Why do Lululemon stocks cost so much more $$ than Nike?

Maddy: [00:00:20] Hello and welcome to youre In Good Company, a podcast that makes investing accessible for everyone. I'm Maddy and as always, I'm in some very good company with my co-host Sophie. [00:00:29][9.1]

Sophie: [00:00:30] And we're also joined by producer Sash this morning. [00:00:32][2.4]

Sascha: [00:00:33] Hey, I don't have a microphone. I do know that we need. [00:00:39][5.5]

Sophie: [00:00:39] To get another. [00:00:39][0.2]

Sascha: [00:00:40] One. It's a good wake. You'll know why my life is up. I just said I saw that friend. [00:00:45][5.7]

Sophie: [00:00:46] Is it? I thought from the bottom it's up like 150% or something. [00:00:49][3.5]

Sascha: [00:00:50] It is. It's doing very well. [00:00:51][1.2]

Maddy: [00:00:51] But it was very funny last night. I was talking to my friend about it and he was like, So are you back in the game? [00:00:55][4.2]

Sascha: [00:00:56] And I said, I feel like I'm. [00:00:57][1.3]

Maddy: [00:00:57] Still down 65%. [00:00:58][0.5]

Sascha: [00:01:00] Well, if you had conviction, you would have bought at the bottom. [00:01:02][1.9]

Sophie: [00:01:03] Good. Time to say a quick reminder. Anything you hear in this episode is not financial advice. [00:01:07][4.4]

Sascha: [00:01:08] Definitely not. [00:01:08][0.5]

Sophie: [00:01:09] We are just two ladies chatting about investing. [00:01:11][2.0]

Maddy: [00:01:11] Talking about finance and. [00:01:12][1.0]

Sascha: [00:01:13] Definitely not. [00:01:13][0.7]

Sophie: [00:01:14] And that is investment decisions which. [00:01:16][1.9]

Sascha: [00:01:16] Have gone wrong. Out, Steve. It's out, Steve. [00:01:20][4.1]

Sophie: [00:01:21] It so last week after the Tesla episode, I was speaking to a friend about toxic traits, you know, like something that's like kind of funny about you, but it's also like the thing that you. [00:01:31][10.1]

Sascha: [00:01:31] Do that you, like, shouldn't do or like. [00:01:33][1.9]

Sophie: [00:01:33] I don't know. And anyway, hers was after the Tesla episode that she finds Teslas secretly really sexy. [00:01:38][5.2]

Sascha: [00:01:40] That's so funny. I thought it was so funny. [00:01:42][1.8]

Maddy: [00:01:42] I was actually talking about this the housemates last night and I feel like I need to caution you because I was saying, like, what would mine be? And I can't tell you. It very quickly turned into a voice. [00:01:51][9.3]

Sascha: [00:01:52] That I've actually got a toxic job. Here we go. I've got a funny story about what I think is your toxic gig. So join the join in the roasting. Okay. [00:02:02][10.5]

Sophie: [00:02:03] So I remember a little while ago you went to Noosa with your brothers? Yeah. On a little family bike. And you were still working during that period because we were doing podcast. [00:02:12][9.2]

Sascha: [00:02:13] Oh yeah. And we get up early in the morning to do podcast stuff. And I remember you. [00:02:18][5.0]

Sophie: [00:02:18] Saying that you would have your alarm going off at like 6 a.m.. [00:02:21][2.8]

Sascha: [00:02:22] And your toxic trait was that you. [00:02:25][2.5]

Sophie: [00:02:25] Snooze your alarm about 15 times. [00:02:27][1.8]

Sascha: [00:02:28] Oh my God. When you told that story, I was like, Oh, that's kind of annoying for the brothers. Like whatever. [00:02:32][4.0]

Sophie: [00:02:32] But then I was thinking about it and I was like, when we were in Sydney. [00:02:35][2.3]

Sascha: [00:02:35] Together, we. [00:02:36][0.6]

Sophie: [00:02:36] Were in the tiniest. [00:02:36][0.3]

Sascha: [00:02:37] Cheapest Airbnb that we could find to embody everything. And you snooze your alarm literally. [00:02:44][6.5]

Sophie: [00:02:45] 17 times in the morning. [00:02:46][1.2]

Sascha: [00:02:47] So Jenny, here at my house, it did they say that once snoozing my alarm for the gym and joked someone yells up the stairs to wake me up after having woken up everyone in the entire house. And that's true because in your house we can really hear everything. And the other one that I got was setting my. [00:03:04][17.3]

Maddy: [00:03:04] Alarm, setting my wake up alarm at random times throughout the day to remind me of things. And it's like really. [00:03:09][4.8]

Sascha: [00:03:09] Triggering for everyone else because that's the way. No, no. [00:03:11][2.3]

Sophie: [00:03:13] That's actually really true. When someone's ring tone is. [00:03:15][2.1]

Sascha: [00:03:15] Their alarm tone, I'm like, What do we do? Like the other one? [00:03:20][4.4]

Maddy: [00:03:20] The other ones I got were crying ads breezing too. [00:03:23][2.7]

Sascha: [00:03:23] Easily and ordering McDonald's on. [00:03:25][1.8]

Maddy: [00:03:25] Ubereats at the end of a night out and falling asleep before it arrives. [00:03:28][2.5]

Sascha: [00:03:29] The bruising too easily that saves money. What are you. It's actually Chad. I saw some of my housemates. [00:03:36][7.1]

Sophie: [00:03:37] And they were just being annoying. They didn't actually really give me any. [00:03:39][2.1]

Sascha: [00:03:39] Bother. [00:03:39][0.0]

Sophie: [00:03:41] As in like I'm probably just a really annoying and. [00:03:43][2.2]

Sascha: [00:03:43] They only told me. [00:03:44][0.9]

Sophie: [00:03:46] I am Sam and he said that I don't put the toothbrush back on the charger. And so every time he. [00:03:50][4.6]

Sascha: [00:03:50] Goes out isn't it. [00:03:52][1.5]

Sophie: [00:03:53] Yeah. Not good. [00:03:54][0.8]

Sascha: [00:03:55] Oh, my God. That Lululemon. What Lululemon's? What are Lulu's? [00:04:00][4.7]

Maddy: [00:04:00] We always talk about how we want to invest in companies that we like, that align with our values that we resonate with. So today we're going to be talking about Lululemon, which is a company that I personally love, and I have spent way too much money at that shop. [00:04:15][14.2]

Sophie: [00:04:15] Well, I remember when we first kind of started this podcast and you said that one of your friends was like, you can buy Lululemon to wear and also invest in Lululemon. [00:04:23][7.5]

Maddy: [00:04:23] So true, especially when you are contributing lots to their sales. [00:04:26][2.9]

Sophie: [00:04:29] So is there a bit of background that you can give on this company? Yes. [00:04:32][2.9]

Maddy: [00:04:32] So the company was founded in 1997 by a guy named Chip Wilson, and he previously designed surf and snow gear. And then he transformed his Vancouver office to a yoga studio by night and then which helped to pay the rent. And then during the day, he would basically design clothes for yoga. [00:04:50][18.4]

Sophie: [00:04:51] Yeah, I remember reading a bit of a story about it, like he was in a yoga class and he saw like everyone was doing really baggy clothes and he's like, This is really not conducive for yoga. Like, you need some type stuff. [00:05:00][8.9]

Sascha: [00:05:00] Yeah. [00:05:00][0.0]

Maddy: [00:05:01] And it's quite cool because by having these yoga people come. [00:05:04][2.9]

Sascha: [00:05:05] You know. [00:05:06][0.9]

Maddy: [00:05:07] By having yoga classes at night, he would give them free clothes and then get their feedback on the design. [00:05:12][5.6]

Sophie: [00:05:13] Oh, that's. [00:05:13][0.3]

Maddy: [00:05:13] Cool. Yeah. By 2012, Lululemon was actually making more money per square foot of store space and almost any other retailer in the U.S. only beaten by Apple and Tiffany and Co. [00:05:24][11.0]

Sophie: [00:05:25] And so this is an interesting one because it's a public company and its share price is quite high. And a lot of our friends have always said, like, they're not going to buy it because, you know, it's like something like $300 a stock. So we want to get into unpacking what it actually means, what the share price of a company actually means. But before we do that, maybe we should talk about some of the good things about Lululemon and also the bad things as well. [00:05:48][23.1]

Maddy: [00:05:49] Yeah. So I always think one of my favourite places to start when we're looking at a company is a company leadership. So Chip Wilson, who founded Lululemon, is a pretty controversial guy. He actually got kicked out of the company around 2015 because he. [00:06:05][16.9]

Sophie: [00:06:06] Got kicked out of his own company. [00:06:07][1.1]

Sascha: [00:06:08] Yeah, because he said, hey. [00:06:09][1.4]

Maddy: [00:06:10] I have some quotes here. He said, Birth control causes breast cancer and leads to divorce. And the yoga pants don't work for women whose thighs touch. [00:06:17][7.2]

Sophie: [00:06:18] Well, that doesn't sound like. [00:06:19][0.9]

Sascha: [00:06:19] A good a good leader. [00:06:20][1.1]

Maddy: [00:06:21] No, I mean, it's definitely a weird look for a very female dominated market. But as I said, he did step down as chairman in 2013 and he left the board entirely in 2015. Although it is interesting to note that he still does have quite a substantial shareholding of about 8%. [00:06:36][15.2]

Sophie: [00:06:36] So he's not currently the leader or CEO of the company? [00:06:39][2.9]

Maddy: [00:06:40] No. So now the CEO is a guy called Calvin McDonald, who also sits on the board of directors for Walt Disney, which we love. And he was previously president of Sephora Americas. So he's got a bit of experience, I guess, in the female space. [00:06:53][13.1]

Sophie: [00:06:54] You know what I always think when you do facts like that, I'm like, How do you have time to run Lululemon. [00:06:58][4.4]

Sascha: [00:06:59] And be on the Board of Surgery? [00:07:00][1.3]

Maddy: [00:07:01] But also goals like I'm so jealous he gets to have these foot in so many. Interesting. [00:07:06][4.9]

Sascha: [00:07:07] Let's put it in so many interesting doors. Yeah. Yoga studios. Yeah. [00:07:12][5.5]

Maddy: [00:07:13] The share price has tripled since since he took over in 2018 as well. [00:07:17][3.6]

Sophie: [00:07:17] Wow. So are there some good things about the company that you like? [00:07:20][3.0]

Maddy: [00:07:21] Yes. So I think there's a really interesting organic growth like expansion story, Flu Limited. So one of my favourite points is that they are now getting into runners. [00:07:31][9.9]

Sophie: [00:07:31] Oh, that's a good thing because I feel like that's a massive market. Like someone like Nike, for example, they're known for their run a brand. Lululemon is kind of known for more what you wear. So like trying to diversify your revenue stream is always really beneficial, especially in a market after we've had such a big growth in like activewear, you need to kind of move out of this space. [00:07:50][18.6]

Maddy: [00:07:51] Yeah, I think runners is going to be a tough one to break into. Yeah, if they do. It could definitely be the next big thing. Interesting that Louis also has a really cool focus on women's shoes and they said that it actually came after an internal project that investigated bras and discomfort, which led to Lululemon saying that the negative impact on a women's body was happening because of the heel strike of the shoe. [00:08:13][22.4]

Sophie: [00:08:14] Interesting. [00:08:14][0.0]

Maddy: [00:08:14] So they're using that race research to develop a runner that works for women. [00:08:18][3.5]

Sophie: [00:08:18] I actually went to my first podiatrist appointment the other day. [00:08:21][2.5]

Sascha: [00:08:21] Oh. [00:08:21][0.0]

Sophie: [00:08:22] I can't run at the moment, so maybe this will help. [00:08:25][2.4]

Sascha: [00:08:25] Maybe you're not. Yes. [00:08:26][1.1]

Maddy: [00:08:27] You did touch on there. That athleisure is becoming much more fashionable. And I think this is particularly the. After having spent so much time working from home. There were definitely some tailwinds for this company coming out of court with so many people buying activewear during the period. [00:08:42][14.8]

Sophie: [00:08:42] Yeah, I feel like people have kind of accepted it a little bit more. You see now people wearing activewear on the street all the time. It's no longer a thing of like, you have to be going for a run or a walk. It's like you wear it even to dinner. [00:08:55][13.2]

Maddy: [00:08:56] I saw a stock the other day that said Women in America and now buying more leggings than jeans. [00:09:00][3.8]

Sophie: [00:09:01] Yeah. And I also understand it as well because working from home, it's still a massive thing. And I feel like a lot of people want to be comfy. And Lululemon doesn't just, do you know, the tight tights, but they do like the track suits and the flared pant jump. [00:09:13][12.5]

Maddy: [00:09:15] I do think this one is an interesting point because when you are investing in a consumer discretionary brand, which is what I would say, Lululemon, is you are really relying on it staying relevant. Yeah. So, you know, working from home trends have definitely benefited sales. But I think if I'm thinking about like a long term investment in this company, you are really saying, you know, is this going to still be in fashion down the road? And you know what? For a company like Lululemon, what is their moat? What's going to stop another athleisure company coming in and being better or more popular? [00:09:49][33.8]

Sophie: [00:09:49] Well, I guess that's one of the challenges right then with these companies, that there is a lot of competition in this space. There are so many start ups coming through. I see. I've seen a lot of like start-ups coming through, making like recycled leggings, which is really going into that ESG focus area kind of appealing to consumers. So I think one big challenge, Lululemon, is that it's not a hard market to jump into. [00:10:11][22.4]

Maddy: [00:10:12] The other thing I think about last night is that I don't really have much of a social media presence, which in a world where we're shifting sort of away from retail stores and shopping more and more online, you know, we've seen in the beauty industry, Revlon over in the US has gone bankrupt because they weren't able to keep up with, you know, all of the tick tock beauty brands that were becoming really popular. And it did kind of make me think if Lulu hasn't really embraced this online or social media presence, are they going to be able to keep up? Because I feel like so much of their experience is like in-store. Yeah, it's such a positive. You know, you think about when you go into the store, you got great, everybody's happy smiles. They write your name on the rim of the change or. I hate. [00:10:54][41.5]

Sascha: [00:10:54] That. [00:10:54][0.0]

Maddy: [00:10:54] Just that there's so much focus on experience. And I was also reading that over in Chicago they have opens like and I think it's like an eight story store and it's got yoga. [00:11:07][12.7]

Sophie: [00:11:07] Studio. [00:11:07][0.0]

Maddy: [00:11:08] Stores. Yeah, which is pretty interesting in a climate where, you know, department stores, at least in Australia like Myer and David Jones, are kind of struggling. [00:11:15][7.0]

Sophie: [00:11:15] Yeah, but I think that definitely is kind of one of their main like touch points is that they want to have events in person, events where you exercise together, where you're excited, you're happy, you want to wear the gear. So social media, I understand, but it's also like you're probably going to get be getting more out of like, you know, that in-person experience of the brand like this. [00:11:35][20.0]

Maddy: [00:11:36] So an interesting contrast to that is a recent acquisition that they did, which is the Mirror acquisition. Have you looked into this much? [00:11:44][8.2]

Sophie: [00:11:45] Yes. Where they where you have the exercise going on in the mirror and you follow it? [00:11:49][4.5]

Sascha: [00:11:49] Yeah, that's what it is. So last night. [00:11:51][1.5]

Maddy: [00:11:51] At about 11:30 p.m., I was YouTubing like reviews on this mirror. It's hilarious. It's so weird, but I've heard a few sort of analysts refer to it as a bit of a FOMO acquisition. When in lockdown, Peloton was really big and now all they sort of work out at home trends. But basically what it is, is like it literally looks like a mirror. You hang it on your wall, but then it reflects these workouts and you can kind of see yourself, but you can also see the instructor in the mirror. [00:12:19][27.9]

Sophie: [00:12:20] Interesting. So is that an opportunity or a challenge for the company? [00:12:24][3.6]

Maddy: [00:12:24] Well, I I was listening to some analysts say last night that it perhaps hasn't performed as well as they were hoping. And it has been a bit of a dud acquisition, which the company spent a lot of money on. So perhaps doesn't reflect that well on management. [00:12:37][12.8]

Sophie: [00:12:38] Right. Well, I want to get into why the price of blue, I mean, is so high. But before we do that, let's take a quick break for our sponsors. [00:12:46][8.6]

Sascha: [00:12:49] I mean, it's one banana, Michael. What could it cost? $10. [00:12:52][2.9]

Maddy: [00:12:53] So before the break, you said that the share price of Lululemon was really high. What actually is it and how, I guess, does it compare to some of the other players in the industry? [00:13:03][10.1]

Sophie: [00:13:04] So the price at time of recording is sitting around the $300 mark. I think it's 280 US day, but it reached a peak of 480 in November 2021 for one share of Lululemon. [00:13:16][12.4]

Maddy: [00:13:17] So that sounds high, but how does it actually compare to other players? [00:13:21][3.8]

Sophie: [00:13:22] So I guess why we say that's high is because someone like Nike's 100 bucks, which is still, you know, a lot, but it's just almost four times at its peak. So it seems just a bit, you know, out there. [00:13:33][11.6]

Sascha: [00:13:34] I guess. [00:13:34][0.1]

Maddy: [00:13:35] So what does that actually mean? Does that mean that Lulu is much bigger than Nike or. [00:13:40][5.0]

Sophie: [00:13:40] No, just because the share price is higher, it doesn't mean that the value of the company is larger. Nike is actually much bigger than Lululemon in terms of something like sales. But I think the best way to explain this is really with like a pizza analogy. You've got Nike, a really, really big pizza, and then you've got Lululemon maybe like let's give it a regular workout. Have to do like mats what you want. [00:14:04][23.6]

Sascha: [00:14:05] Oh. Oh, I knew you'd say that. She's a fan of lady. [00:14:07][2.2]

Maddy: [00:14:08] I love them. Except with Pepsi, with Chick. And that's a no no. [00:14:11][2.8]

Sophie: [00:14:11] Okay, fair enough. So you've got these pizzas on the table, you've got Nike. Think of it like it's taking over the whole table. [00:14:17][5.7]

Maddy: [00:14:17] It's an extra, extra, large, extra, extra large. [00:14:19][1.5]

Sophie: [00:14:19] Like one of those ones that you share with 100 people. Got it. Then you're at Lululemon pizza. We've got regular maybe ten of you. Ten of you are sharing it. [00:14:26][7.7]

Maddy: [00:14:27] Nice. [00:14:27][0.0]

Sascha: [00:14:27] That's wouldn't do a regular. [00:14:28][0.8]

Sophie: [00:14:29] But the Nike pizza will be cut into hundreds of little pieces. It'll serve 100 people. And then think of the pieces like the share price because it's chopped up into so many little pieces. The share price is lower, but with the Lululemon pizza, it's only cut into ten pieces. So that's why the share price is higher. [00:14:49][20.1]

Maddy: [00:14:49] Okay. I don't know if I fully. [00:14:51][1.4]

Sascha: [00:14:51] Get it, so let's. [00:14:52][0.7]

Sophie: [00:14:52] Put some numbers to it. It might help. Nike is worth its pizza is worth $1.2 billion. [00:14:57][5.2]

Sascha: [00:14:58] See pizza. That's it. [00:14:59][0.9]

Sophie: [00:15:00] That's its market cap. Okay, that's what it's worth. And it's chopped up into all these little pizza. Pizza pieces. Tongue twister, which makes it share price $100. Got it. So think about how many times you have to divide 1.2 billion to get to $100 per share. [00:15:15][15.4]

Maddy: [00:15:16] How many? [00:15:16][0.2]

Sascha: [00:15:18] Sorry to say mass. [00:15:19][1.1]

Sophie: [00:15:20] But then you have the Lululemon pizza and that's worth maybe 120 mil. Okay. Still a very expensive pizza, but a lot smaller. And it's chopped up into less pieces, pieces of pizza, and therefore it's got a higher share price. [00:15:35][14.3]

Maddy: [00:15:36] So which situation is better? Do I want the billion dollar pizza or do I want the million dollar pizza? [00:15:41][5.6]

Sophie: [00:15:42] A big misconception which I personally have even experience with, is that something that has a higher share price? I'm a bit nervous to buy into it because I'm like, Oh, I'm not going to buy a whole share or it's not going to give me a lot of growth. But it doesn't. I don't actually think it matters what the share price is because, you know, 10% growth on a $500 share is the same as 10% growth on a $100 share. [00:16:06][23.9]

Maddy: [00:16:06] I think that exact revelation was quite mind blowing for me because you think that if you get 10% growth on something that's much more expensive, it's going to be higher. But actually, it's all about the initial investment that you put in. Yes. [00:16:19][12.8]

Sophie: [00:16:20] And I think I found that when I first started investing, I wanted to buy like $10 shares because I was like, ooh, I have $110 shares. But as we've said, the growth is the same. I think the only benefits that you might get out of a higher market cap is, you know, maybe brand recognition because you think, oh, that shares really high. They're doing something well, but there's also downsides to it as well. As we've mentioned that you might not attract as many investors because people might say, that's too high. I don't want to buy it. [00:16:46][26.9]

Maddy: [00:16:47] So at the end of the day, if I invest $100 into a massive company and get one share or $100 into a smaller company and get ten shares, the percentage growth on whatever that company returns is going to be the same dollar value back to me 100%. [00:17:02][15.1]

Sophie: [00:17:03] And the beauty of investing, say, in the US at the moment is you can do partial shares. They don't have to buy a whole Lululemon share. You can buy half of one nice or a quarter. [00:17:12][8.9]

Maddy: [00:17:13] So why is Lululemon's share price so high then? [00:17:16][3.7]

Sascha: [00:17:17] That's the question of the day. [00:17:18][1.1]

Sophie: [00:17:20] Well, the first one is what we've spoken about. They only have a certain amount of pieces of pizza, and that's the decision of the company to not chop up their pizza. [00:17:29][9.0]

Maddy: [00:17:29] More so because there are less pieces of pizza, the price of each piece is higher. Yes, there's less to go around. [00:17:36][7.3]

Sophie: [00:17:37] And if you came into the party and you were like, I want to share my piece of pizza with you, and we chopped it up, you would no longer have that $500 piece of pizza. It'd be 258. [00:17:47][10.0]

Maddy: [00:17:48] And why would we do that? [00:17:49][0.8]

Sophie: [00:17:52] So companies sometimes do something that's called a stock split. That's called a stock split. In this case, we can call it a pizza split. And often they will do it because they want more people like you and me coming to the party and they want more people having a piece of pizza or investing in the company. [00:18:08][16.4]

Maddy: [00:18:09] So I guess it makes the pizza more affordable, right? [00:18:11][1.9]

Sophie: [00:18:11] 100%. [00:18:11][0.0]

Maddy: [00:18:12] Google just did a stock split 22 one. So if you previously had one share of Google, you now have 20. Yes, but the actual value is the same. So you still have the same amount of pizza. It's just cut into more pieces. [00:18:23][11.5]

Sophie: [00:18:24] And Tesla did one as well. They did a 3 to 1. So if you had one Tesla stock, you now have three. But it's still the same money value. [00:18:33][8.5]

Maddy: [00:18:34] So if you found a great fact, when we were researching for this episode, that blew my mind. The price of Berkshire Hathaway, Warren Buffett's company. [00:18:41][7.5]

Sophie: [00:18:42] Yes. Is $485,000 per one share. [00:18:46][4.6]

Maddy: [00:18:47] Because they've never done a stock. [00:18:48][1.0]

Sophie: [00:18:49] Split and that's on purpose. Warren's actually come out and said, I said, Warren, like I know like Warren. [00:18:54][5.3]

Sascha: [00:18:56] But yes. [00:18:56][0.5]

Sophie: [00:18:57] Warren Buffett has actually come out and said he doesn't want, you know, volatility in the stock. He doesn't want short term trading. So they've never split up the stock that they have because they want to keep it on a straight narrow up up into the sky. [00:19:10][13.5]

Maddy: [00:19:11] Well, I guess it makes it harder to buy, right? So it reduces the amount of trading and therefore the volatility less people are swapping his pizza. [00:19:17][6.4]

Sophie: [00:19:18] What's the second reason that a share price might stay high? [00:19:21][3.3]

Maddy: [00:19:22] So Lululemon has never paid a dividend. [00:19:24][1.9]

Sophie: [00:19:25] Quick reminder, what's a dividend? [00:19:26][1.1]

Maddy: [00:19:27] So it's when a company gives back some of the profits that it makes to its shareholders, kind of as a reward for investing in the company. [00:19:34][6.8]

Sophie: [00:19:35] And why does not paying a dividend lead to a higher share price? [00:19:39][4.2]

Maddy: [00:19:40] Because it means that the company or in this case Lululemon, is reinvesting the money that they otherwise might have given out to shareholders into their own business. So it helps with growth, it helps improve the performance of the company and its overall expansion. [00:19:53][13.1]

Sophie: [00:19:54] So it's kind of like, you know, if you got a bonus at work or a pay rise, you're putting more money into, say, your investments and you're helping build that cumulative growth rather than, I don't know, going and buying a new fridge. [00:20:05][10.7]

Sascha: [00:20:08] I need a new fridge. [00:20:08][0.6]

Maddy: [00:20:10] I can say what's on top of your money today. So the purpose of today's chart was to figure out why Lululemon's share price is so high, especially in comparison to some of its competitors like Nike. So can you give us a really quick recap of what we have learnt in the last half hour? [00:20:26][16.1]

Sophie: [00:20:28] So a share price doesn't necessarily relate to a company's value, and a share price can be high because, one, it has never done a stock split, or two, it has never paid a dividend. Three, Because it could be a company that's reinvesting in itself and growing, and therefore investors are willing to pay a higher price to invest in the company. All right. Quick recommendations. [00:20:52][23.8]

Sascha: [00:20:53] Oh, my God. Where did you come from? [00:20:54][1.5]

Sophie: [00:20:55] What have you got for me this week? [00:20:56][0.8]

Maddy: [00:20:56] I discovered a new Netflix series when researching for this episode. It's called Explained. [00:21:01][4.4]

Sascha: [00:21:01] Have you heard of it? I have actually. [00:21:02][1.0]

Sophie: [00:21:03] Seen it on the ads for Netflix and have watched it. [00:21:05][2.3]

Maddy: [00:21:05] Super interesting 20 minute episodes. I watched the one called athleisure. Very relevant. But there are also episodes called Beauty, The Future of Mate, Billionaires and Plastic Surgery. So if you're in the mood for a quick lesson, a quick 20 minute sort of upskill, go check out explained on Netflix. [00:21:22][17.1]

Sophie: [00:21:23] I love that. I really am going to watch that. [00:21:25][2.2]

Sascha: [00:21:26] What have you got for me? [00:21:27][0.7]

Sophie: [00:21:27] Mine's an old classic, The Daily, which we love. And I listened to Death of a Cryptocurrency talking all about what's happening in the cryptocurrency space at the moment. I found it a really interesting listen. [00:21:37][10.0]

Maddy: [00:21:37] Is it going to make me feel better or worse? [00:21:38][1.1]

Sophie: [00:21:41] More informed. 

Sascha: [00:21:43] Not a good answer.

Maddy: [00:21:45] Well, we hope that you have enjoyed today's episode and learning a little bit more about Lululemon. 

Sophie: [00:21:50] As always, find us on social media. We are at y exac podcast on Instagram. There is a fake Instagram going around. If they ask you about any investment advice or anything, please.

Sascha: [00:22:02] Report and block us. 

Sophie: [00:22:04] We won't stand you. 

Maddy: [00:22:06] And if you have any questions or thoughts on today's episode, jump into our Facebook group YIGC Investing Podcast Discussion Group. 

Sophie: [00:22:13] You'll hear from us next week actually.