Scott Galloway · 57:26
Announcements that the
Kara Swisher · 57:26
The administration wasn't gonna do that because their own president was
Scott Galloway · 57:29
And so what have they done? They've created weapons of mass distraction.
Kara Swisher · 57:33
I don't know. I think there's repercussions here. I don't... I'm go Because
Scott Galloway · 57:37
you're focused on it. There... The reality is the following. There appears to be enough evidence that the... That warrant an investigation by... And, again, to your to to your point, unfortunately, we don't have the institutions to do this correctly. But the way this should play out is the following. The attorney general should be announcing or the Department of Justice that they are forming a special counsel because there are credible accusations
Kara Swisher · 58:01
Like I said.
Scott Galloway · 58:01
Of rape against several people, including the president of The United States and all this other bullshit. Larry Sumner sending stupid fucking emails because he's pathetic to Jeffrey Epstein. I think that's a distraction, Kara.
Kara Swisher · 58:17
Again, I I know. I know you do. I don't. I think it shows about judgment, and we can decide who we wanna affiliate with. I think it's fine
Scott Galloway · 58:24
to do it. And and if if I had AI go through every one of your texts and emails, I couldn't reflect you with having
Kara Swisher · 58:29
poor judgment. Not to the extent of what... Look. Jeffrey Epstein's a unique figure here. You know that. And he represents something bigger, which is
Scott Galloway · 58:36
Did they commit crimes?
Kara Swisher · 58:38
I get it.
Scott Galloway · 58:38
But I'm going after everyone that hasn't committed a crime because America loves to shame people. We are losing focus on the people who raped children.
Kara Swisher · 58:46
Yeah. But, you know, all kinds of people got in trouble because of shaming things, and some people got in trouble because of of whatever. We have a history of this. Like, actors, like, back in the fifties lost their jobs. Like, sometimes
Scott Galloway · 59:01
But that wasn't the FBI investigate... Going on a fishing expedition for real crimes, and then shame
Kara Swisher · 59:06
Neither is this.
Scott Galloway · 59:06
Gonna happen. This is TMZ's wet dream, and, unfortunately, we're not creating the incentives such that if you're a single mother and your daughter ends up on an island, that there's let... There's there's less cantilever rates.
Kara Swisher · 59:17
Women. That
Scott Galloway · 59:17
is protecting children and women
Kara Swisher · 59:20
there. Women and children. You're absolutely right. I think it's
Scott Galloway · 59:24
hard Every about celebrity is just gonna start using signal now.
Kara Swisher · 59:27
No. I don't I don't know about that. I don't know about that. I think it is linked to the feeling that the rich are... Have no impunity that you talk about. And that's part of a trend. And it's okay to have these other things, but they should do... I I've said special counsel over and over again. But they were forced into it by Thomas Massie and Ro Khanna because they wouldn't do their job. And they they didn't do their job because they're under the thumb of Donald Trump. And so if they're not gonna do their job, this is the only way. This is my
Scott Galloway · 59:55
I get it. But this is what's happened, unfortunately, because our institutions no longer have any independence or credibility. They have released nude photos of underage girls. They have doxed them, listed their names and their addresses without their permission, and redacted and confused information around the actual people who have evidence that they're pedophiles. I mean, this just couldn't
Kara Swisher · 1:00:18
be But they're not getting away with it. As you can see, they got caught
Scott Galloway · 1:00:21
here too. See, I disagree. I think they're mostly getting away with it. I think the wrong people are being prosecuted and shamed and and voted off the island, and the criminals are loving it because there's a ton
Kara Swisher · 1:00:31
of confusion and distraction. I think they're gonna get the criminals.
Scott Galloway · 1:00:34
The one thing, and you'll agree with this, I was thinking about it the other day, is if we ask the general public to name five billionaires, I think three of them would be... The first one would probably be Elon Musk. The second would probably be
Kara Swisher · 1:00:47
Jeff Bezos.
Scott Galloway · 1:00:49
See, I think it would be I think it would be Bill Gates. He was sort of the original billionaire. And then the third would be the president who calls himself the billionaire president. So three... I bet I bet those three would be the three of the first five that people said who are billionaires. They're all in the fucking Epstein files. So, anyways, my point is you can understand that the public has decided that once you get to a certain point of wealth, you engage in a level of depravity and feel that again, I love the saying, You're you're protected by the law, but not bound by it, versus the rest of us are bound by the law, but not protected by it. So you can see that there is a real populist uprising here. But, again, I I think the Department of Justice is there to serve justice.
Kara Swisher · 1:01:37
It's not this Department of Justice. If there was any other Department of Justice, you might expect a little bit of decency. This is not... This is the
Scott Galloway · 1:01:45
only way should have And I was gonna do this, but maybe we do it on pivot. I wanted to get Priy Barar on to talk about the process of document collection, investigation collection, and then how that information is properly disseminated to the public and in what format. Because that's what we're talking about here.
Kara Swisher · 1:02:02
You're right. You're right. You're right. It's... It gets prurient, but at the same time, it's the only way given Pam Bondi is the most... Another moron
Scott Galloway · 1:02:09
is becoming The Dow is at $50,000.
Kara Swisher · 1:02:12
$50,000. She'll never live that one down. Anyway, let's take a quick break, and we'll be back for predictions.
[Ad break]
— Predictions segment begins —
Kara Swisher · 1:03:56
Okay, Scott. Let's hear a prediction.
Scott Galloway · 1:03:59
So I just like to... I I wrap my predictions and what I'm doing personally in terms of my own finances, and this is not financial advice. I'm just telling what I'm doing. I think that just as SaaS companies have been oversold, some of these PE or what they call business development or private credit companies have been oversold. So just some of the ones... Again, I'm gonna create a basket because I'm about diversification at this at this point. But for example, Apollo, which has taken a huge hit, is trading at 14 to 17 times earnings. So a company with double digit earnings growth and double digit assets under management growth, which is the capital they deploy and how they make money, The S and P is trading at a p of 20, and Apollo's trading at 14 to 17 times. TPG is trading at about a one third discount to fair value estimates. It's got unbelievable fundraising, and it's expanding their fee earnings. And, again, the price reflects pessimism more than growth trajectory. And by the way, there's absolutely no evidence other than creative writing that any of these companies are experiencing. I work or co invest with some of these companies. They're fucking juggernauts. They're raising more money than ever.
Kara Swisher · 1:05:09
But it's public feeling about investor nervousness.
Scott Galloway · 1:05:12
Yes. I... There's narrative in their numbers, and I believe over the medium and long
Kara Swisher · 1:05:17
term, the numbers will now. It's an opportunity is what it is.
Scott Galloway · 1:05:20
These companies have shed between twenty and forty percent of their value in the last twelve months while continuing to grow their AUM and their fees. Blue Owl, it's got a seven to 8% dividend yield. And, you know, this... Because of market discounting private credit fears. So there's a growth versus valuation, in my view, mismatch, and that all of these companies are growing their assets under management and their fees, which is what essentially is their revenues. And the sector has had multiple contraction or compression due to private credit liquidity fears because of some of these creative writing projects. And in my view, the market pricing risks are more... The market is pricing risk more aggressively than current earnings trends justify. That's my that's my thesis. So let me... I'll just wrap it up. My my one line thesis is the following. Compressed multiples and and durable fee growth plus strong fundraising, and I know these companies. They're they're really well run. In my view, all adds up to potential relative undervaluation versus the broader market.
— Predictions segment ends —
Kara Swisher · 1:06:24
Alright. I like it. That's a... Yeah. It's the same thing you were talking about last week. Okay. Look for opportunities, including you, Netflix. That's right. Just so you know, next week, we'll we'll be talking about Hillary Clinton's testifying for... About Epstein. Anyway, we'll we'll be talking about that. But I wanna actually get our our listeners to write us in, give their own prediction. Jeff Bezos and Lauren Sanchez have been named honorary chairs of the year's Met Gala. They essentially are paying for it, and that's how that happened. The dress code is fashion is art. I wanna know what you think Lauren and Jeff will dress up as. What art thing will they dress up as?
Scott Galloway · 1:06:57
There's only two things I'm certain about their What? Wardrobe. Boobs? 100%. Whatever she's Both wearing
Kara Swisher · 1:07:06
of them.
Scott Galloway · 1:07:06
She's not wearing an outfit. Her breasts are, and I'm here for it. I think she's a I think she's a beautiful woman and have at it. But let me be clear.
Kara Swisher · 1:07:16
Let's be fair. He's he's been improving his boobs too. But go ahead.
Scott Galloway · 1:07:19
Let's let's be clear. There is... Like, Vogue and Conde Nast, they're smart people. They invest in cable companies. Those assets, the magazines have literally been just like a slow burn to irrelevance. Hearst has invested in all these incredible data companies like Fitch and this airline data company. They've actually grown the revenues. Conde Nast has not. But the reporting I wanna see, the only thing I know is that is that Lauren's gonna have her girls in the window, and I'm here for it. And two, somehow, indirectly, there is an exchange of money here.
Kara Swisher · 1:07:56
There is.
Scott Galloway · 1:07:57
They're paying for it.
Kara Swisher · 1:07:58
Oh, yeah. No. They're pay... They they... They're, like, backing it.
Scott Galloway · 1:08:01
Paying for it?
Kara Swisher · 1:08:01
Yeah. Anna Winter chucked them down. They turned them upside down, got their wallet, put them on the cover. They're paying for the whole thing.
Scott Galloway · 1:08:08
Put them upside down, and certain things moved and certain things didn't.
Kara Swisher · 1:08:11
That's correct. The money moved out of their pockets, and now they get to see king and queen. Good for them. We would like... I feel good about this.
Scott Galloway · 1:08:18
I'm here for his midlife crisis. I like... I can't help it. I'm like, Jeff,
Kara Swisher · 1:08:22
is this? I want listeners straight in, and we'll read them. What what what art will they dress up as? We need specifics. Sexy moments.
Scott Galloway · 1:08:29
We get invited. I'd like to go to that. Do you think they'll invite us?
Kara Swisher · 1:08:32
No. I don't think they will. Alright. We wanna hear from you. Send us your questions about business tech or whatever's on your mind and whatever you think Lauren and Jeff are gonna wear. Go to nymag.com/pivot to submit a question for this show or call 85551 before we go. As we said, Scott and I, also, besides Minneapolis, were both returning to South by Southwest in Austin for three shows on the Vox Media podcast stage. It's a total South by Southwest takeover because we are the king and queen speaking of which. The mayor. Have his boobs out, just so you know, on a platter.
Scott Galloway · 1:09:05
First, I'll be doing a live taping at Prop G Markets with Ed Elson on March 14 where every person over the age of 40 will come and go, I love your pocket. Is Ed single? I have a daughter. Literally, I'm so sick of people trying to set Ed up.
Kara Swisher · 1:09:17
Well, he's more handsome than you are.
Scott Galloway · 1:09:18
He's very handsome. Nice kid too.
Kara Swisher · 1:09:20
I mean, it's a low bar. But And then on March 15 at 10AM, I'll be doing a live taping of On with two special guests I'm really excited about. Finally, we'll take the stage together on March 15 at 11:30 for a live taping of Pivot. You can touch Scott's you can touch Scott's body parts
Scott Galloway · 1:09:38
on bear.
Kara Swisher · 1:09:39
Scott bear. Yeah. Anyway, last year's Pivot taping at South by Southwest featured whiskey shots, partial nudity, IPO predictions, and some smart questions from our audience.
Scott Galloway · 1:09:48
Love it.
Kara Swisher · 1:09:48
So we will... We're gonna double the fuck down on it... On that, and and and you don't wanna miss it.
Scott Galloway · 1:09:54
I love by Southwest. Aren't you excited?
Kara Swisher · 1:09:55
Yeah. I'm excited. I'm excited to hang out with you. I'm I'm excited. We're doing a lot of traveling together year.
Scott Galloway · 1:10:00
Oh, it's part of the Vox Media podcast stage presented by ODUC.
Kara Swisher · 1:10:03
The stage also features sessions from Brene Brown and Adam Grant, Marques Brownlee, Esteb Herndon.
Scott Galloway · 1:10:09
As long as Estebre Perella's there to tell me that I'm okay.
Kara Swisher · 1:10:12
I don't know if she's gonna be there, but nonetheless, learn more and get a special discount on your innovation badge at voxmedia.com/sxsw. That's voxmedia.com/sxsw. We will see you there. Okay. 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 · 1:10:33
Today's show is produced by Lara Nayman, Zoe Marcus, and Taylor Griffin. Ernie Intertodd engineered this episode. Manolo Moreno edited the video. Thanks also to Jubrows, Mia Savira, and Dan Shalon. Nishat is 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. You can subscribe to the magazine nymag.com/pod. We'll be back next week for another breakdown of all things tech and business. One of my role models, Sam Harris, said that if you have economic security and people who love you, and I'm blessed with both those things, you have an obligation to speak your mind.
[Ad break]
