🍋 Cry Me a Yacht

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Short Squeez
November 24, 2021

Together With

"What looks like skill is often just consistent discipline." – Shane Parrish

Good morning! The $1 store is now the $1.25 store. It's been a fun run of 35 years of $1 prices but Dollar Tree will now price most items at $1.25. While NYC nightlife seems to have somewhat bounced back, its job recovery is lagging behind other major US cities, as it continues to suffer from the loss of tourism jobs. The city had regained 56% as of September from pandemic lows, worse than the Northeast region’s median rate of 69% and the nation’s major metropolitan figure of 71%.

Hope y'all have a wonderful Thanksgiving and don't forget to register for the last few spots at the Shaka Club x Overheard on Wall Street Holiday Party (aka the "Holiday Board Meeting") the following Saturday, December 4. The party will be at the gorgeous McKittrick Hotel, with an open bar and great group, including the Short Squeez team!

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1. Story of the Day: Cry Me a Yacht

While you might be worrying about the price of Turkey on Thanksgiving, the ultra rich are facing worries of their own – price hikes on yachts, mansions, watches, private jets, which are all in short supply and high demand.

Yacht broker, Trenton Carroll, says it was typical for him to have up to $10 million worth of inventory at any given time and it could take six months to make a sale. Now he rarely has anything in stock; the other week, a pre-owned sailboat was snapped up, sight unseen, 12 hours after he listed it.

“I’ve got boats sold out to 2023 that won’t be here for a year and four months, and yet people are willing to wait because they know there’s nothing else around," said Trenton.

In October, there were 323,000 private jet flights, the busiest month on record. NetJets, the world's biggest private jet company, is going to extremes like suspending jet card sales and hiking prices to turn people away. 

Art is wylin' too. Last week a painting at Sotheby's auction sold for $3.2 million, over 10x its high estimate. 

Sales at Christie’s, Sotheby’s and Philips totaled $2.65 billion over the course of the last two weeks, smashing the all-time record for fall sales of $2.59 billion in 2014.

Short Squeez Takeaway: The post-pandemic American economy is boomin' with demand for literally anything through the roof. Demand combined with supply chain shortages pushed inflation to a record 6.2% in October, a record in over 30 years. With the wild times showing no signs of stopping, looks like inflation will also keep mooning. 

Source: Axios, LA Times

2. Markets Rundown

  • Tech stocks ended lower on Tuesday as Treasury yields extended a rise, but the S&P 500 snapped a two-session slide to end higher, powered by gains in energy and financial stocks.

Movers & Shakers

  • (+) Dollar Tree ($DLTR) +9% after the company reported its latest quarterly results.

  • (+) J.M. Smucker ($SJM) +6% after the company reported quarterly earnings beating estimates.

  • (–) Zoom ($ZM) -15% after the video-chat company warned investors of a revenue growth slowdown.

3. Top Reads

  • How to value digital assets? (Caia)

  • The age of funcertainty (TRB)

  • Coin worth $0.00004893 highlights crypto’s wild decimal frontier (Bloomberg)

  • The Ford F-150 lightning will be able to charge other lightnings (TheDrive)

  • At Harvard, cheap Wall Street buyout funds take on a $4 trillion industry (Bloomberg)

  • Two things that are both true (AWCS)

  • Big media strikes back at Substack (Axios)

  • Supply-chain problems show signs of easing (WSJ)

  • Super rich as miserable as Succession makes out (Guardian)

A Message From Masterworks: Hedge Funds Started Buying Bitcoin at $497 

Now they’re pouring millions of dollars into the next untapped asset class: blue-chip art. What do they know that you don’t? 

Check out these juicy stats:

  • Contemporary art prices outperformed S&P 500 returns by 174% from 1995-2020

  • Total wealth in art is projected to explode by another $1T by 2026

  • Over two-thirds of billionaires allocate more than 20% of their overall portfolio to art

No wonder the Wall Street Journal declared that “art is among the hottest markets on Earth.” 

But unless you have $50,000,000 to build a collection of art yourself, you’ve been locked out of this under-the-radar investment. Until now. 

Masterworks lets you invest in multi-million dollar artworks by artists like Banksy, Basquiat, and Picasso at a fraction of the entry price. With over 270,000 users, Masterworks is the only alternative investing platform valued at over $1 billion.

Get in before the rush and skip their 35,000 person waitlist with this Short Squeez link today.

*See important disclosures

4. Book of the Day: I Give The Dumb Kids Hope

How does the kid who barely got out of high school, dropped out of college, and could only keep a job as a busboy and lawn maintenance laborer, go on to co-found multiple companies worth hundreds of millions of dollars and quit working at the age of forty-two?

This book is about the hard-fought life lessons the author has learned in the past 55 years fighting for himself and the world. It's chockfull of hard-won experiences that you can also share with your kids to help them direct their ultimate futures.

I Give the Dumb Kids Hope teaches that what you do with your life is still up to you. You can take these lessons and apply them to your life to become more than you are today--even when the deck seems to be stacked against you.

“Yesterday I was clever so I wanted to change the world. Today I am wise so I am changing myself.”

5. Short Squeez Picks

6. Career Portal

Welcome to the Overheard on Wall Street Career Portal that will feature the best jobs in finance & crypto.

We currently have 70+ roles curated for you. From investment banking internships to private equity roles to strategy/development jobs in crypto. No more spammy jobs on LinkedIn and annoying emails from headhunters. 

If you are looking to hire a candidate and want to post a job, just click on "Start hiring" on the top right corner of the Career Portal.

7. Daily Visual: How Lyft is Impacting Drunk Driving in US

Source: Axios

8. Daily Acumen: East India Company

"One of the biggest, most dominant corporations in history operated long before the emergence of tech giants like Google or Amazon. The English East India Company was incorporated by royal charter on December 31, 1600 and went on to act as a part-trade organization, part-nation-state and reap vast profits from overseas trade with India, China, Persia and Indonesia for more than two centuries.

Its business flooded England with affordable tea, cotton textiles and spices, and richly rewarded its London investors with annual returns as high as 30 percent. At one point, this mega corporation commanded a private army of 260,000 soldiers, twice the size of the standing British army.

That kind of manpower was more than enough to scare off the remaining competition, conquer territory and coerce Indian rulers into one-sided contracts that granted the Company lucrative taxation powers. The wild success of the world’s first multinational corporation helped shape the modern global economy, for better or worse."

Source: History

9. Memes of the Day

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