WEBVTT - Single Best Idea with Tom Keene: Peter Trubowitz & David Bahnsen

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>A Monday of single best idea after the cacophony coming

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<v Speaker 2>off of Friday, Saturday and Sunday. Very difficult to pick

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<v Speaker 2>two ideas today out of great conversations. The teamworked all

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<v Speaker 2>weekend a sort of piece together not where are we now?

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<v Speaker 2>But into the Joint Session of Congress on Tuesday. Kaylie

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<v Speaker 2>Lines and Joe Matthew has that for you, just sort

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<v Speaker 2>of where are we now? Linking together economics, finance, investment

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<v Speaker 2>and international relations. On international relations, my first request yesterday

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<v Speaker 2>Sunday was Peter Trubowitz in Austin. Years ago they developed

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<v Speaker 2>the Lyndon Baines Johnson School of Government, which you know,

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<v Speaker 2>you do, it's no big deal, but then boom, it

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<v Speaker 2>came out in a big way. Is a huge academic success.

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<v Speaker 2>And part of that LBJ school success was Peter Trueboitz.

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<v Speaker 2>He now holds court at the London School of Economics.

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<v Speaker 2>On our Secretary of State, the gentleman from Florida, Peter Truwitz.

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<v Speaker 1>So my view, and I've said this and I'm on

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<v Speaker 1>the record, I believe he won't last very long. And

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<v Speaker 1>that's because it's pretty clear anybody that was watching on

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<v Speaker 1>Friday or watched the Saturday Night Lives boof of It

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<v Speaker 1>realizes that Marco Rubio is very uncomfortable is basically pivoting

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<v Speaker 1>one hundred and eighty degrees from things that he said

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<v Speaker 1>about the war Putin's War in Ukraine two years ago,

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<v Speaker 1>you know. And so the question is can he carry

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<v Speaker 1>the brief and you know, you know or not? To me,

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<v Speaker 1>he seems like he's not a particularly relevant player in

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<v Speaker 1>the administration.

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<v Speaker 2>Peter Troubert's riveting there on all that's going on in

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<v Speaker 2>our political malstream, both in his London and in Washington

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<v Speaker 2>and New York. Try to get the full interview there

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<v Speaker 2>with Peter TROUBERTZ. It was very, very valuable. David Bonnson

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<v Speaker 2>was with us from the bonson Gropies out on the

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<v Speaker 2>left coast. It's usually, you know, wealth management and you know,

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<v Speaker 2>what are you doing, what are you doing with cash

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<v Speaker 2>and all that. But somewhere in the middle of the

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<v Speaker 2>conversation today he gave a clinic on the raging debate

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<v Speaker 2>that Paul Sweeney loves and that is okay, there's a

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<v Speaker 2>share buyback, just give me a dividend.

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<v Speaker 3>First of all, share buybacks don't actually happen most to share.

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<v Speaker 3>About seventy five percent of share buybacks and the S

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<v Speaker 3>and P five hundred replacing shares that were given out

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<v Speaker 3>in compensation, so they're not a return of payment. But

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<v Speaker 3>you can't eat a share buy back, and aut of

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<v Speaker 3>investors out there need to buy groceries and do real

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<v Speaker 3>things with cash, and the risk every dividend you receive

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<v Speaker 3>is de risking the investment. It's real monetization, and to

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<v Speaker 3>share buyback is compounding your risk. Now, when the stock

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<v Speaker 3>keeps going up, that can be a very good thing,

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<v Speaker 3>but it isn't the same form of capital return. But

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<v Speaker 3>in Cook's case, the issue has the incentive to do

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<v Speaker 3>dumb things of money. Now, for Apple it doesn't matter

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<v Speaker 3>with that kind of free cash flow, But what do

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<v Speaker 3>they spend on the electric vehicle experiment? Eight billion dollars

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<v Speaker 3>they set on fire. If you're returning dividends to shareholders,

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<v Speaker 3>you don't go spend eight billion dollars on a little

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<v Speaker 3>side project.

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<v Speaker 2>There have been any number of discussions in this over

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<v Speaker 2>the years. That was the single clearest discussion I've ever heard.

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<v Speaker 2>David Bunsen just absolutely spectacular there. Whatever your opinion here

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<v Speaker 2>We got some great feedback from people. One former media

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<v Speaker 2>executive emailed it and said, look, buybacks, you know are great.

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<v Speaker 2>There's no tax treatment versus dividends which you're taxable, and

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<v Speaker 2>on and on the debate goes. We'll continue to bring

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<v Speaker 2>that to you as we look at investment and your

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<v Speaker 2>commute across America. We just got in the February numbers.

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<v Speaker 2>We're humbled. Thank you so much. And then many different

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<v Speaker 2>ways to listen to us on radio, to use a

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<v Speaker 2>phrase from another time and place. On YouTube, you subscribe

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<v Speaker 2>to Bloomberg Podcast Special thank you to David Weston for

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<v Speaker 2>his incredible interview with the Secretary of Treasury late Friday.

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<v Speaker 2>To say it went viral is an understatement. I'm Bloomberg

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<v Speaker 2>Podcasting again. Subscribe to YouTube and on YouTube podcasts. This

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<v Speaker 2>is single best I am