Kara Swisher · 45:30
At all if they're gonna let the growth team make decisions.
Scott Galloway · 45:32
Would Alex Damos be an interesting CEO?
Kara Swisher · 45:35
No. No? He strikes
Scott Galloway · 45:36
me as very likable and thoughtful.
Kara Swisher · 45:38
He is. He... His project... But I think he made the good point. It's like they have those people there. They just ignore them. And you know that in any... You know about those organizations where they bring in a person who's supposed to make things better and give them no power. What's all the diversity that people... Like stuff like that.
Scott Galloway · 45:52
It's optics. They're brought
Kara Swisher · 45:52
up Exactly. For Yeah. But give them no Like when
Scott Galloway · 45:55
Facebook brings in Ken Chanal under their board, and Ken Chanal is like, no, I'm not going to be involved in this if you're not going to Yep, listen to
Kara Swisher · 46:02
exactly. So I
Scott Galloway · 46:03
want so make the world a better place and if
Kara Swisher · 46:05
you're not We're going let me going finish this up. What thing, what would you advise young employees of Facebook to interact? How would you advise them to interact by looking?
Scott Galloway · 46:12
It's easy to be generous and righteous with other people's livings. I think people who work at Facebook, it's an incredible opportunity for them. Their first obligation is to develop economic security for them and their families. I have no beef with people who work at Facebook, but I think a lot of them are coming to their own conclusion that time after time, there always seems to be an excuse for not doing the right thing. And it's not a collective decision. It's a decision made by made by Mark Zuckerberg. There's a reason why the majority of his senior leadership, other than Sheryl, kind of drop like flies. I think a They lot of them just say
Kara Swisher · 46:46
don't. A lot of those people stay too.
Scott Galloway · 46:48
But whenever they acquire a company, it seems like the founders end up Yes,
Kara Swisher · 46:51
the founders do. The old employees are still there around
Scott Galloway · 46:54
him. Well, they have options that are probably it's probably hard to leave at this point. Look, everyone has to make a conscious decision around where they work. The people that worked at Exxon were good people. The people who worked at Altria were good people. But you are working. There's just no getting around it. You're working for a company. Social media in itself is addictive. It's like nicotine. Pinterest is addictive. Snap is addictive, but the shit that gives you cancer is these algorithms of amplification and the ad model. And Facebook is giving our society cancer. You work for
Kara Swisher · 47:28
The worst cigarette thing is high, it's really like the minutes another CEO comes in and starts throttling this back, they're gonna get attacked. So that's the issue. They've gotta have Mark do it. Mark has to say, you know what, I run this place, I don't really care. He I work
Scott Galloway · 47:44
has, that's what's so upsetting is that he has the power-
Kara Swisher · 47:48
He does. He won't work.
Scott Galloway · 47:48
To put stakeholders over shareholders because it's a dual class. Let's go back to dual class shareholder companies, which are a violation of governance. It's not one person, one vote. Everything matters. It's Kremlin governance. Everything matters until there's something I don't like and I get to decide. So it's not real governance. It's total the Ford and by the way, the Ford family does it with 6% of the company. They get to control it. The Sulzberger's get to control The New York Times with 15% of the company. Was originally the initial justification for why corporate governance should be Kremlin like governance is that media is so important, so important that we shouldn't be subject to the vagaries and short term needs of people who might come in and say, I don't like the way you're talking about about, you know, war in Iraq. I'm gonna take you over and I'm gonna influence you. We were supposed to be... It was supposed to be they pitched it as a a protection for a net good for society. And guess what? It's backfired. It's now a net bad. He he could could say these amplifications, these algorithms of amplification are bad. We need to dramatically change our business model. And by the way, it's going to cost a shit ton of money and our shares are going to get cut in half. But I have a vision for this. And he could do it. He could do it.
Kara Swisher · 49:00
He doesn't think it. Sahil, we don't have any answers for you. You should go to another con... Go to... Eddie Jassy is a really cool guy. That's what I'd say. Anyway. Anyway. Alright, Scott. One more quick break. I gotta go soon. I got things to do. We'll be back for predictions.
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Kara Swisher · 50:51
Okay, Scott. You gotta do a short one. I got I got some things to do today that that that that that I gotta get to.
Scott Galloway · 50:57
You So need to be more loving towards your
Kara Swisher · 50:58
co Today is not a loving day. I'll call you later and be nice to you on the phone. I'll send you, like
Scott Galloway · 51:03
I need that. Know I need that. Know, I like it. So need
— Predictions segment begins —
Kara Swisher · 51:06
prediction time fast because Kara Swisher's got somewhere to go.
Scott Galloway · 51:09
Okay. So GameStop is reattaching to the fundamentals. And this time last week when we said, and I believe our exact words were these people were going to get smoked.
Kara Swisher · 51:19
They are getting
Scott Galloway · 51:20
smoked. It peaked exactly seven days ago. The stock was at $4.76 it peaked. And now I believe it opened at 71 this morning.
Kara Swisher · 51:29
So no tendies as they say.
Scott Galloway · 51:30
Most specialty retail, whether it's you could argue Best Buy is big box, but William Sonoma, Restoration Hardware, Abercrombie and Fitch, Urban Outfitters generally trade somewhere between zero point two and one times revenues. GameStop, so my prediction is very straightforward. The GameStop is reattaching to the fundamentals and within two weeks is going be trading somewhere between $25 and $50 a share. The reattachment And is also everybody posing again from millennial cameras says this is a new era of investing. No, it's not. The best regulator in the world, the best regulator in the world are the pain from mistakes. And there's tremendous informal regulation going on right now. All the attacks I was getting because I didn't get it and I was a boomer protecting my hedge fund buddies and I was crying because of my losses, none of which were true. And all of a sudden it just It went dark. Just because you know what's happening? You know what's happened? A bunch of people said, hold the line, you know, storm the castle so they could get rich. And there is so much pain out there right now and this thing is reattaching to the fundamentals. And it's gonna be 25 to $50. And they say it's a new era in investing? No, it's not because guess Let
Kara Swisher · 52:42
me step in. Here's what's new. I'm gonna step in. I'm gonna step in your thing. In some cases, there's always gonna be a short squeeze kinda company situation, and and this shows that people can do this on certain stocks. But these short squeezes are very... Not rare, but they're not... What really matters is the fundamentals and making... You're if interested investing, I think it's a great thing. And I think more people should be investing, not just rich people,
Scott Galloway · 53:02
not just Investing, though. Define investing.
Kara Swisher · 53:04
Research, pick companies, make good decisions, and stop playing the speculation game. Like, I get that you want a part of the stupid part of Wall Street, but the casino part and the speculation part is it makes nothing. It creates nothing. It doesn't help people. It doesn't give people jobs. It's just a lot of bullshit. And so you can play that game, but you're... When you play that game, you're gonna get burned one way or the other, or you're not. Like, it does... You're either screwing someone or being screwed. And so I don't understand why people wanna play that game in any way that's productive to society. So it's fine that more people are involved. And if you wanna do this thing... But you are gonna really... If you don't time it right, if you don't do the right thing and you think it's an emotional thing, it's all about money for most of the people that are playing it.
Scott Galloway · 53:49
That's right. And speaking of money
Kara Swisher · 53:50
That's it.
Scott Galloway · 53:51
Here's what the research shows. Eighty percent, eighty percent of day traders lose money. And we know what it comes right down to. It's very simple. The more you trade, the more money you lose. What percentage of people who have invested in a number of stocks and left them in there for twenty years have lost money? Zero. Zero. It's it's exactly what Warren Buffett said. It's not timing the market. It's time in the market. Not as much fun. Not as much fun, but investing is about finding good companies or even just buying the indices, the low cost indices. It's your investment strategy, quite frankly. It's putting money away and putting things away and not thinking about it. The biggest mistakes I've made in investing were, one, getting into this day trading phenomenon for about a week with I Omega. But it was a great lesson for me because it happened early. And I sold I bought Netflix at twelve dollars a share. That's the good news. It's at $550 I sold it at $10 to like take a tax loss or something and never bought it back. Find good companies, put them away. And then if you love trading, if you really love the markets
Kara Swisher · 54:56
Go to Las Vegas.
Scott Galloway · 54:58
Well, if it's dope a hit fun.
Kara Swisher · 55:00
Get free drinks.
Scott Galloway · 55:01
But recognize that dope a hit costs money. But if you love the markets and I get the sense a lot of these people really love the markets, then try and get some certification and some training and go into the industry and get armed with great research and armed with supercomputers. I do think one of the positive outcomes here is that a lot of young people have been inspired by the markets, and the markets are a wonderful way to make a living. But if you're looking to make money, if you're looking to invest, boy, 8080% of day traders lose money. And that's what these people
Kara Swisher · 55:31
are learning very hard is lesson game. This is a game, and it is a tough game, and it's a nasty game. And again, I... My focus is, like, you're not helping anybody. You're helping yourself. And I'm glad that some people made money and are able to pay for their parents' rent. There's a lot of cool stories like that out there. And screwing the man, sure, that's great. That's great. But this is not... The real power lies in ownership of really great companies creating jobs, etcetera. It doesn't... This is just this is just like anything else that's... Like gambling. It's fine. I like gambling. I I do it myself, but
Scott Galloway · 56:04
It's fun, right?
Kara Swisher · 56:04
I know know what it is. It's fun, is.
Scott Galloway · 56:06
No, you're probably gonna lose your wallet consumption.
Kara Swisher · 56:09
Yep. It's consumption. And
Scott Galloway · 56:10
there's nothing wrong with that. If you
Kara Swisher · 56:11
I love support the the idea, and I do think a lot of those those short sellers need to be kicked in the teeth. I love watching them being kicked in the teeth.
Scott Galloway · 56:18
Well, was fun. No doubt about it. And if there's any regulation, it should be across all the hedge funds that have been trying to pull this shit for the last Yes, twenty or thirty
Kara Swisher · 56:25
I don't want, we don't like them anymore. So, but we don't like you either in that regard. You know what I mean? Like who's screwing who? It doesn't
Scott Galloway · 56:31
you ask for a prediction, my prediction is GameStop stock within it's already happening.
Kara Swisher · 56:35
They'll be available.
Scott Galloway · 56:36
Within two weeks, will be between $25 and $50 a share. And everyone posing from the millennials cameras has said this is a new approach to investing. So many people for every story that's been publicized about someone paying off their mortgage, there's more stories about someone who got egged on and thought they were part of a movement and didn't understand the technology and the technicals of this stock and went in and got smoked. And I think the lesson here is gonna, the regulation, the informal regulation that's gonna happen here in the market dynamics are that the warriors who will hold the line and take a spear in the chest for you, the bandit, the person trying to make money off of them, those people are gonna rethink it the next time. I just don't think you're gonna see see the same level. I don't think you're gonna see as many what I'll call
Kara Swisher · 57:19
We'll see.
Scott Galloway · 57:19
Crowd squeezes.
— Predictions segment ends —
Kara Swisher · 57:20
We'll see. We'll see. It's interesting. It sure is interesting. That's all I have to say. Okay, Scott. That's the show. I'm sorry if it wasn't nice to you, but I really do bring... No. Don't even start. You're if someone's even slow... Shows you one, like, says, oh, you're late, you get like, oh, you're hurting my feelings. Come on. Come on. Come on.
Scott Galloway · 57:37
Gotta start investing in the relationship.
Kara Swisher · 57:39
I'm short squeezing our relationship. That's what I'm You
Scott Galloway · 57:43
know, Kara, this is the real question. Are you angry at me or are you angry at yourself?
Kara Swisher · 57:48
I'm never angry
Scott Galloway · 57:48
Are you angry at yourself?
Kara Swisher · 57:50
I am literally never angry at myself.
Scott Galloway · 57:53
So, Dieter, Zach, I'm being serious for a moment. One of the keys to living a happy, rewarding life is not only bringing forgiveness to others. Because in every relationship, both parties will at some point screw up as bringing forgiveness, but also also bringing forgiveness to yourself. At the end of life, at the end of life, you know what people's biggest regrets are?
Kara Swisher · 58:08
What?
Scott Galloway · 58:09
Well, that they hadn't invested more in the relationships, that they hadn't lived the life that they wanted to live instead of what society wanted them live Yeah. To live. And also, they wish, they wish they'd been more forgiving of themselves. They wish they'd been less hard on themselves. So be less hard on yourself and
Kara Swisher · 58:24
love the girl. Myself.
Scott Galloway · 58:25
Love the
Kara Swisher · 58:26
girl. I love myself. Dude, I'm fine on all those things. I'm good. I'm good.
Scott Galloway · 58:31
You're angry. You're being mean to yourself. You're being you're being mean to yourself. Okay. Today's episode. Alright.
Kara Swisher · 58:37
Today's episode. To New York magazine... No. Nymag.com/pivot to submit your question for the podcast. The link is also in our show notes. Scott, I am leaving you right now. I gotta go. I gotta go do something. All right. I I adore you, Scott.
Scott Galloway · 58:51
Bring forgiveness.
Kara Swisher · 58:52
Largely because of because of major mental issues I have. That's why I like you. Anyway, read us out.
Scott Galloway · 59:00
Today's show was produced by Rebecca Sinanis. Ernie Entratod engineered this episode. Thanks also to Hannah Rosen and Drew Burrows. Make sure you've subscribed to the show on Apple Podcasts, or if you're an Android user, check us out on Spotify or frankly wherever you listen to podcasts. If you liked our show, please recommend it to a friend. Thanks for listening to Pivot from New York Magazine and Vox Media. We'll be back next week for a breakdown of all things tech and business. Life is not about what happens to you. It's about how you react to what happens to you. Forgive yourself. Don't be so hard on yourself.
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