Capital Allocation and Wealth Inequality

Published on
August 30th, 2019
Duration
52 minutes

Capital Allocation and Wealth Inequality

The Interview ·
Featuring Abbas F. "Eddy" Zuaiter and Leo Hindery

Published on: August 30th, 2019 • Duration: 52 minutes

Abbas F. “Eddy” Zuaiter, managing member of Zuaiter Capital Holdings and former COO of Soros Fund Management, interviews Leo Hindery, chairman and CEO of Trine Acquisition Corp. In this candid conversation, these two titans discuss the dynamic environment in contemporary media and how the incentives of public firms have caused a level of inequality unsurpassed in history. They also discuss the relative importance of shareholders and stakeholders when it comes to corporate decision-making. Filmed on August 14, 2019 in New York.

Comments

Transcript

  • JK
    Jay K.
    19 September 2019 @ 03:44
    It was a good interview. Leo sounds like a decent human being.
  • CH
    Colin H.
    11 September 2019 @ 00:27
    wear socks
  • SS
    Simeon S.
    8 September 2019 @ 17:13
    Right: the US election system favors extremes; you stand no chances to be elected in the primaries if you are a balanced person.
  • IO
    Indi O.
    3 September 2019 @ 23:01
    Fascinating interview. This is definitely a guest who knows how to run a company successfully, but also how to run a life thus. Exceptional individual who demonstrates integrity while building wealth for himself and others. It's amusing reading some of the comments on a video with "wealth inequality" in the title. What were they expecting? For a leader of industry to be hesitant to call out what's happening in the political system creating the wealth inequality problems he's trying to address? This is a man who has to actually get things done... as in within a real world. He's not a politician, unlike the failed "businessman" now playing president. Even the Fed chair has said that there need to be fiscal solutions, and that the problems we face can't all be solved by monetary policy. It's good to hear a perspective that puts the interests of investors together with the duties of citizens in electing their leaders, and even the would be leaders in picking their level with something other than self-aggrandizement and opportunism in mind. Great interview. (Is it wrong for me to be looking forward to the $1 for 3 months promo period to end?)
  • AB
    AJ B.
    3 September 2019 @ 16:28
    On one side of his mouth says he can start a streaming service "tonight" and on the other side says he is worried about there will not being enough diversity in programs because of the ease to make such a video. Do you not see those as conflicting statements? If you take the guests thesis, anyone can now produced content and distribute it, then the diversity should be unlimited. That is great for the consumer. Capital can be returned to content producing investors, however you have to pay the right price for the asset. Netflix can return capital to shareholders, just not at a price of $350 a share. Could investors see a return of capital from Netflix at $50 a share? Possibly, but the point is that it is the price of the asset that hinders capital return, not the market. Investors will figure that out sooner than later as they take massive capital loses on these investments.
    • IO
      Indi O.
      3 September 2019 @ 22:44
      To your first point, he's making a distinction between online streaming vs. cable TV providers. The former has a low barrier to entry and much diversity, but they're all losing money. The latter has monopolies its enjoying, which gives them the power to silence some perspectives they don't deem profitable/desirable to share.
  • SC
    Sean C.
    3 September 2019 @ 15:24
    Wonder what the reaction to this interview would have been if the political commentary at the end was edited out. Also am I the only person that found it strange that he talked about how great Comedy Central and Jon Stewart's "The Daily Show" was - even though the show ended over 3 years ago?
  • PP
    Patrick P.
    2 September 2019 @ 16:33
    I kind of wonder if these two "immigrants " broke our laws to get here?
  • AR
    Anthony R.
    2 September 2019 @ 15:30
    Nothing wrong with serving others and being clear about the constituencies to be served as a CEO. After all, the essence of Capitalism IS the voluntary exchange of goods and services .....THROUGH THE PRICE MECHANISM. Everything else in this interview is self-congratulatory. Too many conflicts in this gentleman's comments in the 'political' portion of his comments with the rest to list. There are so many places on the net to get political opinion. Its unfortunate RV has become one of them.
  • SW
    Scott W.
    2 September 2019 @ 15:16
    Mr. Hindery talks about how as CEO he limits his executive focus to domains in which he has knowledge and competence. He ought to adhere to this operating principle in the political policy domain as well. I've no doubt he's an outstanding operator and appreciated his insights in that realm. But his "big D" talking points were indistinguishable from any garden-variety AOC pap.
  • CS
    Christopher S.
    2 September 2019 @ 11:59
    I guess I found where all the snowflakes have been hiding! People need to not get so caught up in the political games; they're a distraction and it closes off your mind to potentially helpful information. Insightful interview from a man who clearly cares for his employees, community and shareholders. I don't agree with everything he said but, his 30,000 ft view was spot on.
  • TE
    Tito E.
    2 September 2019 @ 11:51
    Absolute dross
  • DH
    Daniel H.
    2 September 2019 @ 06:36
    Who knew? A humane CEO.
  • JM
    John M.
    2 September 2019 @ 05:43
    I always enjoy the variety on RV. This is a great example of Pietistic Socialism at it's finest. So many inconsistencies, downright hypocritical. Also, quite comical how Leo went out of his way to appear ultra-politically correct. He said "women and men" 18 times during the interview. My wife started having a gag-reflex about the 4th time he said that. LOL
  • ma
    mary a.
    1 September 2019 @ 23:39
    As of my viewing there are 81 thumbs up, 83 down. Pretty interesting; will be fun to see where this goes in a week or so. The vituperative comments fascinate me. What a relief ,RV, to have views like Hindery's expressed here. Lately I have been repulsed by some of the hard right views. Please RV keep the balance.
  • DV
    Donald V.
    1 September 2019 @ 20:07
    nice but turned away at the politics part.
  • JM
    John M.
    1 September 2019 @ 17:57
    The politics section at the end I could definitely do without!
  • SS
    Seth S.
    1 September 2019 @ 07:10
    This piece makes Rush Limbaugh look not crazy. This piece makes the term fake news sound more plausible. From time to time it's good to see into the heart and soul of someone to understand what we're really dealing with at the top. It's hard to imagine what this person wouldn't give up to get rid of the current president.
  • GP
    Gordon P.
    31 August 2019 @ 22:35
    So I have to agree with Chris regarding the segment on politics, there is the other side of the story also -- enough said ---
  • CB
    Chris B.
    31 August 2019 @ 20:01
    Thanks RV for doing something a little bit different. It was an interesting interview and while I do not necessarily agree with all his views I learned something new. With that said I could have done without the political discussion at the end. It is not because I agree or disagree with his views. Obviously politics impacts our world but an interviewees view of Trump’s policies or what the Democrats should do differently is not why I subscribe to RV. So please continue with this in the future but focus on the impact of politics and less of personal political views.
  • DF
    Daniel F.
    31 August 2019 @ 18:17
    This guy is the most smug self righteous person I’ve seen yet on Real Vision. I rarely comment and I rarely give thumbs down but this guy galvanized me! And Eddy Zuatier doesn’t need be so obsequious to such a person. Sorry to be so negative but this whole thing really rubbed me the wrong way.
  • BE
    Benjamin E.
    31 August 2019 @ 17:54
    I'm really sick of billionaire globalists lecturing about politics and morality. F this guy. Try harder real vision.
    • JF
      Jarrod F.
      1 September 2019 @ 18:54
      Like the current President and the elites in his cabinet? Into whose pockets do you think those record deficits have been funneled? Try harder.
  • GH
    Gavin H.
    31 August 2019 @ 09:59
    I enjoyed this and had read about his performance in William Thorndikes The Outsiders about high performing CEOs. I watch RV for provocation and this was certainly that. I thought it born to be a CEO statement was...eh...not current to say the least. I appreciate that many people are more naturally suited to leadership...but statements like this are very egotistical and seek to iconify a small subset of people...there are many terribly performing CEOs...many of them worked at GE for example. Were they also bro to be CEOs? Very self serving statement
  • TT
    Tokyo T.
    31 August 2019 @ 09:50
    It seems RV viewers want actionable trade ideas for immediate action. Embedded in this interview was the idea of a special purpose acquisition company or SPAC. It's an alternative investment and not always available to retail customers. Having said that I know Havard has offered a course "how to buy a small business," and many young entrepreneurs are following this path. When I say I small business, I'm talking about boring businesses that generate millions in free cash flow, not your local sandwich shop. It might not be something that interests you, but it's at least good to know how it works. Returns can be consistent when investing in a company that has real revenue compared to Wall Street darings that burn cash.
  • ME
    Michael E.
    31 August 2019 @ 09:03
    RV is worth the $$$, because you see the sentiment of smart Wall Street guys. Read my lips: Major recession is near........... keeping zombies alive is very very bad business. Borrowing $$$$ to pay the interest on debt. Borrowing $4T to buy back shares is very bad. Soon, will see ......
  • CN
    Charles N.
    31 August 2019 @ 07:10
    Did anyone get a single investment idea from this fellow?
    • IB
      Ivan B.
      31 August 2019 @ 09:55
      Content is the king, buy Disney :)
  • RO
    Robert O.
    31 August 2019 @ 04:31
    This seemed like it could be a conversation of the power brokers in Atlas Shrugged; I was waiting for them to introduce their new idea: The Fair Share Law.
    • FB
      Florin B.
      31 August 2019 @ 05:09
      Last comment, best comment.
    • JF
      Jarrod F.
      1 September 2019 @ 18:23
      And yet Rand herself ended her life on social security. Proof if proof were needed of her untenable and hypocritical ideology.
    • JC
      Jon C.
      2 September 2019 @ 02:43
      @Jarrod That's a very common (and bizarre) misconception. She died wealthy from her novels and related projects, and her estate is still running to this day. But of course, I say that assuming you gave the ideas any actual thought, which I doubt you did.
    • JF
      Jarrod F.
      2 September 2019 @ 09:45
      @Jon, even The Ayn Rand Institute concedes this: "From the archival evidence I’ve seen, Rand did collect Social Security." https://ari.aynrand.org/issues/government-and-business/individual-rights/The-Myth-about-Ayn-Rand-and-Social-Security
    • HH
      HODL H.
      4 September 2019 @ 21:29
      Jarrod > Jon...Jon Pwnd LOLZ!!
  • GR
    Gernot R.
    30 August 2019 @ 21:28
    I learned absolutely nothing :(
  • TR
    Thomas R.
    30 August 2019 @ 20:34
    I"m actually a Republican (or conservative) and I loved that interview. Watching two knowledgeable gentleman having a conversation on a Friday. Given the discussion points on streaming, I can't wait to share it with my 22 year old son - who is actively entrepreneurial, streaming himself as a content provider. He is also working out whether he will be a Democrat or a Republican - and, as his father, I'll honor his choice either way. The next 40 years are more his than mine and, speaking as a member of the baby boomers, we've left him a bit of a mess. At the end of the day - values, decency, and character are what matter. Thanks Real Vision
    • BS
      Bill S.
      31 August 2019 @ 00:57
      I’m with you Thomas R. Forget the political views, I would rather allocate capital to Hindery than Novogratz. I work on Wall St., but I live on Main St.
  • TE
    Thomas E.
    30 August 2019 @ 19:24
    Clearly the guest doesn't understand the Conservative position on Immigration or wealth inequality / income inequality. Seems like he's just repeating talking points the party he supports (Democrats) without actually trying to understand both sides. Lastly, as anyone who's not a Democrat knows, if you don't support their position on immigration, policy, economics, or rights then you are indeed a racist, sexist, bigot, homo-phobe who hates the poor without exception no proof needed.
    • JM
      John M.
      2 September 2019 @ 05:46
      I always love 'equality in education' comments from guys that went to Stanford.
  • JC
    Jon C.
    30 August 2019 @ 18:19
    Lame.
  • PB
    Pieter B.
    30 August 2019 @ 17:07
    I really enjoyed this conversation! Thanks a lot!
  • TB
    T B.
    30 August 2019 @ 16:28
    Great 1st half of the interview... Don't need to hear anything further related to political opinions - get that enough from CNN/FOX, etc.
  • MC
    Margarine C.
    30 August 2019 @ 15:55
    "Competition is bad for developing market niches" he said, on real vision, a competitive media platform appealing to a niche. also paraphrasing 26 minutes in: Interviewer: "Cost of production has gone down, what will happen to the barriers of entry you mentioned earlier?" Abbas: "Only one comedy central, and there will always be one as long they do a good job"-- Has this guy been to youtube or netflix? The example he gives defeats his own argument.
  • dd
    david d.
    30 August 2019 @ 15:30
    boring and useless interview
  • MS
    Matthew S.
    30 August 2019 @ 15:24
    The 2nd half on the media industry is good content
    • MS
      Matthew S.
      30 August 2019 @ 15:29
      .. the first half and section on politics has no value add
  • CB
    Christopher B.
    30 August 2019 @ 15:14
    Guy is a jerk
  • GB
    Gary B.
    30 August 2019 @ 14:37
    Couldn't make it past 15 minutes. Talk about a puff piece...
    • BG
      Bruno G.
      1 September 2019 @ 17:05
      What a zipper head
    • TT
      Trenton T.
      2 September 2019 @ 16:57
      Annoyed to the point of incoherence. Agree on the puffery quotient assessment and add self-congratulatory assessment. People are "born" to be a CEO/leader? Really? Biased selection of "born" leaders: Puyi. Akihito. Nikolai II. Madison Hemings. And then comes the politics . . . "Unproductively Democratic" US presidential candidate selection process? How repugnant a thought for 90% of the world's population!!!
  • AD
    Anna D.
    30 August 2019 @ 13:13
    Great interview!
  • ME
    Michael E.
    30 August 2019 @ 08:47
    This is a gentleman I admire, hard work, vision, very simple to understand. SELF MADE & VALUE ADDED GUY. THESE TYPE OF GUYS WE NEED, NOT WALL STREET FAST TALKERS, VERY COMPLEX STRATEGIES. GREAT, GREAT INTERVIEW.
    • tr
      tom r.
      31 August 2019 @ 01:22
      Two guys desperate to go backwards when our country is finally back on track headed the right direction. Clueless!