Scholars Corner: Bacardi Settles with Jay-Z for $750 Million

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The stock market, especially the NASDAK, has had great had a great January. Yes, last day Friday wasn't good, but for the month of January it was insane. It was on a great run. Do we expect February to continue in this path?

They raised a basis points by quarter of one percent, so that was the reason why I drugged down. They seem to be lightening up on how much they were going to raise rates, so it's not going to be the aggressive six to seven percent that we thought maybe three months ago. I'm kind of worried though, because like the tech companies are going up like too rapidly, like

Well you were talking about Facebook, so this day had their biggest.

One day game ever. Ine, Yes, you were very barish on Meta.

Still am and I was right in embarrassments.

So do you think that now it's.

On the rise. Yeah, it's on the rise. Yeah, So what's your thoughts on Meta?

They finally start listening. They began to be a lot more efficient. They're cutting out a lot of metal management. Zuckerberg even said like it's fun now because the people that it got laid off it was necessary and now people that are there Meta like want to be there, actually want to write code, want to make better products than seeing some changes on Instagram. So I think they aren't going to get back to that peak anytime soon, but they're going in the right direction.

Yeah, I mean.

You said the products obviously reels. Yeah, we did great for them in the court, Yes, did amazing. And there is some talk that he might be cutting back on at the amount of spending that he was going to do into the space. And so when you're talking about over fifty billion dollars being invested into the metaverse, scaling that back, that's positive news, which is a bad investment.

I remember saying like, y'all, it's going to be Facebook.

And the reason not because of anything product that they're doing, but the amount of money that he's spending on This will really determine how the future of this company's going to look, because if you put fifty billion dollars and this doesn't work, how do you recover?

I mean, the peak was three eighty four thirty three. It is at one eighty six fifty three. Nice growth, but they at least need to get to two ten and two fifty before I'm like super excited about the upside of it.

So it was.

It was at eighty eight dollars in November and it's had one hundred and eighty six dollars down, So I want up one hundred dollars more than double in a couple of months.

Yeah, good trade, and shout out to those who got on the call. Some people are up in stock club as a result. So like short term, I'm still bullish. Long term, I'm still bearish until I'll see like a change and playing even on like the conference call, they didn't mention the meta versus much as they did the previous call very intentionally. Absolutely, can we say the meta versus a failure.

For them?

Will it work for other companies? Yes, Apple VR headset is coming out soon. They want to replace this with the headset. Tim Cook is going to eat their lunch.

John.

Kudos to John Wren, marn Alvin, Mark Zuckerberg, everyone at Menlo Park. If you're in Meta and I'm right, go into your other YouTube account and put yes and chat. These are all the conversations like they were spending like the three times I went, No, one's eating the food. There's sixty thousand dollars worth of duck hunt feet or whatever.

Just sit. I'm like, this.

Wasteful spending was like insane. Now they're finally cutting back. Not as many people in office. We have more people. At one point they had no engineers working on building new products for two years.

See Rasha would have fired everybody. Right, they're done.

So now that if they get back to a place of actually being innovative, I think they can. They can have a tremendous subside. But I need to see like this consistent pattern of the fictional.

So people invest in in Meta now.

Or no, no, not if it doesn't get back to one on two twenty three or like one on four. There are other companies that you could have invested in that will give you more safety. And it's crazy to say, like in video is a safer move right now than Meta is.

Well, you can go or you can go to ETF route.

Absolutely two tech two index, No stress.

Franklin Dina Tech fund is what he talked about investing, Can everyone put it in chat?

Investment is not hard.

Just stick to the same blueprint, so vo O, v t I, Apple, Arcosoft if you're trading maybe looking for maximum but they've had an amazing quarter for sure. But if you look from three eighty four down to eighty bucks, that's a hell of a fall.

Yeah.

Yeah, that's the tough and that's the benefit of diversification, right, So index funds, but even the ETF which is more specific if you have you know.

The qqqs of the world.

Yeah, or even on mutual fund like you said, franking Dona take fund where all right, if Facebook does well, your benefit, But you're not putting all your eggs in one, so now you get the full spectrum of all of the different players on the team as opposed to just you know, trying to ride it.

Out with one.

Investing in one stock is usually not a good idea, no, and some people have it's been like a revelation online where it's like, oh, like, but I've always said that it's never been a good idea. I personally said, I don't really invest individual stock. Yeah you can if you want to, but of course there's a lot more risk involved when you're investing with an individual stock as opposed to investing in an index funnel each Yeah, but we've already said that.

Go look at the mass straw down over the last five years of every stock first.

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An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS thirteen gang member from Al Salvador accused of murdering a Texas man of Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Christy Noman the United States

Sponsored by the United States Department of Homeland Security.

Is the index strawt down is how much money you lose from top to bottom. There's a lot less loss. The investment is not hard. People just want to gamble.

And even when you're investing in the ETF, actually look inside of it, Like, look at where the asset allocation is going to. It changes, right, I think metas is it in XLC, is it in communications? Yeah? So look look at the allocation. Is it twenty percent of the ETF or is it twelve percent?

Right?

Like so if it does have a droll down, it's twenty percent of the ETF. Yeah, you want to feel that right, whereas you might in QQQ, I think it's like eight percent, right, So look inside of the ETFs themselves, see the percentage of the allocations, and then make an educated decision. All right, well I want to have some exposure to it. Do I want to have twenty five percent of the ETF or do I want to have seven percent of the ETF.

So what would make me very bullish on Meta is if they build a chet GBT competitor.

And that's another thing.

If I'm comparing Microsoft and their partnership with chat GBT, if they would have had that and it could have fixed a lot of the coding issues while they did the layoffs, I would have.

Been incredibly excited.

They need some ail automation in place in order to be able to make the company grow faster. If they have that in place, I would be incredibly excited. I would be bullish on Meta again at that point. But if I'm comparing Microsoft's Apple versus them, I'm gonna pick Apple and Microsoft every time for sure.

So what's your thoughts on Bacardi settling with jay Z for seven hundred and fifty million dollars And what is this?

What is this even about.

Jay had a couple issues. That's fun putting it out there to the world.

I think it was maybe six months ago where he wanted to see the books I want to deal with do say? And I know I read a lot of the comments and people were saying, hey, he still owns part of it. I get that, But my first thought was if opposed to going through the entire process of revealing books all sales and they agreed to pay out seven fifty, how much do they really owe him?

Yeah, so what he wants to owe him four billion? So he wanted to see the books, and this is how it's being reported.

He wanted to see the big books because he potentially wanted to sell his fifty percent steak in the company. And so Bacardy owns fifty percent of Ducet and I see, I guess Holdings or Liquors owns fifty percent of Duce, and so he was interested in selling his fifty percent stake in it. The problem is the valuation was so low based on what Baccarty was saying. And so when you tell me that the valuation is though, now I need to see the numbers.

Showed me. Showed me the number because he knows his fadary.

He's saying like he's a fifty x multiplier to anything he touches.

He says three Millionately, I think they got some reports where they.

Said they were worth five billion, and Bacarty is saying, like, not, it's worth one point five So if you have it's worth one point five billion, your fifty percent steak is seven hundred and fifty million.

That's what you're entitled to. And so now I have to look at the books.

So they went through little gation for like, like you said, six months, and it's like he finally got to a point where they actually settled on Friday, and the settlement was rather than selling the fifty percent steak, he sold majority of his fifty percent, and so technically that's like he has a twenty four point nine at the maximum cent stake of their company. So now Bacardi's side, they saying, all right, well we're going to agree with that evaluation.

An amazing payoff.

Yeah, right, so that that's almost that's almost a billion dollar transaction based on selling. Now he still has a large steak in the company, like I said, twenty four point nine percent if he did, right, So they still have the majority. But now Bacardi owns seventy five point one percent of.

Do So or to'd be worth in eight years off of his name, right.

Or if the numbers show like he stay settled at three billion allegedly or reportedly, but.

What if it was for.

Or seven or right, and we know during the depression alcohol consumption goes up, they're still going to use his likeness in some way to promote the brand. I will not be surprised if that brand in four or five years is the word twelve or thirteen billion dollars and all of a sudden it was some kind of accounting error to value at one point five or one.

Point And I'm sure he's going to promote it, right, It's not like he still doesn't have ownership in it.

Yeah right, we at the brunch do say he's sponsoring it? Yeah?

Right, So the brand will live on obviously, you know he still has a steak, he's an owner, So why wouldn't you promoted it still generates revenue for you.

That's tricky though, because I hate when these valuation games get played with us in particular, and I guarantee in the year they're going to reevaluate, the company is going to be worth a hell of a lot more.

Yeah, but that and so shout out again kudos to j and the whole team. Right, So if you look at it last year, they need to move with LVMH Yeah, Asu Spade, they have to be part of that luxury company. And we saw the numbers that that did, and so do say was something that kind of was birthed after that.

But you getting I mean it's still a win. I'm still a big win.

Yeah yeah, but I don't want black entrepreneurs to get lower valuations and then matters value at what it's worth. And if I have to ask you who is a more impactful CEO, Jay Z and Mark Zuckerberg, I'm going with Jay every time. Let ja have that slot at Meta for two years unless see what it does.

I know what it would do well impact.

Absolutely like relift the Instagram, relift the Facebook, all the content. It would be dramatically different. So, like I hate that they devalue what the brand was really worthwhile. But don't get me wrong, seven fifty is a win. That's on a conservative low end.

Yeah right, but I mean again, you want to do something great, true greatness? Can you do it twice? He did it with a speed, that's true. I did it with Yeah. What's to say you can't do it again? But shit, you have to No, but you could. Yeah, shout out.

The whole

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