The Long Run Show Benzinga Podcasts

In this farewell episode of The Long Run Show, we are going to be talking about what stocks are must-haves when end of the world comes and the markets are open.
Hosted By:
Austin Willson
Michael O'Connor



Support this podcast at — https://redcircle.com/the-long-run-show/donations

In this farewell episode of The Long Run Show, we are going to be talking about how you should manage your personal monatery policy.
Who is the Jerome Powell in your brain?
Hosted By:
Austin Willson
Michael O'Connor


Support this podcast at — https://redcircle.com/the-long-run-show/donations

Guest:
Marc Bell - Chairman, Chief Executive Officer and Co-Founder
https://terranorbital.com/
Hosted By:
Austin Willson
Michael O'Connor

It's Marc Bell, chairman and CEO of Terran orbital. How are you doing today, Marc? I am doing great. And so thank you for having me. Great to have you we'll first off the bat. I would love to just learn a little bit about Terran, like the name, the stories around it before we jump into too much long-term stuff.

I just want to know about you guys. Terran orbital started, I started in 2013 and I started as a vehicle. To acquire companies that were working in space. I'm a lifelong Trekkie. So there was 10 years old, always fascinated with space, always wanting to go to space. At some point I realized they weren't putting middle-aged overweight Jews into space.

So I decided to go ahead and start buying companies that I could build things to put into space that don't include myself. And it's been a dream come true. It is, we are now building satellites and we're solving problems from space. And we're the guys who helped invent the cube set. So we're all this whole new space revolution that everybody talks about.

It's all our fault. And so all these new startups and everything else, they're all there because of the technology that we created, a company we bought called tie-back because was about. Austin has a question too. It sounds but I right off the bat, the first question I can think of which you touched on already, like the go space revolution since you guys are right in the thick of it, you've started it.

When did this begin? Because we see at least for me, and I think other people in my generation, we see videos of the space shuttles, and that, that kind of felt like the big thing. And then things seem to sleepy for awhile, but it seems like there's been so much going on in the background to make everything that's going on now actually happen.

What's been going on. Two guys, a guy named Dr. Jordan pug Suare who was a college professor and Bob Twiggs called professor about 13 years ago, invented educational demonstrator called the cube set. This was a satellite. You can hold in the Palm of your head. And the point was to demonstrate that you don't need to build big satellites to do big things.

And if you think about it, you mentioned the space shuttle, your iPhone or Android phone that you hold has more computing power than the space shuttle did. And so things have changed dramatically. And so what used to cost a billion dollars to build? You can outdo for 10 million, but that was the only part of the chip sets costs a lot less.

So cubes. Open the door, but you still had to get these things to orbit. Then came along space X and space X made it affordable to go to space. So between us making payload, making the satellite sheep and space X, making the rideshare. A whole revolution was created of small sets. And now that you hear people talking, the government talks about how 50,000 satellites are going to get launched over the next 10 years.

And if you put that in perspective, you may be have like 14,000 thousands of satellites launched over the past few. Wow. Those are some impressive numbers. That's a lot of, that's a lot of stuff flying up into space around us is is that gonna be a problem? That's my one question. The good news is there's a lot of space in space

you have on earth. You have 40% of the planet is covered by land the, of. You have 3.2 billion cars and on a single plane in space, you have 43,000 miles of Y that 40,000 miles of planes. You have a lot of highways, a lot of roads of space that you could travel. And then what times objects tend to hit each other is when it's intentionally done.

When people want to demonstrate how smart they are, that they can create space junk and. And for those of you who are listeners, if you look at the TV show quark from 1977, you'll get a good laugh, but that was a space, garbage truck. And that's what we need today to clean up al

Guest:
Stuart Winchester  
CEO & Founder at Marble
Hosted By:
Austin Willson
Michael O'Connor

BZ: Can you explain what Marble does?

S: Over the years, Incredible progress in centralizing standardizing, and making more convenient, the methods of organizing these things for the household and insurances in the last to fall, it's still very balkanized.

You have individual carrier applications or it's in your inbox or email. And I saw this because I used to work in a mortgage company and no matter how much technology we deploy still. Shorten the window. It took to get the right insurance information for the mortgage because people just didn't know where it was, what the sand, what they had, who had it.

So we built this one hub for all your insurance and all your risk. And then we've layered this rewards element in it because rewards in insurance are really not, is also not really a space that's been pushed into. So consumers can have rewards for uploading policies, referring friends, telling us about their assets, their plans and then, cool stuff down the line that we have planned with.

Insurance it's highly regulated industry. Like a lot of, financial industries, but particularly in insurance, there's been this historical concept of rebate law, which still exists.

And that it's, it started for very good reasons in that. Life insurance agents back in the day would give big discounts, typically funded from their commission to people who they want to sell insurance to. And that, the turn of the last century, largely it was like, white men who looked like them.

And that led to much worse pricing for everyone else. Like a lot of regulations, it was written before the internet really existed. Part of Marble's concept is, we've done a ton of research and work with the regulators to say, Hey, Where can we do rewards where can't we cannot, incentivize buying.

We can't make anything cheaper to sell. And also what, can we stay, if we stay blind to who our members are, I would just a really, no sort of biasing impact can we offer rewards? Which is how we brought into it, because to that point, Insurance is you can't turn on the TV without seeing an insurance commercial.

There's so much money in this space and rewards provide this really neat mechanism. If you can be thoughtful about removing the biasing impacts to pull money away from. Sports networks and the social media platforms and put some incentive back in the pocket of people to engage with it.

So that's part of our founding thesis as well.
BZ: The rewards aspect. Do you see that also as a generational thing?

S: Exactly that like we, one of our biggest obstacles in fundraising was finding investors who would come with us on this first leg of the journey to see if we could prove that people would engage with insurance, cared about it more than once a year when, and, if even that really.

I think a large rebuttal that I had in the fundraising process to people who were objecting with this idea that, people don't care about their insurance. I hear that all the time, but it's we ha have we ever really tried, have we ever really delivered an experience basically?

Do they not care about the insurance or do they not care about the ways that we're the tools that we're giving them? Because I do, I would argue that people do care about how they protect. There's stuff. If you frame it on those terms it's something you should care about and people do. But if it totally sucks to shop for it and to manage it, and the apps look like they're out of 2006, if you're, in the same way, you don't want to send a bank wire, you'd rather send a Venmo.

It's the same exact proposition. So we've been fortunate. We see I mean we're not day trading like Coinbase, but we see, 30%, monthly activation rates in the app and thats pretty huge.

BZ: Almost like what mint.com did for budgeting and accounting personally. You're basically doing that for insurance. So are you actually selling insurance and

Guest:
Mark W. Yusko
Chief Executive Officer and Chief Investment Officer, Morgan Creek Capital Management & Managing Partner, Morgan Creek Digital Assets

Mark Yusko is the Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management. He is also the Managing Partner of Morgan Creek Digital Assets. Morgan Creek Capital Management was founded in 2004 and currently manages close to $2 billion in discretionary and non-discretionary assets. Prior to founding Morgan Creek, Mr. Yusko was CIO and Founder of UNC Management Company (UNCMC), the Endowment investment office for the University of North Carolina at Chapel Hill. Before that, he was Senior Investment Director for the University of Notre Dame Investment Office.

Mr. Yusko has been at the forefront of institutional investing throughout his career. An early investor in alternative asset classes at Notre Dame, he brought the Endowment
Model of investing to UNC, which contributed to significant performance gains for the
Endowment. The Endowment Model is the cornerstone philosophy of Morgan Creek, as is the mandate to Invest in Innovation. Mr. Yusko is again at the forefront of investing through Morgan Creek Digital Assets, which was formed in 2018. Morgan Creek Digital is an early stage investor in blockchain technology, digital currency and digital assets through the firm’s Venture Capital and Digital Asset Index Fund.

Mr. Yusko received a BA with Honors from the University of Notre Dame and an MBA in Accounting and Finance from the University of Chicago.

Hosted By:
Austin Willson
Michael O'Connor

BZ: welcome back to another episode of the long-run show. This is your host, Austin Willson, along with Mike OConnor. And today we are going to be having another guest on our show. We have Mark Yusko from Morgan Creek Capital. He's actually the founder and CIO of Morgan Creek capital and the chief managing partner of Morgan Creek digital.
Hopefully I got that right, Mark. And we're going to be good. We're going to be talking about we're gonna be talking about a lot of different things today. Spanning many different aspects. Obviously, mark, you have a lot of experience investing money and allocating capital and also a lot of experience just with thinking about large long run issues which is the name of the show.
M: One of the things that I really don't like is everything is focused on short term and social media. And that just the explosion of content has made it even shorter and shorter. And really, if you think about investing, the art of investing, it really is about the longterm. And it's nice. You're nice to say I have a lot of experience. That's just a very nice way of saying I'm old and I am and that's actually a good thing because it means you survived all the mistakes that you made when you were young. But importantly it goes to. My whole career has been around. Long-term thinking, I a series of happy accidents. I didn't plan to be an investment guy. I planned to be an architect. And then I tried pre-med and none of those things really fit. But I went to work for an insurance company out of business school and the guy who was doing investments retired. And so I was now the investment guy. And what I found is it was the perfect thing for me as a science guy. And science is all about format hypothesis, forming experiment, gathering data, testing the hypothesis, and then deciding if it's right or wrong. And that's exactly what you do in investing, right? You come up with this form an experiment.You, you make exposure and then you test it. You gather the data and the market tells you whether you're right or wrong. And part of the. my aha moment over my career was that time arbitrage. So long run thinking, right? The title of your show is the ultimate win in investing. If you have a long time preference, if you have the ability to think longer term than the average investor, you will make more money. And that's kinda cool. And you don't have to

In this episode of The Long Run Show, we are going to be talking about energy , how effective the sanctions will be on Russia in the long run.

Hosted By:
Austin Willson
Michael O'Connor
Transcript:

welcome back to another episode of the long run show. This is Austin Wilson. I'm here with my cohost. Michael O'Connor. And today we are going to be talking about energy very timely subject at the, as we're recording this, there's the whole Russia, Ukraine, conflict, war invasion, aggression, whatever you want to label it happening over in Europe and obviously with Russia being one of the top producers of natural gas and.

In the global economic system we thought this would be a very timely subject. We've been wanting to talk about energy for a while though. Mike and. This is just there's a lot going on. There's talks of sanctions being thrown around. And how is that going to impact European countries in the U S and  Western countries.

 So China's role in all that is, there's a lot of moving parts here and some interesting solutions as well, maybe. We don't know all of those. But we'll just talk through that and try to think through what this means for oil stocks or companies and anything related to oil, which has everything.

So it's true. That's a good way to put it. And like you said, we've been talking about this for a while. We've hinted at we've definitely run into your energy discussions, especially in our ESG one the whole. Green energy thing. And then all that, there's a lot of been a lot of different opinions and different kinds of paths that different companies and especially national governments have taken.

 We've seen countries in the last decade, really abandoned nuclear war. I don't know. I pretty severely disagree with it's clean, enormous amount of energy. You're not necessarily reliant on other countries to supply the fuel. Maybe you don't have uranium mines, but you usually can usually pretty dependably get uranium as a national government.

So it's that's a whole thing. I'm a big nuclear guy. I think I've heard that you are as well. So we might, this would be maybe one where we're not really adversaries at all. We're just agreeing and on our soap box, but. Hey, what's a podcast for if not a soapbox. Exactly.

So it's been interesting though to watch okay. We've seen different, like energy has driven. Or it's driven the us going into the middle east and mulling around, over there doing different things. And so it drives a lot of foreign policy but also I think that the less more.

Commodity gas. As far as energy goes, that's very important for heating homes and businesses, and a lot of different things. Obviously oil touches everything.  Just about everything you've touched during the day has something to do with oil because of plastic and parts and.

Yeah, literally everything. My, my phone case here is got oil in it. The cord that's connecting my headphones to my laptop's got oil in it, essentially.  It's  in everything, but natural gas is also a huge factor as well, especially if we're talking Europe, they get a lot of their natural gas, like Poland to Germany, get a lot of natural gas from Russia.

And what is this whole conflict due to those supplies?  It's the middle of winter, so you're going to need to heat your home, whether you're in Southern Europe or Northern Europe and natural gas is is one of the things it's not a lot of people with. At least in Europe that I know of maybe some more in, in the Nordic countries  with their interesting cozy hygienic, he, I forgot how to pronounce it quickly or something like that.

Yeah. Going to pronounce that, but a nice cozy wood burning furnace. Yeah, exactly. So I think of the two almost at this point, as far as energy goes, Natural gas is something that hasn't been explored as much. Now I know that doesn't drive as many economic outputs, but it is definitely from the consumer, like dire