The Genius Move That Made Larry Ellison The World’s Richest Man

0:00Hello, everyone. We've got a lot to discuss today. Jordy Visser explains whether we're going to have a recession. Larry Ellison proves once again, he's the goat and OpenDoor's new CEO has got an awesome pay package. We're live today from the desk of Anthony Poppliano.

0:23I recently sat down with Jordy Visser and I asked him one simple question that everyone wants to know. Are we going to have a recession or are we not? Here's what Jordy had to say. not only is there no possibility of a recession and again i live in a world of probabilities some kind of distribution of outcome um the reason there can't be a recession again you have to redefine it will the government and the fed allow there to be a bunch of job losses at some massive level that leads to a credit cycle unwind it can't happen anymore um there can be a slowdown. We could be in a recession right now.

1:00Technically, they could go, well, look what happened. We didn't have a lot of job creation, but GDP is still growing right now at 3%. And after we had that first quarter where everyone kind of flipped out before the tariffs, where we had the trade back and forth, and then we got the reversal back, we still have this growing. But the easiest way to do this is to look at nominal GDP seen through revenues. Revenues are growing for the companies. And we have a build out of AI that's going to be explosive now. When Oracle says we have back orders of five years, here's what is going to be a problem for them and everybody.

1:36We don't have the power to generate that. I did the numbers and I went through chat GPT and said, hey, the 300 billion in orders they have, how much power is needed for that? So it goes through its assumptions and it comes back and says, you need the power of what's equivalent to Japan's consumption of electricity. So then I I take that answer, I put it into Gemini and go, will you check that answer for me and come up with an analysis on your end? It says, well, that's a little bit overstated, but it comes back. And by the time it's done, it comes back with Germany. I don't care what you're talking about.

2:10The amount of build out that needs to happen on this stuff is there. For the people who do believe there's a recession, whenever we've had job creation at this low a level, we've either been in a recession or just about to go into a recession. That is the reason why people are bringing up the recession. It has nothing to do with the other things that are positive. I believe the economy is going through a very big change where consumption will continue to just kind of putter along here, driven by the non-cyclical part of what happens, which is healthcare. And then on the flip side, we are going to see power needs.

2:42We're going to see pump needs. We're going to see battery needs. We're going to see solar. We are going to need so many things on the industrial side that that manufacturing thing that the White House wanted to focus on, it's coming and it's coming in a pretty big way. Well, there you go, ladies and gentlemen. from the man himself. That's what Jordy thinks is whether we're going to have a recession or not. Larry Ellison, the founder of Oracle, he's the GOAT. Oracle surged 41 % earlier this week. Its market cap hit$954 billion. He became the richest man on the planet. And liquidity, he's an absolute Chad move, 81 years old.

3:15Now, here's the thing. Larry owns 43 % of the company. It's$410 billion. He only owned 27 % of it at the end of 2010 when Oracle was valued at$87 billion. So how did he increase his ownership of Oracle? Well, since 2011, the company has spent$155 billion on buybacks, mostly using free cash flow and a little bit of debt. And they reduced overall shares from$5 billion to under$3 billion. So Larry Ellison, he's been buying back shares. He continues to own a big portion of the company, and they're delivering. And that's why the stock price is going up. And Larry just became the richest guy in the world.

3:51Now, everyone keeps asking about open doors. Let me explain something to all these open door naysayers. The company just hired a guy that was making a gazillion dollars at Shopify as the COO. They're paying him$1 per year. That's right,$1. The only way that he can actually make money is if open door stocks appreciates a significant amount. So for example, if he gets the stock to$82 a share, he ends up with something like$6 billion personally. So what do you think is going to happen here? Are you willing to bet that this guy who's getting paid gazillions of dollars at Shopify, he can't figure out how to create value for shareholders and for himself?

4:27If you dangle$6 billion in front of someone, you think somebody who's smart, somebody who works hard, somebody who understands technology, you think they might be able to figure it out? I don't know, but we're all about to find out together. Earlier this week, I sat down with Keith Raboy, the open door chairman of the board now. And Keith, let me tell you, I would never, ever, ever bet against Keith Raboy. And Keith, he's excited because now he's got Kaz in there as the CEO. Keith's back on the board. And this company, they're going to get lean. They're going to start driving more revenue. And my guess is all of a sudden, everyone's going to say, remember that open door?

5:03Remember that company that everyone left for dead at 51 cents? Oh boy. They're performing. Financial returns will ultimately lead to share price going up. And so I am all aboard the open door army. Why? Because you've got some of the best entrepreneurs and investors now at the helm. And I would never bet against these people. That's it for today's show. Thank you guys so much for watching. I'll see you guys live from the desk of Anthony Pompliano on Monday.