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- [00:01]
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This is Scott Becker with the Becker business and the Becker Private Equity Podcast. Today's discussion is Peter Lynch, Fidelity, Netflix, Starbucks, and more. So, so here's the deal and, and this really revolves back to Peter lynch and Fidelity. Back in the day, Peter lynch was the most famous sort of investment manager, mutual fund manager in the country. He was the big star at Fidelity for a very long time. He wrote a very famous book on investing. And I'll get the title of that book. I'm striking on it for a second, but I'll have it by the end of the podcast. But the core concept of his book was that in doing investment research, you look at really two big things. One, if you're a consumer, your instincts about the consumer experiences you have. And two, then deep, deep research about, you know, about the company. And so he would say, you know, if I'm going to Starbucks a lot and I'm loving the experience, why, I'd at least think about that as a concept of whether or not I should invest in it. And again, Peter Lynch's most famous book was called One up on Wall Street. And his concept was, you know, if you have these consumer experiences, then you also do a deep dive, but you sort of follow those. So in my own experience, again, I, like Restoration Hardware, had an absolutely horrendous experience there in how they treated the customer. And so what would lead me to be instinctively against investing there? Starbucks has said, I'm a regular Starbucks person. I'm also a regular coffee shop person. Has been a ton of different coffee shops. Starbucks is one of these places where it's just getting better and better. Again, you know what you're getting. There's all these random coffee shops that I love, but Starbucks, I know for my cold brew in the morning, it is great. The staff knows what they're doing. The app works great. And again, it doesn't mean that Starbucks is a great investment, but it means to be a starting point for thinking about investing. I saw this past week that Netflix got crushed, went down 10 or 12% the other day. It's down 47 over the last year. And it reminds me of the Peter lynch thing because again, we're at a spot where there is nothing exciting about Netflix right now. And it doesn't mean it won't be great again, but there's nothing that's must see TV on Netflix right now. And you can see the lack of excitement there, the lack of, you know, new subscriber numbers and so forth. Probably similar with the Peloton. You know, nobody uses the Peloton anymore. It's down 99% over the last several years. But you could sort of see that as the consumer trend moved away from it. I hearken back to this Peter lynch thinking. I, I find it so fascinating. I, I find it resonates with me in so many ways. And again, it's not that it's not that it's a perfect test at all. It's a starting point. You know, years ago I did buy a lot of stuff at Lululemon. I like some of the shirts then for Gears. Their stuff was shit, was garbage all of a sudden. There's a couple things there that are appealing again. I go to buy shorts, I go to buy some other stuff. It's been very hot in Chicago this summer and I find it fascinating to sort of look at this and think about does that possibly lead to the conclusion that it might be a good investment? And again, this is all Peter Lynch's thinking. I absolutely love it. In any event, thank you so much for listening to the Becker Business and the Becker Private equity podcast. And God bless Peter Lynch. Just a brilliant, brilliant, very fascinating person and interesting and a good, good person, I believe. Thank you so much for listening.
- [04:03]
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