Episode 112: DroneShield Flies, Di Pilla Crashes, Domino's Debacle, WFH, Tether's Money Machine and Adir's LinkedIn Pet Hate
DroneShied flies and proves Adam wrong, David Di Pilla's golden run comes to an end, Jack Cowin rescues Domino's, Adam's WFH article, the Tether money making machine, and Adir's LinkedIn pet hate.
The Contrarians catchup
Adam was featured in the News Corp newspapers over the weekend, under the headline ‘WFH is ‘worst thing ever’: Top CEO’s five-day office demand’. Adam says “it's only a tiny number of people we're ever talking about here. It’s like the trans debate that’s been hijacked by a tiny number of extremists on both sides when most people just don't really have a dog in the fight.”
Producer Mike shared with the guys how he gets lonely working from home and would like to work in an office, to which Adam reminded him that he has no colleagues. After hearing Mike lives in a one-bedroom apartment, Adir said “this story is getting worse by the second”.
Adir hates when people include the phrase “but here’s what everyone’s missing” in a long LinkedIn post.
Adir’s son asked him “do you think there's anybody else that has a similar professional life to yours that spends so many hours every week playing indie video games?”
Adir found it odd that Paramount+ sent him an email using a unique URL that redirected to their website. Adam didn’t think it’s weird, so Adir replied with “you say something good then - what have you got?”
Adam visited a Center Parcs location in the UK. OG listeners will recall the episode with a dedicated Center Parcs segment!
Adir on customer service: “The only thing worse than making a customer feel like they're not special is making a customer feel like they are special and then treating them like they're not special.”
The Los Angeles Lakers are worth $10B
The Buss family is close to selling its majority stake in the Los Angeles Lakers to Guggenheim Partners CEO Mark Walter at a US $10B valuation - the largest sports team sale ever. Despite the sale, Jeanie Buss will stay on as governor.
Walter, who already owns stakes in the Dodgers and Chelsea FC, first invested in the Lakers in 2021 and had a right of first refusal to buy more. The deal highlights the surging value of sports teams, surpassing recent record sales like the Celtics’ $6.1B takeover. NBA board approval is still required.
Adir: “Here’s my question to you and it will be terrible if you actually get close. In the 46 years it took for $67M to turn into $10B, what’s the annual compounding growth rate?”
Adam: “I think it’s like 11% or 12%”
Adir: “I’m hanging up, I’m leaving. It’s 11.5%.”
Tether's Money Machine
Tether, with a small global team, earns over $83M per employee by handling massive stablecoin transactions — proving big profits don’t need big headcounts.
Tether now controls 65% of the global stablecoin supply, solidifying its dominance in crypto markets. Its strong liquidity, stability, and widespread use make it the preferred choice for traders and institutions alike. Despite scrutiny, Tether’s market share continues to grow, reshaping the digital asset landscape and impacting competing stablecoins.
Adir: “This might be the only business that Warren Buffett would be jealous about.”
Adam: “I thought Tether would be defunct by now. Where these stablecoins do so well is, people pay money, they get this this token, and then stablecoins get the cash and invest it like an insurance company and cream the money because people get paid zero interest on it.”
Adir: “If Tether paid interest, they would become a regulated entity and they would have to comply with a whole lot of requirements, whereas stablecoins sit outside this at the moment. And so if they want to stay as this stablecoin business sitting outside the regulated environment, they cannot pay you any interest. They cannot deliver you a financial return for your Tether.”
Adam: “All banks are insolvent. It's just a question of when they officially become insolvent. Their current liabilities are far greater than current assets.”
DroneShield flies
DroneShield secured a record $61.6M order from its European reseller to supply counter-drone systems to a military customer. The deal exceeds 2024 revenue and will be delivered in Q3 2025. This milestone supports DroneShield’s European expansion, new manufacturing facilities, and alignment with increased EU defence spending and the ReArm Europe Plan.
Adir: “The thing about this is almost none of their revenue is recurring revenue. Every night you go to bed rich and every morning you wake up poor. That's how it goes when you sell stuff, right?”
David Di Pilla crashes
HMC Capital has scrapped plans for a $2B renewables empire, placing its energy portfolio under review and parting ways with its fund head. Instead, it will focus on a $950M Victorian asset portfolio, merging with StorEnergy. Shares fell 17% after the pivot, reflecting investor concerns and strategic challenges.
Adir: “I think I might buy everything that he's selling right now. When you look at this guy, the decision to make is, is he just great at pulling stuff off in the short term or does he have a neck for generating value that's going to stick? And I have to say, I would be tending towards the latter.”
Adam: “What I don't like about David is I think he's very smart at buying assets and very good at selling them to naive investors. But once you lose that trust from investors, it becomes really hard to keep doing this. That’s three bad results now - who's going to invest in another Di Pilla vehicle after these three have just been disasters?”
Domino's debacle
Domino’s chairman Jack Cowin has stepped in as executive chair after CEO Mark van Dyck unexpectedly quit less than a year into the role. Cowin, 82, aims to fix falling sales and profits following major store closures and leadership changes. Domino’s shares plunged 20% on news of van Dyck’s departure.
Adam: “As much as I love Jack, this is what happens when a business is overhyped and doesn't have the substance behind it and has a celebrity CEO who, when the celebrity CEO leaves, you lift the rock up and all the worms come flying out.”
Adir: “My guess is that if you really look at this industry hard, what you're seeing is a company that's competing in a category with a diminished TAM. Pizza is become much more sophisticated, much more crowded. I just think in Australia, the glory days are over. It's like, if you own Blockbuster, no matter how well you run that business, you're gonna have some problems.”
Five other stories worth following:
Researchers in China and Hong Kong developed micro-robots the size of dust specks that clear sinus infections, successfully tested in pigs and rabbits. The bots are injected, work inside sinuses, then blown out. Trials on humans await. Similar micro-robotic therapies are being explored for the bladder, intestines, and bloodstream.
Tesla defied gravity again: despite 60,000 fewer deliveries year-on-year, shares rose. Analysts say 384,000 deliveries beat the “whisper” estimate of 365,000, only missing consensus by 1%. Meanwhile, Rivian deliveries dropped and Lucid’s rose slightly. Tesla’s stock gains also reflect excitement over robotaxis, even as it faces fierce competition and demand challenges.
In Austin, a $16,000 AI-powered robot named “Jake the Rizzbot” roams wearing a cowboy hat, doling out flirty compliments like “big boss energy” (AI boys). Built by China’s Unitree Robotics, Jake has a camera, 8-core CPU, and two-hour battery life. Officially “in training,” Jake’s exact mission remains a quirky mystery to onlookers.
Free hotel breakfasts are disappearing as chains rethink loyalty perks and focus on local dining experiences. Hyatt Place is testing breakfast-free stays at 40+ US locations, and St. Regis Macao has replaced free meals with points or discounts. While some guests resist, hotels believe new perks will drive demand and boost revenue.
Bitcoin surged 73.2% last financial year, outperforming all major commodities and equities, including platinum and gold. Trading near record highs, its volatility dropped to 33% from past levels over 150%. While some investors welcome stability, others worry Bitcoin’s appeal is fading as price swings — once prime for big gains — shrink.