Latest / The Curve / TCW74: Glastonbury Insights, Nike's Struggles and investing in athletes.

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TCW74: Glastonbury Insights, Nike's Struggles and investing in athletes. · The Curve

• 0:00
  Hi and welcome to the Curve Weekly, the podcast that keeps you up to date with all the money,
• 0:06
  business and stock market tea. Everyone should experience for us at least once in their lives
• 0:10
  and Annie shouldn't miss out just because she can't afford it. Help me. I was wondering if you'd
• 0:16
  lost your voice. I mean, if Taylor Swift inglessed for him one week is a lot. It is a lot. Yeah, a lot
• 0:23
  a lot of singing, a lot of yelling, but oh my goodness. Yeah, it's been. Is it because I said
• 0:29
  you last week, get a life? You were like, what's going on in your life? You're like, nothing.
• 0:34
  Maybe I need to do something in all of a sudden. She's like, bookishness to glittery on her way
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  to Taylor Swift. Maybe it was. Maybe I was just a little bit of like subconscious God. I actually
• 0:44
  need to have a life. No, but definitely have lost my voice a little bit, but totally worth it.
• 0:52
  What was it like? Because this was the first time you've ever been to Glacierbury.
• 0:55
  Yeah, and I haven't even talked to you since then, so I want an update. Yeah, I got back yesterday.
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  My body is very tired, walked 40,000 steps in one day. Like, oh my God. But it doesn't feel like
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  you're walking around a lot, but you're also dancing and all that. But it was insane. Like,
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  I can't really describe it. It's not even a festival. It's like the biggest food market,
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  the biggest circus shows, the biggest playgrounds. There's like message parlors, there's chiropractors,
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  there's over 800 vendors selling things and food. Honestly, it's just the scale of it is insane.
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  So it didn't feel like you were at rhythm and violence? No, absolutely not. It's like, if you
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  can picture rhythm and violence on steroids, but also everyone stays, like, the accommodation is
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  all on site. Do you know what I mean? So there's like a sea of tents, a sea of cars, a sea of
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  camper vans. Do you think I find it overwhelming? No, I thought that too. And the thing is that at each
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  stage, everyone's got so much space. Do you know what I mean? Like, you've got space to dance,
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  you've got space to escape if you need to go to the toilet, go get a drink. There's flags
• 2:05
  everywhere. So you're like, cool, meet you back by this flag. Was everyone drunk and high?
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  Like, what was the level of kids? There's like deep chairs. They're sitting down on
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  deep chairs to watch cold play. Like, it's, you've got picnic rugs. You've got, yeah, I can't
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  describe. I guess up the front people would be like, quite drunk and high and just partying and
• 2:25
  probably being there all night. But I mean, I left it midnight, both nights and then the third
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  night at like 1 a.m. So maybe it got a bit bad, you know, later on does go to about six
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  a.m. I think each day does it? So it goes, it is like an all day all night festival.
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  And you like live on site. Well, most people do camp. We didn't camp on site because I was very
• 2:46
  last minute in getting my, getting my shit sorted. But most people, so you like enter
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  grocery festival, you stay there for, you know, four or five days, whereas we were coming in and
• 2:56
  out each day because we were staying off site. But it's actually the most densely populated place
• 3:02
  on earth over those three and four days. No, I know. I reckon I would be meltdown. But
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  it's so much space that you can go up onto the hill and watch, you know, watch the sun, the sun,
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  the sea. You can, you know, there's so much space for you to walk on. So it's not like being in
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  a festival, it's like being in a, like a man-made city. It's like a little village. Yeah. And then
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  it's like, honestly, you would love it. There was places I said, oh, so I would love this. Like
• 3:28
  cute. Yeah. Yeah. And so, okay, because you wait, actually, first off, I need to know how
• 3:36
  I was doing labor. Oh, I have the biggest girl crush. She's so sexy. Honestly, I felt like I was
• 3:43
  trying to dance like her and the crowd. I was like, oh, Vic, don't, don't, you're not, you're
• 3:47
  not nearly as hot as she is. But yeah, she was insane. And I loved she was like, this has always
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  been a journey of mine to play at Glastonbury. And I think a lot of the artists, it's like, they don't
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  get paid much. They only get paid like 200,000 pounds. So it's not that they do it for the money.
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  They do it for, I think they're like status or, you know, it's always been kind of a pinnacle of
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  their career, that kind of thing. And the sugar babes. Oh, gosh, it was a blast for the past.
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  I saw every little vein. It was hilarious. Yeah, I was gutted to miss Shania Twain, but that's all right.
• 4:19
  Oh, my God. Why did you miss it? Where were you? She was on Sunday and we'd come home. So, yeah.
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  So you mean, did you just do three, three days? Yeah, Thursday, Friday, Saturday. I don't think I
• 4:31
  could do more than that. Yeah. That's perfect. Yeah. But did you know that so ticket prices are
• 4:36
  355 pounds this year. And the festival started in 1970. And they were one pound in 1970.
• 4:49
  No, yeah. So who was playing though, the person that like organized its dad on the drums? Like
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  what? Who would be paying one pound? Yeah, and you wouldn't have to pay for security, toilets,
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  you know, anything like that, because they wouldn't have been 300,000 people going.
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  That's crazy though that that like quickly it's grown to be one of those because that wasn't that
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  long ago. No. So if they had been adjusted for inflation, would be paying 13 pounds 30.
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  And did you pay nearly a thousand New Zealand dollars? I know. Worth it. With every penny.
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  Would you think it was because you last minute though, like obviously you didn't buy your ticket
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  all like the week before or your accommodation. Did it make it all way more expensive? No, the prices
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  the ticket price was still the same. The accommodation price was still the same. Yes, I probably
• 5:38
  could have hunted around and got a bit of deal if I had a bit more time. You know, like actually
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  done some research, but I was kind of stressing out that I wouldn't even have any way to stay.
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  But no, the price is the price for a ticket. Do you know what I mean? It's not like it gets more
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  expensive closer to the time like other festival tickets. That's good though. Yeah. How that happens
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  with all tickets. And our taxi driver, bless his heart, he lives in Glastonbury the town and he was
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  like, yeah, we all get free tickets as part of it. Like, you know, if we're putting up with having
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  the festival on in our town, they all give us free tickets. I was like, oh, he's like, but I've
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  never been. I was like, oh, okay. What's wrong with him? I know. Hey, so what did you spend,
• 6:14
  what did you spend in terms of food now, alcohol during the day? Like what do you think the total
• 6:18
  three days cost? So you can take your alcohol in, which I didn't realise, which was amazing.
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  And so we just bought soda waters all day and took our own tequila and it made it for much cheaper
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  and the cues for soda water rather than at the bar was so much quicker. So did you just have
• 6:40
  like a hip flask or something? Yeah, not like a silver hip flask, but I had like a water bottle
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  that was filled with tequila. So that's great. And you could just why are you allowed to do that
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  and not another festival? I think because maybe to prevent the cues from being so big,
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  or yeah, yeah. Also, the prices, it is one of the most expensive festivals in Europe and
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  the prices of drinks and some food is the equivalent to London prices. So there has been a bit of a
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  like kind of, not uproar, but a bit of a disgruntled maybe a few people that are like, hey, hang on.
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  But if you can take your own alcohol and just buy soda waters, it kind of works out, you know,
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  the same. What sort of food is that? So oh my gosh, you would have been in heaven.
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  Everything you can think of. Just imagine the best farmers market, like food market, like
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  I think Broadway market on steroids, you know? No, yeah. 800 vendors for 400 different
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  stalls of food. Like it's holy. We were just, I felt like the first day I just walked around
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  with my mouth open, you know, just kind of in such shop. Yeah, it was crazy. But so they actually
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  the great thing is that they donate nearly $4 million per festival to charity. So I think
• 8:01
  wow. Four million. Yeah. What would the whole thing make each year? It generates about 90 million
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  pounds, pays out about 60 million to, you know, costs, expenses, people running the festival,
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  leftover, it's got about 30 million that it makes. So the 30 million a year revenue? Do profit.
• 8:22
  Profit. Yeah. And so then of that, you said that they give them some charity money?
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  About four million pounds to charity. Yeah. And that green piece is one of the biggest,
• 8:32
  you know, organizers or sponsors, whatever you call it. But like, because a green piece stage,
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  you know, I think it's, I think that's what makes it such like a happy place is that it's not a big
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  money making thing. Do you know what I mean? Yes, they make money because they have to make money
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  to pay for things. But I think it's also because they give back so much, they make $160 million
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  for businesses in the area and that that come to Glastonbury make so much money from this as well.
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  So it does benefit a lot of businesses, a lot of charities. That's what I think makes it okay
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  to be such a large festival that disrupts probably, you know, a small town in the UK if that makes it.
• 9:08
  Yeah. It's so weird because I just like, I think my experience of festivals has always been quite.
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  I don't know, I always just find it so like stimulation of the love. Yeah. I always want to have
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  a good time. And I do generally like, for the most part, but I find, yeah, I find them a lot,
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  like even before I'd gone to explore, which is this New Zealand festival, but you know,
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  that's not a kiwi. It's like, it sounds like a tiny mini version of Glastonbury, you know, in terms
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  of like everyone's really happy and friendly and it's right by the ocean. And it's just like,
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  there's kids everywhere, blah, blah, blah. But I still found it really full on. Yeah. I still was
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  like, this is a lot of stimulation, a lot of people, a lot of like, yeah, there's definitely like,
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  we've stumbled across like the kids area. And it was actually quite nice to like just be like,
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  and then there was like a massage and like chiropractor area. And I was like, oh, why don't we find
• 10:02
  this earlier? It was like, this has been amazing, like just chilling out. So there are quiet,
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  really peaceful places that you can escape to, which is nice. Yeah.
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  And did you lose everyone or did you manage to like stay with people? No.
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  When I stayed with people, I went off and met other people and then came back and, yeah, there's
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  all those flags everywhere, which is quite a Glastonbury thing. And so as long as you're like, I'll meet
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  you back by the smiley face, flag or whatever, then it's very easy to find people. Yeah, 300,000
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  people. That's the size of Christchurch. All right. We were saying it to someone. I was like,
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  yeah, everyone's like, oh, you from New Zealand, you're like, yeah, they leave come all this way to
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  Glastonbury. And I was kind of like, yeah, pretty much. I was like, no, I live in London. I was
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  like, but this is actually the size of a small town in New Zealand. And they're like, whoa.
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  So is it, okay, is it the kind of thing that we're like, it's a must every year? Yeah.
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  Like, is this a, I need to start planning for it now. Yeah, definitely start budgeting, start
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  planning. And can we actually do that? Because you helped me put together a bit of a Glastonbury
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  budget, like what it looks like, the total. You were getting a taxi to the train station
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  out on the way home and the taxi driver, bless his heart. He was like, oh, like last year,
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  I dropped a girl home from Glastonbury back to London. How far is that? It's like a three,
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  four hour drive. And she paid 500 pounds for the trip. And he said she puts away nearly $10
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  a week in the lead up to Glastonbury. So for a year, to afford a cab home at the end of the night,
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  she doesn't want to mission it with sorting out trains and buses and all that. When you said
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  that I just was immediately like, she must be an absolute baller. You know, I mean, there's no way
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  you would pay a thousand New Zealand dollars for a taxi. But the fact that she actually planned
• 11:45
  that in advance. Yeah. Genius. Why don't we just be a bit more organised and get a train or bus?
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  We'll wait you. But we'll just leave slightly earlier and like miss all the admin, like,
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  you're leading at the same time. Quite funny. But yes, let's put a plan together
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  for next year's Glastonbury because every five years, they have a year off to help the land
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  regrow and the farm actually be a farm. So next year is the last year before they have the year off.
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  Oh, sure. Okay. Well, we need to get ourselves sorted. Let's put together like a glass from
• 12:18
  rebudges. Yeah. Like year out. Do you know what's just going to be annoying those if we get to like a,
• 12:24
  you know, ticket sales and I've spent half the year budgeting and then can't get a ticket?
• 12:29
  Manifesting. That's what I did. Yeah. I got to ticket pretty much four days before. So
• 12:34
  yeah. Manifest. Manifest. Love it. Love it. Love it. Love it. Yeah.
• 12:38
  Yes. And so if it's in Switzerland. And I'm in Switzerland. I feel like you're like
• 12:43
  frolicing in the hills on the train here. I was like, I just want to go in Yodel. I just want to
• 12:49
  Yodel in the mountains. Like it was, I actually am with one of my like, fittest friends and she was
• 12:54
  like, let's just go for a bike ride. We're going to go for a bike ride up in mountain. And I was like,
• 12:58
  yeah, yeah, cool. And we went and hired bikes and she was like, you might want to get an e-bike.
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  And I was like, okay, she got an e-bike. We went up the steepest. I want to see walking up it.
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  I wouldn't have been able to walk up it. Thank God. I was on an e-bike. I was on like turbo plus
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  plus plus plus. And she was on like a normal bike. It was outrageous. So fun though. Love there.
• 13:20
  So much fun. It looks beautiful. It's a really very awesome place. The place we're staying is
• 13:26
  absolutely gorgeous. It's like a family friend of my friends. And there's like a massive
• 13:31
  sauna in the house. They've got like eight bedrooms, like the design and the interior is like
• 13:37
  absolutely beautiful. Like the most amazing house I've ever been in. It is, like it's actually
• 13:42
  given me goals in terms of saving. Like if I could either one day have a house like this.
• 13:48
  Oh my god. You're going to be saving for a lot babe. You've got glass. You've got a Swiss house.
• 13:52
  Yeah. I've been having their lint. It is lint from here because there's a lot of it in the drawer.
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  I've just been helping myself, which is probably not all good. But anyway, I've had the most
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  amazing time. And I think it's like quite similar to New Zealand actually. People say that.
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  Useful hills like incredible. It's also just maybe like how I'm fit I am. Like issues
• 14:19
  even like let's just stroll up the hill for a coffee. And it was like to Elbin Rawselet,
• 14:24
  which is this like a little cafe at the top of another hill. She said we'll just wander up.
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  And I had to keep stopping and pretending to take photos because I was so tired that I just
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  I love that. Like oh should we stop at the zoo? I was like oh I just want to see I just get one more
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  photo. I'm moving. I also felt so like dancing at Glacenbury. I was like my bag. I remember
• 14:48
  us at Taylor Swift and we were like crouching down. I was like my back, my knees. And then even
• 14:52
  walking up the stairs this morning. I was just like oh my god my legs. I definitely need a full
• 14:57
  body massage. Be quite nice. Well, okay. I think let's let's talk about the market. What's
• 15:03
  been happening in the world in business? I mean have you even looked at that? You've been
• 15:07
  climbing up a storm. I wouldn't be surprised if you were like go up nothing.
• 15:11
  No, I did a pre prep actually before Glacenbury. She's good.
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  But I thought it was a really good time to check in. So it is the beginning of July. So we've
• 15:24
  had one half of the year. So I thought it was a good time to like check in and be like okay what
• 15:28
  is the stock market's done? So the S&P 500 which is the top 500 companies in the US. That's up 15%
• 15:35
  this year. So this is great news. This is great news. Yeah. And just like to put that in
• 15:41
  perspective. New Zealand. The New Zealand stock market. So the NZ 50. It's up half a percent.
• 15:48
  Oh god. See why would you invest in the S&P 500? It's like, why would you not? I mean,
• 15:54
  sorry. Why would you invest in the New Zealand stock exchange? But it does worry me because it is
• 15:59
  like the empty restaurant analogy. You know, like if people aren't going to eat the empty
• 16:03
  restaurant, it's never going to get off the ground. And this is mainly due to like NVIDIA and Apple
• 16:09
  and all those companies that have done really well. And that's why the S&P 500 has done so well.
• 16:14
  But this is kind of coming back to the conversations we've had a few weeks ago around like IPO's
• 16:19
  and why stock exchanges are really keen to get good companies to list on their exchanges. Because
• 16:24
  like you say, it kind of does fuel that I guess herd mentality of like, okay, cool. The S&P 500
• 16:30
  is doing really well. I want to list on that stock exchange. Then you get all these companies
• 16:33
  listing on the stock exchange. And it does better and better. And so it's kind of this like cycle,
• 16:38
  this like network effect, whereas yeah, if I was a company wanting to list, and I had operations
• 16:44
  saying the US and New Zealand, I wouldn't be listening, listing on the New Zealand stock exchange.
• 16:51
  Sorry. Sorry. And sorry, anyone from the NZX is listening, but it's because we've got
• 16:56
  electricity companies. We've got airlines. We've got building companies. We've got quite boring
• 17:03
  companies on our stock exchange. They're not the NVIDIAs of the world. They're not AI companies,
• 17:08
  you know, they're not exciting. There's not a whole lot of innovation happening.
• 17:13
  The other thing with that is the S&P 500 up 15% in the first six months. Now, remember,
• 17:21
  historically, the S&P 500 has done about 10% return per year. So it might go down for the rest
• 17:29
  of the year. Well, maybe not the rest of the year, but there's something to be aware of is that
• 17:33
  when something is doing really well and like above its average, it's got an average for a reason,
• 17:40
  and that's because it's generated that return over the long term. So if it's trading above,
• 17:45
  at some point, it's gone down. Yeah. And I mean, I'm not saying average just gets better.
• 17:51
  You know, what if, yeah, and it will, if it keeps doing better and better and better year after
• 17:54
  year, then that average does, you know, that might be 11% per year over the long term. But when you've
• 18:01
  got about a 30 year average, you know, there was a lot of bigger things to do. There's a lot of data.
• 18:07
  Economic cycles, you know, pandemics, all of that. So yeah, it is something to be aware of.
• 18:13
  But I mean, 15% it's not, if it was up like 30, then it would probably be a bit more concerned,
• 18:19
  but yeah, just something to be aware of. But yeah, stock markets doing very well this year,
• 18:25
  15%, which what about other countries? Like is the US doing
• 18:29
  astronomically better than others? Or is that kind of like, well, the Australian stock exchange is
• 18:33
  up about 2%. So yeah, Southern hemisphere is not pulling its way. No, I know. Yeah. So,
• 18:40
  but the Australian stock exchange is made up of a lot of kind of oil and gas companies, a lot of
• 18:45
  banks. Again, it's not the exciting technology AI kind of companies. So that does make sense that
• 18:54
  it hasn't done very well. Does that mean I thought oil and gas everyone's like banging on about
• 19:00
  how well it's doing? I mean, it's not like in the video, what is up like over 100% this year? Do
• 19:06
  you know what I mean? Like, that's not in terms of a sector. The tech sector is doing
• 19:10
  fantastically well. And then we look at the UK and that's the, so the FTSE 100, which is up
• 19:15
  about 6%. Does the FTSE 200 is only 100? No. 100. So the UK stock exchange has
• 19:22
  least companies on it than Australia? No, this is the index, remember? So this is the sample size
• 19:28
  of the stock exchange. Yeah, but why is the sample size of the UK smaller than Australia?
• 19:34
  I don't know, good question. It's just they've just picked a sample and a maybe 100,
• 19:39
  100 is what they think is a good sample size.
• 19:42
  Hmm, random. Because I would have thought, when you see a lot only has 50, that's representative
• 19:47
  of their idea that we have less companies, whereas, you know, the SMV 500 is a sample of 500,
• 19:54
  and then Australia is 200, I would have just thought, yeah, the UK would be bigger maybe.
• 20:00
  I mean, there's lots of different indexes that you can call out. Do you know what I mean? Like,
• 20:04
  there is the ASX 100, but it's not the most common or the most popular index that people refer
• 20:10
  to. So when they are talking about the Australian stock exchange, it is the ASX 200, but you
• 20:17
  just take the top 100, if that makes sense. So, but yeah, up 6%, which is better than Australia and
• 20:24
  New Zealand. Shits of the US is absolutely kind. Flying, yeah. And it is all pretty much down to
• 20:31
  the video, which is concerning because you want an index or a sample or an average to be
• 20:38
  representative, you know, you don't want one company like dominating. If one company is doing
• 20:43
  really well, the rest of all going backwards, that's not very good. You want them all to be doing
• 20:47
  really well, but yeah. One thing I found actually, which I thought was quite interesting, there's
• 20:54
  like a new, say, new asset class that we could possibly invest in. Yeah. Oh my god. Hey, wait,
• 21:01
  don't tell me. Give me hints. Football? Sport. Yeah. No athletes. Oh my god, that's so cool. Yeah.
• 21:11
  So if you think of a company, like when you invest in a company, you're buying a share of that
• 21:15
  company and you're getting, it gets a portion of its profits, of its earnings as it grows and grows
• 21:21
  and the more it grows, the more you get. It's reflected in the share price, but the more, you know,
• 21:26
  you want to invest in a company that's growing, it's revenue growing, it's profit. It's exactly the
• 21:31
  same with a human. You know, if you're investing in an athlete and they're a great athlete and their
• 21:37
  income they manage to earn is more and more and more, then the model of this is that they pay out
• 21:43
  a certain percentage of their income and that's what you get. But why would the athlete need to take
• 21:49
  investment from anyone? Like, what are they going to use that money to do? Make more money.
• 21:54
  And they're fructively at IPOing their own. Oh, so they basically, so it's like their net worth kind
• 22:02
  of. Yeah. Yeah. Yeah. And their IPOing themselves as like a little company if you think about it
• 22:07
  like that. So. But don't companies normally IPO because they have big plans that they need capital
• 22:14
  for to grow. So what would the equivalent be for an athlete? Like what would they be needing
• 22:21
  that capital for? I guess you're investing in them and their future earnings and you want to get
• 22:27
  that return on your investment. So it's like if you're investing in Tom Brady, for example,
• 22:31
  in the early days, and then he gets better and better and better and better. And then that's
• 22:37
  a great return on your investment. Then that's that's what you've been investing in as the future
• 22:42
  earnings. Does that make sense? Right. So you just have to think about it almost differently too.
• 22:47
  It's like a different asset class. So you wouldn't look at them and like what they're going to use
• 22:53
  that capital for in terms of like we're going to start a clothing line or we're going to go into this.
• 22:57
  It's more like the future potential of what the value of that person's worth. So would it be
• 23:03
  would a better way to look at it be like commodities or. Yeah, that's probably brands or bags or
• 23:09
  things that aren't necessarily they don't need money to grow, but the essence of who they are
• 23:15
  will grow and value. Is it more that? Yeah, that's probably a better idea like investing in gold
• 23:20
  and the gold price goes up and up and up. It's kind of like this is almost like quite a
• 23:25
  cool way for people to earn money through sport but not through gambling. Yeah, and it's
• 23:30
  exactly exactly the only way that you've really been able to invest in sport is through gambling
• 23:34
  and like betting sites and all that. Oh, I feel like this might be quite disastrous for
• 23:38
  gambling companies. Well, yeah, I think it's, I mean, here you're
• 23:42
  investing in the person where it's gambling, you're investing in like the game. I guess you can't
• 23:46
  lose in the game. Yeah, but I think this. I bet it would be a good thing to say that like, oh my.
• 23:52
  I'm sorry, I know. I'm like, you go. One or one by the curve. You can invest in players. Of
• 24:02
  course, you can. It was like, we knew that five years ago. But it's a, it's a new company called
• 24:07
  Vestible. And so that's the kind of the platform you use to invest in these, in these players.
• 24:12
  And it started off with a few NFL players or football players in the US. But one thing I would
• 24:17
  say it's a new asset class, like it's a new platform to invest in vegetables and it's a new IPO.
• 24:24
  So it's just something to be a bit careful of. But it's quite interesting. I love when
• 24:29
  people get creative with raising 10 invest. It's like, it's, it makes it, it really opens up the
• 24:34
  investing world for people that, you know, might have not thought it was for them or are really
• 24:38
  into sports and certain athletes and can actually spot really good players early on. Totally. I
• 24:44
  mean, I think I'm almost wondering if there's like, do you know what would be quite fun one day
• 24:48
  that is for us to brainstorm other asset classes and like, and just for the sake of like getting
• 24:54
  people to think about investing differently because I think if you've been interested in business,
• 24:58
  or the economy, then investing, you just assume is not for you. But actually, as you say, like,
• 25:04
  if the idea of investing in sports or you love sports and now all of a sudden you can use those
• 25:08
  skills or things you know to make money, there's surely got to be many other examples of that.
• 25:15
  You know, like safe sales like, I don't know, you were super passionate about the environment or
• 25:21
  like, I don't know, I'm trying to think of different things that it could be. It's almost stuff
• 25:25
  that was a hobby can be turned into a money-making exercise if it became an asset class.
• 25:32
  Yeah, that'll be fun. Yeah, let's have a think. Because even like if you think about it,
• 25:36
  like personalities, like, you know, it could be radio or TV hosts or influencers, like maybe there's
• 25:42
  if you see like up and coming people or talent, it could be in different spaces, not just sport.
• 25:48
  Yeah, yeah, you could invest in them and get a clip of their earnings in the future. The one
• 25:53
  thing with this though is that with sports players, there's a lot of injuries. So imagine if
• 25:59
  you invested in an up and coming football player and then they got injured and could never play again.
• 26:04
  You know, it's like there is a waste of risk when it comes to investing. So it's just something
• 26:10
  different for us because I guess, depending on what you're investing in. Yeah, on the whole
• 26:14
  sport side of things, we also had Nike have their results last week and it's she has fell about 12
• 26:21
  percent, which is your hasn't been this level for over four years. So it's what's been going on
• 26:28
  with Nike. So people aren't buying as much Nike stuff. So China, the US are particularly soft.
• 26:36
  People are just unsure about like what's going on in the world. There's probably a bit of
• 26:41
  cost living crisis in there as well. And yeah, it's the CEO's getting a bit of backlash now
• 26:48
  because they're like, come on, this is a great business. You haven't done a good job. He's been
• 26:53
  in essence 2020. So it's been in the nearly four years. He came from eBay and you know, the fact
• 26:59
  that the share price is now back to where it was four years ago, it's like for a CEO, when you came in,
• 27:05
  you haven't moved the share price at all now because it's not open. I feel sorry for him with
• 27:10
  the stress that that, but wouldn't you be so stressed out? Oh, totally. And he's obviously trying,
• 27:17
  you know, like you would have been let go of if you were really, really shit. But this is comes
• 27:22
  back to the whole thing around the shareholders choose the board of directors which choose the CEO.
• 27:29
  So if the shareholders are sitting there unhappy, then the board of directors have to do something
• 27:34
  about it and replace the CEO. So it's kind of if the share price doesn't do well while your CEO,
• 27:39
  your time is ticking. But it's so stupid because it's not like it's just him that's running that
• 27:44
  company. But he's the he's he's he's he's hiring and firing the people below him. So if he's not
• 27:50
  bringing in good talent to do a good job of running. They just try to shift the blame. I can't even
• 27:55
  imagine this race. Yeah. But also new balance and Hocka. I don't even know if that's how you say it.
• 28:01
  Hocka. H-O-K-K-A. No, H-O-K-A. The shoe brands are doing it. Oh, you know, I have seen them actually.
• 28:06
  Yeah, I've seen them everywhere. They're doing really well. And so that Hocka, I'm probably saying
• 28:12
  really wrong. People are probably listening to me like, oh god, it's Hocka or something. Hocka and
• 28:16
  new balance are taking share off Nike. So that's also impacting them, which is... That doesn't
• 28:22
  surprise me actually. You know, when I was a I flew into Zurich before I came here and I'd forgotten
• 28:28
  my running shoes. Of course I did. I washed them and then put them out to dry and fully fit up to pack
• 28:32
  them. I was like, no. And I was obviously coming for, you know, a weekend with my sporty spice
• 28:37
  friend. So I was like, I really need to get some running shoes. So I went into footlocker and was
• 28:42
  trying to find something that wasn't outrageously expensive as a last minute shoe option. And new
• 28:48
  balance was so expensive, like more expensive than all of them. And Hocka or Hocka were there too.
• 28:56
  And the ones that I managed to get a deal on like that were cheaper were... Don't tell me you bought
• 29:01
  Hocka. No, I didn't. I wish I had. I think the most ugliest shoes. Sorry. Okay, it's got them.
• 29:06
  Right. No, I bought Essex and they were like 55 francs or is that what it's called francs?
• 29:14
  Anyway, it was just interesting because I would have thought that Nike would have been more expensive
• 29:20
  and actually it was like new balance that was the most expensive. And I don't know if it's like
• 29:24
  quality of shoe or if it's just that they're cool now, but yeah, it was weird. I definitely did
• 29:30
  think it's quite strange that I'm getting a deal on what normally is viewed as like more
• 29:35
  expensive or quality than cheaper. Yeah, especially when it's a bigger, more well-known brand.
• 29:41
  Because there's also normally quite expensive. Yeah, I love Essex, I think they're great like
• 29:47
  fitness shoe, you know? Like style shoe might be Nike 80 days, that kind of thing, but I think
• 29:53
  for like running I find Essex. I would have thought it was more fashion. I didn't even think it was
• 29:58
  particularly good at sports. Yeah, and you don't have to run me of like safe jobs. You know,
• 30:03
  you wear them with jeans, that kind of thing. I don't think Steve Jobs has got that good
• 30:08
  affection. Let's not go on that. But anyway, so Hoka, Hoka is actually part of a public company,
• 30:15
  so and it's called Decker's Outdoor and it's done nearly 44% this year. So what?
• 30:23
  Yeah, so it's quite interesting to see the difference in sheer price between Nike and Decker,
• 30:30
  which owns Hoka. Yeah. What are the, why are they so ugly Hokers? What do they look like?
• 30:35
  I just feel like even if I'm so up at this so comfy and they're so functional and I'm like,
• 30:38
  yeah, but have you tried one on? No, I don't think I like it. No, you'd be a converter if you tried
• 30:44
  them. Yeah, it's like a crock. If you just slid your foot in, I think it could be like a ghetto.
• 30:50
  Yeah. Anyway, not, not for me. Not for me. And lastly, so I always get asked,
• 30:58
  you know, when is a good time to sell or when should you stop adding to an investment if the
• 31:03
  sheer price is falling and falling and falling? And it is a really good question and the annoying
• 31:09
  answer is that it totally depends. I think if the whole market, so say the whole stock market is
• 31:15
  falling and so the company that you own and the sheer price that you're seeing on the screen is
• 31:21
  also falling, then that's probably not a time to sell because everything's kind of falling at
• 31:27
  the same time. And so I guess an example of that that could be COVID, right? Like everything's
• 31:32
  falling. It's not because there's a problem with the company necessarily or the CEO or their earnings
• 31:37
  is the fact that the entire stock market is doing badly. And that's why when you look at the
• 31:42
  average or what say the S&P 500 have done the first half of this year, say 15% is that right?
• 31:47
  Yes. So then if you have a company in the S&P 500 that's done minus 10%, that's where it's like,
• 31:56
  okay, well compared to everyone else is doing badly. So it's not just like a collective loss.
• 32:02
  And also it's over the long term. It's just one year, even if it's two years, but if you're
• 32:07
  getting to like five, six, seven years and it hasn't done well, then maybe that's a time to be like,
• 32:15
  okay, I am going to find something else to invest in and not keep adding to this investment
• 32:20
  because yeah, but only if it's if it's done badly in the market is doing well. But a great example
• 32:26
  of this is and a friend of mine, she bless her heart, she bought this stock and she didn't know
• 32:32
  anything about it. And she asked me, she was like, hey, Vic, what do you think of Rivian?
• 32:37
  And so this is an EV electric vehicle car manufacturer. It's an American EV company. And Amazon
• 32:45
  owns a large stock. So they're the largest shareholder. They own 20% and anyway at IPO's, at 130
• 32:54
  dollars two and a half years ago, it's now down to 12 dollars. And she, yeah. So 130
• 33:02
  to 12 dollars. And she has been asking me like, Vic, what point do I sell? Like when should I
• 33:08
  stop adding to it? And I might look, it's only been two and a half years. You know, the fact that
• 33:13
  Amazon owns a large percentage, like there are some good good things in there. But yeah, you do
• 33:19
  get to a point where you're like, okay, if there's something else that you're really excited about,
• 33:22
  maybe put your your money into that. But don't sell Rivian, you know, that kind of thing. But anyway,
• 33:28
  last week VDub announced a JV. So joint venture with them. Yeah. And they've invested $5 billion
• 33:38
  into this company. They've given it a lifeline effectively. It was just like, had so many challenges,
• 33:43
  you know, was was really struggling. And then you've got the savior of Volkswagen announced that
• 33:49
  it's going to be $5 billion into it. And she priced me up 50%. How much did she made?
• 33:56
  Well, so it's only gone up. So it's gone from $12 to like just, you know, it's not even $20. So
• 34:01
  it's not back to nearly where it was at 130. But she's seen a bit of like life at the end of the
• 34:08
  tunnel, all like, and this is an injection of life. Exactly. And this is why I was kind of
• 34:13
  rounding out this conversation. It's like, you never know what's around the corner in terms of,
• 34:18
  you know, a company investing in a company buying it, you know, launching a new product that's
• 34:23
  really great or defregulation that's going to be in its favor. Like there's so many things that you
• 34:27
  can't predict. So this is why it's kind of like, if you think it's in the EV space, it's got Amazon
• 34:33
  as a larger shareholder. It's got, it's got a lot of things going for it, but it has gone from 130
• 34:38
  to 12. So I can totally see how people would be like, okay, did she at least when I was at 130?
• 34:43
  I think it was pretty up there. Yeah. She's been in a while. So yeah, it just goes to show,
• 34:49
  there are things that can literally come out of the woodwork and increase the share price
• 34:54
  with 50%. But yeah, it was just an example of when people are like, oh, should I sell? If you'd
• 35:00
  sold and you'd crystallized your losses, which means, you know, you'd actually, because those
• 35:05
  losses aren't actually losses until you sell. So the share price has gone from 130 to 12. It's only
• 35:12
  on the screen. Like there is a case where it could go back up to 130. It might take a couple of years,
• 35:17
  you know, but I think it also comes up to your own personal, like how's it affecting you
• 35:22
  mentally? Like if you're putting money into that share and it's, you know, at $12 and you
• 35:27
  see it go to a living and you're constantly funneling money in. If it's making you feel like
• 35:33
  really not good, it's like, you know, your health and well-being and your mental health should
• 35:39
  be more important than a potential upside. But I guess that's why it comes down to your own
• 35:44
  personal preference, because if you can just be funneling money into something that is
• 35:48
  kind of going down, but you don't feel too stressed about it, fine. And if you're all your nails
• 35:53
  offered, like, sleep in, because you're stressed, then maybe it's a sell. And if this was like one
• 35:58
  of 10 companies you owned, or you had, you know, maybe 80% of your money in the S&P 500,
• 36:06
  and then 20% in a few other companies and Rivian was one of them, the majority of your portfolio
• 36:12
  would be up 15% because that's what the index has done. And this one, but it's only a small
• 36:18
  amount, would be down quite a lot, but it wouldn't be as impactful. So this is a great example of why
• 36:25
  diversify, diversify, diversify. I also think purchasing something like this, by the way,
• 36:29
  this is not advice to buy yourself. But, you know, it's also a good example to think, if it's
• 36:34
  done super well in the past, if you believe in the company, you're like, oh, Amazon owned tapes,
• 36:39
  and now they're doing this joint venture. And like, it's only $20 now. Maybe I'll put a little
• 36:43
  bit in it. And if it goes up amazing, you know, it's like, there's lots of so many different ways
• 36:47
  that you can think about investments. And I guess I might look at that and think it's a great idea.
• 36:53
  And you might be like, oh, nah, I'm totally would way rather than my money here. But it's just,
• 36:59
  I made it spreading it around. Exactly. All part of the game.
• 37:05
  Hey, Vick, we have had a very long episode. Yes. And I have to go to my Botox appointment,
• 37:14
  which is a dire, dire need after the last weekend. I've had so.
• 37:20
  Can I just say, right, that you've just totally admitted there? How much do you spend on Botox? How
• 37:24
  much is it? Oh, you don't want to know. What can I do? 3,550 pounds. This is a cost of aging. You
• 37:31
  know, I think I'm going to do any episode on the cost of aging. Yes, great idea.
• 37:35
  Honestly, the older I get, the more expensive my health care, would you call it Botox?
• 37:40
  Yeah, like it's crazy that we get paid less, but we spend so much more on how we look.
• 37:47
  And yes, it's an individual decision and choice. I get that. Like, a lot of people would be like,
• 37:51
  just age gracefully, but I've had my own confidence in self-esteem. And after a three day
• 37:57
  partying weekend, I need a hell of a lot of Botox. I'm going to be like, just do my whole body,
• 38:04
  please. Yes. Okay. Hey, well, I'm good luck out there. Hope things are bruising. And I will see you
• 38:14
  when I'm back from Switzerland. Yeah, enjoy yodeling. Don't care. Bye.
• 38:19
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• 38:23
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