Thanks for being here and taking a sip from the Fountain.
This week’s newsletter is packed with stories, lessons, and a few insights sparked by the conversations we’ve been having.
Here’s what’s inside:
Founder Stories – The early hustle of SAXX. Selling 200 pairs of underwear on the street and learning what moves a product.
What Happens When Buffett’s Gone? – I had AI weigh in on how much one of the world’s most valuable stocks could drop the day Warren Buffett passes.
Entrepreneurial Energy – How to stay motivated when there are so many distractions (and why treating business like a sport helps).
Thanks for sipping from The Fountain!
⏳ Estimated Read Time: 5 minutes
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FOUNDER STORIES
The First SAXX Sales
Last time, I told you about sourcing the first SAXX prototype. Now let's talk about the moment it became real.
Time since conception: 3.5 months
Dollars in my pocket: $5,000
Inventory: 200 pairs
It’s only an idea until you make a sale.
I’m in my apartment with 200 pairs of underwear, packaging them into bags getting ready to sell them on the street. I set aside the 1st pair, and hauled the other 199 over to the student union at Western (UWO).
I set up an unsanctioned table at the student union and managed to sell 100 pairs over the next few weeks. I took another 50 pairs and set up a renegade pop-up right in front of Lululemon. The holidays were approaching and I knew people were already in spending mode and at $25 a pair, SAXX was the perfect grab-and-go gift.
Have you heard of SAXX?
My go-to line was “Have you heard of SAXX?”, a false question because of course they hadn’t. But it got them engaged.
Then came my five-second elevator pitch: The evolution of men’s underwear. I’d crack a joke about keeping their balls in check, they’d giggle, which led to a real conversation.
Then I’d show them the inside—let them see and feel the quality for themselves. Women, especially, were the ones buying. They weren’t as price-sensitive as guys; they just wanted to get something great for the men in their lives. I took mental notes on everything—body language, tone of voice, hesitation points. Even today, I’m still reading those signals.
After Lululemon, I went outside of a Tim Hortons and sold the rest of the underwear.
After Christmas break, I had made $4,975. I sold a few more pairs to my friends and family, still treating the whole thing like an experiment.
Balance: $9,975
Looking back, I had no idea where I was going. I made something cool, but it wasn’t amazing. And at that point, outside belief in SAXX was still shaky. There were still professors at school that thought I was crazy and family that had no idea what I was doing. I was still in the middle of writing the business plan. But I was getting more data, and more confident, with each sale.
People doubted me. That fuelled me. Next time we’ll talk about growth, scaling, and business plan.
Something Different
How much does AI think Berkshire Hathaway (BRK.A) will decrease upon Warren Buffet’s Death?
As a long term investor of BRK.A and BRK.B one has to ask, what will happen to BRK upon the passing of Warren Buffet? He is currently 94 years old and his partner Charlie Munger passed last year R.IP Charlie. I love Warren, I saw him speak at UNLV and have been an investor in BRK since 2018 and have bought more over the years since. So I had a gut feeling but I thought: let’s see what AI thinks?
GROK
Prompt: You are a super investor. You have to estimate what Berkshire Hathaway BRK.A shares will decrease on the trading day when Warren Buffett dies. Write a short analysis to me on the % and the rationale that went into the decision. thank you
Answer: As a super investor tasked with estimating the percentage decrease in Berkshire Hathaway (BRK.A) shares on the trading day following Warren Buffett's death, I’ll provide a concise analysis based on market dynamics, historical precedents, and Buffett’s unique role in the company. Given the current date of March 2, 2025, and Berkshire’s unprecedented $325 billion cash pile, here’s my assessment.
I estimate BRK.A shares could decrease by approximately 8-12% on the trading day after Buffett’s passing. This range reflects a blend of rational market behavior and emotional reactions tied to his outsized persona. Here’s the rationale:
Buffett’s Symbolic Value: Warren Buffett, at 94, is not just Berkshire’s CEO but its living legend. His track record—delivering a 19.8% compound annual growth rate since 1965 versus the S&P 500’s 10.2%—has made him synonymous with the company’s success. His death will trigger an immediate “key person risk” reaction, despite succession plans (Greg Abel as heir apparent) being in place. Investors often overreact to such symbolic losses, as seen with Apple’s 2.2% dip after Steve Jobs’ death in 2011, though Berkshire’s case is amplified by Buffett’s longer, more dominant tenure.
Market Sentiment and Panic Selling: Berkshire’s $1.08 trillion market cap (as of February 2025) and its concentrated shareholder base—many of whom are loyal, long-term holders—suggest stability. However, retail and institutional investors may panic-sell due to uncertainty about Abel’s ability to replicate Buffett’s deal-making prowess. Posts on X and historical discussions (e.g., Reddit 2014) speculate drops of 4-10%, with some citing a self-fulfilling prophecy as nervous shareholders exit. I lean toward the higher end due to today’s elevated market valuations (S&P 500 P/E 67% above its norm), which Buffett himself has flagged as overvalued, priming the market for sharper corrections.
Cash Hoard as a Buffer: Berkshire’s $325 billion cash reserve—27% of its $1.15 trillion assets—offers a counterweight. Abel could deploy this for buybacks during a dip, as speculated on X, stabilizing the stock. Buffett’s will reportedly prohibits selling his shares postmortem, and their gradual distribution to foundations over years limits supply shock. Still, the initial trading day will likely reflect sentiment, not fundamentals, before this buffer kicks in.
Historical Precedents: When Steve Jobs died, Apple’s drop was modest (2.2% over two days) because succession was clear and growth was robust. Berkshire’s operating earnings hit $47.4 billion in 2024, up 27%, but its reliance on Buffett’s reputation exceeds Apple’s on Jobs. A 1987 Buffett health rumor reportedly shaved 5% off the stock, suggesting a baseline for emotional impact. Adjusted for today’s scale and stakes, 8-12% feels plausible.
Quantitative Guess: Berkshire’s P/E was 16 in 2019 (a “normal” year per analyst Sven Carlin) versus the S&P 500’s 23, implying no “Buffett premium” baked in. However, perception trumps math on day one. A 10% drop from, say, $747,765 (February 24, 2025, close) would peg BRK.A at ~$673,000, a level last seen in mid-2024—reasonable for a knee-jerk reaction before stabilizing.
Conclusion: The 8-12% estimate balances Buffett’s irreplaceable aura, short-term panic, and Berkshire’s fortress-like fundamentals. Day one will be noisy, but savvy investors (like me) would eye the dip as a buying opportunity, expecting Abel to wield that cash wisely. What do you think—too conservative, or spot on?
I also asked ChatGPT and Gemini: See those answers and full post on Blossom Social.
Do you want to see the other AI's opinion?
Quick Hits
#1. Golf Simulators are an interesting topic, a market that is supposed to double in the next 6 years.
#2. Another “unsexy idea”: Industrial Cleaning for High-Margin Businesses
#3. Finding a way to support large companies grow and scale their internal innovation team. A lot of companies are moving to making their own software products because of the accessibility of building them customizable to their business. Is there a way to aid in that process?
Questions from you!
Question: How do you maintain your energy for your business when there are so many cool things to do in life?
Answer: To maintain my energy - I suggest entrepreneurs treat their business like a sport.
I was a baseball player so I use the metaphor of a year in a life of a baseball player: you start by preparing for Spring Training - so before one goes, they have to get in shape mentally and physically.
They set their season goals and then head to Spring Training. There they work out early to late and improve and learn, work with new or old teammates, adjust to leadership and management, and play some games that mean something but the season hasn't started.
The season for you in your business could last 3-5 years or even a lifetime depending on your success and results. For me I burned out and was a shell of myself after MBA School then SAXX, working day and nights for 6 years. So I needed and wanted to wrap up that season with the sale of 90% of SAXX. From there, the off-season lasted about 3 years while I regained my weight, spirit, and energy to start a new project/season.
I think energy can also be created by having the reasons to achieve and want an outcome.
In terms of maintaining energy as an entrepreneur: negative people are a drain of your positive energy. I dust negative people off and surround myself with people who are fountains.
Lastly I would say something I learned from Warren Buffet and this is part business and part personal development, but he uses a car metaphor:
Health is my number one value: I always say to my wife, kids and others:
"Right after me - you come first"
If we are healthy and strong we will have the mental and physical energy to endure the hardships of being an entrepreneur. So last year I did 50 pushups a day - this year I am doing 100. The Founders’ Hike in Kelowna on Tuesdays at 6:30am has been a blessing as well - so in your community try to surround yourself with some other entrepreneurs and fountains and start a founders hike or weekly walk where one can build discipline, self confidence and positive connection.
Last tricks I have for energy - is Sleep (Matt Walker - Why we Sleep) and naps. I was having a tough time sleeping a few years ago and for most of my life disrespected sleep and was wrong. Sleep - having a consistent circadian rhythm (going to bed at the same time) and taking a nap have really fuelled my energy. Hopefully you’re more energized already and I just want to remind you - "we can do anything when we have the right reasons" I believe in you, believe in yourself and sending positive energy.
The cool things in life are abundant and are more fun when you have the energy to enjoy, also money is just fun tickets at the carnival of life.
We’ve been getting tons of referrals from you guys so we’re slowly rolling out our referral program.
Refer one person and I’ll send you my Personal Net Worth Template, refer 20 and Ria and I will give you a 30 minute consulting meeting!
Send your link to anyone in your network you think you gain value from The Fountain
Thank you for singing up and being part of this community. I am enjoying the writing and your response so far has been inspiring. Thanks for sharing with others who could use some positive ingredients in their mental factory. Please share your ideas and topics you’d like me and the community to explore.
~ Trent
