Logo
    Search

    Podcast Summary

    • Impact of High Oil Prices on Consumers and InflationHigh oil prices lead to increased household spending on gasoline and contribute to inflationary concerns, but their percentage in GDP is relatively small and not a long-term inflationary instrument. Recent price increases are due to supply and demand imbalances.

      The increase in oil prices, now at $90 a barrel, has a significant impact on consumers due to the high household expenditures on gasoline. This effect is amplified by the fact that oil prices can fluctuate rapidly, making it a key factor in inflationary concerns. However, it's important to note that oil's percentage as a component of GDP is relatively small compared to historical levels, and over the long term, it's not an inflationary instrument. The recent price increase is mainly due to supply and demand imbalances, with OPEC, particularly the Saudis, cutting production. Despite the short-term challenges, oil's role in the economy remains crucial due to its wide-ranging applications.

    • Impact of oil prices on industries and use of hedgesOil prices impact industries heavily, but companies may blame them for profit issues. Apple faces pressure to innovate, but it's hard to follow the iPhone's success, and economic conditions affect product demand.

      Oil prices significantly impact various industries, particularly those that rely heavily on fuel like airlines, and these industries often use hedges to manage their fuel costs. However, they may attribute their profit issues to oil prices as a convenient excuse, even if it's not the sole cause. Another key takeaway is that companies like Apple face increasing pressure to innovate and deliver new, game-changing products, but it's challenging to follow up the success of the iPhone, which revolutionized the market. Additionally, economic conditions, such as consumer spending, can influence demand for products like Apple's iPhones.

    • Apple benefits from extended iPhone upgrade cyclesApple's reliance on carrier sales and consumers' longer upgrade cycles positively impacts their revenue, while the tech industry moves towards longer cycles, potentially affecting others' revenue streams.

      The upgrade cycle for iPhones and other tech devices is extending due to improved quality and longer contract agreements with carriers. Apple has benefited from this trend as most iPhones are sold through carriers, allowing consumers to upgrade less frequently. The recent IPO of ARM Holding, which was underpriced by SoftBank to ensure a successful debut, also highlights the importance of timing and market conditions in the success of an IPO. From a product standpoint, Apple continues to roll out new features, but consumers may not feel the need to upgrade as frequently as before. The tech industry as a whole is seeing a shift towards longer upgrade cycles, which could impact companies' revenue streams.

    • IPOs and company valuationsExercise patience before investing in overvalued IPOs. Consider a company's fundamentals before making a decision.

      Arm, a company heavily involved in the tech that powers our smartphones, is considered essential to the industry and has seen significant demand and excitement for its recent IPO. However, its high valuation, which is over 25 times sales and 130 times earnings, may be a cause for concern for potential investors. It's important to remember that IPOs are sold, not bought, and to exercise patience before making an investment decision. Meanwhile, another company, Birkenstock, which has been in business since 1774, also caught the speakers' attention with its impressive revenue growth, gross margins, and diverse customer base. Despite generating over $1 billion in revenue annually and having a strong brand, Birkenstock's valuation may be more reasonable compared to Arm's. It's important for investors to carefully consider the fundamentals of a company before making an investment decision.

    • Birkenstock's Luxury Transformation and MemesBirkenstock's success as a luxury brand and the importance of staying patient for long-term investors during market fluctuations

      Birkenstock, a company known for its comfortable footwear, is experiencing a fashion-forward moment and is considered a luxury brand despite its mass appeal. The company, which is partly owned by LVMH, the largest luxury brand house in the world, has seen significant growth and is being sold at a higher price than its previous private equity buyout. Birkenstock's success can be compared to ARM Holdings, another company that nailed its design and architecture and is now enjoying the long-term benefits. Investors interested in the name might want to wait for the company to season as a public entity before making a move. The entertainment industry is moving at a fast pace, as evidenced by the quick adaptation of Ben Mezrich's book "The Antisocial Network" into the movie "Dumb Money," which recounts the GameStop and Wall Street Bets drama. The meme stock saga serves as a reminder for buy-and-hold investors to stay patient and not get swayed by short-term market fluctuations.

    • The GameStop Saga: A Community Challenges Wall StreetA Reddit community led by Roaring Kitty bought GameStop stock, causing a price surge and highlighting the power of social media and individual investors

      The GameStop saga of 2021 was a remarkable event where a community on Reddit, led by a figure known as Roaring Kitty, came together to buy a struggling stock, GameStop, as a way to challenge Wall Street hedge funds. This all unfolded during the pandemic when many people were stuck at home, and the event gained significant attention when the stock price skyrocketed from around $3 to $500 in a matter of days, with millions of people participating. The author, who had a background in writing about gambling and penny stocks, was quick to recognize the potential of this story and sold a book proposal to MGM Studios just two days after the event began. The event highlighted the power of social media and the determination of individual investors to make a difference in the financial world.

    • Moving Quickly in Investing: Agility vs. Long-Term FocusAgility in investing can lead to success, but long-term focus on fundamentals is crucial for some. Understanding retail trader emotions through social media can enhance investment models.

      In today's fast-paced world, particularly in the realm of investing, moving quickly is essential to success. The author, who is known for her rapid writing process, emphasizes the importance of being agile and getting a project out before competitors. However, she also acknowledges that this method is not for everyone and can be torturous. For long-term buy and hold investors, it's crucial to look beyond short-term volatility and focus on the fundamentals. Yet, ignoring the emotional element of investing can be detrimental. The author suggests that incorporating social media and understanding the retail trader's emotions are necessary components of investment models. Ultimately, it's essential to process and adapt to the irrationality of the market, even if one doesn't participate directly.

    • Understanding the origins of significant market movementsPatience and understanding a company can lead to better long-term investment results. Focusing on the origin story of significant market movements provides valuable insights.

      Investing in the stock market, especially during volatile periods like the GameStop saga, requires patience and a deep understanding or connection to the company. Buying and holding onto a stock you believe in, rather than trying to time the market, can lead to better long-term results. The author, Ben Mezrich, emphasizes this in his experience with GameStop and his book "Dumb Money," which focuses on the origin story of the meme stock phenomenon. While there were intriguing developments that occurred after the publication of the book, such as the controversy surrounding Robinhood and Ken Griffin, Mezrich chose to focus on the origin story to provide a comprehensive understanding of the events. The idea of "dumb money" and the belief that the GameStop situation was a "sneeze" rather than a "squeeze" are heated topics among investors, and exploring these ideas further could make for interesting discussions. Ultimately, the goal is to understand the origins of significant market movements and learn from them. "Dumb Money" is now in theaters, and Ben Mezrich's next work, "Breaking Twitter," is coming out this fall. Stay tuned for more stock insights on Motley Fool Money.

    • Effective brand partnerships create buzz and valueGolfer Viktor Hovland's love for Chipotle led to organic advertising, illustrating effective brand partnerships. Mergers like Schwab-TD Ameritrade can lead to account attrition but also significant impact on larger institutions.

      Effective brand partnerships can create significant buzz and value for both parties involved. The speaker used the example of Viktor Hovland and Chipotle to illustrate this point, as the golfer's public affection for the brand led to organic advertising through social media. Another topic discussed was the recent merger between Charles Schwab and TD Ameritrade, and the potential for account attrition as a result. The speakers agreed that while brokerages are typically seen as sticky, there are circumstances that can lead to account migrations. They also noted that the impact of such mergers on larger institutions like Schwab can be significant. Overall, the conversation highlighted the importance of understanding customer needs and preferences, and the potential benefits of strategic partnerships and mergers.

    • Schwab's Transformation and PayPal's GrowthSchwab is undergoing a transformation after criticism, while PayPal continues to expand partnerships and grow, making it a significant player in digital payments.

      Despite facing challenges, Schwab is making a significant transition, and PayPal, with its expanding partnerships and growing network, continues to be a major player in digital payments. Schwab, which faced criticism in the aftermath of the Silicon Valley Bank situation, is undergoing a transformation. PayPal, on the other hand, is deepening its relationship with Uber and evolving into a commerce app, making PayPal a more integral part of the platform. PayPal's acquisition of Venmo has given it a sleek, popular app, but its attempt to become a "super app" may have hindered its innovation. While both companies have their merits, PayPal's growth and strategic partnerships make it a noteworthy addition to a watchlist.

    Recent Episodes from Motley Fool Money

    "Two Things Can Be True"

    "Two Things Can Be True"
    The market may be overvalued, but some stocks are underpriced. (00:21) Tim Beyers and Mary Long talk about whether we’re in an AI bubble, lofty tech valuations, and what an unchecked Sam Altman might mean for the rest of us. Then, (17:28) Sanmeet Deo and Ricky Mulvey discuss energy drinks as investments, and whether Monster or Celsius deserves the title of top dog. Companies discussed: CRWD, PANW, MSFT, MNST, CELH Host: Mary Long Guests: Tim Beyers, Ricky Mulvey, Sanmeet Deo Engineers: Dan Boyd, Tim Sparks Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 10, 2024

    Paramount Has a Buyer

    Paramount Has a Buyer
    A couple of weeks ago, Skydance Media’s offer to buy Paramount looked like it was dead. Now, both companies have a joint press release announcing the deal. (00:21) Jason Moser and Ricky Mulvey discuss: - What Skydance Media is getting in the Paramount deal. - Why Netflix is winning the streaming wars. - Questions that investors should ask before putting money in a turnaround story. Then, (15:58) Alison Southwick and Brian Feroldi kick off their summer school series with a history class on markets. Companies discussed: PARA, NFLX, DIS, PYPL Learn more about the Range Rover Sport at www.landroverusa.com Host: Ricky Mulvey Guests: Jason Moser, Alison Southwick, Brian Feroldi Engineers: Dan Boyd, Desiree Jones David Ellison interview on “The Town”: https://podcasts.apple.com/us/podcast/skydances-david-ellison-on-his-plans-for-paramount/id1612131897?i=1000661591016 Brian Feroldi’s newsletter: https://longtermmindset.co/newsletter/ Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 09, 2024

    Americans are Flying, Airline Stocks are Not

    Americans are Flying, Airline Stocks are Not
    (00:21) Asit Sharma and Dylan Lewis discuss: - How the airline industry’s focus on capacity and being able to supply more flights means fares are low, even in the face of record demand. - Eli Lilly’s $3.2B acquisition of Morphic, why it’s interested in the inflammatory bowel disease markets, and a few risks to keep in mind for the high-flying provider of weight-loss drugs. (14:39) Fool analyst Kirsten Guerra talks with Mary Long about her investing journey, and a career pivot that took her from rocks to stocks. Companies discussed: DAL, UAL, AAL, JBLU, LUV, LLY, MORF Host: Dylan Lewis Guests: Asit Sharma, Kirsten Guerra, Mary Long Producer: Ricky Mulvey Engineers: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 08, 2024

    Axios CEO on Media’s Existential Crisis, Entrepreneurship, and Luck

    Axios CEO on Media’s Existential Crisis, Entrepreneurship, and Luck
    What happens to a publisher when an AI personal assistant can just give you the news? Jim VandeHei is the CEO of Axios, the co-founder of Politico and the author of Just the Good Stuff. Mary Long caught up with VandeHei for a conversation about: The “aha” moment that created Politico. How AI changes our relationship with information. Practicing good times paranoia and bad times optimism. The case for teaching kids how to play poker. Companies mentioned: ABNB, JPM Host: Mary Long Guest: Jim VandeHei Producer: Ricky Mulvey  Engineers: Desiree Jones, Austin Morgan Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 07, 2024

    How US Presidents Manage Money

    How US Presidents Manage Money
    Reagan knew how to budget. Jefferson knew how to party. Megan Gorman is the author of the upcoming book, “All the Presidents' Money: How the Men Who Governed America Governed Their Money.” Gorman is also the founding partner of Chequers Financial Management Robert Brokamp caught up with Gorman for a conversation about: - What FDR, a “bit of a trust fund kid,” did if he needed money. - How Ronald Reagan’s humble beginnings impacted his finances. - Why a Great Depression president was a great investor. Host: Robert Brokamp  Guest: Megan Gorman Producer: Ricky Mulvey Engineer: Tim Sparks Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 06, 2024

    2024: Top-Heavy, AI-Fueled, Supply-Constrained

    2024: Top-Heavy, AI-Fueled, Supply-Constrained
    It’s our mid-year review show! We talk through the market’s strong start in 2024, how it’s being driven by the big names, and where the deals might be. (00:21) Jason Moser and Matt Argersinger discuss: - Why the market is up, but top-heavy in 2024, and the types of stocks currently trading at a discount to big tech. - Four defining themes of the year so far: AI, interest rates, next-gen tech, and the pivot to value for consumers.  - The state of real estate, and why low supply means prices may stay high in residential for a long time, even in spite of high rates. (19:11) Matt and Jason break down two stocks on their radar: ABM Industries and Rubrik. Stocks discussed: NVDA, MSFT, AAPL, ABM, RBRK Host: Dylan Lewis Guests: Jason Moser, Matt Argersinger Engineers: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 05, 2024

    What’s Upflation?

    What’s Upflation?
    I don’t know, what’s up with you? Jason Moser and Mary Long discuss Tesla’s delivery numbers, how personal care companies are dealing with declining sales, and a mattress merger that might not come to be. Read the Bloomberg article mentioned here. Companies discussed: TSLA, TPX Host: Mary Long Guest: Jason Moser Producer: Ricky Mulvey Engineer: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 03, 2024

    Chewy’s New Kitten

    Chewy’s New Kitten
    This investor is not a cat, though. Asit Sharma and Ricky Mulvey discuss Chewy becoming a meme stock, Cedar Fair and Six Flags merging into one company, and headlines from 2029. Companies discussed: CHWY, SIX, FUN, AMZN, WMT Host: Ricky Mulvey Guest: Asit Sharma Producer: Mary Long Engineer: Tim Sparks Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 02, 2024

    Canada's Market: Apathy Means Opportunity

    Canada's Market: Apathy Means Opportunity
    It’s Canada Day! We celebrate our neighbor to the north with a mid-year check on the state of Canada’s stock market.  (00:21) Jim Gillies and Dylan Lewis discuss: - How the TSX stacks up to the S&P 500 so far in 2024. - Why investor apathy in Canada is creating some low valuations and great buying opportunities. - Two Canadian stocks to watch: MTY Brands and Kit’s Eyewear Companies discussed: BMO, BNS, RY, ENB, SHOP, MTY, KITS Host: Dylan Lewis Guests: Jim Gillies Producer: Ricky Mulvey Engineers: Dan Boyd Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJuly 01, 2024

    The Global Cold Rush

    The Global Cold Rush
    Nicola Twilley is the author of “Frostbite: How Refrigeration Changed Our Food, Our Planet, and Ourselves” and the co-host of Gastropod. Ricky Mulvey caught up with Twilley for a conversation about: - The cold chain and our economy. - Finding investment opportunities inside of refrigerators. - And one reason why Unilever gave up on ice cream. - A new technology changing how we eat fruits and vegetables. Companies mentioned: COLD, WMT, UL, YUMC Host: Ricky Mulvey Guest: Nicola Twilley Producer: Mary Long Engineers: Desiree Jones, Chace Pryzlepa Learn more about your ad choices. Visit megaphone.fm/adchoices
    Motley Fool Money
    enJune 30, 2024

    Related Episodes

    UK Peak Rates Debate, Building To Rent, & Man Utd Shares Plunge

    UK Peak Rates Debate, Building To Rent, & Man Utd Shares Plunge

    Your morning briefing. The news you need in just 15 minutes.

    On today's podcast:
     (1) Former Bank of England rate setter Michael Saunders says interest rates may already have peaked.

    (2) Brent crude has topped 90-dollars a barrel for the first time this year on OPEC+ supply cut news.

    (3) ARM is aiming for a market value of close to $55 billion, below initial expectations.

    (4) Manchester United's shares plunged following reports that the club is no longer for sale.

    (5) As higher rates push many UK landlords out of the market, bigger players are eyeing building housing blocks to rent. 

    See omnystudio.com/listener for privacy information.

    Revisiting the IPO Boom

    Revisiting the IPO Boom
    Editor's note: This episode was recorded before news of the Coinbase's insider trading case was made public on Friday. 2021 was a milestone year for companies going public. In 2022, the tide turned. Dylan Lewis and Brian Feroldi look back on the IPO boom and discuss: - Reasons why companies go public - Newly-public companies that may never come back to IPO levels - Questions for investors to ask even when financials look strong - The trends that hit Robinhood and Rocket Mortgage - Lessons from pre-revenue companies that went public Stocks mentioned: COIN, HOOD, RKT, NKLA, SPCE, JOBY, RIVN, LCID, SEMR, INTU Host: Dylan Lewis Guest: Brian Feroldi Producer: Ricky Mulvey Engineers: Dan Boyd, Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

    What's behind the rising tide of financial scams?

    What's behind the rising tide of financial scams?
    Financial scams are on the rise. The coronavirus lockdowns have seen a fresh burst of investment cons with fraudsters impersonating legitimate companies to steal tens of thousands of pounds.

    Unwitting savers are being lured into fake savings and investments, such as fixed term bonds or share schemes, and transferring large sums to fall victim to clone fraud.

    What’s behind this burst of crime and how can people protect themselves?

    On this week’s podcast, Georgie Frost and Simon Lambert discuss the rising tide of fraud, how to stay safe and what more can be done to combat it.

    Also, on the show, the pair look into the cases of the mortgage prisoners, trapped paying high rates ever since the financial crisis while others have seen their monthly payments slashed.

    The Deliveroo float is also on the agenda – why did the shares slump as it hit the stock market?

    And finally, campervans are in hot demand, making this a good time for VW to be launching its new mini Caddy California: with sleeping space for two and an optional tent that turns into a home on wheels for all the family. Would you want one?