WEBVTT - Stanford Tops U.S. B-Schools Ranking 0:00:00.560 --> 0:00:03.040 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:03.120 --> 0:00:05.600 Jason Kelly. We're here every day bringing you the latest 0:00:05.640 --> 0:00:09.880 news from the world's of business and finance, plus technology, politics, economics, 0:00:09.960 --> 0:00:13.520 all harnessing the power of Bloomberg Business Week reporters and editors, 0:00:13.600 --> 0:00:16.840 not to mention our journalists and analysts more than a 0:00:16.920 --> 0:00:19.640 hundred and twenty countries. You can download Bloomberg Business Week 0:00:19.640 --> 0:00:22.560 on iTunes, SoundCloud, or Bloomberg dot Com. You can also 0:00:22.600 --> 0:00:25.000 listen to our radio show weekdays at two pm Eastern 0:00:25.120 --> 0:00:27.200 only on Bloomberg Radio. We're here at the number one 0:00:27.200 --> 0:00:29.800 business school we are, indeed, we're at the stand Stanford 0:00:29.800 --> 0:00:32.040 Graduate School of Business, and we kicked off our reveal 0:00:32.159 --> 0:00:34.320 of the top graduate school of business this morning catching 0:00:34.400 --> 0:00:36.840 up with the perfect person we're talking about, the Dean 0:00:36.960 --> 0:00:39.360 of the school, John Levin, who talked with us about 0:00:39.400 --> 0:00:41.640 being name number one and really on how the NBA 0:00:41.720 --> 0:00:45.239 program continues to evolve. It's really just a testament of 0:00:45.280 --> 0:00:48.680 the fantastic students and faculty and staff and alumni we 0:00:48.720 --> 0:00:50.960 have at the school. And I couldn't be happier to 0:00:51.040 --> 0:00:53.840 be Bloomberg's top business school this year. All right, So 0:00:54.080 --> 0:00:57.120 it's pretty quiet here. It's a beautiful day. The students 0:00:57.120 --> 0:01:00.400 will be milling around very shortly. What's on their minds 0:01:00.480 --> 0:01:03.120 right now? It is a topsy turvy corporate world. And 0:01:03.160 --> 0:01:06.280 as they prepare to get into the next phase of 0:01:06.319 --> 0:01:09.560 their career, what are they most worried about? Well, the students, 0:01:09.800 --> 0:01:11.600 you know, they're arriving these days at a time of 0:01:11.880 --> 0:01:17.480 great change in business and technology and society, globalization, and 0:01:17.520 --> 0:01:19.319 those things are all in their mind. They're thinking about 0:01:20.280 --> 0:01:21.760 right now, they're thinking about what am I going to do? 0:01:21.800 --> 0:01:23.720 My A A M class, right, But then they're going 0:01:23.800 --> 0:01:25.479 to be thinking about what jobs am I going to get? 0:01:25.480 --> 0:01:27.640 Has my career going to evolve? Am I prepared for 0:01:27.680 --> 0:01:30.160 a changing world? And that's what That's what they're here for. 0:01:30.240 --> 0:01:32.520 They're here to get exposed to all kinds of different 0:01:32.520 --> 0:01:35.960 opportunities and ideas and people and develop the skills that 0:01:36.000 --> 0:01:38.479 are going to carry them forward for their careers. John, 0:01:38.520 --> 0:01:40.520 you know what's interesting too, And I think about on 0:01:40.560 --> 0:01:44.560 a day where we had the McDonald's CEO being forced 0:01:44.560 --> 0:01:47.720 to resign because of a relationship with someone who worked 0:01:47.720 --> 0:01:50.920 for him under armour, there's financial you know, looking into 0:01:51.120 --> 0:01:53.400 kind of the financials at that company. I do feel 0:01:53.440 --> 0:01:57.360 like corporate responsibility and governance is really front and center. 0:01:57.440 --> 0:01:59.640 How do you work all of that in to what 0:01:59.680 --> 0:02:02.760 you do at Stanford? Yeah, we start with that on 0:02:02.840 --> 0:02:05.320 day one. We asked the students what kind of leader 0:02:05.320 --> 0:02:07.360 do you want to be? What kind of organizations do 0:02:07.400 --> 0:02:11.079 you want to help build? And that's just carries through 0:02:11.120 --> 0:02:14.400 the curriculum and the experience here, and it's never been 0:02:14.400 --> 0:02:17.760 more important to be, you know, become leaders grounded in 0:02:18.120 --> 0:02:21.639 ethics and in thinking about purpose and what your source 0:02:21.680 --> 0:02:24.519 of real responsibility is. And that's a big part of 0:02:24.560 --> 0:02:27.400 the discussion throughout the time that students spent here at Stanford. 0:02:27.760 --> 0:02:30.400 I have to think to given where we are in 0:02:30.560 --> 0:02:33.720 Silicon Valley this time, where there's a lot of talk 0:02:33.800 --> 0:02:38.000 in Washington about Silicon Valley its role in society, how 0:02:38.040 --> 0:02:41.919 do you square all of that being really the face 0:02:42.240 --> 0:02:45.880 of Silicon valleum. Anyways, it's a great question. When I 0:02:45.919 --> 0:02:49.720 came to Stanford as twenty years ago and Washington just 0:02:49.800 --> 0:02:53.640 steamed could not have been farther away from Silicon Valley, 0:02:53.680 --> 0:02:57.720 it was irrelevant. People were that here building things, making companies, 0:02:57.840 --> 0:03:00.280 trying to make the world a better place, and it 0:03:00.320 --> 0:03:02.560 doesn't feel that way right now. It feels like Washington 0:03:02.720 --> 0:03:05.680 and Silicon Valley have come much closer together. There's more 0:03:06.680 --> 0:03:09.240 you talk about regulation, there's going to be more regulation. 0:03:09.400 --> 0:03:13.600 The impact of Silicon Valley on government and on democracy 0:03:14.000 --> 0:03:16.960 has is enormous and we're right in the middle of that. 0:03:17.200 --> 0:03:20.239 And I think that's a really important responsibility for Stamford 0:03:20.360 --> 0:03:22.520 to to be in the middle of that discussion, to 0:03:22.520 --> 0:03:25.600 try to facilitate connections between Washington and tech firms. And 0:03:25.639 --> 0:03:27.600 we're trying to do that. It's rapidly moving now, and 0:03:27.639 --> 0:03:29.640 I do think about you know, we've heard from various 0:03:29.639 --> 0:03:32.720 Stanford grads or alums. You know what happens is it's 0:03:32.800 --> 0:03:35.760 not uncommon for a lot of executives to just kind 0:03:35.760 --> 0:03:39.120 of drop in and have conversations with students here tell 0:03:39.160 --> 0:03:40.960 us about how important that is as part of kind 0:03:40.960 --> 0:03:43.520 of what they learned the experience. I think it's a 0:03:43.600 --> 0:03:46.040 huge part of what students experience here. It's part of 0:03:46.080 --> 0:03:49.120 what just opens their aperture to what are the opportunities 0:03:49.120 --> 0:03:51.200 for them in the world. Is getting exposure first of all, 0:03:51.240 --> 0:03:53.400 to having a really world class faculty that they can 0:03:53.520 --> 0:03:55.480 learn from, but then to have a mix of people 0:03:55.560 --> 0:03:58.160 just coming in through campus, talking in classes, talking to 0:03:58.240 --> 0:04:01.840 the students, meeting with them, and that's that that's really 0:04:01.840 --> 0:04:04.120 what opens their eyes to the things that they might 0:04:04.240 --> 0:04:05.920 go on to do in their lives. One of the 0:04:05.960 --> 0:04:08.760 interesting things about a business education is, for a long time, 0:04:09.000 --> 0:04:12.120 it was a fairly straightforward proposition. It was an investment. 0:04:12.200 --> 0:04:14.960 You paid X tens of thousands of dollars, You came 0:04:15.000 --> 0:04:17.200 out on the other end, you got paid very well, 0:04:17.680 --> 0:04:20.960 uh paid better than maybe you were going in. It 0:04:21.040 --> 0:04:24.599 seems more complicated now and and maybe even some existential 0:04:24.640 --> 0:04:27.480 questions around why am I getting them an m b A. 0:04:27.800 --> 0:04:30.640 How do you make the case for Stanford to students. Yes, 0:04:30.680 --> 0:04:33.159 you're number one, but still you've got to make a 0:04:33.200 --> 0:04:36.159 case that you're better than the Harvard's, the Wharton's, and 0:04:36.279 --> 0:04:39.640 the Sloans of the world. Well, all of what you 0:04:39.720 --> 0:04:42.600 said is still true. There's still great economic r o 0:04:42.800 --> 0:04:46.760 I on an NBA here and other schools. What's I 0:04:46.760 --> 0:04:48.920 think what has changed is the students have evolved. It's 0:04:48.960 --> 0:04:50.880 a much broader set of students. We have students from 0:04:50.960 --> 0:04:54.080 consulting in technology and finance, just like we always did, 0:04:54.080 --> 0:04:56.640 but now We'll have students who come in from from government, 0:04:56.640 --> 0:04:58.880 from health care, from education. We have a student in 0:04:58.920 --> 0:05:02.279 the first year class who was a central banker in Yemen, 0:05:02.440 --> 0:05:06.599 another one who was a dentist in Nigeria, a woman 0:05:06.640 --> 0:05:09.400 who was an Olympic medalist on the U S swimming team, 0:05:09.640 --> 0:05:12.080 And you put all those people in the mix together 0:05:12.160 --> 0:05:14.560 and that's part of the magic of the place. And 0:05:14.560 --> 0:05:18.120 then they go on to approximately the same richness of 0:05:18.200 --> 0:05:23.559 careers and that's changed that that sense that the NBA 0:05:23.640 --> 0:05:27.640 can prepare you for anything, for all different walks of lives, 0:05:27.680 --> 0:05:30.200 all different careers. I think that's really fundamental to to 0:05:30.279 --> 0:05:31.640 what we're trying to do. To tell. One of the 0:05:31.680 --> 0:05:33.240 things we talked about when we were here just one 0:05:33.320 --> 0:05:36.240 year ago celebrating you guys as the number one top 0:05:36.320 --> 0:05:40.200 ranked NBA program was immigration issues and how that was 0:05:40.240 --> 0:05:42.520 impacting foreign students being able to study here in the 0:05:42.600 --> 0:05:46.400 United States. What's changed in the year, if anything, that's 0:05:46.520 --> 0:05:50.400 really front and center for us more than our class 0:05:50.600 --> 0:05:53.200 is international here and that's part of what makes the 0:05:53.200 --> 0:05:56.240 programs as special as your people from sixty countries and 0:05:56.279 --> 0:05:59.080 they speak seventy languages, even though it's a very small 0:05:59.160 --> 0:06:03.479 program here and mentionally small, and I think I think 0:06:03.520 --> 0:06:06.600 one thing that I hope people appreciate it will come 0:06:06.600 --> 0:06:09.159 to appreciate, is just what an incredible asset that is 0:06:09.200 --> 0:06:11.440 for our country to bring people in from all around 0:06:11.440 --> 0:06:13.480 the world and have them study here, and many of 0:06:13.520 --> 0:06:15.919 them will stay in the United States and contribute enormously 0:06:16.000 --> 0:06:19.000 to the great companies, great great companies, going to be 0:06:19.040 --> 0:06:21.159 great leaders, and some of them will go back and 0:06:21.200 --> 0:06:24.159 that's great for us too, because they'll bring American values 0:06:24.160 --> 0:06:27.239 and understanding and thinking back to their countries around the world. 0:06:27.560 --> 0:06:29.320 So before we let you go, it's going to be 0:06:29.360 --> 0:06:31.839 a busy day here for us and for you. What's 0:06:31.920 --> 0:06:34.840 your single biggest challenge in your job as you look 0:06:34.880 --> 0:06:38.000 across the next year. I think it's actually similar to 0:06:38.080 --> 0:06:41.200 one of the big challenges faced by any organizational leader 0:06:41.279 --> 0:06:44.080 right now, which is just trying to interact with all 0:06:44.120 --> 0:06:46.840 types of different people and different constituencies. And at the 0:06:46.839 --> 0:06:48.880 Business School, we have our students, we have our faculty, 0:06:48.960 --> 0:06:51.840 we have our alumni, we have Silicon Valley, we have Washington, 0:06:51.960 --> 0:06:55.000 we have the university, we have the whole business community, 0:06:55.360 --> 0:06:57.920 and that's both can be some one of the biggest challenges, 0:06:57.960 --> 0:06:59.800 but it's also one of the things that makes my 0:07:00.040 --> 0:07:02.760 job so fun. And that was Stanford Graduate School of 0:07:02.760 --> 0:07:05.760 Business Dean John Levin. So interesting to talk to him 0:07:05.800 --> 0:07:08.800 and just reminding us to about the amount of you know, 0:07:08.880 --> 0:07:11.720 students that come from outside the United States. That's still 0:07:11.760 --> 0:07:13.760 a big deal for them, so immigration, as he said 0:07:13.800 --> 0:07:16.480 front End Center, it's a big day. Stanford number one 0:07:16.600 --> 0:07:21.840 again defending its title. And someone who knows about defending titles, 0:07:21.920 --> 0:07:25.360 Joe Lacob. He wears many hats. He's here with us, 0:07:25.560 --> 0:07:28.520 a proud a Stanford alum under the Golden State words 0:07:28.760 --> 0:07:32.000 venture Capitalists Welcome, Thank you for having us here on campus. Well, 0:07:32.040 --> 0:07:34.200 thank you. We have a nice day sitting outside here. 0:07:34.240 --> 0:07:37.600 It's beautiful. So let's talk about your time at Stanford. 0:07:37.640 --> 0:07:41.120 You are a class of eighty three. You have to 0:07:41.160 --> 0:07:44.520 remind me. We'll take us back there. What was it 0:07:44.560 --> 0:07:47.840 like on campus and your experience here. You know, it's 0:07:47.960 --> 0:07:50.440 very very different. Uh. I was a guy that came 0:07:50.440 --> 0:07:53.320 out of a very different background. I was a science 0:07:53.600 --> 0:07:56.120 biology major. I didn't really know anything about business, and 0:07:56.160 --> 0:07:58.280 I worked for a few years and I decided I 0:07:58.360 --> 0:08:00.400 need I liked it, and I needed to get some 0:08:00.400 --> 0:08:02.280 business rains, so unlike a lot of people came from 0:08:02.280 --> 0:08:04.320 maybe Wall Street jobs, I didn't. I didn't know anything, 0:08:04.680 --> 0:08:06.480 but I got in, I came here. It was one 0:08:06.520 --> 0:08:09.120 of the best schools then too. And uh it was 0:08:09.160 --> 0:08:12.080 a great, great experience and for me, perhaps better than 0:08:12.120 --> 0:08:15.000 even some other people, because I learned so much well, 0:08:15.040 --> 0:08:17.240 and you learned a lot about Silicon Valley in a 0:08:17.240 --> 0:08:20.040 lot of ways, which is where you really made your career. 0:08:20.440 --> 0:08:24.160 What is it about that connection? I mean, obviously geography helps, 0:08:24.280 --> 0:08:29.400 but there's something deeper going on between this school broadly 0:08:29.440 --> 0:08:32.240 the university, but also the business school and what's happening 0:08:32.280 --> 0:08:35.280 around us. What is it? Well, I think geography does 0:08:35.280 --> 0:08:37.800 play a big role. I mean for forty years, fifty years, 0:08:37.840 --> 0:08:40.560 I mean now we've been in what arguably is Silicon Valley. 0:08:40.559 --> 0:08:42.720 No one knows where Silicon Valley really is, but this 0:08:42.800 --> 0:08:45.280 is in the middle of it somewhere. And the truth is, 0:08:45.440 --> 0:08:47.600 the classes are great. When you come to the STAN 0:08:47.720 --> 0:08:50.480 for business school, you you're with great students, you know 0:08:50.480 --> 0:08:52.240 all these other people that are in your class, but 0:08:52.320 --> 0:08:54.959 you're in this environment that is kind of hard to replicate. 0:08:55.280 --> 0:08:58.000 I told my kids, and I tell others you can't 0:08:58.000 --> 0:09:00.319 really beat it because you're in the middle of something 0:09:00.320 --> 0:09:02.640 that is hard to explain. It's a culture, and I 0:09:02.640 --> 0:09:05.319 think that culture pervades the business school and the entire area. 0:09:05.520 --> 0:09:06.880 What do you think about we got we caught up 0:09:06.880 --> 0:09:10.200 with the deaned John Levin earlier about what's going on 0:09:10.360 --> 0:09:12.720 here UM at the school. But it's interesting I'm curious 0:09:12.720 --> 0:09:15.560 about you know, I feel like companies are dealing with 0:09:15.600 --> 0:09:18.400 a lot more in terms of E S g UM 0:09:18.679 --> 0:09:22.000 leadership concerns. I think that's it's very much fun and 0:09:22.080 --> 0:09:26.200 center accountability. Like, what do you think has to be 0:09:26.240 --> 0:09:28.560 a part of getting an MBA today? As someone who 0:09:28.559 --> 0:09:32.000 has been involved with many startups in the VC world, 0:09:32.040 --> 0:09:34.160 and we'll get into basketball at a moment, what do 0:09:34.200 --> 0:09:36.240 you think has to be part of getting an MBA today? 0:09:36.320 --> 0:09:39.199 I mean, it's just not about what's in the books, right, 0:09:39.240 --> 0:09:41.400 It's about a lot of other things, and there's so 0:09:41.440 --> 0:09:44.480 many issues that one has to be aware of. UM 0:09:44.520 --> 0:09:46.559 to be a CEO if that's your goal, or to 0:09:46.600 --> 0:09:49.719 be in business and the world it's a very international 0:09:49.760 --> 0:09:51.840 world now. You can't just think domestically as we all know, 0:09:52.080 --> 0:09:53.880 and affects the business I'm in even right now as 0:09:53.920 --> 0:09:58.120 we all know recently. So I think it's you really 0:09:58.160 --> 0:10:00.840 have to have an experience where you get exposure to 0:10:00.960 --> 0:10:03.240 all of those issues. And I think that's what Stanford 0:10:03.240 --> 0:10:05.000 in this place does it. It's very very good at 0:10:05.000 --> 0:10:06.959 doing that. Well. The Dean talked to us about I 0:10:06.960 --> 0:10:09.560 think of their students. I thought it was the United States. 0:10:09.559 --> 0:10:12.679 Pretty impressive. So when you think about this place, Silicon 0:10:12.720 --> 0:10:16.440 Valley and Stanford, so many companies have been born of this, 0:10:16.880 --> 0:10:19.120 private companies. We seem to also be at a moment 0:10:19.120 --> 0:10:22.440 where private valuations public valuations. You've been in the business 0:10:22.480 --> 0:10:24.640 venture capital for a long time. What do you make 0:10:24.640 --> 0:10:27.480 of this moment where people are trying to decide what 0:10:27.720 --> 0:10:30.960 something is worth and there's candidly some disagreement out there. 0:10:31.040 --> 0:10:33.760 How does this end? Well, I'm not really investing as 0:10:33.760 --> 0:10:36.480 a venture capitalist here so much maybe privately as an 0:10:36.480 --> 0:10:39.720 individual to some extent, But you watch the market. I do. 0:10:39.800 --> 0:10:42.640 I do. I'm very aware of it all, and I 0:10:42.640 --> 0:10:46.360 would super aware. I'm aware you can't help, but I 0:10:46.360 --> 0:10:50.000 would say that you know, they're clearly private valuations are 0:10:50.080 --> 0:10:52.480 very very high, and there's some structural issues going on 0:10:52.600 --> 0:10:55.040 here with respect to the giant funds that have been 0:10:55.120 --> 0:10:57.880 raised and the prices they've been willing to pay for 0:10:57.960 --> 0:11:01.480 some of these startups or a little bit later stage 0:11:01.520 --> 0:11:04.000 in startups. And so I think that the public markets 0:11:04.000 --> 0:11:05.920 private markets have to sort of figure all this out. 0:11:06.200 --> 0:11:08.080 This is no different though that's gone on in the past. 0:11:08.120 --> 0:11:11.400 To some extent, We've had these periods where private company 0:11:11.440 --> 0:11:13.560 valuations perhaps have gotten what some people believe to be 0:11:13.559 --> 0:11:17.040 too high. Public companies valuations have to sort of make 0:11:17.080 --> 0:11:19.559 do with all that. I think it'll all work itself out, 0:11:19.640 --> 0:11:21.520 so jo the idea of like I p O ing 0:11:21.840 --> 0:11:23.760 is it's still going to make sense in the future. 0:11:24.760 --> 0:11:26.960 I hope so. And I think so because you know, 0:11:27.000 --> 0:11:30.079 that's something called liquidity. When you're in a private company, 0:11:30.080 --> 0:11:32.000 you don't really have that liquidity, and that's the big difference. 0:11:32.040 --> 0:11:34.360 And I think liquidity is a very important thing in investing. 0:11:34.400 --> 0:11:36.840 It's not just about return. But even with all that 0:11:36.880 --> 0:11:39.280 money that's whether it's in private equity or family wealth offices, 0:11:39.320 --> 0:11:41.600 there's so much money in the private markets right now, 0:11:41.640 --> 0:11:43.640 you don't think that that's gonna kind of put a 0:11:43.720 --> 0:11:47.679 damper increasingly on on the I P O market. I mean, 0:11:47.760 --> 0:11:50.240 it has to some extent. You could argue in the 0:11:50.960 --> 0:11:53.080 years leading up to this period where you've got all 0:11:53.120 --> 0:11:55.440 these companies now that are considered the select group that 0:11:55.480 --> 0:11:57.679 are trying to go public or have gone public recently, 0:11:58.080 --> 0:12:00.600 and uh, they you stay private for a lot longer 0:12:00.640 --> 0:12:02.600 than they would have because they had access to capital. 0:12:02.840 --> 0:12:05.920 But at some point, not all of them, but many 0:12:05.960 --> 0:12:08.480 of them really want to have the liquidity or they 0:12:08.640 --> 0:12:11.640 just need to be public companies for the exposure. All Right, 0:12:11.800 --> 0:12:15.240 I've resisted for as long as I possibly can. We 0:12:15.360 --> 0:12:18.359 got to talk about basketball, but I'd rather talk about 0:12:17.920 --> 0:12:20.840 that because I have to think. You walk through this 0:12:20.920 --> 0:12:24.719 campus and there are people who look at you and see, well, 0:12:24.760 --> 0:12:26.240 that's what I want to be when I grow up, 0:12:26.280 --> 0:12:28.200 is I want to own a basketball team. It's not 0:12:28.320 --> 0:12:31.120 easy right now, What do you make of this season 0:12:31.200 --> 0:12:33.480 so far? Because there have been some twists and turns. 0:12:34.160 --> 0:12:36.679 Every year is the same way in the NBA. It's 0:12:36.720 --> 0:12:39.080 unbelievable how you start the year and everyone has a 0:12:39.080 --> 0:12:42.760 certain mindset or expectations and they change because the fact 0:12:42.800 --> 0:12:46.280 is that players get better, some get worse, some get older. 0:12:46.400 --> 0:12:48.880 You know, the younger ones are emerging, and injuries happen, 0:12:48.960 --> 0:12:50.480 and so The truth is that every year is the 0:12:50.520 --> 0:12:52.360 same thing. You don't really know, and that's what makes 0:12:52.360 --> 0:12:55.840 it great. And this year in the NBA anyway, unfortunately 0:12:55.880 --> 0:12:57.760 for us to let me say, we have a lot 0:12:57.760 --> 0:13:00.600 of injuries, but it's really exciting, I think for the fans. 0:13:00.640 --> 0:13:03.079 But to know that, you know, truthfully there's nine or 0:13:03.120 --> 0:13:05.200 ten teams that any one of them might win the title, 0:13:05.400 --> 0:13:09.200 that's exciting. Now. I'd rather be the prohibitive favorite like 0:13:09.280 --> 0:13:14.280 we've been in notes. Of course, I'd rather, but it's sports, 0:13:14.280 --> 0:13:16.200 and things happen and you have to adjust. Well, how 0:13:16.240 --> 0:13:18.319 does it infect the season? Though? Steph Carry is out 0:13:18.320 --> 0:13:20.280 what for three months? Right now? You're up here on 0:13:20.320 --> 0:13:22.839 your basketball I see he is. He's gonna be out 0:13:22.840 --> 0:13:24.880 for three months. Clay Thompson's out for at least that, 0:13:25.280 --> 0:13:27.679 recovering from his A c L. But more than that, 0:13:27.800 --> 0:13:29.880 every single player that was on our roster last year 0:13:29.920 --> 0:13:32.280 is either gone or injured right at this particular moment. 0:13:32.520 --> 0:13:34.920 Now we will improve. We're playing a lot of young guys, 0:13:34.920 --> 0:13:37.080 and I like to tell my guys it's a you know, 0:13:37.080 --> 0:13:39.480 I'm always positive. Everything's about you've got to be positive. 0:13:39.720 --> 0:13:41.720 And I do believe the silver linings and everything, and 0:13:41.760 --> 0:13:44.240 this in particular will allow us to develop our younger players. 0:13:44.280 --> 0:13:46.120 They're gonna get a lot of time, they're gonna get better, 0:13:46.200 --> 0:13:48.319 and we've got some really good ones. So from a 0:13:48.320 --> 0:13:51.720 standpoint of basketball, I think our fans understand it. They're 0:13:51.720 --> 0:13:54.000 going to be with us, and we're gonna wind up 0:13:54.000 --> 0:13:56.839 being better. Uh sorry, NBA, We're gonna be better. We're 0:13:56.840 --> 0:13:58.640 actually gonna better when this is all over. I have 0:13:58.720 --> 0:14:01.440 to ask you about China. Everything that happened with the 0:14:01.520 --> 0:14:06.480 NBA over there, the commissioner, Lebron, everything that happened, What 0:14:06.679 --> 0:14:10.720 happens next with the NBA in China. You know, I 0:14:10.720 --> 0:14:14.040 could comment on that more, but I'm not is the truth, 0:14:14.120 --> 0:14:16.959 because I think we have a commissioner that is really 0:14:16.960 --> 0:14:19.440 a great commissioner, maybe the best in all of sports. 0:14:19.760 --> 0:14:21.680 And he's on top of this, and he's concerned about 0:14:21.680 --> 0:14:24.760 it too, obviously, and he's the one who's on the 0:14:24.760 --> 0:14:27.080 front lines dealing with these issues. And it's a very 0:14:27.120 --> 0:14:30.120 sensitive subject. It's something that I don't think all of 0:14:30.240 --> 0:14:33.400 us really here and the players and even myself can 0:14:33.440 --> 0:14:36.680 fully explain or understand. So I think it's gonna work 0:14:36.680 --> 0:14:39.040 its way out it's like everything else, and I think 0:14:39.080 --> 0:14:41.640 we'll get back to the place where we were before. 0:14:41.720 --> 0:14:44.200 That's that's my again, the optimist point of view. We're 0:14:44.200 --> 0:14:45.960 talking with Joe Lake up. We're going to continue our 0:14:45.960 --> 0:14:48.400 conversation on Bloomberg Radio. We're going to toss it back 0:14:48.400 --> 0:14:51.880 though to our folks on the TV side. Having said that, Joe, 0:14:52.320 --> 0:14:53.800 I just want to kind of push a little bit, 0:14:53.800 --> 0:14:56.160 like I do wonder what's the responsibility of like corporate 0:14:56.240 --> 0:14:59.720 leaders like yourself in terms of situations like what's going 0:14:59.720 --> 0:15:04.400 on in Hong Kong. It's complicated. Um, I think people, 0:15:04.560 --> 0:15:08.120 corporate leaders have responsibility certainly, but you know, the truth is, 0:15:08.120 --> 0:15:11.200 we have a business to run, too, and our job 0:15:11.320 --> 0:15:15.200 is not really at its most primary to uh, to 0:15:15.280 --> 0:15:18.119 look at what's going on there from a political standpoint 0:15:18.440 --> 0:15:20.440 or to make decisions about that. Our job is to 0:15:20.520 --> 0:15:23.400 run our business. Now. We have to obviously take into 0:15:23.440 --> 0:15:25.720 account all of these kinds of social issues. They are 0:15:25.760 --> 0:15:28.680 important issues, but I don't think it's something that you know, 0:15:28.720 --> 0:15:31.880 I can change personally. I can only do the right things. 0:15:32.000 --> 0:15:34.640 And um, I think Adam and our league and everyone 0:15:34.680 --> 0:15:37.240 will figure this out. And so when you think about 0:15:37.280 --> 0:15:40.840 the Abbey you talked about Adam Silver, and you talk 0:15:40.920 --> 0:15:44.080 about the NBA being a very successful league. There was 0:15:44.120 --> 0:15:47.360 a huge sort of player realignment in a lot of ways, 0:15:47.400 --> 0:15:51.280 something we haven't seen in many seasons. Why is it 0:15:51.320 --> 0:15:54.960 happening in basketball? Why is basketball having the moment that 0:15:55.000 --> 0:15:57.720 it's having, maybe versus some other professional leagues who are 0:15:57.720 --> 0:16:00.560 who are actually declining in popularity. What you're talking about? 0:16:00.560 --> 0:16:05.200 You said player realignment, the movement, the free agency, free 0:16:05.200 --> 0:16:07.640 agency like we've never seen. That's what I thought you're asking. Well, 0:16:07.680 --> 0:16:10.480 we have short term contracts. We have basically four year 0:16:10.520 --> 0:16:13.520 limits on the contracts. Baseball you can sign a contract 0:16:13.600 --> 0:16:16.880 for ten years. So I think that plays a role 0:16:16.880 --> 0:16:18.760 in all this. And so you we expected to have 0:16:18.800 --> 0:16:21.440 more movement, not as much as we expected or as 0:16:21.480 --> 0:16:23.800 we had last year. We did have a lot. In fact, 0:16:23.800 --> 0:16:27.360 the average NBA roster has I think of its players 0:16:27.360 --> 0:16:29.720 from last year on its team this year. Think about 0:16:29.760 --> 0:16:34.680 that under half. So a lot of change. But look, 0:16:34.880 --> 0:16:37.560 that's the system we are in, and I think it 0:16:37.600 --> 0:16:39.760 can be a good thing. And you go through cycles 0:16:39.800 --> 0:16:42.400 in these teams and you have to plan forward. You're 0:16:42.440 --> 0:16:43.960 gonna have a team maybe that you keep all your 0:16:43.960 --> 0:16:46.280 players and you build, and then you're going through cycles 0:16:46.320 --> 0:16:48.640 sometimes where you can't do that. Speaking of building, got 0:16:48.640 --> 0:16:54.880 a new UH stadium arena good, I know, sorry about that, 0:16:55.840 --> 0:16:57.880 but it's pretty amazing. Opened in September. And I'm just 0:16:57.880 --> 0:17:00.400 curious about the revenue streams that you anticipate getting out 0:17:00.400 --> 0:17:02.840 of that, because you, from what I understand, you've signed 0:17:02.880 --> 0:17:05.680 up a lot of already multi year deals for the building. Yeah, 0:17:05.720 --> 0:17:08.240 we have, and uh, look we built it for a reason. 0:17:08.960 --> 0:17:11.800 We had the oldest arena in the NBA, the oldest 0:17:11.840 --> 0:17:14.879 fifty years and it had been remodeled once. But the 0:17:14.920 --> 0:17:17.560 truth is we had one kitchen. I mean, you can't 0:17:17.560 --> 0:17:21.200 serve your customers with one kitchen and expected quality food. 0:17:21.600 --> 0:17:24.119 So we have many, many more kitchens. Now we have 0:17:24.359 --> 0:17:26.720 great food choices we've gotten. I think the most important 0:17:26.760 --> 0:17:29.359 thing is to give our customers a great experience. I 0:17:29.359 --> 0:17:31.280 wish we were winning a little bit more so far 0:17:31.400 --> 0:17:33.520 this year, but that will come. The truth is they're 0:17:33.520 --> 0:17:35.480 getting a great experience and they're in the great place 0:17:35.520 --> 0:17:39.280 there in San Francisco on the waterfront, and it's frankly 0:17:39.320 --> 0:17:42.399 the most expensive arena, not by choice, most expensive arena 0:17:42.440 --> 0:17:45.119 ever built, all with private funding. We're excited as hell 0:17:45.240 --> 0:17:47.720 to be able to open this this year, and you 0:17:47.760 --> 0:17:50.040 should come and see it because it's it's pretty specta. 0:17:51.440 --> 0:17:55.800 Expectations out of it hi high relatively, and we wouldn't 0:17:55.800 --> 0:17:58.840 have done it obviously if we had had not expected that. 0:17:58.960 --> 0:18:00.520 Even if you don't have a great sea then you 0:18:00.520 --> 0:18:02.280 think it'll be okay. Well we're locked in. We have. 0:18:02.480 --> 0:18:04.920 We're fortunate that we were when I say, hi, we're 0:18:05.080 --> 0:18:07.000 we brought in a lot of revenue streams this year, 0:18:07.320 --> 0:18:09.720 locked them in over ten fifteen years. Most of our 0:18:09.880 --> 0:18:12.840 contracts for suites and for sponsorships are eight to fifteen 0:18:12.960 --> 0:18:15.320 or even twenty years in pretty nice visibility. So we 0:18:15.359 --> 0:18:18.199 have a visibility on our revenues that is probably unlike 0:18:18.359 --> 0:18:21.320 most teams in all of sports. And uh, I think 0:18:21.359 --> 0:18:23.239 that's a good thing because allows us to make sure 0:18:23.280 --> 0:18:24.760 we have a competitive team because at the end of 0:18:24.800 --> 0:18:26.960 the day, it's all about winning and making sure that 0:18:27.000 --> 0:18:29.400 our fans are treated well and that that we win 0:18:29.560 --> 0:18:31.320 and we keep our players. And I knew it's early 0:18:31.320 --> 0:18:34.240 in the season, so sorry, valuations still going up, you 0:18:34.240 --> 0:18:36.760 think across the NBA. I mean, it's been unbelievable to 0:18:36.800 --> 0:18:42.800 see you know, kididly professional investors, owners, operators come in. 0:18:43.040 --> 0:18:45.399 Is that just going to continue to bring them higher. 0:18:45.480 --> 0:18:49.000 The higher valuations go, the more professional the managers and 0:18:49.000 --> 0:18:54.280 investors must be because you're now shepherding a very expensive asset. 0:18:54.760 --> 0:18:56.760 And so I think that's a natural trend that's happened. 0:18:56.760 --> 0:18:58.600 When I was involved in buying the team in two 0:18:58.600 --> 0:19:01.359 thousand ten, you know, I went to some investors for 0:19:01.400 --> 0:19:03.600 limited partners and some of them frankly turned me down. 0:19:03.920 --> 0:19:06.040 They said, oh, well, you know this is a vanity investment. 0:19:06.400 --> 0:19:08.280 Well I think you're overpaying. Well they did, and it 0:19:08.320 --> 0:19:10.440 was the highest price ever pay at the time for 0:19:10.520 --> 0:19:12.840 an NBA team. But the truth is I had looked 0:19:12.840 --> 0:19:15.639 at the prior to thirty years and seeing an average 0:19:15.720 --> 0:19:19.399 rate of return that was compounded annually. That's not bad, right, 0:19:19.480 --> 0:19:22.120 that's pretty good. And because you have a limited asset, 0:19:22.320 --> 0:19:24.439 you have something that is unusual and it's live content, 0:19:24.680 --> 0:19:27.840 those things are more they're more true today than they 0:19:27.840 --> 0:19:29.480 were then. Well, that team you paid what half a 0:19:29.520 --> 0:19:31.800 billion is now worth about three point five according to Forbes. 0:19:31.840 --> 0:19:33.720 I think one of the estimates, so not a bad return. 0:19:33.960 --> 0:19:36.040 I'll let others judge what it's worth. I think it's 0:19:36.080 --> 0:19:40.520 worth more than that. What a treat graduate of dis 0:19:40.600 --> 0:19:44.160 fine institution in nine three under the Golden State Warriors, 0:19:44.200 --> 0:19:54.879 among many things. Thank you. So. Catherine august Builda is 0:19:54.880 --> 0:19:57.360 Stanford Graduate School of Business, class of nineteen seventy five. 0:19:57.359 --> 0:20:00.240 She's Vice cheer at the San Francisco based First Republic Bank, 0:20:00.840 --> 0:20:04.360 the publicly held regional bank serving coastal, urban and affluent markets. 0:20:04.400 --> 0:20:06.359 She's been at the bank for a long time, really 0:20:07.119 --> 0:20:09.680 got it to where it is today. And she joins 0:20:09.760 --> 0:20:11.960 us here at the Stanford Graduate School of Business in 0:20:12.040 --> 0:20:14.600 Palo Altars. So nice to have you with us. Delighted 0:20:14.640 --> 0:20:18.080 to be here. Tell us about your time at Stanford, 0:20:18.160 --> 0:20:22.200 And I'm curious about you know, how easily you felt 0:20:22.200 --> 0:20:25.240 accepted as a woman. I think you know pursuing an MBA. 0:20:25.359 --> 0:20:27.159 What the environment was like. Take us back there if 0:20:27.200 --> 0:20:31.760 you would. Well, it was nine I was a class 0:20:31.960 --> 0:20:37.920 of We were a class of sixty women out of students. 0:20:38.720 --> 0:20:42.359 Prior years had been four thirty and then sixties, so 0:20:42.359 --> 0:20:44.719 we were a big class of women and state at 0:20:44.760 --> 0:20:47.359 that level for a very long time. So women were 0:20:47.440 --> 0:20:49.879 for the first time a presence here. But it was 0:20:50.200 --> 0:20:52.959 a very beginning of it, and I it was before 0:20:53.040 --> 0:20:56.360 women knew they could do whatever they wanted, so it 0:20:56.400 --> 0:20:58.960 was we were certainly accepted. But I will did you 0:20:58.960 --> 0:21:02.040 feel like an equal as a student here? Absolutely? Yeah, absolutely. 0:21:02.640 --> 0:21:06.520 There were However, very few women guest speakers and classes. 0:21:06.600 --> 0:21:09.360 There were. I only think I had one female professor, 0:21:10.080 --> 0:21:12.960 one woman ever was a guest speaker in the class. 0:21:13.000 --> 0:21:17.240 But there were there wasn't the bench to choose from. 0:21:17.280 --> 0:21:21.359 So fast forward to today. You're obviously incredibly involved, I 0:21:21.359 --> 0:21:24.199 should say, obviously you are very involved in the school. 0:21:24.359 --> 0:21:27.240 What have you done and how have you sought to 0:21:27.359 --> 0:21:32.040 sort of change that? Because nineteen very different world, and 0:21:32.040 --> 0:21:35.960 and Stanford is is known for having a more diverse 0:21:35.960 --> 0:21:38.399 student body at this point in terms of women. This 0:21:38.480 --> 0:21:40.719 is now we have enough forty seven percent in the class. 0:21:41.640 --> 0:21:44.359 A group of us began about fifteen years ago working 0:21:44.359 --> 0:21:47.280 with the admissions office to interview women and to help 0:21:47.320 --> 0:21:50.600 recruit those women who would have long careers and who 0:21:50.640 --> 0:21:52.840 would be the future leaders of America in the world. 0:21:53.480 --> 0:21:55.400 And I think some of that was helpful. I think 0:21:55.400 --> 0:21:57.920 when we started that we were pent. We're now forty 0:21:57.960 --> 0:22:01.920 seven percent. So we've worked very hard to both interview 0:22:02.280 --> 0:22:05.320 recruit talk to women who are considering coming to Stanford 0:22:05.400 --> 0:22:08.000 or other places and telling them why this is such 0:22:08.000 --> 0:22:11.119 a great place to be In terms of other diversity. 0:22:11.760 --> 0:22:13.800 About ten years ago I taught I was a guest 0:22:13.800 --> 0:22:16.679 speaker in a class. I've done it for about ten 0:22:16.760 --> 0:22:19.840 years for a professor, and I was stunned to see 0:22:19.840 --> 0:22:22.360 the diversity in the class. The number of international students, 0:22:22.359 --> 0:22:25.520 the ethnicities, the gender mix was totally different than when 0:22:25.520 --> 0:22:28.760 I was here. So this is a class of mixed 0:22:29.760 --> 0:22:32.280 from all over the world, from all genders, from all 0:22:32.640 --> 0:22:36.119 all ethnicities. And I think it's great because these different 0:22:36.119 --> 0:22:41.160 people are learning together and showing each other different experiences 0:22:41.200 --> 0:22:43.000 that they will go and take back to whatever they 0:22:43.040 --> 0:22:45.280 do next. Agreed. And we know all the studies about 0:22:45.280 --> 0:22:48.040 having diversity, whether it's you know throughout your employee base, 0:22:48.200 --> 0:22:51.159 your senior executive levels as well as your boards and 0:22:51.160 --> 0:22:52.879 your C suite. One thing I want to ask you, 0:22:52.920 --> 0:22:55.639 and I was doing some research um in terms of 0:22:55.760 --> 0:22:59.959 women MBA's women with NBAS are in six or more 0:23:00.200 --> 0:23:02.120 with an m b A, but still not as much 0:23:02.119 --> 0:23:05.320 as men. Why is that still around? Why is that 0:23:05.359 --> 0:23:08.520 we're improving the pipeline. There's almost parody in terms of 0:23:08.520 --> 0:23:10.960 the number of students here. Why doesn't it carry over 0:23:11.800 --> 0:23:13.520 at all levels when we get into like kind of 0:23:13.560 --> 0:23:15.480 the corporate Well, there's been a lot of studies on this, 0:23:15.600 --> 0:23:18.679 and I'm not the expert on it, but I think, uh, 0:23:18.840 --> 0:23:22.880 in some cases, women may not have as many opportunities 0:23:22.920 --> 0:23:26.800 because people tend to promote people who are more like them, 0:23:26.920 --> 0:23:29.960 and so until people are running those corporations, they may 0:23:30.000 --> 0:23:32.919 not be as obvious. When women wind up on corporate 0:23:32.960 --> 0:23:36.240 governance committees, there generally winds up being more women on boards. 0:23:36.240 --> 0:23:38.560 So it's a matter of looking around and saying, am 0:23:38.600 --> 0:23:41.679 I comfortable with this person? And some of us look different. 0:23:42.160 --> 0:23:44.879 And so I think the more women get to the top, 0:23:44.960 --> 0:23:47.119 the more women will be throughout the pipeline, and the 0:23:47.200 --> 0:23:50.479 less they will be paid unequally uh and have unequal 0:23:50.520 --> 0:23:52.800 amounts of positions. But it's going to still take time. 0:23:53.200 --> 0:23:56.399 The thing is, uh, some women, for one reason or 0:23:56.400 --> 0:23:58.560 other may not decide to go for it. And you 0:23:58.640 --> 0:24:02.000 have to be pretty committed whoever you are, if you 0:24:02.000 --> 0:24:03.359 want to get to the top. It has to be 0:24:03.400 --> 0:24:06.120 a very core goal. One of the things I did 0:24:06.119 --> 0:24:09.400 when I was here, I felt so lucky to be here. 0:24:09.440 --> 0:24:12.639 I felt like I had wound up in a place 0:24:12.680 --> 0:24:15.200 that was going to change my life, and I wanted 0:24:15.280 --> 0:24:18.199 to be a beacon an example for other women. I 0:24:18.200 --> 0:24:20.480 think many of us felt that way, and so I 0:24:20.560 --> 0:24:22.600 always had in my mind that that was one of 0:24:22.640 --> 0:24:28.239 my objectives. Uh some women saw that and copied us, 0:24:28.280 --> 0:24:31.359 some didn't. I think it will still take more time. 0:24:31.400 --> 0:24:34.480 I think Dean Levin's focus on this is probably going 0:24:34.520 --> 0:24:38.360 to help a lot um but we have to help 0:24:38.400 --> 0:24:41.240 women understand that they can do it. They have to 0:24:41.280 --> 0:24:43.680 ask for what they want, they have to speak up, 0:24:44.160 --> 0:24:45.840 and they have to move on if they're not going 0:24:45.880 --> 0:24:48.320 to get it in their existing company. So let's talk 0:24:48.320 --> 0:24:51.080 a little bit about the world at large, because at 0:24:51.119 --> 0:24:55.600 First Republic you have the privilege and the opportunity to 0:24:55.640 --> 0:24:59.600 speak to CEOs around the world. Your customers are well healed, 0:24:59.640 --> 0:25:03.960 and many cases, how are they feeling about the economy 0:25:04.040 --> 0:25:06.080 right now? Because honestly, I feel like we get a 0:25:06.119 --> 0:25:09.680 lot of mixed signals from the data and from various 0:25:10.080 --> 0:25:12.679 folks that we hear, whether it's on earnings calls or 0:25:12.800 --> 0:25:15.400 just anecdotally, what are you hearing? Well? Here, we sit 0:25:15.440 --> 0:25:18.679 on a day when the indexes, indicries are reaching market highs, 0:25:19.280 --> 0:25:22.720 and everybody is nervous. Our clients are nervous, the press 0:25:22.760 --> 0:25:26.919 is nervous. Everyone is nervous because of some things that 0:25:26.960 --> 0:25:29.960 are real, some that are not. They're nervous because it's 0:25:29.960 --> 0:25:31.959 a ten year bowl market and we think there are 0:25:31.960 --> 0:25:34.160 cycles and don't think it can go on. But they're 0:25:34.200 --> 0:25:38.520 also nervous because they're concerned about the China trade problems. 0:25:38.760 --> 0:25:43.719 They're concerned about Brexit, they're concerned about America's relationships with 0:25:43.760 --> 0:25:48.080 its traditional allies. They're concerned about climate change. They're concerned 0:25:48.119 --> 0:25:52.840 about issues of inequality and housing shortages, and those things 0:25:53.040 --> 0:25:57.520 all told create problems for people. And technically, whenever you 0:25:57.560 --> 0:26:00.920 have an inverted Yeel curve, it usually says a recession 0:26:01.000 --> 0:26:03.720 is coming, right, So that's always been a signal. We 0:26:04.520 --> 0:26:08.280 have that some days recently, and so that's making people 0:26:08.320 --> 0:26:11.239 more nervous or technical point of view, Yeah, here we go, 0:26:11.480 --> 0:26:13.400 sit here and the market is again in an all 0:26:13.440 --> 0:26:17.760 time high. So I think our clients are at best 0:26:17.800 --> 0:26:21.520 cautiously optimistic. All right, well, we really appreciate you spending 0:26:21.560 --> 0:26:25.040 some time with this. Catherine august T Willda NBA seventy five. 0:26:25.320 --> 0:26:28.439 Trailblazer in many ways and a great window into not 0:26:28.520 --> 0:26:32.040 just this place, but the world at large. Talk about 0:26:32.040 --> 0:26:35.280 a local boy or an alument made good. John Donahoe, 0:26:35.640 --> 0:26:39.359 he's the CEO of Service. Now he ran eBay, he's 0:26:39.359 --> 0:26:41.480 on the board of PayPal, and now he's got a 0:26:41.520 --> 0:26:44.600 new job. He's going to be the CEO of Nike. 0:26:45.119 --> 0:26:47.480 We were able to catch up with him ahead of 0:26:47.520 --> 0:26:49.480 our trip out here. Here's what he had to say. 0:26:49.720 --> 0:26:53.840 It was really, I think probably the most formative experience 0:26:53.880 --> 0:26:56.199 I had that has set me up for not just 0:26:56.280 --> 0:26:59.359 my career, but to be honest, my my overall life 0:27:00.000 --> 0:27:04.040 over the last thirty years. UM. I distinctly remember many 0:27:04.119 --> 0:27:07.399 of my professors as well as my classmates, and what 0:27:07.480 --> 0:27:10.960 Stanford really really grounded me in was this notion of 0:27:11.240 --> 0:27:14.880 servant leadership. Um. It was a phrase I first heard 0:27:14.880 --> 0:27:18.479 at Stanford. It resonated with me. Ernie Arbuckle, it had 0:27:18.480 --> 0:27:20.320 been a former dean of Stanford, and that's where the 0:27:20.359 --> 0:27:22.800 phrase came from. And if I were to say, there's 0:27:22.840 --> 0:27:28.840 been one foundational, foundational, almost guiding principle for the last 0:27:29.000 --> 0:27:31.760 you know, thirty five years. Since then, it's been a 0:27:31.840 --> 0:27:37.280 real inspiration and attraction towards this notion of servant leadership. Well, 0:27:37.359 --> 0:27:39.760 and there's so many full circle elements to this, and 0:27:39.760 --> 0:27:41.880 we're going to get to them throughout the conversation, one 0:27:41.920 --> 0:27:44.639 of them being the Phil Knight. This is school. But 0:27:44.800 --> 0:27:47.760 you were the winner, I believe, of the R. Buckle Awards, 0:27:47.840 --> 0:27:51.880 So clearly whatever you learned there really took root. I mean, 0:27:51.920 --> 0:27:54.760 when you go there in the eighties, Silicon Valley is 0:27:54.840 --> 0:27:59.400 certainly developed and developing, a far cry from from where 0:27:59.440 --> 0:28:01.520 it is now. Why did you go west in the 0:28:01.560 --> 0:28:04.520 first place? You know? I I went to Dartmouth College undergrad. 0:28:04.880 --> 0:28:07.919 I was fortunate enough as a senior in college to 0:28:08.040 --> 0:28:10.560 apply to a few different business schools. I was fortunate 0:28:10.600 --> 0:28:13.080 enough to get in, but I knew I wanted to 0:28:13.080 --> 0:28:16.159 go to Stanford because Stanford, as a as a senior 0:28:16.200 --> 0:28:19.439 and a senior in college rather in two, it was 0:28:19.520 --> 0:28:23.400 known for teamwork. Um. It was known for working with 0:28:23.480 --> 0:28:26.159 and through others, and that was really attractive to me. 0:28:26.200 --> 0:28:29.000 I'd played sports my whole life. I loved team sports. 0:28:29.520 --> 0:28:31.160 I had not yet been in business, but I knew 0:28:31.200 --> 0:28:34.040 that a team approach was what I wanted to do, 0:28:34.080 --> 0:28:36.480 and that was a reputation Stanford had. I had never 0:28:36.520 --> 0:28:40.120 lived in California. So I joined Bain for two years 0:28:40.600 --> 0:28:43.040 UH with the agreement that I was going to going 0:28:43.080 --> 0:28:46.240 to Stanford in four and when I came out, I 0:28:46.280 --> 0:28:48.560 certainly wasn't disappointed. I took a lot of classes at 0:28:48.600 --> 0:28:51.600 Stanford that were about the human side of management, about 0:28:51.640 --> 0:28:56.040 the inner journey of leadership, not just accounting and marketing 0:28:56.040 --> 0:28:59.040 and finance, and so in at Stanford it was very 0:28:59.120 --> 0:29:03.040 legitimate to talk about things like the inner journey of leadership, 0:29:03.080 --> 0:29:05.480 talk about your personal and professional life, and how to 0:29:05.480 --> 0:29:09.000 build an integrative life. And so at a very young 0:29:09.080 --> 0:29:11.880 age and a very impressionable stage of my life, I 0:29:11.880 --> 0:29:13.840 feel like what I got from Stanford is those things 0:29:13.880 --> 0:29:17.240 were not only were they I legitimate, they were the 0:29:17.280 --> 0:29:20.800 best way to lead of fulfilling and hopefully impactful life. 0:29:20.880 --> 0:29:23.400 So let's go back to the mid eighties. When you 0:29:23.520 --> 0:29:26.840 come out, how does all of that inform the choices 0:29:26.880 --> 0:29:28.880 you make about the career you want to have and 0:29:28.880 --> 0:29:31.360 where you want to have it. During my first year 0:29:31.600 --> 0:29:34.600 at Stanford Business School, my wife applied to law school 0:29:35.440 --> 0:29:38.920 and she got in, and so during the beginning of 0:29:38.920 --> 0:29:40.560 my second year, which was going to be her first 0:29:40.640 --> 0:29:42.640 year Stanford Law School. We had a one year old child. 0:29:43.360 --> 0:29:47.120 I went to the dean of the Dean of Students 0:29:47.880 --> 0:29:51.200 UM Student Affairs at Stanford Business School, Jerry Gold, and 0:29:51.240 --> 0:29:54.320 I said, Dean Gold, I have to take next year 0:29:54.360 --> 0:29:56.880 off or I have to work part time because we 0:29:56.920 --> 0:29:58.360 have a one year old. We can't both be in 0:29:58.400 --> 0:30:02.160 graduate school at the same time. And this is classic Stanford, 0:30:02.400 --> 0:30:05.120 she says. Dean Gold says, oh, John, note just to this. 0:30:05.480 --> 0:30:07.880 Go ahead and start. And you know, if you want 0:30:07.880 --> 0:30:10.840 to take three classes instead of four, that's fine. Maybe 0:30:10.880 --> 0:30:12.800 start with four. If you want to drop one, that's fine, 0:30:13.040 --> 0:30:15.040 and we'll be flexible. You don't have you don't have 0:30:15.080 --> 0:30:18.680 to come in with some preordained plan. Well, what she 0:30:18.760 --> 0:30:22.320 did is she gave me permission to have an open 0:30:22.400 --> 0:30:25.080 mind and a mind that said, hey, it was legitimate 0:30:25.120 --> 0:30:26.640 what my wife was doing and the fact we had 0:30:26.680 --> 0:30:29.400 a kid as well as going to business school. As 0:30:29.440 --> 0:30:32.920 it worked out, I started that second year UM started 0:30:32.920 --> 0:30:35.320 with four classes. I thought I was going to drop one, 0:30:35.520 --> 0:30:38.200 never ended up dropping one and ended up graduating on time. 0:30:39.120 --> 0:30:42.719 But Stanford, both institutionally for the dean and just the culture, 0:30:43.040 --> 0:30:45.720 gave me permission to have the fact that it was 0:30:45.760 --> 0:30:48.960 a father, the fact that I was married to someone 0:30:49.040 --> 0:30:51.680 who was a peer and had a dual career that 0:30:51.840 --> 0:30:55.440 was legitimate, and so ironically I ended up following my 0:30:55.440 --> 0:30:59.080 wife when I went to bain Um thereafter, and you 0:30:59.120 --> 0:31:01.480 know that ended up working, Okay, end up staying seventeen 0:31:01.560 --> 0:31:03.240 years of Baine. Who would have figured at that time 0:31:03.360 --> 0:31:05.400 we got to talk about your new job. You're moving 0:31:05.440 --> 0:31:08.520 to Portland to become the CEO of Nike. You've served 0:31:08.560 --> 0:31:12.000 on the board there. Why take this job now? Why 0:31:12.080 --> 0:31:16.920 bring it full circle, as you say, with your esteemed 0:31:16.960 --> 0:31:20.040 history at the Phil Knight Business School and now working 0:31:20.080 --> 0:31:23.400 for the company that Phil Night created. I was lucky enough, 0:31:23.440 --> 0:31:26.560 unfortunate enough to meet Phil twenty years ago and Mark Parker, 0:31:27.960 --> 0:31:36.160 Nike's CEO, and I've always deeply resonated with Nike's purpose um, 0:31:36.160 --> 0:31:41.000 which is, you know, bring inspiration and innovation to every 0:31:41.040 --> 0:31:44.320 athlete in the world. Asterisk around athlete. If you have 0:31:44.360 --> 0:31:48.120 a body, you are an athlete, And to me, that's 0:31:48.120 --> 0:31:51.400 around human potential. It speaks to each person on this 0:31:51.520 --> 0:31:56.320 planet around the potential they have within them. And sport 0:31:57.640 --> 0:32:00.400 is sport is a very powerful and tuition in a 0:32:00.480 --> 0:32:02.560 world right now, a lot of our other institutions are 0:32:02.600 --> 0:32:06.760 falling down. They're polarizing, whether it's you know, government or politics. 0:32:07.280 --> 0:32:10.040 Sport is something that brings people together. It brings people 0:32:10.080 --> 0:32:14.360 together on a level playing field within countries and across countries. 0:32:15.040 --> 0:32:18.880 And so the the purpose of Nike and the role 0:32:18.920 --> 0:32:20.920 in impact it does and can have in the world 0:32:21.080 --> 0:32:24.880 is just something that has I've always admired deeply. It's 0:32:24.880 --> 0:32:27.040 always spoken to me. I was privileged enough to be 0:32:27.360 --> 0:32:30.080 served on the board the last five years, and when 0:32:30.200 --> 0:32:33.680 Mark and fail in the board UH invited me to 0:32:33.880 --> 0:32:36.840 have this opportunity to become CEO, it almost felt like 0:32:37.200 --> 0:32:41.160 um a calling and and a cause that I had 0:32:41.200 --> 0:32:43.440 to pursue. And very much along the lines of what 0:32:43.480 --> 0:32:46.280 we've been talking about in this conversation, Nike is at 0:32:46.280 --> 0:32:49.560 the epicenter of many things, and I think has had 0:32:49.600 --> 0:32:52.280 a track record of playing a very positive role not 0:32:52.440 --> 0:32:55.680 just with its athletes and customers and consumers, but also 0:32:56.160 --> 0:33:00.400 in the broader society. And and so I'm feel very 0:33:00.440 --> 0:33:03.280 privilege and honored to to have the opportunity to serve 0:33:03.440 --> 0:33:07.480 continue my my my quest of servant leadership by serving 0:33:07.560 --> 0:33:11.280 the employees and customers and athletes and society around Nike, 0:33:11.800 --> 0:33:15.880 and I'm looking forward to it. And that is John Donahoe, 0:33:15.920 --> 0:33:20.000 currently the CEO of Service now a graduate of the 0:33:20.160 --> 0:33:23.800 Stanford Graduate School of Business, headed to a new job 0:33:23.880 --> 0:33:26.120 a little bit north of here, up in Portland, Oregon, 0:33:26.800 --> 0:33:29.040 a dream job, I would imagine for him and for 0:33:29.120 --> 0:33:33.040 many people, and taking over at Nike at a really 0:33:33.240 --> 0:33:42.880 important time, to say the least, so steeped in areas 0:33:42.880 --> 0:33:46.600 of diversity, organizational behavior and more. Sarah soul is the 0:33:46.800 --> 0:33:49.400 more more Gridge, let me get it right, professor of 0:33:49.480 --> 0:33:53.040 organizational behavior. She's a senior Associate dean for academic Affairs 0:33:53.040 --> 0:33:56.040 at the Stanford Graduate School of Business. So nice to 0:33:56.040 --> 0:33:57.600 have you here with Jason and me. Thank you for 0:33:57.880 --> 0:34:00.800 opening us up to your home. Thank you, Thank you, Jason, 0:34:00.840 --> 0:34:02.880 it's great to have you here. We were thinking about 0:34:02.920 --> 0:34:05.719 all of the headlines today, um and in terms of 0:34:05.760 --> 0:34:08.080 what's going on at companies, how do you pull in 0:34:08.160 --> 0:34:11.760 the headlines like we have the McDonald's CEO being fired today, 0:34:11.880 --> 0:34:14.280 we have under arm or being looked at too into 0:34:14.360 --> 0:34:16.719 the last couple of years in terms of accounting concerns. 0:34:16.960 --> 0:34:18.560 But how do you pull in what's of the headlines 0:34:18.640 --> 0:34:21.440 into your teachings. That's a great question. And one of 0:34:21.480 --> 0:34:24.359 the things that is sort of distressing, of course about 0:34:24.360 --> 0:34:27.440 many of these headlines is that it actually allows us 0:34:27.520 --> 0:34:30.160 we hear about them, but it allows us wonderful learning 0:34:30.160 --> 0:34:34.240 opportunities in the classroom, particularly these days when we're bringing 0:34:34.280 --> 0:34:37.600 more and more about diversity, equity, and inclusion into all 0:34:37.640 --> 0:34:41.040 of our classes. Having these examples, these real life examples 0:34:41.040 --> 0:34:44.719 that our students have read about and are experiencing, allows 0:34:44.840 --> 0:34:47.399 us to think and work with them, to think about 0:34:47.440 --> 0:34:51.040 ways that they would better handle such situations, and allows 0:34:51.120 --> 0:34:54.239 us to really train them to be better principles and 0:34:54.360 --> 0:34:58.360 purposeful leaders. So while they're distressing to hear about, it 0:34:58.440 --> 0:35:01.560 allows us a lot of wonderful learning opportunities to learn 0:35:01.600 --> 0:35:05.280 from learn from failure. Right, And so, what are students 0:35:05.480 --> 0:35:09.960 expecting in this regard that maybe they didn't expect five, ten, 0:35:10.600 --> 0:35:13.239 twenty years ago. What are they expecting to learn? Where 0:35:13.239 --> 0:35:16.520 are they pushing you? This is another great question, Jason. 0:35:16.680 --> 0:35:19.319 Our students have changed a lot over the last ten 0:35:19.520 --> 0:35:23.240 or fifteen years. As you've probably heard about, our students 0:35:23.480 --> 0:35:25.759 have come of age in a very different era than 0:35:25.920 --> 0:35:28.919 certainly I did, and certainly many of our past students did, 0:35:29.200 --> 0:35:32.680 and they've come of age on college campuses where they're 0:35:32.760 --> 0:35:38.279 undergraduate professors, their undergraduate peers are talking about issues of diversity, 0:35:38.320 --> 0:35:42.640 about equity, inclusion, corporate social responsibility, and so they come 0:35:42.680 --> 0:35:46.560 to us as learners who have already already been exposed 0:35:46.600 --> 0:35:49.239 to some of these pressing issues, and they come to 0:35:49.400 --> 0:35:52.279 us hoping that we will give them answers and that 0:35:52.320 --> 0:35:55.600 we will be able to train them to become better leaders. Well, 0:35:55.640 --> 0:35:57.920 I gotta say, I do wonder about what the student 0:35:57.920 --> 0:36:01.200 body thinks, because right all of of like global corporations 0:36:01.200 --> 0:36:03.719 are talking about the importance of diversity, and you know 0:36:03.840 --> 0:36:07.080 how it's just better for so many different reasons. So 0:36:07.320 --> 0:36:09.719 I'm just curious, does the student body think that the 0:36:09.800 --> 0:36:13.359 corporate world is doing enough because there's so much conversation, 0:36:13.440 --> 0:36:15.160 but you know, some of the numbers are getting better, 0:36:15.160 --> 0:36:17.000 but I still think people think that there could be 0:36:17.320 --> 0:36:21.600 much more significant improvements. And I think that I think 0:36:21.640 --> 0:36:23.440 that's kind of mixed. I mean I think that there's 0:36:23.680 --> 0:36:25.480 you know, I tend to be an optimist and I 0:36:25.719 --> 0:36:28.239 sort of tend to point to the real winds that 0:36:28.320 --> 0:36:32.240 we see in many companies. Uh, And but I also 0:36:32.360 --> 0:36:36.080 believe in transparency, and I believe in making sure that 0:36:36.239 --> 0:36:40.160 companies are able to to tell us what they're doing 0:36:40.400 --> 0:36:43.000 so that we can do better. And I think our 0:36:43.000 --> 0:36:46.640 students really come to us believing that they can make 0:36:46.920 --> 0:36:49.080 positive change in the world, and that they want to 0:36:49.120 --> 0:36:51.839 make positive change in the world. So I already said 0:36:51.840 --> 0:36:55.080 I was an optimist, but but I really believe this now. 0:36:55.120 --> 0:36:57.880 So it's wonderful to see our students asking us and 0:36:57.920 --> 0:37:01.239 pushing us as professors, pushing us as leaders of the 0:37:01.280 --> 0:37:05.120 g SB to teach them the skills, the competencies and 0:37:05.120 --> 0:37:10.480 the values that they need to lead better organizations lead 0:37:10.520 --> 0:37:12.880 into the future. So talk to us about some of 0:37:12.960 --> 0:37:16.279 your work, especially around social movements, because I find that 0:37:16.440 --> 0:37:20.279 so fascinating, especially given where we're sitting right now in 0:37:20.320 --> 0:37:22.759 the heart of Silicon Valley, when there are big this 0:37:22.800 --> 0:37:28.680 is my favorite word, existential questions around technology, around humanity, 0:37:28.719 --> 0:37:32.880 around our responsibility to each other. How do you what 0:37:33.120 --> 0:37:34.680 or I guess I should say, what do you make 0:37:34.719 --> 0:37:37.080 of the last couple of years of social movements? You know, 0:37:37.160 --> 0:37:40.360 whether it's around climate change, whether it's around me to 0:37:40.840 --> 0:37:44.120 like what described the moment where we are. From your perspective, 0:37:44.239 --> 0:37:47.680 I think we are in an incredible moment where there's 0:37:47.680 --> 0:37:50.040 a lot of mobilization. I mean think not just here 0:37:50.040 --> 0:37:52.840 in Silicon Valley, but we've all been watching the news 0:37:52.880 --> 0:37:57.560 and various countries, Hong Kong, We've been watching Hong Kong, Lebanon, um, Chile, 0:37:58.120 --> 0:38:01.080 and and I think what we're seeing is what social 0:38:01.120 --> 0:38:03.759 movements parlance we call a wave of protest or a 0:38:03.760 --> 0:38:07.880 cycle of protest, and that is that people are coming 0:38:07.920 --> 0:38:11.560 together and learning from one another and are not content 0:38:11.640 --> 0:38:15.759 to just let discontent be the norm. So we're but 0:38:15.840 --> 0:38:18.880 we're also I think at a point where many of 0:38:18.920 --> 0:38:23.120 our company leaders, many of our leaders of course of 0:38:23.239 --> 0:38:26.680 not just companies, but many government leaders, are are open 0:38:26.760 --> 0:38:28.960 to and willing to change. And so we're at a 0:38:29.000 --> 0:38:32.040 moment right now where I think there's openness to learning 0:38:32.480 --> 0:38:35.759 from what it is that people activists want at the 0:38:35.800 --> 0:38:39.319 same time a willingness to work with and collaborate with activists, 0:38:39.400 --> 0:38:42.520 both at companies, but I think also in some of 0:38:42.560 --> 0:38:44.560 the some of the nations. Well, we've been having some 0:38:44.600 --> 0:38:47.359 of the conversations, certainly with some of the alum from 0:38:47.360 --> 0:38:49.520 the school, but it's interesting, and I do wonder whether 0:38:49.560 --> 0:38:51.960 the student body basically just looking at what's going on 0:38:52.000 --> 0:38:54.239 in Hong Kong and China right there's just so much 0:38:54.280 --> 0:38:57.040 tension right now, and you know, there's pressure on some 0:38:57.080 --> 0:38:59.600 of the corporations that they should be standing up, and 0:38:59.640 --> 0:39:01.719 then they're leaders are kind of backing down in the 0:39:01.760 --> 0:39:04.000 corporate world because they want to be in those markets, 0:39:04.000 --> 0:39:05.640 and there's the belief if you're in the market, you 0:39:05.640 --> 0:39:09.120 can be a much better facilitator facilitator of changed. So 0:39:09.160 --> 0:39:11.600 I just curious what the students pushed back on and say, well, 0:39:11.640 --> 0:39:14.239 wait a minute, that doesn't work so far. Yes, And 0:39:14.280 --> 0:39:16.759 I think that that's this is an age age old 0:39:16.760 --> 0:39:21.279 debate about whether we should be engaging in um in 0:39:21.280 --> 0:39:25.840 in countries that have, for example, very poor um UH 0:39:25.880 --> 0:39:28.320 poor records of human rights and should we be engaged, 0:39:28.400 --> 0:39:32.279 Can can our businesses can our presence actually make a 0:39:32.360 --> 0:39:34.839 positive change? And you know, the truth is on that 0:39:34.880 --> 0:39:38.040 the research is quite mixed, and and the more that 0:39:38.120 --> 0:39:42.160 we learn about the presence of companies in some of 0:39:42.160 --> 0:39:45.440 these nations, the better equipped we are to advise our students, 0:39:45.560 --> 0:39:47.279 and the better equipped we are, I think as a 0:39:47.360 --> 0:39:50.640 university to take a stance on some of these issues. 0:39:50.960 --> 0:39:54.040 And so what we need to do, I think as academics, 0:39:54.040 --> 0:39:56.279 and this falls on us, is do a better job 0:39:56.320 --> 0:40:00.840 of assessing under what conditions will company presence or university 0:40:00.880 --> 0:40:04.080 presence make improvements and when won't it right? What really 0:40:04.120 --> 0:40:08.279 makes a difference? Rightsolutely yes, And that's our role as academics. 0:40:08.600 --> 0:40:10.319 What a treat to catch up with you, and thank 0:40:10.320 --> 0:40:12.600 you for being such a gracious host for us here 0:40:12.640 --> 0:40:15.120 at the Graduate School of Business. Sarah soul She is 0:40:15.160 --> 0:40:18.839 the Senior Associate Dean for Academic Affairs, author of two 0:40:18.880 --> 0:40:20.960 recent books, and I'm so glad we got to talk 0:40:20.960 --> 0:40:23.799 about them a little bit, Contention and Corporate Social Responsibility, 0:40:24.040 --> 0:40:28.440 and a second called a Primer on Social Movements. Very 0:40:28.560 --> 0:40:37.840 very timely came very very timely. Well, yes, indeed, Bloomberg 0:40:37.880 --> 0:40:40.960 Business Week naming Stanford the number one US business school 0:40:41.040 --> 0:40:45.640 in a NBA ranking, And that's exactly where Jason Kelly 0:40:45.680 --> 0:40:48.960 and I find myself on this lovely Monday. Let's get 0:40:49.000 --> 0:40:50.400 into it, though, because there's a lot of work that 0:40:50.440 --> 0:40:53.520 goes into it. Let's catch up with a couple of 0:40:53.520 --> 0:40:56.840 our editors are Bluemberg News Senior editor Caleb Solomon. He 0:40:56.960 --> 0:41:00.120 joins us from our Boston bureau, and also with us 0:41:00.440 --> 0:41:02.879 is our Bloomberg business Week editor Joel Webber. He's back 0:41:02.960 --> 0:41:06.359 in our New York studio. So, UM, I gotta start 0:41:06.400 --> 0:41:07.920 with you, Joel. First of all, I know there's a 0:41:07.920 --> 0:41:09.760 lot of work goes into it, we know, and talking 0:41:09.800 --> 0:41:13.640 to the alumni that everybody looks for these rankings. Um, 0:41:13.680 --> 0:41:15.200 talk to us little bit about it. Yeah, and it's 0:41:15.239 --> 0:41:18.920 the thirty first year that Business Week has has done 0:41:19.320 --> 0:41:22.840 a business school ranking. But really we we uh we 0:41:22.840 --> 0:41:27.960 we started from scratch almost a year ago, uh to 0:41:28.080 --> 0:41:33.040 basically reimagine what the business school ranking could be. And 0:41:33.040 --> 0:41:35.239 and Caleb gets big props for being one of the 0:41:35.360 --> 0:41:39.000 architects of that. And we really tried to lean into 0:41:39.440 --> 0:41:43.239 where we thought a ranking of this variety could go. 0:41:43.360 --> 0:41:46.000 And so much of that has been let's actually lean 0:41:46.040 --> 0:41:49.680 into the networks and the students and the alumni and 0:41:49.840 --> 0:41:54.560 actually start asking questions to them about their experiences. And 0:41:54.600 --> 0:41:58.520 that's what really makes this ranking be so definitive. It's 0:41:58.640 --> 0:42:03.320 very interactive, so you can actually customize the ranking based 0:42:03.360 --> 0:42:06.560 on what you're what you're interested in, and that's um, 0:42:06.960 --> 0:42:09.759 you know, I just hats off to Caleb as being 0:42:09.800 --> 0:42:12.080 one of the architects for it. So, so, Caleb, when 0:42:12.080 --> 0:42:14.920 you look at this year versus last year or even 0:42:15.080 --> 0:42:18.040 years before, what what are some of the distinguishing things 0:42:18.040 --> 0:42:20.799 that jump out at you? Thanks Joe for all that 0:42:20.880 --> 0:42:23.360 you know. So you you you nailed what we what 0:42:23.440 --> 0:42:25.120 we were, what we're all trying to do here, which 0:42:25.120 --> 0:42:28.319 is to really personalized ranking. So I mean, if you're 0:42:28.360 --> 0:42:30.480 looking at a school, you know, one of the top 0:42:30.520 --> 0:42:33.200 tier school, say in the on the West Coast, it 0:42:33.239 --> 0:42:35.640 doesn't matter to you. We're Harvard and m I t 0:42:35.960 --> 0:42:38.880 in our on our list. So we gave you the 0:42:38.920 --> 0:42:42.120 ability to really personalize this based on your scores, the 0:42:42.160 --> 0:42:44.839 region that you're interested in, the industries that you want 0:42:44.840 --> 0:42:48.360 to work in, and really create your own customized ranking. 0:42:48.400 --> 0:42:50.719 And all of the tools that we built to do that, 0:42:51.040 --> 0:42:54.040 we made them so much better this year. The personalization, 0:42:54.360 --> 0:42:56.760 this ability to sort of create your short list along 0:42:56.800 --> 0:42:58.799 the way that provides all of the comparisons of the 0:42:58.840 --> 0:43:01.879 amazing data we have. It's all at your fingertips, it's 0:43:01.880 --> 0:43:03.680 all share able. You can send it to friends, you 0:43:03.680 --> 0:43:06.240 can send it elsewhere. Those are some of the biggest 0:43:06.320 --> 0:43:10.160 changes we made and talk to us about how Stanford 0:43:10.840 --> 0:43:15.680 got the trophy. Stanford just came out number one in 0:43:15.719 --> 0:43:19.200 a couple of our big indexes and compensations. Stanford was 0:43:19.280 --> 0:43:22.000 number one, tied with Wharton interno. So that's that's one 0:43:22.000 --> 0:43:23.920 of the key measures for business school. You know, how 0:43:24.000 --> 0:43:25.360 much do you make when you get out of school? 0:43:25.640 --> 0:43:29.240 What what are alumni making five, six, seven years after 0:43:29.280 --> 0:43:33.240 they're after they left school. And the other big index 0:43:33.280 --> 0:43:35.839 that mattered a lot to Stanford was entrepreneurship, where again 0:43:35.880 --> 0:43:38.320 they came out number one. So with number one place 0:43:38.320 --> 0:43:41.479 on those two indexes, that pushed them right to the top. 0:43:42.200 --> 0:43:45.680 Carol Jason, I'm like looking at you from here and 0:43:45.719 --> 0:43:48.640 I'm like, you guys are in in in Stanford, at 0:43:48.680 --> 0:43:51.000 Stanford right now, Like what what have you guys been 0:43:51.040 --> 0:43:55.640 hearing out there? What's what's been interesting? Well, everybody knows 0:43:55.719 --> 0:43:58.880 they're the champs out here. I mean, listen, this is 0:43:59.080 --> 0:44:01.640 this school is believable in a lot of ways. When 0:44:01.680 --> 0:44:04.520 you know, we've got a chance to talk to a 0:44:04.560 --> 0:44:07.279 lot of the alum as well as the students. You know, 0:44:07.360 --> 0:44:10.879 the people who come here, it's a very diverse student body. Uh. 0:44:10.920 --> 0:44:13.239 They spent a lot of time thinking about that in 0:44:13.320 --> 0:44:16.160 terms of who they recruit, but also who's teaching and 0:44:16.200 --> 0:44:19.279 what they teach. Caleb, I did want to ask you 0:44:19.360 --> 0:44:21.600 because it did come up in some of our conversations 0:44:21.600 --> 0:44:25.479 here number two with a bullet talk coming in making 0:44:25.840 --> 0:44:29.560 bake move talk to us about that? Yeah, that really 0:44:29.680 --> 0:44:32.239 that really jumped out to all of us. UM, so 0:44:32.719 --> 0:44:37.520 talk did pretty well. Ask you on compensations exactly Dartmouth 0:44:37.560 --> 0:44:40.600 and Hanover, New Hampshire, UM near near where I live 0:44:40.719 --> 0:44:43.360 and so um. But what they really came out they 0:44:43.480 --> 0:44:47.160 surged in the networking index and our networking indexes. You know, 0:44:47.320 --> 0:44:49.920 how much do alumni interact with students? How much do 0:44:49.960 --> 0:44:53.080 alumni help other alums get jobs? What's kind of the 0:44:53.120 --> 0:44:55.279 halo the impact of like when you go looking for 0:44:55.320 --> 0:44:58.200 a job, how much does having you know, telling people 0:44:58.200 --> 0:44:59.800 that you came from talk or is they like to 0:44:59.840 --> 0:45:03.120 call the Kentucky How much does that matter? And UM, 0:45:03.200 --> 0:45:05.439 I think we got a lot better response this year 0:45:05.520 --> 0:45:08.600 from both the alumni classes that we surveyed as well 0:45:08.640 --> 0:45:10.480 as the graduating students, where they must have had a 0:45:10.600 --> 0:45:13.720 much much much better experience with other with the lums 0:45:13.719 --> 0:45:18.160 than they did in the past year. What else stood 0:45:18.160 --> 0:45:22.640 out for you guys in this year's survey. What what 0:45:22.640 --> 0:45:26.759 what stood out is just the range of responses we get. 0:45:26.840 --> 0:45:30.719 So the way we broke it down is UM, you know, 0:45:30.760 --> 0:45:34.720 so an entrepreneurship. While Stanford comes out number one, BABS 0:45:34.760 --> 0:45:37.960 in the school that overall is ranked lower than Stanford, 0:45:38.000 --> 0:45:41.799 came out number two in entrepreneurship. UH, the University of 0:45:41.800 --> 0:45:45.680 Maryland came out number five. The Salt Lake City School, Utah, 0:45:45.880 --> 0:45:49.680 the Utah School actually school in Utah, UM came out 0:45:49.760 --> 0:45:52.920 number six. So it's it's finding these gems in specific 0:45:52.960 --> 0:45:55.480 areas that may interest you where you just you know, 0:45:55.560 --> 0:45:58.920 you don't think of these schools necessarily as bastions of entrepreneurship, 0:45:58.960 --> 0:46:00.920 but they're really teaching people had to do well in 0:46:00.920 --> 0:46:03.360 this field, and we're bringing that information out to people. 0:46:03.440 --> 0:46:05.600 And Carol, one of the things that I like about 0:46:05.640 --> 0:46:09.160 it is it's not just this copy and paste thing 0:46:09.239 --> 0:46:12.160 where you get the exact same ranking more or less 0:46:12.239 --> 0:46:15.440 every year. Right. The way that it's been constructed is 0:46:15.480 --> 0:46:18.799 that different schools can actually really succeed. And like, that's 0:46:18.800 --> 0:46:20.760 what I love about this is like you have Stanford, 0:46:20.800 --> 0:46:24.120 which repeats starting to look like a powerhouse and yet 0:46:24.160 --> 0:46:28.040 out of notewhere comes Dartmouth surging up the ranking. It's 0:46:28.040 --> 0:46:33.040 like marsh Madness, you know, only in November. Yeah, yeah, no, 0:46:33.200 --> 0:46:36.160 it's really amazing. There was a lot of movement on 0:46:36.200 --> 0:46:39.040 the list this week worth checking out for sure. Caleb Salmon, 0:46:39.400 --> 0:46:42.880 the architect is Joel Webber said of this ranking, Joel Webber, 0:46:42.920 --> 0:46:46.600 the editor of Business Week, thank you both so much so, Jason. 0:46:46.600 --> 0:46:49.439 The luxury space continues to get disrupted in so many 0:46:49.440 --> 0:46:52.360 different ways. Playing into that is send Reeve. It's a 0:46:52.400 --> 0:46:55.640 director consumer brand that sells luxury handbags. Curl Chung is 0:46:55.640 --> 0:46:57.839 the founder and CEO of the company. Graduated with an 0:46:57.880 --> 0:47:01.200 NBA from Stanford in even and she's back in our 0:47:01.280 --> 0:47:04.439 Bloomberg in Director Broker Studio in New York. Coral, nice 0:47:04.480 --> 0:47:06.239 to have you here with us. We've been asking all 0:47:06.239 --> 0:47:08.399 of the Stanford alum tell us a little a little 0:47:08.400 --> 0:47:11.000 bit about your time here at the school and getting 0:47:11.000 --> 0:47:14.440 your NBA here. Thank you so much. I'm very glad 0:47:14.480 --> 0:47:18.120 to be here. I missed the sunshine from California though 0:47:18.320 --> 0:47:21.960 while I'm out in New York today, Although so I 0:47:22.000 --> 0:47:25.600 love beautiful, beautiful fall weather in New York. Um. Nothing 0:47:25.640 --> 0:47:30.240 to complain about their UM. So I started Sunrev. Actually, 0:47:30.280 --> 0:47:33.239 the concept of Sunrov was really formed while I was 0:47:33.280 --> 0:47:37.600 still at Stanford UM and it's it's a it's a 0:47:37.760 --> 0:47:42.360 very exciting place because I found myself being able to 0:47:42.440 --> 0:47:46.160 explore things and really discover my true passions during my 0:47:46.200 --> 0:47:50.360 two years there. And while I was there, I was 0:47:50.440 --> 0:47:53.200 part of a student group that led something called the 0:47:53.280 --> 0:47:57.080 lux Truk where we went to Milan and Florence and 0:47:57.160 --> 0:48:01.520 Paris and London and met with different TA luxury brands 0:48:01.640 --> 0:48:05.520 UH and it was incredibly inspiring experience for me, and 0:48:05.680 --> 0:48:09.080 through that I started to think about if I were 0:48:09.160 --> 0:48:11.640 to start a luxury brand someday, what would that look like, 0:48:11.760 --> 0:48:16.239 how it how would it be disruptive and differentiated. And 0:48:16.280 --> 0:48:19.120 it was really during that time that directed consumer as 0:48:19.160 --> 0:48:23.720 a model started to emerge, as well as digitally native brands, 0:48:23.840 --> 0:48:25.759 and I felt like it was a perfect time in 0:48:25.800 --> 0:48:29.759 the marketplace to start a company like send Rev. And 0:48:29.840 --> 0:48:33.120 so three years ago, UH, send Rev was launched and 0:48:33.200 --> 0:48:36.760 now we've been growing very rapidly over the past three years. 0:48:37.360 --> 0:48:40.560 UM and actually just closed our Series A, which was 0:48:40.600 --> 0:48:45.799 announced earlier today, Right, Yeah, so a big Series A 0:48:45.880 --> 0:48:49.560 sixteen point seven five million, I believe, So what does 0:48:49.600 --> 0:48:52.680 that allow you to do at this point with that money? 0:48:52.760 --> 0:48:57.080 Where does it go next? It's an incredible set up 0:48:57.120 --> 0:49:01.319 for us to have resources to expand. Up until now, 0:49:01.400 --> 0:49:05.000 we've been run very much in a scrappy bootstrap way, 0:49:05.120 --> 0:49:09.000 and as with every great Silicon Valley startup, the company 0:49:09.040 --> 0:49:12.759 started actually in my garage and basement and it's hard 0:49:12.800 --> 0:49:15.120 to believe that only a year and a half ago 0:49:15.520 --> 0:49:17.719 we moved out into a real space and now we 0:49:17.800 --> 0:49:20.919 have a flagship store in San Francisco UM, as well 0:49:20.920 --> 0:49:24.239 as a big fulfillment center in South San Francisco. But 0:49:24.280 --> 0:49:27.680 the capital really is to allow us to expand both 0:49:27.719 --> 0:49:31.799 our product assortment and expand into other categories beyond the 0:49:31.840 --> 0:49:36.000 handbag category, as well as grow geographically. We've shipped to 0:49:36.160 --> 0:49:39.000 over two hundred countries globally and we're doing a big 0:49:39.000 --> 0:49:43.480 expansion in Asia UM and that's a huge area of 0:49:43.520 --> 0:49:46.680 opportunity for us from a growth perspective. And we're also 0:49:46.719 --> 0:49:50.040 growing partnerships. We've launched partnerships with Neem and Marcus, with 0:49:50.120 --> 0:49:54.040 North Trum as well as recently with Apple stores. Globally, 0:49:54.440 --> 0:49:57.240 we're in some of the top Apple stores around the world, 0:49:57.320 --> 0:50:02.040 including Hong Kong. I have see Singapore, Orchard wrote, Paris, London, 0:50:02.120 --> 0:50:05.440 et cetera. Uh So, we are starting to establish ourselves 0:50:05.440 --> 0:50:09.719 as a global brand, which is very, very exciting. So 0:50:09.880 --> 0:50:12.480 and just part of that expansion Coral ultimately, and one 0:50:12.480 --> 0:50:14.759 of the conversations we've been having about is, you know, 0:50:14.840 --> 0:50:17.279 do companies still want to go public at some point? 0:50:17.320 --> 0:50:20.120 Like what's the long game for you folks as you 0:50:20.200 --> 0:50:24.279 grow the business developed partnerships. Just got about forty seconds left. Yeah, 0:50:24.320 --> 0:50:27.320 that's a great question, you know. I think at Stanford 0:50:27.400 --> 0:50:29.960 one of the things that I was very inspired by 0:50:30.160 --> 0:50:34.200 was this idea to really put away the fear, put 0:50:34.200 --> 0:50:36.440 away the caution, put caution to the wind, and just 0:50:36.600 --> 0:50:39.400 go for it. And I think when I made the 0:50:39.440 --> 0:50:42.280 decision to start this company, it was very much about 0:50:42.320 --> 0:50:46.279 going big and disrupting the luxury goods industry and establishing 0:50:46.280 --> 0:50:49.880 a global iconic brand. And so that's what we're absolutely 0:50:49.920 --> 0:50:52.840 set out to do, which is a very exciting and 0:50:53.160 --> 0:50:56.840 we have an amazing institutional investor that backing us in 0:50:57.000 --> 0:50:59.319 all the right ingredients to take the company to the 0:50:59.360 --> 0:51:05.759 next level. Al Right, well, congratulations on the big round. 0:51:05.880 --> 0:51:08.680 We're excited to see what happens. X. Have you back 0:51:09.080 --> 0:51:12.560 to talk about more success? Coral Chung NBA eleven from 0:51:12.600 --> 0:51:23.319 here at the Sanford Graduate School of Business. All right, 0:51:23.400 --> 0:51:27.080 well that is the Stanford fight song. And we're here 0:51:27.080 --> 0:51:30.480 at the number one business school in the country. Delighted 0:51:30.520 --> 0:51:33.200 to have with us. Brian Lowry, he is Senior Associate 0:51:33.200 --> 0:51:36.560 Dean for Academic Affairs at the Graduate School of Business. 0:51:36.800 --> 0:51:38.839 Great to see you, great to see through. All right, 0:51:38.960 --> 0:51:41.719 So you are right in the middle of what I 0:51:41.760 --> 0:51:45.200 think is one of the most fascinating topics right now 0:51:45.360 --> 0:51:48.600 for business people, certainly business students, and that is this 0:51:48.680 --> 0:51:53.720 intersection of society and business, the role that businesses play 0:51:54.320 --> 0:51:58.640 in the world. What's your take at this moment? How 0:51:58.680 --> 0:52:01.640 do you approach your class different maybe in twenty nineteen, 0:52:01.680 --> 0:52:04.640 because it's on everyone's mind. Yeah, thinking the school, it's 0:52:04.680 --> 0:52:07.640 on the school's mind. The really the idea of business 0:52:07.719 --> 0:52:10.279 is shifting, right. It's not just about how do we 0:52:10.400 --> 0:52:13.560 perform well in existing paradigm, So what is the new 0:52:13.560 --> 0:52:16.640 paradigm gonna be? And so we really hear are about 0:52:16.640 --> 0:52:19.640 helping our students um become prepared for this new world 0:52:19.680 --> 0:52:22.480 to participate in it. And the shape the rules that 0:52:22.520 --> 0:52:24.640 are gonna come into play. Right. So the things are 0:52:24.719 --> 0:52:26.480 changing and we really want our students to be prepared 0:52:26.480 --> 0:52:28.319 for that change. Yeah, I do wonder about what they 0:52:28.360 --> 0:52:30.560 see as their role because we feel like, you know, 0:52:30.600 --> 0:52:32.719 our policymakers have failed us in kind of you know, 0:52:32.760 --> 0:52:36.600 bringing about change, necessary change, whether it's inequalities in our society, 0:52:36.880 --> 0:52:39.520 whether it's climate change. What are the kind of conversations 0:52:39.520 --> 0:52:41.480 you're having with students about what they want to know 0:52:41.520 --> 0:52:44.920 about because they're preparing for going out into the corporate world. Right. 0:52:44.960 --> 0:52:48.719 So our students recognize that the distinction between private industry 0:52:48.719 --> 0:52:52.200 and the public civil society world is that that distance 0:52:52.280 --> 0:52:55.160 is shrinking, and so they really care a lot about 0:52:55.200 --> 0:52:58.000 these big social issues and we're trying and prepare them 0:52:58.200 --> 0:53:00.400 to engage in an effective way. So what they really 0:53:00.480 --> 0:53:03.000 think a lot about is how as a business leader, 0:53:03.040 --> 0:53:06.440 would I interact productively with government? Right? How do I 0:53:06.480 --> 0:53:09.000 think about civil society? How do I think about issues 0:53:09.040 --> 0:53:12.040 like privacy? Right? So our students really are bringing those 0:53:12.040 --> 0:53:14.480 concerns to the classroom. They're asking those kind of questions, 0:53:14.719 --> 0:53:17.880 and the faculty are more and more responding in ways 0:53:17.920 --> 0:53:20.880 that allow the students to go out there and become 0:53:21.000 --> 0:53:22.839 a different type of leader. I believe you know, for 0:53:22.880 --> 0:53:26.680 a long time, it feels like a business school curriculum 0:53:26.719 --> 0:53:29.799 would look at a lot of what we talk about 0:53:29.840 --> 0:53:33.520 now is sort of soft skills. And there's a great, uh, 0:53:33.600 --> 0:53:35.319 sort of nickname for one of the classes that you 0:53:35.320 --> 0:53:39.000 guys teach here. It's called touchy feely. Uh. Interpersonal Dynamics 0:53:39.120 --> 0:53:41.480 is I believe the actual name of the course. This 0:53:41.600 --> 0:53:44.279 is something you've been doing for a long time. It 0:53:44.360 --> 0:53:47.000 feels like you were ahead of the curve, to say 0:53:47.000 --> 0:53:49.239 the least. But how do you teach it? Like, what 0:53:49.239 --> 0:53:52.000 what does that actually look like? When you're teaching people 0:53:52.000 --> 0:53:55.400 to essentially be for lack of better humans? Huh. So 0:53:55.440 --> 0:53:57.040 what we do is we give people the opportunity to 0:53:57.040 --> 0:53:59.680 practice right. So it's not I mean, we all know 0:53:59.760 --> 0:54:01.839 how to be human beings at least I hope so, right, 0:54:01.920 --> 0:54:09.160 and so we anyway, but the head so we put 0:54:09.200 --> 0:54:11.719 them in groups, and this is the group is really 0:54:11.719 --> 0:54:13.640 where a lot of the work happens. We give them 0:54:13.640 --> 0:54:16.319 the opportunity to be open and honest with each other, 0:54:16.360 --> 0:54:19.160 like we often in life don't have many opportunities to 0:54:19.160 --> 0:54:21.239 get real feedback, Right, how am I showing up? How 0:54:21.320 --> 0:54:23.480 is it affecting you? And our students have the chance 0:54:23.520 --> 0:54:26.279 to really open up and engage with each other, get 0:54:26.320 --> 0:54:30.719 hard feedback. Sometimes there's often tears, right, because there's this 0:54:31.040 --> 0:54:34.680 deep connection is vulnerability that allows people to make sense 0:54:34.760 --> 0:54:37.040 of themselves in a different way and for many people, 0:54:37.480 --> 0:54:42.000 um they'd say epiphany to see themselves and to see 0:54:42.000 --> 0:54:44.120 how they are being responded to about others. It really 0:54:44.160 --> 0:54:46.600 can be quite transformative the class. I mean, I do 0:54:46.680 --> 0:54:49.960 wonder what Stanford thinks about is their responsibility in terms of, 0:54:50.040 --> 0:54:53.560 you know, creating the next group of corporate leaders, especially 0:54:53.600 --> 0:54:55.719 in an environment where I feel like many think that 0:54:55.760 --> 0:54:59.040 there isn't accountability to thinks, although I gotta say I 0:54:59.080 --> 0:55:02.719 feel like the headline some account there today. But I 0:55:02.760 --> 0:55:05.919 do wonder, you know what you see as your role. Yeah, 0:55:06.160 --> 0:55:08.320 I think when we talk about leaders now and especially 0:55:08.360 --> 0:55:10.240 a town of leaders that we bring here these people, 0:55:10.360 --> 0:55:12.880 the students are incredible, right, They've done incredible things, and 0:55:12.920 --> 0:55:15.440 we bring them here to leverage what they've done and 0:55:15.480 --> 0:55:17.440 to improves they can go out and have an effect 0:55:17.440 --> 0:55:19.680 on the world. So I think it's really critical and 0:55:19.719 --> 0:55:22.960 we really impress upon them the importance of being concerned 0:55:22.960 --> 0:55:25.799 about how their actions not affect only their career, but 0:55:25.920 --> 0:55:28.120 the other people. So when they make decisions and these 0:55:28.160 --> 0:55:32.359 from these positions of power, leaders affect many others lives, right, 0:55:32.400 --> 0:55:34.880 and so not losing side of the effect they have 0:55:34.960 --> 0:55:37.359 on others as a critical part of what we really 0:55:37.400 --> 0:55:40.160 try to push here for students. They're on the one side, 0:55:40.200 --> 0:55:43.000 you have humanity, but you also have technology, you know 0:55:43.200 --> 0:55:46.399 here in Silicon Valley. And it also feels like we're 0:55:46.440 --> 0:55:50.279 asking really big questions about the role of technology. Uh, 0:55:50.320 --> 0:55:53.200 you know your deed. Your boss told us earlier that 0:55:53.440 --> 0:55:56.200 Washington seemed very far away when he got here twenty 0:55:56.280 --> 0:56:00.360 years ago. It's pretty close now at least Uh philosophically 0:56:00.600 --> 0:56:05.319 and uh and figuratively. How does technology help instead of 0:56:05.400 --> 0:56:07.799 hinder your goals? It's a good question. So I think 0:56:07.800 --> 0:56:10.160 of technology obviously, it's simply a tool right there in 0:56:10.200 --> 0:56:13.360 the end, it's a tool and service of humanity, and 0:56:13.400 --> 0:56:15.799 so I think it helps our goals When people understand it, 0:56:15.840 --> 0:56:17.680 is such when they say, like, what are we trying 0:56:17.719 --> 0:56:21.840 to achieve? Like, so if we're trying to reduce, for example, loneliness, 0:56:21.920 --> 0:56:25.680 there's a sense that there's an increasing separation among people. 0:56:25.800 --> 0:56:28.080 Independent of all the technology that we have, there's still 0:56:28.120 --> 0:56:31.080 something going on that people aren't connecting. And the way 0:56:31.080 --> 0:56:35.399 we use technology has maybe increased that or um been 0:56:35.400 --> 0:56:37.160 a part of that. But we can also think about 0:56:37.160 --> 0:56:39.440 how we might use that tool to produce a different outcome. 0:56:39.640 --> 0:56:42.239 Right when we think deeply about the role of the 0:56:42.280 --> 0:56:44.120 tool and not loose sight of it as a tool, 0:56:44.120 --> 0:56:46.520 then we can achieve all sorts of positive outcomes as well. 0:56:46.800 --> 0:56:49.160 What does your student base just quickly, just got about 0:56:49.160 --> 0:56:51.319 forty seconds think about technology, because I think of the 0:56:51.360 --> 0:56:55.400 privacy concerns, we see bias in a I I mean, 0:56:55.440 --> 0:56:57.359 there's a lot of problems out here. Do they think 0:56:57.480 --> 0:57:00.479 ultimately technology is good or it can be better just quickly, 0:57:00.880 --> 0:57:03.640 very quickly? I think they're optimistic, but we also now 0:57:03.719 --> 0:57:06.719 see clearly the potential problems associated with technology and we 0:57:06.760 --> 0:57:09.719 need to solve for that. Yeah, we're gonna leave it there. 0:57:09.760 --> 0:57:13.319 Brian Lowry, great to catch up with you. Congratulations on 0:57:13.360 --> 0:57:16.400 being number one again and you really are at the 0:57:16.480 --> 0:57:18.800 core of I think what all of us are talking 0:57:18.840 --> 0:57:23.400 about as business people, as business leaders, and certainly politicians. 0:57:23.480 --> 0:57:26.200 It is on the minds of this next generation coming up. 0:57:26.320 --> 0:57:30.160 The interesting to see what the product of this phenomenal 0:57:30.200 --> 0:57:33.480 campus teaches us as they go forward. As we said, 0:57:33.520 --> 0:57:36.120 we want to get right to some students. Stanford Graduate 0:57:36.160 --> 0:57:38.800 School of Business students. Uh, and we have two with us. 0:57:38.800 --> 0:57:41.200 They are both in their second year here at Stanford. 0:57:41.240 --> 0:57:44.440 Emily Nounez Cavanets and Polka Aggarwal are both as I 0:57:44.520 --> 0:57:47.160 mentioned in the program, So nice to have you here 0:57:47.160 --> 0:57:49.600 with us. We love getting all of the different perspectives 0:57:49.920 --> 0:57:52.720 why Stanford and Emily, Emily, let me start with you, Well, 0:57:52.720 --> 0:57:55.440 thank you so much for having us. I for me, 0:57:55.600 --> 0:57:58.200 I knew Stanford really was the best business school in 0:57:58.240 --> 0:58:02.160 the world and is, and I know it's really so 0:58:02.240 --> 0:58:06.800 well positioned for leaders who want to become really strong 0:58:06.880 --> 0:58:10.919 leaders and fields like entrepreneurship, innovation and technology leadership wasn't 0:58:10.920 --> 0:58:13.160 a really important thing. How about for you, Polke it? Well, 0:58:13.160 --> 0:58:15.600 so I'm an engineer by background, and so I remember this. 0:58:15.680 --> 0:58:20.280 We both have dads that super because I didn't invention 0:58:20.280 --> 0:58:23.000 competition in undergrad and they asked me what's your business plan? 0:58:23.400 --> 0:58:26.040 And I said word of mouth, And so I realized 0:58:26.080 --> 0:58:28.280 I think business would be actually pretty beneficial for me 0:58:28.760 --> 0:58:31.120 and in entrepreneurship as well. So that's that's sort of 0:58:31.120 --> 0:58:33.320 what led the spark to do. My m B A 0:58:33.880 --> 0:58:37.000 and so Emily, tell us about your company, Sword and Plow, 0:58:37.080 --> 0:58:40.240 because it's such a cool concept that everybody can understand. 0:58:40.280 --> 0:58:42.680 It comes in part from what you did before you 0:58:42.720 --> 0:58:45.360 were in the army, and tell us about the inspiration 0:58:45.400 --> 0:58:48.800 and what it is. Former U. S. Army Captain among 0:58:48.840 --> 0:58:54.000 other accolades, thank you. So eight years ago I started 0:58:54.240 --> 0:58:56.680 a social enterprise called Sword and Plow with my sister 0:58:56.960 --> 0:59:00.440 and we work with better known American manufacturers US across 0:59:00.480 --> 0:59:04.000 the country to make bags and accessories UM such as 0:59:04.040 --> 0:59:06.320 this necklace which is made out of a repurpose of 0:59:06.360 --> 0:59:10.760 a bag next year, so this is one. And then 0:59:11.480 --> 0:59:14.680 we also have leather goods and it's just military grade 0:59:14.720 --> 0:59:16.800 materials from what I understand, some of it, yes, some 0:59:16.880 --> 0:59:20.400 of it. So we incorporate repurpose military surplus UM like 0:59:20.440 --> 0:59:26.120 this lining as well as the fifty caliber machine UM 0:59:26.280 --> 0:59:29.400 shells which are in all of our jewelry and they're 0:59:29.400 --> 0:59:32.520 all made by veteran known American manufacturers, and we donate 0:59:32.560 --> 0:59:36.200 ten percent of our profits to veteran nonprofit organizations. It's 0:59:36.200 --> 0:59:37.880 an amazing I mean, we've been looking at some of 0:59:37.920 --> 0:59:40.560 the products. It's really incredible. So Polk, it give us 0:59:40.560 --> 0:59:43.120 a sense of what it's like to be a student here, 0:59:43.280 --> 0:59:46.960 especially at a time where there's a lot expected and 0:59:47.000 --> 0:59:50.080 a lot of big questions about businesses right now. I 0:59:50.120 --> 0:59:51.760 think we would all love to sort of be in 0:59:51.800 --> 0:59:56.320 your classroom in some ways because asking big questions. How 0:59:56.320 --> 0:59:59.640 do you characterize it? Yeah, what's was actually really interesting 0:59:59.680 --> 1:00:02.560 about Stanford is that they really bring out the authenticity 1:00:02.640 --> 1:00:05.280 within you, and all the education that's given you is 1:00:05.320 --> 1:00:08.200 sort of surrounded around who you are and staying true 1:00:08.240 --> 1:00:11.080 to yourself, but then also being good at business. And 1:00:11.240 --> 1:00:12.760 the coolest thing is not only are you in the 1:00:12.800 --> 1:00:15.280 business school at Stanford, but you're also part of Stanford 1:00:15.320 --> 1:00:18.080 as a whole, and there's amazing classes and things outside 1:00:18.080 --> 1:00:20.560 as well they can use to supplement your education. That's 1:00:20.560 --> 1:00:22.680 what's interesting. We heard that from some of the administration, 1:00:22.760 --> 1:00:24.760 from the dean of the school, that the importance of 1:00:24.880 --> 1:00:26.840 it's not just about the Graduate School of Business but 1:00:27.040 --> 1:00:29.480 integrating it among all of the other schools that are 1:00:29.520 --> 1:00:32.280 here and getting kind of a more holistic education to 1:00:32.320 --> 1:00:35.320 some extent. Right, definitely, I feel the same way. The 1:00:35.360 --> 1:00:38.520 two most interesting classes that I'm taking or have taken 1:00:38.560 --> 1:00:42.000 the past are Making Social Ventures Happen, which is an 1:00:42.000 --> 1:00:44.560 amazing way to learn more about systems thinking and drawn 1:00:44.640 --> 1:00:47.720 my experiences as a social entrepreneur. But then right now 1:00:47.760 --> 1:00:49.840 I'm taking a class across the street at the law 1:00:49.880 --> 1:00:53.600 school about regulating AI and it has just been fascinating. 1:00:53.640 --> 1:00:56.240 And the access that we have to cutting edge thinkers 1:00:56.280 --> 1:01:00.240 in the tech field is um is amazing. Until what 1:01:00.280 --> 1:01:04.160 do you think about the impact of the NBA on 1:01:04.160 --> 1:01:07.760 on the choices that you make going from here? Like, 1:01:07.880 --> 1:01:09.400 what do you do next? Not to put too much 1:01:10.080 --> 1:01:14.400 because you've got a company to right, Yes, yeah, exactly. 1:01:14.440 --> 1:01:17.320 I started a recruiting agency for the blockchain space before 1:01:17.320 --> 1:01:20.440 business school, and so I'm thinking of going to Singapore. 1:01:20.760 --> 1:01:22.959 The biggest thing about Stanford is it opens so many 1:01:23.000 --> 1:01:25.160 more doors, and so the first thing that people think 1:01:25.200 --> 1:01:27.080 about is, oh my gosh, there's now so many options. 1:01:27.120 --> 1:01:29.520 Have to not think about which option to consider, and 1:01:29.600 --> 1:01:31.800 so that takes two years on its own, and so 1:01:31.800 --> 1:01:33.680 I think I'm closer towards the end of that process. 1:01:33.720 --> 1:01:35.120 But I think I want to go to Singapore and 1:01:35.120 --> 1:01:38.840 start a company there. Well, and it's interesting too because 1:01:38.960 --> 1:01:41.920 I do think about some of the really important issues 1:01:41.960 --> 1:01:44.560 that we spend a lot of time talking about UM 1:01:44.640 --> 1:01:47.720 and how the graduate programs, including Stanford, are bringing them into, 1:01:47.760 --> 1:01:50.560 whether it's climate change, whether it's diversity. Tell me a 1:01:50.600 --> 1:01:53.040 little bit about, you know, some of the discussions that 1:01:53.120 --> 1:01:55.080 you want to be having because you think it's obviously 1:01:55.080 --> 1:01:56.600 going to be something that you're gonna be carrying with 1:01:56.680 --> 1:01:58.720 you once you leave. Tell me a little bit about 1:01:58.760 --> 1:02:00.880 that pocket. Yeah. One of the biggest things for me 1:02:00.920 --> 1:02:03.360 is I think that culture within a company is going 1:02:03.400 --> 1:02:05.800 to become more and more important the more we go 1:02:05.920 --> 1:02:08.720 from data and information can all be done by computers. 1:02:09.040 --> 1:02:10.919 The aspect that people are going to bring that's gonna 1:02:10.920 --> 1:02:12.280 be different is who they are and what kind of 1:02:12.320 --> 1:02:14.640 person they are. And we're seeing more of that, you know, 1:02:14.680 --> 1:02:17.320 coming from the manufacturing just people are machines to now 1:02:17.720 --> 1:02:19.920 big companies are focusing on their people culture and these 1:02:19.960 --> 1:02:22.080 new roles are coming up, and so I really want 1:02:22.080 --> 1:02:23.160 to be part of that, and I think I want 1:02:23.200 --> 1:02:25.040 to do a bit of that in the recruiting space 1:02:25.160 --> 1:02:28.120 or the people operations space in Singapore. And so Emily, 1:02:28.800 --> 1:02:31.480 do you plan to expand your company even further, another 1:02:31.600 --> 1:02:34.960 company on the horizon. What do you have? Yes, well, 1:02:35.040 --> 1:02:38.160 I've definitely been busy and UM Sort and Plow has 1:02:38.200 --> 1:02:41.320 a lot of exciting things coming up, including a really 1:02:41.400 --> 1:02:45.720 large collaboration with a publicly traded accessors company coming out 1:02:45.760 --> 1:02:48.560 this Veterans Day and being here at Stanford has just 1:02:48.640 --> 1:02:51.840 been incredible to really dive deeper into social entrepreneurship and 1:02:51.920 --> 1:02:56.320 learn about other fields to like technology and increasingly some 1:02:56.360 --> 1:02:59.480 of the issues around UM, cultural and social issues that 1:02:59.560 --> 1:03:01.680 these company. He's a wrestling I feel like such a 1:03:01.680 --> 1:03:05.840 low achievers. I don't know, I don't know. Anyway, We 1:03:05.880 --> 1:03:08.240 wish you both good luck and thank you so much 1:03:08.280 --> 1:03:10.640 for talking. Uh to ask, I have a quick question 1:03:10.680 --> 1:03:14.080 five seconds each. Do you think politicians and CEO should 1:03:14.120 --> 1:03:19.640 use social media to communicate? Well quickly, I think as 1:03:19.680 --> 1:03:22.240 a social entrepreneurs social media has been a great way 1:03:22.280 --> 1:03:26.040 to get our message and take a y people are 1:03:26.040 --> 1:03:28.760 looking on social media, so if you want to communicate, 1:03:28.800 --> 1:03:32.960 social media is an option alright. Good Emily nunyez Kevanez 1:03:33.040 --> 1:03:36.240 and polkt Agarwall two second years here at the number 1:03:36.280 --> 1:03:39.120 one business school in the country. Thank you so much. Well, 1:03:39.120 --> 1:03:43.200 our next guest is a Stanford alum class of ninety nine, 1:03:43.320 --> 1:03:45.840 got his MBA. Then he gave the commencement speech last year. 1:03:45.880 --> 1:03:48.760 He's the head of the leading global brewer. It's a 1:03:48.800 --> 1:03:52.360 big name. A b in BEV. We're talking about Carlos Brito. Yeah, 1:03:52.440 --> 1:03:55.640 a great conversation with him and his story, his journey. 1:03:55.760 --> 1:03:59.040 Here is where we started, and it's a good one. 1:03:59.080 --> 1:04:02.000 Take a listen. When I was applying to business school, 1:04:02.600 --> 1:04:05.280 I was in Brazil. Brazil was a very close country 1:04:05.320 --> 1:04:07.960 in those days. Everything was difficult. Nobody would travel abroad, 1:04:08.040 --> 1:04:11.040 didn't send the money abroad to pay for fees too. 1:04:11.520 --> 1:04:13.640 To apply to a college in the US was a 1:04:13.680 --> 1:04:15.560 big deal. We had to know somebody in the US 1:04:15.600 --> 1:04:19.760 and all that. So I started researching and back then 1:04:20.480 --> 1:04:23.360 Business Week had a ranking of business schools and Standford 1:04:23.560 --> 1:04:27.320 number one. So I said, my looked at the magazine. Yeah, yeah, yeah, 1:04:27.880 --> 1:04:30.000 that that was our bible and all the ranking. So 1:04:30.160 --> 1:04:31.959 I looked at it and said, hey, yeah, I'm gonna 1:04:31.960 --> 1:04:34.400 apply to the schools, but Standford for sure, it's number one. 1:04:34.800 --> 1:04:37.000 And at the time, Stanford would take only one Brazilian 1:04:37.040 --> 1:04:39.120 per year, and he did it. Did that through the 1:04:39.200 --> 1:04:42.520 eighties through the nineties, and uh, I said, oh, we'll apply. 1:04:42.880 --> 1:04:45.200 Long story short, I was accepted and then I had 1:04:45.240 --> 1:04:47.400 to fight for scholarship because my my parents didn't have 1:04:47.480 --> 1:04:49.800 that kind of money to send me to school. So 1:04:50.760 --> 1:04:52.960 and then I went to Standford Business School and uh, 1:04:53.160 --> 1:04:55.680 it changed my life. You gotta talk about the financing 1:04:55.720 --> 1:04:58.640 to get there. Well, it was interesting because I got 1:04:58.960 --> 1:05:03.240 a scholarship from the Rotary Association, but they didn't cover Stanford, 1:05:03.800 --> 1:05:06.240 so at the end Rotary Club. So at the end 1:05:06.280 --> 1:05:08.600 when I went, when I got accepted Stanford, in the 1:05:08.680 --> 1:05:11.680 last round of acceptances, I tried to change the scholarship. 1:05:11.760 --> 1:05:14.800 They said, no, we don't cover Stanford. So long story short. 1:05:14.840 --> 1:05:16.840 There was a businessman in Brazil that had a boutique 1:05:16.880 --> 1:05:20.720 investment bank called Georgia. Paulo Lemon, one of the top 1:05:20.760 --> 1:05:23.640 guys today in the world of business. And I knew 1:05:23.680 --> 1:05:26.880 that he had a bank that would give loans to 1:05:27.080 --> 1:05:30.280 some of the bank employees that were pursuing an NBA abroad. 1:05:30.400 --> 1:05:32.439 I was not one of them. I worked for Shell Oil. 1:05:33.200 --> 1:05:36.160 But because I was the Brazilian accepted Stanford that year, 1:05:36.240 --> 1:05:38.640 decided to make my case and he decided to pay 1:05:38.720 --> 1:05:41.680 for my first year, not out of the bank pockets, 1:05:41.720 --> 1:05:44.000 but out of his own pocket because I was not 1:05:44.000 --> 1:05:46.160 an employee of the bank. So I went to Stanford 1:05:46.200 --> 1:05:49.360 because of him. And uh, it was interesting because he 1:05:49.440 --> 1:05:52.680 asked three things of me when I went. It said, first, 1:05:52.760 --> 1:05:56.000 keep in touch. Second, before you accept any full time 1:05:56.080 --> 1:05:58.560 job offer when you're done with Stanford, talked to me. First, 1:05:58.920 --> 1:06:02.120 no obligation to come for me. And third, helps somebody 1:06:02.400 --> 1:06:04.480 as I'm helping you in the future if you can't 1:06:04.640 --> 1:06:07.160 pay it for it. Yeah, So that was it. So 1:06:07.200 --> 1:06:10.760 I always say that his financial generosity got me to Stanford, right, 1:06:11.000 --> 1:06:14.360 But he was this time and commitment to me that 1:06:14.520 --> 1:06:17.520 got me through Stafford, because that's a different way to 1:06:17.600 --> 1:06:20.600 go to school in many ways. You know, some people 1:06:20.640 --> 1:06:22.480 have their parents, you know, sort of lording over them, 1:06:22.480 --> 1:06:24.800 but other people, you know, they're just sort of left 1:06:24.800 --> 1:06:27.480 to their own devices. Sort of having him sitting on 1:06:27.560 --> 1:06:30.200 your shoulder must have given you a different perspective exactly 1:06:30.240 --> 1:06:32.200 because he was my sponsor for the first year. Then 1:06:32.200 --> 1:06:33.640 I had to figure out how to pay for the 1:06:33.720 --> 1:06:37.480 second year, which was also part of his education in 1:06:37.600 --> 1:06:40.680 terms of me not getting evenything for free. So you asked, 1:06:40.720 --> 1:06:42.720 you got the scholarship for the first year, but guess 1:06:42.840 --> 1:06:45.320 what second year? You have to figure it out. So 1:06:45.440 --> 1:06:47.800 I had a good summer job. I also had got 1:06:47.800 --> 1:06:50.160 a scholarship from the Brazilian government and I was able 1:06:50.200 --> 1:06:52.760 to conclude the second year. So that was part of 1:06:52.800 --> 1:06:55.240 the education. Now, talking about the education at Stanford, what 1:06:55.320 --> 1:06:57.120 that experience it was like? You know, for me, it 1:06:57.240 --> 1:06:59.360 transformed the way I view the world. It was a 1:06:59.440 --> 1:07:02.080 very international, a place in the Pacific room, so very 1:07:02.200 --> 1:07:05.480 open to the world, even in those days. It was 1:07:05.520 --> 1:07:08.160 also a place where I learned the veil of talent. 1:07:08.760 --> 1:07:11.439 I was surrounded by the best people in the world 1:07:11.520 --> 1:07:14.160 pretty much at that age group, with that kind of 1:07:14.160 --> 1:07:17.240 orientation businesses, and I had to op my game. I 1:07:17.360 --> 1:07:20.520 used to be the top students, that always top of 1:07:20.560 --> 1:07:22.600 my class in Brazil, and I went to Stanford, I 1:07:22.720 --> 1:07:24.760 was not top my class. I had to work harder 1:07:25.280 --> 1:07:28.200 elevate my bar And what I got from Stanford was 1:07:28.280 --> 1:07:33.760 that in life it's about first who Then what I 1:07:34.000 --> 1:07:38.240 learned that talented people want talented, very talented guy or 1:07:38.240 --> 1:07:42.320 a person is worth ten very good people, but it's 1:07:42.360 --> 1:07:44.360 hard to find. All right, So let's talk about your 1:07:44.360 --> 1:07:48.120 consumer a little bit. It's an interesting time to say 1:07:48.160 --> 1:07:51.200 the least in the world. You have a global view. Uh, 1:07:51.360 --> 1:07:55.520 let's go straight to China, you know where business it's 1:07:55.520 --> 1:07:59.320 a huge business. And yet there are concerns about the 1:07:59.440 --> 1:08:02.120 Chinese consumer right now, what do you see? And that 1:08:02.160 --> 1:08:04.600 played out in your latest earnings and and investors were 1:08:04.680 --> 1:08:07.240 well spooked by it. No, no, no, But the China 1:08:07.320 --> 1:08:09.480 for us has been an amazing story. And the thing 1:08:09.560 --> 1:08:12.120 is that many years ago we decided to focus on 1:08:12.160 --> 1:08:15.280 the premium and super premium side of the market in China. 1:08:15.880 --> 1:08:17.879 And if you look at China, you cannot talk averages. 1:08:18.320 --> 1:08:21.200 You have to go by segment. Interesting because such a 1:08:21.320 --> 1:08:23.280 huge market, right It's the biggest market in the world 1:08:23.320 --> 1:08:26.360 for beer, for most consumer goods. And when you go 1:08:26.760 --> 1:08:29.400 segment by segment, what you see is that this year 1:08:29.479 --> 1:08:32.760 there is industry declining China, but that's on average. But 1:08:32.840 --> 1:08:35.320 if you go to premium superpremum, they're growing and that's 1:08:35.360 --> 1:08:38.360 where the growth is in the margins are in China. 1:08:38.439 --> 1:08:40.760 For example, Budweis is the number one premium beer in 1:08:40.880 --> 1:08:46.280 China by far. In Corona Story Garden lead the super 1:08:46.320 --> 1:08:48.840 premium segment by far. Again so we lead both segments 1:08:48.880 --> 1:08:51.479 where the margins are and where the growth is. So 1:08:51.800 --> 1:08:54.040 that for us, that's why our business in China, our 1:08:54.080 --> 1:08:57.960 profitsibility is way higher than any of our competitors in China, 1:08:58.000 --> 1:09:00.559 even if you add them together. This bite us being 1:09:00.640 --> 1:09:04.000 number three invited, but we're number one and profitability even 1:09:04.040 --> 1:09:06.680 if you had the next four. So that's because of 1:09:06.760 --> 1:09:10.120 the brands we have, the premium, dague command, the consuming 1:09:10.200 --> 1:09:13.439 sides we've always had, and the things we offer given 1:09:13.439 --> 1:09:15.519 the consuming sides were to help me out here because 1:09:15.560 --> 1:09:17.400 I thought in terms of your latest earnings report, you 1:09:17.479 --> 1:09:20.439 did talk about consumer demand below in the United States 1:09:20.479 --> 1:09:23.439 and in China, and from some other makers, some beverage makers, 1:09:23.479 --> 1:09:25.880 we've seen that they've talked about increased demand in China. 1:09:25.960 --> 1:09:28.519 So I guess we're trying to reconcile what's going on 1:09:28.600 --> 1:09:31.400 in China right now. Well in China right now, for sure, 1:09:31.439 --> 1:09:35.240 there was some deceleration but still growing. You know, at 1:09:35.280 --> 1:09:39.880 six the whole economy and in our business, nightlife is 1:09:39.920 --> 1:09:44.719 a very important channel where Budweiser dominates as the most 1:09:44.760 --> 1:09:48.040 of the share in that nightlife got the beat a 1:09:48.120 --> 1:09:54.240 bit um the emphasize given some of the celebrations in China, 1:09:54.920 --> 1:09:57.000 So that happens from time to time, so it's not 1:09:57.160 --> 1:09:59.280 kind to time that the nightlife goes down a little 1:09:59.280 --> 1:10:02.679 bit comes back up. So this quarter was a quarter 1:10:02.960 --> 1:10:05.720 in which nightlife cames back, came came down a little bit, 1:10:06.120 --> 1:10:09.400 and that's that impacts botherwise, which is a main Brandon chime. 1:10:09.479 --> 1:10:13.479 So investors, this is something temporary. So investors overreacted that 1:10:13.520 --> 1:10:15.439 in your view, because they saved something like twenty billion 1:10:15.439 --> 1:10:17.840 dollars off your market cap. So is that an overreaction? 1:10:17.880 --> 1:10:19.960 You know, like, how do you how do you read that? 1:10:20.000 --> 1:10:22.360 As somebody who runs this massive company, you see the 1:10:22.400 --> 1:10:25.080 global trends, you look longer term, how do you read 1:10:25.160 --> 1:10:27.439 something like that? Our company is very different than respect 1:10:27.520 --> 1:10:30.559 in that we have a control group. We're a public company, 1:10:30.600 --> 1:10:32.200 but we'll have a control group, and because of that, 1:10:33.000 --> 1:10:35.720 we have the luxury of looking at the short term, 1:10:35.880 --> 1:10:38.200 but most of all looking at the long term. So 1:10:38.560 --> 1:10:41.400 we're not shy of investing the short term even when 1:10:41.439 --> 1:10:45.080 the cycle is negative for some sort, because we're investing 1:10:45.240 --> 1:10:47.960 for next year's, next five years, next ten years. So 1:10:48.040 --> 1:10:49.640 we've always been that kind of company. We've been in 1:10:49.680 --> 1:10:53.080 business half for thirty years, and we've had situations in 1:10:53.120 --> 1:10:55.679 where there was a disconnect in which the short term 1:10:56.040 --> 1:10:59.240 sometimes there's some pressures, most of which we anticipated, by 1:10:59.240 --> 1:11:00.720 the way, at the beginning of the year that the 1:11:00.800 --> 1:11:03.040 third quarter would be on the pressure. But so what 1:11:03.240 --> 1:11:07.360 this is one quarter? And that was Carlos Brito's CEO 1:11:07.600 --> 1:11:09.439 of A B n BEV. We caught up with him 1:11:09.520 --> 1:11:11.360 just before we left New York to head out to 1:11:11.439 --> 1:11:22.960 Stanford roc Journal. But you let me drive. Oh no, no, no, no, home, honey, please, 1:11:23.120 --> 1:11:26.479 I'll do the riding. Drivel ext me. I want to drive, 1:11:29.240 --> 1:11:42.320 Just drive, baby, the questions trying. This is the Drive 1:11:42.400 --> 1:11:47.360 to the Globe Community. Thanks, we'll drying us on Bloomberg Radio, 1:11:49.840 --> 1:11:53.000 and it is time for the Drive to the Clothes 1:11:53.080 --> 1:11:55.160 and we're joined by Nadine Term and she has found 1:11:55.160 --> 1:11:58.720 her CEO and c i O of Sulstein Capital. She 1:11:58.800 --> 1:12:01.960 joins us on the phone from Francisco and very much 1:12:02.120 --> 1:12:04.760 of a piece with the theme of this show. She's 1:12:04.760 --> 1:12:07.760 a graduate of the Stanford Graduate School of Business, which, 1:12:07.880 --> 1:12:09.840 by the way, you might have heard, it's the number 1:12:09.880 --> 1:12:12.000 one business school in America. And Carol Math and I 1:12:12.080 --> 1:12:15.760 are here on campus. Nadine It's too bad that you 1:12:15.800 --> 1:12:18.080 know you're working so hard, because otherwise you could have 1:12:18.160 --> 1:12:20.800 class outside with us. It's great to have you with us. 1:12:22.520 --> 1:12:27.040 Way they Unfortunately, I couldn't release the details of the 1:12:27.040 --> 1:12:29.840 announcement beforehand, so I drove into the city for work. 1:12:29.960 --> 1:12:34.879 But I'm glad that you're enjoying sunshine. We are, indeed, 1:12:35.200 --> 1:12:38.280 and check out this market environment right now. Tell us 1:12:38.280 --> 1:12:40.760 a little bit about um kind of how you see it, 1:12:40.960 --> 1:12:43.920 because here we are. You know, we hit some records 1:12:43.960 --> 1:12:46.840 again in terms of those major equity averages. What's the 1:12:47.040 --> 1:12:50.800 investment environment look like to you? Sure? I think there's 1:12:50.920 --> 1:12:53.679 a few things to look at, first being earning, second 1:12:53.720 --> 1:12:58.200 being complacency or how investors are positioned, and the third 1:12:58.280 --> 1:13:01.560 would be um, why the market is up today? Right? So, 1:13:01.600 --> 1:13:03.439 I think the first one, if you look at earnings, 1:13:04.160 --> 1:13:06.519 what you have is about um. You know, you only 1:13:06.560 --> 1:13:09.320 have about hundred forty more companies in the SMP five 1:13:09.439 --> 1:13:13.160 hundred report. And while top line growth is positive, earnings 1:13:13.200 --> 1:13:17.640 have been down, especially in energy materials, consumer discretionary financials, 1:13:17.680 --> 1:13:20.240 and infotex. So that's a lot of sectors. So it's 1:13:20.280 --> 1:13:23.000 really a story of haves and have not. So instead 1:13:23.040 --> 1:13:25.240 of looking at just top down how things are going, 1:13:25.560 --> 1:13:27.920 you really have to pull back the onion here all 1:13:27.960 --> 1:13:30.599 the layers to see what's happening. And what you're seeing 1:13:30.680 --> 1:13:34.080 is margins being squeezed, So you know, we're staying long 1:13:34.400 --> 1:13:37.599 things like reads and utilities, which tend to do well 1:13:37.800 --> 1:13:41.400 when GDP growth is slowing. UM and inflation growth and 1:13:41.840 --> 1:13:43.960 up is up and margins are down. So that's one 1:13:44.000 --> 1:13:46.519 thing that we would tell folks to take a look at, 1:13:46.680 --> 1:13:48.920 is like who's winning and why, who might be losing 1:13:48.960 --> 1:13:52.280 and why, and making sure that your position correctly UM. 1:13:52.360 --> 1:13:55.280 And the second is complacency. The if you look at 1:13:55.280 --> 1:13:57.120 the vixed positioning, I think I saw it on top 1:13:57.160 --> 1:14:00.599 Bloomberg News too, there's a kind of a dual story there. 1:14:00.640 --> 1:14:02.400 But you're at one in three years the scores of 1:14:02.520 --> 1:14:05.960 negative one point five. So just like April, just like July, 1:14:06.400 --> 1:14:09.080 investors are really betting on new all time highs in 1:14:09.120 --> 1:14:12.680 the market and lower volatility. So whenever we see a symmetry, 1:14:12.880 --> 1:14:14.920 we tend to look at that and say, Okay, if 1:14:14.960 --> 1:14:16.840 that doesn't come to pass, you probably make a lot 1:14:16.880 --> 1:14:22.360 of money on the other side. Yeah, the whole volatility question, 1:14:22.479 --> 1:14:25.440 I am fascinated. But you know, we'd bring our investors 1:14:25.560 --> 1:14:28.479 the VIX and update on the VIX every day after 1:14:28.560 --> 1:14:31.400 the close of trading. And you know, a twelve handle, 1:14:31.600 --> 1:14:34.880 a thirteen handle, I mean that is unbelievable when you 1:14:35.080 --> 1:14:38.200 think about sort of where we would expect to be 1:14:38.760 --> 1:14:42.400 at this point, how do you square that? You know, 1:14:42.479 --> 1:14:45.560 what what ends up happening is there's not just investors 1:14:45.600 --> 1:14:48.680 and passive investors, but you have machines that are trading momentum. 1:14:49.080 --> 1:14:51.439 And so when things to move up, the momentum is 1:14:51.520 --> 1:14:53.439 to go up. When things go down, momentum can be 1:14:53.560 --> 1:14:56.160 to go down. To be really careful, as an individual 1:14:56.200 --> 1:14:59.439 investor who's betting on found of monels or I'm looking 1:14:59.439 --> 1:15:01.320 to say, well we're is the puck going after today 1:15:01.439 --> 1:15:03.759 or tomorrow, would just say, well, do I really believe 1:15:03.800 --> 1:15:06.080 in that positioning? Like on the flip side of what 1:15:06.160 --> 1:15:08.840 you said, you look at soybeans, the one year Z 1:15:09.080 --> 1:15:12.640 score in terms of CFTC nine commercial net long positioning 1:15:13.040 --> 1:15:16.040 is about two point five. And so what it's also 1:15:16.120 --> 1:15:18.720 saying is like everyone's already bet on the train deal. 1:15:19.280 --> 1:15:21.600 Who know, some beans are going to get bulked. So 1:15:21.760 --> 1:15:24.200 other than that, other than you know, the motility going 1:15:24.240 --> 1:15:27.400 down reaching all new ties. UM. One else right, And 1:15:27.439 --> 1:15:29.559 one of the areas we love the most that's probably 1:15:29.760 --> 1:15:32.240 has been most non consensus till the past week was 1:15:32.280 --> 1:15:36.000 really inflation. So we came on Bloomberg TV and Radio 1:15:36.080 --> 1:15:38.680 talking a little bit about reflation and how to bet 1:15:38.760 --> 1:15:40.760 on that. So talk to us, we want to you know, 1:15:40.880 --> 1:15:42.800 glad to get your market perspective, but tells a little 1:15:42.800 --> 1:15:45.599 bit two about your time here at Stanford and getting 1:15:45.640 --> 1:15:49.000 your m b a. And what that experience was like. Sure, 1:15:49.200 --> 1:15:52.439 I was one of the few female investors coming into school. 1:15:52.520 --> 1:15:54.880 I did take a few years I think six or 1:15:54.920 --> 1:15:57.040 seven working before I came in, so I was at 1:15:57.080 --> 1:15:58.680 a point in my life where I knew what I 1:15:58.720 --> 1:16:00.559 wanted to do. In fact, I had gotten into school 1:16:00.600 --> 1:16:03.519 before I even came UM, but then delayed it for 1:16:03.680 --> 1:16:06.560 three years. So going back was special for me. I 1:16:06.640 --> 1:16:11.000 went there as an undergrad, but I really appreciated the environment. UM. 1:16:11.080 --> 1:16:13.400 Anyone who knows there goes there and really sees the 1:16:13.479 --> 1:16:17.320 love of innovative and entrepreneurial spirit from the faculty, the 1:16:17.400 --> 1:16:20.360 students UM. And I was actually an example of someone 1:16:20.400 --> 1:16:22.960 who started my own firm in an industry where it's 1:16:23.040 --> 1:16:25.160 very rare for women to exist at all, if you 1:16:25.240 --> 1:16:27.760 want to say that, um and I think part of 1:16:27.840 --> 1:16:30.759 the appeal relates to not just all the resources inside 1:16:30.800 --> 1:16:33.640 the university and Stanford Business School, but it's surrounding it. 1:16:33.680 --> 1:16:35.360 A lot of people talk about it, is it luck 1:16:35.400 --> 1:16:37.640 because just because they were in Silion Valley? But did 1:16:37.720 --> 1:16:40.160 they also help build it? So when you're there, it 1:16:40.200 --> 1:16:42.680 does give you a lot of optimism to think big, say, well, 1:16:42.720 --> 1:16:44.400 what can I build? What can I do? How do 1:16:44.560 --> 1:16:46.760 I make a difference? So it was a special time 1:16:46.840 --> 1:16:50.040 for me. Well, and I do wonder you know, given 1:16:50.360 --> 1:16:53.840 your background working in both private equity and you know, 1:16:53.960 --> 1:16:57.240 investing in private and public companies, Nadine, what you make 1:16:57.320 --> 1:16:59.840 of this moment where we are We've talked a lot 1:17:00.000 --> 1:17:02.680 about we work. We're don here from Peloton Tomorrow, which 1:17:02.720 --> 1:17:05.639 is another example of a company where the private marks 1:17:05.680 --> 1:17:07.680 and the public markets maybe had a little bit of 1:17:07.720 --> 1:17:11.160 a disagreement about what a company was worth. What do 1:17:11.280 --> 1:17:13.599 you make of that? As someone who has looked across 1:17:13.680 --> 1:17:17.880 the whole spectrum of investments, you know, it's interesting because 1:17:17.920 --> 1:17:20.120 there's still a lot of private equity folks who are 1:17:20.200 --> 1:17:22.439 doing a lot of roll up your sleeves, work to 1:17:22.560 --> 1:17:26.240 create value, increase EBITDA, increase cash flow, pay now and debt, 1:17:26.600 --> 1:17:28.560 do things like that. But then there was also just 1:17:28.680 --> 1:17:31.360 a lot of money chasing private deals. I mean, if 1:17:31.400 --> 1:17:33.679 you look twenty five years ago, you didn't have public 1:17:33.800 --> 1:17:36.960 company investors going investing pre i p O and you 1:17:37.040 --> 1:17:39.919 saw that from hedge funds and pensions in the last decade, 1:17:40.320 --> 1:17:44.000 as well as a ton of capital from and allocators 1:17:44.120 --> 1:17:46.360 going to private equity because you don't have the mark 1:17:46.439 --> 1:17:49.280 to market risk. So it's I believe that it's very 1:17:49.360 --> 1:17:52.599 understandable and probably expected that when we have a ton 1:17:52.680 --> 1:17:55.320 of money chasing deals, whether they're you know, be a 1:17:55.400 --> 1:17:58.280 market buyout or pre I p O, whether it's you 1:17:58.360 --> 1:18:02.440 know round for five six, you know, series apt of financing, 1:18:02.800 --> 1:18:04.600 what you end up is that there's going to be 1:18:04.680 --> 1:18:07.080 people piling into money in the hope that ghost public 1:18:07.200 --> 1:18:09.400 or taken out, and if it doesn't happen, there's a 1:18:09.439 --> 1:18:13.719 lot of unhappy investors there. Did you just have about 1:18:13.720 --> 1:18:16.320 a minute left here? Um? I'm curious to you about 1:18:16.439 --> 1:18:19.719 running a hedge fund. Uh in this space, I feel 1:18:19.760 --> 1:18:22.599 like hedge funds. We've talked an awful lot about under 1:18:22.640 --> 1:18:26.320 performance and the inability to you know, kind of find returns. 1:18:26.400 --> 1:18:28.760 Tell me, from what I understand, you guys pick a 1:18:28.920 --> 1:18:33.559 few um targets, right, and that our positions and really 1:18:33.640 --> 1:18:36.160 kind of focus on them. Just your quick thoughts on 1:18:36.200 --> 1:18:39.000 that just got about forty seconds. Sure, I think for 1:18:39.240 --> 1:18:41.719 us being able to define where you can add value 1:18:41.800 --> 1:18:44.080 is really important and have data to back it up. 1:18:44.200 --> 1:18:48.120 And as global investors, we're not I guess we don't 1:18:48.120 --> 1:18:51.559 have the necessity to look just at TNT or the US. 1:18:51.920 --> 1:18:53.960 We can look at all factors. We can look across 1:18:54.000 --> 1:18:56.720 the ward the world to be able to choose some 1:18:56.800 --> 1:18:59.599 more high conviction plans. So for us, it's been freeing 1:18:59.720 --> 1:19:04.320 to have that type of I guess, um more active 1:19:04.640 --> 1:19:07.960 returns and active profile as an investor versus a very 1:19:08.040 --> 1:19:10.880 small box or or small area to plane. And that's 1:19:10.880 --> 1:19:13.160 how we founded our niche it will be high conviction 1:19:13.320 --> 1:19:15.720 for our investors. All right, we're gonna leave it there. 1:19:15.800 --> 1:19:18.479 Thank you so much for your thoughts. Natie Determined, founder 1:19:18.760 --> 1:19:21.479 CEO and c I O Soulstein Capital, on the phone 1:19:21.520 --> 1:19:25.679 from San Francisco. Proud Alama, the Stanford Graduate School of Business. 1:19:25.960 --> 1:19:28.280 You may have heard their number one. Thanks for listening 1:19:28.320 --> 1:19:30.960 to Bloomberg Business Week. You can subscribe to the podcast 1:19:31.040 --> 1:19:33.880 on iTunes, SoundCloud, or Bloomberg dot com. You can also 1:19:33.960 --> 1:19:36.759 listen to our radio show every weekday at two pm Eastern, 1:19:36.960 --> 1:19:38.240 only on Bloomberg Radio