Latest / The Curve / Why Tesla Investors Are Jumping Ship.

Transcript

Why Tesla Investors Are Jumping Ship. · The Curve

0:00
Tempo is a brand new investing app available in New Zealand and we are very excited to
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be telling you about how it works and how you can use it.
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But just firstly to let you know, in 2023 they conducted a survey with a thousand Kiwis
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and they found that 27% of people, who they spoke to, didn't know where to start when
0:23
it came to investing.
0:24
And we're probably guessing, God a few of those people are maybe listening to this podcast
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so keep listening.
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So the great thing about Tempo is that their goal is to take the guesswork out of investing.
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When you sign up they ask you some pretty simple questions including how you feel about
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the idea of your investment going up and down because some do more than others.
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You tell them how much you want to save and they recommend a mix of their funds for you.
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It's called guided investing.
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You're giving investment advice from your experts, how cool is that?
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Yes, it's so cool.
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And also because they track your goal progress, they're also able to recommend changes to
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your investment mix over time which is so great.
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If you're a member of our investing club, we've got an amazing offer.
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So to join Tempo you'll get $10, kickstart into your account.
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If you would like to learn more about how you can get that, anything you need to know about
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the investing club or Tempo, you can find that in the link of our podcast show notes.
1:20
Let's make your investing journey as exciting as it should be.
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And just a quick little testimonial from someone in our community who is using Tempo at the moment.
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Wow, I just joined Tempo thanks to the recommendation from the Curve
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and I'm loving the layout.
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The breakdowns are exactly how I want my investments to be laid out for me.
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Isn't that cute?
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Some fine print for our lovely listeners.
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This offer is only for New Zealand residents and terms of conditions apply.
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So investing with Tempo means you'll invest in four side-bar funds and receive financial
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For more information, including the required disclosures for Tempo,
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hit the link in the show notes of this podcast.
1:59
I've got some exciting news.
2:00
Oh, here we go.
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You're pregnant.
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Can you stop guessing that?
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It's so far.
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I'm just so excited for the day that you tell me that over a podcast.
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Oh my gosh.
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Oh yeah, because you know I wouldn't tell you in real life.
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All the juicy stuff she leaves with the podcast.
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No, I was lying in bed last night, scrolling my phone, you know, just all on Instagram
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to it.
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And then I thought, I'm not going to sleep, am I?
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Like I'm not going to sleep.
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I mean, I sort of checked my bank account, so I was like scrolling through my accounts
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because I've been quite, I tried, you've seen screenshots of me in my online banking
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world.
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Like I really am trying to use my pots so that I've got my like essentials, my non-essentials.
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Yeah.
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You know, like I have a little house next to them, like I, yeah, anyway.
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Also, actually, we have just put out a second budgeting episode.
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You should listen to both of those if you're like, I know I need to be better with personal
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finance, but don't really know where to start.
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Anyway, I then went into my emergency fund.
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Oh yeah.
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And I was like trying to figure out how far off my target I was, I'm only 600 pounds
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off my emergency fund target, which is six months of living expenses.
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Love that?
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That's quite a lot.
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Yeah.
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Don't celebrate my going and spending.
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No, I agree.
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But like a lot of people might listen and think six months is quite a lot, which it is.
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You do differently.
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That's like on the higher.
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Yeah.
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I think I'm just, I don't know why I'm feeling like a bit just like stressy about money
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at the moment.
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And it's not that I don't want to invest it's just I was like, that makes me feel, it gives
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me a good piece of mind.
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Yeah.
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Anyway, I was like, that's incredible.
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Like I, you know, I set that last year, and you've achieved it.
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And I've achieved it.
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Like I.
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So how long will that take you?
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That's 600.
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Like another two.
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I'll have it in a month.
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I'll be.
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Amazing.
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I'll have my emergency fund totally locked.
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Maybe we should celebrate just a little bit.
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You can shout.
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Emergency margaritas.
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But like seriously though, for someone who, because I think learning out the idea of goals
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and then actually doing it is a totally different thing.
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And you know, we've recorded a podcast with this amazing doctor who specialises in dopamine
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and we're talking about shopping addictions and that hasn't come out yet.
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So you might be like, what are you talking about?
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It was so good.
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And what you really spoke about was that you can start getting consistency dopamine.
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So like the dopamine you get from going and like, splurging on shopping or one off purchases.
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The dopamine you get from being consistent and holding yourself accountable, getting
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towards your goals can have the same impact.
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And I totally experienced that last night.
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I was in such a high.
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I was like, well, I just want to change for the rest now.
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And then just, but no, I was thinking, how can I make 600 pounds quicker?
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You know?
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I just want to get there, have that done, and then stop thinking about it.
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But I just don't know what would happen if I had to use it.
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I think I would find it really hard to use it because it's taken so long to get to having
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it.
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Do you know what I mean?
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Yeah.
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It's almost like you need to write a list of that.
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That's a really good idea.
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That's a really good idea.
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Yeah.
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Quite scary to write, but actually a good idea.
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Yeah.
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Because I've got, on my essentials, non-essentials, I've got, I've like created this sort
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of, it's actually not that ugly, but like a little, you know, you can put in the jizz
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on your online banking.
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So if you're saving for a dog, you can put a dog on it.
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Yeah.
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I actually have a mesa fund.
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Do you?
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Well, I was thinking of getting insurance, and I was like, you know what?
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Do you have pet insurance?
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No.
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I used to.
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Why not?
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I used to have pet insurance.
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That's so weird for you.
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I've got like a recurring vet subscription.
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So within that, it's like vet bills are covered.
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If she breaks a leg and needs surgery, that's not covered.
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Why would you not have insurance?
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Because I've kind of set up my own insurance fund.
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So I transfer money into a mesa fund that's building over time.
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And I've got about, maybe, about 1,500 pounds in there now.
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Oh, whoa.
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Yeah.
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So if anything happens, I will use that.
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And then if it doesn't happen, and no, you can't spend it, because you don't know
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when your dog's going to break the leg.
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No, but like if she...
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Oh, my God, don't say that.
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You actually would be...
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He's such a sad, and it will grow over time.
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Like if I've got it in a high returning savings account, then it'll grow over time.
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But obviously the risk is, that's not for everyone, because the risk is if tomorrow...
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She needs a back surgery.
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Tomorrow, then.
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And it's 1,500, I mean, 15,000 pounds.
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Yeah.
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But why wouldn't the amount you'd pay for insurance be way less than what you're putting
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in that amount?
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With insurance in particular, there's so, so many more loop holes of what they won't
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cover.
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Do you know what I mean?
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Like, yeah, it's not like a human.
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If you're sick, you need surgery, you get covered.
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It's so much more dependent on like the type of dog, like the extent of the surgery is
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it recurring, like, so all these things, they just like don't cover for, which is so
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annoying.
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Look, aren't you?
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Unless you pay super high premiums, so I'm just putting that into a fund and seeing
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that grows.
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And I was like, look, that's so good, because you always hear it of people being like,
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oh, and I needed to pay for my dogs, back surgery, and it was 5,000 pounds or dollars or
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whatever.
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And I was like, well, why isn't it covered by insurance?
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They're like, oh, usually the vet bills are, but the rest isn't.
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You know, and it's just like all these...
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But that's just like a human.
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You just have to get the right insurance.
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You can be covered for everything, because when I was looking into getting a dog, which
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you know, is actually, now I've hit my emergency fund, I probably could start thinking
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about that as my next little goal.
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I think my housemates might kick me out, but...
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They would love it.
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No, they would like to meet my friend.
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It blizzes hard.
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Like, he knows me well, and he was like, you know, the dog would be 100% your responsibility,
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right?
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Yeah.
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I hate asking people like us to make a subtle, subtle, but also fear, because there would
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be a time where I'd like, forgotten to pick up its poems, some on steps, and I need
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it to life, you know?
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I want to be like, almost sane and not heard with a dog, you know?
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But it's hard with a puppy, because you can't control...
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It's like a baby, you know?
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Me, so I was a puppy in lockdown, so...
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Oh, I know.
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I was there.
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She was so annoying.
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I was the flatmate.
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So I get it.
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Yeah.
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But like, I remember, I remember I got a new flatmate, and she was about to move in, and
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I was like, hi, babe.
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Justify I, I'm getting a puppy next week.
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I just wanted to let you know, like, I'll make sure that she doesn't bark, and anyway,
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I said, but totally understand if you don't want to move in, and she was like, no, it's
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fine.
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It's fine.
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And then...
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I don't know how she slept through it, but I don't think she did that, because I was sleeping
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in the room that was right by me, so it was better.
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And she squealed, like...
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Yeah.
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But it wasn't until years later.
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She was like, no, no, I could hear her every bark, and I was like, that's so bad.
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But that's the thing, right?
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Which is why I'm thinking, maybe I get a dog, rather than a puppy, maybe I skip, and
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I get a rescue dog.
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Rescue dog, yeah.
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Anyway.
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Sorry.
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Yeah.
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This is not a pet podcast.
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No, it's not.
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But maybe that's him.
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But do you know what I would love to look into?
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Is some pet investing ideas, and then besting club, because I remember you've...
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I've got a pretty long list to look at for the besting club, really.
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I feel like every podcast, or we should do that, and we should do that.
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No, it's good, though.
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It's so good to have...
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I love it.
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When I saw you post, like, okay, taking suggestions for what we need to look at next month,
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and there was so many comments of people suggesting stuff.
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I was like, that's amazing.
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31 suggestions, like, that's so cool.
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That's one a day.
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Get going, then.
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You want you?
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Okay, bye.
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But one company that we have spoken about in the club, and that's in the news, then
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we're going to talk about, is Tesla.
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Yes.
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It's this really interesting, you know, company that you would not have heard of.
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Yes.
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That's a very, very boring man.
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Yes, that you would never have heard of.
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Not for a sec.
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Not for a sec.
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I watched.
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I watched.
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I watched.
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I've got things I want to say to her.
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I watched a video about Elon Musk's dad.
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Do you know he got a stepdaughter pregnant?
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What?
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I know.
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Elon Musk's dad.
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Yeah.
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Got his stepdaughter pregnant.
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40 years younger than her.
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He was 17.
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She was 30.
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Grossay.
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Sorry.
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Oh, my God.
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Yeah.
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Who?
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Wait.
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And he's like, and I asked to get it DNA test, because you never know with woman.
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I was like, or you sound like an absolute.
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And that's sorry.
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That's Elon Musk's dad.
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Dad.
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Yeah.
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Okay.
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So he hasn't got the most incredible role model.
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No.
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Was he also a successful businessman?
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No.
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A wonderlake?
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Yeah, right.
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No.
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Anyway, Tesla.
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So we all know that Elon Musk is kind of become Trump's right hand man, and he's in the
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Oval Office with him.
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He's standing next to him when he's writing stuff, like it's just like the kind of real
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buddy buddy.
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He was on the campaign trail and everything, but it's actually started to impact Tesla's
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share price.
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I saw this.
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And I, I mean, I didn't read all of your research, but I must say when I saw this, I kind
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of was stoked.
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Well, this is an exact example of like, vote with your wallet, like what companies do
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you want to support?
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Do they align with your values?
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Like, there is a leader of one of the largest and most successful EV companies that is out
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there, probably promoting a lot of and supporting a lot of policies and initiatives that a lot
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of people don't agree with.
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So the best thing that you can do, you might be, you know, on the other side of the world
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and not actually have a lot of influence.
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Sometimes the best thing you can do is divest your money.
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Yeah.
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Divest your money, support other companies that do align with your values, all of that.
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So I think this is also interesting, like the conversations that we've had in the club
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about this and what different people's perspectives are, because I think, yeah, I don't
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know.
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I used to be a real Tesla fan, you know?
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I used to be like, oh, it is a fun and I kind of didn't really understand, I don't
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think.
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I didn't, I don't know.
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This was probably a year ago, maybe a year and a half, it was even longer.
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And Elon, even though the people who had researched and knew enough about him knew that he was
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bad news, it wasn't such a popular viewpoint, like it wasn't so like obvious I guess, whereas
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now you can't ignore it.
12:13
Yeah.
12:14
Last year though, it was really, really good for Tesla.
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It's sheer price.
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I don't know.
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It's doubled in three months.
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Why was that?
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Because of all Trump's policies, we're going to be super supportive, bought Tesla, but the
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company.
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But now, you know, sales haven't actually been that good.
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And yeah, people are just revolting.
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There's like big fan forums that are just like nut and people are putting on their bumpers.
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They're Tesla bumpers, which they're Tesla bumpers.
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I bought this before.
12:40
We knew Elon was crazy.
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Oh my God, that's quite good.
12:45
But she is a down 25% since mid to December, which what are you laughing at?
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Makes me want to buy them.
12:53
I must say when you said that, that's exactly what I thought.
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It's so hard.
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It's like, because like on one side, I'm like, I need to be a good person and I cannot
13:01
do that.
13:02
And then on the other side, I'm like, this is a good buying opportunity.
13:05
It's so hard, isn't it?
13:07
And then you just get rid of Elon and like run the company without him.
13:11
Yeah.
13:12
I mean, he's really got very little time now.
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You know.
13:17
He's a full-time campaigner.
13:18
Yeah, he's campaigner.
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He's got his platform X, he's got SpaceX, he's got Tesla, like, let's be honest.
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He's probably doing so many other things too.
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How on earth would you run a company with that much going on in your life?
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Oh my gosh.
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I can't even like, we can't even run the company.
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I think we got the toilet.
13:34
I think.
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It's like, if I'm actually going to start four other businesses, you don't mind.
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I promise I won't.
13:40
There are people who do do multiple businesses like Grace Beverly, UK, serial entrepreneur,
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has like five.
13:47
It's doable.
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It's just, you just get support underneath you and everything and then you just swan
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in for the big decision-making opportunities.
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Kind of dream.
13:55
But Europe in particular is kind of where sales are plummeting the most and people just
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aren't buying.
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And people are switching to BMW.
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Why?
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Because they're electric vehicles.
14:08
Oh.
14:09
They're electric vehicles.
14:10
They're electric vehicles.
14:11
Yeah.
14:12
Because, you know, is it BMD?
14:13
Is that the other one?
14:14
BYD.
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BYD.
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In China.
14:17
A friend was telling me about a company and like, I don't know, it kind of made me think
14:22
actually, if I wanted to have a decent amount invested in EVs, probably having some invested
14:29
in BYD would make sense.
14:30
Oh yeah.
14:31
They've done really well.
14:32
Yeah.
14:33
But again, the whole Trump tariffs, those cars will become a lot more expensive being
14:38
imported into the US.
14:40
But you are seeing, it's funny, like I remember this brand years ago and it was like, well,
14:48
what is this BYD out of China?
14:50
I know.
14:51
Because it sounds shit.
14:52
I don't like it now.
14:53
I've started seeing them.
14:54
Like, I'll be behind a car at the lights and I'm like, oh, it's BYD and then, oh, it's
14:58
BYD.
14:59
What do they look like?
15:00
Kind of futuristic.
15:01
I think all electric vehicles look a bit futuristic.
15:03
But it's kind of like the Lululemon thing.
15:05
You start seeing in yoga classes, oh, that person's wearing Lululemon.
15:09
In the very early days, oh, that person's wearing Lululemon and then you know, before you
15:14
know it, the shoe price has gone bananas.
15:16
So this is a really good example of like spotting trends and seeing things unfold around
15:21
you.
15:22
But do you think that this BYD situation, oh god, they're quite ugly aren't they?
15:26
They're so masculine.
15:27
Yeah.
15:28
But why?
15:29
I think he's as well.
15:30
Totally.
15:31
There's such a boyker.
15:32
And if you're starting to see them everywhere, does that mean though that we're past, you
15:38
know, in comparison to the Lululemon example, you don't really want to be investing in Lululemon
15:42
where you can see every single bottle in your yoga class wearing them, you know, so it's
15:46
more about like having your eyes open for those opportunities of when you first start
15:51
seeing Lululemon and not.
15:53
But that's hard because that's really taking a much bigger bit.
15:56
Totally.
15:57
I'm such a sheep, you know, like it's hard not to be.
16:01
But yeah, BYD has done really, really well.
16:03
I think BYD and Tesla, they're the kind of the winners or the front runners, yes, but
16:10
even though yeah, Tesla does remain kind of that dominant market player in the electric
16:16
vehicle market, I think it's brand images, definitely suffering to have to put something
16:20
on your bumper sticker like that.
16:22
Like cars are a status symbol, you know, I hate to say it, but for a lot of people, it
16:28
is, and if anything damages the brand, like we saw with Volkswagen when that whole
16:34
emissions scandal happened, people were like, I remember it happened.
16:37
They'd altered the testing effectively.
16:40
The whole thing was that, they were saying these cars were permitting lower emissions.
16:45
And so people were buying them because they were good for the planet and then they found
16:48
out that that was wrong and they had to recall all these cars, the CEO, his head rolled
16:53
like it was, yeah, that's terrible.
16:55
Yeah, he had rolled that sounds good.
16:57
It was a big thing, yeah, in their image, even to this day, I think as soon as a brand
17:03
is tarnished, it's so hard to make my back.
17:05
Like Nike to this day is still like a short dress, yeah, or Armakaine's pizza.
17:11
I just think frozen rat underneath it.
17:13
Do you remember that?
17:14
No.
17:15
I think it was KFC.
17:16
God.
17:17
But I still love KFC.
17:18
It was Armakaine's pizza.
17:19
There was like someone found a frozen mouse underneath the pizza and I just, every time
17:24
I'm going down the supermarket, I'm like, oh my god, yeah, it's a brand is, it's really
17:32
hard to, even this is a weird example, but at a dinner, I was at last night, we were talking
17:36
about the Justin Bell Doni and Blake Lively, it's scandal after it ends with us and you
17:42
know, all the stuff that's been going on legally and in the news, they're both going to
17:47
be marked with this forever, regardless of what the outcome is, it's so, yeah, it's
17:53
brutal.
17:54
Yeah.
17:55
Your personal brand, company brand, brand is so important and there's actually a really
18:00
good podcast that Diova CEO put out that one of our advisors sent us to listen to, basically
18:05
it was talking about the idea that because we're in the digital age now, there's so many
18:10
businesses that need to have a front runner or a face to the business, it's no longer
18:17
looking companies be like they were in the industrial age where they're quite, it was just
18:22
a brand.
18:23
There's no personality behind it, yeah, it is the money making experts quite a bit vital
18:29
for a podcast, so you should do a podcast called that, yeah, money making expert, got
18:34
very long titles, didn't they?
18:35
I loved it, I was there.
18:36
Yeah, so good.
18:37
But it's just so dramatic.
18:38
It's like, dun, dun, dun, dun, dun, you know, the music, you're like, oh god, oh, maybe
18:43
we need to update our jingle, our jingle, lovely, you're starting to use podcast linger.
18:47
So we went into a lot more detail of intertusler in the club, so, you know, we talked about
18:53
its competitors, its financials, all of that.
18:56
So if you're thinking, if you're sitting there going, oh, this is looking quite interesting
19:01
now that it's had a 25% or a share price, go give that a watch and yeah, it's really good
19:08
inside, because I think it's even though you're like, oh, it's fallen, that to me sounds
19:12
like it could be a good buying opportunity, if you do want to know more about the company
19:15
and yeah, we've got a full on analysis from Victoria Harris in the club.
19:19
Yes.
19:20
We have had some really good news for homeowners, oh, really?
19:25
You said to be soon?
19:26
Oh, hopefully, yes, hopefully.
19:28
But that's the thing I'm like, do we want it to be great trust yet, or do we want
19:31
to be great trust to both be happy at the same time?
19:33
Yeah.
19:34
And then both be sad.
19:35
Yeah, you know, rather than like, I'm like, toy thing, but I must say, because I don't
19:41
own a house yet.
19:42
Yeah.
19:43
When you say good news for home buyers, all it makes me think is, oh, cool, I've missed
19:46
the boat.
19:47
No, I'm not going to be able to afford a car.
19:48
No, nothing.
19:49
That's what it makes me think.
19:50
Nothing moves rapidly in property market, you know, like nothing moves overnight, like
19:54
it does with a stock.
19:55
Probably prices aren't going up 20% in the day kind of thing, like a stock price does,
20:00
because they're not priced every day.
20:01
But in New Zealand, we have had an interest rate cut, so it interest rates are now 3.75
20:06
percent, which they haven't been at that level since 2022.
20:10
So we, like, this is really, really good news.
20:13
Interest rates are the interest that you pay on top of your mortgage, right?
20:18
So it's not the money that you owe the bank as a principal amount, it's the interest
20:23
that they charge you for borrowing that money, right?
20:26
And when I'm talking about interest rates here, I'm talking about, there's like the official
20:29
cash rate, which is what it's called, which is the OCR, and that's what the government
20:34
sets.
20:35
The Reserve Bank in New Zealand sets, and all the banks follow, essentially.
20:39
And then that's what blows down to your mortgage, interest rate being lower, your term deposit
20:44
rate being higher, all of that kind of stuff.
20:47
But with this, when interest rates are coming down, that's not good news for savers.
20:52
So if you've got money in the bank, not good, like make sure you're checking what you're
20:56
still getting on your high returning savings account.
20:58
So does that then mean, if for me, with my emergency fund, I could look at putting half
21:04
of that in a term deposit.
21:05
Oh no, because term deposit is the same thing, right?
21:07
So they're both not great.
21:08
Yeah, in term deposit, you're locked in there.
21:10
So what then?
21:11
So you don't want, because if you have an emergency, and you keep like that, it's kind of
21:16
just part and parcel of life.
21:18
Well does that mean that you might want to adjust the amount you do have in an emergency
21:22
fund, because you're getting quite a shit return by just keeping it in an interest
21:27
exchange?
21:28
Yeah, I mean, 3.75, and high interest savings account.
21:33
I've just had a mind blow moment.
21:35
Does that mean it's the interest that you earn on your money, when it's in the bank,
21:39
as well as the interest, you have to pay the bank for loaning the money?
21:43
So is the same percentage, what I would earn for a high interest savings account is what
21:48
I get charged for a mortgage fee?
21:50
No, not saying.
21:51
Oh, okay.
21:52
But they move in the same way.
21:53
They're sorry, they're moving opposite ways.
21:55
So it's not like, cool, 3.75, I'm going to pay that on my mortgage and I'm going to
21:59
get that on my deposit.
22:01
Yeah, that's right.
22:02
But your mortgage might be like 5% and your term deposit might be like, all per cent or
22:08
something.
22:09
Yeah.
22:10
But when the official cash rate is going down, your interest that you earn in the bank
22:13
goes down to.
22:14
Yeah.
22:15
Yeah.
22:16
Okay.
22:17
And so does your mortgage rate.
22:18
So all interest rates across the board go down.
22:20
Right.
22:21
So you don't have to pay as much, but you're also not earning as much on your money in the
22:25
bank.
22:26
So good for if you're in debt and you want to borrow money, bad if you've saved money
22:31
money.
22:32
So this is why interest rates coming down are actually good for the economy because people
22:37
don't want their money in the bank because they know they're going to spend it, although
22:40
I'll be in the stock market because they want a bit more of a return.
22:43
So a lot of money goes out of banks into the stock market.
22:46
Also, if you're sitting there going, oh God, I really wanted to start a business and take
22:52
out a loan from the bank, but I can't really afford it when interest rates are high.
22:56
Now interest rates have come down.
22:57
Oh, I might actually start that side hustle.
22:59
So I might actually get a loan from the bank, start this business, or I might actually get
23:03
a loan and do renovations on my house and go and spend money on paint and construction
23:09
and all of that.
23:10
You know, so there's, it's easier.
23:12
You're opening the doors up for a lot of people to borrow money.
23:14
So it's like summer, you know, people are waking up, they're putting their bikinis on,
23:18
they're getting out there in the sunshine.
23:20
Yeah.
23:21
You're like, oh, I'm not going to stop high-batting now.
23:24
Open the cushion.
23:25
We can actually afford to do stuff now.
23:27
Yeah.
23:28
Also, I want to move on there as well as mortgage rates coming down.
23:31
So if you're on a floating mortgage rate, your interest rate will automatically come down.
23:36
If you're fixed, it might take six or 12 months for you to actually feel that change.
23:40
But also with that, you might have an extra couple of hundred a month now that you can
23:46
go and spend, or invest, or save.
23:49
There's so many facets to it in different scenarios for people.
23:53
But the overarching objective is to stimulate the economy.
23:57
People spending money.
23:58
Yeah.
23:59
The flip side of that is, why do we want to stimulate the economy?
24:02
Because the economy is quite shit right now.
24:04
Right.
24:05
Yeah.
24:06
Oh, God.
24:07
Wait a minute down.
24:08
Sorry.
24:09
Like all of a sudden I was like, fun also.
24:10
Yeah.
24:11
Let's get on a jet ski.
24:12
Yeah.
24:13
And then you're like, no, but if you're on a jet ski, then the economy will start to do better.
24:14
Right.
24:15
Okay.
24:16
So this is why they pull this lever to kind of eject people out and about and to cool.
24:20
Yeah.
24:21
Okay.
24:22
I guess anyone listening to this podcast get out and spend, well, it's going to say it's
24:25
a great time to start investing if you're thinking about it or you've thought about investing
24:29
in the stock market, particularly, but you've been like, oh, well, I'm getting quite good
24:33
returns on my high interest savings account.
24:36
This is like starting to head into the territory where it's actually kind of stupid to have
24:40
your money in the bank because you end up losing a lot to inflation, right?
24:43
I just think make sure you know what you're getting because it will be changing.
24:46
Yeah.
24:47
So if you were like, oh, no, I think it's great.
24:49
I'm getting 6% and then you looked and you're actually, well, actually, that's a really
24:54
good point.
24:55
And this is something that Danny spoke about in the most recent budgeting episode that
24:58
we just put out.
24:59
I think it was budgeting 102.
25:00
We spoke about the fact that some people stay in the same high interest account or with
25:04
the same bank for their whole life.
25:07
So while some people might be getting 5% return on their high interest savings account,
25:10
some people are just getting two and they don't realize it.
25:13
Yeah.
25:14
So listen to that episode if you want to learn more about that.
25:16
And in Australia, they've also dropped interest rates.
25:20
But this is the first time since 2020.
25:22
So this is quite a big deal for Australia.
25:25
The economy is doing a lot better than ours.
25:28
And why is that?
25:29
They've got their ability to pay higher wages.
25:32
We've got people going over to Australia.
25:34
Yeah.
25:35
Yeah.
25:36
So they're doing a lot better.
25:37
Which means they did this interest rate cut, but they were like, don't get excited.
25:41
There's no more coming kind of thing.
25:42
Right.
25:43
So two interest rate cuts in the Southern Hemisphere.
25:46
What's happening in the Northern Hemisphere, like is the UK, what's the official cash
25:50
rate there?
25:51
Yep.
25:52
They're dropping interest rates as well.
25:53
And so is the US.
25:54
They're all pretty similar.
25:55
They're all pretty similar.
25:56
Yeah.
25:57
I mean, the thing was that they ratchet it up everywhere, really.
26:01
What the hell is that word?
26:03
Ratchet it up.
26:04
No.
26:05
Ratchet it.
26:06
Oh my god.
26:07
Do we speak a different language?
26:09
Ratchet.
26:10
We were back in the day when we were like teenage and people would be like, that's Ratchet.
26:13
No, Ratchet it up.
26:15
So you're forcing something to rise or fall as a step in a steady and irreversible process.
26:20
Jesus.
26:21
The Bank of Japan ratched it up interest rates.
26:23
Ratchet it.
26:24
That is the example in Google.
26:25
We did look at that.
26:26
It's so funny.
26:27
So yes.
26:28
You just do what it is though.
26:30
It's sometimes that you talk normally, like you're speaking in a conversation and then
26:34
all of a sudden you throw out there some random word that you would never normally say
26:38
or it's like the finance galon you just like jumps on out.
26:42
It's like you don't want to feed a dying fish that I said it and I've actually used that
26:46
quite a lot recently and it works.
26:48
Oh my god.
26:49
That's right.
26:50
Yeah.
26:51
Do you want to feed a dying fish?
26:52
She was asking about like when to sell a stock and I was like, well, you know, sometimes
26:55
there's no point in feeding a dying fish.
26:57
Feeding a dead fish.
26:58
We were all, everyone was just like, well, and then I was saying, I was like, it kind
27:03
of works.
27:04
But yes, countries around the world all increased or ratched it up their interest rates because
27:10
of inflation.
27:11
So there was this steep increase in interest rates.
27:13
That's why our mortgage rates went up.
27:15
And then now inflation's under control.
27:18
We can kind of pull them back a bit because it is, you really, one of the best levers
27:23
that an economy has to stimulate growth.
27:26
So you don't want to have interest rates too low that you can't pull that lever.
27:29
There's no room to pull it.
27:31
So you do kind of want to have them at a level that you've still got that buffer if that
27:36
makes sense.
27:37
Yeah.
27:38
You don't have to be going past like two or one, right?
27:40
It strikes at zero and our economy was doing badly.
27:43
It's like, shit, there's not much else we can really work with here.
27:46
So yeah, deciding to find it.
27:49
It's kind of fine.
27:50
There's a little line that we teach across isn't it in terms of being an economist would
27:53
be quite like.
27:54
What do we do if we just, it's a giant puzzle.
27:57
Cool interest rates here.
27:58
It's like, whoa, whoa, whoa, whoa, whoa.
27:59
And like everything kind of goes out of whack.
28:00
And then you're like, okay, we'll increase it back up or what if we drop taxes here?
28:04
Oh, wow.
28:05
You know, it could be quite, it's like a whole lot of, like a game is in here.
28:09
It seems that there is a new kind of TikTok tug of war going on in company that's not
28:15
a TikTok, but like another company that's been used in this like, tussle between China
28:20
and the US.
28:21
Yeah.
28:22
Oh, god, I just live for the shit.
28:23
Why do I find it so interesting?
28:25
And it becomes a tea.
28:26
I can't.
28:27
And it rhymes with Bimo.
28:30
Timo.
28:31
Yeah.
28:32
Oh, really?
28:33
Yeah.
28:34
Oh, and it makes sense because it's a Chinese company, right?
28:37
Yeah.
28:38
So it's kind of been sucked into this whole trade war discussion.
28:40
So when Trump was in power the first time, he put in tariffs.
28:45
They weren't as big as they are supposed to be soon that he's going to put in.
28:49
And they had this exemption that if goods were under the price of $800, that they were
28:55
exempt.
28:56
So it's kind of a lot of work.
28:57
There's Timo, everything's like a dollar.
28:58
Yeah.
28:59
Exactly.
29:00
So that's why Timo has just done so well because it's been exempt from this policy.
29:04
It honestly terrifies me to think how they make this stuff so cheap though.
29:08
I know.
29:09
Let's not think about that.
29:11
It's so bad.
29:12
I love it.
29:13
You can't not think about it.
29:15
Have you seen the Timo memes?
29:16
No.
29:17
And it's like, when you buy a dress on Timo and it comes and it's like, this is Chinese.
29:21
It's like absolutely tiny.
29:23
Or it's like, I wish Timo made houses.
29:24
No, no.
29:25
No, that was Shen.
29:26
Shen.
29:27
Yeah, actually someone asked about their missing club and I think we should definitely
29:29
Shen and Shen.
29:30
Okay.
29:31
Anyway, yes, Timo.
29:32
So it managed to get through this loophole effectively of the tariffs.
29:36
But now Trump is saying that that loophole could also be closed.
29:42
So stunning.
29:43
That Timo has honestly gone absolutely bananas.
29:46
And being...
29:47
You invested in this quite early, didn't you?
29:48
Yeah.
29:49
Like, before the birth.
29:50
It didn't do very well.
29:51
Didn't know.
29:52
Oh, interesting.
29:53
Yeah.
29:54
How much did you invest in it?
29:55
I don't like a couple of hundred dollars.
29:56
I don't like that much.
29:57
Yeah.
29:58
Yeah.
29:59
So the company that owns Timo is called PDD and that company owns lots of other companies,
30:02
but Timo is one of them.
30:03
And so you invest in PDD and then you get access to Timo.
30:06
But the reason that Timo's done so well is because this loophole and it's been a really,
30:11
really strong competitor to Amazon and being able to remain competitive.
30:15
Whereas now with, let's say, all the price of Timo products going up by 25% if that's
30:22
the tariff, that's going to A, really hurt their profits or just make them way less competitive
30:28
for Amazon that doesn't have those.
30:29
But why is Amazon not going to be...
30:31
Because it's in...
30:32
Oh, there it is.
30:33
Oh, yeah.
30:34
Yeah.
30:35
And are we interesting to see how this plays out?
30:36
But I was just looking at the stats of Timo.
30:38
So it launched in 2022.
30:40
So it's...
30:41
So it's all...
30:42
Yeah.
30:43
My time.
30:44
So it's kind of like two full years of like 2023, 2024.
30:46
I don't know.
30:47
It makes sense.
30:48
I've done nothing in that amount of time.
30:49
I've gone like a...
30:50
Funny, but...
30:51
Well, the Timo were financed.
30:52
It's okay.
30:53
Wow.
30:54
Well, we need to make it cheaper.
30:56
Yes.
30:57
And...
30:58
I'm trying to expand to...
30:59
And...
31:00
I'm trying to expand to...
31:02
79 countries.
31:03
Oh!
31:04
Oh, my God.
31:05
And we need to be moving about $1.5 million of goods a day, sorry, that was back in 2022.
31:12
In 2023, that grew to nearly 40 million sales a day.
31:17
And...
31:18
Their digital marketing is pretty good.
31:20
Oh, yeah, yeah, yeah.
31:21
And now their total sales are going to be about $50 billion in 2024.
31:27
So that's triple what they did in 2023.
31:30
So they're growing...
31:32
Why did you...
31:33
Why did they not do well then when you invested in them?
31:36
Because it's not a direct investment in just Timo.
31:39
You've got all the other...
31:40
Oh, yeah.
31:41
Yeah.
31:42
And it did do well.
31:43
It's just that when I invested in it, it wasn't.
31:44
It's hard when you're...
31:45
Well, also when you're not investing in the company, because there's so many other reasons
31:49
why that share price would move in different ways.
31:51
Exactly.
31:52
It's not like...
31:53
It's so indirect.
31:54
It's like you're investing in a whole bunch of other things as well.
31:56
This news hasn't hit the stock price yet though, because PDD's share prices
32:00
is up nearly 30% this year already.
32:03
And where on the end of February?
32:04
You can't see what Timo's share price is, because it doesn't have its own, right?
32:08
It's kind of annoying.
32:09
I wish we could see that it was doing it.
32:10
Yeah, it's like the whole likes of LVMH, you know, like you invest in the holding company
32:15
and then you get access to all of those.
32:16
Which is why companies who spin off, because they might be like,
32:18
oh, you know, Timo's value is not being truly reflected in the overall share price.
32:24
But maybe he's talking about this.
32:25
Let's split it out and we can actually see a lot more value created.
32:29
But funny you mentioned Sheehan, because they're actually another casualty of this potential
32:34
loophole being closed.
32:35
Really?
32:36
Yeah.
32:37
So you're continuing on the theme of selling crap.
32:42
Quite good.
32:47
And the thing with Sheehan is it's about to IPO.
32:50
So it's now...
32:51
Oh, yeah.
32:52
You could be gutters.
32:53
Yeah.
32:54
Backtrack, you would be calling Trump's direct line, being like, come on, can you please just
32:58
wait.
32:59
Oh, I was out.
33:00
Can you just wait until we've IPO's, because no exchange wants us.
33:04
And we are a terrible company to begin with and our valuation has been slashed already.
33:10
Like we can't put our business on a stock exchange.
33:13
The price of our business is going down by the year.
33:15
Oh, God.
33:16
It's honestly, it's quite funny.
33:17
I don't think I've ever seen a company where there isn't an exchange that's jumping
33:21
over themselves to get them on their stock exchange.
33:25
You know, usually exchanges are like, yes, yes, yes, come list with us, because then it
33:31
attracts new investors, it creates new and interesting things, but no one wants Sheehan on
33:35
there.
33:36
No one wants Sheehan.
33:37
Got it.
33:38
That's so true.
33:39
But because of all the supply chain issues and like practices and stuff, which is fair
33:43
enough.
33:44
So fair enough.
33:45
And the bad image that it would give, you know, the London Stock Exchange for example,
33:48
but you know, everyone has a price and I think it'll get there.
33:51
Oh, shut.
33:52
Its valuation has been, yeah, it was in 2022, it was $100 billion.
33:58
It did a deal last year, a private deal where it was $45 billion and now it's looking
34:03
at IPO at $30 billion.
34:05
Got it.
34:06
Yeah.
34:07
You wouldn't be happy if you took a stake at $100 billion company and it's now worth $30
34:10
billion.
34:11
And lastly, there was a report that came out that shows the world's top 100 highest paid
34:16
athletes in 2024 and guess how many women there were zero out of the top 100 highest
34:22
paid athletes last year.
34:24
Do you know what?
34:25
I actually called your boyfriend about this because I wanted to get a video of you looking
34:30
super playing sports and put some of the stats over so many of us.
34:33
Yeah.
34:34
Yeah.
34:35
But it was so interesting to talk to about it.
34:36
And then last night, you won't believe he was at the dinner I was at.
34:40
Lydia Coe.
34:41
No, but cause Dame Lisa Carrington.
34:45
And I was talking to her about this.
34:47
She had Dame.
34:48
She had Dame.
34:49
And I asked the stupidest questions.
34:51
I was really faced panning when I left, I was like, so if they come on, like some of
34:55
the things I said, I was like, do they get frustrated with it?
34:57
Are they maths?
34:58
Like, with people being like, no, no, with the lack of earning capacity or the lack of
35:04
recognition from a financial point of view.
35:06
So it was really interesting.
35:07
She was saying that she's one of the oldest athletes that would be in that kind of
35:11
sphere, particularly as a woman.
35:13
And it's often because the payment doesn't kick in unless you're the best of the best as
35:18
a woman.
35:19
So like you could be incredible, like fourth in the world, but you really have to almost
35:24
be number one to be able to make a living out of it or to have like any kind of financial
35:28
gain.
35:29
And so a lot of women get to the point where they're like, okay, well, like this isn't
35:31
financially viable for me.
35:33
So I need to leave the sport.
35:35
And also that is a cycle because if you're not earning enough financially, you have to
35:39
do it part time.
35:40
So therefore you're not going to be as good or you can't put your whole life into it
35:46
because you need it.
35:47
You need another job to supplement the lower earning.
35:48
So therefore you just get caught in the cycle and you're never going to be number one.
35:52
And then the simplest example, if majority of female athletes, because they don't get paid
35:58
enough, have to have secondary income, that means that they of course they can't spend
36:02
hours, extra hours a day crafting their sport.
36:06
The other thing that I think is really interesting, that a lot of people might not even
36:09
think about.
36:10
And we were talking about this last night, I said to her, you know, like does it come down
36:14
to viewership?
36:15
Like isn't because there's so many more men that watch sport and it kind of just made
36:19
me realize, like if we knew that by watching and supporting female athletes, it could help
36:25
them earn more, we would all be doing that.
36:28
It's just that we don't know that that's how we could help.
36:31
And I thought that was quite interesting.
36:33
Like sports has been branded as such a masculine thing, similar to money, right?
36:37
Like a lot of people just think like maybe they're not that into sport, but it's not
36:41
the case at all.
36:42
Sports are incredible.
36:43
And if you understand it and you know it and it's sold in a way to you that makes sense.
36:47
It's interesting you say that sports is like money because I was sitting at the last
36:51
night with two men and all they were talking about all night was sports and it was people
36:56
in sports.
36:57
It was like certain terminology and I had no idea what they were talking about.
37:01
And I was like, oh, this is what it must be like when you don't understand and then there's
37:06
two people talking about finance or any industry, but it was just, yeah, I kept being like,
37:11
sorry, what's that?
37:12
And who's?
37:13
And I was like, oh my god, I just got annoyed at myself, like interjecting all the time.
37:18
And then also just, like it was just exhausting that I was kind of tapped out of the conversation.
37:21
So I can see how it happens with conversations that you're not used to having or you're not
37:27
knowledgeable about.
37:28
Yeah, it was really interesting.
37:30
And I think that that stat, just the idea that there's a hundred of the most well paid
37:36
athletes, I mean, there's not one single woman in there.
37:39
Like that makes me infuriated, infuriated.
37:42
And I think that a lot of people would feel the same, but it's then like understanding
37:47
the economics of sport, understanding the way in which we can support female athletes
37:52
to be, yeah, to be on equal pegging.
37:54
And what does that look like?
37:55
What support do they need?
37:56
Like, and what can we do as spectators?
37:59
Yeah.
38:00
There's a lot that plays into it, right?
38:01
Like it viewership is one thing.
38:02
It's like advertising dollars so that it is put in front of people so that they are
38:07
aware of it so they can buy tickets.
38:09
It's creating all the hype around sporting events, female sporting events.
38:12
You know, there's so much that goes into it.
38:14
But then another friend of mine, who is a, she does like sports reporting.
38:18
Yeah.
38:19
And she was saying, you know, like the Australian female football league, for example,
38:24
Australia, there are some like really well supported teams.
38:29
And she was saying something about like some, I think it was like some merchandise sold
38:33
for like the highest amount that it had ever been like, whatever it was.
38:35
It's like, it's not a blanket rule that there's not viewership there, but it's still not
38:39
really impacting the financials.
38:41
It's also like representation, you know, young girls seeing, you know, no one in the top
38:50
100 highest paid athletes, no one's seeing that representation up there or, you know,
38:56
seeing, I guess, you know, there's a few people do I get me wrong?
39:00
There's a few incredible female athletes, but it's just like the more representation you
39:05
have, then the more younger women as well and younger girls strive for that as a career.
39:11
And it's like with anything, it's with politics, with business, it's with, yeah, it's just
39:16
getting more balanced.
39:17
And I mean, that's, that's a function of this less women in sport, but also women get paid
39:23
less.
39:24
And you just combine the two and you get no.
39:26
But if you can't get to a point where you can make a, have a thriving career or be
39:32
renumerated for your efforts, like I understand that, like there comes a time where you're
39:37
like, well, I can't support myself, I can't, you know, and that's kind of heartbroken
39:41
to think that there's people that are absolutely phenomenal in their chosen sporting career.
39:47
And yet they're not able to make a living or like it's so awkward.
39:52
And also in this is like biologically, women have to take career breaks to have children.
39:58
Or if they want to have kids.
39:59
That was the other thing, Lisa said, you know, a lot of people, if that's what they want.
40:02
Yeah, that they have to take a career break and then coming back to even harder.
40:05
Yeah.
40:06
So it's like, you know, imagine coming back, coming back into a corporate job and you've
40:10
taken, you know, a year off, whatever you still have to kind of fight, but there's lots
40:13
of changes that have gone on.
40:14
You still have to, you know, how to use your brain again and all of that, let alone in
40:19
sport where you're like, your body is your whole body.
40:22
The body has changed and yeah, I mean, I can't even imagine, yeah, anyway, but the highest
40:28
earning female athlete is Coca-cuff.
40:30
A Coca-cuff?
40:31
Where is she from?
40:32
Just tennis player.
40:33
Yeah.
40:34
So she is.
40:35
Oh, the other thing that I actually thought was interesting that I asked Lisa right
40:41
because she was like, you know, female tennis players now are paid equal, but then why
40:44
then are female tennis players in there?
40:46
And it's because of things like endorsements and stuff, yeah, it's all that.
40:49
I remember I read a stat that like tennis players get 10% of their earnings from actually
40:54
paying tennis.
40:55
Yeah.
40:56
The rest is from like Rolex and all of those.
41:00
So comes back to personal brands, look after your personal brands and boys and girls.
41:07
Yeah.
41:08
That's all folks.
41:09
That's all I got for you.
41:13
So we went into a lot more detail of the tennis player in the club.
41:18
So, you know, we talked about it's competitors, it's financials, all of that.
41:24
So if you're thinking, if you're suddenly going, oh, this is looking quite interesting
41:29
now that it's had a 25% or it's your price, go give that a watch and yeah, it's really
41:35
good.
41:36
Good insight because I think it's even though you're like, oh, it's fallen.
41:39
That to me sounds like it could be a good buying opportunity.
41:41
Yeah.
41:42
If you do want to know more about the company and yeah, we've got a full on analysis
41:45
from Victoria Harris in the club, yeah.
41:49
Thank you so much for listening to the Curve Weekly.
41:51
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41:54
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41:56
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41:59
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42:00
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42:01
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42:12
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42:13
Bye.
42:14
Bye.
42:15
That's it?
42:16
Yeah.
42:17
See you next Tuesday.
42:18
Wow.
42:19
See you next Tuesday.
42:20
I mean Monday.
42:21
No, actually though, new episodes out every Tuesday.
42:26
Okay, quickly, the Curve was created to empower and educate you about investing, but we are
42:32
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42:34
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42:38
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42:47
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42:48
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42:52
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42:53
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42:54
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