Rich Habits Podcast — “Labubu Dolls, Record-High Corporate Bankruptcies, & Chamath's $250M SPAC”

Hosts: Austin Hankwitz & Robert Croak
Date: August 22, 2025

Overview

This episode of the Rich Habits Podcast dives into three major headlines from the week: the explosive profits behind Labubu Dolls and Pop Mart, a spike in corporate bankruptcies, and Chamath Palihapitiya’s new $250M SPAC. Austin and Robert dissect what these mean for investors, businesses, and everyday consumers, tie them into broader finance and investing habits, and field small business questions—from launching a Mexican restaurant to building online education revenue streams.

Main Topics & Key Insights

Pop Mart & Labubu Dolls: Riding the Trend Craze

• Pop Mart’s Performance:
  • Profits up 400% in the first half of 2025.
  • Shares surged 240% YTD, mainly due to the Labubu plush doll phenomenon.
  • Revenue tripled to almost $2B, with plushes selling for $30–$200 each.
• Insight: Be an Owner, Not Just a Consumer
  “If you shop at Amazon, you also have stock in Amazon. If you ride in Ubers, you have Uber stock.” (Austin, 01:36)
  • Lesson: Don’t just participate in trends as a consumer—look to participate as an investor. Consider if the companies you spend with are public, and build stock ownership habits.

Record-High Corporate Bankruptcies and What Lies Beneath

• Statistics:
  • 446 large US corporate bankruptcies filed YTD, up 12% above pandemic levels.
  • Categories hardest hit: Industrials (70), Consumer Discretionary (61), Healthcare (32), Energy (4).
  • Notable bankrupt brands: Forever 21, Joanne’s, Rite Aid, Party City, Claire’s.
• Economic Context:
  • Tariffs are straining key industries, raising concerns of job losses.
  • “Small businesses... employ 62 million workers, making up 46% of all American employees. They are the backbone of this country.” (Austin, 03:17-04:13)
  • Inflation ticked up: wholesale inflation up 0.8% month-over-month; Core CPI above 3%.
• Fed Outlook:
  • Rate cut odds dropped from 95% to 64% in one week.
  • “Buckle up. The stock market is going to have some wild swings as the Fed navigates all of this information and what to do coming in September.” (Robert, 05:39)

Chamath’s $250M SPAC Filing: The Return of Blank Check Companies?

• SPAC Refresher & Risks:
  • SPAC = Special Purpose Acquisition Company, a shortcut for companies to go public.
  • Most 2020-2021 SPACs lost value: “Literally 95% of them either went bankrupt or their stock price went down 90% or more.”
    — Robert (07:45)
  • Some exceptions: Hims & Hers Health, DraftKings, Rocket Labs, SoFi have seen success.
• Chamath’s New Venture:
  • American Exceptionalism Acquisition Corp. A: $250M IPO for energy, AI, DeFi, and defense.
  • Chamath states:
    “I believe the biggest gains in the future will come from companies that are involved in fixing the fundamental risks that come from our interconnected global order while reinforcing American Exceptionalism.” (Austin quoting Chamath, 09:10)
  • Takeaway: “Be careful, please... if the company was really trying to succeed long term, why would they not just do the IPO process on their own rather than getting rolled up in a SPAC?” (Robert, 09:24)

Rapid Fire Headlines

Austin’s Picks

1. Meta’s AI Hiring Freeze:
   Meta halts AI recruitment, reorganizes teams after big hiring and costly signing bonuses. The move comes amid broader market doubts about the “AI boom.”
   (10:00)
2. FanDuel + CME Group Partnership:
   FanDuel teams up with CME Group to let retail investors bet on financial market outcomes—a new type of “event wagering” that sidesteps sports-betting bans in some states.
   (11:17)
3. Walmart Tariff Trouble:
   Walmart earnings reveal rising tariff costs—some absorbed, others passed to consumers.
   “In Q2 Walmart will be passing on some of these tariff related costs to their consumers and unfortunately it will hit the middle and lower income shoppers.” (Austin, 12:40)

Robert’s Picks

1. SoftBank $2.5B Intel Investment:
   • Intel admitted it missed the AI chip wave but is pivoting to “edge AI”—fast, local processing crucial for automation (e.g., autonomous vehicles). Tariffs could benefit Intel, as a US manufacturer. (13:00)
2. Alcohol Consumption Hits 90-Year Low:
   • Only 54% of Americans drink alcohol, per Gallup.
     “This is the opposite of a secular growth trend, maybe a secular growth demise.” (Robert, 13:53)
   • Trends shifting toward non-alcoholic beverages, run clubs, wellness.
3. US Manufacturing Rebounds (Slightly):
   • Manufacturing activity at a 39-month high, but rising wholesale inflation from tariffs could be headwinds. (16:40)

Notable Quotes & Moments

• “The only way you'll ever be able to retire is if you are an owner and not just a consumer.”
  — Austin, discussing investment habits (01:36)
• “Unprofitable Russell 2000 companies rose to 43%, the most since 2020... Even exceeds 41% in 2008.”
  — Robert, on the risk of small-cap stocks (04:13)
• “Jobs contracting, inflation's rising, and nothing is going the way Jerome Powell wants.”
  — Robert, on the Fed’s conundrum (05:39)
• “If the company was really trying to succeed over the long term, why would they not just do the IPO process on their own, rather than getting rolled up in a SPAC?”
  — Robert (09:24)

Listener Q&A: Small Business Deep Dive

1. Should I Open a Mexican Restaurant? (19:37)

• Listener: Hector Yu
• Robert’s Advice:
  • Avoid huge menus; focus on quality, simple offerings.
  • If new to restaurants, buy/retrofit an existing failing location—it’s faster, less risky than starting from scratch.
  • Find an experienced operating partner; don’t go it alone.
  • Don’t quit your six-figure job upfront. Set firm goals for the business and a “return point” in case it fails.
  • “Do not fall for that cycle of just always trying and trying... Set a date, set a clear goal.” — Austin (22:01)
• Personal Story: Robert kept his finance job while renovating and reopening his family’s restaurant, only quitting once the business succeeded. (23:50)

2. Building Online Education & Community Ecosystems (24:47)

• Listener: Sam (healthcare entrepreneur)
• Austin & Robert’s Blueprint:
  • Start with value at scale: free podcast, newsletter, accessible pricing for community.
  • Ecosystem = podcast (wide net), newsletter (insights, list-building), paid community (deeper engagement).
  • Use platforms: Beehive (newsletter), Zoom (live streams), simple course hosting.
  • Avoid trying to “be everywhere” at once—pick one platform to focus on first, then expand.
  • “Social media marketing is not the girl at the front desk doing Instagram. Eyeballs are the biggest commodity you can have.” — Robert (29:30)

3. Pursuing Business Ownership While Raising Young Kids (30:21)

• Listener: Anonymous (“Sam”)
• Austin & Robert’s Advice:
  • Start by reflecting: “What really doesn’t feel like work to you? How can you provide value at scale?” — Austin (32:00)
  • Explore “boring businesses” for sale that match your service or management skills—many are available as boomers retire (BizBuySell, LoopNet, etc.).
  • Consider owner-financing or taking over existing businesses rather than building from scratch.

Timestamps for Major Segments

• Pop Mart/Labubu Trend: 00:44–02:35
• Bankruptcies & Economic Context: 02:35–06:11
• Fed, Inflation & Market Risks: 04:55–06:11
• Chamath’s SPAC & SPAC Risks: 06:11–09:44
• Rapid Fire Headlines (Austin): 09:44–13:00
• Rapid Fire Headlines (Robert): 13:00–18:23
• Q&A: Mexican Restaurant 18:23–23:50
• Q&A: Online Education Business 24:47–30:21
• Q&A: Business Opportunities w/ Kids 30:21–34:23

Tone & Closing Thoughts

The episode is brisk, analytical, and hands-on—combining macro news, practical investing habits, “watch out” warnings, and honest, grounded advice for business owners. Austin’s perspective is eager and tech-savvy; Robert’s is seasoned with decades of operational experience. The final message: value at scale wins, diligence and caution are critical, and ownership—not just consumption—fuels long-term wealth.