#51 - Getting paid in equity, COVID migration, $TSLA bubble, and White Claw's Canadian founder story.

  
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In this week’s episode, we discuss whether it ever makes sense to get paid in equity. We revisit the idea from last week that Tesla is way overvalued at this price and provide more context to that opinion. Lastly, we chat about the story of Anthony von Mandel, the Canadian billionaire behind Mike’s Hard Lemonade and White Claw.

On Spotify click these timestamps in the show notes to skip ahead in the episode.

  • Whether it makes sense to be paid in equity (2:25)

  • Why Tesla is overvalued (11:23)

  • Anthony von Mandel’s story (18:55)

Listen on AppleSpotify, or Google Podcasts.

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💸 Does it make sense to be paid in equity?


You may have heard stories like the graffiti artist who took equity as payment in 2005 for painting Facebook’s first office. The equity that originally settled a $60k bill would now be worth >$270m. Or Beyonce taking stock instead of $6m cash to perform at an Uber event in 2015 that would now be worth >$200m.

If you’re wondering what split of equity/cash you should be taking for compensation the book mentioned in this conversation is called “Pay Me In Equity”.


From an Amazon review:

"Pay Me In Equity" dives into three major components to equity as we know it in 2019.

The 1st component of Employer/Employee relations is straight forward, includes detailed information on types of equity offered, along with their pros and cons, and is an excellent guide.

The 2nd component is brave and new, as is deals with personal equity as it is holistically and visits the values of faith, health, ownership, etc., recognizing its key role in your journey toward equity and generational wealth

The 3rd and final component is titled the "magic & glue" is true to its subject title. You are asked to respond very honestly for the sake of success with your personal goals/plans toward equity and generational wealth. This section is realistic, honest and encouraging.

Spoiler: our take is that it obviously depends on the situation but if you can afford to, and your goal is to be rewarded for huge potential upside, shoot for at least a 50/50 split.

🧳 Where are people relocating to during COVID?

In the last newsletter, we referenced some migration data that was hard to interpret and also had a broken link. The interactive map below is from this post that has more context to the data set.


🔌 Why is Tesla overvalued?

A story in two charts from @charliebilello. Listen to the segment starting at (11:23) for more context.

🥂Who is the creator of White Claw?


In 1970 Anthony von Mandl was selling German wines primarily out of his car in Vancouver. At 31 he buys Mission Hill Winery in Kelowna thinking it was the biggest financial mistake of his life. I’ll let you read the rest in the twitter thread below or in this BNN article to find out what happens next.

🔮 Predictions:

*Not investment advice, for informational purpose only, full disclosure is at the end of the podcast audio.*

  1. From last week but again discussed here - the connected world will increase sprawl surrounding major cities. (benefactors include SRU.UN)

  2. The stock market, especially $TSLA is in a bubble.

  3. The number of employees taking equity as compensation will increase most immediately benefiting private companies like Carta and Captable.

p.s. If you have been forwarded this newsletter, click the button below to subscribe!

p.p.s. This week’s riddle:

I'm kind of like Instagram except for 122 years older,
print black and white memories to put in a folder.
Or lend me 10k in the last 12 months
and today, retirement is 200 thousand closer.

Answer from last week: The Bahamas

Enjoy the rest of your week!


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