All right, Kathy's, we are back. It was a long, long break, long weekend, but we are back
and having an incredible episode. We first talk about American exceptionalism. Yeah. Rare.
Rare. People say those words rare, especially for Anin. No, especially for the woke. It's
very high for the woke. I said that on the podcast with drama, which you weren't on, that I'm
at where the American flag at all day. Okay. All right. And then we talk about record travel.
Cannot. Americans cannot spend enough money. No. It's unlimited. Too much money. Too much money.
We talk about Elon Musk and when he's up to a Twitter and some of the new competition on Twitter
that they're going to start facing this week. So we talk about that. Check it out.
Entertainment companies, profits have fell over 90% in the last decade. Crazy. Then we have some
shout outs. We got winners, losers, content. And we have a really great question
about from a Kathy about one of our friend's companies. Yeah. Awesome.
Let's get into it. Let's go.
Gosh. Ladies and gentlemen.
All right, Kathy's. We are back. We had a long break. It was a long weekend. We're out here
celebrating America. America first. The greatest country in the history of civilization. The greatest
social experiment in the history of civilization. Yeah. Too much diversity. No, it worked.
That's the point. So I think it's good to reflect in what we think is the most divisive we've
ever been in the country, especially if you look at social media and watch cable news. You would
think the country is like in shambles and people from the outside looking in would love to believe
that. And I think it's exact opposite. I think the divisiveness is literally only on social media.
I think in person, 95% of society is functioning pretty normally. Yeah. I think our country has
plenty of challenges. And they're all very important. But it's still the greatest place in the
world to come with nothing and provide for your family. And I saw a lot of people like our friend
in the hall who's an extremely successful venture capitalist and founder posted like this beautiful
note. Yeah, his parents, his parents how they came with nothing. And you know, they were able to
provide for him to be able to be super successful now. And I think it's an incredible story,
but it's it's very relatable because like we have so many friends including our own parents that
came with nothing. All of our parents friends. All of our parents friends came with nothing. And
that's not possible in other countries. It's zero. Yeah, zero. Okay. You know, there's unicorns
in certain countries. Yeah. Like you can move to Nigeria. There's Indians that have become successful.
Yeah. To be fair, there's Indians who have immigrated everywhere in the world that have been successful.
I don't know about all the other groups. But anyways, like you can come here and
you can make it. Yeah. Anyone can make it. I mean, some of our most successful friends didn't go to
college. Barely graduated high school. Barely graduated high school didn't go to college.
Went to a college that I don't even remember. Yeah. And these are three of our close friends. Yeah.
That are extremely successful. And that's unique to this country. Yeah, I think I think what's
interesting. There was a statistic showing how like Gen Z or not as patriotic as previous generations.
That is 100% social media fault. Yep. Because you want to make it feel like it's so fucking bad here
because you've never done anything. You've never been anywhere. You've never experienced anything.
And you just have this weird feeling that like we are falling apart because of social media,
right? They'll tell you crime is at all time. It's not nowhere near. Crime was way worse 40 years
ago than it is today. You know, there are so many important statistics where our countries
have better shape. Do we have problems? Of course, there are many things that we are still
falling behind on and we could be better at. But for the amount of people that live in this country,
the amount of opportunity there are. And it is very much like if you want it, you can get it
society. And so it is frustrating for people who don't want it and still believe they deserve it.
Yep. Those people are fucked. Yeah. Those people are not going to be in a good, good situation.
Yeah. Listeners to the pod who we both know. This is like an inspiring story. I've told this to
a lot of friends. He was 18 years old a year ago. So now he's probably 19. Listen to the pod came in
and had a conversation with us. I'll leave his name anonymous because I don't know if he wants
the story out. He moved from Michigan to San Francisco and was like, I don't want to go to college,
I want to get into tech. You know what he did? He hung around Stanford's campus for like six months.
Yeah. Just meeting people that were like computer science grads and he hacked his way in. Yeah.
So like meeting all these people in technology, then he got into a hacker house. Yeah.
In San Francisco, just meeting these people from Sanford. He's in YC's new batch. Yeah. YC is the
Harvard of technology. Yes. And he's 19 years old. Yeah. You can't do that anywhere else. No.
People don't realize like there's like a true class system in the rest of the world.
Where if you are born poor, you're kind of fucked. Right. It's really hard to get out of that.
If you're born rich, you're great. You're always gonna be rich. But like in America,
you a poor person can become rich. A rich person can become poor. Like the kid I'm talking about.
Like I have no doubt in my mind. He's gonna be filthy rich. Yeah. He's gonna be extremely successful.
He's probably gonna build five companies. Yeah. He'll be an investor and he's gonna crush it. Yeah.
But it's his pure willpower. Right. Like he wanted it more than the next person. And so he got it.
Yep. And he found his shortcut. And I think, uh, yeah, look, I think given how, uh,
annoying social media is because the thing that that's weird is at this moment,
like for example, like I I was selling the USA hats, you know, for fun for group chat. People
associated that with MAGA. Yeah. We had drama and I talked about it and I was very clear like
I'm very pro-America. Yeah. The thing is, it's like anything symbolizing the American flag
is viewed MAGA now. What does that mean? Yeah. It's you at the end of the day,
like, and I know this is like the statement that people always say and I don't like to say it either.
But like if you actually dislike the country, your community and everything this city,
the state that country stands for, you should leave. Yeah. I mean, but I don't like to say that
flippantly saying like, oh, you should just leave. But like if you actually think, like people,
if you actually think LA is a horrible place, then you shouldn't live in LA. You should live in
another city. If you think America is a horrible place, you should leave. I mean, just from our
friend circle, LA has so many challenges right now. I don't have a personal friend that left.
Do you? I know, like actually in the inner circle, one of Haley's good friends left.
Okay. That's one person. And by the way, they are dying to come back. It was an experiment
and they're just like sitting at 117 degrees is very different. Yeah. And they're just like not,
you know, they're missing their friends. They're family. They're not from there. They're from LA.
So yeah, look, I think and everyone we know, maybe they move to the west side.
Like that's like this. They move to the pal saints. I think that's where most of people who
complained, complained about living in West Hollywood, central LA. You know, those people were like,
fine, I'm going to the Brentwood. Right. Five miles down. Yes. That was the big move that,
you know, families made. Yeah. They moved to the valley. But I know a lot of people have moved to
the valley. So that's why it's overstated that, you know, my everyone's in Miami. Like,
that was people from San Francisco. Yeah. It was no one from LA. Yeah.
Look, I think, well, I think I think in general, this, everything was so overblown. Everything
about COVID was overblown. Every which way, how we reacted to it, how much money we spent,
how we locked everything was just we everything was we lost all sense of like, like middle of the
reason reason, common sense, everything became because everything became political. Every decision
that's made in the world is not political. Everything. Yeah. No, you be better than Ben and Jerry's.
You're woke. Right. You drink Bud Light. I don't even know what you are now. I asked for a Bud Light
at our friend's house yesterday. Did they have it? He gave him a Dello.
But so funny. Yeah. It's funny because like, I don't want to get into the the outricks of the Bud Light
situation, but we were all in the pool. And he was like, you want a beer? And I was like, I want
a Bud Light and he started laughing and just handed me a Dello. Yeah. It just locked up. Yeah.
And again, Bud Light, my god damn house. But it's insane that it's become a laughing point.
No, I was joking. Yeah. I think I said it here. I knew the brand was toast. And people don't
realize like, everything is so crazy now. Like we were in Stab Harbor this weekend with their
family for family reunion. And I don't know if you noticed that the coffee shop is so looking.
I was hoping you didn't see that. I was talking about the first thing I did. I said, oh,
they're Bud Light. I'm gonna count how many cans are here. It was full. It was full of them. No,
other beers. I hate to echo us here, but yeah. Because the problem is I didn't even know
what the other brand was. It was like black can't. Yeah. I was 805. 805. Like the local popular.
Can't get your hands on the 805.
But yeah, look, like we said, we're going to be dragging on. America's an incredible place.
People are dying to immigrate here. We have blown it on immigration.
It's so stupid. It's so stupid. Both presidents have completely blown it on immigration.
I'm shocked that like if we know that the future of the defense of this country is information
technology and our ability to be a leader in innovation, then why can't we be selective on immigration?
With people that have the talent and the education that can help the defense of this country.
Yeah. I mean, the opportunity that I've been kind of exploring the last two weeks,
which you obviously know is purely because people can't get visas. People in India. Yeah.
Which is crazy. Yeah. Especially given that we know, I think politicians realize this.
The next war is not going to be fought with missiles. It's being fought with information and technology.
Yeah. So, you know, one of the topics we're going to cover is the US is restricting who has
access to like Microsoft Azure, AWS and Amazon from China. We're already at war with China.
Yeah. It's a different war. Yeah. It's a technology war. Yeah. It's not going to be shot.
Yeah. But people aren't dying on the front line. But what they are doing is
and then there was a chips restriction last week. Nvidia's stock went down like four or five percent
because Biden was saying we're going to start restricting who was access to. That's actually a
great idea. That's actually like I agree. And I think there's there's spending billions in Arizona
to build manufacturing chips for Nvidia and all these people that bring it on shore. And
that is we are like no one wants to admit it. We are at war and we're China. Yeah. It's just a
different war. It's just a different word. Don't put that on TikTok. Yeah. In our clips to go viral.
Yeah. But and how everyone's making these like both countries are making different moves. So
China was restricting like metals that would are needed for the chips that the US manufacturers
need. So the fact that forget like China because I don't think we'll ever have open visa
like policy but like India just let those engineers in. Yeah. You need it. Why do you want
the next Microsoft being built in India? Yeah. So stupid. So stupid. You could literally
if you're being self-serving as America, you could drown India's talent pool in one year. Yeah.
Look, there's a billion four. So even if like 1% are engineers. Yeah. We need engineers. Yeah.
Like there are no AI engineers. Yeah. Right now because AI just got hot in the last 12 months. Yeah.
So now you're going to wait for the brilliant kid to go to Stanford today. Go guys PhD. Four years
of undergrad. Four years of masters. You're eight, nine years out. Yeah. To getting the talent pool
you need when the talent pool already exists. Yeah. Stupid. So stupid. Yeah. Well, you know, I think
this is where like we have to make some pretty quick decisions from a policy standpoint on how we're
going to handle immigration, ensuring of manufacturing of some of these things and like really figure out
like I think you're going to give the power to the companies and you just got to make exceptions.
Yeah. So I'm curious politically. Look, let's just think about it. It's not popular to go. So
this five states determined who is the president, right? Ohio, Wisconsin, Michigan, Florida,
Pennsylvania, Arizona, Arizona. Sure. Six states. That's it. Yeah. Everything else spoken for. Yeah.
For the already know how they're going to vote. So it's just not politically popular to be like,
hey, we're getting letting these are can the opponents say like look at their,
they're letting all these Indians and taking our jobs. So I think even though those states don't
even have the capacity to fill those jobs. Yeah. So I think the bigger problem is is that if
you say immigration, the bad word because it means the sudden border is being okay. So call it
talent acquisition. Yeah. You have to change the word. Just say we're acquiring talent from all
over the world and making America great. Yeah. That is how we're going to take the all stars.
You got to do it in sports terms. Yeah. We're going, we're building an all star team and we need to
take some all star Indians, some all star ships. Yeah. Every country has the talent. Yeah. But I
think you, you, you have to like position it very differently because the problem, the word
immigration means the sudden border and, you know, yeah, they think that Honduras people are
the gangs and that's what they, which is not what's happening, but that's perception. Yeah. And
when we're actually, if you want to admit we're with China from a technology perspective,
an information perspective, it's wartime. Yeah. So we need to get the troops here. Yeah.
The troops are engineers. Yeah. Not jarheads. No, they're not. You don't need to do the
murk anymore. Yeah. Go code. We want some Python. Yeah. But well, I think you need politicians that
appreciate the importance of it. And the problem is even the younger politicians. No, but I guess
in those five states that determine the presidency, it's not popular to talk about. I think they know
to talk about it. They don't know that that's what we should do. It's easy for the posing. That's
why Trump got elected. He went to those states and said, you've been left behind. I'm going to get
you back. Yeah. And then saying, I'm also going to let a thousand new and Indian engineers
in an Egyptian and Middle Eastern engineers and isn't popular. I don't know. I mean, Trump's
hanging out with Modi. Yeah. Could be popular. But yeah, we'll see. Speaking of July 4th,
this is so we went on a family trip to Santa Barbara this weekend with our cousins, all our kids.
The hotel was slammed. Yep. Not cheap by any nation. I hadn't been to a hotel with my kids
in a very long time. I think I've only been with both kids once. And it was at a much cheaper
property. Eating out of the hotel is ungodly expensive. Insane. Insane. Like everything is so
room, forget room service. Room service is literally the most expensive thing I've ever seen in
my life. I'm not a room service person in general. Like if I'm staying in a hotel, which I stay
every other week, I know I've ordered zero times in the last five years by myself.
With the kids, we had to order breakfast one day. And I was like, what? Well, they got like
pancakes and eggs. It was like $80. You're serious? What's interesting is it looked like what's
funny was I was sitting at the pool early in the morning. And there's three young guys were sitting
in the pool also talking. And they were talking about how expensive everything was. The food, the
drink, they could be ready for a wedding. I can't like everyone is complaining about it all the
time. Even the wealthiest people I know when we go out to eat, they're like, what? Every single
person is complaining about how much everything is. Inflation is a serious problem still. And
the problem is the demand isn't slowing. So people are complaining, but you still got the pancakes.
Yeah, you still had the pancakes. I didn't order them the next day. I paid for Dom's pancakes.
Yeah, that was the second dosing of pancakes that guy. Same day, he had two pancakes.
He didn't finish. Yeah, exactly. He's a waste. So I think that the challenge is that
you're still demand. Yeah. Like if you wanted to get a hotel anywhere in Santa Barbara,
Montecito, it was either sold out or couldn't get all the restaurants are slammed.
What is going on here? Does everyone rich? I say this every week. I just cannot believe it.
Critic are bills are climbing. I don't know when it breaks. It should break, you would think. But
what's even more frustrating is the hotel we're at a very nice hotel costs the shitload of money.
I thought what the front desk for the first eight hours of my stay. Yeah, for a crib and getting
our bags to the right room. And like the service wasn't great. I'm happy to out him. The service
wasn't great. It took a manager. I basically, I could tell the story. So we have an 18 month old and
almost five year old. Almost five year old. We brought his own bed. Yeah. Fine. He
requires different needs. Our 18 month old just requires a crib. Yeah.
We request this four months in advance. So they have pack in place. If pack in place. But 18
months is the like kind of middle where you can't just throw them in the bed. Yeah. And a pack
and play they can climb out and crack their head. Yeah. So you need a crib. Yes, four months in
advance. Yeah. Get there. Obviously no crib. Yeah. Multiple pack in place. They just keep
dropping off pack in place. So it's like, why did you say you have a crib? Yeah. Why didn't you
just tell us we have pack in place? That's it. You go find your own crib. Yeah. So then
I just it was so funny. I so the manager came out. We checked in at 11. It's not three or four
pm. Still can't get a crib. And I was like, where are all these cribs? There's three weddings here.
So there's all bachelors. Yeah. There's no kids. There was a handful of kids. Yeah. So like,
do you not have cribs here? Like was that a lie? Yeah. And he kept like giving me like the run
around. And I said, there's three families in line checking in. It's 3 pm. I checked it at 11.
And you said it's a first come for a serve. So are those three families not going to have
cribs? I see the ages of their kids. I have two kids. I know who needs a crib and who doesn't. Yeah.
And he's like, I'm not hiding the cribs from you. And I was like, when you get reservations
and someone requests a crib, just tell them, no, tell us no. So we can make our own arrangements
or just go and acquire that many cribs for that stay. Yeah. Like, this isn't this heart. This
isn't that heart. I kept telling him. I was like, nothing you're saying is that you could easily
upcharge you 100 bucks a day. You would have paid 100%. Yeah. Because we're already there. Yeah.
You're already screwed. Yeah. I'm not going to like go sleep, sleep this night after sleep. Yeah.
And then I kept going and going and he realized everything he was saying makes no sense. Yeah.
So he's like, if I can't find you a crib by 4 pm, I will send someone to go buy you one. Okay.
So at least solved it, but it took fucking unnecessary. And look,
maybe it's because we have a podcast for the last five years 800 episodes. I'm okay with having
that dialogue. Yeah. Most people are just taking the L. Yeah. And their kids not sleeping. Yeah.
Well, I mean, it's just, it's just the nature of today. And I was very nice,
didn't curse, didn't yell, didn't scream. I was just like 10s at the end there. I got the tail
length. Yeah. At that point. But I didn't yell or scream. Didn't raise my voice. Yeah.
I was just in like very antagonizing him at the end. Yeah. I was like trying to prove to him
the thing he's saying makes sense. Yeah. So then what happened? Got the crib. Okay.
They found one magically. Yeah. They were hiding cribs. Yeah. They were hiding cribs.
Well, it's interesting because it's like, it, it goes down to like, when you think about
effort put into things, like, when you go, like even at the hotel, like, you know, every night
at the same time, we, the whole family met and so the kids could eat dinner. And we just all
just sat there and let them eat 10, 12 people. Um, they're like, we need a few minutes. I get
it's 10 people, whatever. I go stroll down. I haven't done anything.
Well, hey, you know what's going on at the table? It goes, oh, we're working on it. And I'm like,
what are you, what are you working on? And then 10 minutes later, I was like, nothing happened.
So I was like, look, can we just sit right there? Can't put the tables together? Yeah. No problem.
I think it's just like people, there's no urgency. No. For anything in life anymore.
Everyone is operating at their own speed. And I think at the end of the day, like, you think
when from a perspective of a business, like, you know, we were having this discussion internally
about like one of our topics was around a strategist for something. And I'm like, I don't know if
we need strategy more than we just need execution. Like we just need to go and do it. And I think
for some reason, there's, there's more, we spend more time strategizing than we do doing
things in society in general. Everyone wants to talk about it and think about it. It's like the
crib. Just go fucking look. Open every door. There's got to be a crib somewhere. If you open
every door and you tell me that I open every door in this hotel, I cannot find a crib. And if you
have one annoying customer like me, go find the crib. Go down the street and get one. Yeah.
And I think you just got to have like, especially when you're charged, you think I have a problem.
It's because of the price, right? It's the price. You're charging a premium price. Look,
if you, if you were paying $30 a night for a room, like there's the hotel I stay in New York,
it's so cheap. I don't even ask them for water. It's like spirit, right? Yeah, it's
you know what you're getting. Yeah. And I'm very comfortable with when I go on South West,
I'm not sitting there like asking for champagne. You know, I'm just like, I'm happy I got a seat
and I'm shy of the fuck up and I'm taking it. But when you charge a premium price, you have to
deliver a premium experience. And like what's even more frustrating is like you talk about the food
and beverage or we have kids. We're not leaving the hotel. You're going to make it up on the back end.
Yeah. Even if you had to go out and spend a few hundred dollars on a crib, you know,
charges with kids eating breakfast, lunch, dinner, drinks, poolside, everything. So, you know,
speaking to that, this is insane. TSA reported on Friday was a record number of screenings by TSA
officer. The previous record was Thanksgiving 2019. And this is the highest number of passengers,
the agency has screened on record. 2.883 million people were screened on Friday.
Yeah. Jay Powell's got to work too. I mean, you got to raise interest rates immediately.
Nothing is breaking. I don't get it. Because obviously Michael Rubin throws this legendary
4th of July Hampton's party. Yeah. Like Jay Powell's raising 75%. I mean, same. I stopped by,
I didn't stay for long, but I stopped by the H. Wood Bootsie Bellos party at Nobu, Malibu.
We know how much they charge for tables there. Yeah. It was also there. You could get one.
So wild. It's so expensive. It's not reasonable at all. It's just a brine in John for getting it.
Yeah. It's a salary. It's a salary for somebody what they're charging for a table. And
hey, you can't get it. You could physically could not get a table if you wanted one. Yeah.
It was slammed. I'm assuming. Slamped. In tape. How many people were outside?
Or did it because of QR codes? It was easy seamless. Yeah. No, I mean, there was a lot of,
you know, people who didn't have the codes are still trying to get in. It was busy,
but not like it was orderly. It wasn't like, you know, it's funny. Shout out to H. Wood.
We went to, we didn't go to the Nobu, but we went to dinner. And I think we finished up
around like 10, 10, 30. There was probably 200 people outside of Bootsie Bellos all in white.
So they clearly came from the party. Yeah. They kept the party going. And then they went to
Shoreboard too. Yeah. Because that I heard was insane. Insane. Like Bootsie, it was like,
as if it was opening night. That crowded. And we were just driving by. I was like, what the hell?
And then I was like, oh, yeah. Yeah. Great weekend. Well, look, if you look at like anecdotally, like
every from what we're hearing travel record. So that means airlines were slammed.
Hotels were slammed. My guest is Airbnb's were slammed. I mean, everything was slammed.
Travel is just completely out of control, completely out of control. Yeah. And there's notes. I
mean, like, I don't see anything letting up, even just talking to our cousins. How much travel
they're all doing insane amount of travel still. Yeah. No, it's definitely. Yeah. I don't know
where everyone's coming up with this money. Yeah. That's going to be a very interesting
next couple months. Yeah. And I don't see it slowing. Yeah. Like, I think New Year's will be insane.
Thanksgiving will be insane. Christmas will be crazy. Maybe just, I don't know. Yeah. Like, I
like, I don't know. I'm trying to think where would people be potentially cutting expenses
so that they can have more money for travel?
So we know like discretionary spending like on apparel furniture. You're not buying the house
anymore. Like, could it be just like, hey, we were saving up for a home. Fuck it. Let's go to,
well, I think a lot of people own homes that have appreciated so much that they're just leveraging
themselves. That's the only explanation I can think of. They're like, I'll take 100K and do vacations
this year. Yeah. Against my home. Because none of the prices are reasonable at any of these places.
For anything. For anything. I don't even know how people go out to eat. I ordered dominoes for
the kids yesterday. I ordered a medium cheese thin crust and a small gluten free. Because
Hailey wanted it. With tax and tip, guess how much it was? The two pizzas. Two pizzas.
$30. $45. Yeah. That's insane for dominoes. Yeah. No, it's, yeah, I don't get it.
And have you noticed? Because I use Uber a lot. Because the two kids monopolize the car.
Prices are up like 40-50% in the last six months. Yeah. Uber, like, in this year, I'm saying.
The same ride is up 40-50%. Well, yeah, like an Uber acts like I used to be able to come
go around my little bubble $89. Now there's no chance. It's 15-20. Yeah, 50%.
Everything's up. Yeah. And it's hard to even get a car.
Yeah. I mean, geez. When is it break?
Part of me, like, people are jobs, jobs are ports coming out Friday. Everyone thinks it's
going to be blazing hot. Like that job. Everyone's employed. Everyone's employed still. Yeah.
Like, if you want a job, you can get one. Like, it's not like there's, I mean, when we
in Santa Barbara one day for lunch, we got in and out. They're paying 20 bucks an hour.
Advertising 20 bucks an hour. Yeah. I mean, you could live, you know, if you don't live in
center, Santa Barbara, you live out there in Galita. You could live for 20 bucks an hour.
Yeah. I mean, I think Galita, which is not Monacito, which is where all, like, that you can't find
a place under a million dollars in Galita. That's crazy. The last anecdote from our Santa
Barbara trip, we were at a steakhouse called Lucky's, Monacito, and that one street where there's
a lot of fun stuff. And I don't know how it came up, but I just said, fuck Harry and Megan,
they're losers. Yeah. And everyone got nervous because they probably frequent the restaurant,
and they all know him. Yeah. And the waiter just started dying laughing. And I said, they suck,
don't they? Yeah. And he started smiling and laughing. So they don't have a good reputation,
their own neighborhood. They're pretty unlikeable. Yeah. They're pretty unlikeable. I don't think any,
like, we know the British don't like them. I think the Americans have turned. I think certain
Americans love them still. His book is still one of the top-selling books in the world.
Yeah. I mean, they got rid of their podcasts, but yeah, look, they mean they're probably just like
impossible to work with, which is why they're not putting out anything except a book here, a book
there. But like, I mean, if you become really the villain, the books will still sell. The next book
will sell because people will want to hate it. Yeah. They want to read, like, what is this dip
shit thing? Yeah. Crazy. It's unbelievable. Like, they can't believe how quickly it turned. Yeah.
They must be really unlikable in person for everyone to turn on them. And everyone's publicly
talking about it. And it's people that have actually interacted with them, not like us who were
just like kind of, I don't know, pretend on them. I'm sure she won't vouch for them.
She doesn't seem like the person that's like a vengeful person. Yeah.
Like, were they invited? I don't, I don't know how Mount Asida works, but I'm sure there's a hot
fourth-inch live party there. Yeah. Were they invited this year? Yeah, they're still very,
you want them at your party. Yeah. People will be like, oh, no one cares about parasilton. I'm like,
no, everyone cares about parasilton. It's like, you know, people will say, say things just like,
oh, they're nobody's, but like, Harry and Megan showing up to your event is still a big deal.
Yeah. They're famous. They're so famous. Yeah. You want them? I'm sure Michael Rubin invited them.
You think so? Yeah. Why not? I mean, they're probably the only famous people that weren't at the party.
Yes. Speaking of, the other July fourth party that was the hot party was Michael Rubin,
the founder of fanatics, hosted his annual July fourth party, which is a spectacle on social media.
And from what, when I'm told what I was reading, it's only 350 people.
Yeah. I think if you look at events throughout the year, there's no event which had more famous
people than that. Met Gala Oscars. Nothing. I would say Oscars. I mean, that's fair. But no,
from cultural culture, yeah. Little babies not getting invited. If you were to look at athletes,
athletes, rappers, movie stars, movie stars, you name it. Tick to everyone was there. It was the
Demilio family was there. Yeah. Jay-Z Beyonce, JLo Ben Affleck, JLo Ben Affleck, Little Baby,
Little Dirk James Hardin, Tom Brady Devon Booker, Kim Kardashian, Zach Bia DJ, Zach Bia DJing,
Winniehart, Kevin Hart on the my Kevin Hart Usher performing. Yeah. I mean, of the 350,
what 200 were Alistair's? Yeah. What's interesting is is I was trying to think about how much
she probably spends on this party. I was saying $5 to $10 million. I think it's more because he has
to be getting transportation for them. Justin Bieber, Hayley Bieber, they don't go anywhere. Yeah.
Now they're out. These people are out. Kim Kardashian. But how do you get them all to show up?
Yeah. Because it invites not good enough. Invites not good. They're like, oh, I could be in.
So I was thinking about it from Michael Rubin, CEO, fanatics, worth $11 billion.
Worth $11 billion. The cost of the party is not the problem. He has the money. But why do it?
Right. And then I looked at, this is just this morning, the Twitter video, I have 31 million views.
I'm sure it has 100 million. If you're thinking about, you know, he's planning to go in public soon.
It's kind of the best PR you can get. Yeah. Right. He's basically is cornered the sports
merchandising market and the celebrity market. Yeah. I don't think anyone can get that
cast of celebrities. Yeah. And from everyone I've ever spoken to says he's an incredible human being.
Like no one has bad things about him. He's not Harry and Megan. No.
Like everyone says he's so nice. He's so generous. He's so personable.
Kind of phenomenal. He's a unit. He's probably the most impressive billionaire.
Yeah. And he does most of the billionaires just like, you know, when you see like Bezos,
some of the eyes there. Yeah. When you see Bezos on the yacht with Lauren Sandge, it's just, it's
a little crane. It's not relatable. Well, it's also just even zuck with the with the jujitsu or
whatever he does. You say it seems staged. I actually think, look, I've never met him. But I've
listened to him on many podcasts. The way he communicates is you're talking about Michael Rubin.
The way he communicates is, it's like so impressive because it's really low ego.
So he said this a bunch on various different platforms. He tells the story how like, why do you
hang out with these celebrities? And he's like, well, I learned from them. And they're like,
what do you mean? And he's like, Jay Z, for example, he told him they were like a dinner or whatever
and Jay Z was telling, he asked him a question about his like hats, like sports merchandising hats,
like what should I do? Where should I think? And Jay Z goes, you know, you have to start thinking
about hats as part of someone's daily outfit because that's hats are like part of your daily code.
I'm wearing a fucking snapback. It's my day. And he's like, once you start thinking about that,
you'll design better hats. And my groom was like, I didn't have that insight. Yeah. And then I
redesigned how we make hats and make it part of like your daily outfit rather than just wearing
like a Dodger hat that you're wearing to the stadium. Yeah. And he tells these stories
same with Travis Scott. He's like, I learned from them. How much of that is true or not?
The way he communicates is like, oh, this is a likable guy. You go, because if you're Travis Scott
and this billionaire asks you for advice, you feel good. Like you feel even as Travis Scott,
be like, oh, I can actually offer this guy some insight. I can't do anything for him. Like,
I'm Travis Scott. Like, what can I do for Michael Rubin? Nothing. But he's asking me for advice.
And maybe I can give him some insight and maybe use it. Maybe he doesn't. But fuck that humility
of how you communicate is very important. It has to be the reason they all come. Yeah.
Because if he was not cool and nice, no, yeah, it's obviously he's very likable, clearly,
because these people can go anywhere. They can do whatever they want. They can go make money
on July 4th. They can go host a party at the fucking Vegas and make a million dollars. Every
certain one of them can host a party in Vegas and make a million dollars, two million dollars.
Or in Miami. Yeah. It's super impressive because culturally, we've never seen a billionaire
like this. No, not the, the, the breath of who he can attract. Because it's like RobberCraft is
there. Plus, bless a little baby. Yeah. Pretty, pretty fascinating. I didn't see me. No, where was he?
He was there. Where's he? Oh, yeah. Lots of pictures. He's got a nervous. They got him out.
Yeah, I don't know. He's a silly guy. So he's going to keep him around. But it's very fascinating.
All right. Let's move on to what's happening on Twitter. Speaking of Twitter, this is a very big
week for Twitter. Thread, the meta competitors coming out and everyone's gun blazing already firing
on them because of how much data they're collecting. And they're not even launching in the EU because
of all of the way they're collecting data. So that's one. So that's a big threat. Second,
there's an app that I got. So my attorney Randall Clark was out here like a month ago.
And he was like, I want you. I'm going to go. What do you even tell him for? He's like,
actually, one of our clients is also based in LA. We're going to, I was going to go meet him.
I'm like, go. What does he do? He's like, he has his app called spill. And they're two former
Twitter employees that basically started a kind of a groundswell of launching this new Twitter
competitor. It just launched. I think in the last month or two, I have to go check. I don't remember.
It's a number one social media app in the world right now.
And basically hit their angle was we live in a meme culture. We live in a fun and like,
and I believe both the founders are black. They basically like, Twitter was like,
black Twitter is what made Twitter very culturally relevant. And basically,
they felt like from a product standpoint, they were in catering to the audience, right?
So they basically built it for that community. And it's now number one app.
And I think there's number three app in America period. Number one, T Moo, number two,
HBO's rebrand max and number three spill right now.
These are really, really interesting because like, Twitter's never really had competition.
Yep. I don't think the thread meta is a threat personally. Like, I don't care what they do.
I have no faith in that app at all. Yeah, it's probably a blip. Yeah, let's go get a nice spike.
By the way, given that meta is like a 52 week high today and like a stones throw from an
all time high, if I'm the board of meta, shut the shit down, stop with all these dumb experiments,
focus on your core. You're about to be a truly not a company again. Yeah.
You know, they basically got back all the things they got punished for. This Twitter competitor
is not going to work. I don't care when anyone tells you I don't believe it. Spill
feels could be a real threat. I just downloaded it today. So I'm going to play with it tonight. But
Twitter has got its own challenges. Recently, they started with rate limits and how many tweets you
can read. Is that cause of bots? No. So what they did was over the weekend. I think it was Saturday
when they started it. So I just got into Santa Barbara. I was driving, so I didn't have my phone
for two hours plus. And I go on Twitter and I'm like, I'm cap. Like, what's going on? You're doing
you're you like to doom scroll? Yeah. I'm just like firing. Right? Like I just want to go through
everything. So for pretty much 48 hours, he kept how many tweets you could read if you were
an unverified user, which I am. I don't pay for the eight dollars a month. And then a verified
user was like 6,000 tweets a day unverified 600. So you can do for me, I could do 600 tweets in five
minutes. Easy. And what was he trying to test? So this is what the no one actually knows. So
just talking to friends who like know this space. One of my friends was like, look, I think what he's
doing was they were the servers were bombarded with bots. Yeah. I mean, he's fired all the engineers.
Yeah. So it's tough to like that. And he basically used the 48 hours. This was his suspicion
to basically clean out all the bots. And then you know, it's like a band-aid. Yeah. And then now
you can use Twitter regularly like you could have on Friday. Yeah. And he made this whole thing
scraping AI and I'm calling bullshit on this. Yeah. And he thought he was doing like a civil
like service. But if you really were doing the civil service, you would have kept it going. Yeah.
So he did it for 48 hours. He got crushed for it. And then he probably just needed to clean up
the bots so that the servers aren't bombarded. And he could relaunch it. Yeah. I think to me,
it was a bot issue because I think if you limit the amount of tweets, people can read and the bots
can't respond to fucking endless amounts. Right. Because the bots are so annoying on Twitter. Yeah.
But it's funny is is I saw someone post how they think Twitter will go bankrupt in the next 12 months.
And you know, then fall into the hands of someone potentially debtors and potentially a better
owner. The problem is Tesla's on fire. This guy's richer than ever. Yeah. So from an ego standpoint,
forget it's a bad business. We can all accept it. It's a bad business. Why the fuck would he let
it go for $10, $20 billion? It's a guy. No, at this point, he is his ego is clearly high. Yeah.
Telled by his tweets. Yeah. He likes to get in the cage with people that criticize him.
Literally, he wants to get the cage. Yeah. Literally and figuratively. So I mean, yeah,
I don't think he's giving up the business. No, that's what I'm saying. And they just
crushed the deliveries for Tesla over the weekend. China's back for them. They're price cutting
everyone out of the EV market. Every charger network is now setting on top of Tesla. He's kind
of cornered EV in some capacity. Like he's this it's going to be a multi trillion dollar company
in the coming years. What's it to lose 20, 30, 40, 50 billion dollars on Twitter? Nothing. Yeah,
nothing. It's irrelevant. It's just like if you're if you're an investor in SpaceX and boring
company and Neuralink, you'd be like, he's clearly taking mine share away to tweet all he tweets
all day. Yeah. And he tweets random people. Yeah. He'll be replying to some meme.
Who replied a memes? Who replied to like, you know, one of those 10 Twitter threads
he's playing like a company. Oh, number seven is good. That means he sat down. Yeah,
there is someone who broke down the economics of Taylor Swift in a Twitter. The way we talk about
he goes, wow, this impressive. That's the financials to read it because he's not he doesn't know
what Taylor Swift's economics are. No, but he's now interested. He's he's amazing, amazing.
You mean if he beats Mark Zuckerberg's ass, yeah, he has to beat him up. Yeah.
Has there any movement? It's been kind of quite the last three days. I saw a picture with him
with like some fighter guy. Yeah. He's training. No, he's definitely training. Yeah. He's not,
he doesn't seem like a person that just if he says something he, he's like you said,
his ego's so big he has to do it. Yeah, he has to do it and suck has to do it. They have to do
it. It's honestly, it's basically their legacies are on the line now for a cage fight. If you
think about it, what is anyone going to remember that you started Facebook? Facebook is not going
to exist like it soon. The company will be Instagram. What's that? But you created Facebook.
Or you got your ass beat by Mark Elon Musk. Yeah, I mean, sadly, unless you die young,
like a Steve Jobs, who's now like legend, legend, like like mythology, like Bill Gates is one
of the greatest entrepreneurs all the time. He's hated his legacies over. Everyone says he's
releasing mosquitoes and hilarious. It doesn't matter what it does. Talks are crazy. Yeah.
The Bill Gates ticked him. Yeah. It's insane. Yeah. What people believe. Yeah.
Just him. He's honestly created one of the greatest companies of all time. Well, the largest
company of all time and largest company at three trillion or whatever now. And he's actually
change philanthropy. He bullied billionaires and a hundred billionaires to give away their money.
And he's going to go down to say, hated human. Yeah. His I would argue that
if you were to pull people on social media, not in real life, he's probably the most hated person
in America. I would say it'd be like him and Trump. Yeah. Well, actually now Trump might be like,
but it'd be like, oh, Trump is way more like than Bill Gates, which is why Bill Gates. Yeah,
which is wild. Yeah. Like you ask a random person on the theme of Bill Gates. They think Jeff
Gabstein, Jeffrey Epstein, vaccine chips, like mosquitoes for farmland mosquitoes, not that he
created Microsoft, not that he created Microsoft and he cured bullioe. Yeah. Never.
And they think he reintroduced malaria. Yeah. I know. I've seen the TikToks. They're
fucking wild. And these TikToks don't have 300 views. They have like hundreds of thousands of
millions of millions of millions of millions of millions of millions. Anything Bill Gates gets
you views, though. Yeah. Like if you could come up with a good conspiracy, his honestly,
it really comes down. And one thing is is like, can we clip a pro Bill Gates rant that I just
that we just did? Yeah. You see how it performs on Tik Tok? Yeah. Well, we're going to get
eviscerated. They're going to think we're dummies that we think Bill Gates. We should leave all
of this in the clip, too. Yes. TikTok people think Bill Gates is the worst person. Yes.
And what's interesting is is he's a smart guy, right? And he, like Elon Musk knows all that matters.
It's a quarter public opinion. It's, that's it. And Elon Musk in, in, in youth culture,
fucking matters. Like youth culture love Elon Musk. Yeah. Sure. He's polarizing with adults.
But Elon's like, oh, yeah, all you people in San Francisco hate on me, but you're driving around
my car. So fuck off. Like he knows you won that. That Bill Gates clearly has, even Zuck clearly
has made persona changes to be more liked. Zuck definitely did this to get to stuff. Did you
get to the, when he did the surfboard with the American flag? These are things he's thinking
in his mind. He goes, how do I become more liked in America? Because that's ultimately what matters
to them. Their ego's. It's just not just money anymore. You have to be, it's the influence, the power.
Mark Zuckerberg loves it. Everyone's talking about a positive light. He turned his company
around and beating people's asses. That's America. That's what we want to see. Bill Gates,
there's no one that can get through this guy and be like, you know, chill on the vaccine talk.
It's not resonating. You could still give all your money away to it. Do what you want. But why
do you go on, go on every stage? It's not, it people, it's not working. Like from a, from a
curating. Yeah. Like you could still do all the work. You could still cure all the problems.
Like why do you have to talk about these things? And then I mean, unfortunately he's not a point
where he needs to take a back seat. Yeah. I actually think he's hurting his causes. Right.
Because he's every time, every time I say, I'm like, Bill, what are you doing? Just the fuck up.
Like you, we believe you. There's some of us who actually know you're fighting the good fight.
But the rest of society thinks you're horrendous human beings. Yeah. The skepticism on social media.
And that's where I'm curious if it translates to real life. It's pretty wild. Yeah.
On everything. Yeah. Everyone questions everything now that nothing's real. Well, I think
COVID and Epstein over the two things where you could question basically everything about COVID.
Because Epstein was the worst thing that happened in the society. For many reasons,
obviously for the obvious thing. Yeah. The really bad shit. But it made everyone like this was
like the most unimaginable thing to happen. This random guy coaxed all the richest and famous
people from finance to technology entertainment. Everybody, everyone, presidents and God, I'm an
island and there's underage girls. You can't even write that script. No one will believe it.
No one will believe it. And it was true. Yeah. And I think what happened during COVID and the way
people reacted to it also. Yeah. Because everyone was stuck at home. They're like, what happened with
Epstein? Yeah. Everyone did the deep dive. And then you start doing the deep dive on actual what
happened with COVID and you came to your own conclusion. The COVID was the last time we took
anything we're face value again. Yeah. I think like because they told us it was a two-week lockdown
or whatever. And they said it was bats. Yeah. We forgot. We're just brushing over the fact.
It was just like a bat. No one talked about that. No one talked about that. Obviously the poor
bat. These bats. That's got a bad bad rap. Yeah. Bat rap. All right. Let's move on.
All right. So one thing we always talk about here is streaming. The streaming market has been
ultra competitive. The largest entertainment companies in the world have poor tens of billions
of dollars over the last decade trying to keep up with Netflix. And it sounds like if you look
at some of the problems with basically every entertainment company, it stems from bloated expenses
around streaming. And most of them are making any money. Yep. So where does that leave us? What
the hell happened? So the profits at the biggest entertainment companies have fallen almost 90%
over the last decade. So the companies, Paramount, Disney, Warner Brothers, and Netflix.
If you look at what their profits were in 2013, to what their profits are today. And Netflix basically
created this. Broke the model. Broke the model and their business is even that good. No.
And I made everyone chase that business. Yeah. The cable bundles dead. And I don't know. I don't
know what the out is. Now you have a writer strike. Yeah. So you have like your you can't you don't
have any more money to pay them. No, you don't. That's what I kept saying when the strike happened.
I was like, this was the wrong time. Yeah. You should have done this in 2020. Yeah. When you had
leverage. Yeah. And now you have every one of these streaming companies. There's completely bloated.
And Andrew Jassy, the CEO of Amazon, who's actually was the head of AWS. He apparently is
reported in Bloomberg today. He's looking at Amazon studio and he's like, what the hell is going on
here? Yeah. Why are we spending all this money? How much was on Citadel? 250 million. Stupid.
And by the way, like we could make the argument now. Does Amazon Prime and Apple TV make you want
to use their products more? I don't think so. I don't think so at all. I think if you got rid of Amazon Prime
video, I mean, let's be honest. It was Amazon studios came under Jeff Bezos. He wanted to catch
some hot parties. Yeah. He was like, I'll burn 20 billion. So he's at the hot Oscar party. Yeah.
But for him, it was worth it. It's got some 30 40 billion, but he got a new girl.
More because his divorce. But I think the challenge is that now everyone's all in on it.
So I think Amazon could easily cut it. Yeah. I don't think you can wake up tomorrow. Who's going
to turn off their prime because you don't have Amazon studios? Yeah. Or you got to just charge
for prime video. Maybe you charge $4.99. Yeah. It's free, right? Yeah. If you have an Amazon Prime.
Okay. Maybe you charge $4.99. But you could buy movies too, but yes, their content. Yeah,
their original content or just get out of the original content business and just charge. Yeah.
It's just like, sure, we have this catalog. You can watch that shit for free.
Everything else we're going to charge you on from here on out. Because if Netflix isn't working
from a financial model perspective, the only thing Netflix has one lever left is raise prices.
It's a okay. Because the ad thing, you're not going to be valued like a tech company. If you start
serving cable TV ads, you're going to trade one times revenue like the rest of them. And so
Netflix can't go down this bucket saying, oh, yeah, we're selling ads. That's worth less.
It's not worth anything. All this stuff is created. Jay Powell kind of ruined this
whole industry. Is there interest rates use raise cheap debt and you keep funding all these
products? Well, and now that we're at five to six percent interest rates for the foreseeable
future. Yeah. None of these businesses make sense. And I think maybe the real
real learnings are Netflix works great at a certain scale and a certain cost.
There are people, it's not meant for everyone because the content is too expensive, right? Like,
talk about inflation, 250. Who the fuck even watched it, Adele? Besides Brian. Yeah, no one.
Nobody. I don't even know what it's about. Yeah. I'm going to watch it because they spend $250
million and I feel like I owe that to them. But like for free prime. Yeah.
It's like, whatever. Why I watch a stupid show. But like, you have to like, like,
I just don't understand the business model here at this point because Netflix has to raise prices
in order for this business to make any money. And so what price does Netflix actually get affected?
It was $300 million. $300 million. I shaved $50 million off.
Who okay, Debt at Amazon? Andrew Jassy probably had a hard time. Let me see the show.
If I was Andrew Jassy, I became CEO and I've heard the respect 300 million on TV show.
And it's not the NFL. Yeah. I understand the Thursday night football. Yeah, that's smart. Yeah.
It's great. Great branding. You have 20 million users or viewers or whatever the number is. And
you're the only option. Yeah. But 300 million for Citadel.
Jesus Christ. I mean, Hollywood's in for a rude awakening between the economics just don't
make sense anymore. Like all the budgets for all the shows are going to get cut in half.
Yes, right? Because like, Amazon is going to be the first thing to fall, right? Like, they'll just
change their budget. And it's going to trickle down. So I don't know what Apple will do. Apple may
see it as an opportunity and go all in. I don't know. Tim Cook is fairly disciplined. There's so much
money. He's more cash than anybody. He probably greenlit the morning show because he wanted to hang out
with Jennifer Aniston and Reese Witherspoon. Yeah, that's a good, this is a good show. Great.
More. I liked it. I don't watch many shows. But no, I think Hollywood's in for a rude awakening.
It's going to trickle down from the biggest stars to the directors, the writers to the actors to
the caterers, yeah, production, caterers, the assistants, the cinematographers, audio people.
It's such a massive economy. But like, your business delays run on this entire
business. Your business doesn't make sense. Like 90% falling off profits. Yeah. I also think like
if yeah, I mean, because it's not the content, it's the business model. Because I was going to say
how maybe is the content worse or the content is changed? Basically Netflix broke the cable bundle,
which was the greatest economic like money making machine and Hollywood history. Yeah. And now there's
no money. Yeah. Yeah. Well, luckily there's Apple and there's Amazon. Well, Amazon seems
jazzy's chopping heads. Yeah. If Amazon cuts, you'll maybe Apple cuts then too.
You'll be like, uh, Jesse might know what he's doing. Yeah. Why am I focused on this? Yeah, maybe.
That'd be interesting to see. And I think it leads into our last topic that ESPN fired
20 on air personality separate from back office, which they've been firing like nonstop. Yeah.
And you know, it's Kishon Johnson, Todd McShay, Jay Williams, like these are real Nick Jalen Rose.
Yeah. These are real names. Yeah. They didn't cut like no name talent. Yeah. They went after
pretty high-profile things. All that we're making multi-sum figures. Yeah. And similarly,
cable bundle doesn't make sense anymore. So the question becomes is like, you're an on-air
personality here. You were making this amount of income. You can't, where can you go?
You take a haircut and try to get a job at the bar stool or the ringer or have your own podcast.
Yeah. But like, yeah, you would have to basically go out on your own and maybe offset it with like
a radio gig or something where you can make some money. You can't recreate that money. Yeah.
So like Max Kellen was making five million a year apparently. Five million dollars. And he got
laid off. Yeah. He's a big name. Who's paying them five million? No. Nobody's paying them five million.
I mean, yeah, it's, it's a, yeah, that's why when people say like, oh,
everyone's gonna know is the NBA is getting this next right steel. And I've said this ad nauseam.
They're not getting the next one. Yeah. Only the NFL is gonna continue to get bigger and bigger
right live right steels. Yeah. No one's watching these things. No, they're really fired.
They're for Jeff gun, Jeff and Gundy. I also think there's a huge opening for other sports too now.
Yeah. Now people love pickleball. People like lacrosse. Soccer. You know,
crickets launching in America. Yeah. I PO. Yeah. That's what I'm saying. It's also just getting
fragmented. Yes. But there's a lot, you know, like we know, I know so many people that have season
tickets to LAFC. Great experience. Yeah. And so like so many people that like love going to LAFC
games because, okay, I can't get lacrosse season tickets. I'm priced out. Yeah. And for what,
to watch people sit on the bench? Exactly. No one plays. Yeah. No one plays 60 of the 82 games.
Yeah. I mean, I would say college football and NFL, both untouchable. SEC, college football and
then a film. I would say, I mean, college football ratings in general off the charts still.
Yeah. They even fired one of the college game day guys, David Pollock. Well, they gave it,
you know, they gave that guy Pat McAfee, like $100 million. Yeah. Did you see Stephen A. Smith's
rent? No, what do you say? Because apparently everyone was like, why, uh, didn't he get cut?
Because I think he makes 12 to 15 million a year. Yeah. So he, he called out the network and said,
there's people on this network that make more than me. And I know he's referring to it's the NFL
league guys. Yeah. They worked 20 days a year. Yeah. And this guy's working 12 hours a day. He's on
TV all day. Well, that's all they have now. Yeah. They have nobody else. He's on TV all day. And he's
just like, I had the number one written show and he's like, what's it all the stats? And these guys
who make more than me, um, why aren't you talking about them? Because they're, you have, if I'm,
if you're in sports right now, you either got to go to an emerging category, but you will never
get paid what you got, or you got to change your whole stick, go all in on NFL. Dude, like, if you
think about you could have a fantasy football podcast and make more money than being on air. How
fragmented sports content is you have dream on green has a top five sports podcast. Uh, you have
JJ Redick as a podcast, Paul George as a podcast, Kevin, uh, Garnett and Paul Pierce have a podcast,
Pat Beverly has a podcast. You can consume sports content anywhere. Yeah.
And it's not concentrated. So yeah, part of like the cable bundles screwed. Like he's been screwed.
Yeah. They're screwed. Go bad for the mouse. Mouse is disaster. Bob Eiger. Why do you come back?
I think he saw Bob, Bob Eiger's first order of business as cost cutting, class cutting. Second
is you got to come back. You clearly, he's not far away from getting bud lighted.
He's, they're pushing the edge on children's content and you see family speaking out on it
already. Like every single movie is pushing it a little bit further and they're going to have
to make a decision if they think that's best business. At the end of the day, all these people make
decisions based on money. If they think going, pushing the edge on sexuality on children's movies
is the right move and they can make more money doing it. They will do it. Yeah. I think they're
going to have to go back to the center there on the kid stuff. That's my belief. And I think
they're getting backlash on every fucking movie they put out. Yeah. And I don't think,
I think they, I'm, Bob Eiger's not a dumb guy. Go back to the middle and keep printing money.
Because I think if you go too far, at one point ESPN was 50% of their profits. Forget their
movie releases. And this is a dying, slowly dying business. Yeah. At one point, it's just going
to be the NFL because the NBA doesn't rate anymore. Yeah. I don't know. I think they're in a tough
position. Yeah. But I think they'll do enough cost getting to get it. This is not financial
advice in your term stock bounce. Yeah. All right. Are we going to do catty questions first or when
is there's a content? Whatever you'd like. Let's do this question. This is actually a really great first
question. I'll just, we'll just do this one. How is Revolve able to ship items so quickly?
Also, how do econ brands like Revolve work? Do they buy items at wholesale and mark up the price
from Lindsay? I will tell you Revolve probably has the single best operation in e-commerce.
It is equivalent Amazon. You order something in the morning. It should have shipped out in two hours.
Like, if I ever need anything the next day, free shipping, I will order from Revolve
or Ford. There's nothing like it. They're literally as good as Amazon. I would say in the category
they live in, they're by far the best. There's no one even close. They, unlike a lot of other e-commerce
companies, most e-commerce companies historically spent all their money on marketing. Like, they would
go crazy on Facebook ads. They went crazy on packaging. They went and spent money at all these
weird things that the customer doesn't give a shit about. Revolve and Ford have always been
about like the best experience, whether it's returns or shipping products. It's just what they chose
to prioritize because they knew that was important for their customer. The next question is how do
econ brands like Revolve work? Do they buy items at wholesale? So every multi brand retailer you see,
Macy's, Costco, Revolve, Paxson, you name it. You can pick anyone with these multi brand,
not sit mono brand, multi brand. Multi brand retailers are buying products at wholesale.
Wholesale, for example, in footwear is a 50% margin. So if you see a shoe listed at $100,
they probably paid 50 bucks for it. That's like footwear margins. On the apparel side,
it's probably like 60% margin or 65% margin. So if it's something listed for $100, they probably
paid 40. And the way to think about how much the brand probably made it for, brands usually average
around 50% gross margin. Some of the best brands in the world average like 60, 70. So if you see
something listed at $100 at retail, the retailer probably paid $40 for it and the brand probably
made it for 20 bucks. Yeah. That's a very conservative. 15 to 20 probably. Yeah. And so depending
on the size of the brand, I know brands that make stuff for 10 that sell for 40, the retail for 100
all day. And a plenty of brands to do that. But that's basically how you can think about the math,
the basic math on that stuff. It's obviously freight and there's other chargebacks and a bunch of
other costs that go into it when shipping, but that's your general math. Yeah, makes sense.
All right. When is Luzha's content? Winner? Winner. It was reported today,
Shohei Otani, the pitcher slash hitter for the angels, modern day, Babe Ruth. He makes 40
million a year outside of baseball and endorsements, 8x, the next highest person baseball, probably the
most in the history. He's making that money in America, all Japan, all Japan. Because I don't say
good friend Nez is this agent. Oh my God, really? Yeah. Jesus Christ. And Nez, you know,
says in Japan, he's literally the biggest thing on the planet. Yeah, believe it. And if you look at,
if you watch an angel's game, which no one in America is doing, yeah, but it's all ads in Japanese.
Even at the game at the game. So if you go to angel stadium, it's just Japanese writing.
It's really sad that American baseball has not, I mean, sadly, I don't watch him either.
But I was reading about, like, there was a great article. I don't know where it came out of GQ
or whatever. And I mean, statistically, he's kind of like the greatest athlete ever, right?
Yeah. I know he's, I mean, he's doing things we've never seen in the history of baseball.
And so he's leading the league in home runs, I think. How have they not capitalized on this?
Why are we all watching? What is the mess here? Is it? Who's fault is it? I think it's majorly
baseball's fault. Yeah. For sure that they don't encourage their players. They also have the
second greatest player of all time. Mike Trump. Yeah. The angels, the two greatest players of all time.
The angels suck so bad. Who is their manager, their coach, their president, their own or fire them all?
We know a lot of people that have played in the pros and majorly baseball. They all will tell you
before O'Connie, they told me, Mike Trump is the greatest player of all time. Then this guy comes
and they say, he is the greatest player. The two greatest players of all time. The team doesn't
do well. They don't, neither of them do media. I've heard, I mean, I know O'Connie doesn't want to
talk to anyone. There's a reason why he can have gone to any team. Angels were like, yeah, you
love doing anything. Yeah. He wanted to be in the background. Yeah. If he went to the Dodgers,
it would have been, he would have been the face of the city. Yeah. No one goes to shit about
the angels. But his next contract only the Dodgers Yankees and one other team can afford it.
They don't have to. He's going to have to play the game. Yeah. Because he's going to make his next
contract from what I hear is going to be $500 million. Man. That's often, I'm only going to let
Dominic play baseball. You know what's sad that baseball is like declining. It was like super
fast. It's growing up. It was so fun to go as a family to dodge your games. Yeah. So fun.
So fun. That was, obviously, we'd love to go like games. It wasn't real estate. It wasn't
affordable. But going to a baseball game was fun. Yes. You bring your glove as a eight-year-old
thinking you're catching a foul ball. You're obviously not. But it's still like the experience
yeah. Eating the ice cream out of the head. Yeah. Yeah. All the whole thing is great.
I still think it is, Perkets. I would assume. I mean, yeah, it's way more affordable to take your
family to a Dodger game than Angels game. Dodger games are very expensive. I look all at them.
Really? They're not cheap. Like you, you got to go find an odd ball, you know, day game and like
a Tuesday. Wednesday. Wednesdays the day games. Yeah. So like those days are cheap. But if you want
to go on a Saturday evening, forget it. It's expensive. Yeah. I mean, this guy's going to make
a billion dollars and never have to do anything. Yeah. And this was, by the way, he could be sitting
here with us right now. I do not know what he looks like. Except the fact they've just probably
be a big guy. Yeah. He's probably a really big guy. And our friend John Jay played with
the Angels and I asked him what's he like? He's like, he fakes like he doesn't know English.
She knows English. Yeah. And say, all right. I am going with the winner. There was going to be a
topic, but we're going to ran a time. But it is America's booze economy. Yeah. It's on fire. Yep.
The number of breweries in the US is now at over 9200. Just 20 years ago, there was like 1500.
So breweries have just exploded. Total number of distilleries in the United States from 2001,
which is somewhere in the under 50 to over 1400. Everything around the economy of booze or
distilleries, breweries, consumption, completely on fire. Is that the COVID bump that never slumped?
Yes. We picked up drinking and we said, you know what? This is something we could really get
behind because it's kind of to what everything we were hearing. No, that's the similar to how we
started the conversation today on July 4th. Everyone hates America. This, that, all that shit.
And then when you actually go out in the real world, it's not how people feel and act and talk and
like, you know, you just people are actually genuinely kind and you know, people are experiencing
good, good things when they leave the house. Same thing with drinking. People are enjoying a nice
cold modelo when they get home. No, I mean, I went to a 4th of July barbecue. Everyone was drinking
at beer. Yeah. And look, and I know at first hand, because you know, my involved with Lociento,
business on fire. And to kill the crowded market and Lociento's found its angle and business is
booming. And so it just like, I think the narrative in a small group of people, small group of like
Gen Zers who are like anti-drinking. When they grow up and they actually have to face tough times
in life, they're going to pick up a fucking drink. Yeah, it's just a reality. Yeah, I think it's,
it's one of those things that's overstayed on social media. No one drinks. Everyone's on psychedelics.
That's what you, if you open Twitter or Instagram, yeah, that's like everyone's on shrooms. Yeah,
everyone's on acid and no one's having. I think that's very much happening in places like L.A.
in places like San Francisco, literally those two cities. When you go to New York City,
bars are packed. Yeah, I don't think Nashville alcohol consumption is declined.
My guess is Nashville alcohol consumption is up 100% in five years. Yeah. So it's interesting.
So that's my winner. Everyone wants to say booze is dead. It doesn't look like I'm not saying
it's a good thing. Obviously, we know that the negative impact is terrible. It's terrible for you.
But it's, that's the reality of the situation. Fun. Yeah, that's a good time.
Loser. Loser, higher education. So I don't want to litigate their firm revaction ruling because
we're not Supreme Court lawyers and have a legal background. But what I think is going to happen,
and I thought the all-in guys actually did an incredible job explaining it because they didn't
try to litigate it from a Supreme Court standpoint and what's unconstitutional, but what they did do
is really paint the picture that if you're Harvard and you want to run it like a country club,
where you get to decide who gets in and who doesn't, then you have to stop taking federal funding.
So if all these universities, then how much federal funding, I have no idea, like give me
what the percentage is, but it's more than zero for all these universities, which means
and I think I forget it was Chamathur sacks of one of them. They were all kind of aligned. They were
like, look, if the government is helping fund these universities, you don't get carte blanche on
who gets to get in and who doesn't. That's fair. And if you want to take the federal funding away,
run it like a country club, run it like LACC or Bel Air, you get to decide who gets in and who
doesn't. And I also think legacy candidates, I think that's going to litigate in the Supreme Court,
and sports scholarships are now going to litigate in the Supreme Court, Supreme Court.
Meaning why if you're a good baseball player, you get in over someone who's more academically
qualified. Yeah, because it could, it could disrupt the NCAA, but the NCAA is like a mafia,
so that should ain't never go to the Supreme Court. Okay, fine. You know who actually disrupts,
we go down that. Basically, cool. Let's just give football all the scholarships and cancel all the
rest because they're the only program that brings any money to the school. Yeah, they're like 90%
of the profit and revenue of every program. Okay. So that to me, I don't think, no, because the point
is legacy and sports are similar. Yeah. You let the rich guys dummy kid in because he's going
to donate. I'm okay with that. And you let the star quarterback in because he's going to drive
revenue. Yeah. So those two are one and the same. The revenue is generating. Yeah.
Tremont said this and he must know. He said it's 50 million to get in the stand for it's 80
million to get in the Harvard. I said that flippantly. Okay, but okay. I think that's fair. That's a
high price tag. That's not like Lori Lothlin went to jail for like 300 grand at USC. But the point
is you got to stop the federal funding if you want to run a university that way. If you stop the
federal funding, yeah, then you could be Harvard and say, I'm up for the highest, but I want to know
how much Harvard has. I know obviously UC systems do and you I don't know what USC got some federal
funding. I'm sure they get tax rebates because they broke down of the Harvard admits last year.
43% of the white candidates were legacy candidates. 75% of this 43% would not qualify under the
publicly released metrics of what a Harvard can of the legacy candidates of the legacy candidates.
Well, Kennedy's and Bushes are going to get in. I'm okay with it. Like someone in their family did
something great. I'm okay. Just get it. Keep getting rewarded. It's you need those you need
them. You know what? You know, I loved is David Sacks. I was a billionaire. He's like, I already told
my kids, I'm not helping them get in college. You get in a wherever you get in. Yeah. Honorable. Yeah.
I'm not down with that. You're not that's not the world works that you're competing with someone
whose parents are going to pull every string. But his kids are going to be billionaires no matter what.
Yeah. He knows it doesn't matter. Yeah. Whatever. Go to go to a state school. Yeah. Exactly.
Yeah. I think it's really interesting. The federal funding is a great point. So I'm curious.
I want to see the numbers now. Yeah. Because then we can I agree. If this is truly private,
they could you should be able to do whatever you want. If it's truly private and you're getting no tax
tax, then that's like all the country clubs get tax credit. I'm okay with the tax credit because
we're not going to change country clubs. No chance. So why should we change like Harvard?
We're not going to change Harvard. The tax tax is different. They're not getting federal funding.
LACC. I mean, yeah. In their case, the tax credit is basically a federal fund. Yeah.
Okay. All right. I like that. My loser, I don't really have a loser. Let's thinking about it.
Just I haven't seen I've seen a lot of winners lately. I mean, I think to our point in the
beginning of the conversation, I'm going to give another winner. I'm going to say America.
Great. Especially given, you know, you're seeing what's happening in France now. It's very
similar to what happened in America a few years ago. And where an unarmed young immigrant
was, I don't know the full details of the case, but, you know, police related. And it caused
like a series of riots and like, you know, protest throughout the country. And you know, all
intents and purposes, I think America is kind of bounced back and like we've made some progress.
Very little albeit, but we've made some progress. And, you know, we're still functioning
as a country, whereas I don't know what happens in France. Like I don't know, can you bounce back
from that much divisiveness, you know, and go and function. Yeah. It's a massive difference
is the economy. Yeah. Their unemployment is, you know, reasonably high. Yeah.
US is low. Yeah. When the country's functioning economically, you can bounce back. Yeah.
The US economy's been extremely resilient through COVID post COVID. Yeah. And it's just really
simple. If you could put food on the table for your family, you kind of look at other way on things.
Or you're just generally happier. You don't feel the need to revolve. Yeah. And I think that's
what I think is a big problem that's happening in China right now is that they have an economic
problem. Yeah. Cutting interest rates. They cut interest rates last month. Yeah. They did not
rate. I think it's like 21% unemployment for the youth. Yeah. Which is staggering.
You do not want to make the youth in any country unhappy. Because they're the ones that will
actually revolt. Yeah. All right. Content. It's not Indiana Jones last week. Here's in for
woke Indiana Jones. Is it woke? That's what someone said. It's woke. It's not woke at all. It's
great. Okay. Very entertaining. This guy is in his 80s. Yeah. Crushing it. Okay.
I know critics have had mixed reviews, but it's a fun movie. And it's great. Okay.
Content from me. I'm so we talked about it. I'm watching Swagger. Yeah. I like it. It's great.
I'm almost done with the first season. Wow. I watched some of me. I watched some on the treadmill
yesterday. Oh, change actions. Great actor. Great actor. He's awesome. That's a really good show.
Yeah. It's also just interesting. Like youth sports is like I'm so far removed from youth sports.
Playing 25 years ago. It's just crazy. Like you forget how integrated social media is into
everything. You know, they do a good job of like showing like an actual thing that's a net negative.
Because some of the top guys in AU from like three, four years ago that had all the followers.
They all fanned out. Right. In basketball. I don't know. They're so young. They could still make it.
Yeah. Like I don't know. It's focused on the craft. Yeah. I agree with that.
Yeah. Look at Shohei. Does he even have Instagram? Shohei doesn't talk to anyone.
Yeah. He thinks he's in a language. That's how literally he wants to talk to people.
All right. Content. Well, that was it. That's it. That's it. Okay. Shoutouts.
This is a great first shout out. The guy's name is Rich Guy.
It's from Rich Guy. His actual name is Rich Guy. Like his name is, do we believe that Richard Guy?
I've talked to him. Okay. Rich Guy. So he wants to give a shout out to himself. Rich Guy.
I always talk giving a shout out to another Rich Guy. He just turned 35, traveling to LA from London for
over a decade ago and visiting around 14 times since finally making the jump across upon and moving
this summer to West Hollywood. Well, you know how many people I've met from Europe, Australia,
that have moved to West Hollywood because it's a podcast. In saying, people come to me all the time.
I moved to LA because of you. They want to be part of the bubble. It's a great bubble.
One bubble. I mean, if you're a rich guy, West Hollywood is a great place.
After working in the creator space for many years, decided to pack up everything.
Get his visa sorted and launch his own creator management company with a great friend of mine in
Los Angeles. Listeners since day one, all the way from the short story long days. Never miss an
episode and always gain a ton of value from the pod. PS, if any caties need any help in the subscription
creator space, hit me up at Rich Guy, IWMC. Myself with a team of love to help. Much love to you all
at GCP. Well, Rich Guy will see you soon. See you this summer. The next is from Amit. He actually
sent some wolf branded underwear. I remember it. Thank you. I appreciate it. I wanted to give a
shout out to Michelle to his wife. Happy birthday on July 3rd. She's been crushing it all year in a
new career. She got a director role at the executive level while also being the best mom and an
awesome wife. She's a passive catty and enjoys the pod when I have it on while we're driving.
Happy birthday, Michelle. No small feet. Good for you. Any other shout outs? I think that's it.
I think that's it. All right, caties. Go America. Go America. We will see you back here on Sunday. Bye-bye.