Scott Galloway · 58:35
Better. So they want to get into these really high profile, well marketed hedge funds who they believe, oh, I have access to Olson, or I have access to this, you know, DESHA or whatever. Okay. Fine. Guess what? If you added up all alternative investments and hedge fund returns for the last fifty years, they have underperformed the S and P by the amount of their fees. It's a... And some outperform. Berkshire Hathaway has outperformed. My buddy at Anchorage Capital has outperformed. You know, I have another buddy at Mudger Capital has outperformed. But generally speaking, over the long... Medium and long term, they all underperform the market by their fees.
Kara Swisher · 59:14
By their fees.
Scott Galloway · 59:15
That's correct. Every piece of data analysis... If you go to the finance department at a world class university and ask them where they invest, they're like, Vanguard.
Kara Swisher · 59:25
Mhmm. Me too.
Scott Galloway · 59:26
And they don't pick stocks. Do you know what I pick stocks.
Kara Swisher · 59:28
I put... I don't know. Someone's like, how are your stocks doing? I'm like, I have no idea. And I... I'm not gonna look until I need... And I don't really need the money. So I just... I'm like, I just put it there, and then it goes away. It's like it's like a bank at Gringotts. I don't care. Like, I I... The more I think about it, the more upset I get. Right? Like, what am I missing? What did I get wrong? Did I buy gold? Should I do this? And then I'm like, why am I that fucking person?
Scott Galloway · 59:51
It's a great point because in addition to the capital Mhmm. You're investing, investing, you wanna talk about the emotion you're investing. And that is I do get psychic income.
Kara Swisher · 1:00:01
You like it. You like it.
Scott Galloway · 1:00:02
I started buying stocks when I was 13. I worked at Morgan Stanley. I I find it fascinating. I really do enjoy markets, and it served me well. Having said that, it also takes a real emotional toll staring at your fucking phone. And then when you buy a stock and you're convinced you're a genius and it gets cut by 40% in two weeks after you buy it, you're really gonna beat yourself up.
Kara Swisher · 1:00:22
You are. It's just... It's better not to pay attention.
Scott Galloway · 1:00:25
100%.
Kara Swisher · 1:00:26
It is. And the other thing is, can I just say for people, again, if you like it and it's fun, that's one thing, and it starts to get you an obsession, it's another? The only thing I wish you wouldn't do is put so much of your your medical information into these people, because they don't... It's not... They're not bound by HIPAA. Same thing with legal. I'm like, please don't. I mean, unless you find one of these ones that is bound by the same laws everybody else is, I just worry about that over time.
Scott Galloway · 1:00:50
What's that? Wait.
Kara Swisher · 1:00:51
No. I'm just saying whenever... You put a lot of your per... You're always like, oh, I loaded up... You know, sometimes you don't even realize you're saying this to me. I put away all my medical thing into this. And I was like, really? Not sure I trust these people to have all Scottsbluff.
Scott Galloway · 1:01:03
Promiscuous with my information.
Kara Swisher · 1:01:04
It makes me worry. I'll be honest with you. I think, oh, dear. No. Don't do that.
Scott Galloway · 1:01:09
Because you think at some point they're gonna get all of it and weaponize it against us.
Kara Swisher · 1:01:12
They're they're not... I I... They could because they're not bound by HIPAA. They're not bound by legal things. I just... And who knows if they had a security breach. I just am like, oh, I I trust my lawyer because I can I can sue him? I trust my doctor because I can sue him. You know what I mean? Like, and they're bound by... Anyway anyway
Scott Galloway · 1:01:29
I wonder if I should just send out a preemptive apology to Angie Dickinson and Emily Radakowski right now.
Kara Swisher · 1:01:37
Why?
Scott Galloway · 1:01:38
Well, just all the things I've asked AI about.
Kara Swisher · 1:01:40
No. No. Okay. We're moving on. We gotta go. Alright. Alright, Scott. One more quick break. We'll be back for predictions.
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— Predictions segment begins —
Kara Swisher · 1:04:00
Okay, Scott. Let's hear a prediction. Do you have a prediction for us?
Scott Galloway · 1:04:04
There was a really interesting story this week that I think kind of indicates or pretends... Portends what might be in store for us around potential acquisitions. And I made a similar prediction a few years ago, but it didn't pan out. And that is a 32 year old TikToker just crowdfunded $132,000,000 in nonbinding pledges to buy a bankrupt Spirit Airlines. Did you see this?
Kara Swisher · 1:04:27
No. I didn't.
Scott Galloway · 1:04:28
I didn't. He said he said, look. Spirit Spirit helps keep airline prices down. Let's do what we did with the Green Bay Packers, and let's mutualize it. And he's very talented. And Spirit said it was gonna shut down at 2AM on Saturday, and this guy Hunter Peterson had a TikTok up the same day, a website by the next, and 6,000,000 views within days. And more than a... Get this, Kara? More than a 133,000 people have pledged on average about $1,000 each totaling $132,000,000 And essentially what he's saying is that, Okay, 20% of American adults paying the average spirit fare of 30 to $40 equals enough to buy an airline. And they say it's... Okay. Listen. It's unlikely to close, but the idea with... In an era of AI and compliance AI where you could spin up the legal documents and have people sign them And with PayPal, I think you're gonna see in the next twelve to thirty six months, someone pulled us off where they say, hey. Who wants to buy Estee Lauder, or who wants to buy... You know, they'll start with a small stock. It wouldn't be Estee Lauder because that's too big a company, but it'll start with a small company that goes out of business. They'll say, okay. Dick's Sporting... Whatever it is. And someone talented, who's very charismatic, who will weaponize social media and AI to collect legal pledges for funds and will buy something. Think crowdfunding gonna happen. And also, retail participation in US equities has risen by nearly 20% of average daily trading volume, which by the way is usually a sell signal, up from low single digits before COVID.
Kara Swisher · 1:06:13
So it's like when everybody got in one of those accounts.
Scott Galloway · 1:06:16
That's right. Yeah. And rather than fading, retail flows hit fresh records in 2025.
Kara Swisher · 1:06:20
Well, stock market's up. Everyone's like,
Scott Galloway · 1:06:22
what do Everyone thinks we're a genius now. Everyone's like, oh, I'm Okay.
Kara Swisher · 1:06:25
I like that. Why don't you do it? Why don't we buy something?
Scott Galloway · 1:06:28
Well, that's what I used to do for a living between 2,000 kinds
Kara Swisher · 1:06:31
of stunts. What could we buy? What would we buy?
Scott Galloway · 1:06:34
All kinds of stunts.
Kara Swisher · 1:06:35
Like Chipotle or something.
Scott Galloway · 1:06:37
Always expensive. Always expensive.
Kara Swisher · 1:06:40
I don't wanna buy an airline.
Scott Galloway · 1:06:41
Do you know they send me... I used to tie... I was in the original
Kara Swisher · 1:06:44
It's not the plot
Scott Galloway · 1:06:44
of They sent me a card. Mhmm. This is the most impressive my sons have ever been with me. I got a card for free lifetime Chipotle, and I sold it, or I didn't sell it. I've lost it. But I love
Kara Swisher · 1:06:55
Oh, you want one again? That's what this was about.
Scott Galloway · 1:06:57
Little card. Didn't get paid. They sent me a card. No. If they do it again, I want I want serious cabbage.
Kara Swisher · 1:07:02
Yeah. Yeah. I like that prediction. It's a really, really good prediction. By the way, I predict the government is gonna lose that idiotic case against the New York Times about the hiring, the DEI, and then attacking the woman who did redistricting. These people make Ceausescu look kind. It's ridiculous. They're going after all their enemies with the FBI, and they're attacking... Here's what I predict. It's gonna end in tears for those people. They're... They attack the New York Times for DEI in a lawsuit. Then they're gonna use the justice department to try to get, Eugene Carroll's money that Trump owes her, the 83,000,000, which is insane. And then they attacked the woman in... The 82 year old woman. They raided her office to try to find corruption, who did the... Who was so... This badass lady in Virginia who did all the redistricting that kicked their ass. And then they are investigating the reporter for the Atlantic who, you know, no shit Sherlock did the story about Cash Patel being a drunk. And, of course, she immediately answered it by showing off a bottle she bought on auction where Kas Patel gives out whiskey to people with his name on it, like Woodford with reserve whiskey. So no one's having any of this nonsense that they're doing. It's just so, like, cloddish and thuggish. So none of it's gonna work. That's my prediction.
Scott Galloway · 1:08:20
Can I just? I I can't help it. I agree with you. Private companies get to do what they want, whether... That's none of the government's business, in my view, unless it's... They're claiming reverse racism. I I think that that that... I will say
Kara Swisher · 1:08:35
Let the guy sue her... Sue the New York Times. I don't care.
Scott Galloway · 1:08:38
A search warrant is not proof of guilt, but it is a serious threshold. And federal judges do not casually approve raids on senior state legislators.
Kara Swisher · 1:08:46
Come on. So... Well Why her? Why her?
Scott Galloway · 1:08:50
Because... Well, okay. You could argue that the investigation, the fact that it was even launched is politicized, but a federal... A sitting federal judge, they do not issue
Kara Swisher · 1:09:00
No. I don't
Scott Galloway · 1:09:02
This is a high profile corruption probe. They often look strongest at the raid stage and weaker later once the evidence is scrutinized publicly.
Kara Swisher · 1:09:09
But Tisha James. Right?
Scott Galloway · 1:09:10
But to be fair to the other side, a search warrant is a... You know, it has to pass a serious threshold that a federal judge does not casually approve on
— Predictions segment ends —
Kara Swisher · 1:09:19
senior state legislators. But there's a reason they didn't pick 20 other Republican ones. They... This is what they do all the time. They just... This is... It's it's a it's a weaponization of the power. And they they complained about it happening to them, and then they're doing it. So stop it. Just cut it out. Anyway, we wanna hear from you. Send us your questions about business tech or whatever's on your mind. Go to nymag.com/pivot to submit a question for the show, or call 85551 Elsewhere in the Care and Scott universe this week, Scott, Proph G Markets is going on tour this month. Tell us a little bit about it. It's kicking off May 27. It's going to San Francisco, LA, Miami, Chicago, and New York. You go to profgmarketstour.com for tickets. Tell us a tiny bit about this and why people should go.
Scott Galloway · 1:10:03
Well, thanks, Kara. It's it's similar to what we did with with Pivot. It's a live tour. We have a bunch of great guests across different cities. What's interesting, it's interesting what sells out the quickest, New York and San Francisco. We were worried that San Francisco wouldn't like us because we're constantly ship hosting tech people. But New York and San Francisco are gonna sell out in the next twenty four hours. And, anyways... But, yeah, it's just a live tour with me and Ed Elson.
Kara Swisher · 1:10:31
We sold out San Francisco first on Pivot. Just
Scott Galloway · 1:10:34
Yeah. This...
Kara Swisher · 1:10:34
So let's like Was it Toronto and San Francisco?
Scott Galloway · 1:10:37
Oh, Toronto. And Boston. Wait. Did Boston
Kara Swisher · 1:10:39
We sold out We sold them all out fast. LA happened to be a huge theater, it took a little longer.
Scott Galloway · 1:10:45
Yeah. And it'll be after the show, it'll be a bunch of people coming up to me and asking me if Ed Elsin is single because their daughter is looking for a nice husband. It's it's my Prophecy Markets live tour. Go to Prophecy Markets tour. Prophecymarketstour.com. It's starting the end of May, first week of June.
Kara Swisher · 1:11:06
Great. That's fantastic. And also, we're gonna be doing pivot in the fall, another pivot tour in the fall. We're just... You're gonna be on the road, Scott Galloway.
Scott Galloway · 1:11:12
We're doing another tour?
Kara Swisher · 1:11:14
Yes. You know that. What do you... Do you know that? We are.
Scott Galloway · 1:11:17
I didn't know that, but I'm excited about it.
Kara Swisher · 1:11:20
You did know it. We literally had a call about it. What... What's happening?
Scott Galloway · 1:11:23
We didn't have a call about another tour.
Kara Swisher · 1:11:25
Literally discussed it. We're having a tour in the fall. You were on the call. You weren't listening, but you were there.
Scott Galloway · 1:11:32
You were I don't remember. Where am I?
Kara Swisher · 1:11:35
Well, we're having one. Anyway, that's the show. Thanks for listening to Pivot, and be sure to like and subscribe to our YouTube channel. We'll be back next week.
Scott Galloway · 1:11:43
Today's show is produced by Larry Niemann, Zoe, Marcus Taylor Griffin, and Todd Weissman. Ernie and Todd introduced this episode. Rich Shibley edited the video. Thanks also to Gibralose,, and Dan Shalon. Yashar Kourouv, Vox Media's executive producer podcast. Make sure to follow Pivot on your favorite podcast platform. Thanks for listening to Pivot from New York Magazine and Vox Media. We'll be back next week for another breakdown of all things tech and business care. Have a great weekend.
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