Latest / Earn Your Leisure / Scholars Corner: Bacardi Settles with Jay-Z for $750 Million

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Scholars Corner: Bacardi Settles with Jay-Z for $750 Million · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: The stock market, especially the NASDAK, has had great had
• 1:04
  Speaker 3: a great January. Yes, last day Friday wasn't good, but
• 1:10
  Speaker 3: for the month of January it was insane. It was
• 1:13
  Speaker 3: on a great run. Do we expect February to continue
• 1:18
  Speaker 3: in this path?
• 1:21
  Speaker 4: They raised a basis points by quarter of one percent,
• 1:25
  Speaker 4: so that was the reason why I drugged down. They
• 1:27
  Speaker 4: seem to be lightening up on how much they were
• 1:29
  Speaker 4: going to raise rates, so it's not going to be
• 1:32
  Speaker 4: the aggressive six to seven percent that we thought maybe
• 1:34
  Speaker 4: three months ago. I'm kind of worried though, because like
• 1:38
  Speaker 4: the tech companies are going up like too rapidly, like
• 1:41
  Speaker 4: our rather a slow increase. I think February would be solid,
• 1:44
  Speaker 4: March will be pretty good, but I don't want companies
• 1:47
  Speaker 4: to over inflate, over hyper go up too fast, like
• 1:50
  Speaker 4: even metas damn the double.
• 1:51
  Speaker 5: Well you were talking about Facebook, so this day had
• 1:53
  Speaker 5: their biggest.
• 1:54
  Speaker 3: One day game ever. Ine, Yes, you were very barish
• 2:01
  Speaker 3: on Meta.
• 2:01
  Speaker 2: Still am and I was right in embarrassments.
• 2:03
  Speaker 5: So do you think that now it's.
• 2:07
  Speaker 3: On the rise. Yeah, it's on the rise. Yeah, So
• 2:10
  Speaker 3: what's your thoughts on Meta?
• 2:12
  Speaker 4: They finally start listening. They began to be a lot
• 2:16
  Speaker 4: more efficient. They're cutting out a lot of metal management.
• 2:20
  Speaker 4: Zuckerberg even said like it's fun now because the people
• 2:22
  Speaker 4: that it got laid off it was necessary and now
• 2:25
  Speaker 4: people that are there Meta like want to be there,
• 2:28
  Speaker 4: actually want to write code, want to make better products
• 2:31
  Speaker 4: than seeing some changes on Instagram. So I think they
• 2:37
  Speaker 4: aren't going to get back to that peak anytime soon,
• 2:39
  Speaker 4: but they're going in the right direction.
• 2:40
  Speaker 2: Yeah, I mean.
• 2:41
  Speaker 6: You said the products obviously reels. Yeah, we did great
• 2:46
  Speaker 6: for them in the court, Yes, did amazing. And there
• 2:49
  Speaker 6: is some talk that he might be cutting back on
• 2:52
  Speaker 6: at the amount of spending that he was going to
• 2:54
  Speaker 6: do into the space. And so when you're talking about
• 2:57
  Speaker 6: over fifty billion dollars being invested into the metaverse, scaling
• 3:00
  Speaker 6: that back, that's positive news, which is a bad investment.
• 3:04
  Speaker 6: And this is and if you go back, I think
• 3:05
  Speaker 6: to the end of twenty twenty one, we ask each other,
• 3:10
  Speaker 6: like what do you think is the most important stock.
• 3:12
  Speaker 2: I remember saying like, y'all, it's going to be Facebook.
• 3:15
  Speaker 6: And the reason not because of anything product that they're doing,
• 3:18
  Speaker 6: but the amount of money that he's spending on This
• 3:21
  Speaker 6: will really determine how the future of this company's going
• 3:23
  Speaker 6: to look, because if you put fifty billion dollars and
• 3:26
  Speaker 6: this doesn't work, how do you recover?
• 3:29
  Speaker 4: I mean, the peak was three eighty four thirty three.
• 3:31
  Speaker 4: It is at one eighty six fifty three. Nice growth,
• 3:36
  Speaker 4: but they at least need to get to two ten
• 3:38
  Speaker 4: and two fifty before I'm like super excited about the
• 3:41
  Speaker 4: upside of it.
• 3:43
  Speaker 5: So it was.
• 3:44
  Speaker 3: It was at eighty eight dollars in November and it's
• 3:47
  Speaker 3: had one hundred and eighty six dollars down, So I
• 3:49
  Speaker 3: want up one hundred dollars more than double in a
• 3:55
  Speaker 3: couple of months.
• 3:56
  Speaker 4: Yeah, good trade, and shout out to those who got
• 3:58
  Speaker 4: on the call. Some people are up in stock club
• 4:01
  Speaker 4: as a result. So like short term, I'm still bullish.
• 4:06
  Speaker 4: Long term, I'm still bearish until I'll see like a
• 4:09
  Speaker 4: change and playing even on like the conference call, they
• 4:11
  Speaker 4: didn't mention the meta versus much as they did the
• 4:14
  Speaker 4: previous call very intentionally. Absolutely, can we say the meta
• 4:18
  Speaker 4: versus a failure.
• 4:20
  Speaker 2: For them?
• 4:21
  Speaker 4: Will it work for other companies? Yes, Apple VR headset
• 4:25
  Speaker 4: is coming out soon. They want to replace this with
• 4:27
  Speaker 4: the headset. Tim Cook is going to eat their lunch.
• 4:32
  Speaker 2: John.
• 4:32
  Speaker 4: Kudos to John Wren, marn Alvin, Mark Zuckerberg, everyone at
• 4:37
  Speaker 4: Menlo Park. If you're in Meta and I'm right, go
• 4:41
  Speaker 4: into your other YouTube account and put yes and chat.
• 4:44
  Speaker 4: These are all the conversations like they were spending like
• 4:48
  Speaker 4: the three times I went, No, one's eating the food.
• 4:51
  Speaker 4: There's sixty thousand dollars worth of duck hunt feet or whatever.
• 4:56
  Speaker 2: Just sit. I'm like, this.
• 4:57
  Speaker 4: Wasteful spending was like insane. Now they're finally cutting back.
• 5:04
  Speaker 4: Not as many people in office. We have more people.
• 5:07
  Speaker 4: At one point they had no engineers working on building
• 5:10
  Speaker 4: new products for two years.
• 5:14
  Speaker 2: See Rasha would have fired everybody. Right, they're done.
• 5:17
  Speaker 4: So now that if they get back to a place
• 5:19
  Speaker 4: of actually being innovative, I think they can. They can
• 5:23
  Speaker 4: have a tremendous subside. But I need to see like
• 5:24
  Speaker 4: this consistent pattern of the fictional.
• 5:26
  Speaker 5: So people invest in in Meta now.
• 5:28
  Speaker 4: Or no, no, not if it doesn't get back to
• 5:33
  Speaker 4: one on two twenty three or like one on four.
• 5:38
  Speaker 4: There are other companies that you could have invested in
• 5:40
  Speaker 4: that will give you more safety. And it's crazy to say,
• 5:42
  Speaker 4: like in video is a safer move right now than
• 5:44
  Speaker 4: Meta is.
• 5:45
  Speaker 5: Well, you can go or you can go to ETF route.
• 5:47
  Speaker 2: Absolutely two tech two index, No stress.
• 5:50
  Speaker 4: Franklin Dina Tech fund is what he talked about investing,
• 5:53
  Speaker 4: Can everyone put it in chat?
• 5:54
  Speaker 2: Investment is not hard.
• 5:56
  Speaker 4: Just stick to the same blueprint, so vo O, v
• 5:58
  Speaker 4: t I, Apple, Arcosoft if you're trading maybe looking for
• 6:02
  Speaker 4: maximum but they've had an amazing quarter for sure. But
• 6:06
  Speaker 4: if you look from three eighty four down to eighty bucks,
• 6:11
  Speaker 4: that's a hell of a fall.
• 6:12
  Speaker 2: Yeah.
• 6:13
  Speaker 3: Yeah, that's the tough and that's the benefit of diversification, right,
• 6:16
  Speaker 3: So index funds, but even the ETF which is more
• 6:19
  Speaker 3: specific if you have you know.
• 6:22
  Speaker 5: The qqqs of the world.
• 6:23
  Speaker 3: Yeah, or even on mutual fund like you said, franking
• 6:25
  Speaker 3: Dona take fund where all right, if Facebook does well,
• 6:29
  Speaker 3: your benefit, But you're not putting all your eggs in one,
• 6:34
  Speaker 3: so now you get the full spectrum of all of
• 6:36
  Speaker 3: the different players on the team as opposed to just
• 6:39
  Speaker 3: you know, trying to ride it.
• 6:40
  Speaker 2: Out with one.
• 6:43
  Speaker 3: Investing in one stock is usually not a good idea, no,
• 6:49
  Speaker 3: and some people have it's been like a revelation online
• 6:53
  Speaker 3: where it's like, oh, like, but I've always said that
• 6:56
  Speaker 3: it's never been a good idea. I personally said, I
• 6:58
  Speaker 3: don't really invest individual stock. Yeah you can if you
• 7:01
  Speaker 3: want to, but of course there's a lot more risk
• 7:04
  Speaker 3: involved when you're investing with an individual stock as opposed
• 7:07
  Speaker 3: to investing in an index funnel each Yeah, but we've
• 7:11
  Speaker 3: already said that.
• 7:12
  Speaker 4: Go look at the mass straw down over the last
• 7:14
  Speaker 4: five years of every stock first.
• 7:17
  Speaker 6: This episode is brought to you by P and C Bank.
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• 9:07
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 9:11
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 9:15
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 9:19
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 9:23
  Speaker 1: some of the heinous migrant criminals caught because of President
• 9:27
  Speaker 1: Donald J. Trump's leadership. I'm Christy Noman the United States
• 9:30
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 9:35
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 9:39
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 9:42
  Speaker 1: are here illegally, your next you will be fined nearly
• 9:46
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 9:50
  Speaker 1: never return. But if you register using our CBP home
• 9:54
  Speaker 1: app and leave now, you could be allowed to return legally.
• 9:57
  Speaker 1: Do what's right, leave now. Under President Trump, America's laws
• 10:02
  Speaker 1: border and families will be protected.
• 10:05
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 10:07
  Speaker 4: Is the index strawt down is how much money you
• 10:09
  Speaker 4: lose from top to bottom. There's a lot less loss.
• 10:12
  Speaker 4: The investment is not hard. People just want to gamble.
• 10:15
  Speaker 6: And even when you're investing in the ETF, actually look
• 10:19
  Speaker 6: inside of it, Like, look at where the asset allocation
• 10:22
  Speaker 6: is going to. It changes, right, I think metas is
• 10:25
  Speaker 6: it in XLC, is it in communications? Yeah? So look
• 10:29
  Speaker 6: look at the allocation. Is it twenty percent of the
• 10:31
  Speaker 6: ETF or is it twelve percent?
• 10:33
  Speaker 2: Right?
• 10:34
  Speaker 6: Like so if it does have a droll down, it's
• 10:35
  Speaker 6: twenty percent of the ETF. Yeah, you want to feel
• 10:37
  Speaker 6: that right, whereas you might in QQQ, I think it's
• 10:40
  Speaker 6: like eight percent, right, So look inside of the ETFs themselves,
• 10:44
  Speaker 6: see the percentage of the allocations, and then make an
• 10:47
  Speaker 6: educated decision. All right, well I want to have some
• 10:49
  Speaker 6: exposure to it. Do I want to have twenty five
• 10:50
  Speaker 6: percent of the ETF or do I want to have
• 10:53
  Speaker 6: seven percent of the ETF.
• 10:54
  Speaker 4: So what would make me very bullish on Meta is
• 10:57
  Speaker 4: if they build a chet GBT competitor.
• 11:00
  Speaker 2: And that's another thing.
• 11:00
  Speaker 4: If I'm comparing Microsoft and their partnership with chat GBT,
• 11:04
  Speaker 4: if they would have had that and it could have
• 11:06
  Speaker 4: fixed a lot of the coding issues while they did
• 11:07
  Speaker 4: the layoffs, I would have.
• 11:08
  Speaker 2: Been incredibly excited.
• 11:10
  Speaker 4: They need some ail automation in place in order to
• 11:13
  Speaker 4: be able to make the company grow faster. If they
• 11:17
  Speaker 4: have that in place, I would be incredibly excited. I
• 11:19
  Speaker 4: would be bullish on Meta again at that point. But
• 11:22
  Speaker 4: if I'm comparing Microsoft's Apple versus them, I'm gonna pick
• 11:26
  Speaker 4: Apple and Microsoft every time for sure.
• 11:29
  Speaker 3: So what's your thoughts on Bacardi settling with jay Z
• 11:32
  Speaker 3: for seven hundred and fifty million dollars And what is this?
• 11:35
  Speaker 5: What is this even about.
• 11:37
  Speaker 2: Jay had a couple issues. That's fun putting it out
• 11:45
  Speaker 2: there to the world.
• 11:47
  Speaker 4: I think it was maybe six months ago where he
• 11:49
  Speaker 4: wanted to see the books I want to deal with
• 11:51
  Speaker 4: do say? And I know I read a lot of
• 11:55
  Speaker 4: the comments and people were saying, hey, he still owns
• 11:57
  Speaker 4: part of it. I get that, But my first thought
• 11:59
  Speaker 4: was if opposed to going through the entire process of
• 12:02
  Speaker 4: revealing books all sales and they agreed to pay out
• 12:05
  Speaker 4: seven fifty, how much do they really owe him?
• 12:07
  Speaker 2: Yeah, so what he wants to owe him four billion?
• 12:10
  Speaker 2: So he wanted to see the books, and this is
• 12:12
  Speaker 2: how it's being reported.
• 12:12
  Speaker 6: He wanted to see the big books because he potentially
• 12:15
  Speaker 6: wanted to sell his fifty percent steak in the company.
• 12:17
  Speaker 6: And so Bacardy owns fifty percent of Ducet and I see,
• 12:22
  Speaker 6: I guess Holdings or Liquors owns fifty percent of Duce,
• 12:25
  Speaker 6: and so he was interested in selling his fifty percent
• 12:27
  Speaker 6: stake in it. The problem is the valuation was so
• 12:30
  Speaker 6: low based on what Baccarty was saying. And so when
• 12:32
  Speaker 6: you tell me that the valuation is though, now I
• 12:34
  Speaker 6: need to see the numbers.
• 12:35
  Speaker 2: Showed me. Showed me the number because he knows his fadary.
• 12:37
  Speaker 4: He's saying like he's a fifty x multiplier to anything
• 12:40
  Speaker 4: he touches.
• 12:40
  Speaker 2: He says three Millionately, I think they got some reports
• 12:44
  Speaker 2: where they.
• 12:44
  Speaker 6: Said they were worth five billion, and Bacarty is saying, like, not,
• 12:48
  Speaker 6: it's worth one point five So if you have it's
• 12:51
  Speaker 6: worth one point five billion, your fifty percent steak is
• 12:54
  Speaker 6: seven hundred and fifty million.
• 12:55
  Speaker 2: That's what you're entitled to. And so now I have
• 12:58
  Speaker 2: to look at the books.
• 12:59
  Speaker 6: So they went through little gation for like, like you said,
• 13:01
  Speaker 6: six months, and it's like he finally got to a
• 13:04
  Speaker 6: point where they actually settled on Friday, and the settlement
• 13:07
  Speaker 6: was rather than selling the fifty percent steak, he sold
• 13:10
  Speaker 6: majority of his fifty percent, and so technically that's like
• 13:15
  Speaker 6: he has a twenty four point nine at the maximum
• 13:18
  Speaker 6: cent stake of their company. So now Bacardi's side, they saying,
• 13:23
  Speaker 6: all right, well we're going to agree with that evaluation.
• 13:25
  Speaker 6: So let's say they agree and this is all alleged.
• 13:27
  Speaker 6: We don't know the exact numbers. Let's say that they
• 13:29
  Speaker 6: agreed that it was three billion. I still have to
• 13:33
  Speaker 6: like payout right, because he's.
• 13:34
  Speaker 2: An amazing payoff.
• 13:35
  Speaker 6: Yeah, right, so that that's almost that's almost a billion
• 13:38
  Speaker 6: dollar transaction based on selling. Now he still has a
• 13:41
  Speaker 6: large steak in the company, like I said, twenty four
• 13:43
  Speaker 6: point nine percent if he did, right, So they still
• 13:46
  Speaker 6: have the majority. But now Bacardi owns seventy five point
• 13:49
  Speaker 6: one percent of.
• 13:50
  Speaker 2: Do So or to'd be worth in eight years off
• 13:52
  Speaker 2: of his name, right.
• 13:54
  Speaker 6: Or if the numbers show like he stay settled at
• 13:56
  Speaker 6: three billion allegedly or reportedly, but.
• 13:59
  Speaker 2: What if it was for.
• 14:01
  Speaker 4: Or seven or right, and we know during the depression
• 14:06
  Speaker 4: alcohol consumption goes up, they're still going to use his
• 14:09
  Speaker 4: likeness in some way to promote the brand. I will
• 14:12
  Speaker 4: not be surprised if that brand in four or five
• 14:14
  Speaker 4: years is the word twelve or thirteen billion dollars and
• 14:16
  Speaker 4: all of a sudden it was some kind of accounting
• 14:18
  Speaker 4: error to value at one point five or one.
• 14:20
  Speaker 6: Point And I'm sure he's going to promote it, right,
• 14:22
  Speaker 6: It's not like he still doesn't have ownership in it.
• 14:23
  Speaker 2: Yeah right, we at the brunch do say he's sponsoring it? Yeah?
• 14:27
  Speaker 6: Right, So the brand will live on obviously, you know
• 14:30
  Speaker 6: he still has a steak, he's an owner, So why
• 14:33
  Speaker 6: wouldn't you promoted it still generates revenue for you.
• 14:36
  Speaker 4: That's tricky though, because I hate when these valuation games
• 14:38
  Speaker 4: get played with us in particular, and I guarantee in
• 14:43
  Speaker 4: the year they're going to reevaluate, the company is going
• 14:46
  Speaker 4: to be worth a hell of a lot more.
• 14:47
  Speaker 6: Yeah, but that and so shout out again kudos to
• 14:50
  Speaker 6: j and the whole team. Right, So if you look
• 14:52
  Speaker 6: at it last year, they need to move with LVMH Yeah,
• 14:56
  Speaker 6: Asu Spade, they have to be part of that luxury company.
• 15:00
  Speaker 6: And we saw the numbers that that did, and so
• 15:01
  Speaker 6: do say was something that kind of was birthed after that.
• 15:05
  Speaker 2: But you getting I mean it's still a win. I'm
• 15:07
  Speaker 2: still a big win.
• 15:08
  Speaker 4: Yeah yeah, but I don't want black entrepreneurs to get
• 15:13
  Speaker 4: lower valuations and then matters value at what it's worth.
• 15:18
  Speaker 4: And if I have to ask you who is a
• 15:20
  Speaker 4: more impactful CEO, Jay Z and Mark Zuckerberg, I'm going
• 15:23
  Speaker 4: with Jay every time. Let ja have that slot at
• 15:26
  Speaker 4: Meta for two years unless see what it does.
• 15:29
  Speaker 2: I know what it would do well impact.
• 15:32
  Speaker 4: Absolutely like relift the Instagram, relift the Facebook, all the content.
• 15:37
  Speaker 4: It would be dramatically different. So, like I hate that
• 15:39
  Speaker 4: they devalue what the brand was really worthwhile. But don't
• 15:42
  Speaker 4: get me wrong, seven fifty is a win. That's on
• 15:44
  Speaker 4: a conservative low end.
• 15:45
  Speaker 6: Yeah right, but I mean again, you want to do
• 15:48
  Speaker 6: something great, true greatness? Can you do it twice? He
• 15:51
  Speaker 6: did it with a speed, that's true. I did it
• 15:53
  Speaker 6: with Yeah. What's to say you can't do it again?
• 15:56
  Speaker 6: But shit, you have to No, but you could. Yeah,
• 16:01
  Speaker 6: shout out.
• 16:01
  Speaker 5: The whole
• 16:04
  Speaker 6: My graduates from my school being force back drop back
• 16:09
  Speaker 6: drop or my drop back drop b drop