Latest / The Curve / A $6BN Divorce With No Prenup + Kendall Jenner's Investing Playbook

Transcript

A $6BN Divorce With No Prenup + Kendall Jenner's Investing Playbook · The Curve

• 0:01
  Coming up in today's episode, we're talking about Lululemon.
• 0:04
  The update is the person who founded this business is going through a divorce with his wife, who was also the first and head designer.
• 0:13
  She only owns 1%, she owns 9%.
• 0:16
  Shocker, they didn't sign a prenup.
• 0:17
  So we're going to talk about the drama and what's going on there.
• 0:20
  And Kendall Jenner has just invested in my favorite non-alcoholic drink.
• 0:24
  What does this mean for the entire health and wellness industry?
• 0:28
  And why are we seeing so many celebrities buy into private companies?
• 0:32
  This is The Curve Weekly, where we read the finance news so that you don't have to.
• 0:35
  I'm Sophie Hallwright, ex-TV and radio producer, who is sick and tired of not understanding money, investing, the economy.
• 0:41
  So we started this podcast.
• 0:42
  And today, Vic Harris is back in the hot seat.
• 0:44
  She's going to tell us everything that we need to know about today's finance news.
• 0:47
  But first, we've got a quick word from today's sponsor.
• 0:52
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• 0:59
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• 1:04
  And thank you so much to Generate for sponsoring this episode of The Curve Weekly.
• 1:08
  So I've got a new dress on.
• 1:12
  Oh God, this is a disaster.
• 1:14
  If you can't see, you should.
• 1:15
  No, don't watch.
• 1:17
  Okay, this is so bad.
• 1:18
  So I got a new dress that I wore to dinner last night with no bra, thinking it was completely fine.
• 1:27
  Basically, for anyone that's not looking, it's like a see-through dress, but there's flowers.
• 1:32
  over all the important areas on the model so when i looked at the photo i thought perfect i love that there's something see-through where they've thought about the fact that it always ruins what it looks like when you have to wear a bra and underwear under it yeah so i bought it thinking stunning and i just came in and everyone's like i can see your nipples so so she's going to sit i'm going to sit cross down the entire record sorry cross-legged
• 1:55
  Yeah, it's so awkward.
• 1:56
  I'm just going to sit here the entire recording looking really upset like I want to leave.
• 2:00
  She's not, though.
• 2:01
  I'm not.
• 2:01
  She's just trying to cover her private parts.
• 2:02
  I just really would love to save you all from my nipples.
• 2:06
  So apologies.
• 2:07
  Maybe you should have worn some active wear just for this next segment.
• 2:10
  Might have been a better idea.
• 2:11
  I mean, like, I would have worn anything.
• 2:13
  except the stress if I'm being honest.
• 2:14
  I would have.
• 2:16
  I would definitely.
• 2:17
  I mean, I also, side note, I'm seeing lots of people wear like Lululemon shorts or just hot pants.
• 2:23
  Is pants at the moment?
• 2:24
  Are you seeing that?
• 2:25
  No.
• 2:26
  Oh, okay, maybe it's not cool.
• 2:27
  I was wanting to ask you.
• 2:28
  Is this like a cool trend that I need to?
• 2:29
  I love that you want to ask me.
• 2:30
  Yeah, I know because you're always the head of the curve.
• 2:33
  Oh, see what I did there?
• 2:36
  Well, there is a big divorce going on with the Lululemon founder, Chip Wilson.
• 2:42
  We've spoken about him before.
• 2:43
  Yeah, we have.
• 2:43
  There was a bit of an uproar on the board.
• 2:45
  He wanted to bring in a different CEO that's coming in and the board didn't.
• 2:50
  And there was a bit of a revolt going on.
• 2:52
  But he's now in the news again because he's divorcing his wife.
• 2:55
  And they've been together for over 20 years.
• 2:57
  So I would like to ask the way you worded that, he is divorcing his wife.
• 3:02
  Sorry.
• 3:03
  They are separating.
• 3:04
  Right.
• 3:04
  They are divorcing.
• 3:06
  You stand corrected.
• 3:07
  Because the way you said it made me think, it sounded like he wants you to divorce and she wants nothing to do with it.
• 3:13
  And I'm sorry.
• 3:13
  That is how it has been portrayed in the media.
• 3:17
  And I have...
• 3:19
  just parroted that.
• 3:21
  So you're right.
• 3:22
  We have no idea who's divorcing who, but they are divorcing.
• 3:27
  And the key issue here is, drum roll.
• 3:33
  Oh, God, not a bloody, someone didn't have a prenup.
• 3:35
  Yes.
• 3:36
  There is no prenup.
• 3:37
  There is no prenatal agreement.
• 3:39
  No way.
• 3:40
  Okay, wait.
• 3:42
  So for context, he is 71.
• 3:43
  Yep.
• 3:45
  She's 52.
• 3:45
  Yep.
• 3:46
  They got married in 2002.
• 3:47
  Yes.
• 3:49
  What I will say, 2002, were people talking about prenups?
• 3:52
  I don't know.
• 3:53
  No.
• 3:54
  Well, also, Lululemon had only just started.
• 3:57
  It was four years old.
• 3:59
  And she actually helped create that business.
• 4:04
  Of course she did.
• 4:07
  This is not good.
• 4:08
  He has a stake.
• 4:10
  He has about a 9% stake in Lululemon.
• 4:12
  So that's close to about a billion dollars.
• 4:15
  Their entire fortune is worth over $6 billion.
• 4:19
  So we're not talking small numbers here.
• 4:20
  This is going to be an interesting thing to see what happens in terms of
• 4:25
  how they split that, $6 billion.
• 4:29
  Can we backtrack?
• 4:30
  Where did they get married?
• 4:31
  Because Lululemon is a Canadian company.
• 4:34
  It's a Canadian business, yes.
• 4:36
  So do you think they got married there?
• 4:37
  Yes.
• 4:38
  So they got married in Canada, so Canadian law comes into it.
• 4:42
  But Shannon is her name, and she has about 1% of Lululemon shares, so it's about $100 million.
• 4:52
  He's got about 9%.
• 4:54
  So she owns about a tenth of what he does.
• 4:57
  Did she work in it officially and that's why she has shares?
• 5:01
  So she was one of Lululemon's first employees.
• 5:04
  They're calling her like the founding lead designer.
• 5:06
  Huge.
• 5:07
  Yeah, exactly.
• 5:08
  And this is when the brand was literally nothing.
• 5:11
  She's also gone on to start kind of apparel brands.
• 5:14
  Kit and Ace.
• 5:15
  I don't know if you've heard any of her.
• 5:17
  She was integral in the start of it.
• 5:19
  and probably less so in the later years.
• 5:22
  But what I don't understand is if she was an early employee and now has 1%, because I would imagine if this was a case where there's no prenup and she was under the assumption that everything was going to be shared when they divorced, that she wouldn't have any shares in her name.
• 5:39
  We spoke about this with the new Apple CEO coming in last week.
• 5:43
  When you are CEO, part of that's paid as a salary and part of it's stock.
• 5:48
  So that will grow over time.
• 5:51
  So maybe that's a function of how he has nearly 9%.
• 5:55
  Maybe she sold down over time.
• 5:57
  Maybe it was in a joint, I don't know.
• 6:00
  I don't know the specifics, but they've also got an 18% stake in a Finnish sportswear company called Airbus.
• 6:07
  Amma Sports, and that owns Solomon, it owns Wilson.
• 6:10
  Oh, wow, okay.
• 6:10
  So it's not just Lululemon that they've got.
• 6:12
  So, yeah, the default under Canadian law without a prenup is that anything accumulated during the marriage is split.
• 6:21
  Why would this not all be split then?
• 6:23
  It probably will be, but they'll fight it, right?
• 6:26
  You can always fight it.
• 6:27
  Right, sorry.
• 6:28
  So I think I jumped to worst case scenario here and I thought, oh goodness, here we go.
• 6:33
  Another big high profile case where the woman's going to get totally shafted.
• 6:38
  But what we don't know is how it will evolve.
• 6:41
  They've also got children, so no doubt she probably stepped back to help facilitate children.
• 6:48
  that and look after the family life while he went on to, you know, being CEO of Lululemon, you definitely need some support.
• 6:56
  I bet she stepped back when the designs turned to shit.
• 7:00
  Yeah.
• 7:01
  Well, this is on to my next piece.
• 7:03
  Because I was about to say, yeah, how is it going?
• 7:05
  I feel like the business was doing badly.
• 7:07
  Is it still Lululemon?
• 7:09
  Yes.
• 7:10
  They had a result last week.
• 7:11
  Oh, God.
• 7:12
  Your face tells me it was dire.
• 7:13
  It was absolutely dire.
• 7:16
  The stock fell about 17%.
• 7:19
  Another 17%.
• 7:20
  It's down over 40% this year.
• 7:23
  It's at an eight-year low.
• 7:24
  For context, it was trading at about US $500 a share, and it is now at $100 a share.
• 7:30
  So it is fifth of its price.
• 7:32
  It's as Vic would say, on its knees.
• 7:34
  It's on its knees.
• 7:35
  We have a new CEO coming in, though.
• 7:38
  This is Heidi from Nike.
• 7:40
  This is who chipped in.
• 7:41
  You say that like I know Heidi.
• 7:43
  Oh, it's Heidi.
• 7:44
  Oh, my mate.
• 7:45
  Do I know Heidi?
• 7:46
  No.
• 7:46
  She's a long, long-term executive at Nike, and she's coming in next week to take over Lululemon as CEO.
• 7:54
  So there is a lot of excitement about her coming into this role because the brand is literally like –
• 8:03
  so lost its way.
• 8:04
  Like, it's – you've got new competitors.
• 8:06
  You've got – it just – it was so good, and I think it just got a bit lazy at the top, you know?
• 8:12
  It wasn't spending enough on, like, research, development.
• 8:14
  No.
• 8:14
  Like, if you look at how much it spent on marketing versus Nike and Adidas – and Nike and Adidas have been at the top of the game for, like, decades, right?
• 8:22
  And continue to be – yes, they're kind of – you know, there's these new competitors, but they still –
• 8:28
  have delivered and been very strong brands for a long time.
• 8:31
  They spend 10% to 12% of revenue on marketing.
• 8:34
  Lululemon spends about three.
• 8:35
  Wow, that's so interesting.
• 8:37
  And once you get into that spiral, you can't afford to spend that much on marketing.
• 8:41
  Yes.
• 8:41
  It's like, yeah, the death spiral.
• 8:43
  Also, it's classic.
• 8:44
  You know, it's exactly what we've spoken about.
• 8:46
  She's going into this sinking ship to try and bail out a whole lot of water, and it's already halfway underwater.
• 8:53
  The glass cliff.
• 8:53
  Yes.
• 8:54
  It's when women are bought in to save the day, and they've had male CEO after male CEO after male CEO.
• 8:59
  Their business is literally sinking.
• 9:02
  Sinking.
• 9:02
  It's a sinking ship.
• 9:03
  And it's like, okay, let's pivot and let's put in a woman.
• 9:05
  They look around for CEOs, and no guy will put their hand up.
• 9:08
  When companies are in crisis, they are significantly more likely to appoint a woman as CEO.
• 9:12
  Yeah.
• 9:13
  And when times are good, those jobs go to men.
• 9:15
  And it's frustrating because she's got such a tough job.
• 9:20
  If she doesn't do well, it's like, oh, well, you know, female CEOs, they just can't hack it.
• 9:25
  It's like, no, no, you've been given a building that's on fire.
• 9:28
  And all the fucking firemen have already tried to put it out.
• 9:31
  And it's not.
• 9:32
  It's still absolutely ablaze.
• 9:35
  It's not good.
• 9:36
  I think I would say no.
• 9:38
  I think if I was in a position where I was offered a job like that, I would just, I think...
• 9:42
  But also, if she does turn it around, you'd be hailed as one of the best CEOs.
• 9:46
  It's not that these women aren't capable.
• 9:48
  It's the fact that...
• 9:51
  they're they're pushing shit uphill it's about like the structure of the opportunity is just not in their favor and i also think you know to your point of like they didn't spend on marketing and nike and adidas spent 10 to 12 percent of their revenue like they're so far behind now if you look at all of the other brands that have popped up all the private companies and we've spoken about this before like lo and and there's just so many brands like this to choose from and
• 10:16
  I don't think immediately of Lululemon anymore at all.
• 10:20
  I have started to see some quite interesting activations and things.
• 10:24
  I don't know.
• 10:25
  I'm kind of – I don't think the brand's dead.
• 10:27
  I just don't think it's ever probably getting back to where it was unless it does some serious restructure or sells to a bigger business or buys a different brand.
• 10:37
  It really diversifies in a sense because there is so much – only so much you can grow with leggings.
• 10:43
  Well, because that was the thing, right?
• 10:44
  They started going into different, like they did tops and shorts and they were all really ugly.
• 10:49
  It was like, go back to OG.
• 10:50
  I have seen some stuff now though.
• 10:51
  I'm like, where are those shorts?
• 10:52
  Oh my gosh.
• 10:53
  No way.
• 10:54
  Yeah.
• 10:54
  Oh, who's the designer?
• 10:55
  Maybe they've got an amazing new designer in.
• 10:57
  Because that's the thing, right?
• 10:58
  I think if the product is good, people buy it.
• 11:02
  I'm so often looking at things and asking randoms where they got something from.
• 11:06
  Yeah, yeah.
• 11:07
  It's not just because I've seen an ad that I'll buy something.
• 11:09
  Yeah.
• 11:10
  Yeah, it's quite sad to see that, you know, when a company's doing well, the board doesn't feel the need to appoint a woman.
• 11:17
  And when it's burning, it's suddenly like, oh, we need some diversity.
• 11:20
  We need some diversity.
• 11:20
  Quick, quick, it's urgent.
• 11:22
  It's like, no, no, no, that diversity should have been well ahead of the time.
• 11:26
  I wonder the pressure of running a massive business like this and what that would put on a marriage.
• 11:31
  There's just so many relationships in the last few episodes of The Curve Weekly where we've spoken about these billionaires or millionaires that have separated from their long-term wife.
• 11:44
  after selling a business or after a massive streak of being inside like a huge growing business.
• 11:50
  I guess it'd be really interesting to look at how much stress and pressure and how many relationships survive that.
• 11:56
  I think it must be one of the hardest dynamics to come through the other end because you're seeing kind of the worst version of people when they're in this type of high stress environment.
• 12:06
  100%.
• 12:07
  And like, I just hate the narratives when I hear headlines of like,
• 12:14
  wealth it's like no no no he couldn't have got there without the support and I and I know I just used very traditional roles just then but it's it's you still see it so much and it's like no no what about being the CEO of the family how much should they have been but I actually don't even think that that
• 12:34
  I have people who might be so mad at me for saying this.
• 12:37
  I agree with what you're saying.
• 12:38
  I just don't think that that lands.
• 12:40
  So I think it's zooming out and finding different examples because if you just say to someone, yeah, well, how much does it cost to run a household?
• 12:47
  How much is daycare?
• 12:47
  How much is a private chef?
• 12:49
  How much is organizing?
• 12:51
  All of that stuff, which is crazy.
• 12:52
  So valuable.
• 12:53
  And yeah, it would be really expensive if you outsourced it.
• 12:55
  I think it's bigger than that.
• 12:56
  It's the emotional toll of being in a relationship with somebody that is arguably the most stressed, probably worst version of themselves.
• 13:06
  I wonder how many relationships survive that level of business pressure.
• 13:11
  And I mean, like, I don't know about you, but after a 14-hour day, I don't come home feeling that sexy.
• 13:15
  Jeff Bezos, Bill Gates.
• 13:18
  Like, there's been a lot of divorces of, yeah.
• 13:20
  Also, money does...
• 13:22
  strange things to you.
• 13:22
  That's true.
• 13:23
  Billions and billions.
• 13:24
  Well, I just think the biggest thing that a lot of these billionaires get wrong is knowing when to stop.
• 13:30
  I think that you do not need, no one needs that much money.
• 13:35
  Most of the CEOs that we speak about on this podcast don't need the amount of money that they have.
• 13:40
  And you do need to have an end goal, whether it's
• 13:43
  how much you need to retire, whatever it is.
• 13:45
  Like I just, there's got to be some kind of weird switch in people that are billionaires that they don't know when to stop.
• 13:51
  Or that money just becomes irrelevant, you know?
• 13:54
  Like it's just, there's no concept of it.
• 13:56
  Do you know what I mean?
• 13:56
  Yeah, and I just think the addiction to being that stressed and that busy.
• 14:00
  But why do we say that they're stressed and busy?
• 14:03
  Because you just can't tell me someone that's running a business that's down 40% this year is not, like, probably shitting themselves in their sleep.
• 14:11
  Like, I just don't see how anyone could deal with that kind of stress.
• 14:14
  But these people, like the Apple CEO, they have assistants.
• 14:21
  Yes, there is accountability and pressure.
• 14:25
  But...
• 14:26
  They have money outsourced.
• 14:28
  Yeah.
• 14:28
  These are big, big businesses.
• 14:29
  They're getting paid millions.
• 14:31
  Yeah.
• 14:32
  I guess I just can't imagine it.
• 14:34
  I think what we have.
• 14:35
  You'd still be running around answering emails.
• 14:37
  No, but what we have is the stress without the money.
• 14:40
  So it's really hard to imagine.
• 14:42
  Yeah.
• 14:42
  And I'm not saying the stress of running the curve is anywhere near like any of these businesses.
• 14:46
  But it's more just like – but knowing how stressful it is with just like five people or ten people in a team, I can't imagine dealing with this.
• 14:54
  I think it's more the conversations you'd come home to of like –
• 14:57
  I have just had to... Fire 50 people.
• 15:02
  Fire 5,000 or have a massive restructure or our share price is down 40% and we are now getting approached to be taken over by Nike or something.
• 15:13
  We're in a position where we're so vulnerable.
• 15:15
  How do we get out of it to someone else that hasn't been... Intense work.
• 15:19
  Yeah, who hasn't been in really intense work or doesn't do something as...
• 15:23
  quote unquote what they think is as important.
• 15:26
  Do you mean like the vacuum cleaner broke?
• 15:28
  Yeah, exactly.
• 15:29
  Versus firing 50,000 people.
• 15:31
  Yeah.
• 15:31
  Yeah.
• 15:32
  The dynamic would be quite.
• 15:33
  It'd be so weird.
• 15:34
  It'd be so weird.
• 15:36
  But there's, yeah.
• 15:37
  Oh my God.
• 15:38
  This is such a contendious topic.
• 15:39
  Yeah, I know.
• 15:40
  I think we should move on to the next conversation.
• 15:42
  Way more calming.
• 15:43
  Because it's calming.
• 15:44
  It's exciting.
• 15:45
  It's my favorite drink ever.
• 15:46
  Yes.
• 15:46
  What are we talking about after the break, Vic?
• 15:48
  We are talking about Kendall Jenner's new drink.
• 15:52
  business venture.
• 15:53
  I can't believe you're giving nothing away.
• 15:54
  Okay, we've got a quick word from today's sponsor and then we'll be back with that story.
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• 16:33
  And thank you so much to Generate for making this episode possible.
• 16:37
  Kendall Jenner.
• 16:38
  Would we say she's our favorite of the Jenner family?
• 16:41
  She's for sure mine.
• 16:42
  I mean, she's dating Jacob Elordi.
• 16:43
  I mean, could she?
• 16:44
  Yeah, she's my favorite.
• 16:46
  I reckon the end game.
• 16:47
  Yeah, I actually agree.
• 16:49
  I actually totally agree with you.
• 16:51
  But when I see all these photos popping up, I can't tell if it's AI or real.
• 16:56
  It's real.
• 16:56
  It's real.
• 16:58
  I do think they look together.
• 16:59
  Because she's so beautiful and he's so beautiful.
• 17:01
  It must be AI for me.
• 17:02
  But she's had this massive, you know, when she's talked publicly, she's done a podcast with Jay Shetty and you can tell she's had a real, I don't want to say spiritual awakening, but she's, I would say she seems the most grounded probably.
• 17:15
  Yeah.
• 17:15
  In a way.
• 17:16
  And then.
• 17:17
  Yeah.
• 17:17
  I've seen lots of videos of Jacob Elordi being harassed by media, and he seems so genuine.
• 17:22
  He's like, please leave me till I just be a normal person.
• 17:25
  I wonder if they've just got this quite normal, lovely relationship where they're both just twinging out of tens.
• 17:29
  Do you think they look at each other and go, damn.
• 17:32
  God, we're hot.
• 17:33
  We're so hot.
• 17:34
  I think you would have to.
• 17:35
  Yeah.
• 17:36
  Anyway, she has bought a steak in Tripp.
• 17:39
  Now, some people who don't live in the UK might not know what Tripp is.
• 17:42
  Guys, Tripp is my favorite non-alcoholic drink.
• 17:46
  It is a British calming drinks brand, and it's in this little pastel can.
• 17:52
  And you can get orange, you can get purple, you can get yellow, you can get pink.
• 17:56
  There's lots of different flavors.
• 17:58
  And it started as a CBD drink, actually.
• 18:00
  And I've actually still thought it is, so I've never bought it.
• 18:03
  Say it.
• 18:03
  I think it's a CBD drink.
• 18:04
  Is it not?
• 18:05
  So no, the CBD now makes up less than 3% of their revenue.
• 18:09
  And they've moved into like magnesium infused sparkling water and like all these to relieve stress and calm.
• 18:16
  So they've kind of branched out a bit, but they did start with their CBD.
• 18:20
  I mean, I love the CBD drugs.
• 18:21
  I buy them all the time.
• 18:22
  As someone that doesn't love alcohol, this has been such a good alternative for me.
• 18:26
  And I've noticed it starting to be stocked in random pubs.
• 18:30
  Yeah.
• 18:30
  Which I actually thought this must be getting huge because the fact that it's not just an cute little organic grocer to me says it's becoming so much more mainstream.
• 18:38
  But interestingly, she's already got 818 tequila and now she's got trip.
• 18:42
  But she also did 818 when she was... A party girl.
• 18:46
  A party girl.
• 18:46
  And I think she's had this big sort of rebrand and she's now...
• 18:49
  So it'll be interesting to see if she really cares that much about her 818 anymore.
• 18:53
  I mean, I do.
• 18:55
  Vic is the top customer.
• 18:57
  Notoriously bought 11 bottles in one go accidentally.
• 19:00
  It's like, when I was doing the research, and it's like 818 Tequila, which did 25 million in sales last year.
• 19:05
  I'm like...
• 19:06
  I was 20 of those.
• 19:09
  No, it's a great tequila, yes.
• 19:11
  And Tripp's also a great drink.
• 19:12
  To be honest, 818 and Tripp together would be a really good combo.
• 19:18
  Maybe they'll do that.
• 19:19
  Yeah, maybe there's a collab coming.
• 19:20
  I mean, we've spoken about how...
• 19:23
  ambassadors and influencers and celebrities, instead of just pushing a product, they're now buying equity so that when they do push the product, it generates more sales, more profits, they benefit.
• 19:33
  And it's a great strategy.
• 19:34
  I mean, Christian has been doing it for all her kids for many, many years now.
• 19:38
  Oh, my God, have you seen the Alex Earl?
• 19:41
  I haven't seen it yet, but it is my holiday watch.
• 19:44
  So the dad, everyone's like, Kris Jenner, watch out.
• 19:48
  Like the dad who manages Alex Earl and your sister and like he's so funny.
• 19:53
  Anyway.
• 19:54
  He's a new character.
• 19:55
  I didn't know about it.
• 19:56
  He's the dadager.
• 19:57
  Dadager.
• 19:57
  Dadager, yeah.
• 19:58
  I mean Kylie Jenner, she's got Kylie Cosmetics.
• 20:00
  Kim's got Skims.
• 20:02
  Kourtney's got Lemmy.
• 20:03
  I mean they're all genius, aren't they?
• 20:05
  They're such clever business people.
• 20:06
  But also –
• 20:08
  The whole wellness space.
• 20:09
  I mean, we literally spoke only a few weeks ago how Alex Earl bought into Symbiotica.
• 20:14
  That's in the wellness space.
• 20:15
  We've now got this with Kendall Jenner buying a steak in Trip.
• 20:21
  Can I ask, has she actually bought a steak or do you think that it's in exchange for marketing?
• 20:26
  Did she put money out there?
• 20:27
  Or is it not public?
• 20:28
  Well, that was the headline.
• 20:30
  It's not a public company, so we don't know.
• 20:32
  But...
• 20:33
  Because I'd be interested to go.
• 20:34
  It's probably a combination of both.
• 20:35
  Like, look, this is what I would normally charge to push the product, like market the product.
• 20:39
  I'm happy to discount that and only put an X amount and do X amount of deliverables.
• 20:43
  There'd be a whole agreement and contracts for two years, three years, whatever.
• 20:49
  I just had a thought.
• 20:50
  She's American.
• 20:51
  This is a British brand.
• 20:52
  Maybe they're expanding to America.
• 20:54
  Great US ambassador to get on board.
• 20:56
  This trip was founded by a husband and wife, wasn't it?
• 21:00
  Yeah.
• 21:00
  Yeah.
• 21:01
  Only like six years ago, 2019.
• 21:03
  To get that big in that amount of time when there's so many drink companies is quite impressive.
• 21:09
  And it's done £70 million in revenue last year.
• 21:14
  I honestly was thinking about this the other day.
• 21:17
  It blows my mind there's this many people creating drink brands.
• 21:20
  When it's such a small margin you make, you have to sell so many.
• 21:24
  And Rosie Huntington-Whitley has also invested.
• 21:27
  And Joe Jonas have also invested.
• 21:29
  In Trip.
• 21:29
  Yeah.
• 21:29
  Yeah.
• 21:30
  Holy shit, that's a stellar lineup.
• 21:32
  Yeah.
• 21:33
  I mean, there's just this wellness category.
• 21:35
  Like we talked about, you know, athleisure, obviously Lululemon's not doing well, but you've got so many other brands like Ello, et cetera, that are flying off the shelves.
• 21:42
  That's kind of like the active wear segment of the wellness.
• 21:45
  You've now got the supplements with symbiotic.
• 21:48
  You've got the drinks.
• 21:50
  People are drinking less.
• 21:51
  Like the numbers of this whole sober curious movement is...
• 21:55
  and Gen Zs is crazy.
• 21:58
  The UK saw a 20-year low in alcohol consumption among 16 to 24-year-olds.
• 22:03
  People don't want to drink anymore.
• 22:05
  They don't want to be wasted on the weekend.
• 22:09
  They want to de-stress.
• 22:10
  They want to calm themselves.
• 22:12
  I mean...
• 22:13
  I still want to drink 818 tequila.
• 22:15
  But we've also seen that reflected in share prices of alcohol businesses.
• 22:20
  And look, there's alcohol businesses that have pivoted really well.
• 22:23
  And, you know, spirits will survive longer.
• 22:27
  But it's the wine, it's the beer, it's the really unhealthy products.
• 22:32
  Oh, this is a really interesting point.
• 22:36
  It's the things that are difficult to unwind into something else.
• 22:40
  You can't go and say we've got sugar-free wine or we've got carb-free beer.
• 22:44
  I mean, maybe you can, but it's not going to be the same.
• 22:46
  And it's those businesses that can't innovate fast enough that will get left behind.
• 22:50
  Yeah, 100%.
• 22:51
  This is honestly now one of the fastest growing industries.
• 22:54
  And I'm definitely looking at how we can get more exposure to it in the future.
• 22:59
  It'd be so cool if we can invest in private companies.
• 23:03
  I know.
• 23:03
  One day.
• 23:04
  Because, for example, you invest in Almighty, which is one of our favorite New Zealand non-alcoholic drink brands.
• 23:10
  It's so delicious.
• 23:11
  Yeah.
• 23:11
  If we could get access to them, put that in the fund, that would be so cool.
• 23:14
  Yes.
• 23:14
  Yes.
• 23:15
  Yeah, no, it would be.
• 23:16
  Do you think it's worth just giving a little nod slash like, holy shit, they are so much more clever than they get credit for.
• 23:24
  The Kardashians.
• 23:25
  The entire Kardashian-Jenner clan.
• 23:27
  They've been so ridiculed as this sort of bimbo influence.
• 23:32
  They have...
• 23:33
  absolutely created billion dollar empires across all their kids it's so impressive and i do really like the celebrities that are doing this because you know there's going to be a day when you you can't act you can't model you can't you know like your career as you know or you you can't sing or you're not the hot new artist that people want to listen to and so diversifying your brand is
• 23:57
  And building the wealth for the next generation and all of that is such a great way to think.
• 24:05
  And I think we can all do it in our own sense.
• 24:08
  It's like, how do we diversify our revenue or our wealth?
• 24:12
  And also future-proof your wealth.
• 24:14
  I think that...
• 24:15
  And sometimes people panic when they think, oh, well, I can't diversify into the point of like, I've got a full-time job.
• 24:21
  I don't have time to go and have three other streams of income.
• 24:24
  But I think probably a more zoomed out approach of thinking about this or learning from this is, you know, in the same way, if you were a sports person, you know that career is not going to last forever.
• 24:35
  I mean, I know when I was in radio, I felt like this.
• 24:37
  I could sort of see that the industry in general was changing.
• 24:40
  shifting and changing and it felt quite high risk to be putting all my skills and energy into that look at where you are in terms of your career are you in a industry or an area that's growing like I need to eat my own words to be honest because I get paid by the curve my money's in the curve fund and my wealth's in the curve business yeah me too I'm like completely and the most undiversified person you've ever seen so maybe from the last last week's episode when you mentioned about you know the child care
• 25:07
  Maybe there is.
• 25:08
  Should we do a little off shoot?
• 25:10
  Little Curves.
• 25:10
  Little Curves.
• 25:11
  Little Curves.
• 25:12
  It's a community childcare program.
• 25:13
  Yeah, yeah, yeah.
• 25:14
  Where you – We're kind of on to something.
• 25:16
  Yeah, and you invest at the same time as you pay for the childcare or like half your money.
• 25:20
  Childcare's free, but you have to invest in the Curves.
• 25:22
  Oh, love that.
• 25:24
  There's so many legalities in there.
• 25:25
  Yeah, yeah, yeah.
• 25:26
  We're joking, everyone.
• 25:27
  We're joking.
• 25:28
  Although, like, if you know what's to invest, I don't know.
• 25:31
  Yes, but the Kendall, Jenna, Kardashian clan, absolutely killing it.
• 25:37
  I mean, the OG was 50 Cent when he invested in vitamin water.
• 25:40
  Do you remember that?
• 25:41
  Oh, yes.
• 25:42
  So do you remember vitamin water was that?
• 25:45
  They were also the sort of almost first product placement in shows.
• 25:49
  Yeah.
• 25:49
  I remember I was re-watching Gossip Girl for the 150th time the other day.
• 25:53
  I feel like you would know that word for word now.
• 25:55
  I kind of do.
• 25:56
  Yeah.
• 25:56
  And Jeannie was at the white party going up and ordering, and she was like, hi, I'll have a rescue, please.
• 26:01
  And she, like, picks up her vitamin water, and I was like, oh, my God.
• 26:04
  Yeah, yeah.
• 26:05
  How did I not pick up on this at the time or the other times I've watched the show?
• 26:09
  That's crazy.
• 26:09
  So he was doing this from, like, forever ago.
• 26:12
  And Michael Jordan with Nike, I mean, he is, yeah.
• 26:15
  Is he an investor?
• 26:16
  He, well, the Air Jordan, the shoe, he was the first celebrity to get a cut of revenue of a product with his name on it.
• 26:25
  And his mum fought for that.
• 26:26
  It's like quite an incredible story.
• 26:28
  Was Yeezy and Kanye West the same?
• 26:30
  Adidas, yeah.
• 26:31
  Yeah.
• 26:32
  That all fell out.
• 26:32
  Yeah.
• 26:33
  Yeah.
• 26:33
  I mean, George Clooney, he's got Casamigos, another tequila I love.
• 26:37
  Honestly, there's so many celebrities.
• 26:38
  It's popping up the whole tequila industry.
• 26:40
  There's so many celebrities that are doing this and it's...
• 26:44
  It's so genius.
• 26:45
  There's a positive within the story.
• 26:47
  And it's interesting because I asked for feedback from people that listened to the podcast a couple of weeks ago.
• 26:52
  And thank you to everyone that gave feedback.
• 26:54
  It's just so helpful to be able to iterate the content and make sure that we're delivering what you want to hear.
• 26:59
  But someone said, you know, I don't want to listen to celebrity news.
• 27:03
  And I was like, oh, it's really interesting to hear that because obviously that was one person.
• 27:08
  What I think this is doing is it's positioning the stock market business investing into mainstream, like front of mind.
• 27:18
  For a lot of people who are not interested in transport businesses or airline businesses or all these companies that are kind of boring.
• 27:25
  It shows how it's all weaved together.
• 27:27
  Well, it also just, it makes it, it kind of makes it feel a bit cooler to invest.
• 27:31
  And relatable.
• 27:31
  And relatable.
• 27:32
  I mean, we're not celebrities, but you know.
• 27:33
  No, no, but I just mean all these, all these famous people are investing in businesses.
• 27:38
  Yes, they're private, so that's different to the stock market, but the general idea is the same.
• 27:44
  They're trying to buy a stake in a business because they want to get a return from businesses they believe in, use.
• 27:49
  Fact.
• 27:50
  It's the exact same thing as investing in public companies.
• 27:52
  I think it builds trust.
• 27:53
  If I see Trip now being promoted by Kendall Jenner, I'm like, well, she's got a vested interest.
• 27:57
  Like there's, it's not just, she's just pushing the product to get paid.
• 28:00
  Like I know she's still getting return out of it, but it's like, it seems more genuine because she's, you don't just invest in businesses that you don't believe in.
• 28:08
  Yeah.
• 28:08
  And also so publicly.
• 28:10
  Yeah.
• 28:10
  It's like, it's such a huge risk for her if she's going out and talking about it.
• 28:14
  Yeah.
• 28:14
  Like, totally agree.
• 28:15
  Go Kendall.
• 28:16
  Go Kendall.
• 28:17
  Big fan.
• 28:18
  Okay, we've got a community question that we're going to answer.
• 28:21
  It's quite a good one, actually.
• 28:23
  So she said, a few years ago, based on what you guys said on the podcast, I reset where my retirement money is.
• 28:31
  So I am currently 44.
• 28:33
  The split that I've put my money in is 89% growth and 11% equity.
• 28:36
  Over the past year...
• 28:41
  It's done poorly.
• 28:42
  So 3.1% to 3.5% return.
• 28:45
  Lots of scary ghost faces.
• 28:48
  Obviously, that's not keeping up with inflation.
• 28:51
  I'm thinking of moving to an active growth fund, which is not an actively managed fund, but has very low fees and excellent results.
• 29:00
  It's not been set up for very long, like less than five years.
• 29:03
  How important is the long-term results or track record fund?
• 29:06
  That's a very good question.
• 29:08
  She's very informed.
• 29:09
  Yes.
• 29:09
  Look, I would say 3% for a growth fund is not ideal.
• 29:14
  We know, we've spoken on the podcast many times about how long-term, the stock market's done about 10% returns.
• 29:19
  So anything near that is kind of what you should be getting.
• 29:23
  And yes, there'll be years it's up 20 and there'll be years and it might be down two, but to have that over the long run is pretty low.
• 29:30
  I would say long-term performance is important, but...
• 29:37
  If someone's not delivering over the long term, you should move.
• 29:41
  Perhaps what you're looking at, this new fund could be good.
• 29:43
  It could be.
• 29:44
  But also generally the overarching ginormous red flag here is that if you are in a growth fund and it's returning not even 4%, that's not keeping up anywhere near what the market's doing.
• 29:56
  So you could just be in a totally passive one where you're not paying any fees and be doing better.
• 30:00
  And it's like, do I want to take the risk that this new fund's going to do better or do I want to stick around and get 3%?
• 30:06
  That's kind of how you should be thinking.
• 30:08
  I think maybe the second part of this question that is worth answering is something has been around for less than five years.
• 30:14
  The reason she's obviously bringing that up is because we talk about you want to look at a long track record.
• 30:19
  Ideally, you want someone to have performed really well or got good returns over a long period because that shows it's not just like one really good year that they've had.
• 30:26
  Yeah.
• 30:27
  To be honest, I would have said five years is not that short.
• 30:30
  Like, it's not ages.
• 30:31
  I would look at, like, if they've got three years, but just never look at the one month, one year.
• 30:35
  Like, it's so easy to do well in a short period.
• 30:38
  Yeah, yeah.
• 30:38
  And we are long-term investors, so therefore the longest period you can find is what you should be looking for.
• 30:45
  I'm not going to mention my holiday again because I think that I've been the most annoying bitch in the world, but I am going on holiday.
• 30:51
  In case you missed it, I'm going to be a group.
• 30:53
  We're really excited for you to bring back a lot of facts on the Greek economy.
• 30:56
  Yeah, don't you worry.
• 30:56
  I'll be researching the whole time.
• 30:58
  Thank you.
• 30:58
  While I'm lying on a boat, I will be tanning and just researching, you know.
• 31:01
  Nice.
• 31:02
  Work, work, work.
• 31:02
  Work, work.
• 31:03
  No, we've got our last episode coming out this Friday.
• 31:05
  It's a property episode from the Property Podcast.
• 31:08
  And then we're doing a throwback for the next two weeks on our OG Vintage Curve episodes for anyone that's new to investing and wants to go back and learn the basics.
• 31:17
  So we will see you at the start of October, back to regular programming.
• 31:21
  But yes, thanks so much for listening and we'll be back soon.
• 31:25
  See you.
• 31:25
  Thank you so much for listening to The Curve Weekly.
• 31:27
  Make sure you hit subscribe or follow wherever you're listening so you're always up to date with the latest finance and investing news.
• 31:33
  And feel free to leave a comment to let us know what you thought about this episode because we would love your feedback.
• 31:37
  We've got new Curve Weekly episodes for you to listen to every Monday.
• 31:40
  But until then, listen to Erasing the Curve.
• 31:43
  These are our in-depth podcast episodes where we chat about all things money.
• 31:46
  We're also around all week on socials if you're hungry for more Curve content and all the links are in this podcast show notes.
• 31:51
  We hope you have a great week
• 31:55
  day.
• 32:04
  Okay, quickly, the curve was created to empower and educate you about investing, but we are not financial advisors.
• 32:09
  Our platform exists for educational purposes only, and it doesn't provide personalized investing advice for your individual needs and should not be relied upon to make an investment or financial decision.
• 32:19
  And always remember to do your own research before making any investment or financial decision.
• 32:24
  We're here for any knowledge and support you need, but the final call is always yours.
• 32:28
  And thanks for being here.
• 32:29
  You got this.
• 32:30
  Yeah, we know you got this.