Latest / What the Flux / Storage King's billion dollar play | Rugby Australia scores with Nine | Warren Buffett's done it again

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Storage King's billion dollar play | Rugby Australia scores with Nine | Warren Buffett's done it again · What the Flux

• 0:05
  Speaker 1: This is of the Flux I'm Brett and I'm justin.
• 0:08
  Speaker 2: It's Friday, the eleventh of April, juz boy.
• 0:10
  Speaker 1: With credit card fraud at an all time high and
• 0:13
  Speaker 1: Combank and Westpac are looking to make some big moves.
• 0:15
  Speaker 1: Get this one. Both banks are considering removing the sixteen
• 0:18
  Speaker 1: digit numbers from credit cards and debit cards now.
• 0:22
  Speaker 2: For Sam, this week has been one of the craziest
• 0:24
  Speaker 2: weeks on the share market since forever. Donald Trump announced
• 0:27
  Speaker 2: major tariffs, then early yesterday he announced a ninety day
• 0:30
  Speaker 2: pause on nearly all the tariffs except for China. The
• 0:34
  Speaker 2: share markets have absolutely exploded. We have it all covered
• 0:37
  Speaker 2: in the Flux app, including what is the tariff and
• 0:39
  Speaker 2: why they are making such a big impact right now.
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  Speaker 2: So if you want to learn more, make sure to
• 0:43
  Speaker 2: download the Flux app and check it out.
• 0:45
  Speaker 1: Three revitalizing stories today, Juzzy boy, let's do it for
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  Speaker 1: our first. Storage King, the asxised self storage operator is
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  Speaker 1: filding a multi billion dollar takeover offer because its majority
• 0:57
  Speaker 1: owner isn't happy with its progress. Storage King getting boxed
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  Speaker 1: up and shipped off b Man, So tell me more.
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  Speaker 1: Abicus Storage King is the ASEX listed company that operates
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  Speaker 1: under the brand Storage.
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  Speaker 2: King aka the self proclaimed Kings of Storage Moving and
• 1:11
  Speaker 2: probably bubble Wrap as well and Jasebo. Storage King isn't
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  Speaker 2: just sitting on a few dusty garages out back. We're
• 1:16
  Speaker 2: talking nearly one hundred and fifty self storage facilities and
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  Speaker 2: development sites around Australia now Beman. In twenty twenty three,
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  Speaker 2: Abicus Property Group, which was the owner of Storage King,
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  Speaker 2: decided to dmage Storage King into its own ASEX listing.
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  Speaker 1: But since then its share price has fallen more than
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  Speaker 1: eighteen percent.
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  Speaker 2: So now Abicus Property Group has partnered with another company
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  Speaker 2: called Public Storage to try and buy back the whole
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  Speaker 2: of Abicus Storage.
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  Speaker 1: King, and this was at a more than twenty six
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  Speaker 1: percent premium to its pre offer closing price.
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  Speaker 2: Now the office still needs to get approval from the
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  Speaker 2: Storage King Board.
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  Speaker 1: As well as the Foreign Investment Review Board here in Australia.
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  Speaker 2: Given the offer price is below Storage King's net tangible assets,
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  Speaker 2: some investors may push back on this one.
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  Speaker 1: That is an interesting call. So what is the key
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  Speaker 1: learning here?
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  Speaker 2: Net tangible assets are essentially the value of a company's
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  Speaker 2: physical assets like property, minus its liabilities.
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  Speaker 1: It's a common valuation tool. Used in property heavy sectors
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  Speaker 1: like real estate or storage.
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  Speaker 2: Investors look at the net tangible assets to understand what
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  Speaker 2: a company is worth on a breakup basis.
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  Speaker 1: That means what would it be worth if all of
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  Speaker 1: its assets were sold and debts paid off.
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  Speaker 2: In Abacus Storage King's case, its net tangible assets are
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  Speaker 2: a dollar sixty per share, But the takeover group is
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  Speaker 2: only offering a dollar forty seven.
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  Speaker 1: Hello eight percent discount.
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  Speaker 2: So then why would anyone accept less than the net
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  Speaker 2: tangible asset value?
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  Speaker 1: Because NTA doesn't always equal market value.
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  Speaker 2: If a business is underperforming or it has limited future
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  Speaker 2: growth opportunities, investors may just decide to sell it a
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  Speaker 2: slight discount.
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  Speaker 1: Because, as the takeover group claims, a discounted exit is
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  Speaker 1: much better than a slow and painful decline.
• 2:49
  Speaker 2: For our second story, Rugby Australia has locked in a
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  Speaker 2: new major broadcast deal with nine and if they pull
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  Speaker 2: off some wins it could mean even more cash for
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  Speaker 2: the Wallabies.
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  Speaker 1: That is a major coup potentially for Rugby Australia and
• 3:02
  Speaker 1: we all know they desperately need it. Juzzy boy, so
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  Speaker 1: tell me more.
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  Speaker 2: Okay. So rugby union has been a key part of
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  Speaker 2: Australia's sporting DNA for a very long time yep.
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  Speaker 1: From the Wallaby's World Cup victories in nineteen ninety one
• 3:13
  Speaker 1: and ninety nine to Super Rugby. It's been a popular sport,
• 3:16
  Speaker 1: particularly in New South Wales and Queensland, but the man.
• 3:19
  Speaker 2: The Wallabies haven't exactly been a try scoring machine.
• 3:22
  Speaker 1: Lately, Rugby Australia has been scrambling to revive its popularity.
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  Speaker 2: But now in a win for rugby in Australia, Rugby
• 3:29
  Speaker 2: Australia has just signed a five year broadcast deal with nine.
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  Speaker 1: And Juzu Boy. This deal is believed to be worth
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  Speaker 1: around two hundred and ten million bucks and.
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  Speaker 2: This is a forty percent jump from their last deal
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  Speaker 2: and Juzzy Boy.
• 3:40
  Speaker 1: You know, ain't just the Wallabies, it's also the women's
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  Speaker 1: national rugby team, the Wallaroos and Super Rugby matches. And
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  Speaker 1: the juicy part is that the deal includes performance incentives
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  Speaker 1: that means.
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  Speaker 2: Rugby Australia gets bonus dollars if the Wallabies actually start.
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  Speaker 1: Winning, because a winning team means winning ratings as well.
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  Speaker 2: So what is the key learning here?
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  Speaker 1: Live sport is still the holy grail for broadcasters in
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  Speaker 1: this streaming era.
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  Speaker 2: Be Man, We know that more people are cutting the
• 4:06
  Speaker 2: proverbial cord and giving up on traditional TV.
• 4:09
  Speaker 1: But does boy Livesport is one of the few things
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  Speaker 1: that audiences still show up to watch in real time, and.
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  Speaker 2: That makes it super valuable for nine.
• 4:16
  Speaker 1: On the one hand, it makes it more valuable for
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  Speaker 1: advertisers who are getting a number of eyeballs on their brand.
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  Speaker 2: On the other hand, it helps the growth of their
• 4:24
  Speaker 2: streaming platform Stan as well. In fact, be Man nine
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  Speaker 2: said audiences for Rugby have grown eleven percent on STAN
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  Speaker 2: since twenty twenty and seventeen percent on nine and nine
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  Speaker 2: now and b Man for Rugby Australia. It's a financial
• 4:37
  Speaker 2: win in what's been a pretty tricky time. For our
• 4:40
  Speaker 2: third and final story, Warren Buffett was hoarding cash in
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  Speaker 2: twenty twenty four while everyone was riding the bull market,
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  Speaker 2: but now he's having the last laugh with all these tariffs.
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  Speaker 1: Buffett aka Beyonce of the share market tell me more.
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  Speaker 2: So we know Warren Buffett is one of the most
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  Speaker 2: famous investors in the whole wide universe.
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  Speaker 1: YEP. He started investing under the Berkshire Hathaway Now back
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  Speaker 1: in nineteen sixty five with his old mate Charliemonger, and
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  Speaker 1: the Man.
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  Speaker 2: Berkshe Hathaway has some huge holdings in some big name companies.
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  Speaker 2: We're talking Apple, Coca Cola, American Express.
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  Speaker 1: The Juzzy Boy. In twenty twenty four, with every investor
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  Speaker 1: buying into the bull market, but Warren Buffett was selling
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  Speaker 1: down in fact, Bee Man. By the end of twenty
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  Speaker 1: twenty four, Berkshey Hathaway was sitting on a record three
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  Speaker 1: hundred and thirty four billion US dollars of cash, up
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  Speaker 1: from just one hundred and sixty seven billion US dollars
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  Speaker 1: the year before.
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  Speaker 2: Buffett was hoarding US dollars like a squirrel with its
• 5:29
  Speaker 2: nuts before winter, Jully Boy.
• 5:31
  Speaker 1: With Trump's tariffs causing the US share markets still fall
• 5:34
  Speaker 1: by nearly six trillion bucks. Wow, the net worth of
• 5:37
  Speaker 1: nearly all the biggest investors in the world has plummeted.
• 5:40
  Speaker 1: The Berkshire Hathaway well, their shares are actually up.
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  Speaker 2: More than nine percent, and that's because Buffett's had most
• 5:45
  Speaker 2: of Berkshe's cash sitting in a short term treasury bill.
• 5:48
  Speaker 1: Fascinating stuff. So what is the key learning here?
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  Speaker 2: Be fearful when others are greedy, and greedy when others
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  Speaker 2: are fearful.
• 5:54
  Speaker 1: That is the famous phrase that Warren Buffet Buffet said
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  Speaker 1: back in two thousand and eight and lips you see
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  Speaker 1: b Man.
• 6:01
  Speaker 2: The S and P five hundred was up more than
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  Speaker 2: twenty three percent in twenty twenty four and.
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  Speaker 1: The Nasdaq one hundred up nearly twenty nine percent in
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  Speaker 1: twenty twenty four.
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  Speaker 2: At the same time, Warren Buffett was trimming his states
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  Speaker 2: in Apple and Bank America big time and b Man.
• 6:13
  Speaker 2: Holding cash can kind of make you feel like you're
• 6:15
  Speaker 2: missing out when markets are booming, but it also gives
• 6:17
  Speaker 2: you the opportunity.
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  Speaker 1: To pounce when the markets turn like now yep. Holding
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  Speaker 1: large cash reserves gives you optionality. For Berkshire, it means
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  Speaker 1: they're not forced to sell assets at a loss.
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  Speaker 2: And instead they can now pile into buy assets on
• 6:30
  Speaker 2: the chief forxamer what a week in business news? Pariskon up,
• 6:34
  Speaker 2: pariskone down, share market up, share market down, and companies
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  Speaker 2: have been riding the waves all week. See if you
• 6:39
  Speaker 2: stayed across it, you have a great chance to win
• 6:42
  Speaker 2: quick six todays. Make sure to download the Flux app
• 6:44
  Speaker 2: and turn your notifications on to win that fifty bucks.
• 6:47
  Speaker 1: Thanks for listening, and we'll see you on Monday.