Office Hours: The Lab-Grown Diamond Boom, Investment in Women’s Sports, and Deciding Whether to Quit Your Job
Nov 29, 2023
20:05
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The podcast discusses the rise of lab-grown diamonds and their impact on the diamond industry. It explores the potential investment in women's sports and the increase in viewership. A disillusioned investment banker seeks advice on quitting their job to pursue new adventures.
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Quick takeaways
Lab-grown diamonds have significantly impacted the diamond industry, leading to a drop in natural diamond prices and an increase in lab-grown diamond sales.
Investing in women's sports, driven by growing interest and engagement, presents promising opportunities for future growth and asset value.
Deep dives
Lab-grown diamonds gain popularity and impact traditional diamond prices
Lab-grown diamonds have become increasingly popular due to their similarity to natural diamonds but at a fraction of the cost. Global sales of lab-grown diamonds reached $12 billion in 2022, showing a significant 38% increase. Mainstream jewelry retailers, including K jewelers and Pandora, have started selling lab-grown diamonds as well. However, lab-grown diamonds do not appreciate in value and are sold at an 80% discount compared to natural diamonds, up from a 20% discount five years ago. As a result, natural diamond prices have dropped by 18% from their peak, and this trend is expected to continue as lab-grown diamonds become more prevalent.
Opportunities and growth prospects in women's sports
Women's sports, particularly women's soccer, present promising opportunities for investment. Viewer interest and engagement in women's sports, such as basketball and soccer, have continued to rise, with record-breaking audience numbers and increased sponsorship values for women's events. Female athletes also generate twice the social engagement compared to their male counterparts. This growing interest in women's sports, combined with the need for advertisers to reach valuable consumers, creates a strong case for future growth and asset value in women's sports teams. Additionally, with more women becoming billionaires, there is a likelihood of increased investment in women's sports as well.
Transitioning from investment banking and exploring new career paths
Leaving investment banking after a long and disillusioning career, while a privilege, can still be a daunting decision. It is important to not let too much time pass without actively seeking new professional opportunities. Exploring potential jobs or industries that leverage your skills and experience, such as consulting or finance, can help with a smoother transition. Given the risk of skill atrophy and the need to stay relevant in the job market, it is advisable to make contacts, follow up, and have a plan in place before embarking on a long break. While taking some time off to travel and reflect, it is best to start making inquiries and pursuing new career paths to ensure a solid transition.
Scott gives his thoughts on the diamond market, specifically how the rise in lab-grown diamonds has affected the industry. He then discusses why women’s sports are a good investment and whether he’d invest in an athlete representation agency. He wraps up with advice to an investment banker planning to quit his job to travel the world.