Latest / The Curve / Murdoch Drama, Lulu Karma & an IPO for Klarna.

Transcript

Murdoch Drama, Lulu Karma & an IPO for Klarna. · The Curve

• 0:00
  Okay, so I got dragged into this podcast against my will. I know I'm not Sophie and I'm not
• 0:05
  Vic. I'm actually Lucy. I run a company called Shit You Should Care About and I have been on
• 0:11
  holiday for the last month, so I'm really uninformed with the news at the moment, which is like
• 0:17
  the opposite to what I'm usually like. But anyway, I joined the girls on this episode of The Curve
• 0:22
  Weekly because I wanted my fix of the news and it was really fun mostly because we got to talk
• 0:28
  about succession and the media and money and those are three things that I really love talking
• 0:33
  about. You really should watch this podcast because it was kind of rogue. There was some really
• 0:38
  funny things mentioned in it. And also, I learned what the point of an IPO is. So if you feel a
• 0:45
  little bit stupid about stuff like me sometimes, you really should listen because you're not alone.
• 0:52
  And also, if you want to watch this full episode, you should go to YouTube because then you can
• 0:55
  watch us actually laughing together. And if you like my vibe, you can subscribe to my newsletter.
• 1:01
  It's Shit You Should Care About on Substack. Bye. No. Enjoy.
• 1:10
  Okay, this is very exciting. We have got a special friend slash new cohost in the studio. She
• 1:16
  didn't even know she was going to be on the block. It's a special friend. It's awesome.
• 1:21
  It's a very last season she talks about my boyfriend. Do you have any special friends at the
• 1:24
  moment? Have you been in any one that you like more than yourself? I'm like, never, never.
• 1:29
  Not even have a once. A special friend. We do the intro again. No, I'm embarrassed.
• 1:33
  Oh, no, I like that. But I love how you're like, oh, you're coming in and like,
• 1:36
  meet the team. Oh, we're actually recording a podcast now. I'm sure that I said we're going
• 1:40
  to record a podcast. And I asked you, hey, haven't been looking at the news. Like, what's the
• 1:44
  podcast going to be about? And you said, oh, she and your run sheet never did. No, I did. I sent you.
• 1:49
  Yeah, yeah. Okay, basically, I'm here. So we've actually had Lucy on the podcast before. We did
• 1:58
  an interview on Raising the Curve, which actually we had so many amazing messages about that.
• 2:02
  I feel like it also sprung the fact we were videoing that interview as well. You were like,
• 2:06
  is this video? I'm like leaning back in my chair like swing my dead.
• 2:10
  Yeah, she did go back and look at that. She's like leaning back in her chair like, yeah.
• 2:18
  Realized I didn't register that was being filmed because I've never filmed any of our podcast.
• 2:23
  Am I free and roast me now? Like Lucy, you look like you're sitting in a boardroom.
• 2:28
  Like I'm so good. Such big energy. You literally are going, I don't know why they make it
• 2:33
  so misdivine for us woman. Like I am wrong. So good. But the trailer, we've
• 2:41
  a cut together the trailer. Emily, I'm so good. I loved it so much. I usually hate and often
• 2:49
  don't want to publish videos to show you she care about, but that one I was like, I love it.
• 2:54
  So back to the, you know, economic research. But it was quite a mission to get here. Yeah,
• 3:00
  we've had with tube strikes in line right now. Oh, like actually a mission to get here. Yeah,
• 3:05
  I think you met like, sorry, it was a mission to get the smart and to become a really good economic
• 3:10
  researcher. I was like, yeah, but I've known as diminishing you that you really are.
• 3:17
  A mission to get here, literally. Yeah, it's been a tough life. It's been a tough life. It's not
• 3:24
  easy. But it's okay. I was for the people. No, we actually biked here in the pouring rain.
• 3:32
  And as we're biking here, I was like, because the tube strikes wrong. So everyone's getting
• 3:35
  ubers or line bikes and then now it's raining. So the traffic's like an absolute shit show.
• 3:40
  But that was like, it was pouring and that goes, I pay all of their pay rise. It's just not
• 3:46
  bike in the rain. I was like, it's kind of true. And it's kind of what they want. Yeah, it's
• 3:53
  chaos and London at the moment. Like basically, all of the tubes are down. So everyone's trying to
• 3:57
  either line or bus. The buses are there about to burst with people and there's no lines anywhere.
• 4:02
  It's actually quite angry. Yeah, there's a lot of anger. But I actually saw with the strikes
• 4:07
  that someone said that they're asking for like an extra, they're like, on 70,000 pounds a year,
• 4:15
  TFL work. It's like the people that operate the tubes. And he runs like, what the hell,
• 4:19
  why are you asking for more? That's like more than double the average salary of the UK.
• 4:24
  Well, do you have any kind of pounds as like 150 New Zealand, not New Zealand? That's most than like
• 4:30
  pretty much all my friends get paid that I know. I'll go to BS. I'll go work with the tubes.
• 4:34
  What I will say is I think that it's probably quite a traumatising job in a lot of ways. They're
• 4:41
  paid a lot because it is a really hard job, not necessarily. And it's not just about the pay,
• 4:45
  right? It could be like, you're with the underground conditions. They're like, yeah, one of the
• 4:49
  others, but anyway, but all I will say is 70,000 pounds would be nice. Let's all put in a pound each.
• 4:56
  Oh, yeah. And that can pay for when you get the tubes back open and running. Yeah.
• 4:59
  How long are they striking for? Is it a week? A whole week. Yeah, but I have to get to the airport.
• 5:04
  So I'm like, where are you going? It's at your pay. Oh my God, nice. I know.
• 5:09
  Really cheap holiday. Real cheap holiday.
• 5:12
  Is it expensive? I asked my flatmate last night who she's been. I said, have you been to
• 5:16
  centripe? Like, do you think I would like it? I was like, is it like mechanos? Have you been to
• 5:19
  mechanos? No, but I just went to Greece. Okay. Well, mechanos is kind of like the epicentra of
• 5:24
  like Instagram. It's a very serious steroids. Yeah. Like to put it in perspective, we went to
• 5:28
  me last a Greek island and a day bed was like 20 euros for the whole day. We then hopped on
• 5:33
  the ferry and went to mechanos and it was 150 euros for a day. Like that's the difference.
• 5:39
  Yeah, it's absolutely outrageous. But that's the difference of like most Greek islands to
• 5:43
  mechanos. It's insane. It's ridiculous. But anyway, central pay is apparently I was said to
• 5:48
  her. I was like, is it like mechanos? And they were like, she said, yeah, it's kind of like that
• 5:51
  except it was just more condensed and way smaller and all you really do is go to expensive restaurants.
• 5:56
  And I was like, why are you going? There'd be lots of long lunches and like, I can not afford to be
• 6:02
  there. Like I can't even look at central pay on a map. It's not within me. Anyway, there's like me
• 6:10
  with weddings. I can't afford to go to weddings. Okay. It is so weird that you bring this up because
• 6:14
  this is actually something we spoke about on the podcast a few weeks ago. Like they did that it's
• 6:17
  so expensive to be a friend these days. It's cool. And I've only been to one wedding and it was in
• 6:22
  my hometown. Thank God. But I actually said to my friends last night, I literally said this.
• 6:26
  We were sitting in London. No one get married. No, we were looking in the fields. And I said,
• 6:30
  I mean, we were sitting in the fields. And I said, any of you guys get married. Please,
• 6:36
  God say don't put me in your bridal party. And they all got kind of offended. It's not about you
• 6:42
  Lucy. And I was like, I know. I really don't want to be doing all that. I just think you can't say
• 6:48
  no if you're a bridesmaid either, right? You kind of have to say yes to the hymns,
• 6:52
  yes to the dinner before, yes to the lady. I just say it was, I was really proud and excited
• 6:56
  to be a bridesmaid. I had my debut as a bridesmaid recently. Yeah. And yes, it was expensive,
• 7:02
  but I was sold. Was that your first bridesmaid? Wow. Wow. Oh, sorry. No, I just say,
• 7:08
  no, I think it's more a fiction of like your age than your friends. Only three years younger than
• 7:14
  you. But like, I've only been to one wedding. Yeah, that makes me feel better. Oh, okay. Yeah.
• 7:18
  Oh, I don't think I'll be going to any. I haven't been invited to any more. No one might
• 7:24
  just get you married in my circles. How do you? When you see them? Yeah, you're like a bit
• 7:29
  pre the big bird. It's quite fun when you start popping off though. And you can just go and eat
• 7:35
  and drink and dance. Yeah. That's pretty fun. Anyway, maybe we should get to the news. I feel like
• 7:39
  we would say her and talk for a long time. No, one more thing. Before we got on this podcast,
• 7:46
  Sophie came up to me and was like, can I just fix you here? It's a bird's nest at the back.
• 7:50
  Sorry. Was that true? It's just the first time we've met in person. Yes,
• 7:53
  right. I did think that's really inappropriate to touch them. Oh, it's really vivid.
• 7:58
  You came up, she's like, let me just fix this. Can I just say it looks like like bed here?
• 8:02
  You know, like as in you're just, you know, like a 60 time. You've got a hair on you and they
• 8:06
  pull it and it's like, no, it's attached. Sorry. Sorry. Sorry. In my defense, because I was
• 8:12
  lying down watching. That's actually happened to book and I before. What? Sorry,
• 8:18
  I've had this. We were out of, we were about to do an event. I was already nervous because I
• 8:23
  don't like public speaking. And okay, you just, I actually know. And so I've had this like,
• 8:28
  it's like a mole on her face for the hair coming out of it. And I was like, oh, you've got to
• 8:32
  hear on your face. And I went to create and it was attached. And then I was like, oh my god. And
• 8:35
  then I didn't know. Do I just pull it out? Then it was. Oh my god. This is so awkward.
• 8:41
  Anyway, it was quite funny. It was not funny for me at the time. I was very embarrassed.
• 8:46
  Anyway, pointers. I'm sorry for touching your hair. That was important. No, pointers. It was fine
• 8:49
  because I was lying on my bed watching the summer. I took it pretty. So I actually did come here
• 8:53
  with a video. Anyway, news time. Sorry. We have a bit of drama speaking of great TV series.
• 9:00
  Succession. Have you seen it? No, I've watched parts of it. Oh my god. It's my favorite show
• 9:05
  in the whole world of what you're twice through. So it's based on the Murdoch family,
• 9:11
  Rupert Murdoch's empire and his children. So he owns Fox News. So it's essentially a Australian
• 9:17
  company. Sorry, an Australian family. Yeah, they now kind of live all over. But they're like,
• 9:21
  they started out in Australia. They also own like the Times in the Sun in the UK.
• 9:26
  All street journal, HarperCollins, like massive, massive, massive, medium empire. Super conservative,
• 9:31
  like Rupert Murdoch is like trying to save the conservative voice for white people.
• 9:39
  Yeah. So anyway, is it based on him or is it, or is it, it's not reality TV? It's not reality
• 9:47
  TV. It's not about his actors. There's Macauley Culkins younger brother. Yeah, Karen Culkin,
• 9:50
  he's amazing. But it pretty much is like based on the succession plan. So who's going to take over?
• 9:59
  It's called Wastow Roiko, but the real life one is like over news court.
• 10:04
  News court. Yeah, sorry. It's like who's going to take over news court?
• 10:06
  As a succession. Who is going to be taken? Yeah. So anyway, and what's happened is that
• 10:12
  like Rupert Murdoch's super old. Yeah, it's like 90 tours. Yeah, like he's got
• 10:17
  carcass. So anyway, the children are like vying for who's going to get his fortune essentially.
• 10:22
  Is he alive in real life? Dole, he's 92. Yeah, yeah. But this started two years ago. So his estate
• 10:30
  said that all four children would take over the business and they'd have like essentially one vote
• 10:33
  each. But three of the children disagree with how the companies run. Whereas Loughlin,
• 10:40
  the kind of like poster child son disagrees with them. So anyway, he put Loughlin in his three
• 10:45
  of us one. Three of us one. Yeah. But they got kind of like equals year in the in the trust of
• 10:50
  the company when Rupert dies. But then he changed that to make it so that Loughlin wasn't
• 10:56
  charge of the company in any way. The other three children got up and arms and. But can I just
• 11:00
  confirm? So this is happening in real life? Yep. And it's being reflected in this TV show.
• 11:05
  Yes, it's been going on for like years and years and years having it. Yeah. So the show's finished
• 11:11
  now. Yeah. Okay. So this is now happening in real life. This is yeah. And this is all real life.
• 11:15
  So the reason for it now is finally being a decision made is that Loughlin is going to be in charge
• 11:21
  of the media empire. And the three children are not going to have any say, but they get paid
• 11:27
  $1.1 billion each. So it's. So it's a win for the kids that don't have to then run the company
• 11:35
  because they just get 1.1 billion. A billion dollars each. And Loughlin's like Rupert's like
• 11:40
  little conservative public dog son. Whereas James, one of the sons called Rupert a misogynist
• 11:46
  in the press. Nice. Yeah. And so if their state wasn't changed, then all four children would
• 11:51
  get equal say and that's up the three that are, you know, quite and quite more normal. Yeah.
• 11:57
  Would have ousted Loughlin and changed the whole media company to be less. So that's why Rupert
• 12:03
  was like, you know what? I'm going to put Loughlin in so that they don't have that say. I'm going
• 12:07
  to change my estate to give him more power. But then the children were like, hang on a second.
• 12:12
  You can't do that because we are, you know, beneficiaries of this trust. Anyway, so it got really,
• 12:18
  really messy. But imagine, like, here's it passed away yet, but like, imagine your children fighting
• 12:25
  out in court for your empire. I know. You're money. Like, I would just be like, I feel like,
• 12:30
  no, you can have it. Yeah. Same. I'd be on my deathbed being like, like, this is not what I wanted
• 12:34
  to leave. This is not the legacy. This is not like people fighting over my money just seems so.
• 12:40
  But I reckon it would Rupert Murdoch would want that because it would be like a power trip right
• 12:46
  until the day he died. I was just looking up. I wrote a news that are on this yesterday. Oh yeah.
• 12:50
  So court documents revealed that Rupert had a project called Project Family Harmony that I
• 12:57
  aimed to quietly cut his other kids out of the decision making and hand the kids over to Auckland.
• 13:02
  But they call the project Project Family Harmony. Like, if you have to set up a project called that,
• 13:08
  you have no family harmony and you're not going to. It's funny. We did a podcast we recorded the other
• 13:12
  day about how money like can actually be really, you know, toxic. And it's all about the flow of
• 13:19
  money and the energy and like, all of this, we haven't released it yet. But it's, it's so sad when
• 13:25
  you see money having such a negative impact on a family. Like, he's effectively lost
• 13:30
  relationship probably many, many years ago. But, you know, with his three children, all because of
• 13:34
  money. But I can't just imagine you're dying wish better like, believe your kids. Yeah.
• 13:40
  Do you know what I mean? Well, I guys just so you know, I didn't love you as much. Like, it's pretty
• 13:44
  full of. Yeah. And that is like the premise of succession. I think he'd love the show.
• 13:50
  Oh God, it's a good show. Yeah. I also think you should rewatch it like start. Yeah. I don't know
• 13:55
  why I just told off and not. It gets better because it gets more into like the deal making. Yeah.
• 14:00
  Who's going to buy the business and they buy all these other media companies. I just feel like it's
• 14:03
  up your guys, Ellie. Yeah. And the lock, the guy is going to be taking over. As he earning 10
• 14:10
  billion a year, is he earning the same amount as the kids that are not doing anything? Well,
• 14:13
  the kids aren't in the business. No, but you know, you said they get one billion or something
• 14:17
  a year. I just don't do anything. What's Locklands, you know, with it? It's so interesting.
• 14:22
  Well, it's like, I'll just take the money and go start my own company with the billion dollars.
• 14:26
  So he'll become the sole decision maker of the trust, which controls Fox News and News Corp.
• 14:31
  So he's probably control over the media, the entire media empire. But I just mean financially,
• 14:36
  like if he doubles that, you know, if they share price doubles and the business doubles in value,
• 14:43
  then his stake in that will be worth billions and billions. So effectively,
• 14:47
  the other three children are probably like, you know, what 1.1 billion is enough for like,
• 14:54
  it's not worth the fight of, you know, turn around this media empire and get double that,
• 14:59
  you know, like, let's say, sorry. So basically, those kids are getting one billion.
• 15:02
  And they've got nothing to do with the company anymore. And right, whereas he, because he,
• 15:06
  essentially, he's inherited this asset, this ginormous asset. But they're like, thanks,
• 15:12
  be quiet, sit in the corner, is the 1 billion. Yeah. They're kind of like, we want to fight this,
• 15:16
  because we want this media empire to be less right-wing, and we want to take control of it.
• 15:21
  How cool that they are. Well, how much would it be to shut you guys up and get you out of here,
• 15:25
  essentially? Yeah. I wonder if that decides something to be like, they weren't going to go and start
• 15:28
  a rival. Yeah. So sorry, can we just say of the fact that all four of those were offspring
• 15:33
  of his, who obviously are, you know, have been brought up in a really right-winged
• 15:38
  conservative family to think that three out of the four are like, nah, if you, we can do better,
• 15:44
  this is a shit on humanity. How much better would it be? How much better would it be if they
• 15:48
  actually won? I know. And turned around. Fox News. Fox News. To be politically agnostic.
• 15:54
  Anyway, good for you, Lachlan. We got a good show out of it. So, yeah. Also Lululemon,
• 16:01
  oh my goodness. So I actually took a little hunt on the stock. I know this is not what we teach,
• 16:07
  but it's shares are down. It is the worst performing stock in the S&P 500. Like it is,
• 16:13
  it is number, do you know the S&P 500? So it's the top 500 companies in the US. Yeah. And it is
• 16:20
  the bottom, like it is number 440, it was actually probably number 500. Like it's the bottom, bottom,
• 16:25
  okay. And because it's done so, so, so, so, so, so badly. Anyway, they had a result out this week.
• 16:31
  And I was like, you know what, this company has done so badly, you know, the likelihood of it
• 16:36
  it can only go up. Yeah, I was like, okay, like it can't be that much bad. It's so,
• 16:41
  I mean, it's so much bad news is already kind of priced into the share price. So I took a little
• 16:44
  punt and I was wrong to do it down again. But you know what, it's like kind of like it wasn't a
• 16:51
  lot of money. And I was just like, you know what? But what has happened to Lulu Lemon? Because I
• 16:55
  just feel like they, yeah, it's such a heyday and every look would be like a Lulu Lemon bum.
• 17:01
  And now you look everywhere. And it's like, do you know what I mean? Like, it's competition.
• 17:05
  And then we have a little Lulu Lemon sign. And now there's just like, Arlo and Dala, like all
• 17:10
  these are Tala, these different brands. What do I just call it? Dala that, that girl. What are you
• 17:14
  finding name on? No, no, no, no, what's it called? And Dala, Dala, Dala, Dala, Dala, the
• 17:20
  little one phrases. It's like, I just don't understand how, so it's such a nose dive. Because it used
• 17:28
  to be quite a good company. And it wasn't that long ago. Well, I also, I think there's a function
• 17:31
  of a few things. So like, yes, they were kind of riding this way of Estella, you know, when everyone
• 17:38
  was kind of leaning into like wearing business pants to work and shit. And COVID and you know,
• 17:44
  all of that health and wellness. And then everyone was seeing how good they were doing. And so all
• 17:48
  these other little brands started popping up with slightly better fabric and slightly better fits
• 17:53
  and slightly better, you know, marketing. And Lulu Lemon just got a bit complacent. And also,
• 17:58
  have you been into one of these stores lately? No. They've just gone so rogue. Yeah. Like,
• 18:04
  you can only sell so many yoga pants, right? So they've gone into more like streetwear and
• 18:09
  it's just five. And there's now like memes on TikTok of, what's that song? Nobody
• 18:15
  wants me quite like you. And there's just empty stores and the girls are just dancing around
• 18:20
  the stores because no one in them. It's quite sad. Yeah. Do you know what though? Like, the normally
• 18:24
  the first one is like the first move of advantage of like Uber, for example, you can appear like,
• 18:30
  I don't know, lift and all the other randoms. But then there's also like other situations, right?
• 18:34
  Where you've got like the hero brand that came out first, generally it's pretty hard to
• 18:40
  mess that up. Yeah. The first move of advantage is so huge. And I'm just surprised that they've
• 18:44
  had such a fool from grace. And I think it's your spot on. Like, if you think of like the Nike's
• 18:49
  of the world, right? They're constantly innovating to stay at the top. They're spending like
• 18:53
  billions and billions of dollars on research and development and like sales and market
• 18:57
  you know, like to make sure that their product stays at the top of its game. Whereas when you start
• 19:03
  getting into the cycle with Lululemon, your sales, you're not getting the sales. If you can't
• 19:07
  spend as much on you know, research and development innovation. So therefore your sales get
• 19:11
  it's kind of a spiral of death. Damn, sorry. I don't realize how it's so bad.
• 19:15
  Spiral of death. Sorry. I mean, but you know what happens when share prices fall, don't you,
• 19:21
  so? Well, no wait, wait. Okay. If someone was to say to you, Lucy, if you were to think of a phrase
• 19:27
  that was talking about a company that's doing so, so badly and the share prices and then the
• 19:33
  the three words you're looking for is actually, I won't tell you, there's three words. The share
• 19:36
  prices make up what you think it would be. The share prices done so badly that the shares are
• 19:45
  chicken nuggeting. I mean. So this thing that this is a phrase that Vic always says
• 19:51
  because that's from that TV show about GameStop. Oh, no, it's good. Oh my god, that's quite clever.
• 19:59
  So it's not that. I mean, the phrase is the share prices on its knees.
• 20:04
  Oh, you're even as so sexual. Yes. That's why there's a lot of companies on its knees. I'm like,
• 20:09
  well, maybe. Does that cause I don't do anything to get back in this? Well, all the share price
• 20:13
  could be giant. Well, it makes me think. All the share prices could be gyrating. You know,
• 20:17
  I'm like, up and down. It's also sexual finance. What is gyrating and actually
• 20:21
  rating share price? Yeah. One of you guys should write about this. Why is the language that we
• 20:28
  use around share prices? Oh, have you written about this for the group? That's so funny.
• 20:32
  So the phrase is the share prices on its knees and the sharks are now circling. Yeah. So that
• 20:38
  means like it could be, I don't know, maybe a Nike or maybe a, you know, because like when
• 20:44
  someone's in trouble, you're like, I'm going to buy you. I'm going to buy you for like a billion,
• 20:48
  even though previously you were 40 billion, or whatever. Yeah. It's opportunistic. Maybe one of
• 20:52
  the murderers could get in there. So I'm thinking they've got one point, one billion now.
• 20:56
  Imagine just buying little lemon. I don't know if that's a great investment. No,
• 20:59
  I mean, you could like turn it around or like integrate it in part of a bigger company,
• 21:02
  or whatever, but yeah, I think it's all that take it back from 499 of this and be 500. Like,
• 21:08
  there's a lot of people though that have like egos and stuff or companies that think that they
• 21:13
  can. I guess this is, and this is what I find interesting. It's like the people that would buy
• 21:18
  Lulu Lemon at this point. Generally, it would be someone like a Nike or someone that has a similar
• 21:24
  ish brand or company because then they can like, I don't know, maybe they buy it purely for their
• 21:28
  factories or they buy it for their, or you get like a, like we spoke about a few weeks or like an
• 21:34
  activist investor that's like, look, okay, you need to get out of Australia New Zealand. You
• 21:39
  need to get out of the UK and focus on the US. You know, like they kind of rejig it and make it
• 21:45
  way more profitable, but I don't know. An activist investor is basically when someone comes in
• 21:50
  and it's like, I'm going to throw all this money and maybe they have like two or five percent
• 21:54
  or whatever. And then the whole point is as soon as you have a certain amount of shares,
• 21:58
  you technically can demand like a board seat and blah, blah, blah. So people sometimes invest
• 22:02
  in companies to then be like, I don't know how to run your business better than you do. And then
• 22:06
  they go and they do all these things and they're like, yeah, so it's quite, it's quite like,
• 22:11
  it's funny because the night lifestyle is like, it seems opposite of hostiles. It seems like
• 22:15
  Grittitum Boog's going to come in and, yeah, yeah, yeah, yeah, yeah, okay, we're going to save the
• 22:22
  planet with Lulu, yeah, but no, okay, tonight, yeah, it's opposite of that. Yeah, it's opposite of that
• 22:26
  anyway, but yeah, it's cool because of competition and tariffs. Oh, you don't want tariffs.
• 22:31
  If they've been like white and affected by tariffs. Yeah, yeah, they, yeah,
• 22:39
  nice. They have. Thank you so much for that. Yeah, I'm excited. They
• 22:44
  yeah, moving along American Eagle. Moving a lot, yeah, maybe they just need a Sydney Swini
• 22:50
  to come along. Yeah, that's how you say it. What are you talking about?
• 22:55
  Isn't that a milkshake brings up the boys in the yard and they're like, it's been,
• 23:01
  speaking of music. Nice. Very good. There's this thing.
• 23:09
  Speaking of music. There's this rise and what they're called, what they're calling
• 23:16
  bowie bonds. So like, you know, David Bowie, he came up with this concept, but essentially,
• 23:21
  the big Wall Street investors are investing in musicians or music. So they're like
• 23:27
  lending musicians money to create music and then they get a percentage of their
• 23:32
  royalties over the next few years to pay back their debt. So if you think of a bond,
• 23:39
  a bond is like, I would lend you money to go and build a building and then you pay me
• 23:45
  five percent interest while you borrow the money and then you build a building and you go back to
• 23:49
  a year. It's like an IOU, but with interest. So it's like, yeah, it's like, you borrow money off
• 23:53
  someone and then you pay them back their amount and later date with interest. Okay. And so that's
• 23:58
  what people are doing this with music. I don't get it. What do you mean with music? So if I went to
• 24:03
  like a Wall Street investor, so I think like, you know, private equity company, and I was like,
• 24:07
  I really, I'm an artist right now. I'm an artist. Yeah. Yeah. Yeah. Yeah. Yeah.
• 24:14
  I'm kind of sort of great investment. She would be. Yeah. But she doesn't really look. I really want
• 24:19
  to grow my music career. Like, I've got these really good tracks. I need some money. You might
• 24:24
  have heard one until I need some money. No, this is pretty. Yeah. Yeah. Yeah. Yeah. So this is,
• 24:32
  yeah. Um, curly heads. Yeah. Okay. Before she stayed in the one. Yeah. She's probably
• 24:36
  dating Joe Jonas. Yeah. Yeah. Yeah. Yeah. Yeah. Between Joe Jonas and like, um, Jake
• 24:40
  Jellin Hall. Okay. Yeah. Yeah. Yeah. Oh my god. I forgot. She did a Jellin Hall. What?
• 24:45
  All too well is about. Is that about read album? Yeah. Are you joking? How did I not know that?
• 24:50
  Yeah. You have so out of the loop. Oh my god. I haven't even a taste. I'm scared. That's so sad.
• 24:55
  I love that song. That's made me cry so many times. Yeah. I said about him. Yeah. Whoa.
• 24:59
  I lay on the ground of a flat that I was leaving once and pulled my eyes out to that song.
• 25:03
  It's just such a good song for a breakup, for a new relationship, for like any, any situation,
• 25:07
  you know? Yeah. I've been like walking and being like, oh, and then I've been walking
• 25:12
  back crying. Yeah. It's my conscience. Anyway. I can't. Okay. So tell us this is good. Yeah.
• 25:16
  I go and I borrow some money from these investors. Mm-hmm. And they're like, yeah, cool. We'll give you
• 25:22
  a hundred million, but you've got to pay us back five percent. And then sorry, you've got to pay us
• 25:27
  five percent to borrow the money. Yeah. And we, and I'm like, oh, shit, okay, well,
• 25:32
  you can just have a percentage of my royalties for the next few years. That's, and that's like,
• 25:36
  so you don't need back someone that you think it's going to break it. But what this is saying is
• 25:43
  like how, firstly, like how innovative investment products are giving. Yeah. They really think
• 25:48
  outside of the box. Yeah. So what used to just be let's invest in the warehouse or like some random
• 25:53
  company, people are now investing in NFTs and all different elements of kind of intellectual
• 26:02
  property, right? It's like, how can, if what is going to be a success or thing or product or
• 26:07
  good or service or something, it's going to be a success. And how can I make money from it?
• 26:10
  And I think it's also how accessible music has got. Yeah. And like, so these companies will get paid
• 26:16
  essentially whenever you stream, you tell us about song or whatever. So you know, they
• 26:20
  then they get paid real royalties and that goes back to them. So like, I think because music is
• 26:23
  so much more accessible as well, that's also played into it and being like, wow, they're actually
• 26:29
  it's much easier to get royalties, I guess. Yeah. What I find interesting is like,
• 26:33
  can you imagine a private equity firm deciding if they think someone's music is going to be good or not?
• 26:39
  That's crazy. Yeah. Like how on, surely the people in like, like consultants, yeah, they'd be like
• 26:46
  experts. But it would be like investing in anything, right? You have an expert in that area.
• 26:51
  Like if you're investing in hospitals, you have an expert that knows, like all of that industry
• 26:56
  and the trends and everything, exactly the same. You just have a, like, research pool being like a
• 27:01
  music analyst. Okay. Like guys, I'm just doing some research. What's the like zaniest thing you
• 27:08
  can invest in? Is there a future where it's like, I put myself on some sort of stock market,
• 27:14
  someone can I'm five percent? Oh my god, that is so wild. Yeah. There's like athletes that
• 27:19
  have started to do it that you can invest in like up and coming athletes and then you get a
• 27:23
  percentage of that. So like there is things, I guess anything that increases in value, right?
• 27:28
  It's like, it's out of business, investing in people. No, but it's like invest in yourself.
• 27:33
  But I think it is like, it is when you invest in a business, like, yeah, if we invest in your
• 27:36
  business, we're investing in you in a roundabout way. It's kind of, yeah. What if we're all
• 27:41
  little businesses? This is like my episode, I think. No, we're all little assets. Yeah. Yeah.
• 27:46
  Because we all need money to grow the idea or the thing. Yeah. But then that's crazy. Your whole
• 27:51
  life, imagine if it was like your entire network at the end of your life is divvied up to all your
• 27:56
  investors and your whole life, like, you constantly have an imagine it was like on social media and
• 28:02
  people were following you and tracking you and if you were having a really shit work when you
• 28:05
  didn't make much money, your investors are going to work harder like blah, blah, blah, blah.
• 28:10
  Yeah. How do you have a weekend? You need to work harder. It's kind of social media.
• 28:15
  It's kind of what my life is. But it's kind of like, that's what our parents do, right? They invest in us.
• 28:21
  They put food in us. Sorry, that's really what they feed us. They put food in us. They feed us,
• 28:28
  they house us. They educate us, but they get in nothing and return, essentially. But don't you reckon
• 28:33
  they show this room? No, they're so excited. They get a damn amount of money when they aid it.
• 28:38
  That's what they're paying for. And that's what all this, like, the question mark around,
• 28:43
  like, aren't you going to bed lonely if you don't have kids? Who's going to look after you? It's like,
• 28:47
  oh, my investors. Yeah. Well, my investors are all looking after me. But the reason these are doing
• 28:51
  so well right now is that traditional investments like bonds are actually not giving us that much
• 28:58
  of return. So people are being innovative and trying to find different ways. But also,
• 29:03
  their royalties are so steady and predictable, because they've found that people don't stop
• 29:09
  listening to music, even in a recession. It is one of the last things that people will give out.
• 29:13
  Wow. That's what it's like. It's what Spotify's doing so well. Yeah.
• 29:18
  But what's their mark? Spotify. Yeah. Oh, my God. My recession doesn't kill art. Yeah.
• 29:22
  When people are sad, they make better art. Like, I know that's a horrible thing to say,
• 29:26
  but we should require artists to be tortured. I really disagree with that. So there's that,
• 29:30
  but then there's also like, yeah, people consume way more of it when they're feeling
• 29:35
  like the industry in general of art, probably if anything, booms when the shit's hit the fans.
• 29:44
  Yeah. And we need something we don't fund properly when the like, country's flush.
• 29:50
  We need more like of those recession-proof things in our portfolios, because we never know when
• 29:55
  it's going to happen, you know? So actually, investing in art could be a great investment,
• 29:58
  both for artists and for people's wallets. Yes. But imagine if you could look at your portfolio
• 30:04
  and you had Taylor Swift in it. Yeah. That would be so. Honestly, that would get a lot more,
• 30:09
  that would be it. I get a lot of people learning how to invest. Well, I think that's why she said
• 30:14
  she could buy back her music, right? Because everyone, all the fans, came to her shows, so she had
• 30:18
  all that money from touring. So then she could buy back her music, which is kind of cool,
• 30:21
  but essentially, you didn't invest in her. Yeah. But this is more private equity companies doing
• 30:27
  this. So it's like, you need an order to get some private equity, you need like to be
• 30:31
  quite wealthy. But, you know, these trends always start at the top, and they trickle down,
• 30:37
  that's down there. I think if there's a world in which we could be investing, because I think
• 30:41
  the reason a lot of people aren't interested in investing is because a lot of people don't care
• 30:43
  about BP or Lulu Lemon, or all of the businesses on the S&P 500. But if there's ways for people to
• 30:50
  make money and invest and stuff that they're interested in, that would get so much. Like most people,
• 30:56
  like you, it's like sports, for example, if you're into sport and you can invest in sports
• 31:00
  players, like someone who might typically never have thought of investing, because they're so
• 31:04
  on interest in business. I guess there's the risk though, if you're investing in an athlete,
• 31:09
  like they break the egg in and out. You know, like this is very low risk, well,
• 31:13
  ish. But if you did it with, you could do it with a high profile already artist. So that's why
• 31:18
  David Bowie, he, like this has been around since the 90s, but it's just gone mainstream now.
• 31:23
  So David Bowie does that with skin for, yeah, the Bowie bonds, and the SEPA.
• 31:27
  Oh, you are crazy. So there is about 4.4 billion of these bonds that have been sold this year,
• 31:33
  and there was only three million, sorry, there was only 300 million in 2021. So it's booming, holy
• 31:38
  shit. It's booming, booming, booming. Bowie bonds. And lastly, Clana, do you know what,
• 31:43
  Clana is only because I've heard of it, and then you said, by now, pay lighter and I was like,
• 31:48
  Oh, yeah. So Clana is massive over here, but whereas after pay is kind of more
• 31:54
  dominant in Australia, New Zealand, but yes, it's by now pay lighter company. And it has just
• 31:58
  IPOs, which means it's gone public. Nice. Nice. Look at that from succession. Nice.
• 32:07
  No, I don't know from the curve.
• 32:12
  Are you finding out what are IPO tools? Well, it's actually like IPO as we speak.
• 32:16
  Well, let you know in the show notes how it's done. Oh, right. It's actually really going today.
• 32:21
  Well, that's quite exciting. Yeah. But like sentiment around it, people think it'll do well.
• 32:25
  Yeah. So it's been valued. So the predicted price times the number of shares is like 15 billion
• 32:34
  dollars. So it's going to be a 15 billion dollar company. And put that in perspective,
• 32:40
  like a firm is another one that probably not that well known, but that's on the stock exchange
• 32:45
  at the moment. And it is worth 29 billion. Oh, my God. So everyone's like, this is bargain,
• 32:51
  like, and if we look at after pay that got bought out between 29 billion a few years ago. So
• 32:58
  everyone's like, this is a steal. And wow, everyone's thinking that it'll do really, really well
• 33:03
  when it does IPO. Where is it? Where is the IPO on the New York Stock Exchange? The ticker is
• 33:07
  CLAR. I get really original. I don't think it's a good thing that it's IPO at a
• 33:15
  bargain rate. Like, is it a good thing? So this is the whole thing with IPOs is that like,
• 33:20
  there's been a bit of a run of IPOs lately because, you know, back when we were in April,
• 33:26
  people or companies kind of paused IPOs because the market wasn't doing too well and you never
• 33:30
  want IPO when the market's falling. And now we're on sale. We're on sale, but everything's getting
• 33:36
  like dragged down. You're like, I like trying to survive. So you're like, you may as well do it
• 33:40
  when everything's filling euphoric because everything's going up. You're like, who, even if we
• 33:44
  should company will go up, that's kind of what was happening. So they were going to do it at the
• 33:47
  beginning of the air. They've paused it now, they're doing it later. So it's a much more buoyant
• 33:50
  buoyant market. Yeah. But a few IPOs lately haven't actually done very well. So Figma, you know Figma?
• 33:56
  It's not a lot. It's down 50%. Yeah. But what do you mean down 50% from when they bought it?
• 34:02
  Or from when they're from the IPO price? Yeah. It's down 50%. Yeah. So how does that
• 34:07
  have the website building company like? Yeah. It's like a visual aid for like designer. Yeah.
• 34:12
  Yeah. Yeah. Okay. Sorry. Yeah. Yeah. Okay. Yeah. Why? But sorry. When did IPO? A month ago.
• 34:18
  Because what would have changed in a month for the share price to have dropped 50% like is that
• 34:23
  anything except people just freaking out? So this is the thing. Like before you have an IPO,
• 34:28
  you want to keep like, if there's a shit ton of demand for your shares as a
• 34:34
  when your private company and you have an IPO diet, so you're still private. If there's a shit
• 34:37
  ton of interest, you don't want everyone to buy that. You want to like maybe maybe half of those
• 34:43
  people to buy it. So then there's another half when you buy it. So it's all strategy, right? So
• 34:48
  it's like, because if you give everyone what they want, they're not like, of course it's going to
• 34:53
  be down afterwards. So, but it's all very smoke and mirrors. And also there's like big bankers
• 34:58
  behind it that want to get the highest valuation because they get higher fees. So they're wanting to
• 35:04
  boost it up. So they will tell you, oh, no, no, no, no, no, no, this is like very oversubscribed.
• 35:09
  Everyone's demanding it. You know, so and then you don't really know when it kind of when you
• 35:14
  release it to the public, it's like, you can't kind of know and really not what happens because
• 35:19
  it's not the company selling the shares anymore. It's individual selling amongst each other.
• 35:23
  Right. So it's almost like this big show and then when it's released into the world, it's like,
• 35:27
  okay, what is the actual demand? And if it's cricket, you can't do anything to change that
• 35:31
  back. When you go out with the IPO, you can have a bit of like, but also, it's actually does
• 35:36
  really, really well on like day one, day two at first week. People are going to be like, cool,
• 35:40
  I've done so well. I'm going to realize my profits. So it's like, it's so psychological as well.
• 35:47
  It's like, you kind of a best scenario would be a company to do not massively well straight out
• 35:53
  of the gates that you want to do like kind of kind of well. And then you'd want to release maybe
• 35:57
  some good news of like, hey, we've actually killed it. And like, then more people will like,
• 36:03
  oh, actually, okay. So it's like way more slow and steady rather than like out with a bang and
• 36:08
  then people sell and then you, and then people will let yourself are going, why is it down 50%?
• 36:12
  I'm not buying you're and it's just, yeah, it's one thing I would say with IPO is like
• 36:18
  nine times out of 10, if you think you've missed out and it's done really well, there's a chance
• 36:24
  to buy it again cheaper. Like, honestly, the overall the success rate of IPO's, it's not.
• 36:30
  Don't get hungry. You're probably going to be hungry. Yeah. And I think even this headline
• 36:33
  and I'm saying to you and I'm like, oh my god, it was sort of subscribed and you know,
• 36:37
  it's valuations so low and it could be, yeah, like even that, I'm sitting there going,
• 36:40
  we'll still see what happens. You know, it's almost like the real estate energy.
• 36:44
  Yeah, do you know what I mean? It's like a real estate agent being like, welcome to the bathroom.
• 36:48
  Yeah. And then it's like, no, no, there's a buyer over here who wants to pay more, but they don't.
• 36:52
  Yeah. Yeah. Yeah. Yeah. I have two questions. Yeah. First of all, have you two watched
• 36:58
  industry? No. Industries like succession, but all about people that work and
• 37:02
  they all do drugs and they all think of each other and yeah, yeah. And it's British,
• 37:06
  like British succession meets, meets skins, but it's all based on investment firms.
• 37:11
  Have you seen it? Yeah. Second question. Why do companies IPO? I've never understood why.
• 37:16
  Yeah. Good question. So take one, for example, it could be that the founders
• 37:21
  have had shares for so long and they want to exit. So that's kind of why that's usually the
• 37:25
  main reason. The other reason is that there's a lot of employees with shares that they kind of
• 37:30
  have got along the years, like in the short course. And so does an IPO realize the value of those
• 37:35
  shares? It allows it creates a market where you can freely buy and sell. Yeah. So it's like,
• 37:40
  yeah, or you might have had private equity in there and there they're only got like five
• 37:44
  year time horizons. So they'll invest maybe in 2020 and they're like, you know what, we want our
• 37:49
  money out now. Yeah. They can either go and find another private buyer for those shares,
• 37:53
  which is kind of hard or they can be like, let's IPO and anyone can buy the shares.
• 37:59
  And they force you to IPO. Like if they've got a board seat, which they usually do, that they
• 38:02
  could. Wow. But it's usually like not a bad thing. You can also, if you need more money over time,
• 38:08
  it's a good place because it's an open market. Essentially, it's a, you've kind of,
• 38:13
  you've got this access to money. Yeah. Like yes, you've got the scrutiny of all these investors now,
• 38:20
  but you've also got an ease that you can tap into in terms of money. So it's because everyone's
• 38:25
  always so excited when a company IPO is and I've always wondered like, well, that was the point.
• 38:30
  It's because now we can all buy shares, you know, and we can be part of the conversation. Whereas
• 38:34
  before, we would never have been able to get shares in part. But it's also like the whole thing,
• 38:39
  like whatever their reason is, whether it's CEOs want out, private equity wants out, they have
• 38:45
  this new amazing idea and they want to build something. Yeah. It's essentially they need money into
• 38:51
  the business and there's so many different ways you can get money into a business. You can go to
• 38:55
  like private land is good, the bank, but the idea of being able to bring in or release and kind
• 39:01
  of have the flow of money back into the business. There's heaps of different reasons for it. But
• 39:05
  obviously, if people are buying shares, they then own the business, but they're giving that business
• 39:09
  money for the shares, which means money goes in. Once it's kind of like out there, then they're
• 39:14
  just trading amongst each other. Yeah. Yeah. Oh, right. So it's almost like initial like the initial
• 39:20
  example is when the company will get the money. Yeah. Because they're selling, they're selling,
• 39:23
  there's only time they're selling shares. Oh, interesting. And after that, it's you and me trading
• 39:27
  against each other. Yeah, they're so smart. It's like comic books or like little comics.
• 39:31
  At least, me as the company, like two years down the track, I'm like, oh, shit, we actually really
• 39:36
  want to buy Lulu Lemon. We need a couple of billion dollars. Then we go back to you guys and go,
• 39:41
  hey, do you want to give us some more money? We're going to buy this company. What's that called?
• 39:46
  That's like a secondary issue. That's when you issue more shit. But that's when that's why if I've
• 39:51
  got you guys just sitting there trading amongst yourselves. Yeah. And then I can be like, hey,
• 39:55
  we've actually got this really good opportunity. We don't have enough money for it. Do you want to
• 39:58
  give us some more? Yeah. But apart from a part from an IPO, that's the only time the company
• 40:04
  deals with, we deals with it's investors themselves. But that makes sense why they're slimy salespeople
• 40:08
  because they want to get as much as they can in the door for the IPO and they kind of don't care.
• 40:13
  It's also an ego thing, right? With becoming a public company kind of has this glorified,
• 40:19
  with made it kind of thing. But then you also have to keep the share price up. Otherwise you get,
• 40:24
  yeah, well, that's why I always wondered why the hell do people do it? Because it just seems
• 40:27
  when you go public, it's like, yeah, you also need to ring the bell and we work as doing
• 40:31
  amazing blah, blah, blah. And then it's like, oh, we've turned to shit. And now everyone knows.
• 40:35
  Like it would be so very much like, look at my naked body. And then you get some CEOs and
• 40:41
  founders get really caught up in like, oh my god, the share price is going down. But whereas the
• 40:45
  best ones are the ones that don't care about the share price and they just grow the business
• 40:49
  because the end of the day, the share price reflect how the business is going. So, yeah,
• 40:53
  it would be hard to get not distracted by that though. I can't give you a free day. I'd be
• 40:58
  waking up and being like, it's down. What have we done? It's stupid. There's over four years.
• 41:02
  But you also used to roll it, right? Like if we did, if we were public and the share price was down
• 41:07
  one day, that could be because someone needs to buy a new car and sell these shares. It could
• 41:12
  be nice to do it us. Do you know what I mean? So it's like, if you get too concerned about it,
• 41:17
  the tricks, yeah, just heat down, bums out and grow the business. It's a really good listen,
• 41:21
  because I've always actually wondered what is the point of doing an IPO. Well, I hope everyone
• 41:26
  listens to this. I hope you learn. Do we have anything else? No. And she's like, I have to go
• 41:33
  it. I think it's fun. Thank you. It's fun and the cheapest part of your up. Yeah, I will.
• 41:37
  Sandpicks. Is this how we ended up coming back and asking for a pay rise? This is chaos. What's the
• 41:41
  ending? I'm sorry. Do we not say thank you to the listeners? It's just, okay, she's got a
• 41:45
  catch of flight back. We honestly are a bit like that. It's like keg got to go quick.
• 41:51
  Have a good week. How would you end it if this was your podcast? Okay, guys, well,
• 41:55
  that's been a curve weekly. It was really chaotic and really glad to be here. Bye.
• 42:01
  That's beautiful. That was great. That was beautiful. That was beautiful for my special friend.
• 42:07
  Okay, bye. Thank you so much for listening to the curve weekly. Make sure you hit the subscribe button
• 42:11
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• 42:16
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• 42:21
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• 42:26
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• 42:30
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• 42:40
  Monday. No, actually though, new episodes out every Tuesday.
• 42:47
  Okay, quickly, the curve was created to empower and educate you about investing, but we are not
• 42:51
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• 42:56
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• 43:00
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