Today, the supreme court of the united states expressly took away a constitutional right from the american people. The supreme court has voted to overturn roe v wade it just it just stuns me. Yesterday, the court handed down a victory for the constitution, a victory for the rule of law and, above all, a victory for life. With this decision, the conservative majority of the supreme court shows how extreme it is.

In the last week, the u.s supreme court passed two rulings that have divided america. First, the republican-dominated panel of justices reinforced the second amendment by striking down new york state's restrictions on carrying guns in public. Then they tackled the next highly contentious issue and overturned roe v wade, which automatically makes abortion illegal in 13 states and may mean most republican majority states follow suit quickly. Over the last few days, we have seen the big divide that has already erupted across the us political spectrum widen even further one half of the country is celebrating what they feel are the cornerstone principles of the us constitution being upheld, while the other half feel that Their basic human rights are being infringed and very quickly.

This division has begun spilling over into the world of business. Disney was one of several companies that sent a note to their employees, saying that they will offer their employees access to the medical care they need in a different state should they need to go down that route and naturally enough disney immediately faced a backlash from conservatives. Disney's big problem is that this isn't the first time that they have come to blows with republicans. They are already at loggerheads with ron desantis, the florida governor over their stance.

On the don't say, gay bill disney have already lost their special tax status, already lost their special governing privileges that they had in florida and ron. Desantis has been quite public about going to war against what he sees as their overly woke agenda and here's the really big problem for disney 38 of their revenue and 45, almost half of their profit came from parks, experiences and products and by far the largest park That disney has is disney world in florida, which is 50 bigger than disneyland and california, disney tokyo, hong kong, disneyland and disneyland paris combined. So it's a pretty big deal to their business and it just happens to be located in the state for which ron desantis is governor and disney is not immune to the overall stock market crash. That's been happening over the last several months.

Disney shares have already lost 51 from their peak in march 2021, and the fascinating story is that, as the world is reopening from coveting 2022 disney's share price is plunging. Most investing advice you will see, will tell you to focus on the numbers. The fundamentals are: what drives the share price in the long term. They are the one thing that matters.

Everything else is just noise, especially politics, except. We are now seeing a massive, huge surge in the impact of politics on businesses and there is every chance that this is just the beginning of that journey. We've had twitter and facebook ban the sitting, president of the united states, from their platforms and as a result weighing in on the presidential election in a very direct way. This is somewhat unprecedented in the history of politics.

What will the implications be for those companies? If republicans or even trump himself were to get back into power, disney is already suffering. The company dropped from 28th down to 65th place in a recent survey about americans perception of big corporations and ron desantis has already screwed them over on the tax status, and he just happens to be one of the hot favorites for the republican presidential nomination in 2024 And you probably don't want the u.s president to be one of your biggest enemies, talking of which companies are now suddenly having to play politics as part of their corporate strategy. Tesla have moved their hq from democrat california to republican texas on the 30th of november last year. Elon musk remains tight-lipped about the specific reasons for the move and the construction of that giant gigafactory in austin.

But then you go and read between the lines and you see the endless attacks from left-leaning media against elon and tesla, and you see unprecedented court cases that are hitting tesla's fremont factory. And you see president biden congratulating the ceo of general motors for leading the way in evs when general motors sold 26 electric cars in the same quarter that tesla sold 308 000 cars. You did mary, you electrified the entire automobile industry, i'm serious, you led and it matters and then, a few weeks after moving to that company hq in texas, elon tweeted in the past. I voted democrat because they were mostly the kindness party, but they have become the party of division and hate, so i can no longer support them and will vote republican now.

Watch the dirty tricks campaign against me. Unfold and elon musk left a popcorn emoji. At the end, which i guess provoked exactly the response that he expected because he later replied to his own tweet, saying judging by the relentless hate storm from the far left, this tweet was spot on. Unfortunately, even though we might not want to talk politics, it is becoming a massively important factor in investing much more important than it has been before and not just in terms of sentiment.

The us government is actively providing subsidies and promoting car companies like gm and ford, while ignoring tesla, because gm and ford happen to have unions. This is not some weird conspiracy theory, joe biden literally said this multiple times. That's why i created the white house task force on worker organization, empowerment to make sure the choice to join a union belongs to workers alone and by the way, by the way, amazon. Here we come watch.

The us government is passing legislation that directly gives a huge competitive advantages to companies whose workers help them get elected. I think the technical term, for this is corruption, but this is the reality of business. Today we have a more polarized society than i can ever remember and i'm guessing that the age of social media is not helping this problem, but just amplifying it everything has now got to be black or white. You have to be all the way on the right.

All the way on the left, the massive gap in between is no man's land. You are not allowed to be in no man's land and as this division grows deeper, we are only going to see more of this fighting between governments and companies. We will see regulatory bodies actively attack companies that they don't like for whatever personal reason. We will see major corporations get absolutely smashed to pieces, not because their products or services sucked and not because they screwed up financially, but because they played the wrong political move.

If you are an investor, you better get ready to get a heck of a lot better at political analysis, alongside building dcf models and reading financial statements, because numbers are important and all that but powerful people with big stakes are even more important and this will increasingly Be one of the most important factors in the long term prospects of any stock that you invest in? Will the government play ball or poke sticks into the business model of the company that you're investing in? Will your company get tax breaks or tax penalties because you didn't contribute to the right political election campaign? Will new laws be passed, destroy your business model or affect it significantly overnight, because you didn't play nice with a few senators. So as much as i loathe to say it, you better start reading the news and following politics a lot more closely than ever before. It is now a massively important part of your qualitative analysis and in many cases, will be as important or more important than any of the number crunching like it or not. This is the reality of investing in 2022.

If you found this video useful, please don't forget to smash the like button for the youtube algorithm. Thank you so much for watching. I really appreciate it and, as always i'll see you guys later.