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Welcome to the property pods office hours. This is the part of the show where we answer your questions about business, big tech entrepreneurship and whatever else is on your mind. If you'd like to submit a question, please email a voice recording to office hours of proff g media.com again. That's office hours at proff g media.com. First question.
I'm prof g. This is Tyler and new Brunswick Canada originally from Alabama. I have an investing question for you. I love the company Viori and see they might go public this year. I know you do some Viori ads on your show and I'm wondering if you have any thoughts on investing in this company.
My partner and I are mostly invested in index funds, but it might be fun to buy stock in a company we really like. I find their clothes are super comfortable versatile. When I'm back in the States, I notice a lot of people, especially young people, young guys, wearing Viori at the gym or just out and about my parents nice upper income suburb. It seems like they could be a real player in the athlete's world and possibly a competitor for a little woman. Thanks and I'd love to hear your thoughts.
Alabama to new Brunswick Canada. What the fuck is going on Tyler? What is going on? How did that? How did that happen? How many people are you? I think one of three people that have moved from Alabama to new Brunswick Canada. There's a life story in there. Was it school? Was that someone? Was that Roma? Like what? I'd be very curious how that happened. And if you're happy, and I was hope you're happy there.
I've never been Alabama. I've never been I'd like to go to a football game. Anyways, Viori. So competition is just an incredible thing. And arguably the best performing specialty retail stock of the last, I don't know, 10 years, maybe 20 years is Lulu lemon. And the athlete's life story is just an amazing job. And so what happens when that market gets big enough and ripen up and they have these unbelievable margins and unbelievable stock performance.
But there's also a lot of work since the water and you have new entrance, not only is there Viori, but there's also a lot of so some background on Viori. It's an active wear brand that rivals Lulu lemon and originally set out with focus on selling high end, eth leisure for men. That's kind of their differentiation and late 2021.
And the valuation hit four billion following a 400 million investment from soft bank. Viori currently has over 50 stores and plans to reach 100 by 2026. There's not much sales data publicly known, but in 2021, the CEO told retail dive the Viori had been growing at 250% compound annual growth rate. Wow, that's wild. And Bloomberg reported the Viori is considering an IPO as soon as mid 2024. Okay, so I've told you nothing you don't already know. Should you buy?
I think you take a small portion of your portfolio, if you're inclined and you find this stuff interesting and you put it in individual stocks, you might get outsized returns, you might get undersized returns, but it's fun and you learn about companies and I think it's interesting. And I'm not suggesting everyone do it. I think majority people probably shouldn't because they have better way to spend their time.
But if you and your partner really like the company, what I would say is look at it. And the only thing I would I would try and be mindful of is Viori to me, it might be one of these companies that gets a pretty big pop out of the gates. And maybe does or does not grow into its valuation for a while as a retail investor, you're probably not going to get to participate in the IPO itself, you'll probably have to buy after the first trade.
So what I would do is if you're interested in the company using this excuse to understand more about the company and look at a few things, look at its revenues, look at its EBITDA, look at its growth rate.
And then take those multiples, if it's going public at evaluation of say 5 billion and it's doing a billion of revenue, that's a 5 to 1 sales, market capitalization, what is the same market capitalization for other athletic apparel companies on running is probably come an interesting one to look at because it's another hot brand that's going really fast.
You will them and obviously right look at Nike look at some of the others and get a sense for Birkenstock recently public I would look at them look at it price to sales and just get a feel for where you think the valuation is because.
For example, Birkenstock has not performed that well it's a great brand it's growing it's a they do a great job good management but quite frankly it's valuation at some at some point every stock is a buy unless it's going out of business and at some point every stock is a sell I think in videos incredible company and incredible company I wouldn't get near right now because I just have trouble buying into companies that are that richly valued so what am I saying here.
What price would you buy in and what price is it to rich and then if it hits those metrics and you like it take take a little bit of your money I don't like to put more than 3 or 4% of my net worth and anyone thing and I don't like to put more than say a third and anyone sector whether anyone asset class whether it's stocks bonds real estate private companies because I'm at a point where I want to be really really diversified because I don't have time to make it again it sounds like you're younger than me.
But sure have some fun look at it and using as excuse to understand the market better understand valuation and then maybe jump in and you don't have to buy a ton maybe dip your toe maybe buy a little if it goes down buy some more if it goes up maybe wait a bit any dollar cost in but sure have some fun I think it's a great excuse to learn more about the company and learn more about investing thanks for the question and congratulations on your relocation from Bama question number 2.
It's got Disney is an interesting and perhaps undercover business case right now I got retired as one of the best CEOs of his era and the world to move a lot in the couple years that he was out his job seems harder than ever and he appears to admit as much over production of movies a battle with the Florida governor a big bet on hard to profit streaming model and probably the most public strife with woke what is next for Disney it wasn't too long ago that it was one of the best safe blue ship stocks in every portfolio today it feels like it's a lot of fun.
Well I got stabilized just wanted to hear your thoughts on this thanks. Thanks anonymous so I picked three stocks every year for fun and 2023 I picked Chinese Internet stocks oops that was down there down I think the index I recommend it was down 22% I picked meta disco
champagne cocaine quadruple then I picked air B&B which I think was up like 6 to 80% so my stockpicks for one is we talked about alphabet to Warner Brothers discovery because it's trading it I think distress prices by the way I think it's off 15 or 20% since I picked it and my third was Disney and the reason why I'm going kind of old school here is I think tech is a little bit overvalued and it scares me right now you know Warner Brothers discovery and Disney are trading at 10 year lows now let's talk specifically about Disney.
It has this juggernaut business that's under reported specifically the parks business which I believe did about 10 billion and ebit to last year and is I don't want to say it's singular but in minimum it's a duopoly and that is universal is got some great parks my kids the teens kind of like universal more now when there are kids they like Disney
but you have incredible notes Netflix cannot build a park in 10 or even 20 years the rivals these parks and it all you need to do is go and if you if you have kids you have to go otherwise I call child services on you and it is the seventh ring of hell you are waiting in lines for hours it is bad food the rides are okay but they're two or three minutes and it is thousands of dollars they are literally these things are cash
gushers in addition you have the streaming business which has been challenged because there's been overspending and everyone's been chasing Netflix who had the unique advantage of someone Amazon that the market was providing it with cheap capital because they kept on growing and delivering against their subscriber
growth numbers the market appears to be rationalizing and streaming specifically it's consolidating Netflix for the last two years is not raise their content budget that's the first time they've done that in history and they've raised their prices what does that mean it's given every other player permission to cut costs and increase
prices which means which means that that market should get a lot better or a lot less worse activist investor black wells is urging Disney to come up with an AI strategy to increase shareholder value that seems like a bit of a reach estimating the Disney shares could see a 129 percent increase if they do so I got that number
yeah he's trying to turn Disney into technology company I don't know if that's going to work here I think that is kind of AI washing but I don't think they need to another activist fund trying has criticized Disney sports strategy including its recent investment in Epic Games actually that's a great investment
this is Nelson Pellts who's been kind of heckling from the cheap seats if you will here because the stock is so cheap and these says it's been mismanaged specifically around their succession strategy which has kind of been non-existent Disney's sold shareholders that it's plans to reject the nominations from Trian from Nelson Pellts they reported earnings per share of a buck 22 for the recent quarters are passing Wall Street's expectation by 23 percent
it's earnings per share for the entire fiscal year would grow by minimum 20 percent compared to 2023 according to Disney their streaming service was predicted to lose 400 million in the quarter but the loss ended up being less expected at 138 million which is a good news that's a quarter of a billion
dollar surprise to the upside I believe is Disney plus will be profitable by the fall see above the economics were rationalizing and despite its challenges Disney has rejected it will bring an 8 billion of free cash for this year
during pre-pandemic levels in some I think this stock if you look at the fact it's at a 10 year low it's trading like a distressed company right now as far as I can tell in terms of its valuation it has singular intellectual property everything from star wars to the men and tights and capes that they own I mean it's been a great acquire for the most part
it's had some flubs with the most part it's had good acquisition to slave acquisition of the fox assets was kind of a giant thud but in some I just like this a lot I think they have modes the size of the Amazon here the parks the IP I think the streaming business is going to kind is going to distill down to a few players YouTube Netflix are kind of going to be the 10 ton grills in the space and then I think the niche players are going to be HBO for kind of our
traditional stuff HBO's culture they continue to produce kind of the water cooler content and also Disney plus because I think it has a great positioning it's sort of the the stream we have to have you have to have if you have kids in addition when they consolidate around who will another stuff I think it'll be a pretty decent offering daddy like daddy like we have one quick break before our final question stay with us. Support for property comes from fund rise.
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grip and involve bank and trust members FDIC. Welcome back question number three. Hi Scott I'm a happily married 60 year old man with a three year old son. I don't know how I turned 60 so quickly but I think the fact that my nose
was buried so deeply and running my business that time got away from me anyway I sold my business a few years ago and I'm now retired and sitting on a pile of cash which is mostly good but I spend way too much of my time thinking about how I can set my son up for success after I've gone.
I know a handful of people who grew up with trust funds and none of them are very successful people and by successful I don't mean financially well off I guess I would define success as being a good person who is a functioning member of society. I know you're working on a book about boys and I wonder if you have any insight into what I can do to give my son what I had which is the opportunity to go out into the world and slay a dragon of his own.
I love this question and the honest answer is I barely even have a view much less the answer this is something I struggle with every day you know whether or not to buy a very stock I I can answer that how do you instill character and grid into your kids and your sons such that they live happy rewarding lives after you're gone I think that's you know or while you're alive I have so many friends who are struggling with their adult children.
And it takes over their lives we we're under this illusion that once our kids are 18 they're kind of out on the wrong and maybe if you're wealthy pay for their college but you know this all this whole bullshit about once a college around the
own I don't know anyone that is that it just kind of turns off their kids tap that doesn't I mean eight you're going to be there for them emotionally but also generally what happens after college with the majority of wealthy people I know is their kids are generally speaking good kids but can't afford to pursue their dream of fashion or attack and live in New York or San Francisco respectively.
And so mom and dad help them out and then you want them to live near you and then when they have kids they need a house and things have gotten so expensive for young people that is very difficult for wealthy people not to continue to support their children and I see it across all my friends I like you had kids later in life.
And then it kind of turns into you know what point is it no longer you know it's it's no longer a safety net but a hammock if you will this is really a tough one what I would say is that in terms of trying to teach your kids character or your son character and how to be a good person.
I think a lot of it is in the batter and I'm not suggesting it's kind of how I look at boards a bad board can fuck up a good company but a good board can't save a bad company and if you want to believe nature over nurture just have to have a second because the only thing I can guarantee whenever I speak to people are having their second kid.
I tell them the only thing I can guarantee is it'll be nothing like the first my oldest walks into my room or used to walk in my room when it was living with us is at boarding school now.
He would know joke walking on the weekends and say already be dressed holding a bear like his favorite bear and you would say dad let's make a plan and I'd be like where the cameras was like something out of a hallmark commercial so polite so sweet so loving and I joke that my youngest is a terrorist constantly assessing.
The household for vulnerabilities such that we such that he can strike more at our weakest I mean he's he's joyful and so interesting and so curious and so just fucking hilarious but he's tough he's difficult they're just so different in the reality is we haven't treated them that differently so first what I would say is a lot of what happens with your son isn't up to you and isn't your fall and it's frustrating that you're not going to have as much impact on him as you'd like to think.
But also if he doesn't I don't know if he has some hiccups or he isn't the person you initially thought he was going to be. Forgive yourself what I would say is key in the study show this to raising successful boys you are doing and that is the key to a successful boy in terms of what we can control is the following having a male role model and you don't have to be virtuous you just have to be present.
You have to be a man that's trying to be righteous that's trying to do the right thing that sets a good that sets a great example by being loving and generous and supportive and affectionate with his mom or your partner that works hard that treats neighbors well you know people say well what do you tell your kids you can't tell your kids anything the only thing you can do is model right and hope they pick up on some stuff and just be there for I love that notion that you know when your kids leave you tell them are I'm not going to be there for you.
You can't just leave you tell them are what happens when the bills become too much you come home what happens when you're you know get someone breaks up with your breaks your heart come home will always will always be here for you at the same time that trying to strike that balance between what to give them such that they can get a good start but not enabled them such that that they become dependent upon you and never have the motivation to build as you said to slay the wrong dragon the only the only reason I have what I have is because I didn't have what my
kids have and I wanted it and it sounds like you come from the same background so some of the things we try to do when I say try I mean we're not great at it chores connecting the value of money we get we get them set up on this
credit card thing called green light where we put money and they save I'm working with my son on buying sneakers you down on the say I app and he does these sneaker drops and we try and sell them at a profit and we shopify I'm trying to get him to connect money with effort and
profit and and by the way on one we bought a pair of three hundred-dollar sneakers and we couldn't sell for 200 and my go that's a oxen that was really disappointing and was really upset but that's a that's a life lesson obviously doing well in school but I'm blathering on a lot of this a lot of
this my brothers you love them you you're there for them but a lot of the you know it's like being a picture once the balls out of your hands it's kind of it's a little bit out of your hands but you have already checked the box that for boys is the box to check and that is your son has a loving
caring and what sounds like impressive man involved in his life and that that every study across ethnicity's geography shows that that is the key to raising successful young men thanks for the question that's all for this episode again if you'd like to submit a question please email
a voice recording to office hours at Probtion Media dot com this episode was produced by Caroline Shagrin Jennifer Sanchez is our associate producer and Drew Burrows is our technical director thank you for listening to the Probtion Pob from the box media podcast network we will catch you on Saturday for no mercenomalus as read by George Han and on Monday with our weekly market show.