Warren Buffetts epic annual event, Planet Fitness innovative real estate strategy, and almond milk vs. Dean Foods dairy

Automatic TRANSCRIPT

The. This is this is this stacks daily. It is based six and this is the best snacks daily. We've ever whipped up markets. Barely budged last what they were record high for easy stuff happened over the weekend. You got the jobs report on Friday, which was very strong employment lowest rate since nineteen sixty but then yesterday Trump announced slash threatened that China's going to get a whole bunch of new tariffs starting we're talking an extra twenty five percent on those things markets might freak out today. What a birthday present for my wife. Happy birthday, Molly say's day. Maya technically, we celebrated on Sankoh Demayo, aka Cinquanta, Molly. Molly goes way back to our freshman year. Middlebury college incredible story happy birthday, Molly. But three other wonderful stories. We got in the pocket I up Warren Buffett and his Berkshire Hathaway annual shareholder meeting happened this weekend. Pretty cool the burning man of investment events a little bit of Cirque du Soleil in there. We're going to break the whole thing down for you. Like, you're eighty eight years old all my God hit me. What's the second story is dean foods, this is America's largest dairy company? It's struggling it's losing to almond milk. Jack, I've got nipples. Third files story planet fitness announced its earnings its stock is up seventy five percent last year. We're fascinated by everything about especially one thing. It's real estate strategy. We will jump into that reminds us of nature show. Now before we hit all those stories checking we're doing research on boxes. Trying to find the perfect fast food box pet project passionate exhibit A is Burger King. Yes, they just launched last week anti happy. Now, this is not just a dig at McDonalds. They're called real meals, and they're getting it real emotion yet. They're point is that not every day is happy shocker like you have some real emotions, and you can express them in you're happy. And you can't just eat that away with eventually this five different anti happy box. And we go through the colors here in particularly include a whopper a soda and some fries and the first box is called the pissed box. Which in red second is salty. I like how that one's -til curd is sad which naturally is blue this one we're going to pronounce. Yes. It is purple because because sometimes you're pretty the last one is don't give an F and that comes in black now, this isn't just to McDonald's. They're doing this because it is a particular start of very particular. This is mental health awareness month and Burger King is acknowledging that you don't always have to pretend that every day is a great day and that you're happy, but you can express yourself through a nice indulgence with a Brown paper. King all about the fields in touch with emotion. Now, let's hit our three stories before we do. Listen to these keywords. Daily. We gotta get some legal out the way. Rain food is candy. They don't reflect the views of robinhood family. Gist. So. Securities is not a research report or investment advice. Netto security next business. LLC member famous last. For first story berkshire-hathaway just had its legendary annual shareholder meeting over the weekend. And this was all about Warren Buffett's it lasted for three days starting finish Sunday. I'm looking at the agenda here Friday. There was a little like shopping thing. You got to kick things off with that pick up in a cocktail. Everyone wants a nice gift Saturday was all bad speeches and Sunday was a lovely five Katie Chata, and it was some sweat. This is burning man for investment work. They were talking. A lot fewer sculptures less drug consumption, kind of same level of smugness. If you've got to be able to go. So we gotta say that what is Berkshire Hathaway so Berkshire Hathaway is like basically letting someone else invest for have you ever wished that? You could not have to invest in your smart, buddy. Could do it for you? Yeah. You had access to some wonder boy or girl, the wonderboy is eight years old his name, Warren Buffett, and he takes money from investors, and he buys stocks or bison tire companies and then at the end of every year, Warren Buffett and his team berkshire-hathaway look at a scoreboard single scoreboard. It is Berkshire Hathaway stock versus the S and P five hundred and they try to see did we beat S and P five hundred six of the last seven years Berkshire Hathaway stock which you can invest in is has done better than the s&p five hundred which is the rest of the Mark. Now, here's who's at the top of Berkshire Hathaway, you got Warren Buffett legend from Omaha. Nebraska warn and raised eight years old. Oy of the great depression. Then you got his side kick, which is vice chairman Charlie Munger coming in at what age ninety five. This guy was a World War veteran amazing hosted in Alaska, he was a meteorologist there. So these are both self made men by the way, and they built an empire of successful investing. Okay. So out of the three days, we didn't focus on the five K would info on the welcome gift, Jack. And I want to jump into what we thought were the fascinating six our interview with Warren and Charles one questionable investor asked Warren. He said, hey, you lawn musk and tesla they're thinking about adding their own car insurance like branch because they have so much access to date and Warren, basically laughed, and he said that company has no chance in auto insurance. Now, the reason he brought this up because one of the biggest investments. Berkshire Hathaway's made is in insurance. They also owned guy like one third of Berkshire Hathaway is insurance. Okay. So then the second big question that got asked had to do with craft Heintz that's been a hugely unsuccessful investment by Warren Buffett right down the. The value by like three billion dollars. Warren said that was actually a good company, but any investment can turn bad. If you pay too much, Jack wake-up stick down pillow. It's kind of like a motivational thing. You put on the mirror. I think they also touched on Wells Fargo. Yes, big is one of the biggest investors in Wells Fargo Wells, Fargo's become really big investing in scandals and warns response was several years ago. The Los Angeles Times wrote an article, basically illustrating these sketchy sales practices that have caused Wells Fargo all the problems and then verbatim. Warren Buffett said management ignored that article. They should have. They should not have now. This was the big kick. This was the thing. Everyone was curious about Amazon Amazon's Jeff Bezos, Warren Buffett's, Berkshire Hathaway just made for the first time ever this legendary investment company their first investment Amazon. Warren is a simple, man. He was raised like eating corn inequalities. He's doing these calculations. Right. You know, and so Amazon whole business model has been a little too confusing. Little too complex. So he hasn't invested. But warned said Jeff Bezos has achieved a miracle any tends not to invest in companies that require then Warren being worn kicked it up a notch and said, you know, what he would like a blood transfusion with Jeff basis. He wants punch. We wish we were making that up. We're not, but we respect the on. So this isn't the first investment intact by Berkshire Hathaway, they also invested forty billion dollars in apple and they also admitted that they missed out on Google. Instead, they screwed up. They should have invested in literally said that so Jack what is our takeaway for our buddies over? Berkshire and our good buddy worn it's time to start thinking about the post Warren berkshire-hathaway now ages remember warn is eighty eight and his vice chairs ninety five those are the two leaders, and they're both going to be retiring soon, we they've got an army of disciples who've been trained by Warren is a legendary mentor now young managers are the ones who convinced him to invest in apple and Amazon said that that's a sign of the future. But honestly, you cannot. Teach the instincts that Warren cultivated in that cornfield during the great depression for our second story planet fitness just released earnings, but we found a fascinating story in its real estate found a fascinating story about where it's based Nashua. New hampshire. Fantastic. I know this company because of the commercials that say this is a judgement free, fitness. And you're right. It's the kind of gym where like typically go to the gym really pushing to get that extra Repin. You don't need to get that last rep plant just goes get the last set, what are you still doing the explicitly ridicule like huge meat heads who had thrown waits around commercial? It's a great place for socializing. I noticed last month. They announced that teens fifteen to eighteen years old can work out for free and planet, fitness all summer, very nice giving back to the kids. So the company is expanding quickly. They just announced some pretty big numbers last quarter. They opened sixty five new gyms, which is up to seventeen hundred nationwide. Now, the revenues are growing faster up twenty three percent, and they're really really caught onto some pretty Kice. Well, one key thing we noticed is that this wellness trend. We like to talk about on snacks daily. It's expensive. Oh, yeah. It's not cheap those Lululemon pants talk about they cost like one hundred twenty bucks. I'll say you both your thrown back twelve bucks throwing some extra almonds and coconut that's like a whole like lunch for three. That's a budget. You need to allocate now fitness has caught onto that trend. But they're doing it at cheaper priced ten bucks per month is the entry level membership that planet and they've caught on. So well, the stock is up seventy five percent in the last year stock has been seriously blowing up since it's two thousand fifteen now it barely budged after last week's earnings report. So we dug a little deeper and found a fascinating storyline fitness company is indirectly benefiting from what Amazon is doing. Okay. Get this. If you're Google planet fitness new locations using Nick just did. This was classic snack style right here. Found a new location opening up in Rockland, Maine, and I jumped at this story because I bend Rockland. Maine. He's a rocker crowd new Englander here. The ferry takes off divinely. And I noticed there's this JC Penney plaza. It's been shut down for a couple of. It's really big. It's a ghost town out. It's one hundred fifteen thousand square feet and guess who's moving in planet, fitness exactly it'd been vacant for two years. So it probably got that real estate for like nothing turns out when you look a little deeper planet fitness has been doing this all over the place as seventeen hundred locations now, and it's been expanding into places that used to be retail stars that have died in the age of Amazon, basically with the retail Pakalitha. It's opening up new opportunity. Another great example Kohl's Kohl's has average store size of eighty thousand square feet, and they really want to boost their wellness sales. So they're actually going to take a quarter of their store. Twenty five thousand feet and rented out to planet fitness land in his jumping into where the retail Pakalitha says hurt retailing rent for super cheap and Kohl's will benefit because people are gonna grab a protein shake on the way out. So Jack, what's the takeaway for our buddies who are micro benching over at planet, fitness chaos. Creates opportune. Now this business line retail has been hurt badly. But with that big hurt has come a big opportunity. Gyms gyms are coming in and taking up the space that retail use to Ocoee. So it's writing that retail pockets Trent just like it's writing the wellness and wouldn't have expected this for third and final story, dean foods, the United States is largest dairy producer might be selling the farm. I've got some conflict of interest this story about dairy diet. This is hard for Jack. He's sitting down sweating Vermont big dairies day. I was raised by my dad telling me that milk does a body. Good. Jack was baptized in a bowl of like leftover lucky charms Milton. That's mostly true. So dean foods is the biggest milk manufacturer in the US is fifty eight manufacturing facility, that's concerning term, which I think just means dairy farm. So we're across nine states. They make milk half-and-half ice cream butter sour cream. They got like fifty brands that you've been running across in the aisles here. What else they got friendlies is their brand land of lakes butter is their brand love. That Owen their derelict farms the classic. This is all dean foods and back. Surti other local milk brands, you probably know if you're from now, they report earnings later this week, but we did find out over the weekend. In a Wall Street Journal article was that thirty eight percent over the last ten years. That's how much their sales are down. And they've brought in investment bankers, which is not a good sign. They're considering spinoffs or breaking itself up or selling the farm. If a company invites in a bunch of bankers, they're gonna be doing something big. It's either really good or really bad thing. And it's definitely not good for not just like a lunch situation. All right. So we're going to break this down about what's going on with dean foods dairy from the demand side. And the supply on the demand side veganism is not good for dairy dairy. If you're vegan literally conscious eating trends in general. That's not good for dairy either. Because most milk is produced on like factory style. Big corporate sill, you got more people realizing, they're allergic. You got like ultra pasteurized Mel, which basically just means highly processed. Milk. And then boom, you've got the rise of the alternative milks here. Oat milk, which Nick loves almond milk, which my fiance, loves flax milk, which is apparently a thing. I know I would say than any of these milk similar to your baptism demand. For dairy is down as my fiance says no other mammals, drink milks true asked babyhood. She has the shirt for them. Now on the supply side, interestingly politicians, love dairy, farmers at Iowa New Hampshire big dairies to and those are big political states and that has driven subsidies for the dairy industry, but get this. Here's the weird chart situation. You've got demand falling on the one hand supply, though is rising. It doesn't match market forces. But due to the political support milk production has been up ten years in a row in the United States. So Jack, what's the takeaway for our buddies over at dean foods milk, gene, foods, businesses and looking good? But it stock is a pure play dairy investment. Sometimes it's like it's hard to invest in. Trent you see a trend out there. But you can't see a company that just embraces. Here's some trends that you might be interested botox cord cutting autonomous self driving cars. The gig economy wellness brands, there you get sometimes hard to find a company that perfectly fits those things. But here's the fast anything about dean when you look at its business model ninety six percent of it is dairy product. So when you're looking for an investment in your thing and wanna find like the dean foods of Derry, right and dean is all over milk in a way that almost looks unhealthy. Like it's upset just wrap things up for dean. They have invested and they own majority stake of good karma, which is a flax milk company. One of these smaller of the alternative milks kind of the younger cousins. So they made it maybe a little eight Jacky whip the takeaways for. I'm still thinking about a Vermont baby boy getting baptized in whole milk. It's an image everyone. So Berkshire Hathaway has beat the s&p five hundred again last year. But investors are wondering about the post Warren era. We're waiting for invite. But we'll just wait another planet fitness benefiting from chaos in retail. If you see a mall closing it may be getting treadmills and finally dean foods is not loving the milk alternative trend, but it is a pure play investment in Derry and few companies are time for snack today. This whipped up over the weekend. Poza Kentucky, Derby hosts, Kentucky, the Kentucky. Derby is the kickoff of the triple crown horse racing events things going, including if you mentioned also gender neutral, they allow guy horses and female horse. We're talking colts and Phillies, but interesting distinction here between the two the horses. Must carry a jockey of a certain weight now right Colt is a male horse. It must carry a jockey one hundred and twenty six pounds, and for the Phillies the maximum is eight hundred twenty one for their jockeys way less than that they need to carry weights in their pockets because one twenty six and one Twenty-one is how much they must carry now. Pro tip in case, you're thinking of jump. On a horse for one of these things that weight that you'd throw on actually a little less efficient. They say that dead weight is heavier than living dime. Everytime. I've heard that we loved having you guys on the podcast remember to help keep snacks daily growing. You can go down and drop a rating in your tunes fell. Help get us notice. We loved potting with you today. We'll poverty can't with the Robin Hood snacks podcast. You just heard reflects the opinions of only the host who are associated persons of robinhood, financial LLC and does not reflect the views of robinhood markets Inc. Or any of its subsidiaries or affiliates to podcast for informational purposes. Only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robinhood, financial LLC, member FINRA SIPC.

Coming up next