1 00:00:05,160 --> 00:00:07,920 Speaker 1: This is of the Flux I'm Brett and I'm justin. 2 00:00:08,119 --> 00:00:10,240 Speaker 2: It's Friday, the eleventh of April, juz boy. 3 00:00:10,360 --> 00:00:13,000 Speaker 1: With credit card fraud at an all time high and 4 00:00:13,080 --> 00:00:15,640 Speaker 1: Combank and Westpac are looking to make some big moves. 5 00:00:15,640 --> 00:00:18,960 Speaker 1: Get this one. Both banks are considering removing the sixteen 6 00:00:18,960 --> 00:00:22,280 Speaker 1: digit numbers from credit cards and debit cards now. 7 00:00:22,239 --> 00:00:24,360 Speaker 2: For Sam, this week has been one of the craziest 8 00:00:24,360 --> 00:00:27,680 Speaker 2: weeks on the share market since forever. Donald Trump announced 9 00:00:27,680 --> 00:00:30,760 Speaker 2: major tariffs, then early yesterday he announced a ninety day 10 00:00:30,800 --> 00:00:34,040 Speaker 2: pause on nearly all the tariffs except for China. The 11 00:00:34,040 --> 00:00:37,240 Speaker 2: share markets have absolutely exploded. We have it all covered 12 00:00:37,240 --> 00:00:39,680 Speaker 2: in the Flux app, including what is the tariff and 13 00:00:39,760 --> 00:00:41,959 Speaker 2: why they are making such a big impact right now. 14 00:00:42,000 --> 00:00:43,199 Speaker 2: So if you want to learn more, make sure to 15 00:00:43,240 --> 00:00:44,960 Speaker 2: download the Flux app and check it out. 16 00:00:45,000 --> 00:00:48,280 Speaker 1: Three revitalizing stories today, Juzzy boy, let's do it for 17 00:00:48,320 --> 00:00:52,600 Speaker 1: our first. Storage King, the asxised self storage operator is 18 00:00:52,640 --> 00:00:57,080 Speaker 1: filding a multi billion dollar takeover offer because its majority 19 00:00:57,120 --> 00:01:00,600 Speaker 1: owner isn't happy with its progress. Storage King getting boxed 20 00:01:00,640 --> 00:01:02,440 Speaker 1: up and shipped off b Man, So tell me more. 21 00:01:02,480 --> 00:01:05,720 Speaker 1: Abicus Storage King is the ASEX listed company that operates 22 00:01:05,840 --> 00:01:07,759 Speaker 1: under the brand Storage. 23 00:01:07,440 --> 00:01:10,920 Speaker 2: King aka the self proclaimed Kings of Storage Moving and 24 00:01:11,080 --> 00:01:13,679 Speaker 2: probably bubble Wrap as well and Jasebo. Storage King isn't 25 00:01:13,760 --> 00:01:16,840 Speaker 2: just sitting on a few dusty garages out back. We're 26 00:01:16,840 --> 00:01:19,840 Speaker 2: talking nearly one hundred and fifty self storage facilities and 27 00:01:19,880 --> 00:01:22,720 Speaker 2: development sites around Australia now Beman. In twenty twenty three, 28 00:01:22,800 --> 00:01:25,520 Speaker 2: Abicus Property Group, which was the owner of Storage King, 29 00:01:25,640 --> 00:01:29,240 Speaker 2: decided to dmage Storage King into its own ASEX listing. 30 00:01:29,040 --> 00:01:31,640 Speaker 1: But since then its share price has fallen more than 31 00:01:31,680 --> 00:01:32,440 Speaker 1: eighteen percent. 32 00:01:32,640 --> 00:01:35,440 Speaker 2: So now Abicus Property Group has partnered with another company 33 00:01:35,440 --> 00:01:38,240 Speaker 2: called Public Storage to try and buy back the whole 34 00:01:38,360 --> 00:01:39,640 Speaker 2: of Abicus Storage. 35 00:01:39,319 --> 00:01:42,080 Speaker 1: King, and this was at a more than twenty six 36 00:01:42,120 --> 00:01:44,720 Speaker 1: percent premium to its pre offer closing price. 37 00:01:44,800 --> 00:01:46,760 Speaker 2: Now the office still needs to get approval from the 38 00:01:46,760 --> 00:01:47,920 Speaker 2: Storage King Board. 39 00:01:47,800 --> 00:01:50,840 Speaker 1: As well as the Foreign Investment Review Board here in Australia. 40 00:01:50,880 --> 00:01:54,560 Speaker 2: Given the offer price is below Storage King's net tangible assets, 41 00:01:54,720 --> 00:01:57,000 Speaker 2: some investors may push back on this one. 42 00:01:57,080 --> 00:01:58,960 Speaker 1: That is an interesting call. So what is the key 43 00:01:59,000 --> 00:01:59,440 Speaker 1: learning here? 44 00:01:59,520 --> 00:02:02,520 Speaker 2: Net tangible assets are essentially the value of a company's 45 00:02:02,520 --> 00:02:05,560 Speaker 2: physical assets like property, minus its liabilities. 46 00:02:05,640 --> 00:02:08,680 Speaker 1: It's a common valuation tool. Used in property heavy sectors 47 00:02:08,800 --> 00:02:10,360 Speaker 1: like real estate or storage. 48 00:02:10,400 --> 00:02:12,920 Speaker 2: Investors look at the net tangible assets to understand what 49 00:02:12,960 --> 00:02:15,640 Speaker 2: a company is worth on a breakup basis. 50 00:02:15,919 --> 00:02:18,280 Speaker 1: That means what would it be worth if all of 51 00:02:18,320 --> 00:02:20,280 Speaker 1: its assets were sold and debts paid off. 52 00:02:20,320 --> 00:02:23,120 Speaker 2: In Abacus Storage King's case, its net tangible assets are 53 00:02:23,120 --> 00:02:25,680 Speaker 2: a dollar sixty per share, But the takeover group is 54 00:02:25,720 --> 00:02:27,800 Speaker 2: only offering a dollar forty seven. 55 00:02:27,600 --> 00:02:29,440 Speaker 1: Hello eight percent discount. 56 00:02:29,600 --> 00:02:32,040 Speaker 2: So then why would anyone accept less than the net 57 00:02:32,080 --> 00:02:33,320 Speaker 2: tangible asset value? 58 00:02:33,400 --> 00:02:36,560 Speaker 1: Because NTA doesn't always equal market value. 59 00:02:36,600 --> 00:02:39,359 Speaker 2: If a business is underperforming or it has limited future 60 00:02:39,360 --> 00:02:42,400 Speaker 2: growth opportunities, investors may just decide to sell it a 61 00:02:42,400 --> 00:02:43,720 Speaker 2: slight discount. 62 00:02:43,240 --> 00:02:46,480 Speaker 1: Because, as the takeover group claims, a discounted exit is 63 00:02:46,600 --> 00:02:49,079 Speaker 1: much better than a slow and painful decline. 64 00:02:49,600 --> 00:02:52,760 Speaker 2: For our second story, Rugby Australia has locked in a 65 00:02:52,840 --> 00:02:55,840 Speaker 2: new major broadcast deal with nine and if they pull 66 00:02:55,840 --> 00:02:58,280 Speaker 2: off some wins it could mean even more cash for 67 00:02:58,320 --> 00:02:59,000 Speaker 2: the Wallabies. 68 00:02:59,240 --> 00:03:02,800 Speaker 1: That is a major coup potentially for Rugby Australia and 69 00:03:02,800 --> 00:03:04,760 Speaker 1: we all know they desperately need it. Juzzy boy, so 70 00:03:04,840 --> 00:03:05,440 Speaker 1: tell me more. 71 00:03:05,520 --> 00:03:07,840 Speaker 2: Okay. So rugby union has been a key part of 72 00:03:07,880 --> 00:03:10,960 Speaker 2: Australia's sporting DNA for a very long time yep. 73 00:03:11,000 --> 00:03:13,679 Speaker 1: From the Wallaby's World Cup victories in nineteen ninety one 74 00:03:13,720 --> 00:03:16,480 Speaker 1: and ninety nine to Super Rugby. It's been a popular sport, 75 00:03:16,520 --> 00:03:19,120 Speaker 1: particularly in New South Wales and Queensland, but the man. 76 00:03:19,080 --> 00:03:22,000 Speaker 2: The Wallabies haven't exactly been a try scoring machine. 77 00:03:22,080 --> 00:03:27,080 Speaker 1: Lately, Rugby Australia has been scrambling to revive its popularity. 78 00:03:26,480 --> 00:03:29,239 Speaker 2: But now in a win for rugby in Australia, Rugby 79 00:03:29,240 --> 00:03:32,960 Speaker 2: Australia has just signed a five year broadcast deal with nine. 80 00:03:32,760 --> 00:03:34,760 Speaker 1: And Juzu Boy. This deal is believed to be worth 81 00:03:34,840 --> 00:03:36,880 Speaker 1: around two hundred and ten million bucks and. 82 00:03:36,840 --> 00:03:39,080 Speaker 2: This is a forty percent jump from their last deal 83 00:03:39,280 --> 00:03:40,080 Speaker 2: and Juzzy Boy. 84 00:03:40,240 --> 00:03:42,440 Speaker 1: You know, ain't just the Wallabies, it's also the women's 85 00:03:42,520 --> 00:03:45,640 Speaker 1: national rugby team, the Wallaroos and Super Rugby matches. And 86 00:03:45,680 --> 00:03:49,640 Speaker 1: the juicy part is that the deal includes performance incentives 87 00:03:49,760 --> 00:03:50,520 Speaker 1: that means. 88 00:03:50,320 --> 00:03:54,040 Speaker 2: Rugby Australia gets bonus dollars if the Wallabies actually start. 89 00:03:53,840 --> 00:03:57,480 Speaker 1: Winning, because a winning team means winning ratings as well. 90 00:03:57,600 --> 00:03:59,040 Speaker 2: So what is the key learning here? 91 00:03:59,240 --> 00:04:02,520 Speaker 1: Live sport is still the holy grail for broadcasters in 92 00:04:02,680 --> 00:04:03,880 Speaker 1: this streaming era. 93 00:04:04,120 --> 00:04:06,160 Speaker 2: Be Man, We know that more people are cutting the 94 00:04:06,320 --> 00:04:09,200 Speaker 2: proverbial cord and giving up on traditional TV. 95 00:04:09,160 --> 00:04:11,520 Speaker 1: But does boy Livesport is one of the few things 96 00:04:11,520 --> 00:04:14,800 Speaker 1: that audiences still show up to watch in real time, and. 97 00:04:14,720 --> 00:04:16,720 Speaker 2: That makes it super valuable for nine. 98 00:04:16,760 --> 00:04:18,719 Speaker 1: On the one hand, it makes it more valuable for 99 00:04:18,760 --> 00:04:21,839 Speaker 1: advertisers who are getting a number of eyeballs on their brand. 100 00:04:21,960 --> 00:04:24,080 Speaker 2: On the other hand, it helps the growth of their 101 00:04:24,120 --> 00:04:27,359 Speaker 2: streaming platform Stan as well. In fact, be Man nine 102 00:04:27,400 --> 00:04:30,480 Speaker 2: said audiences for Rugby have grown eleven percent on STAN 103 00:04:30,640 --> 00:04:34,200 Speaker 2: since twenty twenty and seventeen percent on nine and nine 104 00:04:34,279 --> 00:04:37,200 Speaker 2: now and b Man for Rugby Australia. It's a financial 105 00:04:37,240 --> 00:04:40,200 Speaker 2: win in what's been a pretty tricky time. For our 106 00:04:40,360 --> 00:04:43,520 Speaker 2: third and final story, Warren Buffett was hoarding cash in 107 00:04:43,520 --> 00:04:46,239 Speaker 2: twenty twenty four while everyone was riding the bull market, 108 00:04:46,360 --> 00:04:49,279 Speaker 2: but now he's having the last laugh with all these tariffs. 109 00:04:49,560 --> 00:04:53,440 Speaker 1: Buffett aka Beyonce of the share market tell me more. 110 00:04:53,520 --> 00:04:55,000 Speaker 2: So we know Warren Buffett is one of the most 111 00:04:55,040 --> 00:04:57,600 Speaker 2: famous investors in the whole wide universe. 112 00:04:57,720 --> 00:05:00,440 Speaker 1: YEP. He started investing under the Berkshire Hathaway Now back 113 00:05:00,480 --> 00:05:03,159 Speaker 1: in nineteen sixty five with his old mate Charliemonger, and 114 00:05:03,200 --> 00:05:03,560 Speaker 1: the Man. 115 00:05:03,680 --> 00:05:07,360 Speaker 2: Berkshe Hathaway has some huge holdings in some big name companies. 116 00:05:07,400 --> 00:05:10,840 Speaker 2: We're talking Apple, Coca Cola, American Express. 117 00:05:10,440 --> 00:05:12,720 Speaker 1: The Juzzy Boy. In twenty twenty four, with every investor 118 00:05:12,760 --> 00:05:15,520 Speaker 1: buying into the bull market, but Warren Buffett was selling 119 00:05:15,600 --> 00:05:17,479 Speaker 1: down in fact, Bee Man. By the end of twenty 120 00:05:17,520 --> 00:05:20,480 Speaker 1: twenty four, Berkshey Hathaway was sitting on a record three 121 00:05:20,520 --> 00:05:23,080 Speaker 1: hundred and thirty four billion US dollars of cash, up 122 00:05:23,080 --> 00:05:25,520 Speaker 1: from just one hundred and sixty seven billion US dollars 123 00:05:25,640 --> 00:05:26,360 Speaker 1: the year before. 124 00:05:26,480 --> 00:05:29,240 Speaker 2: Buffett was hoarding US dollars like a squirrel with its 125 00:05:29,320 --> 00:05:31,480 Speaker 2: nuts before winter, Jully Boy. 126 00:05:31,800 --> 00:05:34,720 Speaker 1: With Trump's tariffs causing the US share markets still fall 127 00:05:34,760 --> 00:05:37,599 Speaker 1: by nearly six trillion bucks. Wow, the net worth of 128 00:05:37,680 --> 00:05:40,080 Speaker 1: nearly all the biggest investors in the world has plummeted. 129 00:05:40,160 --> 00:05:42,840 Speaker 1: The Berkshire Hathaway well, their shares are actually up. 130 00:05:42,800 --> 00:05:45,280 Speaker 2: More than nine percent, and that's because Buffett's had most 131 00:05:45,279 --> 00:05:48,479 Speaker 2: of Berkshe's cash sitting in a short term treasury bill. 132 00:05:48,600 --> 00:05:50,640 Speaker 1: Fascinating stuff. So what is the key learning here? 133 00:05:50,760 --> 00:05:53,520 Speaker 2: Be fearful when others are greedy, and greedy when others 134 00:05:53,520 --> 00:05:54,080 Speaker 2: are fearful. 135 00:05:54,240 --> 00:05:58,480 Speaker 1: That is the famous phrase that Warren Buffet Buffet said 136 00:05:58,480 --> 00:06:00,599 Speaker 1: back in two thousand and eight and lips you see 137 00:06:00,600 --> 00:06:00,960 Speaker 1: b Man. 138 00:06:01,040 --> 00:06:02,680 Speaker 2: The S and P five hundred was up more than 139 00:06:02,720 --> 00:06:04,680 Speaker 2: twenty three percent in twenty twenty four and. 140 00:06:04,640 --> 00:06:07,080 Speaker 1: The Nasdaq one hundred up nearly twenty nine percent in 141 00:06:07,120 --> 00:06:07,800 Speaker 1: twenty twenty four. 142 00:06:07,839 --> 00:06:10,320 Speaker 2: At the same time, Warren Buffett was trimming his states 143 00:06:10,320 --> 00:06:13,320 Speaker 2: in Apple and Bank America big time and b Man. 144 00:06:13,400 --> 00:06:15,320 Speaker 2: Holding cash can kind of make you feel like you're 145 00:06:15,320 --> 00:06:17,760 Speaker 2: missing out when markets are booming, but it also gives 146 00:06:17,800 --> 00:06:19,280 Speaker 2: you the opportunity. 147 00:06:18,680 --> 00:06:21,640 Speaker 1: To pounce when the markets turn like now yep. Holding 148 00:06:21,800 --> 00:06:25,119 Speaker 1: large cash reserves gives you optionality. For Berkshire, it means 149 00:06:25,200 --> 00:06:27,599 Speaker 1: they're not forced to sell assets at a loss. 150 00:06:27,320 --> 00:06:30,120 Speaker 2: And instead they can now pile into buy assets on 151 00:06:30,160 --> 00:06:34,040 Speaker 2: the chief forxamer what a week in business news? Pariskon up, 152 00:06:34,200 --> 00:06:37,839 Speaker 2: pariskone down, share market up, share market down, and companies 153 00:06:37,839 --> 00:06:39,839 Speaker 2: have been riding the waves all week. See if you 154 00:06:39,839 --> 00:06:42,120 Speaker 2: stayed across it, you have a great chance to win 155 00:06:42,240 --> 00:06:44,560 Speaker 2: quick six todays. Make sure to download the Flux app 156 00:06:44,560 --> 00:06:47,440 Speaker 2: and turn your notifications on to win that fifty bucks. 157 00:06:47,440 --> 00:06:50,040 Speaker 1: Thanks for listening, and we'll see you on Monday.