Why Companies Are Afraid of Being Politically Correct

Episode #339 | December 11, 2023

Episode #339 | December 11, 2023

Why Companies Are Afraid of Being Politically Correct

In This Episode

On this week's Stansberry Investor Hour, Dan and Corey welcome Whitney Tilson back to the show. Whitney is the editor of Stansberry's Investment Advisory and Whitney Tilson's Daily. He was once dubbed "The Prophet" by CNBC after successfully predicting the dot-com crash, the housing bust, the 2009 stock bottom, and more. Now, he's joining the podcast to cover a range of topics... from why it pays for companies to be politically neutral to why you should block out all the noise from mainstream media.

Dan and Corey kick things off by discussing the newest unemployment number and its implications for inflation, rate cuts by the Federal Reserve, the stock market, and the future of the economy. They speculate that this unemployment rate could result in the Fed putting off rate cuts for even longer. But as Corey notes...

You can't really get the timing of these things exactly right. It's probably not worth fretting over all this too much as long as you've got a handle on the bigger trends at play.

Next, Whitney joins the conversation by discussing the "Magnificent Seven" tech stocks and explains why he thinks smaller-cap, more value-oriented stocks will be driving the markets next. He also compares Tesla CEO Elon Musk's "rampant narcissism," "bro culture" at the company, and antisemitic tweets with exemplars like Warren Buffett and Charlie Munger.

This leads to a discussion about how cultural differences affect businesses. Whitney brings up Anheuser-Busch's Bud Light ad campaign with a transgender influencer and Disney fighting Ron DeSantis' controversial bill in Florida. He shares why he thinks companies are "running pretty darn scared these days" after seeing both those iconic businesses suffer for taking political stances.

A lot of corporations were embracing politically correct things and now there's sort of a blowback by the other side... There really isn't a lot of reason for corporations to weigh in on picking a side and supporting one side or crafting a statement.

Then, Whitney talks about his Top 10 list. He details why Berkshire Hathaway continues to be such an attractive opportunity today and why it's the perfect foundation for any portfolio. And he also emphasizes that we are no longer in a TINA world, or "there is no alternative."

Investors felt like they could only own stocks because you're getting zero on your cash. And now I think stocks will do OK, but I also think you can get paid 5%, take zero risk, owning the world's safest investment as well. It's a good time to be an investor.

Finally, Whitney gives his opinion on what he thinks the Fed will do next in terms of interest rates and what the potential outcomes could be. You also won't want to miss his answer to Dan's final question, where he explains why it's crucial to limit the amount of "partisan and polarized" information you're consuming in traditional media...

Understand that we're in a world where all of us now are being manipulated in incredibly sophisticated and dangerous ways. And that feeds into the investing world and our investment decisions in ways that are super destructive.