The Prof G Pod with Scott Galloway Prof G Markets: First Citizens Acquires SVB, Hindenburg Shorts Block, and Nike vs. Hermès
Apr 3, 2023
Ed Elson, a savvy analyst, joins the discussion to dissect First Citizens' acquisition of Silicon Valley Bank and why distressed assets may offer hidden opportunities for investors. They examine Hindenburg's controversial short position on Block's Cash App, raising questions about credibility and user data. The talk shifts to the impressive financials of luxury brands like Lululemon and the competitive dynamics between Nike and Hermès, exploring how they maintain demand through smart marketing strategies and the allure of exclusivity.
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First Citizens Bank's Strategy
- First Citizens Bank acquired SVB, capitalizing on others' fear.
- This is their 11th acquisition of a failed bank, demonstrating their strategy.
Contrarian Investing
- When investing, question your instincts, especially when they're strong.
- Develop a thesis that goes against the crowd.
Investing in Distressed Assets
- Distressed assets offer the best risk-adjusted returns.
- They are undervalued because people's instincts tell them to avoid pain.