Let’s commit (more) securities violations

ICYMI, we did a ​deep dive into Acquire​, which is raising a bridge angel round, yesterday. They’re a partner of ours, and I encourage you to check it out if you’re into investing in SAAS Wealthtech startups and/or making money.

Today, we’ve got:

  1. You can buy Muhammad Ali’s childhood home…but you probably shouldn’t
  2. Did Elon break the law (again)?
  3. It’s not just olive oil

Let’s go.

You can buy Muhammad Ali’s childhood home…but you probably shouldn’t

The little pink house where Cassius Clay (later known as Muhammad Ali) grew up is for ​sale​.

The two-bedroom, one-bath home, now an out-of-business museum, is available for $1.5 million. It comes with the two homes next door—a gift shop and a short-term rental.

Using old photos, the developers replicated the home’s furnishings, appliances, artwork and even its pink exterior from Ali’s days living there. The museum featured videos focused on the story of Ali’s upbringing, not his storied boxing career.

The museum opened in 2016 but shut down in 2018 due to financial troubles, but not for a lack of trying.

Las Vegas real estate investor Jared Weiss bought the Ali childhood house — then rundown and vacant — in 2012 for $70,000 with plans to restore it. Three years later, Weiss formed a partnership with Bochetto, who acquired a half interest in the project. Both were avid fans of Ali, and they spent hundreds of thousands of dollars on the restoration project. They also purchased the two neighboring homes, financed a documentary, subsidized museum operations and incurred expenses for all three properties. Weiss has since died and his wife is the project’s co-owner, Bochetto said.

It’s eerily reminiscent of the fractional platform Rally’s recent purchase of Mickey Mantle’s childhood home, which has enjoyed ​mixed success​ so far.

Anyway, you can see more about it here.

Would you like to know more?

​Historic Real Estate: Market Morality and the Politics of Preservation in the Early United States​: Whitney Martinko. This detailed study examines the early history of historical preservation in the United States and its economic implications.

​Muhammad Ali: A Memoir​: David Remnick. This book provides an intimate look at Muhammad Ali’s life, delving into his early years, personal challenges, and eventual rise to fame. It’s particularly relevant given the focus on Ali’s childhood home and upbringing.

Did Elon break the law (again)?

Yesterday, it ​emerged​ that “Elon Musk ordered Nvidia to ship thousands of AI chips reserved for Tesla to X and xAI.”

This reallocation of $500 million of chips pushed Tesla’s AI efforts back by months.

That’s not great for Tesla, its shareholders, or its customers, and it might also land Elon in legal trouble.

Because

On Tesla’s ​first-quarter earnings​ call in April, Musk said the electric vehicle company will increase the number of active H100s — Nvidia’s flagship artificial intelligence chip — from 35,000 to 85,000 by the end of this year. He also

​wrote​ in a post on X a few days later that Tesla would spend $10 billion this year “in combined training and inference AI.”

Which he knew was a lie. We know it was a lie because Nvidia’s internal emails tell us so.

An Nvidia email from late April said Musk’s comment on the first-quarter Tesla call “conflicts with bookings” and that his April post on X about $10 billion in AI spending also “conflicts with bookings and FY 2025 forecasts.”

Why this matters:

  • Securities laws: Under U.S. securities law, companies and their officers must provide accurate and truthful information to investors. Misleading statements or omissions affecting an investor’s decision are considered violations.
  • Materiality: For a statement to be unlawful, it must be material. This means it has to be significant enough to influence an investor’s decision-making process.

There’s also the small matter of a CEO’s fiduciary duty to their shareholders.

  • Duty to Tesla: As the CEO, Musk has a fiduciary duty to act in the best interests of Tesla and its shareholders.
  • Conflicts of Interest: Redirecting resources to another company he owns (X) at the expense of Tesla could raise issues of conflict of interest. If such actions are not properly disclosed, they may also violate fiduciary duties.

Regardless of your politics, this sheds new light on Musk’s view that falsifying business records is trivial.

What do you think should be the outcome here? Vote early and often:

​⚖️ He lied and broke the law. Prosecute him.​ ​👛 It’s an obvious conflict but shareholders should vote with their wallets​ ​🤷 I’m not bothered​

Would you like to know more?

​Conflicting Interests and the Effect of Fiduciary Duty: Evidence from Brokerage Markets​: This academic study examines conflicts of interest in brokerage markets, and the crucial role fiduciary duty plays in mitigating these conflicts. It provides a foundation for comprehending how redirecting resources might conflict with fiduciary responsibilities.

​Fiduciary Duty – Ethics Unwrapped​: This resource provides a clear definition and examples of fiduciary duty, helping understand corporate officers’ ethical and legal obligations to act in the best interests of their company and shareholders.

It’s not just olive oil

A ​lot​ of Alts.co ​ink​ has been shed recently over olive oil. I live amongst the Spanish groves, so I’ve witnessed the crop’s decimation over the last two years of Spanish drought.

But then I received this yesterday.

That’s Valenciano, not Castillian (Spanish)

With the following message accompanying it.

Unfortunately, this is the sixth consecutive year of disastrous harvests of Cherries from the Alicante region crops.

Immersed in a new uncertainty for the area’s star crop, the Vall de Gallinera City Council has once again put its efforts into achieving a protesting Cherry Festival, for the second consecutive year. A celebration that will talk about the current problems that the cherry is experiencing,

What was a family-friendly day out celebrating the cherry harvest has turned into community-wide crisis talks.

I wondered which other crops might be suffering from the local drought and how to invest in them.

In descending order of importance and impact:

Wheat and Barley

Impact: Entire regions such as Andalusia, Castilla La Mancha, Extremadura, and Murcia have to “write off” these crops, meaning they face total failure.

Data: Over 3.5 million hectares ​affected​, with irreversible losses reported.

Impact on Global Market: Spain is a significant producer of wheat and barley, particularly within the EU. The failure of these crops in Spain results in increased reliance on imports from other countries.

Price Impact: The reduced supply has led to increased prices globally. Globally, wheat prices have risen approximately 15% since early 2024 due to the combined effects of drought and the war in Ukraine.

Olive Trees

Impact: Severe crop reduction due to reduced soil moisture and extended dry periods.

Data: Olive oil prices have soared to an all-time high due to these conditions.

Impact on Global Market: Spain is the world’s largest producer of olive oil, contributing to around 45% of global production. The drought-induced reduction in crop yield has tightened the supply chain.

Price Impact: Olive oil prices surged to all-time highs, increasing approximately 50% between 2023 and 2024. (Source: International Olive Council).

Almonds:

Impact: Sustained drought conditions and high temperatures have significantly reduced production and export capacities.

Data: Almond exports from Spain have decreased by 9% from the previous year. Shipments have declined to many key destinations, with significant export volume reductions e.g., Germany (-10.4%), Italy (-40.3%).

Impact on Global Market: Spain is among the top producers of almonds globally. The production shortfall impacts global supply, making prices volatile.

Price Impact: Almond prices have risen by about 10% to 20% due to reduced output.

Sunflowers, Rice, and Cotton:

Impact: Reduced sowing and irrigation capabilities due to lack of available water.

Data: Corn and other crops heavily relying on irrigation will reduce planting in the summer.

Impact on Global Market: Spain contributes significantly to the production of these crops in Europe. Reduced production means increased reliance on imports, which can increase global prices.

Price Impact: Sunflower oil prices have increased by about 25%, and cotton prices have surged 15%. Global rice prices have experienced similar spikes, influenced by multiple regions.

Cherries:

Impact: The severe drought conditions have significantly reduced cherry yields, impacting both the quality and quantity of the harvest.

Data: Spanish cherry production is expected to drop by around 60% due to the extreme drought conditions persisting through key growing periods. (Source: Local Agricultural Reports).

Impact on Global Market: Spain is one of Europe’s major cherry producers, and a significant reduction in its yield affects the European market’s supply and global cherry prices.

Price Impact: Cherry prices in the European market have risen by approximately 40% due to the shortfall in supply from Spain. This price impact is also felt globally, particularly in import markets. (Source: European Union Agricultural Markets).

There are lots of ways to invest in the drought:

Futures contracts for affected crops: crops like wheat, barley, almonds, cherries, rice, sunflower oil, and cotton.

Investing in ag tech companies: companies specializing in agricultural technology, such as those developing drought-resistant crop varieties, smart irrigation systems, precision farming tools, and water-management solutions.

Cold storage and distribution companies: companies that provide cold storage and logistics services, particularly those ensuring extended shelf life for imported fruits and vegetables.

Alternative crop and product markets: producers or markets of alternative crops like avocados, coconut oil, other nuts (cashews, pecans), and stone fruits (peaches, plums)

That’s all for this week; I hope you enjoyed it.

Cheers,

Wyatt

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Picture of Wyatt Cavalier

Wyatt Cavalier

With a background in finance & intelligence analysis, Wyatt has an unhealthy obsession with finding the best blue chip investment opportunities. His previous newsletter, Fractional, resonated deeply with subscribers, bringing actionable insights and unconventional trading strategies. His rare book collection specializes in banned editions. He currently lives in Spain with his beautiful wife, three young boys, and dog Monty.

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