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TCW87: Why are CEOs cashing out now? · The Curve

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Welcome to the Curve Weekly, the podcast that keeps you up to date with all of the money
0:04
business and stock market too.
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Brought to you by the Curve's research team, the latest insights on what's happening in
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the stock market, companies, other money related news so that you can stay educated and
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ahead of the curve.
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You can thank us later for sounding smarter than those finance bros you need to know, Patti.
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Firstly, I want to thank everyone who applied to be my co-host today, because Sophie is
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sailing on a yacht somewhere, it sounds very bougie, and it is pouring with rain here in
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London and freezing in gross, but not complaining, not jealous at all.
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But we have chosen drum roll, the lovely Sheena, and this just a reminder, this was her
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application.
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My name is Sheena, I love the Curve, I've been listening to you since you started, originally
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a Kiwi, but now living in London, I've always been interested in finance.
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My first job actually was in a course into a bank, we're often made mistakenly voice
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for the automated telepropter, and one customer once told me I had a beautiful voice for
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radio, so it feels like the stars are aligning.
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So yeah, we'd love to, we'd love to pitch in and talk all things finance alongside
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that.
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That actually always cringes me out when people say they've listened to life since the
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beginning.
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It's because I know it's beautiful, the journey, you know, it's just, it's like when
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you watch a reality TV show in their first season, and it's like, so authentic, it's
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like the sailing sunset, the outfits in season one, versus like season eight.
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It's beautiful.
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They don't, it's like the first love is blind season, everyone genuinely, genuinely wants
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love.
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That's great, but yeah, always been a big fan of finance, personal finance.
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Yeah, my first proper job was in a course into a bank and learnt so much, we learnt so
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much there, and the irony is that you had to kind of be providing like support to people
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on the finances, so you kind of had to learn.
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Yeah, so got an interest then, and then I, when I learnt about Kiwi saver, I was like,
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this is incredible.
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I'm going to put the highest percentage that I can.
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So I, oh my god, look at you.
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No, I'll be at the stage.
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21.
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Yeah.
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Thanks.
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And I was just such a evangelist for it, and I went so hard because I was like, I want
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to buy my own place when I'm older.
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Long story short, I put lots of my Kiwi saver, saved so hard for like six to seven years,
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was a bit of a hermit, just was so like single-minded focused.
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And what gave you that drive though?
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Because during those ages, for me, I personally found it so hard to prioritise that delayed
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gratification.
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Yeah.
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Like if someone was like, we're going on a holiday or we're going on a girls trip, we're
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going shopping, I'd feel like, okay, I'll save tomorrow.
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You know?
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Yeah.
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And just to have that persistence, is it during your training?
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I think I, I always had a goal of like financial independence, and I grew up in quite a
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big family, and I really was like, I really want.
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I probably was quite a few minutes mind-set, but I was like, I really want something of
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my own, that is fully my own.
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And I'd seen, I guess, like, I did a bit of an OE before I came back and started working
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in the bank and studying, and I was like, hi, I kind of want this ability to have like
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a bit of kind of financial freedom.
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And so I think I just was like so focused, I'd print stuff out on the wall, like I had
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a child.
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I was like, I'm just a bit of a bit of a bit of a, you know, psychology behind that.
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Yeah.
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It was addictive, just saving, saving, saving.
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Anyway, I ended up buying my own place, like on my own with no family help.
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Like I really didn't, yeah, with my Kiwi Sava, and with my savings.
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Maybe when I was probably about three years ago now.
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Whereabouts was it?
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It's in Wellington.
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In Wellington?
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Yes.
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It's in Wellington.
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It was actually really scary.
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Yeah.
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But it was so exciting in that moment when I got it, I was like, wow, the feeling of accomplishing
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something that you've put so much, there was the hardest I've kind of worked towards
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something in terms of savings.
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It felt incredible, but I must have it now.
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So I was like, really good at saving, and it was my key focus.
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And then I moved to London, yeah, I caught up with a friend the other night, and he was
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like, oh no, you definitely don't save money in London.
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Like it's not work.
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No way.
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Yeah.
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I think the idea of the OE, you know, 20 years ago, where you could come and work in
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a pub and save money and go back to New Zealand and have saved a house deposit is like,
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wow.
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The exchange rate was like three to one then.
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Yeah.
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So you literally like triple your savings or what you had or your earnings when you went
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back to London.
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It didn't make sense, but yet now, coming over here, earning heaps and going back home,
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it's just coming over here, having fun, a couple of years.
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Yeah, I think it's going to be fun.
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It's the mentality too.
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So I must say I am not as kind of financially saving now.
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Yeah.
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You know, social life is great, savings is absolutely miserable.
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Well, you're still keeping up the knowledge, you're learning, you're listening to the
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curve, which is great.
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How did you come across us, if you can remember?
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Okay, so I was always a real big podcast fan.
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Oh, yeah.
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Early adopter.
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Yeah.
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And I used to listen to, there was this Australian financial podcast for women, I can't
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remember what it's called, but I would like try and find personal finance podcasts and
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some of them were quite dry.
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You know, like there were some American ones that were very like, you know, set towards
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a certain demographic.
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And then I, I think I just saw you guys in the old, you know, and then popping and then
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saw you popping up and then friends were talking about it and it was around the same time
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as platforms.
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I mean, I know you probably came a bit later than Sharesys, but there was like a real kind
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of push and conversation around like personal finance.
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Yeah.
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What is it?
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Investing, micro investing.
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And it's once you start leaning into that, you notice how much conversation is going
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on around that.
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So now, this is the part of the show, the show law, where I kind of talk about some topics
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that have gone on in the world and the news, finance and investing space.
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So feel free to ask questions.
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I'm hoping that you can be way better than so, and then she wants to be out of the job.
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No, no one could beat so, so if you were at your time, and I'm just like, sorry, sorry,
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she was so great.
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I'm just going to be like, hey, that's so fun.
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So firstly, something I've noticed is that there is a lot of key people and key businesses
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that are selling stock at the moment.
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So firstly, the video, do you know that coming up here about them, aren't they like the
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most valuable?
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Yeah.
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Biggest chips, right?
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Yeah, AI chips.
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They're going to AI.
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Yeah, all of that.
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So it's kind of like the AI poster child, if you're like, a lot of people don't know anything
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about AI, but they want to invest in it.
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Yeah, that's kind of, yeah.
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Yeah, the go-to stock, I guess.
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The SEO has just sold, he's been selling for a while and he's sold about nearly 700 million
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dollars worth of stock since about June, but we've also got the Dell founder, you know,
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Dell.
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Yeah, yeah.
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So the CEO and founder, Michael Dell, he's sold about 600 million of his shares and he's
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already sold about 2.5 billion dollars of stock.
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Walmart, the Walmart family is selling, selling a whole lot of stock.
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Berkshire Hathaway, that's Warren Buffett, something.
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Yeah.
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Warren Buffett.
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So actually, one of the key executives there, so not Warren Buffett himself, but one of
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his like, second in charge, sold $140 million of Berkshire stocks at first time he sold
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since 1986.
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Okay.
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There's a real dream.
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Yeah.
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Is this normal to happen around this time of year because they, you know, perhaps post recordings
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or there's something where they're like, yeah, this is time to cash in.
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There's a bit of that because these insiders, there's only certain times they can sell.
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Yeah.
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Okay.
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And that's after like financial results have been released.
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And everyone knows all the financial information of the company.
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Now you can sell.
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Where it's before it's like, you know, it's a bit of that, but it's also like, like when
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I say, this guy at Berkshire Hathaway hasn't sold since 1986, that's to me is like, and
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all these other, yeah, Walmart and a video down like, to me, it's like, what is the
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service to representing?
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Yeah.
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They can see that their companies or the stock market was going to keep going up and up
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and up.
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You wouldn't be selling.
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Like hands down.
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You wouldn't sell your portfolio if you knew that it was going to keep doing better and
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better.
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I can imagine it would kind of be a course for speculation, right?
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It would be like, she isn't the curve.
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It's like, it's like a, it'd be a real thing.
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It would be like, OK, like why, you know, what can you see something on the horizon?
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It's not good or as this is good as it gets, like that kind of thing.
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And so people are kind of looking at this going, OK, stock markets are about 21% so far
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this year, which is, which is massive considering it does 9% on average over the long term period.
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So is that, sorry, is that the average total return has been like 21% is that, or the
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return this year.
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So, yeah, OK, from, yeah, the first of January to, yeah, what are we in the end of September,
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nine months, 21.
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And then last year to 24%.
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So we've had two pretty good years.
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So these people, considering we've been in a very inflationary and exactly as well.
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So I don't know, everyone's kind of a bit like, like, is this, yeah, I can imagine the
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market speaking like, like really start to become a bit spooked when that happens and
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try and determine what that means, right?
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Get into the psyche of these insider executives to understand what do they know that we
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don't know.
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And there's like a million reasons you could sell, like it could be companies specific or
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it could be personal, you know, I'm ready to retire, I want a little bit of cash for
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my yacht.
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But also, like you could, but you might, if you kept it in there, you could buy a bigger yacht
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if you thought that the company was going to do it.
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So yeah, I don't know, it's just, I remember getting told when I was a young analyst,
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like a lot of reasons people sell, there's only one reason someone's bought, someone buys
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and that's because they think the value's going to increase.
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So it's trying to, yeah, okay, so you can't either try and make any assumptions.
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No, but when you do see a lot happening around, maybe of like very, very smart people,
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yeah, companies, to me, yeah, or you did not realize Dell was after Michael Dell and
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I'm having a huge company based on your name.
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I know.
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I know.
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I know.
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Also, just on that bit about Warren Buffett, this just like completely spooks me when I read
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this headline.
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There's a Fintech company that's been created, and they've created a fund and what they do is
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they use ChatGPT and other AI platforms to replicate Warren Buffett's portfolio and
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other very good investors, but what they've done is they've effectively put like 30 years
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of newsletters, portfolio holdings, all of that into ChatGPT and gone, can you create
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a fund?
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So of course, they're like training the large language model to be able to think like
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one of the world's best investors.
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I was like, I want to do that, I wanted to do that before the podcast, but I didn't have
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time to put in 30 years of newsletters, but that's what it's getting all the data right.
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And then there's like, it's really interesting, you know, there's a lot of question around
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AI and ethics of like, what data you're inputting and how you're kind of training this AI to think
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like a certain person, what kind of person, but if you look at what isn't Berkshire Hathaway,
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one of the most successful, what do we call them investment companies?
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It's like an investment company, yeah.
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It's done 14% return per year.
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Wow.
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Like if you think you get money in the company, it's like 50.
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For 30?
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Yeah.
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30.
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That's over the last 30 years.
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Yeah.
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So this AI that they've created, is it a company then, is it an investment firm?
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Yeah.
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And they're saying, okay, so now we're going to use the best data analytics.
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Yeah.
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It's a fund.
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Yeah.
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Okay.
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So I mean, I could probably go away and do it all myself, but it's like, you could also
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just give your money to this fund that's done it.
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I would be so interesting to see how well it performs because the data could hallucinate
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as well.
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Like, you know, the AI could hallucinate.
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I guess you'd need a person to be able to, yeah.
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I just think it just takes away the edge of an investment professional.
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Hmm.
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I don't know.
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Like, why would I go and put my money with Warren Buffett when I can now just replicate
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well, I don't know.
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I'm just, it was the first time you're your IP.
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Yeah, exactly.
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Yeah.
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Yeah, yeah.
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I just think this is the first time, I don't know, we've been using AI at the curve for a
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while.
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And like, love it.
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Absolutely.
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But this is the first time I'm like, holy shit, but the finance industry, like this could
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be game changing.
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Yeah.
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Like, the fact that it could learn someone's investment style replicated.
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But then what happens to the workforce of all those investment analysts?
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I'm just sorry.
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But this is where you start to see it's like the gains that it can have is extraordinary.
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But then what does that mean to like the talent and the work, like the workforce?
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Yeah.
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It's like when they happen with traffic designers.
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Yes, exactly.
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Yeah.
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With Canva and stuff.
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Yeah.
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Yeah.
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I know it's quite wild because I'm sitting here, well, like if we started out on funds management
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company and the curve fund, but if everyone could replicate that from CHEP GPT, why would
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they invest for this?
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Yeah.
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What makes us so special?
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What's our unique selling point, right?
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Wow.
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I don't know.
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I don't know.
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But it's happening.
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And we have to run with it.
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I just think it's going to have to be so much regulation.
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Yeah.
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And it might be trying, but it's taking, of course, like regulation is like decades behind
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innovation, right?
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And technology.
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Yeah.
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It's like, even now they're trying to like put curbs on social media.
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It's like, oh yeah.
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All the damage has been done.
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A hundred percent.
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And the like, addictions there.
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Yeah.
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And everyone's going to find loopholes.
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It's exactly.
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Yeah.
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Yeah.
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Yeah.
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If you're addicted to something, you find a loopholes.
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Oh god.
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I know.
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I'm like, every night.
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I'm like, I'm going to read my book tonight.
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And then I'm like, next minute.
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Yeah.
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I'm just going to give myself two minutes to absolutely wipe my brain of eating thought.
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Oh.
14:49
I think I need to sign up.
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I see timings.
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Yeah.
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The 13, 14-year-olds, like they have timings in China or all that.
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I'm definitely going to have to do that.
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A lot of it.
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Also in Australia, so calls and woollies have been in a bit of trouble, actually.
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Yeah.
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It's quite interesting to be making Australia because it is very much a duopoly.
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Yeah.
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So calls, you got woollies.
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They both have real dominant market shares in my duopoly.
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I mean, it's two companies in an industry.
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When you don't have a lot of competition, you can kind of...
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You can see at the price.
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Yeah.
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And so you can say a broccoli is $4.
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Yeah.
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And really, they're buying it for 30 cents or what have you.
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And the thing with the duopoly is that if someone cuts the price, then the other person
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cuts the price.
15:29
Yeah.
15:30
And it's kind of raised to the bottom.
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So it's kind of this like unwritten rule of like, let's keep up with each other.
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It's bittersweet and lethal.
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Yeah.
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It's not doing a duty work.
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Yeah.
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Whereas if you had a third contender who came in, like, was it Costco trying to come in New
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Zealand or something?
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Yeah.
15:43
And there's Aldi and stuff like that.
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Yeah.
15:45
It's just, they're not big enough to make a difference, to disrupt, right?
15:48
Yeah.
15:49
And so anyway, they have been sprung by the regulator for doing fake discount.
15:55
So not bad.
15:56
Like they're saying 50% off, but they increased the price before they did the 50% off.
16:01
I've heard about like, you know, before Black Friday, your brand sees that watch out
16:05
because a week before your, like, air pods are going to cost 50 pounds more.
16:09
And then they're going to cut it.
16:10
And it's all, it's all like that's a really good marriage.
16:12
I remember someone gave me a really good tip and they were like, if there's anything
16:15
you want, like, air pods, a TV laptop, like, what he wrote is, if you've got your eye
16:19
on something, take a picture of a right down the price, but keep your eye on it.
16:24
Yeah.
16:25
And yeah, just be aware of it.
16:27
If it is a Black Friday sale, that's going to price is a hundred.
16:30
Yeah.
16:31
But it's going to cost 50 dollars.
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Yeah.
16:35
So not a single thing.
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So we fall for it.
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Like it's like, oh my gosh, 50 pounds off, incredible.
16:41
Even if it was like they jumped it up.
16:44
So did the suit, the suit markets have been found doing this?
16:47
Yes.
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And so it was all found because of these little caramel, oh, koalas.
16:53
Oh my gosh.
16:54
I honestly, the humble koalas.
16:56
Oh my gosh.
16:57
The hot koalas.
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It's like the headlines all across the AFR, like the Australian financial reviews, like
17:03
the koala.
17:04
It's the one that, like, it's sorry if I name it.
17:05
The koala is here to bust down the capitalist, it's like, you're up early in the year for
17:09
the people.
17:10
It was like a great marketing for them.
17:14
It was brilliant.
17:15
But anyway, yeah, these sheer prices are both off, like, they're both fought for on this
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week.
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So calls and willies.
17:23
Okay.
17:24
Because they've been given a slap.
17:25
Yeah.
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There's just been so much attention on these two companies for so long and cost living
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crisis.
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People are getting pissed off.
17:35
Like, yeah, and they know that they're seeding the prices because they have the power
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to.
17:40
Yeah.
17:41
So and that's feeling like you, everyone needs to eat, right?
17:43
Like you have to buy groceries.
17:45
You have to be able to feed yourself and your family and you know that what you're paying
17:51
is unreasonable, yeah, to be honest.
17:54
And there's nowhere else to go.
17:55
No, there's not options and they're making billions going to happen, like because they've
18:02
been slapped on the rest, but do you think what it will take is either like really serious
18:07
regulation to monitor the prices based on what is fear or they're being a big enough
18:12
competitor?
18:13
I'm in two camps because I'm personally like the more you regulate industries, the less
18:21
the just natural market forces, you know, work out and play and then you kind of screw
18:27
things up.
18:28
So you start fiddling with things.
18:29
Yeah.
18:30
But the fact that there is such a lack of competition means that I think you need to create
18:34
an environment that is attractive for more competition.
18:36
Yeah.
18:37
So whether that's like, okay, you can only have X amount of well worth stores in one state
18:42
or you know, like that, those kind of restrictions, what opens up locations for another competitor
18:47
or something like that.
18:49
I think removing the barriers to allow there to be more competition so they're not kind
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of hitting it right.
18:55
Yeah.
18:56
Yeah.
18:57
So creating that initial kind of, you've solved it and ties with me.
19:00
Guys.
19:01
Hey, Albanese.
19:02
Hey.
19:03
Hey.
19:04
So you go back.
19:05
Victoria Apple, actually.
19:06
Hey, if you thought about, if you just restrict, I was just kind of, you know, spitballing
19:09
with my friend.
19:10
You know that koala saga.
19:12
I think I've got a solution.
19:15
Yeah.
19:16
You know, I think they've just, the people are pissed off in Australia and there's been
19:22
like the fact that these companies earn billions and billions of dollars is a cost-living
19:25
crisis.
19:26
It's just like, I think I hope this is a different point.
19:29
People feel like they're not involved.
19:30
But also, these stocks have actually done very well.
19:33
They're great dividend stocks because they just churn out billions and billions of dollars.
19:37
So when you say dividend stocks, what do you, so how does that kind of differ from like
19:42
you know, ETF or so like if we take in a video, for example, like their share price has
19:48
just gone up and up and up and up and up, like kind of in the straight line.
19:51
Whereas with calls and woollies, it hasn't been like that.
19:55
Obviously they're not writing the AI way.
19:58
But they have consistently paid a really good dividend.
20:02
Okay.
20:03
So that is part of your return.
20:04
It's like a guaranteed return because you're always going to be in demand.
20:07
Yeah.
20:08
You've got five, six percent return, but you get paid that when you can opt to reinvest
20:14
it.
20:15
But it's essentially like a very steady, delivering stock.
20:18
Yeah.
20:19
And so, yeah, supermarkets, like telecommunications companies, utilities, they all pay because
20:24
these are kind of like basic needs that people have.
20:27
Yeah.
20:28
So you're always going to be able to have them a demand for them.
20:31
Exactly.
20:32
And they've got good visibility on their future growth.
20:34
They know that there's ex-mount people in the population who have got this much market
20:37
share they're going to have to eat.
20:38
You know, like it's pretty, yeah.
20:40
The mighty koala.
20:41
We'll see what happens.
20:42
Yeah.
20:43
Thank goodness for the little koalas.
20:45
Slow brilliant.
20:46
I'm just going to imagine the PR company sitting there being like, whoa, we really didn't
20:51
ask for this.
20:52
But we'll write it.
20:53
The koala has just become like the icon of the cost of living crisis.
20:56
You know, it's like Thailand has moved in and Australia now has the Caramelic koala.
21:01
Yeah.
21:02
Perfect.
21:03
Also in New Zealand.
21:04
I don't know.
21:05
This is also something that I am really frustrated with is this whole return to the office
21:10
situation.
21:11
Oh, I'm so many thoughts.
21:12
I feel like I'm a broken record and every, every day, every week, there's another company
21:19
that's enforcing everyone to go back to work, whether it's Amazon.
21:21
Yeah.
21:22
And I don't know.
21:23
It's just, I'm like, I get it.
21:26
But just, it's like throwing the baby out of the bathroom.
21:29
Yeah.
21:30
It's so extreme.
21:31
Maybe a so sick of, we can't have flexibility and maybe ambiguity.
21:36
So instead of maybe us finding a happy, happy medium where you come in twice, everyone
21:41
come in five days a week and we are absolutely snapping back to what it's been.
21:45
And it's because the minority, good old Jane blogs here, she passes around at home and
21:51
now ruins it very well.
21:52
It's just get rid of her.
21:53
Don't change the whole system.
21:55
Percent.
21:56
And it's really interesting when you look at the kind of stats on productivity and engagement.
22:01
And being in the office five days a week, it doesn't necessarily mean that people are
22:04
more productive, like bums on seats does not guarantee quality of work.
22:09
Well, travel time as well.
22:10
Like it's just a hair.
22:11
It was like you can travel an hour in the morning and the afternoon, it's like, that's
22:16
two extra hours.
22:17
Yeah.
22:18
Cost.
22:19
Yeah.
22:20
I don't know.
22:21
I also feel like there's been a huge step up in participation of women in the workforce
22:25
when there's been flexible working hours.
22:27
There is, isn't there stats at like an impacts woman, the expectation of being in the office
22:31
right.
22:32
Well, the office was set up.
22:34
Yeah.
22:35
I mean, we're the predominant workers and that was a nine to five and they had their wives
22:40
at home to drop the kids up school and pick them up.
22:42
And now it's like get up with the plates.
22:44
Like that is not, we're not in that traditional mindset anymore.
22:48
And I don't know.
22:49
I just, I was on the lift the other day and this guy jumped in and he was talking to this
22:52
other guy and I was overhearing.
22:54
I loved.
22:55
Yeah, yeah.
22:57
I'm going to talk about you and my podcast.
22:58
Yes, I can.
22:59
I've got my earplugs in it.
23:00
And he was like, it's not an attractive employee policy.
23:05
If I was to look at two jobs and one was like, you have to work five days a week in
23:08
the office.
23:09
The other was like, you have flexibility, but we prefer to be in the office, but you've
23:13
got flexibility.
23:14
Yeah.
23:15
100%.
23:16
Like treating me like an adult, providing me with the ability to manage my time and trusting
23:20
me.
23:21
I think it's the trust, isn't it?
23:22
Yeah.
23:23
And I get it.
23:24
It will slack off at home, but you can weed them out pretty quickly.
23:27
You absolutely can.
23:28
I don't know.
23:29
I just think it's like, just give the people the flexibility.
23:31
It's not that hard.
23:32
It's going to be an interesting thinking about the impact of these companies for being,
23:36
you know, attractive in terms of talent, because that is, you know, I remember reading
23:40
something around like recruitment trends.
23:42
And it was like the number one thing people ask for is flexibility, often over lots
23:47
of other things that it's like seen as such high value.
23:50
But I reckon the time it will change is when, because right now there's almost, and
23:55
we're just coming out of it, the employee has the upper hand, because there's, it's
23:59
a very, very low unemployment.
24:01
When you get to a point where there's high unemployment, people will be like, the pension
24:05
will always swing, doesn't it?
24:07
Yeah.
24:08
So I think, but I just hope that it is a, that if anything came out of COVID, it's like,
24:13
this can work.
24:14
Yeah.
24:15
You know, like we don't have to have.
24:16
Companies were doing it, like my workplace before I worked at a big bank, and they had
24:22
flexible working before COVID.
24:23
Yeah.
24:24
And it was everyone loved, like it was seen as being like a, um, a attractive employer,
24:29
because they had that.
24:30
Yeah.
24:31
Everyone's had a taste.
24:32
They're not gone back.
24:33
Yeah, I know.
24:34
Gone back.
24:35
Yeah.
24:36
No, definitely.
24:37
Oh, but anyway, sorry, we were, I was going with that.
24:38
Yeah.
24:39
After that, right?
24:40
Sorry.
24:41
And the government has imposed that all public servants have to be back in the office.
24:47
Yeah.
24:48
I'm not across this.
24:49
I know.
24:50
Are you really?
24:51
Yeah.
24:52
To what degree?
24:53
How, like, five days?
24:54
Yeah.
24:55
Yeah.
24:56
Back full time in the office each day.
24:57
And the reasoning, I read the article, and I was like, the reasoning is because of the
25:03
restaurants and bars and cafes in the CBDs are struggling.
25:09
And I mean, there is some fact to that.
25:11
Absolutely.
25:12
But I'm like, but I don't think that requires.
25:13
And that also just thinking about like the behaviour of people, like, you can't expect
25:19
someone to go from being in the office once a week to five days a week.
25:23
Do you know how much their change is going to impact them?
25:25
Totally.
25:26
And like, child care, you'd have to get and like, oh, I don't know.
25:28
And people would have moved away.
25:29
I just, yeah, I think I get what New Zealand's doing here.
25:33
And I know the bars and restaurants and that scene, the hospital scene's really struggling.
25:37
Yeah.
25:38
And what about all the cafes and restaurants and suburbs that have actually done quite
25:43
well?
25:44
So I don't know.
25:45
Do you know if there are other unions getting in on that, because you know, the public
25:47
sector is quite unionized.
25:48
Yeah.
25:49
And I do wonder whether there is some resistance to that, because that's interesting when
25:53
they kind of come into the, you know, in terms of time, but it is fascinating how government
25:59
can mandate that.
26:00
Yeah.
26:01
They also quote, like, innovation, you know, like everyone's more productive when they're
26:04
together.
26:05
And we at the Curse are effectively a content creation company, and we do fine.
26:12
We ride on creativity.
26:13
We say we have three days where we're like, can you try your best to be in there?
26:16
And that's when we'll do in-person meetings and all of that.
26:19
But it's not like, it's not like, if someone's like, I want to work hard.
26:22
It's not meaningful engagement, right?
26:23
Yeah.
26:24
If you're going to go in the office, make it meaningful, make it collaborative, make
26:27
it worth people's time to actually physically be together.
26:30
Yeah.
26:31
Other things can be done at home.
26:33
Yeah.
26:34
We go.
26:35
A few other things before we finish.
26:40
So Nike.
26:41
There's been a bit of news there.
26:42
This was one company that we actually spoke about in the World's Spacers Investing Club
26:47
that our founding members have access to, we're about to launch it to everyone else,
26:51
very, very shortly, which we're really excited about.
26:53
So this is where we talk about certain stocks and ETFs each month.
26:57
And Nike is one of those.
26:59
And they have been struggling.
27:02
Mm-hmm.
27:03
I mean, we can just look around and see, there's like so much more competition nowadays.
27:07
It is crazy.
27:08
Like, yeah, you've got, it started with Hoka and Hoka.
27:10
Yeah.
27:11
That's one that they've pulled out as I'm running.
27:13
And so there's been, yeah, there's been a lot of increased competition.
27:19
They've got quite high exposure to China and China hasn't been doing too well.
27:23
And just really poor strategic direction from the CEO.
27:27
Anyway, he announced last week that he is off.
27:29
He is.
27:30
Probably got the boot.
27:32
You kind of only have, I mean, investors will be, what is it, patient, or we will.
27:38
Like, if you become a new CEO, usually it takes you a year to kind of clean the decks.
27:42
Whatever, you know, figure out what you're going to strategically do with the company,
27:46
hire people.
27:47
Whatever.
27:48
And then after a couple of years after that, to really ramp things up.
27:50
And yeah, this guy, John Donahue.
27:53
Donahue.
27:54
Donahue.
27:55
Donahue.
27:56
And he looks like a John Donahue.
27:57
Oh, I can so imagine.
27:58
Um, he, yeah, he just, he wasn't performing, he wasn't performing.
28:01
And investors like you own, when you're an investor in Nike, you own pardon, Nike,
28:06
you get to vote.
28:07
You get to like decide and in the board of directors tomorrow, action that for you on
28:12
your behalf.
28:13
And they've effectively said, I mean, I don't know if he got fired or asked to leave,
28:17
but when the shipwriters are doing too well, yeah, yeah, I mean, you're in the actual
28:20
Elizabeth public role, but also the embarrassing thing when he announced his departure, the
28:27
shipwriters went up eight percent.
28:31
You just, when you're in it, that like much of a public high profile role, you just
28:36
man, you're like self-esteem, you're marchers every morning, you'd have to be like, I'm
28:39
great.
28:40
I can do this.
28:41
I can do this.
28:42
I know.
28:43
I was just like, that would be the salt and the wound for me, if I left a company and
28:48
the shipwriters went up.
28:49
Yeah.
28:50
John Donahue.
28:51
Oh.
28:52
So we've got someone new.
28:53
Yeah.
28:54
Who actually left the company and then has come back.
28:56
Oh, yeah.
28:57
So he was head of like consumer and marketplace or something.
29:00
I don't know.
29:01
He's, he's like a veteran there.
29:03
Trust is come back.
29:04
Yeah.
29:05
That might also be the reason the shipwriters went up because people are like, oh, he was
29:07
actually really good when he was there.
29:08
Like with Disney, right?
29:09
Yeah.
29:10
Yeah, yeah.
29:11
Oh, yeah.
29:12
Look at you.
29:13
She's in this room.
29:14
She's in this room.
29:15
But yes, it has been struggling.
29:16
It's struggling.
29:17
It's fallen about 24% this year.
29:19
Like I said before, the market's up between the one.
29:22
So that's about 45% it's a lot under performance.
29:27
But if you still believe in Nike and you think it's going to be around three
29:29
more.
29:30
Just do it.
29:31
Yeah.
29:32
So I quickly want to talk about China because there's been a lot of stocks that have
29:36
done well because it's announced this new stimulus package.
29:39
Now what stimulus means is just it means government pumping money into the economy.
29:42
So they've decided, look, we're not growing as fast as we want, let's pump some money
29:47
in and.
29:48
Yeah.
29:49
So what they've done is they've lowered interest rates, which helps feel the economy,
29:55
gets people spending, it's announced like things like $30 billion package for to buy stocks.
30:01
Wow.
30:02
Which is kind of artificially inflating a stock.
30:04
And you're not supposed to, again, like I said before, you know, when markets are just
30:09
supposed to market for.
30:10
I was just stating it.
30:11
Yeah.
30:12
But anyway, I mean, it works.
30:14
Yeah.
30:15
Pretty excited.
30:16
And then also gave all the banks a whole lot of money as well.
30:20
So they were really trying to simulate the growth in China because it has been stagnant
30:25
for a while.
30:26
Yeah.
30:27
I mean, it's growing, but it's not growing as fast as it was.
30:29
And that it's a concern because it is one of the largest economies in the world.
30:33
And it reverberates around, ripples around the rest of the world.
30:37
So, but we did see a lot of the luxury stocks jump last week because they think that people
30:42
will be spending now in China, which is really, really good.
30:45
We saw the likes of Tesla do well because they make a lot in China.
30:51
Apple did well.
30:52
So, Lorda has done really well because, yeah, the beauty sector is like a lot of their
30:57
revenue comes from Asia as well.
30:58
So, I don't know.
30:59
There's just like all these flow and effects.
31:00
People were like, Oh, okay.
31:02
We thought it was going to be quite bad.
31:03
Like, even Nike who just spoke about they weren't doing well because of China now China's
31:08
got all the stimulus.
31:09
It's like, Oh, cool.
31:10
That's going to be enough at Nike.
31:11
Like, total knockoff.
31:12
Thinking of these companies, what companies will do well now because China's going to
31:16
do well.
31:17
But the government's coming to save the day effectively and which is great.
31:20
Great.
31:21
Great.
31:22
Great for the Australian economy as well, because they sell a lot of like steel element
31:27
and all of that.
31:28
Sure.
31:29
China.
31:30
So, yeah, all and all pretty good, but it's also you can't keep doing that.
31:32
You need a country needs to grow by itself because there are some money is going to run
31:36
out.
31:37
Yeah.
31:38
Everyone should experience for us class at least once in their lives and Annie shouldn't
31:41
miss out just because she can't afford it.
31:43
Help me.
31:44
I'm poor.
31:45
Have you had any like financial faux pas or financial flicks this week?
31:49
Okay.
31:50
So, just quickly, I've had quite the flicks back.
31:52
Right.
31:53
So, you know, it's a new season.
31:54
It's autumn.
31:55
Did a wardrobe clear up?
31:56
No, I was like, I'm going to make some money.
31:58
Let's do this.
31:59
So, just honestly, see the side of afternoon, posted everything on vintage, made 300 pounds.
32:05
Amazing.
32:06
So, I didn't think I would get anything for, so honestly put stuff up there.
32:10
Yeah.
32:11
Like, I saw a big puffage ticket that I thought I was honestly going to donate it.
32:14
I sold it, got 90 pounds.
32:15
You also feel really good because you don't like throwing it out.
32:17
And then I'm like, someone is getting a bargain.
32:19
Yeah.
32:20
And so, that is being such a huge win and I bought some new season, I bought like some boots,
32:25
which was a net.
32:26
Yeah.
32:27
So, it was like, look at me go, just that kind of, what is it?
32:29
Circular.
32:30
Circular.
32:31
Circular economy.
32:32
So, that was a win.
32:33
How about you?
32:34
I don't think I have anything.
32:35
I actually did that and that's also on my list to do this weekend.
32:37
So, I said a sign.
32:38
I'm like, these things are gathering dust.
32:39
You feel so, you're like, I'm amazed.
32:41
Look, you go.
32:42
That will be mine this weekend.
32:44
Yeah.
32:45
Cool.
32:46
Thank you so much, Shayna, for coming in.
32:47
I think so.
32:48
It might be out of the job.
32:49
No.
32:50
No, this has been so much fun.
32:52
Time really flies when you're having fun.
32:54
It does.
32:55
Thank you.
32:56
Bye.
32:57
Thank you so much for listening to The Curve Weekly.
32:59
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33:22
Bye.
33:23
See you next Tuesday.
33:25
Wow.
33:26
See you next Tuesday.
33:28
I mean, Monday.
33:30
No, actually though, new episodes out every Tuesday.
33:36
Okay, quickly, The Curve was created to empower and educate you about investing, but we
33:40
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33:42
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33:46
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