Unhedged We take some questions
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Dec 23, 2025 Listeners are treated to intriguing insights of why companies obsess over their share prices, driven by incentives and borrowing costs. The discussion also delves into UBS's potential relocation from Switzerland and frustrations with EU regulations. They tackle the muted market effects of geopolitical shocks, like U.S. actions in Venezuela, and explore the controversial realms of prediction markets. Additionally, they humorously analyze the pitfalls of gift cards while dreaming of crypto islands for libertarian colonization.
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Why Share Price Actually Matters
- Companies care about share price because it affects executive pay and incentives.
- A high share price also acts as currency for acquisitions and cheaper capital access.
Stock Price As Corporate Currency
- A high stock price gives companies a valuable 'currency' but makes them vulnerable to fickle investors.
- Private equity can shield firms from short-term market pressures to do hard restructurings.
Be Cautious With Prediction Markets
- Be cautious about broad 'financialize everything' prediction markets due to gaming and insider advantages.
- Use regulated financial instruments like inflation swaps for indirect bets rather than naive event markets.