Latest news with #Kass
CNBC
3 minutes ago
- Business
- CNBC
Couple lost $25,000 life savings when their startup went bankrupt—6 years later, they sold it for $24 million
Mike and Kass Lazerow started the year 2000 on a high. Fresh off their honeymoon, the couple successfully sold their startup that tracked golf scores, in January of that year. But six months later, they had almost nothing to show for the sale, and were scrambling to buy the company back. "We had put our whole savings, a combined $25,000, in," Kass, now 54, says. "I was angry." The entrepreneurial couple say they were able to buy back and eventually sell it to Time Warner for $24 million in 2006. But in 2000, they lost nearly everything, including some friends from the fallout, they had sold the company to Chipshot, a fast-growing e-commerce retailer that sold custom golf clubs. With nearly $50 million in venture funding, Chipshot was backed by major investors including Sequoia Capital and Oracle Venture Fund and gearing up to go public when it acquired and its 35 employees for a reported $250,000 in cash and 3 million shares of Chipshot stock, according to the Wall Street Journal. In late July, however, a funding round for the company fell through. That's when Mike, now 51, says he got the call from Chipshot CEO Brian Sroub: The company was headed toward bankruptcy, and there was no money left. "We had sold the business," Mike says. "So we had employees who weren't going to get paid." All of assets had been consolidated under Chipshot through the deal, including Mike and Kass, who stayed on to manage their team. When Chipshot went bankrupt just a few months later, went bankrupt too, Kass says. Mike and Kass say they also lost the life savings they invested in They didn't pay themselves a salary before the acquisition, and nearly all of the deal was paid in Chipshot stock, which became close to worthless after the company declared bankruptcy. What really "sucked," Kass says, was having to tell family and friends who helped fund the company that their investments were gone as well. The Lazerows didn't want to just give up on their concept. Mike says they almost immediately decided to try and buy the company back. In three months, they put together a new investment group and reacquired the company for "a bargain-basement price," of $500,000, according to WSJ. "I'm a super competitive person, and I just could not take this loss," Kass says. "I knew immediately I wanted to try to redo it and start over." For two years, "was mostly dead and partly alive," Kass says. "We were limping." At one point, the company was down to four people: Mike, Kass, their third co-founder Mike Casper and one other employee. Then, momentum began to shift. Tiger Woods, a young phenom at the time, was captivating the world. With back-to-back Masters Tournament wins in 2001 and 2002, advertisers flocked to the golf market, seeking places to run targeted campaigns — and became a go-to destination, Mike Lazerow says. Time Inc., the publisher of Golf Magazine, took notice. "Mike was going up against them in every ad buy and winning," Kass says. "He was kicking a--." Realizing Golf Magazine needed a stronger online presence, Time Inc. made a bid and ultimately acquired in 2006. Kass says the three founders received $1.8 million each from the $24 million acquisition. Looking back on the decision to buy back and start over, Kass says, "I think we were just stupid, to tell you the truth. We didn't know any better, and we were OK with suffering." They knew they didn't want traditional office jobs and felt a sense of purpose in creating and following through on their original vision, Kass says. To be successful, founders need a tolerance for suffering that's "certainty higher than most people today coming into the market," Kass says. The Lazerows went on to sell their next company, Buddy Media, for $745 million in 2012. Now, they support other founders through personal equity investments and give advice in their new book, "Shoveling S---." "We start things because it's where we find our purpose," Mike Lazerow says. "The best founders learn to love the misery, the suffering."
Yahoo
07-08-2025
- Business
- Yahoo
Veteran fund manager sends urgent 9-word message on stocks
Veteran fund manager sends urgent 9-word message on stocks originally appeared on TheStreet. The stock market has had a rally for the ages since President Donald Trump backed off some tariffs in early April, clearing the way for trade negotiations with major trading partners. The S&P 500 marched over 25% higher since hitting a tariff-fueled low on April 8; however, cracks in the U.S. economy are forming even as President Trump's tariff pause has expired, unleashing a new wave of inflation-unfriendly import taxes. 💵💰💰💵 Weakening employment data and arguably sticky inflation isn't a great recipe for stock market gains, and it doesn't help that August is historically a tricky month for markets. The dynamic has increased investor anxiety, causing a sharp and fast 3% dip late last week. The potential for additional losses has Doug Kass's attention. Kass is a veteran hedge fund manager with 50 years of experience, including a stint as research director for Leon Cooperman's Omega Advisors. On August 5, he sent a blunt message to investors that's likely to turn some heads. Doug Kass sounds the alarm on stocks The stock market's gravity-defying gains have rewarded many investors who took advantage of stocks becoming deeply oversold this spring, including Kass. A self-described contrarian with a calculator, he correctly called the selloff overdone in early April before its big move he's less impressed, saying that the downside risk dwarfs the upside reward, particularly given what he sees as lackluster earnings outside of high-tech. "Non tech Q2 earnings were poor — as was forward guidance," wrote Kass on X. "The rate of growth in economy and corporate profits (ex AI) are rolling over. Market participants are worshipping at the altar of price momentum, speculating in meme stocks and riding the wave of large-cap tech equities." Just as Kass was bullish on stocks in April when everyone else was bearish, now he's turned bearish when everyone is seemingly bullish. According to Bank of America, "all major client groups bought equities last week, led by institutions," resulting in the first stock market inflows in six weeks. Fund manager buys and sells Veteran fund manager who forecast Nvidia stock rally reboots outlook Stocks & Markets Podcast: Small Caps & Your Portfolio With Thomas Browne Legendary fund manager reveals new trades after S&P 500 rally "Bull Markets Die Hard, so I don't anticipate a straight-down correction," wrote Kass in a pre-market post on TheStreet Pro on August 4. "Rather, I am expecting a jagged move lower in the weeks and months ahead. I will be reshorting strength. Friday was likely the first shot across the bow." Kass hits the sell button, shorts Nvidia, Palantir, Tesla And strength is what Kass got. After the 3% dip in the S&P 500 and Nasdaq caused by worrisome inflation and jobs data last week, the indexes rallied on August 4, adding 1.5% and 1.9%, bounce gave Kass the "reshorting" opportunity he mentioned. As a result, he delivered an urgent message, saying he is "back to my largest net short exposure since January." Kass is picking and choosing, and while net short, he still owns stocks, suggesting his shorting stocks is simply managing risk to control his downside if stocks do roll over. Among the stocks he's shorting are technology bellwethers he believes have run too fast, too far, and thus, might be due for a short-term retreat, including Nvidia, Palantir, and Tesla. "The investing world almost universally believes it has discovered a new god in artificial intelligence and machine learning," said Kass. "AI infrastructure CAPEX is already 20% higher as a % of GDP than what was spent on telecom and internet infrastructure at the peak of the dot com boom." Kass doesn't think that's sustainable, leading him to take "trading short rentals" on Nvidia () and Palantir. Nvidia, the AI-chip Goliath, is up 70% in the past 12 months, including 57% in the past three months. The company's shares have recently moved higher on optimism over rising capital expenditure budgets at major hyperscalers, including Microsoft and Meta Platforms. Meanwhile, Palantir's () shares have skyrocketed on optimism surrounding its AI software platform, gaining 128% in the past year, and 58% in the past three months, including a sharp post-earnings rally this week. He is also short Tesla, which has been mired in a sales slump since CEO Elon Musk supported President Trump's reelection bid and took a role in the administration earlier this year at the newly created Department of Government Efficiency. Musk has since stepped down from that role, but Tesla's sales haven't recovered yet. In Q2, Tesla's revenue fell 12% year over year to $22.5 billion. "Current valuations are a poor launching pad for future investment returns," said Kass. Todd Campbell is long Nvidia, Palantir, and Tesla fund manager sends urgent 9-word message on stocks first appeared on TheStreet on Aug 5, 2025 This story was originally reported by TheStreet on Aug 5, 2025, where it first appeared. Sign in to access your portfolio
Miami Herald
06-08-2025
- Business
- Miami Herald
Veteran fund manager sends urgent 9-word message on stocks
The stock market has had a rally for the ages since President Donald Trump backed off some tariffs in early April, clearing the way for trade negotiations with major trading partners. The S&P 500 marched over 25% higher since hitting a tariff-fueled low on April 8; however, cracks in the U.S. economy are forming even as President Trump's tariff pause has expired, unleashing a new wave of inflation-unfriendly import taxes. Don't miss the move: Subscribe to TheStreet's free daily newsletter Weakening employment data and arguably sticky inflation isn't a great recipe for stock market gains, and it doesn't help that August is historically a tricky month for markets. The dynamic has increased investor anxiety, causing a sharp and fast 3% dip late last week. The potential for additional losses has Doug Kass's attention. Kass is a veteran hedge fund manager with 50 years of experience, including a stint as research director for Leon Cooperman's Omega Advisors. On August 5, he sent a blunt message to investors that's likely to turn some heads. The stock market's gravity-defying gains have rewarded many investors who took advantage of stocks becoming deeply oversold this spring, including Kass. A self-described contrarian with a calculator, he correctly called the selloff overdone in early April before its big move higher. Related: Major analyst sends blunt 3-word message to investors Nowadays, he's less impressed, saying that the downside risk dwarfs the upside reward, particularly given what he sees as lackluster earnings outside of high-tech. "Non tech Q2 earnings were poor - as was forward guidance," wrote Kass on X. "The rate of growth in economy and corporate profits (ex AI) are rolling over. Market participants are worshipping at the altar of price momentum, speculating in meme stocks and riding the wave of large-cap tech equities." Just as Kass was bullish on stocks in April when everyone else was bearish, now he's turned bearish when everyone is seemingly bullish. According to Bank of America, "all major client groups bought equities last week, led by institutions," resulting in the first stock market inflows in six weeks. Fund manager buys and sells Veteran fund manager who forecast Nvidia stock rally reboots outlookStocks & Markets Podcast: Small Caps & Your Portfolio With Thomas BrowneLegendary fund manager reveals new trades after S&P 500 rally "Bull Markets Die Hard, so I don't anticipate a straight-down correction," wrote Kass in a pre-market post on TheStreet Pro on August 4. "Rather, I am expecting a jagged move lower in the weeks and months ahead. I will be reshorting strength. Friday was likely the first shot across the bow." And strength is what Kass got. After the 3% dip in the S&P 500 and Nasdaq caused by worrisome inflation and jobs data last week, the indexes rallied on August 4, adding 1.5% and 1.9%, respectively. Related: Fed official sends warning on 'two-speed' economy The bounce gave Kass the "reshorting" opportunity he mentioned. As a result, he delivered an urgent message, saying he is "back to my largest net short exposure since January." Kass is picking and choosing, and while net short, he still owns stocks, suggesting his shorting stocks is simply managing risk to control his downside if stocks do roll over. Among the stocks he's shorting are technology bellwethers he believes have run too fast, too far, and thus, might be due for a short-term retreat, including Nvidia, Palantir, and Tesla. "The investing world almost universally believes it has discovered a new god in artificial intelligence and machine learning," said Kass. "AI infrastructure CAPEX is already 20% higher as a % of GDP than what was spent on telecom and internet infrastructure at the peak of the dot com boom." Kass doesn't think that's sustainable, leading him to take "trading short rentals" on Nvidia (NVDA) and Palantir. Nvidia, the AI-chip Goliath, is up 70% in the past 12 months, including 57% in the past three months. The company's shares have recently moved higher on optimism over rising capital expenditure budgets at major hyperscalers, including Microsoft and Meta Platforms. Meanwhile, Palantir's (PLTR) shares have skyrocketed on optimism surrounding its AI software platform, gaining 128% in the past year, and 58% in the past three months, including a sharp post-earnings rally this week. He is also short Tesla, which has been mired in a sales slump since CEO Elon Musk supported President Trump's reelection bid and took a role in the administration earlier this year at the newly created Department of Government Efficiency. Musk has since stepped down from that role, but Tesla's sales haven't recovered yet. In Q2, Tesla's revenue fell 12% year over year to $22.5 billion. "Current valuations are a poor launching pad for future investment returns," said Kass. Todd Campbell is long Nvidia, Palantir, and Tesla shares. Related: Major Wall Street analyst revamps S&P 500 target amid tumble The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
CNBC
01-08-2025
- Business
- CNBC
Couple sold their company for $745 million, but felt numb after: 'We just couldn't process it'
From the outside, it seemed like Mike and Kass Lazerow had made it. It was 2012, and the couple from New York had sold the social media marketing platform they co-founded, Buddy Media, to Salesforce for $745 million. To celebrate, they had a lavish party for their employees where Mike walked out on stage to a 20-minute standing ovation, Kass says. They were supposed to feel euphoric, yet they didn't. Instead, they felt a "numbness," Kass, now 54, tells CNBC Make It. "We get into the Uber to go home … and [Mike] looks at me and goes, 'OK, so which doctors' appointments do we have tomorrow for the kids?'" Kass says. Since 2007, the entrepreneurial couple who started during the dot-com bubble had been working relentlessly on their new company. Kass gave birth to their third child just before her husband Mike, now 51, came up with the business idea for Buddy Media. She even nursed her newborn while building desks for an office. After three pivots, they finally landed on a business model that worked, and once they did, the momentum was "incredible," says Kass. By the time they sold the company, it was generating at least $50 million in annual recurring revenue, Kass says. Kass, who left her job as chief operating officer of the company after the sale to become a stay-at-home mom, says it took her a full year of small revelations — and therapy — to fully recognize what they had accomplished. "I don't want to compare it to real trauma, but it was like a version of PTSD, because we just couldn't process it all at once," Kass says. Outside of work, "you're the same old schmuck you were before you sold the business," says Mike. They lost their sense of purpose as entrepreneurs, Mike says. "We wanted freedom; that we weren't tied to one business. We didn't want to sit behind a desk." Mike, who was CEO of Buddy Media, transitioned to leading marketing and strategy initiatives at Salesforce. But after four years, Mike says his health started to take a toll from his demanding travel schedule and he missed spending time with his kids. Kass joined several charity boards, but realized that while the work was meaningful, it didn't give her the sense of purpose and excitement she was seeking. "The joy in creating themes and building businesses and winning customers and hiring people, all that stuff that is really exciting," Mike says. Kass and Mike aren't the only entrepreneurs to feel a sense of aimlessness after selling their company. Jyoti Bansal said selling his company, AppDynamics, to Cisco for $3.7 billion was the "saddest day" because he felt he hadn't solved the problem that drove him to build the company in the first place, he told CNBC Make It last year. Jake Kassan lost his drive and identity after selling his watch business for $100 million in 2018, relating the feeling to the movie "Groundhog Day," where the main character wakes up to the same day over and over again, he said in January. To get out of their ruts, Bansal, Kassan as well as Kass and Mike all shifted to careers that got them excited again. Kassan said he's building out his YouTube channel, and Bansal is working on a new startup called Harness, he said. As for Kass and Mike, Kass says they're back in the entrepreneurial game in their own way — supporting founders through personal equity investments and sharing insights in their new book, "Shoveling S---." "I don't think I could do another standalone company again," Kass says. "Those two companies and leading the people part of it — which I take very, very seriously — took just about everything out of me."
Yahoo
24-06-2025
- Politics
- Yahoo
Gabbard installs Trump ally and ‘deep state' critic atop intel analysis hub
Director of National Intelligence Tulsi Gabbard has tapped an experienced former spy and vocal supporter of President Donald Trump to run an analytic hub that has been buffeted in recent months by charges of politicization from either party, according to three people with knowledge of the move. The appointment of Nicholas Kass as the acting chair of the National Intelligence Council is the latest sign that Gabbard is seeking to assert greater control over the influential intelligence assessment group, which weighs major national security issues at the behest of top U.S. officials. Though the NIC has long prided itself as operating independently of politics, it has been thrust into a political mudfight in recent months — one that Kass' appointment might do little to allay. Gabbard set off a firestorm of Democratic criticism last month when she ousted the top two officials at the NIC shortly after it produced a classified assessment that appeared to undercut a key pillar of Trump's hardline immigration policy. Gabbard subsequently moved the NIC from the CIA to the Office of the Director of National Intelligence to better address allegations of politicization, and introduced a more rigorous review process over its work, according to media reports. The three people — one senior U.S. intelligence official and two former senior U.S. national security officials — were granted anonymity because they were not authorized to speak publicly on the move. Officials in the Trump administration and many Republican national security officials argue that the U.S. intelligence community is injected with left-wing bias and needs reform. They are likely to see in Kass two key credentials: significant experience inside the U.S. intelligence community and a willingness to challenge a broken status quo. Kass has written a handful of opinion articles and social media posts expressing intense skepticism of Democrats and a fierce admiration for Trump. In a post on X from November 2024 that Kass has since pinned on his account page, he called Trump's 'epic' victory in the 2024 election 'a thorough public repudiation of the Deep State and its authoritarianism, operations, puppets and supporters, and ideological pretensions and other emanations.' ODNI declined to comment for this story. However, an ODNI official, granted anonymity to speak freely about the pick, asserted that Kass had distinguished himself during a 30-year career in the intelligence community. An expert on Russia, the Middle East and Europe, Kass has held senior analytic roles at the National Security Council, the NIC, the CIA and the State Department, according to his LinkedIn profile. Kass did not respond to a request for comment via his LinkedIn. It was not clear if Kass was being considered to permanently head the office. The position of NIC chair does not require Senate confirmation. Concern over the NIC exploded this April after the Washington Post reported it had found in a classified assessment that the government of Nicolas Maduro was not directing the invasion of a Venezuelan criminal gang inside the U.S. That idea had served as the key legal justification for the Trump administration's policy of deporting suspected gang members without due process. Emails later leaked to the press suggesting Gabbard's chief of staff, Joe Kent, had even pushed NIC officials to change their analysis, alarming Democrats further. ODNI officials countered that the NIC's then-acting chair, Michael Collins, and his deputy, Maria Langan-Riekhof, were themselves biased. They also released more details of the email correspondence between Kent and Collins to buttress their case that Kent's prodding did not cross any lines. Since leaving government four years ago, Kass has worked as a private consultant, the executive director of a small family office, and a senior fellow at the Center for the National Interest, according to his LinkedIn. Though Kass brings deep government experience to the job, he does not appear to have much background in two national security issues Trump officials say they want to prioritize: China, and transnational organized crime. Gabbard, who has recently had a tense relationship with Trump, has a history of making controversial personnel moves. Earlier this year, she had to pull her pick for a senior intelligence role at ODNI over the candidate's prior criticism of Israel.
