Welcome to Talk Money Weekly - where I cut through the noise and curate the best money-related topics from the web.
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Markets & Business
TMW #37: Kazakhstan Uranium Meltdown
What’s going with energy prices? Since COVID began, oil has clawed its way close to $100. This is a result of many things including Omicron, supply/demand, and unrest in Kazakhstan. I interview energy-expert: The Weatherman, for his insights. We learn that inflation, of course, has a lot to do with price increases.
TMW #38: Microsoft's $70b Video Game
Microsoft bought Activision Blizzard for $70B! That’s a ton of money. How does this fit into Microsoft’s strategy with the metaverse? I break down the acquisition and do a little deep dive on Microsoft and why our parents should’ve left us alone when we wanted to play more games!
BTS member Jungkook had Chipotle for the first time…and called it 'Chicotle.' What Happened as a result? The world exploded! Chipotle changed their name to Chicotle on Twitter and greeted “Army” - this is what BTS fans call themselves....according to my sister. Don’t ever talk shit about BTS to her, or you’ll be like me, a victim of the silent treatment. It’s deadly.
BTS Army went to Chipotle in droves and bought burritos. Then Chipotle and Army did a collaboration for free burritos. All because one sweet member mispronounced a word. This is the power of BTS and free advertising. I mean, I wish BTS would say how amazing this newsletter is and my podcast so that Army fans would show me that type of love. I LOVE BTS! (Puts on BTS T-shirt, and joins Army).
Apparently every brand sells out of stuff when BTS mentions their product. BTS is the new Oprah...
Be Innovative or Die
I love this take. People change their jobs quicker now than ever before. There’s no ten years at a company. Have you spoken to Gen Z? If you work at a place longer than 9 months, you’re a f*cking loser.
In tech, innovation is key. People get bored. They get complacent. Engineers and designers get paid really well, so if innovation is over, let’s assume the company has done really well, meaning those employees have cashed in quite a bit. If they’re bored, they’re going to leave to do something exciting. They already have the money, and they can leave to get competitive pay.
This is why it’s so important for big behemoths to stay fresh. Keep creating and have a great culture. Retaining talent is harder now than ever. There’s so much capital out there funding new startups.
When There’s Blood on the Streets
Markets are getting smashed of late, but there’s always a time to buy. I love this line “the future just got a lot cheaper.” Nothing has changed if you still believe what technology can achieve. Companies that are doing things with a 5-10 year vision, should be more attractive now than they were before. They’re cheaper in price.
This is the right way to think about investing. I was talking to my friend today about this. If your investment crashes based on market pullbacks, and you freak out and want to pull out- you simply have too much invested and you’re not in this for the long run. If you have pure conviction, when something pulls back, you should see it as “now it’s cheaper.”
Except Peloton. It’s cheap, sure….but wow. I feel terrible for employees of that company. Doesn’t look like anybody wants to pick up that stock. Might be a good time for a big company to swallow them up on a discount.
Tech Bubble 2.0
Some tech stocks are down 50%. Keep in mind, they had massive runs during the last 24 months of Covid. Most of them have gotten to prices way beyond what they’re worth. This is a correction, not necessarily a crash. Of course, you do have some companies that are just absolute shit and are overvalued. Can we say SPACS? I say that joke, but my heart hurts deep because I have a couple of investments that are SPACs that are down 50%.
HAHA, but it’s ok, it’s not like I was going to use it for anything special! (Tears fall down face).
The difference in the tech bubble is that theres hundreds of shit companies going public for no good reason. Now there’s less, and most of us know they’re shit. It’s small in comparison to the overall market. The Nasdaq is only down 15% in comparison. This is why we buy index funds over making individual stock bets. In a market downturn, it protects you, but when stocks go up, you tend to miss out on upside. The give and take. (Wipes tears from face).
It Takes Decades to a Massive Company
Crazy to see these numbers together. It takes time, but it looks like it takes less time by the decade. I wonder how these numbers will change in 10 years.
It won’t matter because I would’ve lost all my money from these stupid SPACs and I won’t care about anything anymore. (Pours tequila, the cheap kind because I’m a loser).
That's all the news from this past week!
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