19:35
  I mean, just buy the outside.
• 19:36
  Would they be owned by big record labels?
• 19:40
  Most of those huge catalogs?
• 19:41
  Yeah.
• 19:42
  Yeah.
• 19:42
  So that's probably how most of them make money, right?
• 19:44
  Yeah.
• 19:44
  Because record companies, even in themselves,
• 19:46
  or I feel are a little bit redundant.
• 19:49
  But like, I'd be interested to see how they adapt.
• 19:52
  And I imagine most of them money would come from massive catalogs on this.
• 19:57
  Yeah.
• 19:57
  Like Sony has, it owns half of Michael Jackson's music catalog,
• 20:01
  and they paid 600 million for that.
• 20:04
  So like, they would own tons and tons and tons.
• 20:07
  Yeah.
• 20:08
  So quite amazing.
• 20:09
  But there was a time in 2018,
• 20:12
  where a company tried to make music and asset class and invest in it.
• 20:17
  And it didn't really, didn't really work.
• 20:19
  Yeah, I wonder if you could buy shares
• 20:21
  and tell us what's music.
• 20:23
  Yeah, that would be great.
• 20:24
  That would be amazing.
• 20:25
  Yeah.
• 20:26
  But anyway, it's...
• 20:28
  I reckon it'd be quite an attractive investment.
• 20:30
  If you were a record label, like Sony Universal Music,
• 20:32
  and you picked good ones,
• 20:34
  the longevity of that would continue to make you money for decades and decades.
• 20:38
  So...
• 20:39
  I think it's a good way to get people interested in investing.
• 20:41
  If they don't want to invest in companies,
• 20:43
  I quite like the idea of investing in fashion or art or music, you know, like...
• 20:48
  If you're in the music industry and you know it well,
• 20:51
  and you like...
• 20:52
  I don't know, maybe you could buy like a few songs.
• 20:54
  I don't even know if it's possible.
• 20:55
  They shot it into it.
• 20:56
  Yeah.
• 20:57
  And then just go around...
• 20:58
  Go around to TV stations and be like,
• 21:00
  Johnny, use my song in here.
• 21:02
  And this TV can be...
• 21:03
  You're always trying to make it go viral on TikTok.
• 21:05
  Yeah.
• 21:06
  And in other news,
• 21:08
  a Walmart...
• 21:10
  There's store managers at Walmart.
• 21:12
  A manager of a store.
• 21:13
  They get paid a lot, don't they?
• 21:14
  Yeah.
• 21:14
  So they're earning up to about 500,000 a year.
• 21:18
  For managing a store.
• 21:20
  Yeah.
• 21:20
  So Walmart has introduced some really big incentives
• 21:25
  for bonus structures, stock grants,
• 21:27
  like all this stuff to help incentivise.
• 21:29
  People to stay?
• 21:30
  People to stay, but also attract people.
• 21:31
  So it's getting quite competitive out there in terms of...
• 21:33
  So I just say, though, because you know,
• 21:35
  similarly in the supermarket space,
• 21:38
  you have to work as a manager,
• 21:39
  to work in the shop for ages.
• 21:41
  It's like a huge like, you know, 20-year journey
• 21:44
  to probably get to the point where then you can open your own supermarket.
• 21:46
  Yes.
• 21:47
  Similar with Walmart.
• 21:48
  Like, is that why they paid so much?
• 21:50
  No, it's just like, Walmart stores are huge.
• 21:53
  Like, some of these managers are managing 400 staff.
• 21:55
  Like, that's bigger than a big company.
• 21:57
  Do you know what I mean?
• 21:58
  Like, that's massive.
• 21:59
  So, but it is just it's getting so competitive,
• 22:01
  getting good staff.
• 22:02
  So they're like, right, okay, we're going to increase
• 22:05
  average-based salaries now 130,000 a year.
• 22:08
  Which is like, that's quite good.
• 22:10
  You probably be doing a lot of annoying people.
• 22:12
  Every year, a fee all day.
• 22:13
  Yeah, it would be quite exhausting.
• 22:15
  But yeah, so if you hit your targets,
• 22:18
  your bonus could be up to 200% of your salary.
• 22:21
  So for 130,000 salary, $130,000 salary.
• 22:25
  $3,000, $4,000, $200,000.
• 22:27
  It's, yeah, you could get $260,000 plus your $130,000.
• 22:31
  Yeah, you're on some pretty good wicked, yeah.
• 22:34
  But on top of that, they also get a stock grant,
• 22:38
  which is $20,000 of stock, effectively.
• 22:41
  A grant is just a fancy way for a gift, effectively.
• 22:44
  So you can get a gift if you hit targets of $20,000.
• 22:46
  Does Walmart do really well at their stock?
• 22:48
  Yeah, their stock has done, yeah, fantastically well.
• 22:51
  It's just like a supermarket that has hates on my hands.
• 22:54
  Yeah, they're like massive.
• 22:55
  Yeah.
• 22:56
  Even with Amazon and everything, they're still done.
• 22:58
  Now, everyone's like, oh, Amazon's going to be the demise of Walmart.
• 23:00
  And they're just like, like, no, I think there's...
• 23:02
  True actually.
• 23:03
  Yeah, I'm surprised it's still the taste of time.
• 23:05
  Yeah, but it got me thinking, and we kind of have this conversation
• 23:07
  during the week, actually, around the difference between stock purchases,
• 23:10
  stock grants and stock options.
• 23:12
  Yeah, see.
• 23:12
  Because like, they've also given them their ability
• 23:16
  to purchase up to $18,000 of stock a year,
• 23:19
  and they get a 15%, sorry, the company matches it by 15%.
• 23:23
  Oh.
• 23:24
  So if you fork out $180,000, then the company matches it by 15%.
• 23:29
  So they've got this stock purchase.
• 23:32
  That's quite good, because it means if people really invest it in the stock doing well.
• 23:36
  Yeah.
• 23:36
  I mean, I think it's really land with me about a year ago.
• 23:39
  The idea of if you work for a startup, and you get, I mean, I guess they're not a startup,
• 23:44
  but you kind of come to Google, whatever.
• 23:45
  If you get stock, so the company does well, you do well.
• 23:49
  It makes so much sense.
• 23:50
  Oh, totally.
• 23:51
  And then you're...
• 23:52
  Everyone's in Beeston at a success.
• 23:53
  You're not just turning up to work doing your nine to five in person.
• 23:56
  You genuinely care about how much do they want to.
• 23:58
  Yeah.
• 23:59
  And like, the Walmart share price is up 24% this year.
• 24:02
  And there's a P500.
• 24:04
  So the US stock market's up 11%.
• 24:05
  So it's outperformed by 13%.
• 24:09
  So that's you.
• 24:10
  Just in six months.
• 24:11
  Yeah.
• 24:11
  So stock purchases when you purchase the stock outright,
• 24:15
  you just use your money and you buy the stock.
• 24:17
  A stock grant is when you get gifted it as part of your bonus.
• 24:21
  So be like, well done.
• 24:22
  So if you don't really well, here's $20,000 of our stock at the price, whatever the price is.
• 24:27
  And then there's a stock option.
• 24:28
  And this is in a lot of employee share option plans, ESOPs.
• 24:33
  A lot of firms have them.
• 24:35
  And you can have it for private companies.
• 24:37
  You can have it for public companies.
• 24:39
  But it's when part of your package is that you get offered the option
• 24:45
  to purchase this stock with your bonus.
• 24:49
  But you get it.
• 24:50
  So say the price.
• 24:52
  It can be a fixed price of what today's share price is.
• 24:55
  But you get the option to purchase it in one, two, three is time.
• 24:58
  Whatever that is set up in your office.
• 25:00
  This is like what you had when you started.
• 25:01
  Yeah.
• 25:01
  So it's like the tricky thing with this is if the share price does really well in that next one,
• 25:06
  two, three years, it's amazing.
• 25:08
  It's amazing.
• 25:08
  You've paid, say $10 and it might be worth 30 and you get an immediate uplift.
• 25:12
  But you don't have to pay 10.
• 25:14
  And it could have done the opposite.
• 25:15
  But it could have done the opposite.
• 25:16
  And this is why it's actually really good for employers or founders or CEOs to make sure
• 25:23
  that the share price as well as well.
• 25:24
  Because otherwise they're not going to take good talent.
• 25:26
  Otherwise they're not going to take good talent.
• 25:27
  And also I'd be sitting there going, well, I don't want options in my, in my
• 25:31
  remuneration because they're just worth less and less and less and less and less.
• 25:35
  Yeah.
• 25:35
  And you'd probably be like, I don't want my option, thank you.
• 25:38
  And I do.
• 25:38
  Yeah.
• 25:39
  So yeah, I had this at my first kind of professional job.
• 25:44
  And we pay, I can't be the price of the time.
• 25:47
  But it was like the fixed price of today, but you pay in three years time.
• 25:50
  And it was like the best thing financially that ever happened to me.
• 25:54
  So it can work in a really hard time.
• 25:57
  If you haven't listened to that episode, it was raised in the curve episode 84,
• 26:00
  how that made $800,000 in six years.
• 26:03
  Yeah, that's actually one of our really well listened to episode.
• 26:06
  We're here.
• 26:08
  Yeah, so that was all due to share options that I took up and thank goodness I did.
• 26:14
  And then lastly, so, great news.
• 26:18
  One of your favourite countries.
• 26:20
  Mexico.
• 26:22
  Yes.
• 26:23
  Oh, like, he sort of says something else.
• 26:25
  Like, what would be here?
• 26:26
  I love Mexico.
• 26:28
  Can we have a team trip to Mexico?
• 26:30
  I'm in like a meeting the other day.
• 26:31
  I think it was simply a few times.
• 26:32
  And someone's like, I'm going to Mexico.
• 26:34
  I love Mexico.
• 26:36
  I reckon I was Mexican in the past life.
• 26:38
  I love Evocados.
• 26:39
  I love Tequila and mezcal.
• 26:41
  I love the Sun.
• 26:42
  I love The Ocean.
• 26:43
  I love yoga.
• 26:44
  I love Spanish.
• 26:45
  I just love everything.
• 26:47
  I'm just Aussie when I was there.
• 26:48
  I was like, I feel so at home.
• 26:50
  Anyway, sorry.
• 26:51
  You know, Mexico.
• 26:52
  Yeah, Mexico.
• 26:52
  They are on track to alert their first ever female Prime Minister.
• 26:58
  That's an agent.
• 26:59
  Well, President, whatever.
• 27:00
  I don't know what the trip is, but yeah, cool.
• 27:02
  Yeah, so, um, and it's like a land side victory.
• 27:06
  Like, she is on, she's so dark.
• 27:08
  What's her name?
• 27:08
  Claudia Scheinbaum.
• 27:10
  Scheinbaum.
• 27:12
  No, how does it spell?
• 27:15
  Sorry, it shouldn't love, but it's the first time I've said it and it's actually Scheinbaum.
• 27:19
  What has it spell?
• 27:20
  SH, E-I-N, like Scheinbaum.
• 27:22
  E-A-N.
• 27:22
  Yeah, yeah.
• 27:23
  And then, bomb, B-A-U-M, bomb, bomb, Scheinbaum.
• 27:29
  We're planning to look at her.
• 27:30
  Sorry, if anyone's speak Spanish or from Mexico,
• 27:34
  like I was saying it's so wrong, apologies.
• 27:35
  Does it sound like it's Spanish?
• 27:36
  No, yeah.
• 27:37
  Since she's 61 and she is.
• 27:39
  Oh, Claudia.
• 27:40
  Unfortunately, you're going to hear it's some pretty rampant
• 27:43
  criminal violence in Mexico, and a lot of depth
• 27:45
  that the previous President got them into,
• 27:48
  but that's right.
• 27:48
  I got her.
• 27:50
  But it got me thinking, I was like, this is amazing.
• 27:53
  But then, it's also 2024.
• 27:55
  And this is their first freaking out.
• 27:57
  Yeah, that's quite bad.
• 27:58
  President.
• 27:58
  So there's New Zealand or the UK or something.
• 28:03
  So there's over 100 countries that have never had a woman lead them,
• 28:07
  and the US has been one of those.
• 28:09
  The US has never done this.
• 28:11
  That's why it was such a big deal when Hillary Clinton was about to get in,
• 28:14
  because that was their first criminal, which she didn't.
• 28:16
  A hundred companies that haven't.
• 28:18
  Countries.
• 28:19
  What did I say?
• 28:20
  Countries.
• 28:20
  Oh, it's lost weight or company.
• 28:23
  So over a hundred countries that have never had a female leader,
• 28:25
  including the US.
• 28:26
  Wow.
• 28:27
  We'll leave you with that, folks.
• 28:29
  Thank you so much for listening to The Curve Weekly.
• 28:31
  Make sure you hit the subscribe button to stay up to date with all the
• 28:34
  many business stock market news.
• 28:36
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• 28:38
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• 28:39
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• 28:41
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• 28:42
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• 28:45
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• 28:47
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• 28:50
  And we hope you have a good week and see you next Monday.
• 28:52
  Bye.
• 28:53
  Bye.
• 28:55
  Is that nice?
• 28:55
  Yeah.
• 28:56
  See you next Tuesday.
• 28:57
  Well.
• 29:00
  See you next Tuesday.
• 29:00
  I mean Monday.