🍋 Gucci > Nvidia

How the secondary luxury market became worth over $1T, plus Apple got upgraded.

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 "Know what you own, and know why you own it." — Peter Lynch

 

Good Morning! Apple Watch no longer has the blood oxygen feature, but Bank of America is going against the tide and has upgraded the stock, seeing a nearly 25% upside. Private lenders are going public after their valuations jumped. Bitcoin dropped to lowest level since ETF approval. Reddit is seeking to launch an IPO in March. Plus 7 habits that boost emotional intelligence and the wrong way to define productivity.

We are looking for Wall Street reps. If you work at a bank or fund, apply to be a Wall Street rep here. This will be a great opportunity to keep a pulse on the Street and meet like-minded professionals.

SQUEEZ OF THE DAY

Gucci > Nvidia

If you have any hand-me-down Gucci bags tucked away in your closet, you might be sitting on one of the hottest asset classes of 2024. 

The secondhand luxury market has become all the rage over the past few years.

Shoppers have dropped $1.3 trillion on new luxury goods over the last four years. And now they’re turning to sites like The RealReal and Vestiaire Collective to cash out on their purchases.

In 2023 alone, we saw secondhand luxury products worth $49.3 billion change hands. 

Some investors are all-in on luxury goods as a hedge against stocks. And some are eyeballing platforms like WatchCharts, trying to decide which luxury brands to snap up or ditch. They're using resale data to gauge everything from brand revamps to the impact of price hikes.

But some of the big brand names are starting to worry about potential fakes flooding these platforms. And some designer labels aren’t holding their value, and the companies behind them aren’t happy. 

Takeaway: There’s no need for your luxury items to sit in a closet collecting dust - it’s easier than ever to test the market and see what you could collect in cash. But don't rush to invest in these resale platforms just yet. Take The RealReal – their shares have plummeted over 90% since their IPO in 2019. In this unpredictable world of luxury trading, your old Gucci might make you a small fortune, or end up being a posh place to store your old interview notes.

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HEADLINES

Top Reads

  • Private lenders are opting to go public after valuations jump (BB)

  • Bitcoin drops to lowest level since ETF approval (YF)

  • Blackstone and BlackRock master the art of moneymaking (BB)

  • A huge private equity tech investor predicts who will win the AI wave (YF)

  • Spirit Airlines could be forced out of business following JetBlue deal collapse (CNN)

  • Reddit seeking to launch an IPO in March (CNBC)

  • Regional banks still have plenty of problems (YF

  • JPMorgan fights off 45 billion hacking attempts each day (CNN)

  • Blackstone’s BAAM unit returns 6.9% in 2023 (YF)

CAPITAL PULSE

Markets Rundown

Stocks closed higher after bullish chipmaker sentiment, an upgrade for Apple.

Movers & Shakers

  • (+) Hertz ($HTZ) +8% after Morgan Stanley upgraded the rental car company.

  • (+) Apple ($AAPL) +3% after Bank of America upgraded.

  • (–) Humana ($HUM) -8% after the insurance company reported higher-than-expected medical costs during Q4.

Private Dealmaking

  • Sekisui House bought MDC Holdings, a homebuilder, for $4.9 billion

  • NewMarket bought American Pacific, a chemicals manufacturer, for $700 million

  • Sun Pharma bought a 21.5% stake in Taro Pharmaceutical for $348 million

  • Everphone, a phone-as-a-service provider, raised $293 million

  • HashKey Group, a crypto exchange operator, raised $100 million

  • Digital Onboarding, a customer engagement platform, raised $58 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

BOOK OF THE DAY

The Boys

“What was it like to grow up on TV?” Ron Howard has been asked this question throughout his adult life. in The Boys, he and his younger brother, Clint, examine their childhoods in detail for the first time.

For Ron, playing Opie on The Andy Griffith Show and Richie Cunningham on Happy Days offered fame, joy, and opportunity—but also invited stress and bullying. For Clint, a fast start on such programs as Gentle Ben and Star Trek petered out in adolescence, with some tough consequences and lessons.

With the perspective of time and success—Ron as a filmmaker, producer, and Hollywood A-lister, Clint as a busy character actor—the Howard brothers delve deep into an upbringing that seemed normal to them yet was anything but.

Their Midwestern parents, Rance and Jean, moved to California to pursue their own showbiz dreams. But it was their young sons who found steady employment as actors.

Rance put aside his ego and ambition to become Ron and Clint’s teacher, sage, and moral compass. Jean became their loving protector—sometimes over-protector—from the snares and traps of Hollywood.

By turns confessional, nostalgic, heartwarming, and harrowing, The Boys is a dual narrative that lifts the lid on the Howard brothers’ closely held lives. It’s the journey of a tight four-person family unit that held fast in an unforgiving business and of two brothers who survived “child-actor syndrome” to become fulfilled adults.

“Time moves more slowly when you’re young, because life is still new to you, a process of discovery.”

DAILY VISUAL

The Bachelor’s Degrees That Really Pay Off

Bachelor’s degrees with the largest mid-career median salaries in the US in 2023

Source: Statista

BUYSIDERS AWARDS

In the latest edition of Buysiders, we recap the best deals of 2023 across all major categories. This was no small feat, there was a flurry of deals across the year, with over $40B being announced in the final week of the year.

Think of this as Wall Street's version of the Oscars. Whether you nod in agreement or shake your head in dissent, we unveil our picks for the 2023 Wall Street Oscars across these major categories:

  1. M&A deal of the year

  2. PE deal of the year

  3. IPO of the year

  4. Private Credit deal of the year

  5. Honorable mentions

Access the full Wall Street Oscars here.

DAILY ACUMEN

NSDR

In the hustle of modern life, the concept of "non-sleep deep rest" emerges as a counterbalance to our fast-paced routines.

It involves intentional, mindful breaks that provide rejuvenation without requiring sleep. Picture moments of solitude, deep breaths, and perhaps a brief escape from the incessant demands of the day.

Non-sleep deep rest is an oasis for the mind, allowing it to recharge without the need for slumber. It's a deliberate pause in the constant motion, offering mental clarity, reduced stress, and a chance to reset.

Embracing these restful interludes can be a crucial tool in maintaining well-being amid life's relentless demands.

ENLIGHTENMENT

Short Squeez Picks

MEME-A-PALOOZA

Memes of the Day

 

 

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