Transcript
From the titillating Tuesday, Thunderdome. It's an all-male edition of business. Pants. Oh. I don't always buy truly lurking. And Matt huddle mascardi. I took off my hoodie for you, Matt. Oh, but you had it in the script that you were gonna wear the hoodie. Things changed in today's old fashioned bag of 16th century nuggets called May 17th 2022. We take a trip down memory blowhard lane and Muse about our BFFs the stock market Kimball's brother CFO FIB tellers. Oh we we also have live updates from Ari and Emma. Where are they? Where are you and Emma are at the representing free float? At the S&P, Global sustainable one Summit. What if you call something like no one wants to go to a conference anymore but they feel really good when they show up at a summit. There's something Global sustainable one Summit. That's right. So there's summoning right now which I am matching means they're at the top of something and that's where they are, and they're going to give us live updates. Actually, we have a live update right now. If you're at the conference, you can go find them. Here's the first live update from Ari and Emma, here it is. Hey, Ari, hey, Emma. So we're here at our S&P conference. I'm in New York. Yeah. And what are your first impressions so far? Well. I don't know about you, but that first panel. I think half of them were very monotone and very boring. Ouch, did other people tune out. I don't know, there was one guy who was dropping some interesting stats. About how the state of New York is working towards. Neutral, carbon neutral carbon neutral. Future Emily chews on this panel, too, and she talked time. Yeah, we missed her. We want her to talk more. I thought she also looked bored. I'll talk to Emily later. But yeah, that was about to start. I'm hoping it picks up later today. Me too. Was your other conference more interesting than this? Yeah. It was a little bit more lively. Yeah. Like we also sort of got yelled at early. Yeah. This lady really wanted us to sit apart from each other and we said, no, we rather stand and she just looked at us like yeah, the other thing that I'm noticing in this at this moment time is that we are two a very few people here with curly hair. The woman who seems to be like running the conference. Yeah, curly hair. And every other woman that does not. You think we all get blades. That's what I'm wondering is the New York City blowout? I don't, or just like a finance. Oh, I feel like in order to work in this space, I would also frequently. Anyway, I would also feel the need to get my hair blown out. Yeah, my hair is really frizzy right now. Mine is in the tightest bun possible, so that I can ignore the fact that my hair is bad right now. Okay, all right. That was it. That was it. That was a play. The real clip. Now where's the real flip? I first of all you do not get caught content like ESG hairstyles, anywhere else conference might be the only time I've heard content from a sustainable one Summit and not falling asleep. So there's always, there's always that winning. Let's do some real news. What, what do we have for news? All right, let's take a trip down below. Heart, Memory, Lane back in the day before, Emma start looking with us. I used to find a nonsensical blow Hardy, stock market, e, weird stuff and just throw it up Matt and see what he had to say. So here, let's do it. Oh yes. Do we have blowhard music? We don't have blowhard music, but I can just turn on Regular Music and I can also just do this. Yeah. That not blow Harding, not kill it. No, I don't like that. Yeah, you're making a marker. That music. All right. Let's start with Oh, I couldn't avoid it. I just love this. Here's breaking news from CNBC, and the whole thing, I'm gonna redo the headline, in the body of the article, Elon Musk calls on sec to evaluate Twitter, user numbers. Wow. And then the and then the article said this is breaking news, please check back for updates. That's all it said, nothing else. This is really, I guess this is a really big deal for CNBC. This is breaking news. This one's too, easy of a layup. I don't want to spend too much time here but he, he's now asking a favor from the SEC. This is really happening. I am I, well, I'm gonna favor the people, he ridicules. Yeah. I I think when you troll a regulatory Organization for several years and then want them to give you an excuse to not buy a thing that you said you were going to buy signed a contract about buying and you want someone to make it possible for you not buy it. They might not be the people to ask. How long do you think the lunch reservation? They booked today? After hearing that, like ate our lunch reservation SEC book. Can you imagine me the enforcement team of the SEC and having to deal with musk? It must be the worst the worst. You're kind of missing a little part of the story is that he can back out of this deal, but he'll have to pay Twitter a billion dollars. Unless He can prove some kind of trickery malfeasance and some kind of Fraud. And this is what he's trying to. He's trying to turn These. Okay, let's come back to this because I, yeah, let's actually have to describe moving on. Yeah, there's a good one. Yeah, I like this one. I like a lot of reasons. Let's let's do it. Yeah, let's get excited. I'm not very excited today. I know. I like this one because mostly, because we unearth the very giant Fib from a CFO, I love Yeah, Chief bib officer Brett Biggs. Here's the headline, Walmart report Big earnings Miss as higher costs supply chain, eat into profits. And I think we actually might have a little bit of Tape on this, right? We do we have to kfo Bricks seem to. He was blaming a lot of things, it wasn't blaming management or the board. Well, it's not external factors. No, no, well, we have tape from the earnings call and just keep in mind that this is a Miss against what analysts thought Walmart was going to make. Here's here's not even a real, it's not like a real thing, like they still made billions of dollars, okay, but here's what Brett had to say. Oh yeah, thanks for the question. Look the first quarter we saw a number of headwinds we had some elevated labor costs. As we were overstaffed coming out of covid. Lockdowns and inventory levels were fairly aggressive and assumed a strong consumer base and materialized our supply chain. Also has some issues including a significant jump and fuel prices as well as later arrivals due to Port blockages. And there were some other issues that actually proved to be difficult grills plants and pool. Chemicals, didn't sell actually due to unseasonably cold weather, and the us over the quarter. You may be wondering with climate change how that's possible. And it is true that according to actual weather data from Noah that it was warmer everywhere except for koochiching and Saint Louis counties in Minnesota. I just want to say that we do a lot of pool chemical business, and Big Falls Minnesota in February, so that accounts for some of it. We did notice an uptick of bad luck. After I accidentally washed my lucky Notre, Dame sweatshirt. We've actually never missed an analyst expectation when I wear it. So we had further bad luck when Denise, my secretary had a really bad psoriasis flare up on the week. I was supposed to be counting Wal-Mart's money, it was really hard to concentrate as a replacement. Who was also? Coincidentally named Denise really screwed up my calendar. As you can see, I think something this up, there were some tight headwinds that made our quarter more difficult than anticipated, but so far, we feel good about the second quarter already sales are off to a good start. Plus, I found a four leaf clover, so, hopefully we have more Tailwinds going into Q2 and expect, you know, better return on and YouTube. That's what we're hoping for him. All right. Thank you. Brett pigs. That was really dry and boring but here's okay, here's what's important. He's right. Like the second, you know, this is a CFO at Walmart. What's he supposed to sound like the? I like this. I like that. The second thing he blamed was Labor. I just like when I like, when they blame You know, the hundreds of thousands of people that work for your company, know, on that. Yeah, that wasn't actually. I like when you describe inanimate objects as aggressive, aggressive inventory. I didn't really get that aggressive inventory levels. Why I don't, I mean, he's saying, they overbought a bunch of stuff and then have you have to drop the price in order to clear out your Warehouse. So, what he's saying is, he says, the inventory levels were aggressive, you're but what he means is, we made some dumb decisions about inventory. Like what? I, okay, I love that. He's at aggressive inventory, though. I like no, no, like was punching one of their employees. I think you're wrong because I don't I don't see him blaming management or the boards. So you're wrong about that. Oh they didn't screw anything up. But wait but here's the we gotta talk about this. This is where this all started from. So I saw this quote in the CNBC article that he blamed the fact that they weren't selling grills plants, and pool chemicals, because of unseasonably. Cool weather in the United States and struck me. Like Okay, where's the proof of this, right? Because first of all, that, doesn't sound right? I haven't heard about this phenomenon going on quite some years, but I dug a little deeper just to see like, well, where's the proof of this is he just saying this out loud as he gets. He just gets to say something and then we hear a free flow media here business bands. We actually found the map from the National Weather, seal data, Noah, real data, Oceanic or quarter that he's referred to, he's lying, Matt, he's lying as the only part of America that had a slight dip in temperature was this cluster above Minnesota? The northern part of Wisconsin a little bit of North Dakota that's it over one maybe one Metropolitan major Metropolitan City, Minneapolis the rest of the country special the coast. It's actually quite a bit warmer so he's here's my life. Remember this is Q1 q1 is January February and March in Minnesota where it was unseasonably. Cool. It is like 12 degrees Fahrenheit. It's like negative like sevens Celsius is freezing and the thing. They didn't sell enough of were grills plants and pool chemicals. Because what is demand in Minnesota? Where was cooler for plants and pool chemicals in the dead of winter. I love everything about this. I love this new ones. I got I like this new ones. He got mad at Walmart employees, returning from covid, leave quicker than expected which caused the company to become overstaffed and further. Now, what is now what's happening there? These are hourly workers, these are wage, earning Works what happened to, they all clock in at the same time like they're not checking the schedule because suddenly that I don't have covid anymore and they're like sprinting down the Walmart. How does this? How do you, how does this work? I don't, I explained that one. I can't actually fathom that they came back. Like that there's four cashiers and I'll and like the Ila flight. What did they just all show up? Like, and meanwhile, you have to work. Here's the mystery of the stock market. So the stock is already down 11% today because a lot of your business news outlets caught you know as Matt pointed out they they go all crazy because someone some analysts predicted a number they didn't hit but meow at the company Matt revenues are up same store sales are up, e-commerce sales are up so so what's happening? I don't, I don't, I don't know. Okay, only had some extra plants and pool chemicals. Yeah, buyers Uh, let's get to Kimball, musk's brother Elon. I just wanted to, I just want to go down a list of some That conferences in Miami. My Favorite Things, these days. We've talked a lot about Miami and Tech and yeah, the Stanford Bros. So I just have a list of some things, he said. And I just wanted to see if you cared about any of them. Okay, let's do a one. We'll go one at a time. Here's here's he's. The, the headline is Elon Musk says the US is probably the recession that could last 18 months adding that recession or not necessarily a bad thing. So Economist, Elon Musk here. Okay, great. Okay, so we made these, he made these comments at a Tech Conference in Miami. You care about that? No one knows about Miami, okay. Recessions are not so celery. Did I just say celery? You know, delicious happened. What tends to happen? He said is if you have a boom that goes on too long, you get a Miss allocation of capital, it starts. Raining money on fools, basically. Oh okay. Well, let's unpack sentence. Number one, Um, recessions are not necessarily bad things, the first part of that. Now, if by bad thing, he means maybe he's, well, he's probably not referring to the Bureau of International settlements research paper from 2020 that showed recessions significantly increased death rates and child mortality rates everywhere in the globe. So maybe bad thing, maybe not a bad thing when you're a billionaire owner of Tesla Just For the Rest, what he's saying, just for the rest about things for me, I think. And then let's do part two which is it starts raining money on fools. Get this part. Yeah, I don't get this. What is a, what's he talking about? I assume he means fools, like people who are buying crypto and have made a tremendous amount of money on crypto in Miami, in particular, but maybe he means Tesla stock owners when the Tesla stock multiple hit a whopping 1800. That means for every dollar that Tesla made a price of its share was 1800 times that. Earnings Dollar in 2021. So, it was he the full? I think it rained money on him. Is what he's saying? Okay. Rained all over me. He went on to say that when this situation gets out of control the economy. Oh I said that. He says where people are doing things that are silly and not useful to their fellow human beings. So I think what he's saying is that unless you're building an EV car, Or say buying a social media company. Then not buying. Yeah. Yeah, this is the part I don't. This is I'm a little struck by this because he's really he's binary way of looking at business right now. He's saying that some things are silly and and other things are helping human fellow human beings. So isn't this kind of like a back to like an ESG argument? Isn't he kind of no yes no yes useless. Okay. Okay. He also joked that an economic enema. Enema, would eventually need to clear out the pipes. That's what the poop emoji to Prague agrawal was about in a tweet later. And certain he says in sort of the bullshit companies go bankrupt in the ones that are doing useful useful products or prosperous. I was. So here's what I here's what I really want to know what are the useful products. What is useful? If we went across the entire S&P 500 and asked him to, you know, green, check useful, Red, X, not useful. What would he determine? Oh, that was fun. Yeah. What is that? What Salesforce the chair of Twitter? The company he wants to take over is from Salesforce is the coast CEO. Brett, Taylor is Salesforce. Is that useful know look useful has to include though. The boring company making a flamethrower and Tesla making a cyber whistle to use to blow the whistle on Tesla. That was the joke. Those are useful products. This. Oh you want to say that? Not a great look. I would say no. He wanted to say that. The reason for the inflation is the government printed a zillion amount of more money than it had. I don't know what that means. It sounds like the guy Walmart making up things and that this is not like super complicated. So this is it. This is the hero of our world right now, Elon Musk. I mean there's a little complicating Factor called a global pandemic over the last two years I don't whatever. Moving on, let's say you got more more tape from that Summit. Oh let me know. Another update from ariani. But this time, we're here with a snack review. The most important part of this conference. I think mostly okay. I had the lemon poppy seed bread. It's a bread or no, it said low? Yes, I live in policies loaf. They had an assortment of Loaves and I also had what I believed to be. Just straight up pound cake. Yep. From yellow cake from a box and two different cakes. Yep, three. Um, how was that? That was good. I would say that my ranking was the lemon poppy seed loaf. Then the shortbread that the pound cake. Okay. Okay I also had the lemon poppy seed loaf delicious. I have had half of the single raspberry I put. Yeah, I'm a napkin just with couldn't find please. She took a bite of her raspberry she didn't just and this very like Gourmet made granolah, is it good? It is fresh. What does fresh granola consists of while? It's still dry but it just tastes way better than your regular granola. Yeah. Okay, so of yogurt are is your raspberry bread, the bread? It's really good. Yeah. All right. I own agreement. You heard it here first. It is the lemon poppy seed loaf, making it all worth it for me. That is it first I'm disappointed that the a the their their diet is so full sugar for, you know, first of all right. They're eating three different variations of cake and yet, they're all named, they're not cakes though. They're one called The Bread. Once called a cake. No, wait a minute back up. Yeah, are you a fruit and granola and a piece of cake? And he said, Emma had three cakes. I feel I am slightly embarrassed when our there are corresponds talking about lemon poppy seed, kicker really outperforming us. They're more interesting than we are today. That's not Let's try to wrap this up. We have a couple of more We can't avoid this story. So let's just, let's just try to quickly talk about it. So the Elon Musk who everyone presumes is going to buy. Twitter, is in the process of buying Twitter is now holding out the deal. Because he says it, that he needs more clarity on the amount of fake accounts, Clarity social media, right? And as we can guess, this is probably not a necessary, an easy figure to get so that Twitter reports, the SEC that that number is 5% of account. Like again, Elon, Musk comes back with a very bright. Big S like number and says that, actually, it's 20%. I don't know where it's no evidence, he's provided nothing for that. And as I think I alluded to earlier, I don't remember if I finished my thought, but he can, If he if he rescinds on the deal, he owes Twitter a billion dollars unless he can prove that Twitter was lying about something. And I think this is what he's doing with this. He's trying He's trying to get out of the deal, save himself, a billion dollars save face by coming up with this caca May mean nonsense. Yes, you are correct because this this number has this these numbers are not new. I mean Twitter has been talking about this for a long time so he could have done his due diligence and found this out before. And again it's not typical that idiot decide to buy major corporations well during like a 90-minute kombucha break back up. Yeah he do decided by corporations all the time but you're rough time line is Twitter for eight years discloses. How many Bots are on Twitter? Elon musk's reads. None of that and then buys Twitter to get rid of the Bots. He said many times that he's buying it because if it's 8%, if it's 11%, what's the difference? I'm getting rid of the box. That's I'm Gonna Save Twitter from itself. I'll save it from the box with that. Then he Goes on to break in. No particular order the standstill agreement about how much stock you supposed to buy the non-disparagement Clause of the merger agreement that he then, signs the nondisclosure agreement, he signs with the board and with Twitter and now he's broken the entire merger agreement. He is literally Tek Trump. That's what he is an asshole. He's Tek Trump. What did you mention that? The agreement, the original agreement to join the board with a, with a stock holding. Yeah, this is the stamp that he broke that agreement immediately and he filed improperly, multiple things with the SEC. He's literally doing his own disparage against the company itself. And this is, this is a there been multiple instances of him mocking Executives, including yesterday, where CEO had a very I guess length for Twitter a lengthy explanation of the pro by identifying Bots at Twitter to which Elon Musk the potential, future owner, and Future, boss of progress, overall responded with merely A Emoji of poop. Yeah, that was like no joke. That was the, this is a week or maybe two weeks after making the head of legal policy and Trust at Twitter Vijaya Gotti or God cry because and attacked her on Twitter before for her choices. Let's, let's not believe her. This why the hell doesn't the Twitter board? Met just say F, you and just bounce? What are they doing? What are they? Why are they but really like beyond all the jokes of all this? Why why attach yourself to such like abhorrent executive or ownership Behavior? I mean, this is like a I again like try to remove the humor of all this and the pop culture, this of all this, this guy is a is just a major risk factor in general, right? I mean, why would why go through with this deal? I don't, I don't understand. Explain to me there. Do you know? I don't? Well, they're doing the job of a fiduciary which is effectively saying, like, can we give our shareholders better value, right? So if they, you take it very strictly in a very short term in the very short term, right? The price that Twitter is now trading at partially because musk is taking it himself, but partially because the market is fully the know, the market is tanked too, right? Like the price. Now the price that musk is paying looks kind of good like it looks like as fiduciaries. We've made a good deal for our shareholders and musk is basically saying oh crap. Now not only on my highly levered during a possible recession which would be Quote, on quote, a good thing, which is really cover for him. Not wanting to say that this is been really bad for me, because Tesla Shares are down 30%. I'm highly levered. And I'm buying something that I don't really want to run or manage and is not very profitable. And before when money was a lot and I said, I don't care about the prophet but now I have margin calls and I'm gonna care about the The fact is this is if you're the Twitter board, this number that musk has put on the table that you've agreed to looks pretty good. Musk is a big crying, baby. I don't want to mince words here. I don't know where people like the musk acolytes at what point. Do they fall off the train and say? He's a big baby. There's not, there's not a mystery here, he's a billionaire with no accountability, Who's acting like a giant trumpy diaper, baby. Well, it's gonna say that that's the only and I don't mean to make this political and I don't. In fact, it's not political, but that's the only equivalent I could think of is, is the the analogy which Trump, which is that you can suggest injecting bleach, you can joke about, you know, assaulting women were in were, I guess we're in a phase of our culture where People don't care. No, it's not. It's not a political analogy. You're making it's it's a mob analogy in which people are bored analogy. People, you literally have a cohort of humanity, who just listens to what that person says, without any like thought afterwards, there's no fact-checking. You don't care about it. And that's his left and right, because a lot of the, the Tesla people are like sort of like crypto young liberal, or libertarian or whatever. There's a mix of people, but they just listen to what he says, and they don't think two steps after that, there's nothing after that and he. I'm so tired of him. I'm proud to report. The we went out for pizza on Saturday night and I don't know. Courtney sent you this picture, but we saw a Tesla with a with a license plate. Buy Bitcoin. They're probably proud of that. Did you actually? It's a perfect segue. And we don't have to and we don't have to really talk about this. But but speaking of like, the blindly following, yeah, Warren Buffett announces investments. In two companies, Paramount City group, and the Starks are our way up. That's just yeah, it's sort of a blind following. It's a blind falling. Okay, let's not. I feel like we've how long we've been talking four hours too long and we actually have anything else from our Summit. Anything else. We have one more up, this, another panel reaction from our Summit. I'm hoping this is as boring as the first panel was for them. So let's let's listen to Aryan Emma's. Final reaction, they have a lot more Summit to go but this is their final reaction so far. The snack though. What did you think about this one? The snack was thanks. You have to tell us. This is called building a net, zero portfolio. Yeah. I'm not, I was confused by as a concept, I think. Why isn't it? Why are all important zero portfolios? It's an excellent question. You know what else was the next question? The ones that I asked that? They didn't answer. I submitted two questions. It's your first of which was, how do you factor in carbon credits to building our sorry? How do you factoring companies? Who use carbon credits when building a network portfolio in addition to If he's an ice cream, which ice cream would it be chocolate? Why only one I like Just kidding. That's the only one. I ate. You only eat chocolate ice cream place or Creamery and I ordered chocolate. Oh anyway, I thought those were great questions. Yeah. I really like one of the two panelists that said you have to educate your managers like it's an asset manager. Creating this Net Zero portfolio. You have to educate your managers to speak climate. Like, what about educating? Your clients did you ask that question? Yeah I did. Yeah I saw the country. What let's see what lunch is like. Okay, let's see what lunch is like. We'll get a lunch report later. Can we fire someone for only eating chocolate? Ice cream. Is that? Is that a fireball offense? They're probably the only employees sent to an, to the S&P Global sustainable one Summit and are actually honest about what they're going. Yes, this is true honesty that which is, yeah, which is, they don't understand anything. Yeah, go is what you come to free flow. Medium, if you want more honesty, come back tomorrow when we'll give you a dose and it'll hopefully be less than three hours long until then goodbye.