Episode 161: Bondi Massacre Hit Albanese, Taylor Swift's Riches, Netwealth Fail, Puppygate, Chemist Warehouse, Shayne Elliott's $13M Cash Grab and Lululemon Deep Dive
The guys discuss the fallout from the Bondi tragedy and why Labor failed to act on Antisemitism, Taylor Swift's Eras riches, ASIC loses the plot, Puppygate WFH, and is Lululemon done?
The Contrarians catchup
The guys start by discussing the horrific events that took place in Bondi. If you want to hear their first thoughts following the terror attack, they recorded an extra episode last week (listen here), but the first 30 minutes of this episode is a must-listen.
Adir on social media: “I think social media is fundamentally the greatest sadness machine that could ever be invented. And I think it's going to make society sadder. It’s delivered more sadness to society than anything outside a world war. I wish it all disappeared. And I would even be happy to sacrifice LinkedIn if we erased all social media.”
The guys are shocked that Taylor Swift’s merchandise sales were 20% of her total revenue from The Eras Tour, bringing in around $500M from branded gear, making around $400M in profit. In total, she made around $700M from $2.5B in revenue.
Adir shares a graph that shows the Australian Tech Index and the Nasdaq mirroring each other until August this year, when the Nasdaq bounced up and the Australian Tech Index dropped around 25% - “you’d have to say the Nasdaq is going to have to plummet down, or the Australian Tech Index is going to have to rebound.”
Adam is in the UK and can’t believe the price of everything, citing $16 donuts and $250 two-hour train journeys.
Luxury Escapes now offers Australia’s first direct Melbourne-to-Malé flight to the Maldives, cutting travel under 12 hours without stopovers. Adir was convinced Adam got himself a private jet.
Netwealth fail
Netwealth will repay nearly $100M to about 1000 victims of the failed First Guardian fund after admitting it inadequately assessed risks before offering the product. ASIC secured an enforceable undertaking and will not seek penalties. APRA imposed licence conditions and independent reviews amid wider investigations into fund misuse allegations.
Adir: “Unlike social media platforms, Netwealth is responsible for what is on its platform and it is seen as a curator, not an impassive provider or just a platform. Netwealth owes a duty of care to the investor to ensure that there is a credible and reputable investments. I think it’s a pretty significant call.”
Adam: “I think it’s terrible. It’s ASIC absolutely losing the plot as they tend to do. They do nothing about criminality for 20 years, they let incompetent businesses prosper, they let dodgy directors escape.”
Puppygate WFH
A tribunal overturned compensation for a council worker who tripped over a pet gate while working from home, ruling private household hazards may fall outside employer liability. The decision narrows WFH injury coverage, though a dissent warned employers still owe broad safety duties. The case will be reheard again soon.
Adir: “Thank God sense prevailed but is this really where we have gone with work from home?”
Shayne Elliott’s $13M cash grab
Former ANZ CEO Shayne Elliott is suing the bank for $13.5M in withheld bonuses, an unprecedented move that revives scrutiny of ANZ’s scandals and culture. Critics argue it reflects Elliott’s poor judgment, while also exposing inconsistent accountability by the board and deeper cultural failures within the bank.
Adir: “Running a bank is a weird job, right? There’s a contract and nothing else matters. There’s words in the contract. Work out what the words say. If the words say you got to give him his money, then give him his money. If the words say you can get out of giving of this money, then don’t give him the money.”
Lululemon deep dive
Lululemon is overhauling its strategy as sales slow and its share price slides, shifting to athlete-led marketing while activist Elliott Investment Management pushes leadership change. Despite compressed margins, Elliott sees value in the brand, betting new management can restore cultural relevance and growth at a discounted valuation.
Adir: “As tech goes bananas in the US, a lot of retail businesses are trading on vastly lower than average peers. This has obviously been pummelled but 14.5 times earnings says not quite that investors have given up, but that they don’t think this is going to return to significant growth anytime soon.”
Adam: “If you look at Lululemon, it’s had some headwinds. US sales dropped 2%. International is up 33% but doesn’t make up for the US sales obviously dropping. Its net revenue was up but its profit was down, so there’s some higher costs in there as well. It’s not a terminal business, but it’s getting hit by competition from all angles.”
Five other stories worth following:
Waymo halted San Francisco robotaxis after a citywide power outage knocked out traffic lights, freezing vehicles in place. Service resumed Sunday, but experts said the predictable blackout exposed limits preventing robotaxis from widespread readiness.
Thousands gathered at Stonehenge for the winter solstice, the year’s shortest day. Parking sold out, crowds arrived before dawn for spiritual rituals, and organisers noted the milestone marks steadily lengthening days until June 21.
As Stranger Things ends, marketers are farewelling a decade-long brand platform. Since 2016, nostalgic integrations with Eggo, Coca-Cola, Doritos and others delivered careful, culture-shaping partnerships now hard to replicate as the final season releases.
Warner Bros Discovery agreed to sell much of its business to Netflix for $83B after rejecting Paramount’s $108B bid. Paramount added a Larry Ellison personal guarantee, backed by partners and debt financing.
Australian shares are set to rise after a broad US rally pushed the S&P 500 near record highs. Falling volatility and seasonal Santa Claus Rally optimism have lifted equities toward a potential 7000 ceiling.