The Best One Yet - 🥑 “The Hugest Avocado” — Mission’s guac strategy. Wall Street’s 80 hr workweek cap. Disney’s Dartmouth dilemma.

Episode Date: September 16, 2024

Mission Avocado just had its best day ever on National Guacamole Day… we’ll explain.Wall Street is putting limits on banker hours… because of 100-hour weeks.DisneyWorld’s prices have risen twice as fast as inflation… because Disney is like Dartmouth.Plus, the great ball debate: Pickleball’s growing faster than tennis, but which burns more calories?$AVO $GS $DIS—-----------------------------------------------------GET ON THE POD: Submit a shoutout or fact: https://tboypod.com/shoutouts FOR MORE NICK & JACK: Newsletter: https://tboypod.com/newsletter Connect with Nick: https://www.linkedin.com/in/nicolas-martell/ Connect with Jack: https://www.linkedin.com/in/jack-crivici-kramer/ SOCIALS:Instagram: https://www.instagram.com/tboypod TikTok: https://www.tiktok.com/@tboypodYouTube: https://www.youtube.com/@tboypod Anything else: https://tboypod.com/  Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. Welcome back. It is Monday, September 16th. And today's pod is the best one yet. This is a T-boy. The top three pop business news stories you need to know today. But Nick, I got a question for you. Yeah, talk to me, Jack. Are you a Tom Brady or are you a Bill Belichack? Trick question, I'm an Eli? If you'll listen to Friday's episode where we interviewed the demoted pod, you'll know what we're talking about. If you know, you know, in the meantime, Jack, three fantastic stories for today's show. What a lot. we got on the pod, man. For our first story, it's National Guacamole Day. So we looked at the company whose stock ticker symbol is Avo. Mission Produce is the largest publicly traded avocado company, and the stock jumped 20% last week. For our second story, last quarter, Disney World profits shrank for the first time in years, because Disney World has become too expensive. Disney is raising prices like Dartmouth, so we jumped in T-boy style. And our third and final story. Wall Street banks are concerned that some junior analysts are working 100-hour weeks. So those banks are instituting 80-hour week caps, but we have a better solution. So order some seamless, and we'll talk

about this at 2 a.m. But yet is before we hit that wonderful mix of stories. Fantastic mix of stories to start the week. Jack, really, no one else is doing this mix. Love the mix, Jack. But Nick, it finally happened. You know what happened. Pickle ball has arrived with my name, brother. Oh, I know what that means, man. A new pickleball court was just opened up across the street. All right, so who are you going to call first? I'm already hiring a lawyer to let's see somebody for noise complaints. Yeties, there is no debating the pickleball noise, but there is a debate about pickleball first tennis.

Which is healthier? Pickleball or tennis? Well, we now know the answer thanks to data from Apple watches. Apple just published a study based on the activity app on Apple watches. Because when you're doing something physical, you're logging that info in the watch. and get these numbers. Tennis is a much bigger workout than pickleball is. The results.

The average heart rate playing pickleball is 143 beats per a minute. But the average heart rate when you're playing tennis is 152 beats per minute. Also, tennis players spend 9% more time with high intensity heart rates. 9% more huffing and puffing as you gallop across that court. What's that, Jack? Let me just get a water. Water! 9% more intensity and 9 beats per minute more.

Tennis wins in both categories. But Jack, it's not just the data saying that tennis is more of a workout, isn't man? The experts agree. 73% of fitness coaches say that tennis is a better workout than pickleball. Add it all up, and pickleball may be the fastest growing sport, but tennis is still just the fastest sport. But everything we just said, doesn't it kind of miss the point? I know.

Because, Jack, who said you were playing pickleball for the workout? You're playing pickleball to make noise and bother your neighbor. If you know, then you freaking know. Jack, listen to our three stories. Years before this song, two boys from the Northeast met in the dawn. They had an idea that caused a cultural storm. It's the best one yet, but the best is an norm. We need to practice.

50% that's a fat tip. Tea boy city on your at list. If you know, you know, because we're ready to go. We can't wait no more, so just start the show. First, a quick word from our sponsor. Our first story, Mission Produce, just had the best day for an avocado stock in the history of the pit. But we want to focus on the one phone call the CEO made this summer that earned the company $200 million.

Yet is happy national guacamole day to all those who celebrate. Remember, slice away. Hand injuries, like 90% of them are avocado induced. You don't want to lose a pointer finger in the dip, besties. Well, get this. One out of four of those avocados you slice comes from the company Mission Produce. Mission Produce, the largest avocado distributor on earth. Mission, they pioneered the ripe revolution in 1993. And how did that work, Jack? They were the first

avocado seller to sell ripe and ready avocados. Before them, you had to like wait a week before you could touch the thing. So it was green as a spleen. But Jackena actually covered this company when they IPOed four years ago. It was pretty exciting. It was a billion dollar pure play avocado stock at the time. Yes, it was. Since then, though, they've added mangoes and blueberries randomly. Now, interestingly, Mission is also the largest avocado supplier to Chipotle. So if you're upset that quack is extra, blame Mission Produce. Mission. Well, last week, Mission Produce announced that their revenue jumped 24 percent and their profits surged 49 percent. Cowabunga. Wall Street went full fiesta celebrating with the stock surging 20 percent in one day last week. Jack, now that is some spicy

guacamole, man. Oh, I said calabunga. But I like that you did. Now, Yetis, the reason for this sales surge of missions avocados, it's actually pretty shocking, and we've never seen this before. Huge avocados in California. We repeat, Californian avocados that were huge, literally. To all our Yeties from San Francisco down to San Diego, have you noticed your avo toast is a little bit heavier recently? And Jack, I was at the farmer's market of Fort Green the other day, and I needed like a second bag for my avocados and a spotter. Because California's avocado harvest this summer was incredible. It yielded 50% more fruit than last year. But Jack, you kind of held back the wild stat, didn't you? All the farmers were like, these avocados are huge this summer. The avocados, there wasn't just more of them.

These were actually larger than typical avocados in California this summer. By a full standard deviation. Yeah, you were at the farmer's marketing. You're like, is that an avocado or is that a melon? So California's bounty saved Mission Produce this year, actually. Because Mission Produces harvest in Latin America was the opposite. That's right. Mission has avocado producers in Peru, Mexico, and Guatemala, too. But down there, there was bad weather, and the harvest was weak. But get this.

Somehow, Mission got its hands on one third of all California avocados, which is a record high number of California avocados. So while other avocado distributors had a shortage this summer, Mission actually had a surplus, which let Mission sell avocados for a 36% higher price than the year before. Huge avocados. Huge stock price right now. Jack, I'm still making my way through one of them. So what's the takeaway for our buddy is over at Mission Produce?

Just call them on the phone. Just call them on the phone. Yeties, how did Mission Produce quickly get control of those fat California avocados this summer? Well, they picked up the phone. Mission executives called up farmers this summer. Literally asked them for priority deliveries of their avocados. Here's what we noticed the CEO said on their earnings call. He said, we built relationships and we know folks with ranches.

And frankly, we just made phone calls. We've said before that your network is your net worth. We've said it. Well, Mission's network of avocado growers added $200 million of value to Mission stock price last week. And because years of investment in making those connections, paid off by saving missions quarter. Because sometimes a business, you just got to pick up the phone and call them.

You just got to call him. Jack, like my mom says, if it's important, give him a call. For our second story, Disney World has become so expensive that Mickey Mouse just took out a second mortgage. Disney World has a price problem. Yes, it does.

And Americans are noticing. And the way to fix it comes from farmers. Yeah. But in the meantime, yet he's Disney. It's not the most magical company on Earth. It's the most superlative company on earth. You ready for this? Disney has the biggest movie studio in the world. It's also the biggest toy licensor in the world.

Jack, you ready for this? Disney is also the biggest sports producer in the world. Because they own ESPN. And they're the second biggest streamer in the world. Behind only Netflix. Oh, and fun fact yet, so you can bust out tonight at dinner. Walt Disney himself has the most Oscars of all time. Take that, Meryl Streep.

He's got 22 of them. 22. But we have not even mentioned. the one division that accounts for two-thirds of Disney's profits. The Parks Division. The Parks Division is 67% of Disney profits. Not too shabby. This is a shocker.

Disney's six theme parks make up the Lion King's share of profits for Disney. But we've got to ask how. How is Disney's Parks Division making two-thirds of the profits for Disney? Well, to account for shrinking profits elsewhere, Disney has increased the price at those theme parks. They've increased the price in every possible way. And if you visited Disney World or a Disneyland recently, which I have, by the way, I was at Disney Paris in August, and I suffered from all the flations. Jack, I told you, I'd give you that loan any time. You just got to ask, man.

The first thing we noticed was inflation. The price of a one-day Disney World ticket has doubled since 2012. In fact, Disney's prices at their theme parks are now up 5% per year over the past 10 years, which is twice the rate of inflation. The theme parks also are doing some swapflation. Swapflation, what's that, Jack? The shuttle from the Orlando airport to Disney World used to be free, but two years ago, they stopped making it free.

Even Goofy's got to pay these days. Oh, and it's not just swap inflation, it's also shrinkflation. The park is so crowded these days, the lines are so long you don't get as many rides in. Yes, you're getting less of the product, even though you're paying more price. You pay an expensive ticket to enter the park, and you have to pay for an expensive priority. pass to skip the line to actually get on the ride. It's not a small world after all. It's a big

expensive world after all, Jack. There's also everything else, Flation. Don't forget about that. Because a single one-day ticket to Disney World is now 154 bucks. But you got to add in the food, the merchandise, the hotel, the airfare, the autograph book. Disney now cost the same as a luxury vacation. Oh, and we did a story on how Disney even added a Michelin Star restaurant. Now, look, I know Tinkerbell's got a pay rent. I know those turkey legs are expensive. But man, Disney is pricey. And that could actually be an existential risk. So Jack, what's the takeaway for our buddies over at Disney?

Farmers taught us a fundamental lesson in finance. Don't overwork an asset. Yeties, the numbers show that Disney could actually be at a breaking point because profits fell last quarter for the first time since the pandemic. Instead of going into debt to take your family to an overcrowded theme park, some families are deciding not to go. So Disney's over-reliance on parks to make profits could actually be hurting the very parks themselves. Disney could take a lesson here from farmers.

That's what they need to you. Because farmers, every few years, they let their fields rest. They let their fields replenish themselves with natural nutrients. If you overwork a field and you don't give it a rest, that field loses its fertility. And if you overwork a Disney World with long lines and unaffordable food, that Disney World could lose its magic. So what should Disney do? they could stop raising prices, they could bring back the free shuttle from the airport,

or they could allow fewer people into the park so that the lines aren't as long. It's the same thing as farmers who taught us a fundamental lesson on finance. Don't overwork an asset. Now a quick word from our sponsor. For our third and final story, Wall Street culture just got its biggest change in generations.

They're capping how much young bankers can work. But we have a better solution. Full disclosure. Nick and I both worked in New York City at banks right after college. They happened to be European banks. Jack was downtown. I was in midtown. And, you know, Jack, I got sent home once because I hadn't shaved that deck. Seriously? No joke. But your facial hair doesn't even grow in that thick. Now that just hurts my feelings. Yetis on Wall Street, the suits are stiff. The attention of detail is high and the hours are long. Junior bankers can make 200 grand a year after a bonus. Although we didn't. You can also get a

Sharehouse in the Hamptons, and you can always get a reservation at Dorcia. After you've eaten that carbone. But the cost of that glamour can be your physical and mental health and your relationships. A hundred-hour work week is not unheard of on Wall Street. There was that one buddy of ours, Jack, who we just never saw him because he was at the office. He was ordering seamless at 2 a.m. Yet he's 100 hours a week, just to put that in perspective. Please, Jack. That's 15 hours a day, seven days a week.

And sadly, one associate actually died, likely from overwork at Bank of America. America just last year. It was a 35-year-old. He had blood clots after consecutive 100-hour work weeks while his team was working on a $2 billion deal. But two banks just announced a change to try to prevent something like that from ever happening again. Two banks are trying to change Wall Street's wild all-week work culture and who are they? And what are they doing, Jack? The first one is J.P. Morgan Chase. They're now going to cap their junior bankers at 80 hours per week. And the second is Bank of America, which is adding a time tracking tool to see how many hours you're working actually. Plus, J.P. Morgan has a protected window where you're not allowed to work.

Yeah, pencils are down from 6 p.m. on Fridays until noon on Saturday. So basically, if you work at J.P. Morgan, you may get a Friday night, date night out of it. But still, 80 hours? Yeah. That's a lot of work. Jack, can you sprinkle on some more context to the 80-hour cap and how much work 80 hours actually is every week? If you're not working on weekdays, then 80 hours is 16-hour days, Monday, 3rd. Friday. It's basically from 6 a.m. to 10 p.m. Monday through Friday. And if you do work weekends and

have no break, then you still have to work 11 or 12 hours to get to 80 hours a week. That would be 8 a.m. till 8 p.m. every day of the week. And still, you'd be within J.P. Morgan's cap. So even with the new hourly cap, J.P. Morgan announced, bankers are going to have no life. We should also point out that it's not just bankers who work this long and like 80 hours a week potentially. Medical residents have an 80-hour work limit as well. But interestingly, J.P. Morgan also has an exception to everything we just said. There's no cap if you're working on a live deal. Work as long as you want. Jack and I were thinking about that and we're like, what's not a live deal? Like, what's a dead deal? Because we never worked on a dead deal. Every deal was a live deal.

Also, J.P. Morgan's cap on late night spreadsheeting? Who's enforcing that cap? Oh, and then also, Jack, what about not J.P. Morgan and not Bank of America? Goldman Sachs and Morgan Stanley, they have no plans to cap their analysts' work nights. That sounds unsustainable. So, Jack, what's the takeaway and a potential solution for our fellow buddies over in banking? This is an opportunity for positive collusion. Yeties, collusion is bad. Collusion is when companies conspire, usually to set prices high like airlines.

But we think collusion is the only thing that could actually save bank culture. So the reason the banks won't really address this overworking issue is because of competition. If a JP Morgan banker won't work on weekends, but Goldman Sachs bankers will, then Goldman Sachs might win the deal. And that's why studies show hourly limits don't really work. Hourly caps aren't enforced and they aren't regulated. And even JP Morgan, who has an hourly cap, they have that exception for live deals. Every deal is arguably a live deal.

So the most effective way to really solve the overbanking problem is ironically collusion. banks need to all agree to one uniform cap. Because if they all agree to the same rules, they'll be incentivized to enforce them. And since no one is regulating junior banker hours, they all need to regulate themselves together as an industry. And there's a bunch of precedent for that happening. Yet he's usually we love competition, but competition has run amok when it comes to banking hours. And that's why this is an opportunity for positive collusion. Jack, could you whip up the takeaways for us to kick off the week? Mission Produce enjoyed a stock bump last week thanks to giant avocado harvests in California.

I mean, they're huge, Jack. I can't even, I don't even know what to do it. I had to get help up the stairs. Oh my God, like a football. It's like a car. Yeties, how did Mission Produce secure those huge avocados? They picked up the phone. For our second story, Disney World.

Prices have risen twice as fast as inflation over the past 10 years. Disney should learn a lesson from farmers. Don't overwork an asset. And our third and final story is J.P. Morgan. They're capping the workweek for bankers at 80 hours with exceptions. So we think the only real solution to this issue is collusion. Positive collusion. But Yeties, this pod's not over yet.

Here's what else you need to know today. First, we mentioned last month that OpenAI was getting interest from Apple, Nvidia, and Microsoft in their next fundraise. Well, the private AI company is taking full advantage of that huge demand from Big Tech. Open AI is now reportedly raising a Monday. at a $150 billion valuation, which is up from their $27 billion valuation just 18 months ago. Six X increase in valuation in just a year and a half. And second X, the company formerly known as Twitter just had its last day in San Francisco on Friday. Twitter was founded 18 years ago

in San Francisco, and its headquarters building was that iconic big structure on Market Street. Such a lovely building. And Twitter was actually given tax breaks to take over that building when they moved in, and it really kind of helped revitalize the area. It was a great source. Isn't Uber on Market Street now, too? I'm not sure Uber is that. They got a few offices, but all these offices are great sources for their communities, their neighborhoods. But now Elon is moving that business to his new homeland, Texas, so the Twitter era is truly over. And finally, the number one most watch show in America is, it's a kid show, and it's got an Australian accent.

Cowabunga? I think that's kind of an Australian word, actually. It's blue. It's the number one most watch show in America. Bluey, the children's program that frang your parents love too. It's such a lovely wholesome show. Actually, Jack and I did a whole story on Bluey and how it's valued at $2 billion. Last year, great episode. 35 billion minutes of that show was streamed in the past 12 months. Cheese and crackers.

Cheese and crackers. Now, time for the best fact yet. This one whipped up by Richard in lovely Tulsa, Oklahoma. In Tokyo, Japan, you can rent an apartment that is barely bigger than a walk-in closet. In Tokyo, these are called micro-apartments, and they're only about 80 square feet, which is smaller than you realize. Eight feet by 10 feet. That's it. Like, small than a basketball hoop. If you lie down twice, you don't fit in that apartment. Now, surprisingly, this really crazy tiny apartment, it includes all the essentials. A bed, a tiny kitchen, even a bathroom.

From watching the videos on YouTube, it's kind of like living inside a Tetris block, which can feel comfy, I guess. You have to bend your body to get off the bed. So the next time you complain about your 800 square foot apartment in the West Village you're paying $20,000 for in Japan. That is huge. Yet is happy national guacamole day. Remember, if you got a big avocado, it's probably a California avocado right there. Also, remember, if you're ordering guac, it's still going to be extra. But you know who to blame.

It's not Chipotle. It's actually a mission. And if you want to grow the show, one of the best ways you can do it is turn to a buddy today. Tell them about T-Boy and say H-Y-H-T-B-O-I. Have you had the best one yet? and then tell them to subscribe with the show. If you know, you know. Jack, one final Calabunga for our buddies out there.

Cowabunga! Is that the new cookie crisp? I didn't want to say it. But it rolled off the tongue. Yeti's Jack and I will see tomorrow. And before we go, congratulations to Yeti's Daniel and Adam, who just got engaged in Asheville, North Carolina. Guys, let's see the ring picks.

Happy 10-year workovertery to Earl de la Cruz, who lives in Vancouver, Washington. been swoosh and swooshes at Nike for a decade. Oh, we got to add a Nike disclosure now. And Camila Marfilomo in lovely Madrid. Their parents just discovered T-Boy three months ago, and it's the best thing that has ever happened to this Spanish family, Jack. I am flattered.

We are mi gusto mas. Happy five years as a Yeti to Adam Adelkoff in San Diego. And a shout out to Andrew DeVara and Asusa, California, who owns some company and has some studio in lovely Los Angeles. And to anyone else. I'll celebrate something today, make it a T-Boy. Celebrate the wins. And if you want your name and your shout-out on the pod,

go to T-boypod.com slash shout-outs. We're especially eager for voice submissions. We love our voicemail. This is Jack. I own stock of Disney and Netflix. We both own stock at Chipotle. And we both own stock of Apple.