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TCW51: All hail Sir Lord King Warren Buffett! · 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.
• 0:14
  I feel like I've just been constantly smelling the last few days. I know that's gross,
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  but like stinking. Yeah, like I don't normally feel like I have the
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  yo, like I never really feel like I need to editor it. I even after a shower immediately,
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  I'm like, oh god. Are you pregnant? I'm like, am I? No, I was thinking like, is there some kind
• 0:34
  of hormonal problem? Or like, is it just that it's so hot in New Zealand? Or your sense of smell is
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  just, nah, I'm pretty good at knowing like when I smell, like I'm aware of myself, you know?
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  But it's just been so hot lately. I feel like I'm constantly sort of
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  smelling. So sorry about that. No, my sister always used to tell me that I smelled when I was
• 0:56
  young. Go and it really got a complex. She would come up to me and be like,
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  sniffing her nose. And I'd be like, stop it. She'd be like, sorry, something just smells.
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  So I like now doubt myself when perfume always with you, like I am so.
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  So are you always so strong when it comes to perfume? Well, I know now my mom is like,
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  oh, she's rake of perfume. Go, who's walked in the room, you know, like in terms of how I
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  feel? Yeah, you can smell it quite far away from where you walk. But it's a little bit of trail.
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  Yeah, I'd rather that. I don't know. But what about pheromones? Don't you want to be attracting
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  the right lover? And if you're like dousing yourself with Rose Gypsy, whatever it's called Gypsy
• 1:40
  Water Byron? What's that brand you use? La Laba. Rose Laba. I thought it might be a good idea
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  to bring up our business financials, given the last day when people joined the money reset
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  as this Friday. Did you say no, as in like, you don't want to talk about it? Yeah.
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  I was thinking that I was like, I bet you won't want to talk about this. But I think it's important
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  actually to be transparent. And we always are. We always try to be. I remember when we there was
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  one time where I used our last $50 in the account to pay for my phone bill. I was like, this is a
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  diet. I'm pretty sure I filmed it. And I thought it's too soon. And the reason I felt like it was
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  too soon and I didn't want to share that publicly, I think was because I hadn't come into an
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  abundance mindset when it comes to our business and money and the flow in and out. Whereas now,
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  I think we're in a position where we've got really good goals in place. We've got like, you know,
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  the fine. I mean, yeah, no, we've got a plan in place. We've got goals. I guess we've got a
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  better idea of when money comes in, when money goes out. We've been here before. We know this
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  period of the year is generally a little tough one for us, but of a low figure in the bank account.
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  But also, I think for me, remember when I used to get so incredibly stressed if we had at least
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  a couple of thousand dollars in our bank account? And I would literally, yeah, it's been,
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  you know, it was awkward to be around. You could almost tell if I was in the mood, you'd be like,
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  how much money do we have in the bank account? I feel like. You're not enough, okay? I feel it.
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  Whereas now, I'm like, you know what? We've got invoices coming in next week, next month.
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  You know, I'm kind of like, it's okay because we've got a plan. We've been doing this for a while.
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  Yeah, I just feel like when you have a plan in place, the scary seems less scary.
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  Have you just dropped the, we don't have any money to power ourselves bomb? Because then to
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  netcut it out and I couldn't hear you. No, I didn't, but now we've run out. Well, we have not
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  got enough money to power ourselves. It was so cute the other day. I was like, so, so if we've
• 3:47
  got some money, I'll transfer you your salary or part of it. And I'll do mine later in the month.
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  She's like, no babe, we're not together. I'll transfer you half. I said, oh no, no, no,
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  I was like, tax, don't do that. That just makes it a minefield. No, I feel weirdly fine about it.
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  And I think that the reason I feel fine about it is because I have learned so much more about
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  how to plan, how to put things in place. We have our milestones. We know it. We're working towards
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  we know that there's invoices coming in. Like, it feels a less of a shit storm than it would
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  had I not. I mean, we've even got a business emergency fund. You know, like we've put our
• 4:28
  money in investments so that if we get to a place where we've run out, oh, have we taken it out?
• 4:34
  Yeah. Oh, good to know. It's a minute. It's a finance meeting next week.
• 4:37
  No, I don't.
• 4:41
  Shit, good to know. Well, we did put it in there. And we did, for exactly this purpose, we have
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  external people to pay and we need to tie ourselves over for a little bit. So, hey, let's dip into
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  our emergency fund for this exact purpose. And so that's kind of why I'm not scared because we put
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  that plan in place last time when I was freaking out. And I was like, okay, what's something I can put
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  in place to make sure that when this happens again, if this happens again, we won't be in the same
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  position. And so we have, and now we're in the same position, but it's a lot less scary because
• 5:14
  we put those steps in place. So yeah, I think the reason we thought it was nice to share this is
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  it's all very well to be like, hey, join us for the money, reset, reset your finances, learn how to
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  do this stuff. But like, we're also implementing this in our business. It's important to understand
• 5:32
  what's in it, to understand the kinds of things that you go over and how hopefully once you've
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  completed it, you'll feel once you've got those steps in place because I think the reality is
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  should always happen. There's going to be another time that this happens. There might be way
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  worse next time. But for some reason, I mean, I think I text you being like, start up life.
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  I'm like, weirdly excited about it because I don't feel stressed and I know that that's
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  definitely not how it would have felt a year and a half ago. I would have been really on the edge
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  of my seat panicking. So yeah, I think it goes the same for your personal finances. And if you've
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  been, you know, thinking that you need to put some things in place to start to feel a little bit
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  more on top of it, then this is a really good opportunity to do it with heaps of other cool
• 6:15
  people that are doing the same thing. 100%. And on that note, we move on to the curve weekly.
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  So there's been a bit going on in some of the big tech names, actually. So in Facebook,
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  do you remember Cheryl Sandberg? She wrote that book, Leanin, like 10 years ago. But I've always
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  wanted to read that book. Oh, such a good book, such a good book. It's all about
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  women kind of asserting themselves at work and at home and like having a career and being a mother
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  and juggling that. And it's all about having a seat at the table. It's actually really,
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  really interesting. And the fact that it was 10 years ago, it was quite pioneering in terms of
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  some of the things that she mentioned, whereas now I feel like there was a lot more education,
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  awareness, you know, books written on this as well. So but she was definitely one of the first to
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  to kind of, I guess, shine a light on it. But anyway, she has, she was the chief operating officer
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  at Facebook for 14 years. And then she left that role and just went on the board. So she was on
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  the board of Facebook for 12 years. So she's been there for nearly 26 years.
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  Wow. And so a very, very, very long stint at Facebook. And she has just announced that she's
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  going to resign from the board. So she's not going to have pretty much anything to do with
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  with me, Facebook anymore. But just some interesting stuff. So she's here with my mouth.
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  Well, I was going to say weird and really and we all, we all did hear that. I was like, okay,
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  just give a skim over there. I was like, let's not brush over that because we might be able to
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  edit it out. We need to highlight the fate that that was weird. Sorry. Continue.
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  I'm excited to see what the caption will come up with for that. We all, we all.
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  Yes, but she's kind of one of the most high profile and influential woman in the tech space.
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  So her stepping down, it was big news. She priced didn't really move much. But if we look back on
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  her stint at Facebook, when she first started there in 2007, their revenue was $150 million.
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  And when they IPOed, it went to $3.7 billion in revenue to just before we in public. So when it
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  became a public company, investors could buy shares. And it is now 40 billion.
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  150 million to 40 billion. Imagine the change that she would have seen that would have happened
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  at Meta. That is just bananas. I wonder if we could get her on the podcast. She would be
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  fascinating to talk to. Oh, she would be so great. Yeah, she would be so fascinating.
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  And the share price. So since the company went public in 2011, sorry, 2012 to this year, it's gone
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  up nearly 900%. Not saying that that's all her doing that, of course, not, but just the significant
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  amount of growth that the business has seen while she's been there is quite incredible.
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  And in Google, so Google has announced that they are going to do some more employee cuts,
• 9:19
  so some layoffs, they're going to lay off a whole bunch of staff, which is never ever good news.
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  And it'll be interesting to see what we're here coming out of reporting season,
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  so about to head into corporate reporting season. This is where companies in the US report their
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  financial results for the period for the three months ending December. And so there'll be a lot
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  of announcements, but this was quite surprising considering that they've already made huge
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  staff cuts. They they let off 12,000 employees last year. And sorry, in 2022, which is
• 9:58
  a massive massive number. Yeah, so many people and they're doing even more cuts. And it's all
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  around. Do you think this is to do with AI? Yeah, exactly. So they're wanting to invest more in AI
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  and they need to create capacity to do that. So they need to cut costs somewhere in the business,
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  so they can allocate money elsewhere. And so they're kind of rejigging, I guess, in terms of that.
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  So that's pretty shit news. I mean, they're making investments in other areas, but if you think
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  there hasn't been an amount of employees disclosed that they're letting off this time around. But
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  last time, so take that 12,000 employee figure, think of all those people having to find new jobs.
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  And then if you through in a few other tech companies laying off staff, that's a lot of employees
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  in the workforce, trying to find jobs. And it can actually be a good thing in terms of inflation,
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  because it means that, hey, if you've got two people going for the same job, and now you've
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  got three or four people going for the same job because so many people are unemployed or have lost
• 10:58
  their job, then that means that job can be priced lower or have a lower salary because there's
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  more demand for it. But how does that help inflation? Because you're not constantly a few, there's
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  only one person that's going for the job, and that person can be like, hey, you know what, I'm going
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  to increase my salary by 20 percent because I know they want me. And then that leads to that company
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  having to pay more, and then that company has to pass those costs on by increasing their prices,
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  and then the customer. Yeah, so it's all unbig cycle. That's at an individual level, but if you
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  think about that in a country level, if you have very few people available to be employed,
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  but tons and tons of jobs, then those people can charge more or those the price for that role,
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  whatever it is, if it's a marketing role or finance role, they'll just have to increase the salary
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  on that, which then fuels inflation, because wage inflation, your wages are going up and up and
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  up. So it is a good thing to see from an inflation point of view, but not really from a personal
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  point of view. And then we have some new, well, a lot of news actually, out of China.
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  So China is one of the biggest economies in the world, and so there's a lot of countries
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  that depend on it, whether they're exporting to China, they're importing goods from China,
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  you know, there's like New Zealand, we rely on China a lot in terms of them buying our products,
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  buying our dairy or that straighter relies on China a lot, China buys a lot of their commodities,
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  like steel and all of that to build buildings and invest in real estate. So a lot of different
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  countries rely on China for different reasons. And there's some pretty scary headlines coming out
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  of China right now that their population is shrinking. Their population fell by two million
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  people last year. That's the entire population of our cities of Auckland. Yeah, I mean, like I
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  really struggle with this one because less people means less impact on the environment, which I
• 13:02
  must say for me, I'm like, it feels like a win. But less people means less growth, less prosperous
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  economies, which means less opportunities, means less investment, which is in the long run,
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  really detrimental. I think there is a case to be argued where you can have population growth
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  that is not out of control and that can be an alignment with the planet. We're not currently
• 13:29
  nailing that up though, so I'm not mad about trying into your alternative, which is a shrinking
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  population, you know. Yeah, I think though, if that shrinking population because it's so bad,
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  yes, it can have a positive impact on the environment, but I think that leads to say that lead to
• 13:45
  10, 20 countries going into recession, then those countries can be very hard for them to invest
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  in renewable energy and all of that if they don't have the funds or the growth or the money to do so.
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  So yeah, that is there as if there is pluses and minuses, but on the whole, you want economies
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  to be growing. You want countries populations to be growing within reason, you know. And the fact
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  that this is going backwards is yes, it's a good thing, but it's also because it's such a large economy
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  and such a large population, it is going to have impacts around the world. And we're also seeing
• 14:21
  this have impacts in China, so it's having impacts locally and globally. So China house prices
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  have fallen the most in nine years. So their economy is really starting to struggle. The GDP,
• 14:33
  which we know is the the figure that shows how much an economy is growing. So that grew by five
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  percent, which you might think that that's pretty good. That sounds great. That's very, very low
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  for China. And it's the slowest rate it's growing since the 1990s. Yeah. And then I guess the reason
• 14:51
  the population growth is so low, it kind of comes down to I guess things that we're seeing around
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  the world, but it seems magnified in China. And that is that people and couples are delaying
• 15:04
  having children or less inclined to have children. So people are trying to be encouraged to have
• 15:12
  children in China. There's a lot of financial incentives in place. They dropped, they got rid of
• 15:17
  that one child policy back in 2015. I think it was. So there's a few steps that are being put in
• 15:23
  place to help stimulate that population growth. But I think it's also just a function of people
• 15:29
  attending to have children later in life. That leads to fertility issues. Therefore instead of
• 15:35
  having maybe five children, you are only having one because you're only willing and able to have one,
• 15:41
  it's more expensive to have children. Education is much more expensive. So therefore maybe instead
• 15:46
  of having those five children, you can only afford to have one. So there's a lot of factors that
• 15:49
  are coming into play. But it does seem like it's very magnified in China at the moment and having
• 15:56
  quite significant impacts. It's quite weird to think about the idea of
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  being paid to have a kid. Imagine the sole reason that you decide to bring a tiny human into the
• 16:08
  world is for money. The whole thing is kind of a bit fucked up. But China is slowing its population
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  is getting older. So yeah, it's now having more deaths than birth, which is never a good sign
• 16:27
  for economy that wants to be prosperous and grow and productive. Yeah, other things that I mean
• 16:33
  happening. So we've had a bit of news with Warren Buffett. Get old Warren Buffett.
• 16:39
  Old Buffey. Buffey? I actually think that it's just respectful now. I take back Buffey. I think
• 16:44
  he deserves so Warren Buffett. Yeah. Yeah. Lord. Yeah. Lord Warren Buffett. I love that. Yeah. Yeah.
• 16:54
  Old mighty Warren Buffett. Oh, mighty.
• 16:59
  I'm not even way. I will get to the point of why we're talking about him. But I just wanted to
• 17:06
  start with going, I went down a huge rabbit hole this morning when I was looking when I was
• 17:11
  going going Warren Buffett. And did you know he earns a salary and has done every year for the
• 17:18
  last 40 years of $100,000. I said it. That's it. And the average pay for a CEO in the S&P 500. So
• 17:30
  the top 500 companies in the US, the average salary for a CEO is $18 million a year. And he's
• 17:39
  earning $100,000 a year. No. I know. Why? Why is he living? Does he? He lives very, very,
• 17:49
  very modest. And you'd have to be only paying yourself $100,000. And he spends, so sorry,
• 17:55
  the company spends $350,000 a year on security for him. So they spend three and a half times
• 18:03
  a salary on security, just security for him, which is quite wild. Why would someone, why would someone
• 18:09
  want to hurt him? Not hurt him. I think it would be more like, hey, can I get your photo,
• 18:14
  can I get your autograph, you know, just just being that famous and people take him hostage and
• 18:20
  be like, hey, pay us or else we won't release Warren Buffett. No, really. So he's like famous,
• 18:26
  famous. I thought he was just finance world famous. No, he'd be famous famous. Well, I don't know,
• 18:31
  I'm in the finance world. So he's famous in my eyes. Speaking of funny questions, when I went
• 18:35
  to his annual general meeting in Omaha and the US and people get there at like four AM in the
• 18:42
  morning to the best seats, anyway, they open up the question, they open up the folder questions
• 18:46
  and they only get through maybe 10 questions from the audience throughout the whole day. If your
• 18:51
  question gets asked, it's like, oh my god. Anyway, they asked this one guy. They were like, okay,
• 18:56
  man in the back left with the yellow hat and he stood up and he's like, hi Warren,
• 19:00
  I just wanted to say I named my first born Warren after you. No, I was like, oh, I was like,
• 19:06
  it's not even a question, buddy. It's not even a question. Yeah. So the reason I was talking about
• 19:13
  Warren Buffett is that he has started to make a lot of investments into Japan. So he has invested
• 19:19
  into five Japanese companies over the last couple of years, which for Warren Buffett, he
• 19:26
  doesn't do things in halves. He doesn't make small investments. He researchers probably for years
• 19:33
  and years and years on some things and then we'll make an investment or because he's got such a long
• 19:37
  term view and he's got such a large amount of money to invest. He can't make quick decisions
• 19:43
  and get in and out really quickly because we're talking about, you know, sometimes hundreds of
• 19:48
  millions of dollars, sometimes a billion dollars of investment. So he really makes sure that when he
• 19:55
  invests in something, he invests in it in a massive way and he invests in it for the very, very
• 20:00
  long term. So the fact that he's investing in Japan, he's got everyone being like, hmm, what's he
• 20:05
  seeing in Japan that I'm not or why is he so interested in Japan? And so yeah, the fact that he's
• 20:12
  invested in these five Japanese companies is quite interesting and got a lot of people interested
• 20:16
  in trying to figure out his investment strategy or his investment thinking. I think we can all
• 20:23
  learn a lot from Warren Sir Warren Buffett, Lord Warren Buffett, with his investment strategy
• 20:29
  and the sense that they all might be because of the way that he does his investments,
• 20:35
  researchers, buyers, holds, brilliant, even if it's $100, maybe that's just a good mentality
• 20:41
  we should think of, you know, definitely. The best of the best is doing it. There's something in
• 20:45
  that. Yeah, 100%. Also, you don't have to invest in, you know, fighting the best idea or
• 20:51
  the hottest thing right now, yeah, just start investing, invest in an index fund, invest in,
• 20:57
  invest in, invest in. 100% just start with a small amount. Then you've got that vested interest
• 21:03
  and you're like, okay, I've got that $50 invested. What's it going to do and why is it doing that?
• 21:09
  And then you'll start to seeing, you'll start giving it excited and you'll be like, okay, cool,
• 21:12
  now I'm going to invest more and more and more and more and more and more and before you know it,
• 21:17
  you're a bit carous. Gosh, I can't wait. God, it's just like, well, I can't wait for the day
• 21:22
  that we spend through and $50,000 a year on security. No, I think that we need to stay humble,
• 21:28
  actually, and never pay ourselves more than, actually, I don't know if I could live on 100 grand.
• 21:34
  I'm sorry, I could never get ahead. Imagine if that's what I earned for my whole life. I mean,
• 21:38
  it's not a bad salary, it's more just the fact that it's so hard. I could easily live off that
• 21:44
  if I knew my net worth was $100 billion like Warren Buffett. Yeah, I could easily live off
• 21:50
  100,000 dollars. Yeah. I think that would have been a good question for you to ask
• 21:55
  at the annual general meeting. Yeah. Like, how do you feel about money? Why do you not spend
• 22:02
  any of it? Well, maybe I'll get my thing in cap on and we can go to one of Warren Buffett's
• 22:06
  annual general meetings. Oh my god, over the next two years. Oh, my hand up and be the one that
• 22:10
  waves down their tension and then you're the one that asks the question. You would have a sign,
• 22:14
  you would be wearing some colorful top, you'd have your arm flailing about, you would get chosen,
• 22:19
  you 100% would get chosen. Or maybe I'd dress up as Warren Buffett just to really like,
• 22:23
  fuck someone over and then they're like, who's that? Is that Warren and then pick me?
• 22:27
  I reckon Warren should do that one time. Just pretend he's really late, but actually just be
• 22:30
  sitting in the crowd talking to people in disguise. Yeah, I've seen do a leaper and other sleigh
• 22:35
  breadies do that where they're like, yeah, I've seen Justin Bieber do it. Yeah. And they're like,
• 22:40
  are you a big fan? What's your favourite song? All of this. And then they realise it's
• 22:43
  quite funny. They slag off their musicals. I know. I'm just here with my partner. I don't
• 22:49
  actually like the musicals. Oh my god, sorry. I know we have to finish this podcast because we've
• 22:52
  been going for a while, but I was at a Christmas party and it was like a family of family of family
• 22:57
  friends. I didn't know anyone there except my cousins and this over in the UK. And I was like,
• 23:04
  into this conversation where they were slagging off just podcasts in general. And it was like,
• 23:08
  go on, everyone's, every man and their dog's got a podcast. And you know, they'll just talk
• 23:12
  about boring shit and like really, really just like going to town. And I just sort of was quite
• 23:17
  funny. So I kept asking questions. I was like, this is good market research. You know, I love that
• 23:21
  they have no idea that I have a podcast. And I could understand what they're trying to say in
• 23:25
  any way eventually. Like after I'd asked lots of questions, they were like, anyway, what are you
• 23:29
  doing? I was like, go on podcast. I mean, not all podcasts suck. Not all other mishit.
• 23:40
  Love them trying to save themselves. We can just agree. Anyway, if you think our podcast is not
• 23:45
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• 23:56
  if you enjoy it, we would really love that. We would love that. So thank you. And I hope you
• 24:00
  have a good week. Yeah, have a good week. Bye. Thank you so much for listening to the Curve Weekly.
• 24:06
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• 24:09
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• 24:29
  So yeah, see you next Tuesday. Well, see you next Tuesday. I mean Monday.