Podcast Summary
Two college friends started Market Snacks to provide millennial-focused finance news: Jack Kramer and Nick Martell, former bankers, founded Market Snacks to deliver business news with a millennial perspective, including topics like password sharing and post-college finance navigation
Jack Kramer and Nick Martell, the founders of Robin Hood Snacks, started their media company, Market Snacks, in 2011 while working at banks. They recognized the need for business news that resonated with their generation and have since provided daily coverage through a blog, email newsletter, video appearances, and a podcast. The millennial perspective on finance they offer includes topics like password sharing and navigating the financial world post-college. The duo met in college and both went on to work in finance after graduation, with Jack at Commerce Bank and Nick at UBS. They reflect on the importance of understanding different financial systems and the role of banks in various industries, including real estate and casinos.
Starting a side hustle with employer support: Transparency, communication, and belief in potential led to selling a side business to a major player
Having a side hustle while working a day job can lead to successful business ventures. As shared in the discussion, the founders of MarketSnacks started their financial news podcast as a side project while holding down full-time jobs. They communicated openly with their employers about their side business and were able to gain their support. When they started generating revenue, they were able to fully commit to MarketSnacks and eventually sold it to Robinhood. The infrequent communication from their investor, Vlad, added to the uncertainty but ultimately led to a successful exit. The story highlights the importance of transparency, communication, and believing in the potential of a side hustle to eventually become a full-fledged business.
Business school accelerated Market Snacks' growth with soft financing: Taking risks, staying true to your vision, and being prepared with a clear business plan can lead to valuable opportunities and partnerships.
Business school provided an accelerator for Jack and Nick from Market Snacks to launch their podcast and take their company to the next level. Instead of taking traditional MBA internships, they received "soft financing" to put all their efforts into their business. Their unique approach paid off when Robin Hood approached them for an ad sponsorship, leading to a deeper conversation about their future plans and eventually an acquisition. The experience was invaluable, and although the details cannot be disclosed, they expressed no regrets about the decision. Another key takeaway is the importance of being prepared and having a clear vision when presenting your business to potential investors or partners. Robin Hood's questions went beyond a simple business transaction, leading to a more substantial conversation about Market Snacks' future goals. Overall, Jack and Nick's story highlights the power of taking risks and staying true to your vision in the business world.
Unexpected opportunities in unlikely places: Successful entrepreneurs find promising opportunities in unexpected places and against conventional wisdom, even if the target market is skeptical or uninterested.
Successful entrepreneurs often find their most promising opportunities in unexpected places and against conventional wisdom. In this case, the founders of a startup aimed at getting millennials to trade stocks were approached in a dive bar by a group of quantitative analysts. Despite the skepticism of the speakers at the Founders Institute event they were attending, they saw the potential in this contrarian idea, even though the target demographic was known for their lack of interest in financial planning. The founders were undeterred by the fact that their product was still an idea and that they planned to offer it for free. They believed that if they could successfully onboard this untapped market, they would own a significant share of it. This story serves as a reminder that the most promising business opportunities can come from the most unlikely sources and that taking contrarian bets can lead to enormous success.
Market volatility and economic events: Historically, markets have recovered from major drops and economic events like trade wars, elections, and Brexit occurred at record highs. Long-term investment strategies are recommended, as a vaccine for coronavirus is predicted within 6-12 months.
Despite the recent market volatility due to the coronavirus outbreak, historical data suggests that drops of this magnitude are not unprecedented and markets have always recovered. The speaker emphasized that experts advise against trying to time the markets and that major economic events, such as the trade war with China, the election of Trump, and Brexit, have all occurred while markets were still at record highs. The speaker also shared their personal experience of investing during past market downturns and the importance of having a long-term investment strategy. The coronavirus outbreak could lead to a month of economic activity loss due to potential shelter-in-place measures, but experts predict that a vaccine will be developed within six to twelve months.
Impact of Coronavirus on Economy: Potential Losses and Extreme Measures: The coronavirus pandemic could lead to a 4-5% loss for the economy, but extreme measures like prolonged lockdowns could result in even greater losses. Investors should remember that selling during times of fear can result in missing out on potential gains.
The coronavirus pandemic has significantly impacted economic activity, potentially leading to a loss of 4-5% for the year. However, it's important to note that this is not the worst-case scenario, as extreme measures like prolonged lockdowns could lead to even greater losses. The pandemic has affected various industries in unprecedented ways, such as the shutdown of factories in China and the decline of retail in France due to the decrease in Chinese tourists. The markets reacted strongly to the initial belief that the crisis was contained to China, but the global impact has become clearer as the virus spread. Warren Buffett, a well-respected figure in finance, has weighed in on the situation. Despite the challenges, it's crucial for investors to remember that selling during times of fear can result in missing out on potential gains. Instead, being greedy when others are scared can lead to better opportunities.
Dell's program for entrepreneurs: Save money and level up with expert advice and affordable tech: Dell for Entrepreneurs offers free IT consulting, access to capital, discounts, and rewards, helping startups save on IT costs and focus on growth.
Dell offers a valuable program for entrepreneurs, providing free IT consulting, access to capital for hardware purchases, and significant discounts on Dell products. This program, called Dell for Entrepreneurs, can help founders save money and level up their businesses with expert advice and affordable technology. The program also includes rewards like up to 6% cash back on Dell purchases. This is a significant benefit for startups, as IT expenses and capital expenditures can be substantial. By taking advantage of Dell for Entrepreneurs, founders can reduce their costs and focus on growing their businesses. Additionally, Disney's success with Disney+ shows the power of a well-executed streaming service, offering a vast library at an affordable price. With Disney's nonpartisan appeal and potential for a billion subscribers, it serves as an inspiration for entrepreneurs looking to build successful businesses in the media and technology space.
Collaboration and Acquisitions in Media and Entertainment: To succeed in media and entertainment, foster collaboration among your team and make strategic acquisitions to expand and diversify your content offerings.
The success of media and entertainment companies, like Disney and Tojo Studios, comes from building a strong ecosystem of creators and content. At Tojo Studios, everyone from the director to the writers, producers, and lighting team worked for the same company, allowing them to collaborate and create movies efficiently. Disney, on the other hand, has grown its content asset base by acquiring companies like Marvel, Star Wars, and Pixar, and scaling their content production. This strategic growth has led to a significant increase in stock price and the widespread popularity of their content. The key to success in this industry is not just creating great content, but also fostering a collaborative environment and making smart acquisitions to expand and diversify your offerings.
Disney's Future Success Depends on its Leadership and Execution: Disney's new CEO, Bob Chapek, with a background in theme parks, could lead the company to continued success or even surpass its past 15 years' performance. Effective delegation, adaptability, and the use of freelancers can help businesses save costs and improve efficiency.
The success of Disney in the next 15 years is not solely dependent on its leadership. The discussion suggests that the company's theme park experience CEO, Bob Chapek, could lead Disney to continue performing well or even surpassing its past 15 years' performance. The surprise factor is that Chapek's background is in theme parks rather than future media, which some might have considered a disadvantage. However, the group's analysis indicates that execution relies on the individual, and having separate sinks in the bathroom ensures that team members remain focused on their tasks. Additionally, the use of freelancers through platforms like Fiverr can help businesses save costs and improve efficiency. Overall, the conversation highlights the importance of adaptability and effective delegation in business success.
Discussing the importance of government funding for education on Fiverr: Fiverr simplifies hiring freelancers for digital services with transparent pricing and quality talent. The speakers debated government funding for education, emphasizing equality in opportunity and potential benefits, while acknowledging financial concerns.
Fiverr offers a convenient solution for businesses and individuals to find and hire freelancers for various digital services at upfront, transparent prices. The platform makes it easy to search based on service, deadline, price, and reviews, ensuring quality talent. Meanwhile, the discussion touched on political affiliations, specifically the idea of government funding for education, such as two-year trade schools. The speakers agreed on the importance of equality in opportunity and the potential benefits of this approach, drawing parallels to Germany's education system. However, they also acknowledged the financial strain of student debt and the precedent set by government bailouts in the past. The conversation ended with a reminder to hold onto investments and not sell them prematurely.
Media reporting on Tesla's autopilot system can be misleading: Media should report accurately and fairly on Tesla's autopilot system, acknowledging human error and the limitations of technology.
The media's reporting on Tesla's autopilot system can be misleading and should be taken with a grain of salt. During the discussion, it was brought up that an article from The New York Times reported on a Tesla autopilot crash in 2018, where the driver was playing a video game at the time. However, the article failed to mention this crucial detail in the initial reporting, only bringing it up later in the article. This raised concerns about the tech backlash against Tesla and the media's role in shaping public perception. The speaker also emphasized that even with advancements in technology, there will still be accidents and fatalities. Tesla, as a leader in self-driving car technology, is under intense scrutiny when accidents occur. It's important to remember that human error plays a role in many accidents and that technology is not infallible. The media should strive for accurate and fair reporting to avoid fueling unnecessary backlash against companies like Tesla.
The fairness issue for retail investors in the transition from private to public markets: Retail investors are missing out on investing in promising companies earlier due to the differences between private and public markets, with private markets focusing on growth and public markets demanding profitability. Some companies, like Uber and Lift, are exploring creative ways to increase profits.
The transition from private to public markets and the extreme differences between the two have become more clear than ever, creating a fairness issue for retail investors who can't access these companies earlier. The private market's focus on growth at all costs is contrasting with the public market's demand for profitability. Companies, both public and private, are under pressure to find creative ways to increase profits. For instance, Uber, which went public late and faced intense scrutiny, could have potentially benefited from earlier public pressures and maturing the company faster. Another example is Lift, which is exploring creative side hustles like outdoor ads on taxis and a payment system to increase profits. Ultimately, the fairness issue of retail investors missing out on investing in promising companies earlier is a concern, and some exchanges are working on solutions to make going public easier.
Aggressive growth strategies in competitive markets: Companies may prioritize growth over profitability in competitive markets to establish a significant user base, creating a moat, but public market pressure for profitability may force a change in strategy, with smaller companies struggling to keep up.
In competitive markets, companies often engage in aggressive growth strategies, including lowering prices and increasing user base, even if it means operating at a loss for an extended period. This approach can help establish a significant user base, creating a moat that can be difficult for competitors to overcome, even if the product is commoditized. However, the public market's pressure for profitability can force companies to change their strategies, leading to a focus on profitability over growth. Companies without deep pockets may struggle to keep up with the larger players, and the party of unlimited funding may be coming to an end. Instead, companies may go public earlier, with smaller revenues and a focus on profitability.
Pros and cons of publicly traded vs privately held tech companies: While publicly traded companies offer transparency and liquidity, privately held firms provide benefits like control and long-term investment. The decision to go public depends on factors like market timing, valuation, and business model.
The discussion revolved around the pros and cons of publicly traded versus privately held companies, specifically in the context of tech marketplaces like Uber, Lyft, and Airbnb. The speakers agreed that it would be healthier for companies to go public and have more freely traded shares, but acknowledged the benefits of private investment and the forced holding period. However, they also noted the issue of market timing and valuation, particularly for companies that manufacture physical goods. The speakers expressed excitement about potential spin-offs and advancements in technology, such as self-driving cars and VTOL, but acknowledged the challenges of scaling and the potential for incumbents to raise the barriers to entry through regulation and costs. Ultimately, the conversation highlighted the complexities and nuances of the business world, where profitability and growth are not always straightforward.
The Future of Transportation: VTOL Vehicles: VTOL vehicles, like those from Ehang, are revolutionizing transportation with their vertical takeoff and landing capabilities, safety, and effectiveness over water. While currently expensive and limited, they're gaining popularity as 'cult stocks' and have long-term potential.
The future of transportation is shifting towards vertical takeoff and landing (VTOL) vehicles, specifically those developed by companies like Ehang. These vehicles, which can compensate for lost rotors and are safer than cars, are being tested in China and will soon be available in other countries. They are particularly effective over water and have the potential to revolutionize last-mile delivery. Despite their current high cost and limited availability, VTOL vehicles are gaining popularity as "cult stocks" among investors, particularly millennials. However, it's important to remember that the fundamentals of these businesses will eventually need to be strong to sustain their success. For now, the hype surrounding these companies and their charismatic leaders, such as Elon Musk and Richard Branson, is driving their stock prices. While there is some irrationality in this phenomenon, it's important to keep an eye on the long-term potential of these technologies and the companies developing them.
Social Media and Young Investors Driving Up Prices of Purpose-Driven Stocks: Social media is influencing stock prices, young investors prioritize purpose and sustainability, and fractional shares make investing accessible to all
The stock market is being influenced by more than just company fundamentals. Social media platforms are playing a significant role in driving up the prices of certain stocks, particularly those in inspiring industries like space travel, electric cars, and self-driving technology. Young investors, who prioritize purpose and sustainability, are also contributing to this trend by "voting with their dollars." The ability to buy fractional shares has made it easier for individuals to invest in these companies, regardless of their share price. This shift in investing behavior reflects a growing demand for businesses to focus on more than just profits, with social promise and sustainability becoming increasingly important to consumers and investors alike. The future of business may be less about maximizing profits at all costs and more about aligning with the values and priorities of the next generation.
Companies like Delta and Microsoft are leading the way in carbon offsetting: Companies are voluntarily offsetting carbon emissions, nudge theory could encourage more sustainable practices, air travel contributes to greenhouse gases, collective action needed to make a significant impact on climate change.
Companies like Delta and Microsoft are taking voluntary steps to offset their carbon emissions, and this trend could lead to a significant market for carbon offsets. This is important because air travel is a significant contributor to greenhouse gases, and individuals and companies need to be aware of the environmental impact of their actions. The nudge theory, which involves providing information to encourage better decisions without limiting freedom, could be an effective way to encourage more sustainable practices. For example, displaying the carbon footprint of flights and offering the option to offset emissions could make a difference in consumer behavior. Companies like Delta and Microsoft are leading the way, but it will take collective action from individuals and businesses to make a significant impact on climate change.
Michael Bloomberg's role in New York City's recovery post 9/11: Bloomberg's centrist politics and role in New York City's recovery post 9/11 could appeal to voters, but winning over crucial swing states may be a challenge for him due to differences between New Yorkers and Californians.
New York City's resilience after the September 11th attacks was aided by key individuals like Michael Bloomberg, who helped revitalize the financial district and bring the city back from the brink. Bloomberg's centrist politics, which could appeal to both Democrats and Republicans, were seen as a potential alternative to more polarizing figures like Bernie Sanders. However, winning over crucial swing states like Florida and Pennsylvania may be a challenge for Sanders. The conversation also touched on the differences between New Yorkers and Californians, with New Yorkers being described as friendly despite a lack of politeness, and Californians being polite but less likely to strike up conversations. Ultimately, the discussion highlighted the unique qualities of each city and the appeal of living in diverse, vibrant urban environments.
Hosts share their personal favorite companies: The hosts of Robinhood Snacks discuss their admiration for Lululemon, Chipotle, and Sweetgreen, sharing personal stories and industry insights.
The hosts of the Robinhood Snacks podcast, despite not making stock recommendations, share their personal affinities for certain companies based on their admiration for the brands and management. One of their favorite companies is Lululemon, with its innovative men's wear line, while they express admiration for Chipotle's resurgence under new leadership. They also highlight Sweetgreen as a company leading in food innovation, even if they find the calorie counts a bit misleading. The hosts also share their personal experiences with various restaurants, such as Hakosan in San Francisco and Thai Shoken in San Mateo. Overall, the podcast offers insights into the hosts' perspectives on various public companies, combining personal stories and industry news.
Revolutionizing Dining with Technology and Innovation: Technology enhances dining experience with real-time waitlist updates and personalized fusion menus.
Technology and innovation are revolutionizing the dining experience, making it more convenient and personalized than ever before. From waitlist management at Tyshokan to Michelin-starred Indian and Chinese fusion restaurants in New York, the options are endless. For instance, the Yelp waitlist allows diners to join a list and receive real-time updates on their table status. Similarly, restaurants like Decoy in New York are pushing boundaries by combining different culinary traditions, such as Chinese dim sum with Jewish ingredients. These innovations not only make dining more accessible but also add a unique and exciting element to the experience. So, whether you're in the mood for Indian, Chinese, or Jewish cuisine, technology and creativity are making it easier than ever to discover and enjoy new culinary delights.
