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[00:00:00]

The Tiger King, what bullshit, step up to the mike and party with the dog king, D.J. Griffin headed for the dance, dance, dance the.

[00:00:19]

This is our sixth episode today. We do a rant on the floor. We then bring it up a notch in terms of credibility and do our interview with a hero of mine, the senior senator from Colorado, Senator Michael Bennet. And we also answer your questions in office hours and wrap up with Aldeburgh of happiness. Let's light this candle, Amazon, Apple, Facebook and Google. How do these titans of technology fare posts Corona? Well, no shocker here.

[00:00:48]

They're going to come out of this even stronger. As we've said several times, covid-19 isn't changing anything. It's only accelerating. The future is just happening faster. So what is every hedge fund manager have is a static part of their screens right now trying to find Alpha, just location simple tons of cash on the balance sheet because nothing is as painful as seeing a company go to zero. So let's talk about cash on the balance sheet. Let's talk about Google.

[00:01:14]

Google has enough cash on their balance sheet to buy the skies. Specifically, they could buy Boeing and Airbus just with their cash. What will happen to Facebook and Google through the crisis? They are going to see a big hit to topline revenue. Specifically, keywords and ads are off 20 to 40 percent. If you go online and try and purchase keywords or buy advertising on Facebook, you can have a welcome surprise as a manufacturer's brand or an advertiser in that you will register much lower prices.

[00:01:45]

That's actually an opportunity if you have a business that's in decent shape right now, an opportunity to get off your heels and on your toes. For example, we're looking at my company protg or our company property, which is online education. We're experimenting with LinkedIn because ad rates have come down. They're so customer acquisition online, good for manufacturers brands, bad for Facebook and Google who see their prices declined precipitously. But but what will happen to these companies?

[00:02:12]

If you're going to see the ultimate V here, you're going to see a violent turn down and the rip back upwards is going to be equally bloody and violent. Why? Let's look at the offline prey, the carrying the carcasses that are going to feed off of radio. Seventeen dollars billion in the US now up for grabs. I heart radio and Cumulus Media, the two largest radio companies are terrestrial radio companies will likely be Chapter 12 within 12 months.

[00:02:36]

Why do I say Chapter 12? Because they were Chapter 11 just a few years ago and unfortunately came out of the restructuring was still too much debt.

[00:02:45]

Word is some of these agencies and some of these radio firms, their business is off 70 percent. Radio is projected to decline 14 percent in twenty. covid-19 has a mortality rate of around four percent in the US. Note this is likely dramatically lower as we figure out and get our act together around testing and we find that the denominator is bigger. But among US media firms, a death rate from covid-19 will be more like 10 to 20 percent, and that is one to four.

[00:03:12]

One to five media firms just never get out of the ICU here. Firms ranging from Condé Nast to Viacom are furloughing or laying off people as Facebook and Google ramp up hiring. Let's talk about that. They are off their heels and onto their toes. Who are the best people at Condé Nast? Who are the most talented people at Viacom? Easy. Just look for the new faces. A Google and Facebook's cafeteria, June one. These companies are taking advantage of weakness in old media and going in and scooping up the best people with the most talent and the strongest relationships.

[00:03:46]

These firms are absolutely going to report back. Let's talk a little bit about Apple. Apple was recast as a stock through 2019, increasing from a price earnings multiple of 12 to twenty four. So it's actually it didn't even really increase its earnings that much. What it did do is its stock price double double without a material increase in earnings.

[00:04:09]

Now, why is this you could argue, well, renewed growth or they cauterise the decline in the iPhone. Everyone was worried that the most profitable product in history with the margins of Ferrari in the production volumes of Toyota was in fact, waning. And it wasn't. A lot of people say that Apple isn't that innovative. They haven't come up with a new product. What bullshit. The only product that matters is the iPhone. And they continue to innovate around it, as evidenced by the fact that it's growing again.

[00:04:33]

However, however, will a product that will set you back one month's household income in Turkey continue to experience the type of sales you could make an argument for? I would make an argument that it's likely we're going to see delays in purchases or your own upgrade cycle be extended, if you will. And I do think that Apple takes a bit of a hit. So let's move to the last of the four or should I say the first of the four.

[00:04:57]

And that is the company that is going to be the first to trillion dollar company, you guessed it, Amazon. Now, let's imagine the President Trump oh, nothing but Amazon stock. And we know that he's corrupt. We know that he's a criminal with Trump. There have been so many violations of basic decency and criminal behavior. It's no longer a crime. It's justice to. Historic, yeah, bring it on, you Trump bitches, anyways, having said that, having said that, what if Trump decided, OK, I need Amazon stock to go up 50 percent and maybe owned a little bit of Wal-Mart?

[00:05:29]

What would he do? He'd come up with two and a half trillion dollars in rescue packages and stimulus, put it in the hands of consumers and other means and bailouts.

[00:05:39]

And then I know who are the people are most likely to get the lion's share of that revenue. The two largest retailers in America, Wal-Mart and Amazon, would be Doug McMillon and Jeff Bezos said to Trump, I need you to take our stocks up 20, 30, 50 percent in the next six months. I need you to create tremendous stimulus like historic stimulus boom. He's done that. But wait, we want our stocks to go up not 50 percent.

[00:06:03]

We want to stocks to go up 70, 80, 90 percent.

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I know. President Trump, could you close, give everyone stimulus, put money in everyone's pockets to a large portion of which we will recognize? And by the way, could you mandate the closure of ninety eight percent of our competition?

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Think about this.

[00:06:21]

They've given everyone anywhere between twelve hundred dollars and five thousand dollars, depending on how you look at it, every household in America and and they've closed ninety eight percent of retail. But who's open the good folks from Amazon and Walmart?

[00:06:36]

Amazon is not only not being hurt by this crisis, there's more wind at their sails anyway. Anyway, Amazon comes out of the stronger. They reinvest some of that in what will be their health care efforts, delivery of covid-19 tests in the UK. They come out of this. They're not even running through the tape. It's as if Ben Johnson all juiced up on tax avoidance, cheap capital, excellent execution, shows up to 100 meter dash.

[00:07:04]

But his gun off goes first and he gets to start ten meters behind. And when the gun goes off, he's already at a full sprint. When he gets to the starting line, that's what we're talking about. When there's a quote unquote, economy reopens. Amazon is just absolutely going to come out of this again, just totally juiced up. But the thing is, they won't get kicked off the medal stand like Ben Johnson was. They won't have their medals taken away unless we make what would be the smartest investment for our economy moving forward.

[00:07:30]

And that is to double and triple the budgets, which, by the way, would be a fraction. A fraction. We're talking less than one percent of the money we are helicoptering right now. The best investment we could make in the health of this economy post Caronna would be simple, tripling the budgets of the DOJ and the FTC. Are these good people helping us through the crisis at Google, Facebook and Amazon and less so Facebook? Yes, they are good people.

[00:07:53]

Or should they be broken up immediately? Post Caronna the answer is yes.

[00:07:59]

Stay with us. We'll be right back. Every year, millions of men across America dread spring cleaning. I actually don't think that's true, but I do think there are orders out there and I can't stand them. And there is a category of men, myself included, that would like to live in basically a wallpaper magazine version of Norway. And that is I just don't want shit around me.

[00:08:19]

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[00:09:40]

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[00:10:07]

So after I published the book, The Four number five in The New York Times hardcover nonfiction list, thank you very much. Anyways, what started out as a love letter turned into a cautionary tale. That's my book. It did. Well, the timing was really was really good there. And I had a lot of public officials reach out to me. You know, your book resonates when you hear from the offices of Elizabeth Warren and Ted Cruz. And I spent more time in Washington than I've ever spent talking to our elected officials about big tech as they contemplate how to regulate or how to break them up or how not to do either of those things.

[00:10:39]

And one guy invited me down and immediately stopped the conversation and said, give me 10 ideas to restore the health of the middle class. And we had about a two hour conversation in this guy. Just there was just no faking it. You could tell this guy was really concerned about economic policies that would restore or repair, if you will, the middle class. And he was taking notes, followed up and super smart, pushing back, spending a couple of hours with this guy just made me feel better that we elect such incredibly talented, smart people who are obviously so concerned with the middle class and so generally genuinely concerned about the middle class.

[00:11:20]

That person is the senior senator from Colorado, Senator Michael Bennet, Denver school superintendent, ran for president. I was fortunate enough to get involved in his campaign. He didn't get the kind of traction we had hoped. I think it's too substantive and not prone to 15 second clips on Facebook when the Democratic National Committee decided to let any joy bag of donuts, entrepreneur or spiritual counselor on the stage, which was, in my opinion, a crime against American discourse.

[00:11:48]

But anyways, Senator Michael Bennet makes you feel better about America. Full stop. Here's our interview with the senator.

[00:12:06]

Senator, where does this podcast find you? You find me in my home office in Denver, Colorado, my my whole family is here with me.

[00:12:14]

How does your job change in a pandemic like this? How is what has been the biggest human change in terms of how you're allocating your time?

[00:12:21]

I don't have to hang out with Mitch McConnell as much, which is very close and upside to it.

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But it changes. It's just made it virtually, you know, on the one hand, the constituent service part of my job, which is always part of my job, has become, you know, 80 percent of my time, which is making sure that we're supporting local communities as they try to get through this brutal patch. It's it makes it hard to have a negotiation like we ordinarily would if we were all together in Washington. But I think we're figuring out how to do that.

[00:12:58]

So, Senator, the rescue and relief packages, what did we get wrong? What did we get right? And what would you like to see more of moving forward in terms of economic relief?

[00:13:06]

I think what we got wrong was that it wasn't big enough. I think what we got right was the general contours of the package, which was a big effort for small businesses. So what I think we should see out of the next package is a refinement of what we already passed to make sure that the small business program is actually getting out to the businesses that need it most, not the ones that are necessarily best connected to the banks. And then we've got to have more relief for state and local governments to preserve the critical local services that are there are people need.

[00:13:40]

So looking at this on a more meta level, we we being the US, we had more time to prepare for this. We spend more money on health care than any nation in the world. We now have more infections and Spain, Italy and China combined.

[00:13:55]

We didn't level up to what was expected of us. It feels like we just got this got this wrong. First off, do you agree with that? And what can be done to ensure the next time this happens, we handle it better and can raise our heads a little bit higher?

[00:14:07]

Yeah, I totally agree. I think we were unprepared and I think Donald Trump has made matters worse. So let me take those in order on the unprepared question. We spend more than twice what any other industrialized country in the world spends on health care, but we get a worse result. We don't cover everybody. We don't have the kind of primary care or investment in a public health infrastructure that other places have. I would add on to that, to other things that over the years have driven me completely nuts.

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And I think, you know, part of the reason why we were unprepared, one is since 2001, we borrowed five trillion dollars from other countries, principally the Chinese, for the privilege of giving mostly the wealthiest people the country tax breaks. We we we spent five point six trillion dollars on two 20 year wars in the Middle East, none of which we paid for, all of which we borrowed. And the flip side of that is we didn't invest in our country.

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You know, that's 11 or 12 trillion dollars we could have invested in the country. And we did. We have an educated our kids adequately. We haven't had a health care system that's worked terribly well for 50 years. So even though we are the most innovative ecosystem in the world, I still believe that we have not invested in the basic architecture of our society and infrastructure and I mean human capital as well as physical capital. So that I think all of that together is why we were unprepared.

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And then Donald Trump has made matters worse. What do I mean by that? He literally came to the podium at the White House. This was months ago and said, I'm glad to see the states competing on the open market for personal protective equipment because that'll that'll give us price transparency. Ridiculous. We have complete scarcity of supply. So what's happened is a result of every single governor having to compete for every single hospital, including the VA hospital and every one of our states having to compete with every single hospital.

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All that's happened is because things are scarce, prices have been driven up and and we've increased the scarcity. So we've actually compounded the lack of preparation that we have. I fear we're about to do it all over again because we desperately need to have a robust regime of testing to be able to open the door to the country in a way that can, you know, reduce the risk of having to close it again. And the president is saying that's a matter for the governors, just as he has said, for the equipping of our hospitals.

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They need to figure out the test when this specific pandemic burns out.

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And the terrible thing about crises is they always happen. The wonderful thing is they always end when this turns out. What forward leaning investments would you make such that we don't end up paying two and a half trillion dollars in borrowing against our kids futures repeatedly? Where do we need to allocate more capital?

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I would say, first of all, I would cut our expenditure on health care as a proportion of GDP and I believe we could do that. I don't think that's Pollyanna ish. I mean, when we're spending more than twice what every other industrialized country is spending, I believe is the former school superintendent, that we've got to invest in education, in higher education. We've got to do it in a way that reflects the 21st century reality we're living in, not the 19th or 18th century reality where we we created our our school systems to begin with.

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We've neglected our kids and our teachers for far too long. We're not able to attract and retain people to the teaching profession. And we're not able to say, you know, as a country that when a kid graduates from high school, they graduate everywhere, a living wage, not just the minimum wage. We can do that in this country by making investments in ourselves.

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Your school superintendent for Denver Public Schools, do you think schools are going to reopen in the fall? I don't know, nobody knows because we don't know whether we're going to have the testing, infrastructure and regime in place to follow up, to be able to put out hot spots when they happen to be able to distinguish between folks that are bending the curve and other parts that are. So I think as long as we don't have visibility into that, then all we're going to be engaged in is a game of wishful thinking on the part of the president.

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But it's going to be OK to we May 1st, OK, it's going to be the governor's fault if we don't reopen. We got to do better than that. And unfortunately, I regret this, but the only people that can really get us on that pathway is, is the administration. I hope they're listening to people like Scott Gottlieb, who was the FDA commissioner in the Trump administration, a really, really smart, thoughtful guy who's laid out very clearly a set of steps that if we follow, we could say to you, I could the answer would be yes, and that school might reopen itself and reopen exactly the same way, I guess may not be as close as they once were, the same with restaurants and other kinds of things.

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But at least we'd be on the path to recovery, which is what we need to we need to do. And it's not going to be binary. It's not going to be everything opens at the same time. You know, we this economy can't stay closed forever. And I think all we need to reopen it is to get through the worst of it and to have the tools in place to reopen in a way that smart. So I'm going to make a statement or propose a thesis that I think you're going to agree with and then get to how we make this happen, and that is the best way to ensure this doesn't happen again, at least with this type of collateral damage, would be to get Vice President Biden elected in the fall.

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I worry that he is visibly absent. Shouldn't the vice president get off his heels onto his toes, maybe appoint a vice president, a cabinet and start? I don't want to call it punching back, but offering a different vision for how to handle this. I'm worried that he is visibly absent and we are losing ground.

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And he thought beating Donald Trump is critical and having Joe Biden beat him and win is critical. And it is also critical for the Democrats to win a majority in the Senate. We have got to send Mitch McConnell, you know, either into the minority in position or back to Kentucky if we have any hope of investing in the country again. Both are doable. I agree that the vice president's got to be visible. He's got to do what he could do to make sure that people know he's going to have the kind of people around him that are going to be the kind of world leaders that the American people should reasonably expect serve in government.

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I think all of that will help and I'm sure will come.

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So you ran for the Democratic nomination for president, and I would it was you didn't get the traction that you'd hoped for, I imagine.

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What what as you look back on the race, what was the biggest surprise to the upside and the biggest surprise of the downside around running for president of the United States? I would say, first of all, I appreciate your noticing that I ran, so I didn't I didn't. I was their boss.

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I was with you day that I didn't get traction is a really polite observation. I'm I I'm really glad I ran. And here's one reason. Colorado is its third Democratic, a third Republican, that third independent. I was the only candidate in this race who had won two national elections in a swing state. And it gave me the opportunity to test whether or not those swing state politics were where America was or maybe America was in a totally different place.

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The surprise on the upside was America, I think, is absolutely where Colorado is, where that swing state is. It's a country that's looking toward the future. It doesn't want to be defined by the past in terms of what our ambition can be for the future. It's an innovative country. So that was the biggest surprise on the upside. I'd say the biggest surprise on the downside is how hard it is to go from one percent to two percent.

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I've got to figure out if I'm going to do it again, which I hope to have the chance to do, how to how to how to do this in a moment where, you know, celebrity politics feels like something that we've kind of glommed on to and where social media is, I would say prematurely deciding who's who's viable and who's not.

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So you're a father. You're a husband. You're one of the 100 members of arguably the greatest legislative body in the history of modern civilization. You've run for president. You may run again. What's your message during this time of crisis to the American people? What would you want to get across?

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My message is that you're you're responsible. Citizenship is needed whether we're business owners, entrepreneurs, innovators, schoolteachers, politicians, it doesn't matter. And we've all got a piece of the rock. Every single person in our society has a piece of the rock. We call that pluralism, I think. And we're stronger. The more diverse it is and we're stronger, the more opportunity people have to exercise their franchise. So, Scott, what that all comes down to me for is we got to do the right thing by our families.

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We got to do the right thing by the people that we have responsibility for, the people in our businesses that we have responsibility for. And we've got to have responsibility for this democracy. The best thing each of us can do is make sure that we're getting other people to the polls, exercising their right to vote. That's the most important thing we can do. Michael Ferren Bennett is an American businessman lawyer and has served as the senior senator from Colorado.

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Senator Bennett, thanks so much for joining us. And stay safe out there. Michael. Prescott, you. And now office hours, hey, Professor Michael Brown here. Hey, I know you're a strong advocate of peloton and their position in the marketplace. I was on Twitter the other day where a good friend of mine was asking about solar cycles new launch and thought that was a really good question. How does that stand to hurt Peloton? How does it stand to help solar cycle?

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Do you think it's going to matter? Are they too late to the game? What are your thoughts?

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Michael Brown? You sound like a rap star. Is that racist? Michael Brown, rap star. Is that racist? Anyways, Michael, thoughtful question. Solar cycles effort into the home or connected fitness space is dead on arrival.

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You have they're competing against a company that has access to extraordinarily cheap capital, a technology mindset, a direct to consumer mindset. These are not competencies you develop overnight. There's no way they can they can compete with the type of massive investment the peloton is making in marketing. The amount of attention peloton gets because it was a public company was really more of a branding and event than a financing event. And Peloton just has for lack of a return. You know, I want to say a running start, but a cycling peloton like start from soul cycle and soul cycles, primary point of differentiation or advantage was multichannel.

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What do I mean by that? They understood the terrestrial experience and could probably sign up or acquire customers at a low rate and say, here's a trial. Ten dollars off your first experience.

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Solar cycle at home. Create a community when you use products across mediums, whether it's you go into a Pottery Barn and then buy Pottery Barn through your catalog or gone into a Williams-Sonoma store and then buy off the Internet, you become a much more loyal consumer and spend more. So multichannel is very powerful. And that was so cycle's primary point of differentiation. Also, some cloud cover is run by the same people that own Equinox who are good and fitness.

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So a great company, fantastic in store feel.

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The problem is that leg of the stool has been kicked out from under them because of covid-19 and the fact that nobody wants to sweat next to somebody 24 inches from them. So that is an unexpected severe kick in the nuts. And they're just not going to recover to the extent that they can compete with a publicly traded multibillion dollar organization like Peloton. Does that mean so cycle goes away? No, there's still they have rabid fans. They do a great job.

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They'll still have profitable locations. But peloton continues to pull away. And so cycle will likely recover but won't recover to pre covid levels. Whereas peloton continues to zoom, I would imagine they'll shut down the online or the connected fitness effort as they have to regroup and kind of retrench to their core. Thank you for the question, Michael. Hi, my name's Christina and I just graduated in February 2020 with my MFA in Creative Producing from Columbia University. Now that the pandemic has put physical film production on pause, I'm considering moving to Canada because I'm a citizen and I've been advised that it will bounce back from this virus stronger and sooner than the U.S..

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Do you agree with this? Do you think Canada is going to come out of this in a better shape than the states? And would you recommend pursuing a career in Toronto over New York? Thank you.

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Thank you, Christina. How do you get one hundred drug fraternity guys out of your pool in Canada? Hey, guys, could you get out of the pool? Canadians are so nice, I love Canadians and by the way, I I think that's technically bigoted to make a stereotype about Canadian people. But come on, Alan Thicke, Wayne Gretzky, Michael J. Fox, how can you not love Canadians? Literally, some of my best friends are Canadians.

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I go to Formula One in Montreal every year. Montreal, most underrated city in the world, little slice of Europe and North America.

[00:28:13]

Anyways, you are blessed. You're coming out with a great degree. There is so much cheap capital going into content creation that if you have the ability to if you can be a great storyteller, if you can understand the collision between technology and storytelling, there's tremendous opportunity in both nations hands down. And Canada has, I think, a very aggressive film board that basically subsidizes filming a candidate and creates a lot of jobs. I'm sure they've done the math on it.

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And meanwhile, the U.S. has the most robust creative media industry in the world. Full stop. I think there's going to be a ton of opportunity in both. And I think you're going to see post covid it not go away. But for example, I am launching or we are launching a show on Vyse.

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Why do you like Tashaun Bias? Because Netflix didn't call us back.

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But anyways, that's another point. That's another point. We're filming this TV show out of my house and you're going to see a lot of that. And it's going to create a ton of opportunity. It's going to lower the cost of production because people's people's expectations have come down. But it's going to open up an entirely new world of media production for people who understand technology and remote filming. Now, as relates to your question, I don't think you need to go meta on this.

[00:29:28]

I don't think at your age you need to try and figure out which nation state prospers or doesn't prosper. Who comes out of the crisis bigger and better. They're both great countries. America still is, in my opinion, the greatest place to be a young, talented person. I would make it a micro decision. And that is, you know, where where is the opportunity? First and foremost, I have a lot of kids come to me and say, should I go to work for Google or Amazon?

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I'm like, well, do you have offers from both? And they'll say, No, I'm like, well, OK, get out of my office and come back when you have offers from about. So see where the opportunity is. Apply for jobs in Toronto and Los Angeles and New York and Vancouver and see where the opportunity is. If you're blessed enough to have the opportunity to make that decision, then I would make it more based on personal attributes.

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Where do you want to live? Do you want to do you want to make a life in Canada or do you want to make a life in America? Because what happens in your twenties, I assume you're in your early or late twenties as you start collecting spouses and kids and dogs and wherever those people show up, you have a tendency to stay. So, one, find out where the opportunity is.

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Both fantastic countries, you know, tied for number one in my in my book and to see where Sueur operas, you know, make the decision around where where you want to live. Don't try and figure out the big picture stuff. None of us know what the fuck is going on. Cristina, it is great to be an MFA in creative producing from Columbia University. What a wonderful time to be. Cristina, thanks for the call. Our next question.

[00:30:57]

Hi, Scott. Don Rose here. Current economic uncertainties have turned an opportunity into a conundrum. Granted, this is in the category of a first world problem, but it may be of interest to you or your listeners. The missus and I are planning to collapse our thirty plus year existence in suburban Boston into a riverfront condo in Cambridge. We have now demolished the apartment and its renovation is on pause now due to the obvious. Meanwhile, we have just been offered an adjacent unit at an agreeable price and we believe there is compelling value there for us when combined, not to mention more flexible area for living in place through our retirement.

[00:31:37]

The expense would be a stretch for us, especially in the context of troubled times, including concern that residential properties may also be hit in the downturn. However, the purchase could be financed debt free by liquidating our position and Spotify, a residual holding from co-founder shares earned in twenty six startups and sold to Spotify prior to their IPO. Spotify is market dominant and I love the service as a user, but it faces big barrel competition, the biggest imaginable.

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As you know, however, that position is practically the only swing for the fences hold in our retirement fund. No worries, Professor. Though I'm a fan boy, I won't rely entirely on your advice, but would appreciate your input for perspective. Thank you. P.S. This must be said, you are so wrong about Roger Moore as the best bond. Don't get me started.

[00:32:37]

Did the Saints give you seen have you seen Roger Moore in the saying that guy is a tall drink, a lemonade. That guy is literally one of the most handsome people to roam the earth in the twentieth century. Everyone goes through Sean Connery. That's the obvious one. A lot of people like Daniel. The physicality of Daniel Craig, but I'm going with Roger Moore is a great question. Mr. Rose, in some, do you liquidate Spotify and move into real estate?

[00:33:04]

And the smartest thing you said was that you weren't going to rely on me for this advice. And you need to speak to a lot of people smarter than me around portfolio management and risk based on where you are in your life and how much money you have and the kind of risk tolerance you're willing to endure. What I will do is tell you what I would do if I were a little bit older and had Spotify stock, but had an opportunity to take that stock and liquidate it and move into real estate.

[00:33:32]

I'm actually thinking of doing that. I've owned big tech for 10 years and have done well, but I'm sick of the roller coaster. There's a bit of a psychic cost or a reduction in your psychic return that comes from owning stocks and then you have to market every day. And that is I check my stocks two or three times a day. It's a terrible habit. And if I'm up against, I'm happy. And if I'm down, why, I'm not happy and I'm kind of sick of being on that hamster wheel as I get older.

[00:33:58]

I also own some rental real estate, and I love it because it's cash flow. It's consistent. I like my tenants. It's just I just like that business a lot. Now, real estate is all about the cap rate and that is if this condo costs you one hundred grand and you're getting somewhere, call it above five or six percent cash on cash return after maintenance, after upkeep, which is the same as maintenance after property taxes, then you're talking about a pretty decent residential real estate.

[00:34:30]

I would I would assume that the sellers also know that it's a crisis and not be afraid to ask for additional money off. But it sounds like there's some synergy there in terms of owning an adjacent property. Cash is a wonderful thing. As you get older, a lot of it comes down to the leverage. But if you're in a position where you have a good cap rate, if you're in a position where you don't have to borrow 90 percent to finance this thing, I think perhaps getting out of big tech and moving into cash flow residential real estate at your point in life is actually a pretty good idea.

[00:35:00]

I know that's what I'm thinking about doing in terms of Spotify. I love Spotify. I thought I was going to be the fifth horseman. I predicted that two years ago when the stock was at one fifty. I think it's at 140 now. Unfortunately, I think it is being slowly but surely bled to death by the Monopoly's, Apple and Amazon, who have inferior music offerings but own the rails. So, Mr. Rose, thank you so much for the thoughtful question.

[00:35:25]

I continue to ask other people about it, but in some I'm effectively doing what you're doing and that is transitioning into equities and into real estate. We love your questions. Please submit them to office hours at Section four dotcom.

[00:35:48]

So going to Europe over Thanksgiving, that's what me and my co-founder at L2 used to do, me and Maureen Molen used to get on a plane on Tuesday or Wednesday of Thanksgiving week and schedule a ton of meetings in Europe Thursday and Friday while everyone was eating Turkey here in the United States. And is that because where you don't like our families or is that because we don't want to give thanks? No, it's because we were in a startup and we saw an opportunity to lap the competition while they were all sitting on their hands eating turkey.

[00:36:18]

And I think there are certain moments in time where you can apply functional speed professionally. What I mean by functional speed, that's a term I learned from Jerry Rice or about Jerry Rice, the iconic Hall of Fame wide receiver from the San Francisco 49ers. And everyone used to say that he wasn't the fastest guy on the field, but he had functional speed, and that is he knew when to turn it on, if you will. And I think this is a time to turn it on professionally.

[00:36:43]

And that is while everyone is panicked, while everyone is sitting on their hands, while everyone is, you know, especially corporations focus on getting bailouts instead of focus on their own product. I think this is a huge opportunity to go to Europe during Thanksgiving, if you will. I know personally I am working harder than I have been a long time because there are opportunities when you can apply functional speed and absolutely lapped the competition. So this is what you need to do.

[00:37:08]

Look at your industry, figure out what you can do remotely figure out what aspect of your professional career you could create differentiation around whether it's content creation, whether it's getting in good shape physically. Such a your stronger work. And I know that sounds ridiculous, but I think that's actually a decent time to be stronger. I think being stronger helps you professionally because you have more endurance and you feel better about yourself and you're less prone to depression, which all of those things add up to economic growth.

[00:37:34]

But this is a time this is a time to call on that functional speed. And if you're blessed enough that your family is safe, if you're blessed enough to know that the people around you are healthy, then this is the time to turn your gaze to your professional life and not think of this as time off. Think of this as time to lap the competition. Go to Europe over Thanksgiving. Our producers, our Griffin Karlberg and Drew Burrow's, if you like what you heard, please follow, download and subscribe.

[00:38:04]

Please subscribe. Right now, we're off to an amazing start. We're not The Hobbit.

[00:38:09]

We're not Middle Earth, but we're six episodes in. We want to seven. We want to seven. Thank you for listening.

[00:38:14]

We'll catch you next week with another episode of the show from Section four in the Westwood One podcast network.

[00:38:28]

Sheltering in place with your three daughters, what TV are you watching? We watched that Tiger King show.

[00:38:38]

Have you watched that? Oh, are you kidding?

[00:38:40]

That guy is living his best life against a gay polygamist with a mullet. I mean, what's not to like about that guy?