Transcript
We're live from the window is side of the Berkshire. Hathaway annual meeting, it's an all-new terrific, Tuesday edition of business pants, joined by just Ari the data Queen. It's just the two of us in today's who is Greg Abel anyway called March. May March stuck in March May 7th 2024, there's nuggets and a top five list. I really short one though. Yeah, I got five nuggets for you. You know, are you wrote nuggets for the first time maybe ever? Now, I've done it before. This is my best, I think. Well, have you done it one other time before? Yes, so that's what our listeners think, deep if we have. So those All right. Our show today is being sponsored by free float analytics. The only platform measuring board power connections and performance for free. If you're curious about your directors. Actually, if you're directors, actually generate shareholder returns or how big the gender power Gap is at a company, go to free flow analytics.com and sign up. It is free. It is free like all free people wonder how we make any money so to why it's free and how many directors are on that? Oh, there are well current directors. They're about 90,000 Corridor, 90,000 current directors across. What's that 9,000 companies? 9,000 companies getting more, you can look up any company. Basically that exists Yeah, go look it up. It's a little shocking. All right, let's get some nuggets going. I'm gonna start, I'm gonna do a few and then you're gonna do a few. And then I'm gonna do a few. Okay. Okay. Sounds very planned out. All right, here we go. in our, does anyone know if non-technical is a racial epithet headline of the week? Elon Musk says, there are too many non-technical managers at Boeing. Well, Elon Musk says that, that must be racial. Yeah, just so, you know, this, this is what he said about Boeing. Do you want to fly in an airplane, where they prioritize, the Dei hiring over your safety, that is actually happening? That's what he said about. So, and on technical must be somehow racist. Yeah, it's a wolf, whistle. I don't even a dog whistle anymore. in our, If I don't open my eyes it isn't real. If I don't open my eyes it isn't real. If I don't open my eyes it isn't real headline of the week. Notice how it was like rocking back and forth with your eyes closed. Yeah. The head of NASA says he trusts SpaceX because Elon Musk put someone else in charge. Oh boy, that's the head of NASA. Oh, we're in trouble. So this is the quote, Elon Musk. One of the most important decisions he made. As a matter of fact, is he picked a president named Gwen Shotwell Said musk. And, but this is what musk said about Gwen shot. Well, that in my brain, this is my imagination. Do you want to fly in a spaceship where they prioritize? Dei hiring over your safety. That is actually happening. Well, we know he's not prioritizing. The I know he can't be here SpaceX. He hired a woman to lead Twitter. He's just being smart. Didn't he? Isn't that like the woman? He hide. There's a woman. He hired to lead neuralink. Yeah, so when he does it, it's not DDI. But when someone else does it, it can only be only be what else can find Qualified women, that's what I thought. All right, I don't know. You don't listen to these very often. Do you know the Hamas? Yeah, the meatloaf thing. Yeah, well, this is. This is Damien spit but I'm stealing the bit. All right, what do you have in our? Hey, Ma Do we have any Oreos? I really need some Oreos know take this pill instead. Okay tell dad, not to buy Oreos headline of the week. FTC moves to allow generic versions of ozempic. Okay. Okay. How do we feel about this? I mean, they're gonna allow a generic of the biggest drug in the history of drugs. I don't know how I feel about any of it. I really want Oreos now. Okay, good. Well in our next headline, in our hey Ma I took the pill but I still want some Oreos. Tell Dad, get Oreos headline of the week. People will keep eating Oreos despite ozempic surge according to CEO of maker Mondelez. CEO of Oreos maker says like our drugs. Epic are drugs better. It's called Oreos. We got them hooked. You need an Oreo. in our, I'll bet you ten dollars my 6 year old soccer team kicks. Your six year old soccer teams ass. Of course it's legal. Soccer is a game of skill, headline of a week. Dave and Buster's plan to allow betting on our arcade games draws scrutiny. Here's the company that owns Dave & Buster's. Here's what they said. Lucas said, most of the Wagers across the software platform which allows you to compete. For real money in Friendly, competitions are on average about 10 dollars and size. Lucas said, the arrangement with Dave & Buster's, isn't subject to some gambling, regulations, or taxes that sportsbooks are because peer-to-peer bedding is considered skills. So, does that mean my six year old Combat on her own game? Yes, I think that's what it means. That's what it means to be 18, to be 18. Exactly skill base competition. This is the rise of the six year old bookie. But if I bet on my six year olds game, am I gambling? Well, you're not her peer, are you? That's true but I'm betting with another father or mother at the game. So that feels pure that feels like saying is very confusing to me and it's honestly You went to the game. Dave and Buster's I love Dave & Buster's. I'm excited. David Buster's kids, sorry again. Yes, I did last Saturday. It would have made it more entertaining if there was game, I didn't even need any money online. I'm just saying I was all in. Okay, let's wrap up mine. I got two more for you Stephen Buster thing. This is not like, they don't have an app where you can also play games on an app yet, the app is a, Dave & Buster's related app, where you bet on the game that you're playing against appear in like physically, okay, I believe it's at base, okay? David Buster's because FanDuel has like virtual arcade games where you can all so that? Can you actually tell me though? How was the average bet size 10 dollars? Like the game cost, two dollars to play, and you bet on the game is 5X, the cost of the game, it's all about the best thing it's entirely about the, but you'd only go, that's the fun. I mean, if you played 20 games, you would pay 50 bucks for games and 200 dollars for bets or you could win. That's bananas, that's bananas. In our, hey, has anyone seen where I put that Rhino, DNA? I, I know we'd killed them all with the mining and the hunting, but I thought I left some DNA lying around here just in case, it was in a yogurt. Container marked, Rhino DNA headline of the week. Should we seal DNA samples of Earth's endangered species in a Moon crater? Oh, this is Time Capsule. Is that real question that we're asking, should we send basically a species Times Capsule? Because we cannot protect them. We've destroyed them all. Yes. Okay, there you go. That's in a yogurt pot. I imagine. And then finally, until we get to re segments thank God, more fun Subway in our well, shit have we tried the Mayans know they're extinct. What about Vikings all? So extinct, do we leave any DNA in a Moon crater? We can use know, Okay, just sell some pork. Lattes in China, I guess headline of the week Starbucks is running out of Americans to drink its expensive coffee. I like the idea that Americans are going extinct to Starbucks and Amazon are running out of America. I know there was a story a while ago, that Amazon was running out of Workforce because if it's churn and now Starbucks is running out of people to buy its expensive drinks. I mean they keep getting making it more and more expensive. It's not only is it more more expensive? But there's a Starbucks everywhere. Yeah, every corner actually. I have to confess something and I'm I'm embarrassed by this. Did you go to Starbucks today? No, I did not. But when we went to Tokyo, The only place open when we woke up at like four in the morning because we were on some other time zone was Starbucks. So we ended up eating Starbucks like every morning in Tokyo. He's the only thing that was a kingdom breakfast. I guess is that it really what we're saying? All right, you do some of these? All right I got you an hour. We definitely absolutely without a doubt never ever set up women and most certainly not black women to fail. I don't believe that headline of the week, president of ABC, News is leaving after three years. Wow, Kim Goodwin Godwin Goodwin. It's good one. But with one, oh, I think it's Godwin. Okay. But I, but I remember Damien covered this was at a time when like, it was all women leading the networks. She was one of the women when all the women were really. Yes, she was. Yeah, but you know, she got brought in to shake up the culture of the Disney owned, ABC news, or after allegations, and investigations of races in an appropriate behavior. Because of course the black women can fix all of this. Yeah, it's all takes. It's all takes. In our, Let its Levy Osa. Not levio saw headline of the best. That's like a Hermione Granger deep cut, that's a Millennial, where are millennials at? Wave. Guys, start up for autonomous vehicles races one billion dollars the London. Based startup isn't doing that silly. I know Damien has trouble with this word. I did narrative generative AI, it's doing embodied AI, it's not Leviosa. It's totally different. And SoftBank, Microsoft, Nvidia know this difference, and they threw them a ton of money. I can't a billion dollars, which is not that usual for European company. I can't believe SoftBank is doing it again, though. Again, embodied AI. Yeah, that's what it's all about that in our it's a group project. But only one kid does everything headline of the week and I know you're gonna hate this one. I'm sure. Tesla leaves the expansion of EV stations to others. well, just they weren't doing the work there. Well, they were the only car maker doing the work for themselves but it was other like, you had State. You had some like Federal subsidies. In fact, Tesla took 17 million in federal subsidies to expand the charger. So there was one standard and then fired the whole team and left it to everyone else. So good on Tesla, they made 17 million without having to do anything. Well, now, everyone else is gonna Pick up the EV expansion. Yeah, one kid does everything that group project, man. That was me. I revolted one time. and our What I thought this is what they meant by going. The extra mile working hard bootstrapping headline of the week. Qantas reached a deal, to pay a 79 million dollar, fine for selling, thousands of tickets to flights that it had already canceled. Yeah, I mean that's so creative. Well, I mean like they did that in 2021 2022, they did the first entire year. They did it for a while. At actually, what's impressive is that it's only a 79 million dollar fine. Well, it's Australia. They sold thousands of tickets flights that have been canceled. Yep, some of thousands. It said that it had been there for, you know, a month that they did this throughout a year for flights that had been canceled a month in advance and they were still, you know, selling the ticket deal. Yeah. And finally from me in our, I hope no one else suddenly dies this week. I don't like this headline of the week. Boeing gets new inquiry over work on 787. That's right. I saw that the FAA is investigating Boeing. After a recent disclosure that Boeing Employees may have skipped some inspections on the 787 Dreamliners and falsified aircraft record. I'll have more in that. Does it doesn't get worse. Oh, you did this one too? Well, I did two of yours but but don't worry. You're jokes were funny here. Oh, thank you. Thank you. All right, let me wrap up the Nuggets, which is a couple more. In our, this is just a few bad apples. Our team caught the issue and gave the CEO of 45%. Raises a result headline of the week Boeing says employees. Falsified 787 Dreamliner inspection records as FAA opens new probe, here's the information about this. The engineering team had assessed that the misconduct didn't actually create a quote immediate safety of flight issue when they say immediate like we've assessed it it's not immediate that feels terrifying to me. Yeah. They're saying, oh, okay. Then be good for, you know, maybe 100 more flight. Yeah, we don't know that for sure. A lot of the sky probably now, but just wait, because this is what wasn't inspected. They they, in fact, Boeing confirmed, this they may not have completed required inspections to adequate bonding and grounding where the wings join the fuselage. That's where the wings connect to the plane, right? I'm not misreading that. No. So they didn't inspect the place where the most important parts connect to the other most important part. But don't worry Dave Calhoun they did announce a 45% pay raise for Dave Calhoun good thing cuz he's leaving soon. He's got to get those in there in our so, resume that you're actually choosing yourself for this position. That's interesting. That's excellent. Actually, it also says that you have skills and falsifying inspection records and staying laser-focused to avoid quality escapes. This is great. When can you start headline of the week, top Boeing executive weighs in on qualities? The next CEO should have as the search for a new boss, takes more twists and turns a team player. That's a real team player. Yeah. I mean, I love the idea that they anybody at Boeing should weigh in on what the CEO should be. Like, should I actually, I know where are they? They don't matter. They don't matter. It's true. And our, if the plane was a Boeing, it would have been Boeing's fault, though, right headline of the week, I just had to include this, a passenger had their flight ticket canceled after trying to smuggle a bag of snakes in their pants past the TSA check, oh my God, what was this important? Yes, it was. It was in Miami and it was a bag of snakes. He shoved snakes into an Oakley eye glasses, like little like container thing, and put that in his pants as pocket in his pants. Okay, well at least Tuesday, you know, they're they got their eyes open but I really wanted bowing to be involved. I really was somehow wanted to be it was on a Boeing plane. In our this is like a whole bunch of plain ones. I got another one coming up, two more in our. We literally just figured out the flying the plane part. Now you want us to give you your money back for not flying it. Jesus pick a lane headline of the week. Airlines played Tech failure after government orders automatic refunds for wrong Travelers. So you covered this in goodletts, the airlines are now, saying are the tech doesn't work. I believe them. They're attack is worse in banking Tech. Well I mean Banks their whole thing is like moving money around. Yeah. And they have supposedly the worst tuck cover but this is I mean when the government tells you issue a refund and there's your life, I'm sorry. We don't know how that's shocking like you've done it before like you must have a way how when you go to the counter and then they print you know whenever they print a thing and it's like it has a paper with a whole. Yeah you can rip like that is the 1920s here. That was a joke. Not actually. and finally, in our Biz nuggets for today in our said continuing board chair, Richard goiter asked Vanessa headline of the week, Qantas to pay 79 million for selling tickets on canceled flights. Vanessa, Hudson is the new CEO. She's the glass Cliff CEO. The glossiest of glass. Cliff, CEO. And Richard goiter still there. What is he doing? He said he was gonna stay until the next AGM, because he's so useful. All right, right, right. Right. And overseeing stuff, right? This is the Calhoun way. That's the girl, who way? I like that. That's it for our business nuggets. Let's move on to our top five list for today. I kept it short and simple. All right. Because we got things to do, places to go top five list today. Us large cap companies with the most connected directors, Do you want to talk about? I added one caveat to what is connected. But do you want to talk about the definition of connected here? Sure. We look at The 80. Well, historically, we have closer to 200,000 directors. And we're at the, what companies they have sat at and the timeline of them being a board member and We do like okay. Well Johnny spent time with Jane at this company and we go on and connect people that way, it's a web, it's the web, it's the Social Web Social Web and we look at it within two degrees, right? We look at it within by saying if you know, somebody directly call them or two phone calls away that's you know, someone directly you're one degree away. If it's a friend of a friend, it's two degrees away friends. Friends. The only caveat I added here is we all know included inside. So I said if you're an Insider, you're connected, right? Like to. So these are the top five us, large cap companies with the most connected directors, starting from number five, Colgate Palmolive. 10 person board. 80% of the board is connected inside, two degrees, and two of the members are insiders, right? So, Go way back. That's a very connected board. Yeah everybody on that board mostly knows imagine being the other two like you're like I don't know you guys but we're the independent ones that's a majority. Here's number four, Verizon communications, a 12-person board 83% connected there's only one inside or on the board that is the CEO who was taking spreadsheet notes of his mood every single day which is the greatest thing ever. But good to know 92% of the board that isn't the CEO of Verizon are also CEOs from somewhere else. Oh wow, it's really. It is an all CEO board from when you started at 5 it was 80% connected? Yes, number five was 80% connected. Just wait until we get number two and one number three General Motors 13 person board 85% connected. 15% of this board went to the same school. Is it somewhere in Michigan? I don't know. I didn't even look at the school, Chicago, it might be actually Detroit all Detroit schools. Um, number two, on the list Target, a 12-person board 100% connected. Through other boards. Target can do no wrong. 100% connected Can 70% of the border is 83% CEOs and 17% went to the same school. Does it get more incestuous than, you know, everyone on the board either by being at the same company is them going to the same school as them being connected to them on other boards. That's a lot and that's number two. Yeah. Does it get more than 100? Number one is 100% connected. Carnival corporation on the 11-person board, 100% all. So on Carnival But it got, I made them number one because it was a tie because they're 27% Insiders on the board. 27% more than a quarter of. The board is actually working at the company, has worked for the company or has material transactions with the company, that would make them all compromised. So even if they were in Connected some other way, yeah, they are. You know they probably all going crazy with each other. Yeah, that one we don't have that data point though but I will say this. And to end the show because that's all we got, we don't have time for more and you're not listening anyway, but we just Are running tests right now. On board knowledge skills right skills, we have mapped directors skills that we've estimated, we can based on where they've worked before places that they worked Industries. They've worked in and we now have a map of 80,000 directors current directors with their potential skills. It's in a beta phase but we're real close. But think about it. What type of skills would you like directors are Carnival Corporation to have? Yeah. Do you want them to have a lot of math skills or you want them to be really good at sales and marketing or how about International Trade complaints? I don't know. That's not one of the skills I have but that's good. That's good. We are free. Float will be back on. Thursday with a proxy countdown assuming Damien's back Damien's. Like ill or jury duty here. Yeah. I think it's supposed to be like, highly confidential. Yeah. It will be back sometime. But Thursday, we got another proxy countdown scheduled on Friday. We gotta wrap of the week until then, Goodbye.