The Best One Yet - ⭐ “Michelin-Star Mickey” — Disney’s restaurant award. Duolingo’s AI language tutor. Warren Buffett’s CEO successor.

Episode Date: May 7, 2024

Disney just became the 1st US theme park to receive a restaurant Michelin star — Because Disney is turning into Vegas… and Vegas is turning into Disney. We call it “Blendertainment”.Duolingo stock just hit an all-time high because it’s using AI to converse with you in French — Duolingo is making AI an asset, not an adversary.And Warren Buffett just hosted the “Coachella for Capitalism,” but the real highlight was his pick to succeed him as CEO — Get to know Greg Abel, the next Warren Buffett.Plus, Drake and Kendrick have been dropping dis-tracks to rip on each other (and it’s surging on Spotify) — So we’re looking at historic business beefs… $DIS $DUOL $BERK.ASubscribe to the best newsletter yet: tboypod.com/newsletterWant merch, a shoutout, or got TheBestFactYet? Go to: www.tboypod.comFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YouTube Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Tuesday, T-Boy, Tuesday, May 7th. And today's pod. Today's pod is the best one yet. It's a T-boy. The top three pop business news stories you need to know today. Jack, I've midnight movie clubbed without you this weekend, man.

What did you watch late night while your wife was asleep? I did Oppenheimer. I did Oppenheimer like you suggested, man. You did? Finally! I got through about a fraction of it. It's funny. It's a three-hour movie, perfectly split up into one-hour chunks.

I'm going to get this done before the end of the year, Jack, in the meantime, happy Midnight Movie Club, happy T-Boy Tuesday, and Jack, what are the three stories for today's show? For our first story, Disney World, just became the first U.S. theme park to receive the coveted Michelin Star. Disney got a Michelin Star because Disney is turning into Vegas.

But Vegas is also turning into Disney. Which is turning into Vegas. For our second story, Warren Buffett just hosted the Coachella for Capitalism, and he finally named his successor to run Berkshire Hathaway. Yeties get to know Greg. Because Greg Abel is the new Warren Buffett. And our third and final story, Duolingo stock,

just hit an all-time high because your new Spanish teacher is really a chat bot. No compriendo, uh, Don't pretend you can't understand me now. Duolingo has invented the infinite language tutor, and Jack and I are jumping into the story. But Yeris, before we hit that wonderful mix of stories. What a fantastic, no one else is doing this mix.

Love this mix today, Jack. Everyone is obsessed with Drake versus Kendrick, Kendrick versus Drake. Yet is this is the biggest rap drama since Cardi B versus Nikki Minaj never forget. This rap beef has gotten so big, you've got to cook it like a lyrical brisket. On the one side is Kendrick Lamar, the Pulitzer Prize-winning poet rapper. And on the other side is Drake, the superstar who makes songs and cinema and has hosted SNL twice. Let's whip out the geography here. Kendrick's from Compton, Los Angeles.

Drake is from up in Canada. 10 years, these two rappers have not been fans of each other. But in the past week, they took the gloves off and things went nuclear. In the past week, these two rappers have dropped six tracks and counting, because this isn't over, dedicated to ripping on the other rapper. That is the lyrics, they floated like a butterfly. The rhymes, they stung like a bee. But funny thing, Jack and I noticed about this big rap beef and what was it, Jack? It's actually not that different from like two guys battling in a Shakespeare play. It's not that never from Shakespeare. It's like two men yelling rhymes at each other. That is basically Shakespeare, Jack. That's what Mercutio and Tibble did, right? I'm pretty sure the monogues and the capitalites were basically Drake and Lamar. But here's the interesting thing about this rap beef. Yaddies, when you add it all up, the beef is pretty good for business, isn't it, Jack? Because on Spotify, these disc tracks that have been dropped, they were the top streamed songs over the weekend.

In fact, these disc tracks have given hip-hop its most streamed day of the year. And this isn't the first time rivalry has boosted revenue. Look at Coke versus Pepsi. Nothing's been better for Coke and Pepsi than Coke versus Pepsi as a competition. So putting on our capitalist hats, what should Lamar and Drake do next next, Nick? Oh, what do we think, man? Paperview, live TV, Saturday night. It's like Eminem 8 Mile in real life in Las Vegas.

Hey, Reed Hastings, can you get this thing on Netflix or what? So, Yetis, for this T-Boy Tuesday, Nick and I want to know. We want to know. What's another business beef? What's the best business beef? Is it Xbox versus PlayStation? The Frosty or the McFlur? The Whopper versus the Big Mac.

DC superheroes versus Marvel superheroes. How about Road Rules versus Real World Challenge, Jack? That's a business beef. Or how about a literal beef between actual beef and lab grown beef that's happening right now? Yeties, Jack and I want to hear your best business beef. Hit us up at T-Boy pot on Instagram. or comment on Spotify and YouTube. Oh, Romeo, oh, Romeo,

why doth thou drop that disc track on YouTube last weekend? Lamar, if you know, you know, Jack, let's say our three stories. 15 years before this song, two boys from the Northeast met in the dorm, they had an idea to cause a cultural storm. It's the best one yet, but the best is the norm. I don't even think they need to practice. 50% that's a fat tip. T-boy City on your at list.

you know, because we're ready to go. We can't wait no more, so just start the show. Start the show. First, a quick word from our sponsor. For our first story, for the first time in history, a United States theme park has received a Michelin Star. Disney World just got the highest possible honor in restaurants, so we need to talk about Blender Tainter Tainment.

Yet is Disney reports earnings today, but Jack and I, we couldn't wait to cover it, could we, man? We could not. All right. Now, Jack, follow me on this one. Follow me on this one. When it comes to the Disney theme parks, what is your favorite cuisine of choice?

What are you eating when you're down there? At a tui at Gaston. Maybe the Buzz Light your bagels, the enchiladas at Epcot, Jack? I know you love the giant turkey legs. Historically, Eddie, Disney's cuisine has been limited to giant turkey legs and pancakes shaped like mouse ears. But here's the wild news.

One restaurant at Disney World in Orlando, Florida, just earned a Michelin star. One restaurant in a theme. Park that serves funnel cakes all day, just received the highest award in the history of restaurants. That restaurant is Victoria and Albert. It's just a short monorail ride to the Magic Kingdom. Jack, leave the pod sun and the kids at the hotel because you can enjoy a 10-course culinary journey that starts at a cool $295 a person. They have semi-formal or formal dress code. Daffy Duck isn't allowed in the restaurant. Apparently Cinderella thinks she's Thomas Keller.

I thought you'd like that. I'm actually surprised I got that reference. Let's be honest. I am too. Yet is this meal? They offer 500 wines from 35 different regions at a Disney World theme park restaurant. What are you going to see on the menu, Nick? Jack, you're going to see the Langosteins, the Wagyu beef, and Snow White, and the seven truffles.

Apparently Tinkerbell is seasoning everything with pixie dust. Jack, the miso black cod, chef's kiss. It's magic. Now, when Nick and I cover the toy industry, like Legos, or Mattels or Hasbro, we've talked about the rise of kiddaltz in America. Ah, kiddults. I'm so glad you brought it up, Jack. Yet these kiddults again are adults who drive toy sales for themselves. For example, 40% of Bilderbear sales go to adults, not children.

Four out of ten buildabair teddy bears out there are being bought by adults just to hang out and play with themselves. Kidults are playing at Disney World, too. According to Disney World, 28% of attendees are there without children. It's usually adults going with other adults. Leave the kids at home. So what Jack and I are saying is that the kid old trend that we're seeing with like Star Wars Legos has carried over into Disney physical theme parks. And that explains why Disney World has a restaurant that doesn't even allow children.

We didn't mention this part, but this new Michelin Star restaurant, you can't get in if you're under 10 years old. If you believe in Santa, you're not allowed inside. If you want the kids menu, you can go over and hang out in the Magic Kingdom. The new Michelin Star Restaurant at Disney World shows the force of the cadult trend. But Jack, one sec. I'm going to have to ask you to pause mid-turkey like there. This also signals something bigger, doesn't it?

Nick, I'm on the magic carpet. Take me to the takeaway. As long as the seafood is an aerial and another mermaid, Jack. Sebastian! No! So, Jack, what's the takeaway for our buddies over at Disney? The entertainment industry is experiencing blend entertainment. Yeties, Blendertainment.

Blender Tainment is Jackson my term for when different entertainment starts to blend together. Is it just us or is Disney starting to look more and more like Las Vegas? Jack, I'm sorry, is it also just us or on the flip side? Is Vegas starting to look a lot more and more like Disney? Think about it, Yetis. Vegas and Disney used to be polar opposites. They're kind of meeting in the middle. Vegas.

It now has sports teams. Vegas has the sphere. Vegas is even getting its own universal. theme part. While Disney has its own Michelin Star Restaurant and Disney's ESPN allows sports betting and 28% of attendees are without kids. That is it's also not stopping there. We're also seeing Blender Taintertainment in other businesses too. Dave and Busters is adding betting so you can now gamble on a pinball game in an arcade. And at the same time, Topgolf, Bolaroo and Putschak, they're merging sports with restaurants and bars. Every business now, it seems, is offering food,

entertainment and a little bit of vice too. While they try to cater to adults and kids, at the exact same time. Dave and Busters is looking like Vegas. Vegas is looking like Disney World. Disney World is looking like Paris. Add it all up and that is Blender Taintertainment. Blender Taming. If you're feeling lost, so are we. For our second story, Warren Buffett just named his successor,

the man who will become the first new CEO of Berkshire Hathaway in 65 years. So Nick and I are asking for you, who is Greg Able? Who are you, Greg? And can he be the next Warren? And Buffett. Oh, the eddies to answer those two huge questions, Jack and I got to talk about the Woodstock for capitalism, more as we call it, the Coachella for capitalism. Last Saturday was the Berkshire Hathaway annual shareholder meeting in Omaha, Nebraska.

Attendees who owned stock came far and wide to witness Warren Buffett in person. You slip into a more casual outfit and you sing a little discounted cash flow, baby. Isn't that right? Nick and I respect and admire what Warren Buffett has built and the way that he's built. Yes, we do, Jack. So, it was with sadness that we watched Warren Buffett host his first annual shareholder meeting without his best friend and business partner, Charlie Munger. That is for 65 years.

Charlie Munger has been the right-hand man, the work husband, the fellow elder to Warren Buffett. He and Warren were the team. Together, Charlie and Warren built Berkshire Hathaway into a $900 billion company. Jack, could you sprinkle on some context for us over there? That's the seventh most valuable company in America. and it's the number one most valuable non-tech company in America. But this past November, Charlie Munger passed away at the age of 99 years old.

So, yeah, he's, if Jack and I had to add it up from last weekend at this major Berkshire Hathaway annual event, the biggest theme was that mortality was in the air. 93-year-old investing legend Warren Buffett summed up the day with this quote. He said, I not only hope you come next year, but I hope I come next year. But when Nick and I found fascinating about this story was this quote from Warren Buffett. Warren Buffett later said, I think the responsibility of running Berkshire Hathaway ought to be entirely with Greg. Warren was talking about Greg Abel, who is now officially Warren's pick to be the next CEO of Berkshire Hathaway. Not cousin Greg, Greg Abel.

Now yet he's technically the board will choose the next CEO of Berkshire Hathaway, but Warren is pretty respected and revered. So who he recommends will probably be the next CEO. Which leads to the big question. everyone last weekend and a lot of people in the business world are wondering and what is it, Jack? Who is Greg Abel? Who is the man who could become the king of Berkshire Hathaway? Well, Jack and I jumped in T-boy style. And Jack, do you know what I noticed on Greg's LinkedIn? He's born in Canada? Actually, no, nothing. He doesn't have a LinkedIn. Oh, really?

Yeah, he doesn't even have one. But Jack and I did jump in T-Boystow, and we did discover this about Greg Abel. He's a Canadian who grew up in Edmonton and is a crazy Wayne Gretzky fan. And Greg Abel also has historically from his childhood had a knack for finding simple ways to make money. As a kid, he returned recycled bottles for money, like a lot of us did, actually. If you think about it, that sounds like the kind of guy Warren Buffett would like. Warren doesn't have a LinkedIn account. Neither does this guy. But besties, there are a couple other things that Greg does that Warren really likes. For example, Greg likes to get his hands dirty.

For 25 years, he's improved operations of the divisions he's in charge of to boost revenue and cut costs. And when it comes to deals, Greg has also done the big game hunting. He's taking the lead in some of Berkshire Hathaway's biggest multi-billion dollar acquisitions. But most importantly, over the last 25 years that Greg has been at Warren Buffett's company, he's worked down the hall from Warren. At the company's humble offices in Omaha, Nebraska. And he's probably returned a couple cans just to make a few extra sense.

But he made sure to do it when Warren would notice. And that's why he's getting promoted. So Jack, what's the takeaway for all our buddies interested in leadership? The next leader is more important than the current leader. Yeah, it is Jack and I have told you about this before. But stocks are all about the future. Like a company's stock price, according to finance, is based on its future profits. That's why today's CEO is actually less important than tomorrow's CEO.

Yeah, and interestingly, Jack and I have seen some companies thrive with CEO's succession, mainly in big tech. Google, Apple, and Amazon have all soared to higher heights than ever with newish CEOs who did not found the companies. But Jack and I have also seen a whole bunch of successions slipups. Look at Disney, Starbucks, and Nike. They're all struggling right now with the CEOs who haven't been up to the task. That is exactly why Warren Buffett is picking a 25-year man to continue his investment legacy. Greg Abel is like King Charles. He's been waiting in line forever, just soaking up the queen.

means wisdom when she was in the same room as him. Warren has invested so much time in training and grooming Greg Abel. Because tomorrow's CEO is more important than today's CEO. Now a quick word from our sponsor. For our third and final story, it's Duolingo. Duolingo stock is at an all-time high, despite the threat of artificial intelligence. Because Duolingo is making AI an asset, not an adversary. All right, Jack, first date, the new humble brag.

What are you going to drop, man? Some French words? I think just your streak. 14 days and I haven't lost a Duolingo challenge yet, baby. Well, tomorrow, Duolingo announces their first quarterly earnings. They'll tell us how many monthly active learners are learning on their platform. And as of last year, Yeti, 74 million humans are practicing French on Duolingo so they can feel a little fancy watching those Paris Olympics this summer. We, we.

Oh, he has gained the medal d'Or. Oh, he's a raison. Now, what we're impressed by is the shockingly consistent growth of Duolingo. Get this, 40% or more sales growth every quarter since 2021 when they IPOed. 40% each quarter. That is quite a streak. We're also shocked by their shockingly consistent profitability. They've been profitable three quarters in a route. This company is getting a five on that AP Spanish exam.

And the reason we're all so shocked about Duo. Lingo stock and profits and revenues at an all-time high. What is it, Jack? We're shocked because of the threat of AI. Yeah, AI. Yetis, you'd think that artificial intelligence could make foreign language learning absolutely obsolete. We can imagine a future where you pop a chat GPT earpiece into your ear, and it live translates what the French person is speaking to you in French, directly into your ear.

Hey, Siri, can you teach me Korean instantly? Soon, we expect AI-powered real-time translation that's immediate and perfectly accurate and perfectly But apparently, despite that major existential concern, Duolingo, its customers, and Wall Street, completely disagree. Here's why. Duolingo thinks AI is actually the final piece to a perfect language learning app. We repeat, Duolingo is taking on AI by doing more with AI. What's going on here, Jack? They think AI will add to the app, not detract from the app. All right, here's the fascinating story. Duolingo teaches you how to read, how to write, to use vocabulary, pronounce words in another language.

That's the core language app. But there's one thing the app couldn't do. And that one thing it couldn't do was the most important thing to learning a language. And what's que secuse, Jack, what's que secuse? The app couldn't have a conversation with you. That was the key thing they were missing, which happens to be the most helpful way to learn a language. The best way to learn a language, Nick and I can vouch from experience, me, German, Nick Italian. it's talking to people. It's making mistakes.

Study abroad if you have the opportunity. Jack, you got to be in Berlin, walking into the restaurant, ordering that donor kebab. Or you got to be in Florence getting into that restaurant to order that panini. That's how you learn the local language. Unless you're conversing with the locals, making the mistakes, learning by doing, you're never going to become truly conversant in that language. So here was the problem for Duolingo's tech app. They couldn't do that because they couldn't scale that.

They couldn't afford to pay a Spanish teacher for each Spanish. student on the app. No, they could not, Jack. Until now. Duolingo has been working on AI chatbots to be your German, Arabic, or Korean practicing pal. Yeties, get this. Duolingo launched a role play. It's already available, in fact. And it's AI that's responsive and interactive with you like a human language partner. But it's more patient than a human language partner. So it won't judge you because you can't roll an R. Yeah, you get your Ennees down, Jack? It will patiently correct your mistakes and be willing to chat with you more, despite how bad you are. Maybe you're a little self-conscious about those umlau.

So you can practice in privacy with chat GP French. Yeties, that's what we're saying is so profound here. Duolingo has gone all in on AI, the very same technology that could existentially replace them. So Jack, what's the takeaway for our buddies over at Duolingo? For business and for us, AI can be your adversary or can be your adversary. or it can be your asset. Yeah, it is over the weekend. Warren Buffett also said this on Saturday.

He said that AI scares the hell out of them. And we can all relate to that. But the forces of technology and AI, they're not going to be stopped. It's happening no matter what. Yes, they are. So where does that leave us exactly? Well, it leaves us with a choice.

Instead of waiting for AI to kill Duolingo, Duolingo turned AI into a learning asset. In fact, Duolingo may have created. the most practical consumer use case of AI that we've seen yet. Using an AI language chatbot to practice speaking a new language, that's the most effective daily AI tool we can think of. Wee-wee. Well, Duolingo shows how AI can be both an opportunity or a threat,

depending on how you handle it. For business and for us, AI can be your adversary or it can be your asset. Jack, could you whip up the takeaways for us for T-Boy Tuesday? Disney World's first Michelin-Star restaurant shows that they cater to kids and cadults too. It's also blend entertainment when food, nightlife, and entertainment are all blending together and we're seeing it everywhere. For our second story, it's Warren Buffett. He named his pick for successor as CEO Berkshire Hathway. It's Greg Eable. Gregie Abel, because according to

finance, the next CEO is more important than the current CEO. How's your portfolio, Greg? And our third and final story is Duolingo. They're using AI to enhance their app with a conversation partner chatbot. And Duolingo is facing the choice we all have to make. Make AI your adversary or make it your asset. But yeties, this pod's not over yet. Here's what else you need to know today. First, WeWork has emerged from bankruptcy with a brand new owner and it is not Adam Newman. It's not Adam Newman. And it's not Musa either. It's Yardy Systems. A property management software provider is now the majority owner of WeWork. WeWork is going to now shut down unprofitable locations and move on with a whole lot less debt.

And second, the bridge in Baltimore that collapsed, it's going to get paid for by an insurance company. Chubb is going to pay the state of Maryland $350 million as part of an insurance payout for the bridge falling down. It's satisfying to see an insurance company do the paying instead of just getting paid. I feel like I'm just paying for insurance all the time. And finally, Sweet Green is getting into dinner. Sweet Green just launched their first steak nationwide coming out at Chipotle. We've said before, Sweet Green's challenge is to get more tummy share. They want more of your daily meals.

Well, two thirds of Sweet Green sales are lunch, so a steak strategy may get you into Sweet Green for date night. It may get you into Sweet Green for dinner time. Now, time for the best fact yet. This one sent in by Dave Pitluck from lovely Baltimore, Maryland. At Suarro National Park in southern Arizona, there are beautiful cacti. And that cactus is also a metaphor for us. Get this, Yeties.

The Suwarro cactus doesn't grow its first flowers until it's 35 years old. It doesn't grow its first branches that it's known for until they're 50 to 70 years old. And this cactus is not even considered mature until it's 125 years old. So, Jack, what's the takeaway from the story of the cactus? You are never too old to do that thing you want to do. Basties, you still have plenty of time to accomplish your big thing. A cactus is 50 when it grows its first branches. It's over a century old until it starts being a teenager, basically.

Your best days are ahead of you. Just look at a cactus. Yeties, you look fantastic for T-Boy Tuesday. And honestly, we would be very curious to know. Jack, would you drop $400 on a 10-course meal over in Disney? I don't think so, man. I mean, I'm not there for a Michelin Stah. I'm there for a turkey leg with my kids.

You would walk in and just like, I'm a shareholder. I would like a free round to kick off the meal. I know that's what you would say. I'm definitely going to ask for shareholder discounts. I'm going to need to speak to a manager. Yeti's hit us up at Teboy Potter on Spotify. If you know, you know, happy Tea Boy Tuesday. We'll see you tomorrow.

I own the place. And before we go, congratulations to Yeti's Jamie Lamata and Adam Kattenbach in lovely Los Angeles, who just got engaged and their dog Hobson is stoked. Congratulations to Rich Sternham in Charlotte, Vermont, who just enjoyed his last day of work ever. and ready for the next adventure with Polly. And happy birthday to Yeti, Rowan Gardner, who's turning one year old in St. Louis, Missouri. Happy first.

And a huge happy birthday to Little Sophie Panzer in Montclair, New Jersey. And a happy birthday to Albert Jacobition in Fairfield, California. Getting ready for some physical therapy school kicking off next semester. Oh, my knee! And a big shout out to Shannon. In the Presidio of San Francisco, just a big fan of the show. Shannon, hope you had a great time. I told Jackie said,

and we both just wanted to say thanks. And to anyone else who's celebrating something today, make it a T-boy. Celebrate the wins. This is Jack. I own stock of Berkshire Hathaway, Amazon, Disney, and Netflix. And Nick and I both own stock of Apple and Spotify.