1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day, we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,520 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,600 --> 00:00:18,439 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:22,680 Speaker 1: at Bloomberg dot com slash podcast. All right, there is 7 00:00:22,760 --> 00:00:29,160 Speaker 1: no way for me too politely, UM express my reaction 8 00:00:29,400 --> 00:00:34,280 Speaker 1: to the non fungible token auction news that we got yesterday. 9 00:00:34,400 --> 00:00:37,720 Speaker 1: I mean, I think most people when they saw this 10 00:00:37,800 --> 00:00:41,239 Speaker 1: headline n f T SAIDs digital art record in sixty 11 00:00:41,360 --> 00:00:46,320 Speaker 1: nine million dollar sale. Um, most people have been shocked. 12 00:00:46,840 --> 00:00:50,280 Speaker 1: And everybody I've spoken to, granted they've all been over 13 00:00:50,320 --> 00:00:53,320 Speaker 1: the age of nineteen, has had trouble explaining it. So 14 00:00:53,320 --> 00:00:56,760 Speaker 1: we're gonna bring in John Louise, president of Ava Labs, 15 00:00:56,840 --> 00:01:00,360 Speaker 1: and may be able to better to help us better 16 00:01:00,480 --> 00:01:05,640 Speaker 1: understand what happened yesterday. Um, when someone agreed to pay 17 00:01:05,720 --> 00:01:10,200 Speaker 1: sixty nine million dollars for a piece of digital code 18 00:01:10,560 --> 00:01:18,240 Speaker 1: somehow attached to artwork. John, Uh, please give it a shot. Hey, Paul, 19 00:01:18,280 --> 00:01:20,200 Speaker 1: Hey Matt, thank you for having me and Paul's nice 20 00:01:20,200 --> 00:01:22,600 Speaker 1: to talk. It's been many years since I was on 21 00:01:22,640 --> 00:01:24,680 Speaker 1: the by side as a techi media industor and you're 22 00:01:24,720 --> 00:01:28,880 Speaker 1: on the shell side, So I thank yeah. So I 23 00:01:28,920 --> 00:01:31,039 Speaker 1: think it was fantastic. First of all, how cool was 24 00:01:31,080 --> 00:01:34,160 Speaker 1: it to watch the artist's live stream or and watch 25 00:01:34,240 --> 00:01:36,600 Speaker 1: it later on on YouTube and streamed the actual auction. 26 00:01:36,680 --> 00:01:39,000 Speaker 1: You got to see how they were. They went from 27 00:01:39,000 --> 00:01:41,200 Speaker 1: three to fourteen, then you have some big jumps to 28 00:01:41,240 --> 00:01:44,000 Speaker 1: fifty and then straight to sixty nine. That was just incredible. 29 00:01:44,480 --> 00:01:47,200 Speaker 1: So I think, you know, what happened yesterday is really 30 00:01:47,400 --> 00:01:51,200 Speaker 1: a function of not how not just how much people 31 00:01:51,200 --> 00:01:55,240 Speaker 1: appreciate people's art, which is fantastic. His previous piece sold 32 00:01:55,280 --> 00:01:58,200 Speaker 1: Little Ways Back for six million, so he's a fantastic artist. 33 00:01:58,720 --> 00:02:03,800 Speaker 1: But it's also uh enthusiasm for the whole space because 34 00:02:03,840 --> 00:02:06,000 Speaker 1: a lot of people now thinking what n F keys 35 00:02:06,200 --> 00:02:08,720 Speaker 1: can be and what they will do the end. Let's 36 00:02:08,760 --> 00:02:11,440 Speaker 1: start with that. Let's start with what it is John, 37 00:02:11,480 --> 00:02:14,480 Speaker 1: because I think people's art is pretty cool too. But 38 00:02:14,680 --> 00:02:21,600 Speaker 1: what was it that son bought? Okay, so he bought 39 00:02:22,200 --> 00:02:25,560 Speaker 1: basically an Offlencible token, which is basically a unique digital 40 00:02:25,600 --> 00:02:30,600 Speaker 1: representation of that and he actually had the only one 41 00:02:30,960 --> 00:02:36,280 Speaker 1: of that representation. But it's a line of code. But 42 00:02:36,800 --> 00:02:39,799 Speaker 1: I mean think about it though, the whole space, So 43 00:02:40,440 --> 00:02:43,440 Speaker 1: that art is fantastic, but the whole space is interested 44 00:02:43,600 --> 00:02:48,920 Speaker 1: in this area because business models are going to change. Um. 45 00:02:49,080 --> 00:02:53,680 Speaker 1: The collectible side of this is exploding. Also because the 46 00:02:53,919 --> 00:02:57,560 Speaker 1: code enables place discovery better. What I mean by that 47 00:02:57,720 --> 00:03:01,959 Speaker 1: is because it's cold code, because so it's frictionless. Suddenly 48 00:03:01,960 --> 00:03:04,640 Speaker 1: you don't have to have paperwork and paperwork upon paperwork. 49 00:03:04,919 --> 00:03:09,200 Speaker 1: It's digital, and then you have global asset access, giving 50 00:03:09,240 --> 00:03:12,840 Speaker 1: more people around the world to participate in these things, 51 00:03:13,320 --> 00:03:15,800 Speaker 1: and that leads to the better price discovery. I just 52 00:03:15,800 --> 00:03:19,520 Speaker 1: talked about participating watching it on YouTube. I was fortunate 53 00:03:19,560 --> 00:03:21,440 Speaker 1: enough as an investor together to go say, I saw 54 00:03:21,480 --> 00:03:24,120 Speaker 1: that Visa competitors to Christie's and watch how these auctions 55 00:03:24,160 --> 00:03:27,920 Speaker 1: were done. Suddenly everyone can participate and watch it and 56 00:03:27,960 --> 00:03:34,160 Speaker 1: see how this was done through the uh oh no, 57 00:03:34,600 --> 00:03:38,040 Speaker 1: oh no, we lost John, did we? And in an 58 00:03:38,080 --> 00:03:41,080 Speaker 1: age where you can pay sixty nine million dollars for 59 00:03:41,120 --> 00:03:43,960 Speaker 1: a line of code, we can't get phone lines to 60 00:03:44,000 --> 00:03:47,520 Speaker 1: stay good exactly. I mean, I agree with you, Matt. 61 00:03:47,560 --> 00:03:49,360 Speaker 1: I I found it is fascinating I'm trying to get 62 00:03:49,360 --> 00:03:50,920 Speaker 1: I'm still trying to get my head around n f 63 00:03:50,960 --> 00:03:53,640 Speaker 1: t S and fortunately there's a Bloomberg quick take there 64 00:03:53,680 --> 00:03:57,200 Speaker 1: that that really further my education. But you know, I 65 00:03:57,200 --> 00:04:00,960 Speaker 1: guess it's just a question of simply, uh you authenticating 66 00:04:01,000 --> 00:04:04,120 Speaker 1: these things, John, Do we have you back? Yes? I'm back? Sorry, 67 00:04:04,120 --> 00:04:06,360 Speaker 1: all right? John? So yeah, go ahead. So I don't 68 00:04:06,360 --> 00:04:08,000 Speaker 1: know where I left off, but you know, I was 69 00:04:08,040 --> 00:04:10,000 Speaker 1: saying I'm very excited about n f t S in 70 00:04:10,160 --> 00:04:13,880 Speaker 1: general and all these artists using it because business models 71 00:04:13,880 --> 00:04:16,560 Speaker 1: can change. And what I mean by that is there 72 00:04:16,600 --> 00:04:21,159 Speaker 1: are there are other rock bands, groups, events, stuff, people 73 00:04:21,279 --> 00:04:23,920 Speaker 1: all calling us to help them create n f t s. 74 00:04:24,320 --> 00:04:27,919 Speaker 1: So right now, ticketing, I mean the QR code is 75 00:04:27,960 --> 00:04:33,440 Speaker 1: actually fraud with fraud. UM artists now can actually program 76 00:04:33,680 --> 00:04:37,880 Speaker 1: secondary sales and get a percentage of the sales like 77 00:04:37,960 --> 00:04:40,440 Speaker 1: they couldn't before. So it's almost like a friend star 78 00:04:40,560 --> 00:04:46,600 Speaker 1: getting royalties. Tell us. So, I'm president of Ava Labs. 79 00:04:46,680 --> 00:04:49,920 Speaker 1: We are a blockchain, the next generation blockchain that provides 80 00:04:49,960 --> 00:04:54,159 Speaker 1: the scale and speed to enable transactions like yesterday's UM 81 00:04:54,360 --> 00:04:57,320 Speaker 1: sail in and what does and what does Justin Son? 82 00:04:57,400 --> 00:05:00,159 Speaker 1: So Justin Son is the investor who bought this. He 83 00:05:00,200 --> 00:05:02,320 Speaker 1: paid in ether, which is kind of a cool side note, 84 00:05:02,640 --> 00:05:05,520 Speaker 1: but what does he I mean he doesn't get a 85 00:05:05,560 --> 00:05:10,960 Speaker 1: painting or there's nothing signed by people. Um what does 86 00:05:11,000 --> 00:05:13,520 Speaker 1: he have with this line of code? Like can you 87 00:05:13,600 --> 00:05:18,920 Speaker 1: click on it and see the artwork? Or um, I 88 00:05:18,960 --> 00:05:21,680 Speaker 1: mean I can't get it? So he can have the 89 00:05:21,720 --> 00:05:24,800 Speaker 1: representation of it on his phone. He's the only one 90 00:05:24,839 --> 00:05:27,279 Speaker 1: that has it. But you don't really know what he 91 00:05:27,360 --> 00:05:30,320 Speaker 1: wants from it. Maybe this is the way he thinks 92 00:05:30,480 --> 00:05:34,159 Speaker 1: of his digital identity, his sovereign identity in other words, 93 00:05:34,160 --> 00:05:37,719 Speaker 1: like we're becoming more digital every single day, and maybe 94 00:05:37,760 --> 00:05:40,320 Speaker 1: this is the way he wants to represent himself. Think 95 00:05:40,360 --> 00:05:43,240 Speaker 1: about way back when when Prince had a big fight 96 00:05:43,320 --> 00:05:47,480 Speaker 1: with his label because basically the Prince name was effectively 97 00:05:47,560 --> 00:05:51,040 Speaker 1: owned by you know whatever label he was at, and 98 00:05:51,040 --> 00:05:53,520 Speaker 1: suddenly he trade these symbols to represent who he was 99 00:05:53,560 --> 00:05:57,280 Speaker 1: to end around that process. So maybe Justin is using 100 00:05:57,320 --> 00:06:00,040 Speaker 1: this as a future sovereign identity and to represent and 101 00:06:00,160 --> 00:06:02,200 Speaker 1: who he is, and that could be very cool. It 102 00:06:02,240 --> 00:06:03,960 Speaker 1: does say a lot about him. He paid a lot, 103 00:06:04,040 --> 00:06:06,200 Speaker 1: so that tells you something about him, and it tells 104 00:06:06,200 --> 00:06:09,679 Speaker 1: you a style of interest in art, so that maybe 105 00:06:09,720 --> 00:06:12,520 Speaker 1: what he's trying to use it for. Alright, So he's 106 00:06:12,520 --> 00:06:15,680 Speaker 1: speculating because he thinks he can resell this because there's 107 00:06:16,000 --> 00:06:18,960 Speaker 1: far more access around the world to buy this and 108 00:06:18,960 --> 00:06:21,760 Speaker 1: there's better price discovery. So in theory, I guess I've 109 00:06:21,800 --> 00:06:25,239 Speaker 1: also seen news John that you know Lebron James Uh 110 00:06:25,600 --> 00:06:27,960 Speaker 1: creating an n f T on a highlight reel. So 111 00:06:28,000 --> 00:06:31,720 Speaker 1: this can be applied in theory to almost any type 112 00:06:31,720 --> 00:06:36,720 Speaker 1: of content, couldn't it. That's right, that's right. Unlike the 113 00:06:37,480 --> 00:06:41,000 Speaker 1: UH content, a lot of the content we used to study, 114 00:06:41,560 --> 00:06:44,120 Speaker 1: I'm not sure the content that's being created, and some 115 00:06:44,200 --> 00:06:47,200 Speaker 1: of these NBA Top shots stuff can be resold. It 116 00:06:47,320 --> 00:06:51,000 Speaker 1: is really more of a collectible and there's an emotional connection, 117 00:06:51,120 --> 00:06:54,000 Speaker 1: just like someone buying baseball cards. They have an emotional 118 00:06:54,040 --> 00:06:57,400 Speaker 1: connection to that moment, that shot, and they're willing to 119 00:06:57,440 --> 00:06:59,719 Speaker 1: pay a high price for it, just like I have 120 00:06:59,760 --> 00:07:02,240 Speaker 1: a at a baseball card somewhere that probably is not 121 00:07:02,279 --> 00:07:06,520 Speaker 1: worth that much, but it means a lot to me personally. Alright, 122 00:07:06,600 --> 00:07:08,320 Speaker 1: So what are some of the next applications we should 123 00:07:08,360 --> 00:07:11,280 Speaker 1: look for? That's exactly what I was gonna ask. I 124 00:07:11,280 --> 00:07:14,640 Speaker 1: think you can see business models change UM event ticketing, 125 00:07:14,880 --> 00:07:19,160 Speaker 1: for instance, right now the artists basically sell tickets and 126 00:07:19,200 --> 00:07:21,720 Speaker 1: it goes out to the world and sometimes there's resales 127 00:07:21,720 --> 00:07:24,600 Speaker 1: of it through ticket Master and other places. Suddenly they 128 00:07:24,640 --> 00:07:27,160 Speaker 1: can have control and see where those tickets are going. 129 00:07:27,680 --> 00:07:30,120 Speaker 1: And it's better in the sense that you know, QR 130 00:07:30,240 --> 00:07:33,880 Speaker 1: codes is can easily be replicated and three or four 131 00:07:33,880 --> 00:07:36,080 Speaker 1: people can show up for that same seat. This will 132 00:07:36,120 --> 00:07:39,400 Speaker 1: be harder going forward. Like I said before, artists now 133 00:07:39,560 --> 00:07:44,120 Speaker 1: can have UM basically streams of revenue associated with secondary 134 00:07:44,120 --> 00:07:47,480 Speaker 1: sales of their UH collectibles to collect those their art 135 00:07:47,560 --> 00:07:50,920 Speaker 1: or whatever it is. Wow. This it opens up so 136 00:07:50,960 --> 00:07:53,400 Speaker 1: many different avenues. I'm not sure where to go, but 137 00:07:53,480 --> 00:07:55,680 Speaker 1: this is I feel like we're obviously the very very 138 00:07:55,760 --> 00:07:57,520 Speaker 1: very early innings here and we can learn a lot 139 00:07:57,560 --> 00:07:59,640 Speaker 1: more as we go along. John Wu, thanks so much 140 00:07:59,680 --> 00:08:02,320 Speaker 1: for joining us. John will He's a president of AVA Labs, 141 00:08:02,360 --> 00:08:08,080 Speaker 1: are based in Miami. Well President bidens one point nine 142 00:08:08,120 --> 00:08:11,880 Speaker 1: a trillion dollar bill that was recently signed that brings 143 00:08:11,960 --> 00:08:15,560 Speaker 1: the total, including last year, to six trillion dollars in 144 00:08:15,600 --> 00:08:19,680 Speaker 1: fiscal stimulus tied to the coronavirus. The question is is 145 00:08:19,680 --> 00:08:22,240 Speaker 1: that enough? Is that too much? Let's dig in with 146 00:08:22,440 --> 00:08:26,160 Speaker 1: Near Cassar. He is a Bloomberg opinion columnist and along 147 00:08:26,160 --> 00:08:28,720 Speaker 1: with Tim O'Brien, uh Near rhoda column saying, you know 148 00:08:28,760 --> 00:08:32,599 Speaker 1: what bidens were on COVID demands, war time stimulus and 149 00:08:32,679 --> 00:08:34,800 Speaker 1: it certainly feels that way. Near, thanks so much for 150 00:08:34,920 --> 00:08:37,959 Speaker 1: joining us here. When you think about the fiscal studies 151 00:08:38,040 --> 00:08:41,080 Speaker 1: that we've you know, put through again at six billion 152 00:08:41,080 --> 00:08:45,400 Speaker 1: dollars or put that in context for us, well, you know, 153 00:08:45,400 --> 00:08:47,960 Speaker 1: there's a lot of handwrying about the size of this 154 00:08:48,880 --> 00:08:51,120 Speaker 1: of this relief effort, and I think it's more relief 155 00:08:51,160 --> 00:08:54,480 Speaker 1: than stimulus, um. And it does seem like a lot 156 00:08:54,520 --> 00:08:56,719 Speaker 1: of six trillion dollars is a lot of money. But 157 00:08:56,760 --> 00:08:59,160 Speaker 1: when you put an historical context, when you look at 158 00:08:59,200 --> 00:09:03,120 Speaker 1: you know, other big spending measures and we we used 159 00:09:03,120 --> 00:09:05,320 Speaker 1: as an example, you know, what we spent on the 160 00:09:05,360 --> 00:09:07,480 Speaker 1: World War two effort. When you put that in the 161 00:09:07,520 --> 00:09:10,520 Speaker 1: context of a larger economy, it's it's not it's not 162 00:09:10,640 --> 00:09:12,679 Speaker 1: that big. I mean, one thing to keep in mind 163 00:09:12,760 --> 00:09:15,440 Speaker 1: is we have a twenty one trillion dollar economy, so 164 00:09:15,520 --> 00:09:18,679 Speaker 1: six trillion dollars on that is just under thirty in 165 00:09:19,720 --> 00:09:24,440 Speaker 1: five alone. Um. You know, defense spending was GDP, so 166 00:09:24,480 --> 00:09:27,400 Speaker 1: when you put in broader context, it doesn't appear as big. 167 00:09:27,520 --> 00:09:29,880 Speaker 1: Now that doesn't mean that there aren't reasons to criticize it, 168 00:09:30,120 --> 00:09:32,439 Speaker 1: as we have said, there are. You know, we wish 169 00:09:32,480 --> 00:09:36,080 Speaker 1: that the six trillion dollars had been spent more, let's 170 00:09:36,120 --> 00:09:40,160 Speaker 1: say smartly, you know, more targeted relief, more on infrastructure, 171 00:09:40,240 --> 00:09:43,280 Speaker 1: education and public health. But size doesn't seem to be 172 00:09:43,559 --> 00:09:46,320 Speaker 1: a very smart criticism of this, of this relief effort. 173 00:09:46,600 --> 00:09:49,000 Speaker 1: I don't know, man, I mean to use the term 174 00:09:49,160 --> 00:09:53,000 Speaker 1: hand ringing when talking about six trillion dollars seems a 175 00:09:53,040 --> 00:09:56,439 Speaker 1: little bit loaded. That's a lot of money. And to 176 00:09:56,559 --> 00:10:00,520 Speaker 1: compare this to World War Two, in which seven five 177 00:10:00,800 --> 00:10:07,200 Speaker 1: million people died, seems um a grand gesture. I think 178 00:10:07,240 --> 00:10:11,920 Speaker 1: it's fair to say this is an absolute ton of 179 00:10:12,040 --> 00:10:15,000 Speaker 1: money going into the economy. And I don't think that 180 00:10:15,120 --> 00:10:22,280 Speaker 1: Larry Summer's concerns about overheating are going too far. Um. 181 00:10:22,320 --> 00:10:26,079 Speaker 1: It's it's not that I don't have sympathy for people 182 00:10:26,080 --> 00:10:29,200 Speaker 1: who have lost jobs. I do, and I think it's 183 00:10:29,280 --> 00:10:33,240 Speaker 1: alarming when you look at um initial jobless claims were 184 00:10:33,280 --> 00:10:37,360 Speaker 1: at records every single week since August, and you know, 185 00:10:37,800 --> 00:10:40,200 Speaker 1: it's worse than it was in a great financial crisis. 186 00:10:40,240 --> 00:10:44,079 Speaker 1: But still, this is a big sledgehammer with which to 187 00:10:44,200 --> 00:10:47,440 Speaker 1: hit this problem. And I think a comparison to World 188 00:10:47,480 --> 00:10:51,520 Speaker 1: War Two is just going a little far. Well. I mean, 189 00:10:51,559 --> 00:10:54,320 Speaker 1: you can compare it to to f fine, I mean, 190 00:10:54,360 --> 00:10:56,079 Speaker 1: you can compare it to anything you liked. I mean, 191 00:10:56,960 --> 00:10:59,640 Speaker 1: but not something in which seventy million people died, because 192 00:10:59,640 --> 00:11:03,720 Speaker 1: that's an even bigger pandemic than this, by like exponentially bigger. 193 00:11:05,000 --> 00:11:06,839 Speaker 1: Well not in the US, and fairness right, so many 194 00:11:06,840 --> 00:11:09,000 Speaker 1: five million people didn't die in the US, but but 195 00:11:09,160 --> 00:11:11,599 Speaker 1: way more how many people how many Americans died in 196 00:11:11,640 --> 00:11:15,080 Speaker 1: World War Two? But let's leave that aside for a minute. 197 00:11:15,120 --> 00:11:17,160 Speaker 1: I mean, I think what we ought to talk about 198 00:11:17,320 --> 00:11:19,800 Speaker 1: is what is it that we're trying to solve, what 199 00:11:19,920 --> 00:11:23,199 Speaker 1: should be the solution, and what are the potential problems. 200 00:11:23,240 --> 00:11:25,000 Speaker 1: I mean, one of the things that Lara's Summers is 201 00:11:25,040 --> 00:11:27,520 Speaker 1: worried about, as a lot of people are worried about installation. 202 00:11:28,240 --> 00:11:30,920 Speaker 1: But if I said to you, show me where inflation 203 00:11:31,280 --> 00:11:33,880 Speaker 1: is is worrisome in this moment, it would be very 204 00:11:33,880 --> 00:11:37,400 Speaker 1: difficult to produce that evidence. I mean, in theory, you 205 00:11:37,440 --> 00:11:40,640 Speaker 1: could get more inflation from the cocktail factors that are 206 00:11:40,679 --> 00:11:44,439 Speaker 1: on the table. Supply chains obviously are strained. There's a 207 00:11:44,480 --> 00:11:47,680 Speaker 1: lot of stimulus and relief that's been spent. Uh, you know, 208 00:11:47,800 --> 00:11:51,560 Speaker 1: saving has spiked. All of that in theory would cause inflation, 209 00:11:51,800 --> 00:11:54,320 Speaker 1: but there's no we haven't seen inflation. There's no reason 210 00:11:54,360 --> 00:11:57,600 Speaker 1: to think that worse in inflation is actually on the horizon. Now, 211 00:11:57,840 --> 00:12:00,120 Speaker 1: now couple that with the fact that you have a 212 00:12:00,160 --> 00:12:02,440 Speaker 1: lot of people in this country that are suffering. Yes, 213 00:12:02,520 --> 00:12:04,599 Speaker 1: a lot of people have done okay in this pandemic, 214 00:12:04,880 --> 00:12:07,040 Speaker 1: but there are, by by good estimates, there are more 215 00:12:07,040 --> 00:12:09,480 Speaker 1: than fifty million people in this country that are food 216 00:12:09,480 --> 00:12:12,200 Speaker 1: and secure. Those people have to be said, um, and 217 00:12:12,240 --> 00:12:14,600 Speaker 1: so we can argue, especially since their food costs more 218 00:12:14,640 --> 00:12:18,080 Speaker 1: and more near even though you haven't seen inflation, there 219 00:12:18,120 --> 00:12:24,560 Speaker 1: has been right in food prices and gas. Well, I 220 00:12:24,600 --> 00:12:26,640 Speaker 1: mean maybe I should ask you what would you how 221 00:12:26,640 --> 00:12:29,760 Speaker 1: would you propose to solve the problem? No, I I'm 222 00:12:29,800 --> 00:12:33,320 Speaker 1: just pointing out I think that, um, it's better to 223 00:12:33,400 --> 00:12:35,959 Speaker 1: air on the side of spending too much than too little. 224 00:12:36,400 --> 00:12:39,520 Speaker 1: But you can't say that we haven't seen inflation and 225 00:12:39,559 --> 00:12:42,560 Speaker 1: then start talking about people who can't afford food, when indeed, 226 00:12:42,600 --> 00:12:45,839 Speaker 1: we have seen inflation. Look at ground beef prices, they 227 00:12:45,880 --> 00:12:49,040 Speaker 1: continue to march higher and higher and higher. Look at 228 00:12:49,080 --> 00:12:51,559 Speaker 1: gasoline prices. Paul filled up for three dollars ago. And 229 00:12:51,600 --> 00:12:54,760 Speaker 1: so we have seen inflation. And listeners and viewers get 230 00:12:54,760 --> 00:12:58,439 Speaker 1: really angry when they have trouble paying the grocery store 231 00:12:58,480 --> 00:13:01,080 Speaker 1: bill and it's expensive to dry. I'm there, and then 232 00:13:01,120 --> 00:13:03,800 Speaker 1: they hear on Bloomberg Radio that we haven't seen inflation, 233 00:13:03,840 --> 00:13:06,960 Speaker 1: because of course we've seen inflation. It's just that, you know, 234 00:13:07,000 --> 00:13:10,760 Speaker 1: maybe iPads aren't more expensive, but the stuff they need 235 00:13:10,960 --> 00:13:15,480 Speaker 1: to live is more expensive. Hang on, we should share 236 00:13:15,480 --> 00:13:18,840 Speaker 1: the number. So, as you know, core CPI last month, 237 00:13:18,880 --> 00:13:21,559 Speaker 1: the number came in less than expected. Year over year, 238 00:13:21,640 --> 00:13:24,440 Speaker 1: core CPI is up one point three percent and CPI 239 00:13:24,559 --> 00:13:27,400 Speaker 1: is up one point seven percent. That's still well below 240 00:13:27,440 --> 00:13:30,000 Speaker 1: the FEDS targeted two percent and well below the historical 241 00:13:30,040 --> 00:13:34,000 Speaker 1: inflation rate going back to one of two point two percent. 242 00:13:34,280 --> 00:13:36,319 Speaker 1: So while we can cherry pick, you know, one of 243 00:13:36,400 --> 00:13:38,880 Speaker 1: the other, uh, one of the other sort of data point, 244 00:13:39,240 --> 00:13:44,560 Speaker 1: the larger picture still shows that inflation has um has 245 00:13:44,600 --> 00:13:48,040 Speaker 1: been low and and if anything, we're having trouble even 246 00:13:48,040 --> 00:13:50,319 Speaker 1: with the six trillion dollars. We're having a trouble getting 247 00:13:50,320 --> 00:13:52,440 Speaker 1: it up. And by and by the way, that's been 248 00:13:52,480 --> 00:13:54,559 Speaker 1: the story of the U S since the financial crisis. 249 00:13:54,640 --> 00:13:57,080 Speaker 1: People have been screaming inflation since then and the four 250 00:13:57,160 --> 00:14:00,240 Speaker 1: trillion dollars we spent to stimulate men and we still 251 00:14:00,240 --> 00:14:04,600 Speaker 1: haven't gotten inviation. So I also want to I also 252 00:14:04,640 --> 00:14:06,319 Speaker 1: want to point out here that you are correct. I've 253 00:14:06,360 --> 00:14:09,319 Speaker 1: I've looked into it. Well, in terms of World War two, 254 00:14:10,120 --> 00:14:12,760 Speaker 1: more people, many more people have died of COVID in 255 00:14:12,800 --> 00:14:16,760 Speaker 1: America than died from World War two. Two thousand soldiers 256 00:14:16,760 --> 00:14:19,480 Speaker 1: were killed in the war thanks to my producer, and 257 00:14:19,880 --> 00:14:22,040 Speaker 1: well over five hundred thousand have died from COVID. So 258 00:14:22,080 --> 00:14:24,920 Speaker 1: maybe it is a fair comparison near case or thank 259 00:14:24,920 --> 00:14:31,080 Speaker 1: you so much for that. We appreciated Lauren sour now 260 00:14:31,160 --> 00:14:34,520 Speaker 1: for our weekly visit the Johns Hopkins School of Medicine, 261 00:14:34,560 --> 00:14:37,800 Speaker 1: where she is an Associate Professor of Emergency Medicine. Lauren, 262 00:14:38,800 --> 00:14:43,600 Speaker 1: we heard President Biden yesterday say that all adults should 263 00:14:43,600 --> 00:14:49,960 Speaker 1: be eligible for vaccines by May one. Does that seem 264 00:14:50,000 --> 00:14:54,560 Speaker 1: aggressive or reasonable to you? I think it's probably both. 265 00:14:54,600 --> 00:14:57,280 Speaker 1: Actually it is. It will need to be aggressive in 266 00:14:57,360 --> 00:14:59,280 Speaker 1: order to meet it. But I think it's reasonable to 267 00:14:59,360 --> 00:15:01,960 Speaker 1: think that with some of these novel strategies that we're 268 00:15:01,960 --> 00:15:06,320 Speaker 1: going through UM and turning on now that you know that, 269 00:15:06,480 --> 00:15:10,360 Speaker 1: that we could see UH May first target date. I 270 00:15:10,400 --> 00:15:12,400 Speaker 1: guess I would call it to get vaccine into the 271 00:15:12,480 --> 00:15:15,520 Speaker 1: arms of every American. I mean, I think the key 272 00:15:15,560 --> 00:15:18,160 Speaker 1: about meeting that deadline is going to be beyond setting 273 00:15:18,200 --> 00:15:21,240 Speaker 1: up the infrastructure and making sure UM taking that next 274 00:15:21,280 --> 00:15:23,200 Speaker 1: step to make sure that people are there waiting to 275 00:15:23,240 --> 00:15:26,120 Speaker 1: receive it, UM, that they can have the access points 276 00:15:26,120 --> 00:15:28,400 Speaker 1: and safely get to the vaccine, and that they're willing 277 00:15:28,440 --> 00:15:30,400 Speaker 1: to make it. So a lot of community work has 278 00:15:30,440 --> 00:15:33,320 Speaker 1: to happen between now and then. So, Lauren, we're clearly 279 00:15:33,400 --> 00:15:35,440 Speaker 1: right now in a in a in a period where 280 00:15:35,560 --> 00:15:39,800 Speaker 1: demand a well outstrips supply, but presumably that's going to 281 00:15:39,880 --> 00:15:44,280 Speaker 1: change over the next several weeks going into May. Then 282 00:15:44,320 --> 00:15:47,160 Speaker 1: the challenge probably becomes, as we've heard from many folks 283 00:15:47,160 --> 00:15:51,520 Speaker 1: like yourself, educating those folks that are reluctant to get 284 00:15:51,600 --> 00:15:53,400 Speaker 1: the shot. What can you tell us now about your 285 00:15:53,400 --> 00:15:57,520 Speaker 1: experiences there? Yeah, I mean, simply having the vaccine, enough 286 00:15:57,600 --> 00:16:00,840 Speaker 1: vaccine available for everyone in America doesn't mean that everyone 287 00:16:00,840 --> 00:16:03,000 Speaker 1: in America is going to, you know, wake up on 288 00:16:03,320 --> 00:16:05,960 Speaker 1: May second with vaccine in their arms. But it's a 289 00:16:05,960 --> 00:16:09,560 Speaker 1: lot there's a lot of really strong trust rebuilding that 290 00:16:09,680 --> 00:16:12,680 Speaker 1: has to happen. I mean, UM, during the last administration, 291 00:16:12,760 --> 00:16:15,560 Speaker 1: we lost we lost a lot of our trusted communicators, 292 00:16:15,680 --> 00:16:18,400 Speaker 1: especially around health and public health. And we're building that 293 00:16:18,400 --> 00:16:20,840 Speaker 1: trust back up. And and there's many communities across the 294 00:16:20,880 --> 00:16:23,560 Speaker 1: country and even across the Glow that that trust wasn't 295 00:16:23,600 --> 00:16:25,920 Speaker 1: really there to begin with. UM. And so we have 296 00:16:25,920 --> 00:16:28,640 Speaker 1: a lot of work to do to make sure that communities, 297 00:16:28,680 --> 00:16:33,400 Speaker 1: vulnerable communities UM believe in the system that created and 298 00:16:33,560 --> 00:16:36,680 Speaker 1: is administering these vaccines, and and that that is work, 299 00:16:36,800 --> 00:16:38,960 Speaker 1: that's real work that has to happen and should already 300 00:16:38,960 --> 00:16:41,160 Speaker 1: be happening in a lot of places. How do we 301 00:16:41,200 --> 00:16:44,040 Speaker 1: go about that? I talked to Richard Edelman this morning, 302 00:16:44,760 --> 00:16:47,720 Speaker 1: who said, one good idea could be to get corporate 303 00:16:47,760 --> 00:16:52,280 Speaker 1: bosses to tell their employees because you know, it's it's 304 00:16:52,320 --> 00:16:56,320 Speaker 1: closer to home, You're you're likely to trust somebody right there, 305 00:16:56,440 --> 00:16:59,600 Speaker 1: especially UM in a lot of cases, someone for whom 306 00:16:59,600 --> 00:17:03,280 Speaker 1: you were Do you think there are other strategies that 307 00:17:03,280 --> 00:17:08,120 Speaker 1: that could work. Well, Yeah, I think, UM the key 308 00:17:08,240 --> 00:17:11,400 Speaker 1: is to be UM, to be very careful that you're 309 00:17:11,400 --> 00:17:15,080 Speaker 1: not moving from building trust to being coercive. Right. And 310 00:17:15,119 --> 00:17:19,160 Speaker 1: so the boss the employee employer relationship can be really 311 00:17:19,240 --> 00:17:22,959 Speaker 1: challenging to navigate simply because UM it can go around 312 00:17:22,960 --> 00:17:26,000 Speaker 1: like work workplace requirements like is this a requirement or 313 00:17:26,040 --> 00:17:28,080 Speaker 1: is this the trusted relationship I have with my boss, 314 00:17:28,119 --> 00:17:32,080 Speaker 1: he's telling me that he or she believes in the vaccine. UM. 315 00:17:32,119 --> 00:17:34,119 Speaker 1: A place that a lot of this work can be 316 00:17:34,160 --> 00:17:38,040 Speaker 1: done is in the local church groups, local faith based organization, 317 00:17:38,119 --> 00:17:43,080 Speaker 1: local community leaders, people who UM who have the trust 318 00:17:43,119 --> 00:17:45,560 Speaker 1: of their community and can be messengers that this is 319 00:17:45,600 --> 00:17:47,879 Speaker 1: a safe and effective vaccine and we need this for 320 00:17:48,000 --> 00:17:50,679 Speaker 1: each other, for ourselves, but also for each other to 321 00:17:50,760 --> 00:17:54,720 Speaker 1: keep our most vulnerable population safe. UM. Community work is 322 00:17:54,760 --> 00:17:57,639 Speaker 1: growing in this space, and I think there's people UM 323 00:17:57,680 --> 00:18:00,200 Speaker 1: way smarter about it than me, uh, doing a lot 324 00:18:00,200 --> 00:18:02,760 Speaker 1: of work here to make sure that the message is 325 00:18:02,800 --> 00:18:05,680 Speaker 1: not just get the vaccine, but here's why you can 326 00:18:05,720 --> 00:18:08,119 Speaker 1: trust the vaccine, here's why the vaccine is not just 327 00:18:08,200 --> 00:18:11,399 Speaker 1: safe but also effective. UM. And it's really important to 328 00:18:11,720 --> 00:18:15,680 Speaker 1: reopening the country. So Lauren, you know the vaccines are 329 00:18:15,800 --> 00:18:18,520 Speaker 1: coming fast and furious. That's the good news that one 330 00:18:18,520 --> 00:18:21,120 Speaker 1: of the concerns that really still lingers out there are 331 00:18:21,160 --> 00:18:25,960 Speaker 1: some of these variants that are out there. What's the latest. Yeah, 332 00:18:26,000 --> 00:18:29,040 Speaker 1: there's several variants that I think people are keeping an 333 00:18:29,040 --> 00:18:32,680 Speaker 1: eye on. I do think that part of what's happening 334 00:18:32,760 --> 00:18:34,920 Speaker 1: is that this is the first time we've just been 335 00:18:34,960 --> 00:18:39,640 Speaker 1: having variant discussions out in the public, you know, really, um, 336 00:18:39,720 --> 00:18:42,520 Speaker 1: all across the board, and I think there there's a lot. 337 00:18:42,760 --> 00:18:45,520 Speaker 1: The way we talk about variants is really important because 338 00:18:45,560 --> 00:18:48,560 Speaker 1: some are variants of concerns. Some are variants to watch 339 00:18:48,640 --> 00:18:51,480 Speaker 1: because they may change the dynamics of the outbreak or 340 00:18:51,480 --> 00:18:54,600 Speaker 1: the pandemic, and some are are simply natural things that 341 00:18:54,640 --> 00:18:57,160 Speaker 1: happened to a virus as it moves through a population 342 00:18:57,560 --> 00:19:00,520 Speaker 1: that actually doesn't change the dynamic of the outbreak of 343 00:19:00,560 --> 00:19:03,960 Speaker 1: the pandemic. And so UM, we're watching two or three 344 00:19:04,040 --> 00:19:06,159 Speaker 1: right now that are I think important and may have 345 00:19:06,200 --> 00:19:09,560 Speaker 1: an impact on vaccines and therapeutics. UM. But the companies 346 00:19:09,560 --> 00:19:13,080 Speaker 1: are adjusting, which is good because UM, along with this 347 00:19:13,240 --> 00:19:15,760 Speaker 1: increased you know, sort of observing as a variant and 348 00:19:15,840 --> 00:19:18,439 Speaker 1: the science around it means that we are seeing them faster, 349 00:19:18,640 --> 00:19:22,359 Speaker 1: which is also really good. What about the kids, Lauren, 350 00:19:22,400 --> 00:19:25,560 Speaker 1: I mean, the boomers are pretty much covered now. Um. 351 00:19:25,760 --> 00:19:29,840 Speaker 1: Generation golf is coming along quickly, and then your millennial 352 00:19:29,920 --> 00:19:34,280 Speaker 1: cohort is going to get shots. Um. But still we 353 00:19:34,320 --> 00:19:37,400 Speaker 1: don't really know a lot about kids under sixteen, right, 354 00:19:37,520 --> 00:19:41,960 Speaker 1: what's gen Z gonna do? Yeah, there's actually work being 355 00:19:42,000 --> 00:19:45,280 Speaker 1: done on the vaccine side to under like bridging studies 356 00:19:45,280 --> 00:19:49,199 Speaker 1: to understand how the vaccines do in pediatric populations in 357 00:19:49,280 --> 00:19:51,760 Speaker 1: the kids. Um, And I think it is a big 358 00:19:51,760 --> 00:19:53,840 Speaker 1: push to get this work done so that we can 359 00:19:54,000 --> 00:19:57,920 Speaker 1: take that one step closer to reopening schools safely. So UM, 360 00:19:58,200 --> 00:20:00,359 Speaker 1: I agree with you. I think that there's still a 361 00:20:00,400 --> 00:20:02,639 Speaker 1: lot of work and knowledge building that has to happen 362 00:20:02,680 --> 00:20:05,199 Speaker 1: in that population. But I also think that it is 363 00:20:05,240 --> 00:20:08,879 Speaker 1: being done. Um. You know, luckily the the infections are lower, 364 00:20:08,920 --> 00:20:12,520 Speaker 1: which is great for kids, but also not it makes 365 00:20:12,520 --> 00:20:14,840 Speaker 1: it a little harder to do the studies. So UM, 366 00:20:14,880 --> 00:20:17,240 Speaker 1: we have to just sort of keep enrolling as many 367 00:20:17,320 --> 00:20:20,600 Speaker 1: kids into those studies as we can safely and effectively UM, 368 00:20:20,640 --> 00:20:22,960 Speaker 1: and hope that on the other end, we have products 369 00:20:22,960 --> 00:20:26,879 Speaker 1: that are safe for them and get them back into schools. Faster. Lauren, 370 00:20:26,920 --> 00:20:29,560 Speaker 1: thank you so much again for joining us and sharing 371 00:20:29,560 --> 00:20:31,560 Speaker 1: your wisdom with us as we make our way through 372 00:20:31,560 --> 00:20:34,800 Speaker 1: this pandemic and now through the better times of these vaccinations. 373 00:20:34,880 --> 00:20:38,760 Speaker 1: Laurence Sour, Associate Professor of Emergency Medicine that Johns Hopkins 374 00:20:38,880 --> 00:20:41,480 Speaker 1: School of Medicine. I should know that the Bloomberg School 375 00:20:41,480 --> 00:20:45,280 Speaker 1: of Public Health at Johns Hopkins is supported by Michael R. Bloomberg, 376 00:20:45,400 --> 00:20:52,400 Speaker 1: founder Bloomberg LP, Bloomberg Philanthropies, and this radio station. Mark 377 00:20:52,440 --> 00:20:56,560 Speaker 1: Metric is the CEO of Sacks and Adam Burger Managing 378 00:20:56,560 --> 00:20:59,840 Speaker 1: director of Insight Partners. The two are working together on 379 00:21:00,680 --> 00:21:03,960 Speaker 1: the spinoff of what I believe to be one of 380 00:21:04,040 --> 00:21:07,520 Speaker 1: the most iconic department stores in the United States of America. 381 00:21:07,600 --> 00:21:12,240 Speaker 1: Sacks Fifth Avenue is a luxury business that everyone sort 382 00:21:12,280 --> 00:21:15,280 Speaker 1: of grows up knowing. It's kind of the pinnacle um 383 00:21:15,320 --> 00:21:19,080 Speaker 1: of of luxury shopping as a destination in New York City. 384 00:21:19,080 --> 00:21:22,240 Speaker 1: Tourists go there all the time. Um, Mark, now you 385 00:21:22,240 --> 00:21:25,520 Speaker 1: want to bring it online. Uh, now you have brought 386 00:21:25,520 --> 00:21:28,440 Speaker 1: it online and you want to make it its own business? 387 00:21:28,440 --> 00:21:32,800 Speaker 1: Why I separate it? Well, first, thanks for having me. Uh, 388 00:21:33,119 --> 00:21:35,840 Speaker 1: you know we've been online actually for almost twenty years. 389 00:21:35,920 --> 00:21:38,800 Speaker 1: So I think it's why partner up with somebody like 390 00:21:38,880 --> 00:21:42,159 Speaker 1: Insight and go to rapidly grow it. And that's because 391 00:21:42,280 --> 00:21:45,400 Speaker 1: you know, the luxury online market is about to explode. 392 00:21:45,520 --> 00:21:47,439 Speaker 1: I mean, it's going to triple in the next few years. 393 00:21:48,040 --> 00:21:51,760 Speaker 1: And I am a believer that twenty years ago when 394 00:21:51,800 --> 00:21:54,040 Speaker 1: we all went online the first time, we didn't invest 395 00:21:54,080 --> 00:21:56,080 Speaker 1: the right way. You know, we had our scores, we 396 00:21:56,080 --> 00:21:57,440 Speaker 1: had things we had to worry about, We had to 397 00:21:57,480 --> 00:22:01,560 Speaker 1: be very you know, we had to make decisions a lot, uh, 398 00:22:01,640 --> 00:22:04,160 Speaker 1: you know, about about where to invest. And I think 399 00:22:04,240 --> 00:22:07,199 Speaker 1: this time, this iteration of growth, um, we're gonna be 400 00:22:07,359 --> 00:22:10,200 Speaker 1: there and we're gonna you know, we're gonna be able 401 00:22:10,280 --> 00:22:15,840 Speaker 1: to really exploit uh, this market that's that's about to trample. Adam. 402 00:22:16,080 --> 00:22:18,200 Speaker 1: Talk to us about kind of your view of the 403 00:22:18,240 --> 00:22:22,040 Speaker 1: business here. You're investing five million dollars into Sacks and 404 00:22:22,080 --> 00:22:26,120 Speaker 1: implying evaluation of two billion dollars for this business. Talk 405 00:22:26,160 --> 00:22:28,560 Speaker 1: to us about, you know, kind of what was behind 406 00:22:28,640 --> 00:22:32,520 Speaker 1: your investment rationale there. Well, thanks for having me as well, 407 00:22:32,560 --> 00:22:36,200 Speaker 1: and you actually stole some of my thunder. The rationale 408 00:22:36,320 --> 00:22:39,359 Speaker 1: is exactly what you said. This is an iconic department store. 409 00:22:39,920 --> 00:22:43,240 Speaker 1: This is like a once in a lifetime career opportunity 410 00:22:43,280 --> 00:22:46,240 Speaker 1: to invest in a legendary brand like this, over a 411 00:22:46,320 --> 00:22:49,360 Speaker 1: hundred and fifty years old, that is making a very 412 00:22:49,440 --> 00:22:53,640 Speaker 1: bold pivot to a digital first approach. They have an 413 00:22:53,640 --> 00:23:00,200 Speaker 1: extraordinary legacy. There's still the place for designers together and 414 00:23:00,320 --> 00:23:05,479 Speaker 1: create the highest experience for luxury and aspirational fashion. And 415 00:23:05,720 --> 00:23:08,879 Speaker 1: that's just a rare opportunity for a software company like 416 00:23:08,960 --> 00:23:12,159 Speaker 1: our software investor like ours that looks at thousands of 417 00:23:12,240 --> 00:23:14,879 Speaker 1: companies every year. You don't get a chance in software 418 00:23:14,920 --> 00:23:16,679 Speaker 1: to invest in How did your whole brand like this? 419 00:23:18,720 --> 00:23:21,520 Speaker 1: What is it about online the online experience that you 420 00:23:21,520 --> 00:23:26,600 Speaker 1: think you can improve? Mark? And do shoppers online pick 421 00:23:26,720 --> 00:23:30,159 Speaker 1: different stuff than shoppers in the store. They're looking for 422 00:23:30,200 --> 00:23:33,840 Speaker 1: different stuff. Can you aim them at different things? Well? 423 00:23:33,920 --> 00:23:39,000 Speaker 1: I think you know, first the online um luxury experience, 424 00:23:39,720 --> 00:23:43,720 Speaker 1: which I believe we're going to reinvent candidly. You can 425 00:23:43,760 --> 00:23:46,080 Speaker 1: direct people, you could be there for what they want. 426 00:23:46,320 --> 00:23:49,280 Speaker 1: But what's great about SASS as a fashion authority? You know, 427 00:23:49,320 --> 00:23:51,320 Speaker 1: and Adam mentioned it, you know we've been doing this 428 00:23:51,480 --> 00:23:54,600 Speaker 1: for a hundred years. Uh. In our stores we are 429 00:23:54,760 --> 00:23:57,280 Speaker 1: an arbiter. You know, we help the customer pick what 430 00:23:57,320 --> 00:24:00,159 Speaker 1: they want. We're not going to be even online a 431 00:24:00,240 --> 00:24:03,000 Speaker 1: spear fishing type of experience where somebody wants a Gucci 432 00:24:03,080 --> 00:24:04,800 Speaker 1: bag or they want this bag and they come and 433 00:24:04,840 --> 00:24:07,320 Speaker 1: they get it. Zax is always going to be helping 434 00:24:07,359 --> 00:24:11,320 Speaker 1: our customers find and experience the best product. Um. So 435 00:24:11,359 --> 00:24:13,320 Speaker 1: that's you know, on the on the fashion side, on 436 00:24:13,359 --> 00:24:16,520 Speaker 1: the experience side, we're going to be investing and really 437 00:24:16,560 --> 00:24:20,800 Speaker 1: pushing to improve cradle to grave, uh, the entire customer experience. 438 00:24:20,800 --> 00:24:23,440 Speaker 1: So it's everything from how we market to you, how 439 00:24:23,440 --> 00:24:25,920 Speaker 1: we connect with you, how we ship you the product, 440 00:24:26,000 --> 00:24:28,000 Speaker 1: what it feels like when it comes to you, what 441 00:24:28,080 --> 00:24:29,800 Speaker 1: it's like when you call us to chat with us 442 00:24:29,800 --> 00:24:32,520 Speaker 1: about it, or god forbid, if you return it, what 443 00:24:32,680 --> 00:24:36,480 Speaker 1: is that like. So we're investing across the entire experience 444 00:24:36,560 --> 00:24:39,200 Speaker 1: in Journey, and we're doing it very quickly. I assume 445 00:24:39,280 --> 00:24:44,440 Speaker 1: returns are pre addressed labels, no fuss, no must put 446 00:24:44,440 --> 00:24:46,040 Speaker 1: it back in the box and you send somebody to 447 00:24:46,080 --> 00:24:49,240 Speaker 1: pick it up for me. That is what's going to 448 00:24:49,320 --> 00:24:51,560 Speaker 1: be happening. But you know, you know, to be honest, 449 00:24:51,640 --> 00:24:54,639 Speaker 1: that's not where we are today. But yes, that investment 450 00:24:54,640 --> 00:24:58,199 Speaker 1: goes towards this and actually you know, up until Monday, 451 00:24:58,440 --> 00:25:01,720 Speaker 1: Zax charge you for returns. Uh. And one of the 452 00:25:01,760 --> 00:25:03,680 Speaker 1: first things we did, I mean we closed the deal 453 00:25:03,720 --> 00:25:07,400 Speaker 1: I believe on Thursday, uh and and really started wheat 454 00:25:07,440 --> 00:25:11,440 Speaker 1: pivoting and pushing the business. We went to free returns 455 00:25:11,720 --> 00:25:17,639 Speaker 1: Monday morning, Adam dollars, Where do you think that money 456 00:25:17,720 --> 00:25:22,320 Speaker 1: needs to be invested? Well, where we're invested in isn't 457 00:25:22,320 --> 00:25:24,320 Speaker 1: a great team. And I know that sounds like a 458 00:25:24,320 --> 00:25:27,640 Speaker 1: slightly glib comment, but that's also just a rare opportunity 459 00:25:27,680 --> 00:25:31,160 Speaker 1: to have this great team who was running the entire 460 00:25:31,280 --> 00:25:35,280 Speaker 1: sex business now coming over and focusing first online. But 461 00:25:35,400 --> 00:25:38,159 Speaker 1: where they're going to spend most of the money is 462 00:25:38,320 --> 00:25:44,480 Speaker 1: quite frankly, in marketing and increasing the customer base by 463 00:25:44,480 --> 00:25:48,399 Speaker 1: expanding the opportunity to a wider audience, and as Mark said, 464 00:25:49,240 --> 00:25:52,040 Speaker 1: going up and down the line and increasing the experience, 465 00:25:52,080 --> 00:25:56,120 Speaker 1: whether it's from fulfillment to customer service to a better 466 00:25:56,160 --> 00:26:01,520 Speaker 1: website experience, all of those are opportunities and we're excited 467 00:26:01,520 --> 00:26:04,440 Speaker 1: to back a really strong team that's also going to 468 00:26:04,520 --> 00:26:08,119 Speaker 1: be assisted by Sebastian Gunningham who's joining the team as 469 00:26:08,160 --> 00:26:10,960 Speaker 1: an advisor. Uh, and he spent some time building the 470 00:26:11,000 --> 00:26:14,359 Speaker 1: Amazon marketplace experience. So we think we've not only got 471 00:26:14,359 --> 00:26:17,800 Speaker 1: a great brand here, but we've all seen a great team. 472 00:26:18,160 --> 00:26:21,480 Speaker 1: Well what's your exit? I mean are you looking for? 473 00:26:22,040 --> 00:26:25,200 Speaker 1: Do you have a five to seven year window for example? Um? 474 00:26:25,400 --> 00:26:26,879 Speaker 1: Do you want to keep a stake in the business? 475 00:26:26,880 --> 00:26:29,679 Speaker 1: You want to see an I p O. You know, 476 00:26:29,880 --> 00:26:33,920 Speaker 1: we're not great market timers, and we take a different approach. 477 00:26:34,080 --> 00:26:36,639 Speaker 1: We are just trying to build a great business and 478 00:26:36,720 --> 00:26:40,320 Speaker 1: focus on high growth and free cash flow generation over time. 479 00:26:40,840 --> 00:26:44,160 Speaker 1: So we don't walk into this with a clear exit strategy. 480 00:26:44,359 --> 00:26:46,760 Speaker 1: We walk into this figuring out how can we help 481 00:26:46,920 --> 00:26:50,080 Speaker 1: continue to grow this business aggressively over time? And if 482 00:26:50,119 --> 00:26:53,480 Speaker 1: you do that, uh, if good things will happen, and 483 00:26:53,760 --> 00:26:59,000 Speaker 1: great businesses are generally bought, not sold, So we're will 484 00:26:59,240 --> 00:27:01,560 Speaker 1: keep making it a great business and everything else will 485 00:27:01,560 --> 00:27:04,640 Speaker 1: take care of itself. Hey, Mark, thank you so much 486 00:27:04,640 --> 00:27:08,680 Speaker 1: for joining us. Uh. Really exciting times for Sacks. It's 487 00:27:08,720 --> 00:27:12,560 Speaker 1: people on that brand. Mark Metric, CEO for Sacks, and 488 00:27:12,640 --> 00:27:15,600 Speaker 1: Adam Burger, managing director at Insight Partners. They're based in 489 00:27:15,680 --> 00:27:19,119 Speaker 1: Los Angeles making this investment in Sacks as Sacks really 490 00:27:19,200 --> 00:27:23,200 Speaker 1: takes a hard pivot to the director consumer e commerce 491 00:27:23,520 --> 00:27:27,000 Speaker 1: business by spending off sacks dot com, so we appreciate 492 00:27:27,040 --> 00:27:31,280 Speaker 1: them taking the time. Thanks for listening to the Bloomberg 493 00:27:31,400 --> 00:27:34,840 Speaker 1: Markets podcast. You can subscribe and listen to interviews at 494 00:27:34,840 --> 00:27:39,639 Speaker 1: Apple Podcasts or whatever podcast platform you prefer. I'm Matt Miller. 495 00:27:39,920 --> 00:27:44,320 Speaker 1: I'm on Twitter at Matt Millert. On Fall Sweeney, I'm 496 00:27:44,359 --> 00:27:47,000 Speaker 1: on Twitter at pt Sweeney. Before the podcast, you can 497 00:27:47,040 --> 00:27:49,240 Speaker 1: always catch us worldwide at Bloomberg Radio.