The Best One Yet - 🎓 “The Million-Dollar Degree” — Ivy League’s $90K tuition. Pepsi’s underdog logo. JAM vs FAANG.

Episode Date: April 3, 2023

If Ivy League tuition prices keep growing at this pace, then kids born today will be paying “The Million-Dollar Degree”. Forget the “FAANG” stocks of Wall Street — What’s driving stocks today are the “JAM” stocks: Just Apple & Microsoft. And Pepsi just rebranded because being #2 behind Coca-Cola is the best thing that ever happened to it.$PEP $KO $AAPL $MSFTFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YoutubeWant a Shoutout on the pod? Fill out this formGot the Best Fact Yet? We got a form for that tooLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. Welcome back. It is Monday, April 3rd, the beginning of a new month. And today's pod is the best one yet. We got a tea boy today. We got a tea boy. And we got a new quarter.

Not too shabby. Jack, how's your weekend? My weekend was good? You ensconce yourself in flannel rompers, as we all expected? I actually put Wilder on skis for the first time ever. Just put him between my legs. He really didn't have to do any work. We just tried to give him a hot chocolate afterwards.

You didn't build that bassinet, but you got the kid on a double Black Diamond, Father of the Year over here, what's our first story for the pod, man? For our first story, the price of an Ivy League degree is about to hit $90,000 a year. Yeties, we're going to hit the $1 million degree in 2056. Yep, kids born today, they're looking at a million dollar tuition for a degree. Second story, what do we got, man? For our second story, you've heard of the fang stocks, right? Yes, the fang stocks. It stands for Facebook, Apple, Amazon, Netflix, and Google.

They used to dominate the stock market, but now we have a new thing, the jam stocks. The jam stocks. It stands for just Apple and Microsoft. For our third and final story, we're looking at Pepsi. Pepsi just rebranded for the first time in 14 years. Because being number two forever is the best place to be. Ricky Bobby hates everything you just said. But yet is, before we hit that fantastic mix. A wonderful mix to come back to.

To a weekend from, man. I love this mix. Porter's Almanac Week 159. Things were running out in the economy. Jack and I have been keeping track. This week, we're running out of funds for the tooth fairy. The tooth fairy fund has almost run out because the price per a tooth is at in all time high. Get this, yeties. The average tooth fairy payout per tooth is up.

It's way up. Oh, Jack, we're looking at a situation of tooth fairy inflation, man. Let me back you up 20 years. When I lost a tooth, I got $1 under my pillow the next month. Jack, when I lost a tooth, I got a $2 pre-charged Metro card. Last year, the kids were getting $5.36 per teeth. I'm sorry, Jack. Where are tooth prices this year?

623 per tooth. Yeties, let's sprinkle on some context here. That is a 400% rise from the 1990s when Jack and I lost a few incisors. In fact, the average price paid for a first tooth right now, $7 for your first lost tooth. That molar is your moneymaker. Jack that canine is crushing cash. Honestly, your wisdom teeth.

Why is this investment you've ever made? Yeties, go. Stop the pod. Get a retainer. Protect those assets. Honest question, though, what are kids doing these days? Putting QR codes under their pillow?

My Venmo is at Little Johnny. Yeties, if tooth prices keep rising, the tooth fairy will need a bailout. Forget Silicon Valley Bank. someone's going to have to rescue the tooth fairy. Didn't you lose two adult front teeth when you were 18 and my freshman year roommate? Jack, I got two front teeth knocked out in a college lacrosse game and I didn't get paid. All you got was the hospital bill.

Jack, let's hit our free story. Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea that cost a cultural. 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.

For our first story, as Ivy League tuition closes in on $90,000 a year, Americans are turning sour on the four-year degree. But there is no more deceiving sticker price than college tuition. Oh, if you're going to bring up sticker prices, man. Are you ready for the latest sticker price? Can we talk about this? The cost of attendance for one year at Yale University, like an 18-year-old kid, enrolling as a freshman. To be an Eli at Yale. And Eli?

That's what their team name is. I didn't know that. Or like the nickname for their team names. $84,000. $84,000. That's not a shock. That's a... Electrocution.

To get a piece of paper that says Yale University bachelor degree, Jack, what is the price going to be after four years? $336,000. Oh, and by the way, Brown University is actually $1,000 more per year. Jack, I don't remember the first. food being that good. But Nick, that's not even the whole price for the degree, because you must include the opportunity cost. Because instead of spending that time at Yale, you could have been working for those four years, right, Jack? If you add in four years of lost income that you could

have made during those four years, that brings the price of a college degree at Yale to half a million dollars. Half a million dollars when you factor in the opportunity cost. And don't even talk about an MBA degree. Oh, no, no, no, no, no, no, Jack. You started a job in consulting. You were a negative millionaire over at McKinsey. Now, if the Ivy League tuition growth rate continues at this pace, we're going to hit the $1 million four-year degree in 23 years. We repeat, we calculated that if this pace continues, the Ivy League class of 2056 will pay $1 million for a four-year degree. So if we hold Brooks back a year to try to become like a pro hockey player or something, that's going to be his class. If you think this isn't far away, you're keeping. You're keeping.

are going to be paying this price. By the way, wild timing that the price of a four-year college degree is hitting an all-time high. Right, because the excitement for a four-year degree just hit an all-time low. For the first time ever, a majority of Americans don't believe in the value of a four-year college degree. They don't believe it's worth all that money. According to a Wall Street Journal, University of Chicago poll, 56% of America does not think that late-night parties at Sig Epp are worth the forever students. loan payments. Fifty-six percent of us don't think that unlimited late-night pizza at Ross Dining

Hall and scones and sweatpants is worth the bill. You get at graduation. Although I got to say, Jack, we had some fantastic late-night pizza meals together and I think it was worth every single penny. Well, the memories were priceless. The memories led to these takeaways. But Yeties, besides student debt, there's actually another key driver of the negative opinion of four-year degrees. It's that only two out of three students end up graduating today. Yeah, so taking on debt without getting a degree, it's kind of the worst of both worlds. So John Kellyn-Kramer, can you please approach the stand and tell us what's the takeaway for our buddies in the education system? With honors. For highly selective schools, only the wealthy pay the sticker price.

Yeties, there is no industry with a sticker price gap quite like the American college industry. Especially for highly selective schools in America, the price that's adverse. is very different than the price that's actually paid by most students. Vanguard looked at the 2019 school year and noticed that the median sticker price for a highly selective private university was $74,000. That's a lot of money. But the median price actually paid at that same university was only $27,000. Okay, the high price was $74,000, but the average price was only $27,000. Ifso facto, the typical student paid 64% less than the sticker price. price at that private university. And what's the reason for that, Jack? Setting a very high tuition

price means they can take as much revenue from wealthy families and foreign students as they possibly can. But then here's the key. They offer less wealthy families, big scholarships, financial aid, and loans. Now, we should point out, the gap is not as high for less selective schools, which is where most of the student debt is coming from. But at super selective schools, the higher tuition prices paid by wealthy students subsidize lower prices for the typical student. That's why there's no industry with a sticker price gap quite like higher education.

Or our second story. We just finished the first quarter and there is one word that Jack and I just can't get out of our minds. Jam, jam. Like, not raspberry jam, not even apricot jam. Or is it apricot? Jam. Jam. J.A.M. Just Apple and Microsoft. Jam. Jam, just Apple and Microsoft. First, eddies, everyone is still talking about

the tech session because every tech company is still laying people off right now. But Jack and I got to step back and sprinkle on some interesting context here. Stocks overall are surprisingly up this year by 7%. The tech industry stocks overall are up a shocking 17%. If you look at the tech heavy NASDAQ stock index, it just entered bull market territory. I mean, Jack, I just whipped out a whiteboard here. 20% stock rally over in the NASDAQ thanks to jam. In the last 10 years, the big tech stocks that were driving the stock market, it was fang.

It was fang. That was the term everyone was talking about. Fang this. F-A-A-A-N-G. Fang that. It stands for Facebook, Apple, Amazon, Netflix, and Google. Those are the big tech companies. Their big momentum drove the stock market. Jack and I were talking over the weekend. We were looking at the stock market and we said, you know what, we have entered a brand new era. Fang is over. Now it's jam. Jam. Yeties, Jam stands for just Apple and Microsoft.

J-A-M, because Apple and Microsoft are the only big tech stocks, the only stocks that matter right now. Yeties, the S&P 500 stock index captures the 500 biggest stocks in America. And it's weighted by market cap. And guess what? Apple and Microsoft have never carried more weight on that index than right now. What we're saying is that Apple and Microsoft now control a record 15% of the market. of the S&P 500's value, 15% of the stock market's value. If Apple and Microsoft are up, there's a good chance the S&P 500 is up to. Another way we can think about this, Yeti's one out of $7 in the U.S. stock market right now, it's in either Apple or it's in Microsoft.

Now, let's look for a second at the other former Fang stocks. Well, Jack, I'm looking at Amazon. I'm looking at Netflix and I'm looking at meta, formerly Facebook. Their stocks are at the same level they were three years ago. On the other hand, Apple and Microsoft stocks are almost at all-time highs. Jam. It's just Apple and Microsoft right now. And here's how they did it. Jack, what's the takeaway for our buddies over at Apple and Microsoft?

Apple and Microsoft have been first and focused. First and focused. Yeties, when AI hit the scene this year and got so much attention, Microsoft moved first. Microsoft invested $10 billion into chat GPT back in January. and now it's leading the artificial intelligence movement. On the other hand, Apple didn't focus on being first. Apple focused on staying focused. Apple didn't overhire during the pandemic, like every other tech company,

so it didn't have to engage in layoffs this year. Apple focused on doing what it does best. Apple focused on premium consumer tech products. So the stock market today, it's not driven by Fang. It's driven by Jam. Just Apple and Microsoft. Because Apple was focused and Microsoft. Microsoft was first. And now a word from our sponsor, Robin Hood.

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Conditions apply. That's robin hood.com slash Tv-O-Y. All investments involve risk. Contributions to and withdrawals from IRAs may entail tax consequences. Robin Hood does not provide tax advice. Robin Hood Financial LLC, member SIPC. For our third and final story, for the first time in 50, 15 years Pepsi just rebranded.

And Pepsi's brand new logo reveals the glory of being second. But Jack, if we're going to hit this story, can I first interest you in a can of Brad's drink? Would you like a Brad's drink? How do you like your Brad's drink, Jack? Do you like it? Flat. Shaken, stirred, lemon, lime. With an umbrella in it, Nick. There is a soda that was once named Brad's drink, Yetis. That's right. Back in 1893, the hot new drinking town was Brad.

Brad's drink. Yet he's back in the 1800s. You would go on a first date and you would chug some Brad. Well, five years later, Brad made a wise decision. He renamed his drink to Pepsi. And over the next 125 years, Pepsi has had six different logos in its life. Well, last week, they showed us lucky number seven. Yeah, Pepsi just opened up a can of makeover. We should point out, Nick and I hated Pepsi's most recent logo.

We really did. Like, we don't typically get offended like this, but we just really didn't like. Yeah, we're cracking open a can of Pepsi to celebrate this funeral. The Pepsi logo for the last decade, it was like loopy, a USA-colored Pokemon ball. It was brutal. There were no words, and it was very corporate. Well, Pepsi finally just did a 180. They brought back the all-caps Pepsi, surrounded by that circle and a new black color that

pops out of it. When you look at this new Pepsi logo, it feels like the can is, it's trying to give you a chest bump. It's pretty intense. But we also have to mention that nostalgia never dies, and Pepsi knows that. Nostalgia never dies. We have smelled this logo before because it's very similar to the 1980s Pepsi logo. Yeties, if you've seen Ghostbusters or Footloose or Andre the Giant, then you have seen this new can of Pepsi. Yes, Pepsi went back to the 80s time capsule.

They grabbed the logo that your mom saw after Jazzercise with Jane Fonda. Yeah, and you know what? Pepsi is not the only one doing this. Yeah, the cool new thing in branding right now is Nostalgia Rebrands. Yeah, Jack Warner Brothers just returned to their 1920s logo too. Burger King returned to their 1960s logo recently. Because besties in a world of pandemics and Ukraine warfare and climate change, you are craving comfort. And a nostalgic logo, that's like an aesthetic hug.

True to its roots, corporate comfort food. Except minus the brats. No, Brad. Hold the Brad. So, Jack, what's the takeaway for our buddies over at Pepsi? Pepsi's greatest advantage right now is that it's number two forever. Yeties, let's jump into the numbers. Coca-Cola is number one in the soft drink industry. It's got 46% of the market. Pepsi's number two. It's got just 26% at the soda market. Pepsi's been behind Coke forever. But that lets Pepsi be more aggressive. In just the past year, Nick and I looked into it, Pepsi has launched a Mango-flavored Pepsi, Cracker Jack-flavored Pepsi, and a Peep's-flavored Pepsi.

Uh-huh. Oh, and there's that blue-colored Pepsi. D-Dab-Di, if I were green, I would die. Pepsi even created a spa kit, so you have a moisturizer based on Pepsi soda carbonation. And Pepsi just did its sixth rebrand, while Coke has had the same font and color scheme since 1926. Because Coca-Cola has the burden of being number one. Coke's not keen to take a risk. They're worried about losing their top dog status. But Pepsi is liberated as the Forever Number 2. They've got less to lose. They're always going bolder. It's like an underdog in the final four.

Pepsi can pull out all the stops. Coca-Cola sticks to the game plan. It's tried and true, but it can feel kind of boring. So yes, Coca-Cola is number one in soda sales. But Pepsi is number one in relevance. Jack, can you whip up the takeaways for us to kick off the week? Just as the price of a four-year college degree hits an all-time high, our opinions of that four-year degree

have hidden all-time low. But for highly selective schools, only the wealthy pay, the sticker price. For our second story, just Apple and Microsoft account for 15% of the S&P 500 right now. Jam. Their value grew when others didn't because they were first and they were focused.

And our third and final story is Pepsi. They just rebranded their logo in cans. They smell like their 80s logo. Pepsi's greatest advantage is honestly just being number two forever. If they succeed too much, they'll lose. Minus the Brad. Now, time for the best fact yet.

This one sent in by Tyler Pearl Mudder in lovely Highland Park, Illinois. Following, America's one and only mega jetliner company built the largest factory on Earth in Everett, Washington. In fact, this plane factory is actually the largest building on planet Earth. It's so big, you could fit 13 MetLife stadiums with a New York Giants play just inside this building. It is so big. They keep 13,000 bicycles inside so the 10,000 workers can actually get around the place. Nick, it's so big that it developed its own weather systems. Clouds were forming up by the ceiling.

They had to install ventilation to prevent it from raining inside. We've got a system coming in from the snack room area to the north. Let's hope the jet stream doesn't come from the bathroom. Oh, it already did. Yetis, you look fantastic to kick off the week. And if you haven't yet, you should follow us at T-Boy Pot on Instagram and Twitter. We serve up T-Boy teasers every day letting you know what's in the pot. Get a little preview of what's in the best one yet.

A little razzle-dazzle, a little sprinkle-dinkle. If you know, you know. And before we go, congratulations to Yeti Miles Mabry, who just got a five-at-a-five on the T-boy weekly pop-biz pop quiz. And happy five-year anniversary to Nicola and, Asia celebrating in London. And Alberto Cobain was already a dog grandpa, but now he is becoming a human grandpa. Not too shabby.

And happy 35th birthday to Jenny Gallagher under the cherry trees of Osaka, Japan. And Emily Mullins enjoy that birthday in Wichita, Kansas. And happy 12th birthday to Dominique Fowler in Winchester, California. And Olivia, Namaste, Krause, happy birthday in Bo, New Hampshire. And happy birthday to Radical Ditka Rachel. in Dallas, Texas. And Charlotte Householder, happy 14th birthday on the way to school right now with your dad. Celebrate that win.

This is Jack. I own stock of Amazon and Netflix, and Nick and I both own stock of Apple and Robin Hood. And we both own ETFs of the S&P 500. And now a word from our sponsor, Robin Hood. Is there anything more stressful than a buffet? You got the chicken or the fish, the salad, or the salsa? You're paralyzed over potatoes versus pork. Well, when you're saving for retirement, you may feel that decision to feel.

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is commission free. Other fees may apply. To get started, go to robin hood.com slash T-boy and get your first stock free. Conditions apply and recommended portfolios are not available to residents of Massachusetts. That's robinood.com slash TBOI. All investments involve risk, contribution, To solutions to and withdrawals from IRAs may entail tax consequences.

Robin Hood does not provide tax advice. Robin Hood Financial LLC, member SIPC. A little razzle-dazzle, a little sprinkled dinkle.