WEBVTT - How Technology Has Reinvented Business 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.480 --> 0:00:07.320 Bloomberg Quick Takes Tim Stanovik. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.640 plus technology, politics, economics, all purnising the power of Business 0:00:13.680 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.239 Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.160 You can also listen to our radio show at two 0:00:25.200 --> 0:00:27.880 pm Eastern Time on Bloomberg Radio or watch us on 0:00:27.920 --> 0:00:31.280 YouTube search Bloomberg Global News. Well, we caught up with 0:00:31.760 --> 0:00:34.040 our next guest on the first trading day of this year. 0:00:34.080 --> 0:00:36.320 Tim was back in January and we talked about how 0:00:36.360 --> 0:00:38.680 things were going, how the pandemic has changed and shifted 0:00:38.720 --> 0:00:40.919 the world of technology and I t demand. So it's 0:00:41.000 --> 0:00:44.320 great to get his perspective again. Yeah. Rom Nagapon is 0:00:44.400 --> 0:00:47.160 chief information Officer at bn Y Melon's Pershing. He joins 0:00:47.240 --> 0:00:49.360 us on the phone from New Jersey, Ron, how you 0:00:49.360 --> 0:00:52.879 doing doing good, doing good? Happy to be here with 0:00:53.040 --> 0:00:55.760 you during the week of insight to the in line 0:00:55.800 --> 0:00:59.880 Melon Pershing as Yeah, we are excited to have you back. UM, 0:01:00.200 --> 0:01:02.080 take us through how things have shifted over the last 0:01:02.120 --> 0:01:05.200 five months. Is as we have started this move many 0:01:05.240 --> 0:01:09.120 of us and many of your clients back to the office. Yeah, 0:01:09.640 --> 0:01:13.840 meaning we do see everybody moving into the hybrid. From 0:01:13.840 --> 0:01:16.720 a technology point of view, I want to say we 0:01:16.760 --> 0:01:20.600 did have technology that helps us work on remote, but 0:01:20.720 --> 0:01:22.560 I want to say there's going to be a lot 0:01:22.600 --> 0:01:25.200 of innovation and changes that's going to happen in this 0:01:25.280 --> 0:01:28.640 space because whatever the tools we have has helped us, 0:01:28.840 --> 0:01:31.720 but it is not the best. So the remote work 0:01:32.000 --> 0:01:35.240 or working in a different places is going to exist, 0:01:35.480 --> 0:01:38.200 and a newer technology and a new way of how 0:01:38.280 --> 0:01:41.319 we collaborate is going to happen. We see more and 0:01:41.520 --> 0:01:45.760 more digital capability is going to be rolled out, and 0:01:45.800 --> 0:01:48.720 the experience that our clients are going to face while 0:01:48.800 --> 0:01:51.840 they work, whatever they work, however they work, it's going 0:01:51.840 --> 0:01:54.120 to be very different and it's going to be all 0:01:54.200 --> 0:01:56.520 digital and more innovation is going to happen. And that's 0:01:56.520 --> 0:01:59.600 what I see in this UM. You know, I would 0:01:59.640 --> 0:02:03.160 say the hybrid work, uh environment that's going to go 0:02:03.200 --> 0:02:06.240 into So we're all excited to come back to work. Actually, 0:02:06.560 --> 0:02:10.840 and it's slowly progressing. I would say, we take it 0:02:10.960 --> 0:02:13.520 day by day as things are getting back to our 0:02:13.600 --> 0:02:17.600 original and hope you'll expected to come back to the 0:02:17.639 --> 0:02:20.079 original as soon as possible. Well, I can't wait to 0:02:20.120 --> 0:02:25.400 be with you guys, uh within sight in person because 0:02:25.440 --> 0:02:28.680 it's such a great check from I always feel like 0:02:28.760 --> 0:02:31.360 for me and for a Bloomberg audience to get an 0:02:31.440 --> 0:02:34.680 idea of what's on the mind of investment advisors, what 0:02:34.720 --> 0:02:37.320 they're hearing from clients. You know, what are the themes 0:02:37.320 --> 0:02:38.760 and trends that we need to be aware of. And 0:02:38.840 --> 0:02:40.639 you really kind of put it together. In terms of 0:02:40.840 --> 0:02:44.560 the technology world. You say, more digital, more innovation in 0:02:44.639 --> 0:02:50.080 space to come from. So what does that mean more specifically, Yeah, so, 0:02:50.080 --> 0:02:54.160 so more specifically, what I would say is people are 0:02:54.200 --> 0:02:58.600 applying technology to either be efficient or to deliver the 0:02:58.680 --> 0:03:01.400 right experience and the growth. But here is what I 0:03:01.400 --> 0:03:03.840 wanted to say. I mean people are looking at it 0:03:03.919 --> 0:03:07.640 in an incremental fashion. That's good, there's nothing wrong in 0:03:07.800 --> 0:03:11.600 doing applying technology to make it better in an incremental way. 0:03:11.880 --> 0:03:15.560 But what I would you know, advise or make all 0:03:15.600 --> 0:03:19.600 the innovators think is to be completely reinvent what you 0:03:19.680 --> 0:03:23.200 do using this opportunity reinvent Either it could be a 0:03:23.280 --> 0:03:25.480 business model or it could be the way in which 0:03:25.520 --> 0:03:29.320 we deliver products and tools. So meaning even in the inside, 0:03:29.360 --> 0:03:33.200 we're talking about how the advisory is changing from selling 0:03:33.200 --> 0:03:37.400 products and using tools to almost like perfecting your practice 0:03:37.600 --> 0:03:40.520 and focusing on your clients. So it's it's it's all 0:03:40.560 --> 0:03:45.240 about reinventing your business applying the technology. So it's more 0:03:45.320 --> 0:03:50.120 like technology driving and technology is enabling you to do 0:03:50.200 --> 0:03:52.360 these kind of What about when it comes to new 0:03:52.400 --> 0:03:56.080 innovations like cryptocurrency? Carol and I were talking about bitcoin 0:03:56.360 --> 0:04:00.720 and Al Salvador becoming the first country to actually make 0:04:00.840 --> 0:04:04.920 bitcoin legal tender bitcoin right now trading it about thirty 0:04:04.960 --> 0:04:08.360 six thou dollars. How is technology changed that just during 0:04:08.400 --> 0:04:14.440 the pandemic. Yeah, So so talking about crypto, the underlying blockchain, 0:04:15.240 --> 0:04:19.800 it's used for the digital currency as well as other 0:04:20.000 --> 0:04:23.000 so the technology of blockchain is there to exist now 0:04:23.080 --> 0:04:26.640 talking about crypto per se um, it's it's it is 0:04:26.720 --> 0:04:30.200 volatile and there's a lot of regulatory oversight on it. 0:04:30.520 --> 0:04:34.600 So we at the environment and you know, actually announced 0:04:34.800 --> 0:04:38.159 that we are going to be supporting the crypto pretty 0:04:38.240 --> 0:04:41.120 much the entire life cycle for our clients to come 0:04:41.160 --> 0:04:43.960 and consume either from creation of the asset all the 0:04:44.000 --> 0:04:48.120 way to UM custoding and other type of things on 0:04:48.160 --> 0:04:50.839 top of the crypto. So my view on this is 0:04:51.440 --> 0:04:54.400 the technology is pretty solid, not only in the space 0:04:54.440 --> 0:04:58.039 of the cryptocurrency, but also into a smart contract and 0:04:58.160 --> 0:05:03.599 other type of lockchain applications. UM that's here to stay. 0:05:03.839 --> 0:05:07.160 Even the cryptocurrency is here to say, it's just that UM. 0:05:07.200 --> 0:05:10.080 You know, we need to be conscious about where it 0:05:10.080 --> 0:05:13.120 gets applied, how it gets applied, based on the volatility 0:05:13.240 --> 0:05:16.280 and other things people need to select learned. I think 0:05:16.320 --> 0:05:19.000 the first thing is about the advisory community. It's all 0:05:19.040 --> 0:05:21.839 about learning the new as a classes and we will 0:05:21.880 --> 0:05:25.120 provide all the capabilities, but you need to match exactly 0:05:25.120 --> 0:05:27.919 where to use crypto with your clients and all of 0:05:27.920 --> 0:05:30.120 those is going to happen. So it's an evolving space. 0:05:30.400 --> 0:05:32.640 But I wanted to say it's a space, it's an 0:05:32.640 --> 0:05:35.640 asset class that is here to stay. Run. What was 0:05:35.680 --> 0:05:37.560 the moment that that you realize that it was here 0:05:37.600 --> 0:05:39.440 to stay and you needed to make these changes from 0:05:39.440 --> 0:05:43.479 a technological perspective to offer this to clients. My thing 0:05:43.600 --> 0:05:47.000 is when when you see the price fluctuates and institutions 0:05:47.040 --> 0:05:50.000 getting in. See it started in a long time back. 0:05:50.040 --> 0:05:52.600 It actually started as a retail you know, the initial 0:05:52.640 --> 0:05:56.400 coin offering. But then when the institutions get inside, then 0:05:56.480 --> 0:05:59.480 it's further real. It's further real. It's it's for the time. 0:05:59.520 --> 0:06:02.839 It's here to stay because everyone big and well they're 0:06:02.880 --> 0:06:05.839 all looking at the ethic classes. The regulation is looking 0:06:05.880 --> 0:06:08.560 at it. So they're trying to whether regulations are all 0:06:08.600 --> 0:06:10.920 looking at it. This is an asset class that's here 0:06:11.000 --> 0:06:13.320 to stay because they're all going to make it. You know, 0:06:13.400 --> 0:06:16.799 I don't want to say save and sound and correct 0:06:16.920 --> 0:06:19.560 and um for that athet class to say, and then 0:06:19.720 --> 0:06:21.960 it's for real. It's for you to stay, all right? 0:06:22.000 --> 0:06:23.440 Can I leave with there? Rom so good to hear 0:06:23.480 --> 0:06:25.719 your voice. I'll be well and look forward to talking 0:06:25.760 --> 0:06:28.640 with you again. Rom Nagapon his chief information officer at 0:06:28.640 --> 0:06:30.640 B and Y Malon's pershing on the phone from New 0:06:30.720 --> 0:06:32.880 Jersey and interesting to hear him describe it as an 0:06:32.880 --> 0:06:35.479 asset class I know, and especially the way that they're 0:06:35.520 --> 0:06:38.400 involved in the process from blockchain creation, from the creation 0:06:38.440 --> 0:06:40.360 of the asset on the blockchain, or way they're thinking 0:06:40.400 --> 0:06:42.600 about the blockchain. Michael Clans and we're all going to 0:06:42.680 --> 0:06:45.440 have a piece of it in our portfolio at some point, 0:06:45.480 --> 0:06:50.920 I know who knows. You're listening to Bloomberg Business Week 0:06:51.120 --> 0:06:55.120 with Carol Masser and Bloomberg Quick Takes Tim Stinovic on 0:06:55.240 --> 0:06:58.560 Bloomberg Radio. Check it out. Another batch of names have 0:06:58.560 --> 0:07:00.960 been added to the meme stock frenzies. Retail traders latched 0:07:00.960 --> 0:07:03.200 down to their latest favorites today. So yes, we've had 0:07:03.240 --> 0:07:07.039 game Stop AMC hurts so last year, and yesterday we 0:07:07.040 --> 0:07:09.480 talked about Clever Health and Wednesdays. Today, Tim, we got 0:07:09.480 --> 0:07:12.040 some new names we do. Katie Gratfeld from Bloomberg News 0:07:12.120 --> 0:07:13.720 is here to tell us all about it. She's cross 0:07:13.760 --> 0:07:16.920 Asset reporter and joins us in the Bloomberg Interactive Broker Studio. 0:07:16.960 --> 0:07:19.680 She's also my anchor for Bloomberg Quick Take Stock. It 0:07:19.720 --> 0:07:22.840 happens each end every day at noon. You guys talk 0:07:22.920 --> 0:07:28.720 about meme stocks today, today, yesterday, probably tomorrow. It's what 0:07:28.840 --> 0:07:31.640 there is, It's what is happening. And the big, the big, 0:07:31.760 --> 0:07:34.280 big question I have, Katie, is is what makes a 0:07:34.320 --> 0:07:37.640 stock a meme stock? That is what I'm trying to 0:07:37.680 --> 0:07:39.160 figure out, because I mean, if you look at the 0:07:39.200 --> 0:07:42.520 names that are moving today. You have GEO for example, 0:07:42.840 --> 0:07:47.240 that's a prison operator. You have Clean Energy Fuels that 0:07:47.440 --> 0:07:51.640 operates natural gas filling stations. It feels a little bit random. 0:07:51.680 --> 0:07:53.560 I mean, at least GEO. If you look at the 0:07:53.600 --> 0:07:57.200 short interests a G EO not GEO, No, it's GEO, 0:07:57.600 --> 0:08:01.280 and short interest is pretty high. It's a thirty five 0:08:01.360 --> 0:08:04.160 per cent, So that's the potential short squeeze target. But 0:08:04.240 --> 0:08:07.200 it's not as clear. On Clean Energy Fuels. It just 0:08:07.280 --> 0:08:09.760 feels very much as high. I saw it on that 0:08:10.640 --> 0:08:14.000 and Wendy's yesterday wasn't that high, No, Wendy's. So Wendy's 0:08:14.040 --> 0:08:16.720 fits is interesting because it fits into this broader trend 0:08:16.760 --> 0:08:22.240 of very nostalgic names like very early two thousand's names 0:08:22.280 --> 0:08:26.119 like game Stop, AMC. BlackBerry expressed. Those are all names 0:08:26.160 --> 0:08:28.200 that I don't know, at least to me, they evoke 0:08:28.240 --> 0:08:31.600 a specific place and time and that you have seen 0:08:31.640 --> 0:08:34.000 a little bit of that. But in these names that 0:08:34.040 --> 0:08:37.040 we're moving today, I don't think anyone has any warm, 0:08:37.120 --> 0:08:41.000 fuzzy feelings attached to GEO. For example, that prison operator. 0:08:41.440 --> 0:08:44.079 I think that's fair to say, yeah, well, but but 0:08:44.120 --> 0:08:46.520 you know, we we were talking earlier before we get 0:08:46.520 --> 0:08:48.880 started a conversation we were having with Jail Webber, editor 0:08:48.880 --> 0:08:50.800 of Bloomber business Week magazine, because we have to think 0:08:50.800 --> 0:08:53.400 about how do we cover this because often there's a 0:08:53.400 --> 0:08:56.040 fair amount of volume in these names, right, and so 0:08:56.200 --> 0:08:58.240 when you look at the markets overall, but I do 0:08:58.320 --> 0:09:00.240 feel like when you look at market caps and things, 0:09:00.240 --> 0:09:03.480 there's such a small sliver of our financial and market 0:09:03.559 --> 0:09:06.840 universe exactly. It almost feels like Russian roulette, where suddenly 0:09:07.120 --> 0:09:09.040 one day you're gonna wake up and there's just gonna 0:09:09.040 --> 0:09:12.880 be crazy volumes in names that really haven't seen anything 0:09:12.920 --> 0:09:15.040 like it. And it's interesting to me. I mean, it's 0:09:15.080 --> 0:09:17.840 interesting to try to track this ball of money around 0:09:17.880 --> 0:09:21.439 the markets. But it's also interesting to see professional investors 0:09:21.679 --> 0:09:23.760 trying to adapt to it, because I mean, what do 0:09:23.800 --> 0:09:26.120 you do? And there's actually a great article on the 0:09:26.200 --> 0:09:28.840 terminal right now from my colleague Lou Wang, who woke 0:09:28.920 --> 0:09:31.880 to who spoke to Chris Harvey from Walls Fargo, who 0:09:32.040 --> 0:09:35.319 who said that his hedge fund clients they don't want 0:09:35.360 --> 0:09:38.559 to short any specific names. They're afraid of getting squeezed, 0:09:38.600 --> 0:09:41.319 so they're moving into shorting e t f s and 0:09:41.480 --> 0:09:43.680 really large companies because you don't want to end up 0:09:43.720 --> 0:09:45.600 in this situation if you have a lot of money 0:09:45.600 --> 0:09:47.240 on the line. Well, I wonder about the chatter that's 0:09:47.240 --> 0:09:49.120 happening in places like Wall Street Bets right now, and 0:09:49.160 --> 0:09:50.840 it's a place that you spend a lot of time 0:09:50.880 --> 0:09:54.520 and look it's for work, saying I do, because that's 0:09:54.520 --> 0:09:57.040 where you're lurking on most days, and I do. I 0:09:57.080 --> 0:09:59.200 do wonder what they're saying about these companies today. And 0:09:59.200 --> 0:10:01.520 also if it's possible for some hedge fund to come 0:10:01.559 --> 0:10:05.520 in and you know, front run essentially the conversation in 0:10:05.559 --> 0:10:07.360 there and say, wait a second, we're going to get 0:10:07.360 --> 0:10:10.160 in early on this because we know that when people 0:10:10.160 --> 0:10:13.800 talk about this in this forum, there's increased activity. I mean, 0:10:13.880 --> 0:10:18.040 you have heard a few investors or hedge funds come 0:10:18.080 --> 0:10:21.920 out and say that you know, we are basically doing that. 0:10:22.000 --> 0:10:24.959 And if you do scroll through these pages, I mean 0:10:25.120 --> 0:10:26.800 you can kind of get a sense of people are 0:10:26.800 --> 0:10:30.199 trying to like put together blueprints, trying to identify short 0:10:30.400 --> 0:10:34.160 potential short squeeze targets. So there is a sense that, 0:10:34.320 --> 0:10:36.920 I mean, this can't all be retail. At a certain point, 0:10:36.960 --> 0:10:40.559 you probably see some more institutional some professional names come 0:10:40.559 --> 0:10:43.080 in and try to capitalize on that. What's interesting is 0:10:43.080 --> 0:10:46.280 Clean Energy Fuels UM is up six out of the 0:10:46.280 --> 0:10:48.920 past seven trading sessions for a gain of nearly forty percent. 0:10:48.960 --> 0:10:52.880 It's up like forties six or five. I mean these 0:10:52.920 --> 0:10:55.319 are names. If you look at GEO Group, it's up 0:10:55.360 --> 0:10:56.959 eight of the past nine trading days for a gain 0:10:57.000 --> 0:10:59.920 of eighty two percent. So I mean it's it's half 0:11:00.000 --> 0:11:01.560 being over a week's period of time. And I do 0:11:01.600 --> 0:11:04.720 wonder when does it hit your radar or our radar 0:11:04.800 --> 0:11:06.720 that we put it in a story on the Bloomberg. 0:11:06.960 --> 0:11:08.600 I think that's a great point, and that was something 0:11:08.640 --> 0:11:11.280 I was thinking about with clover Health earlier. Today. It's 0:11:11.280 --> 0:11:14.960 not doing so well today, but had an amazing day yesterday, 0:11:15.080 --> 0:11:19.439 and you saw options volume just spike yesterday. But if 0:11:19.480 --> 0:11:23.120 you look into April for example, or even last week, 0:11:23.160 --> 0:11:26.480 a few weeks leading up to yesterday, it was something 0:11:26.559 --> 0:11:31.000 you saw building. So it feels like it doesn't It's 0:11:31.480 --> 0:11:33.920 not like turning on a light switch. It's is something 0:11:33.960 --> 0:11:37.160 that builds, and but it just feels like it explodes 0:11:37.200 --> 0:11:39.600 onto the radar on one specific day. And when you 0:11:39.640 --> 0:11:42.520 get double digit moves right, and I do wonder like, 0:11:42.640 --> 0:11:45.400 is there some formula or algorithm that people are trying 0:11:45.440 --> 0:11:47.600 to figure out that how do you track? Do you 0:11:47.679 --> 0:11:50.679 all of these meme stocks go up for about eight days? 0:11:50.800 --> 0:11:52.360 You know what I mean? Like I do wonder like 0:11:52.480 --> 0:11:55.680 what is how do we kind of find what the 0:11:55.720 --> 0:11:57.840 next one is? Because I knew Bloomberg Intelligence has been 0:11:57.840 --> 0:12:02.480 looking at this stuff. Yeah, and that's something that I mean, 0:12:02.520 --> 0:12:04.840 my colleagues and I are trying to determine is there 0:12:04.960 --> 0:12:07.280 some pattern here? But then you have companies like a 0:12:07.559 --> 0:12:10.200 m C and Game Stop that just are constantly in 0:12:10.200 --> 0:12:14.120 the conversation that started the conversation, still in it. Well, 0:12:14.160 --> 0:12:17.360 you've got lots of work to do. From Bloomberg News 0:12:17.360 --> 0:12:20.120 Cross as a reporter, also Bloomberg Quick Take co anchor. 0:12:20.559 --> 0:12:24.160 You're listening to Bloomberg Business Week with Carol Messer and 0:12:24.240 --> 0:12:28.720 Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio. All right, 0:12:28.800 --> 0:12:30.880 I can't sing this, but you know, Marguerite de Ville, 0:12:30.960 --> 0:12:35.760 it's definitely a hit song. I could. It's a chill 0:12:35.800 --> 0:12:38.959 state of mind. It's a multibillion dollar marketing empire, and Tim, 0:12:39.040 --> 0:12:41.240 it is a news attraction in Times Square. It is 0:12:41.240 --> 0:12:43.760 it's also the cover story for the new issue of 0:12:43.760 --> 0:12:46.560 Bloomberg business Week magazine. It's available on news stands and 0:12:46.640 --> 0:12:49.320 at bloomberg dot com slash business Week. Joining us now 0:12:49.360 --> 0:12:51.720 is Joel Webber, editor of Bloomberg business Week. He joins 0:12:51.800 --> 0:12:54.040 us right here in the Bloomberg Interactive Broker studio, and 0:12:54.120 --> 0:12:56.960 Austin Carr, technology reporter for Bloomberg News, joining us on 0:12:56.960 --> 0:12:59.840 the phone from l A Joel, I learned so much. 0:13:00.080 --> 0:13:01.920 I learned all I always learned when I read stories 0:13:01.960 --> 0:13:05.840 and delivered business. I had no idea that Marguerita Ville's 0:13:05.840 --> 0:13:09.600 empire was this big. That's the best thing about this 0:13:09.679 --> 0:13:12.480 story is that little I mean, you know Jimmy Buffett 0:13:12.520 --> 0:13:14.960 from music, I mean it's near and dear to me, 0:13:15.640 --> 0:13:19.679 um being the parenthead that I am. Uh. And the 0:13:19.720 --> 0:13:22.640 fact that he was able to turn one song into 0:13:22.679 --> 0:13:26.600 basically something that's even bigger than his music success. Um. 0:13:26.720 --> 0:13:29.480 This the scale of this empire is amazing and and 0:13:29.760 --> 0:13:32.160 it is a I'll call it a modest news hook. 0:13:32.280 --> 0:13:36.560 But they are in the process of opening Margaritaville in 0:13:36.800 --> 0:13:39.920 Times Square, right off Times Square on four Year Street, 0:13:40.679 --> 0:13:43.800 and it is the it feels just like the perfect 0:13:43.840 --> 0:13:47.240 time to take over Manhattan with Margaritaville right as the 0:13:47.240 --> 0:13:50.880 city reopens and uh, you know we're all vaccinated and 0:13:50.920 --> 0:13:53.360 get to go celebrate with you know, um, way too 0:13:53.360 --> 0:13:57.319 many margaritis, I'm sure. Um. So, so Austin rewind the 0:13:57.320 --> 0:13:59.840 clock a little bit. Tell us about how you got 0:13:59.840 --> 0:14:04.319 this story. So um. I actually started reporting this story 0:14:04.400 --> 0:14:08.360 because I had come across their frozen concoction maker, UM, 0:14:08.400 --> 0:14:11.000 which I would highly recommend. I think we described it 0:14:11.040 --> 0:14:15.280 in the story as the uh iPhone of adult beverage makers, 0:14:15.360 --> 0:14:17.560 and it very much is that. I mean, it's it's 0:14:17.600 --> 0:14:20.440 really a beautiful piece of machinery. And I just realized, 0:14:20.440 --> 0:14:23.520 oh my god, like if this company, Margaritaville, which I 0:14:23.560 --> 0:14:27.080 also had not associations to the song or to you know, 0:14:27.080 --> 0:14:30.520 a tequila hangover, but not to this sort of hardware 0:14:30.560 --> 0:14:34.120 maker or hotel empire um. And so I just started 0:14:34.120 --> 0:14:37.920 getting interested in diving deeper into the research, and that's 0:14:37.920 --> 0:14:40.200 where this story started, and we realized there was so 0:14:40.280 --> 0:14:43.600 much more when we started talking with Margaritaville, their executives 0:14:43.600 --> 0:14:46.600 in Florida and just realizing they were not only opening 0:14:46.600 --> 0:14:49.520 this three and seventy million dollar property in Times Square, 0:14:49.720 --> 0:14:52.200 but right now we're in the process of developing twenty 0:14:52.200 --> 0:14:55.560 five or twenty six or more properties around the globe, 0:14:55.560 --> 0:14:58.920 from retirement villages to boutique hotels, to resorts, to r 0:14:58.960 --> 0:15:02.120 V parks, parks, you name it. Uh. They're sort of 0:15:02.120 --> 0:15:05.000 really involved in so many different entities that that just 0:15:05.040 --> 0:15:08.680 sort of boggles the mind. How did it all get started? 0:15:08.880 --> 0:15:12.560 Often so we actually rewinds. Uh it goes back to 0:15:12.640 --> 0:15:16.800 the late nineties nineties. Uh. Margaritaville's CEO is a guy 0:15:16.880 --> 0:15:19.920 named John Colin. Uh, and he was moving down to 0:15:20.320 --> 0:15:25.280 Palm Beach uh and and met Jimmy Buffett through mutual friends. 0:15:25.360 --> 0:15:28.600 And he has been in private equity before, just working 0:15:28.680 --> 0:15:31.880 at a company that owned Long John Silver's and and 0:15:31.960 --> 0:15:35.280 later bought Snapple and was involved in consumer branding. And 0:15:35.320 --> 0:15:37.560 when at a Jimmy Buffett, he just realized this is 0:15:37.600 --> 0:15:40.560 the biggest brand there is. These parrot heads sort of uh, 0:15:40.600 --> 0:15:43.360 you know, just really enjoying themselves at this concert, moving 0:15:43.360 --> 0:15:45.960 in universities and could sort of sort of you know, 0:15:46.000 --> 0:15:48.600 win over more consumers than uh, you know, Long John 0:15:48.640 --> 0:15:52.440 Silver's ever could. And they started exploring John Colin and 0:15:52.520 --> 0:15:54.440 Jimmy whether or not they could build this into a 0:15:54.520 --> 0:15:57.280 larger empire. And the first thing that they opened was 0:15:57.360 --> 0:16:02.280 a big, massive restaurant in Orlando, UH near Universal Studios 0:16:02.320 --> 0:16:04.680 theme Park, which was sort of an ode to Jimmy 0:16:04.720 --> 0:16:08.720 Buffett and what he stood for in terms of Margaritaville's music, um, 0:16:08.760 --> 0:16:11.440 you know, sort of the general salt shaker vibe that 0:16:11.480 --> 0:16:13.760 he has. And they've built it from there throughout the 0:16:13.800 --> 0:16:17.440 two thousands, turning it into more restaurants, a beer brand 0:16:17.480 --> 0:16:20.640 with Anneiser Busch Um, and a lot of consumer goods, 0:16:20.640 --> 0:16:23.480 including that Daquary maker I mentioned, which which retails for 0:16:23.600 --> 0:16:26.840 up to five dollars. You sounded like that one. I 0:16:26.920 --> 0:16:29.360 have to ask Houston five hundred dollars on a deactory maker. 0:16:29.920 --> 0:16:32.720 You saw the Bolli version which only retails for three. 0:16:34.000 --> 0:16:36.240 I'm you know, don't checking. Don't worry, Jill. You we 0:16:36.240 --> 0:16:41.000 will prove that at the end of I think. Okay. 0:16:41.080 --> 0:16:43.120 But the interesting thing is, and we Tim and I 0:16:43.200 --> 0:16:46.040 were talking about this off air, it seems the model 0:16:46.360 --> 0:16:50.240 is very similar to President Trump's model of they don't 0:16:50.280 --> 0:16:52.120 own a lot, right, they don't own a ton of 0:16:52.200 --> 0:16:54.080 real estate behind all of this, they own a lot 0:16:54.080 --> 0:16:57.840 of I p intellectual property that's spread. It's what it's 0:16:57.880 --> 0:17:00.720 called an asset light model. UM. You know, that's Hilton has. 0:17:00.840 --> 0:17:03.200 I mean, that's frankly what European b has or uper 0:17:03.280 --> 0:17:06.080 has to UM. I think it's the one thing that 0:17:06.080 --> 0:17:09.400 they were extremely successful was in a way that perhaps uh, 0:17:09.520 --> 0:17:12.520 former President Trump was not, was just in terms of 0:17:12.600 --> 0:17:15.119 overseeing the quality of products they licensed their name to, 0:17:15.880 --> 0:17:19.679 enforcing strict quality standards, so they're they're very involved in 0:17:19.720 --> 0:17:22.800 the design process, the development resorts, and the branding that 0:17:22.840 --> 0:17:24.960 goes into these things, just to make sure they live 0:17:25.000 --> 0:17:26.679 up to their standards. So there's not sort of the 0:17:26.720 --> 0:17:30.400 equivalent of you know, there actually is a Margaritaville University. 0:17:30.560 --> 0:17:31.800 I was just going to ask if there was a 0:17:31.880 --> 0:17:35.280 Mary Niversity. It's a funny name they used for a 0:17:35.400 --> 0:17:38.280 college ambassador program just to sort of get younger fans 0:17:38.320 --> 0:17:41.399 on board, so they're not actually uh teaching kids. But 0:17:41.640 --> 0:17:43.920 it was I believe a lot more successful than Trump 0:17:44.040 --> 0:17:47.840 University was. But the in terms of just some of 0:17:47.840 --> 0:17:51.800 the other ecosystem products they have, Yeah, it's definitely that model. 0:17:51.800 --> 0:17:53.920 If they like to sort of make sure you're you're 0:17:53.960 --> 0:17:57.440 drinking Jimmy's beer at the same time you're buying Jimmy's tequila, 0:17:57.760 --> 0:18:00.800 staying at their branded restaurants and hopefully later on their hotels, 0:18:00.880 --> 0:18:03.560 their vacation cottages and so forth. So it's sort of 0:18:03.560 --> 0:18:05.720 products that feed into each other and this this this 0:18:05.920 --> 0:18:08.800 virtuous brand loop. So Austin, how do they get the 0:18:08.840 --> 0:18:12.480 next generation of parrot heads? You mentioned the Margarita Ville 0:18:12.520 --> 0:18:14.720 University of the Ambassador program, but but how do they 0:18:14.800 --> 0:18:18.199 make sure that this transcends age? Yeah? I think what 0:18:18.240 --> 0:18:20.560 they're trying to do is make sure that this is 0:18:20.600 --> 0:18:24.360 identified with more of a lifestyle rather than an individual. 0:18:24.640 --> 0:18:26.800 In other words, I think a lot of bands, no 0:18:26.800 --> 0:18:29.679 matter how old how young, will know that song and 0:18:29.720 --> 0:18:32.760 sort of can generally define what it stands for and 0:18:32.840 --> 0:18:35.480 sort of in terms of this beachy cash at a 0:18:35.560 --> 0:18:38.919 sort of sort of vacation island vibe, and that's what 0:18:39.000 --> 0:18:41.480 they're building up more of. Um. I talked to Warren 0:18:41.520 --> 0:18:44.160 Buffett for the story UM, and and that was one 0:18:44.160 --> 0:18:46.800 thing he stood for He sort of mentioned was that 0:18:46.880 --> 0:18:49.320 this idea that it's sort of, um, you know, Jimmy 0:18:49.520 --> 0:18:51.800 is is not just Jimmy. He's sort of an institution 0:18:51.840 --> 0:18:55.720 that stands for this overall lifestyle that you know, Lord 0:18:55.760 --> 0:18:57.959 knows Hyatt would like to have, Lord knows you know 0:18:58.080 --> 0:19:00.640 Airbnb would want to you know have in the sense 0:19:00.680 --> 0:19:03.359 that this stands for something more universal, and I think 0:19:03.400 --> 0:19:05.479 that's how they're going to go after younger fans. They 0:19:05.520 --> 0:19:07.760 also have, you know, land Shark beer, which you might 0:19:07.800 --> 0:19:11.320 have heard of, which is a competitor to Corona Um, 0:19:11.400 --> 0:19:13.200 and they have a lot of consumer goods that are 0:19:13.240 --> 0:19:16.760 targeting younger generations of fans that you know, are just 0:19:16.840 --> 0:19:19.679 different from your average parrot head. I would say, I 0:19:19.760 --> 0:19:22.880 think the article cover story, uh, it makes you look 0:19:22.920 --> 0:19:24.760 at your life and look at your choices, and like, 0:19:24.960 --> 0:19:27.000 you know, it makes me want to build a business 0:19:27.040 --> 0:19:29.600 empired inspired off of a song, and also makes me 0:19:29.600 --> 0:19:32.000 wish I were Austin Car and like have three dollar 0:19:32.040 --> 0:19:35.800 decrees that inspire these stories. So thank you, Austin. We're 0:19:35.800 --> 0:19:38.680 on our way. We'll go ahead. I was just gonna say, 0:19:38.680 --> 0:19:42.679 just to be clear, Joel, I did not expend then, 0:19:42.840 --> 0:19:44.680 needless to say, we're getting on a plane, We're coming over, 0:19:44.720 --> 0:19:46.879 and you've got to make some tagories or margarite is 0:19:46.920 --> 0:19:49.800 for us, um great stuff. Austin Car. It's the domestic 0:19:49.800 --> 0:19:52.200 cover story of Business Week. Magazine Tech Report, Bloomberg News, 0:19:52.280 --> 0:19:54.880 joining us from l A. Weber, editor Bloomberg Business Week. 0:19:54.920 --> 0:19:57.160 I gotta say I love that they the two buffets. 0:19:57.160 --> 0:20:01.879 No no relation though relation relation. Yeah, it's Jimmy is 0:20:01.880 --> 0:20:04.520 definitely the other buffet in our world, you know. But 0:20:05.080 --> 0:20:08.879 clearly that world's bigger than world, depending on your level 0:20:08.880 --> 0:20:16.320 of being a parenthead. Right, yes, exactly. You're listening to 0:20:16.440 --> 0:20:20.320 Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes 0:20:20.440 --> 0:20:25.600 Tim Stinovic on Bloomberg Radio. So in about ninety minutes 0:20:25.680 --> 0:20:27.880 or so, we're gonna get earnings from the meme stock 0:20:27.920 --> 0:20:29.640 that started all I guess you could say we're talking 0:20:29.680 --> 0:20:32.920 about game stop. Yes, but do earnings even matter? I 0:20:32.920 --> 0:20:36.040 don't think they do. They've had a twenty one billion 0:20:36.080 --> 0:20:39.360 dollars in market value this year. It's one billion. It's 0:20:39.400 --> 0:20:42.080 the original, it's the it's the original meme stock, Carol, 0:20:42.240 --> 0:20:44.960 Yeah exactly. So all right, let's get some perspective, and 0:20:45.040 --> 0:20:47.960