Episode 153: Stocks

Speaker 0 (0:09): Hey, everybody. Welcome back to an episode of Record of My Father's Day. We're gonna be talking about stocks.

Unknown Speaker (0:16): You you've had a

Unknown Speaker (0:17): recent win, haven't you? What?

Unknown Speaker (0:20): We also gotta tell people that if you if you look over your left ear

Unknown Speaker (0:25): Yeah. That

Speaker 1 (0:26): you can see me waving over there because we're this we're back together again. We haven't been together in, five months, six months since, Moab. We did we did one together then, and now we're back in Montreal.

Unknown Speaker (0:39): We went to New Orleans.

Unknown Speaker (0:40): Oh, yeah. You're right. New Orleans. I can't remember things. I'm old.

Unknown Speaker (0:43): What was that? February?

Speaker 1 (0:44): Yeah. I think dementia set in and told me it was February.

Unknown Speaker (0:47): It does seem pretty active these days.

Unknown Speaker (0:49): Yeah. Who? Me? The dementia or New Orleans?

Unknown Speaker (0:52): All of the above. I would say all of above.

Unknown Speaker (0:54): Okay. That's good that we're straight in the line here.

Unknown Speaker (0:56): All of the above.

Speaker 1 (0:58): Stocks. When you think about we were just we want to talk about stocks because I I for some reason, like a roller coaster. I get interested in things, and I'm interested in them for a while, and then I run away from them. But, for pretty much my whole life, I have invested in using mutual funds and occasionally in stocks when I was not actually working at a company where I would get insider information. I've worked at companies.

Speaker 1 (1:24): When I worked at my first company, we would know that a particular company or stock comp was going to be purchased. Because we would have like the M and A group from Scadner, Cravath, or one of the major law firms would call us and be looking for examples for like a particular type of merger in the railroad industry. And, you know, you'd already know that there's a hostile bid. We want to leverage buyout in the railroad industry. It's like you knew if you knew anything about the technicals that you would know that they were going to do a counter and offer a significantly higher price.

Speaker 1 (1:57): So you could have actually bought the stock. But that used to be against the law. It doesn't seem to be against the law anymore for certain people. But that's another story altogether. Anyway, I invested, I think oh my gosh.

Speaker 1 (2:13): It was like Adams Fund or something like that in in, like, 1990 was there was one of the first funds or 1988 was one of the first funds I invested in, and I, you know, put a thousand dollars in and I'd saved it and put it and started the thing through there. And and that's been great as far as over time returns. Same thing with like, later, I did Vanguard. I worked for a company that had a four zero one ks. I invested in not in stocks, once again, because I worked for Intelligize at that point, and we got information on insider trading.

Speaker 1 (2:50): And and you say, well, stocks you bought wouldn't have been through insider trading. And you're correct. That's true. I wouldn't I wouldn't have cheated. But all I had to do was like, hey, I'm gonna buy Clorox.

Speaker 1 (3:03): And then what happens? Well, the the Clorox gets a bid, then all you got to do is accuse us. And and we would have been dirty. And and we didn't and we never the little bit of money that you would have made by insider trading or even if it's hundreds of thousands of dollars. The business was worth millions, so it would have been risking a bunch of cheats for it's just stupid.

Speaker 1 (3:28): But anyway, more recently, since I've retired and gone away, I've been more active in the stock market. I bought stocks and just been kind of like, wow, this is cool. And it's really kind of neat to talk about the whens. And it's it's funny when you buy a stock, and I was just talking to Zach about this. I said that you buy a company like I bought Clorox the other day.

Speaker 1 (3:50): I think Clorox is going to, it's a perfect kind of company. It's devalued a lot. It's products that the products and certain products that they own, every person in The US buys and uses on a daily basis or a weekly basis. It's something that Berkshire Hathaway would look at and buy. They buy those brands.

Speaker 1 (4:11): And that's a great brand. I would expect them to do something. It's 30% or 40% below what it was. And everybody's downgrading it. So and usually when everybody pisses on a stock, that's when Berkshire moves in.

Speaker 1 (4:23): So my expectation is they will move in and buy that company for a significant premium. I bought an $88.50 or 89, something like that. And for some weird reason, it just started rising. And this the thing about stocks is that now it's risen to 92 or 93, and I feel like, oh my god, it's a great win. And in reality, it's nothing.

Speaker 1 (4:48): It's nothing. I mean, because until I sell, it's I haven't, I haven't done anything. I just bought. But it makes you, it gives you this feeling like you did something smart or whatever, you know, and, and believe me from someone who's been in the market and seen people in the market, a whole lot of it's luck or you got to figure out a way to cheat, you know.

Speaker 2 (5:10): Just different phrasing too. They don't really it's not that complicated. It really is not that complicated of a thing. People want to make themselves believe that they're financial gurus but it is not that difficult of a thing to to really understand that you own a piece of a company and that you are a shareholder and that with all these words that these financial gurus say, they're just meaning to kind of seem a little pompous, a little arrogant, I think. That is the way they don't want normal people understanding how to do it because then everybody has access to it.

Speaker 2 (5:43): I think it's entirely controlled in a way too through these large corporations.

Speaker 1 (5:48): If you look at the rise, okay, up until the late seventies, all your parents, all your grandparents, the majority of people had something called defined benefit plans, which big corporations set up pension plans for all the people at work. They worked there for twenty years, and then they retired and they got paid that way. And those pension plans were guarded internally, and they invested in things that they invested in. So there's no need for public interaction in the stock market. The stock market happened when all of a sudden we started turning over our money saying, okay, I'm no longer gonna give you a pension plan.

Speaker 1 (6:31): I'm gonna give you 2% of your income or 4% of your income annually, you know, if for what you put into this little fund. And as long as you work here, that can grow, and you decide what to invest it in. Right? So once you hand it over to people that, hey, I'm an ironworker, I'm this, I'm that, and the other, it's like they can either learn about the market, which they're experts in the iron business, or they're experts in plumbing, or they're experts in even, you know, pizza making businesses, syndication, all this kind of stuff like that, but not in finance. They have this idea that somebody that comes in as a broker knows more about the market.

Speaker 1 (7:12): But the brokers, my experience, rarely beat a general fund. I've seen this over and over and over and over again. Go in and just put your money in the Vanguard five hundred or the Vanguard World Fund where they invest a little. They have an index and they they take whatever your amount is and they distribute it across all these different funds. And and that gives you overall the best return over and over and over.

Speaker 2 (7:41): It's kind of interesting how many industries are created of a lack of self confidence for oneself. Isn't that interesting? Because if you think about wealth management as well, I mean, the same kind of deal. It's the same deal where it's a lack of self confidence. Even though you have either created this money or a link to some sort of wealth.

Speaker 2 (7:59): You distrust yourself in such a degree that you need to this random person to I don't know, give you five to 6% a year.

Speaker 1 (8:07): Well, you look at if you look at the GDP of The US in the seventies, finance was under 5%. Today, it's over 25%. So what what's happened is is you had these people that are now taking a fee and then putting it into a fund, which is taking a fee off the money that you earned. And so you're getting double feed, and and they're they're not beating the averages. They always say, we're gonna we're gonna beat the S and P average.

Speaker 1 (8:41): And it's like, well, why the fuck would I hire somebody if you can't beat what's an average? I mean, most of them lose. And I remember reading, seeing in the late 80s and the 90s, I was an avid reader of The Wall Street Journal. And they used to do this random walk, random test where they had the five best in brokers or three best brokers in the country would pick stocks. And then they had the dartboard and the guy would put he would put the stock, all the stock symbols up against the wall, and he would throw darts at it, and they would buy those stocks.

Speaker 1 (9:20): And those stocks consistently beat the brokers. So you're like, so I pay you 1%. And don't think about it. Think about 1% in terms of 1% of a 100 is $10. No.

Speaker 1 (9:38): That's 10%. 1% is a dollar. And you don't think like a dollar of a 100. So a $100, a thousand dollars. I mean, you really start to if you put a 100,000 in, you're you're now talking a thousand dollars of your money every year forever.

Speaker 1 (9:55): It hugely impacts the overall gain that you get, and there's a reason that brokers have a really good financial life if they're if they have enough customers that they're drawing a half a point off of or one point off of their assets over a year because it's it's it's incredible amount of money over time. It really is. And it's and and you can do it yourself.

Speaker 2 (10:17): Oh, definitely. You definitely can.

Speaker 1 (10:19): And you don't have to be mister smarty pants. You know? I've talked to people, but I think there's there's a fear that you're gonna do something wrong.

Speaker 2 (10:27): Right? You're gonna lose absolutely everything. That's number one. Well, there was somebody that I remember when I was in middle school was a mom to I can't remember who it was. Well, I won't name names actually.

Speaker 2 (10:38): That makes more sense. But was talking about how they lost 25% of their net worth on mutual funds. I'm like, how is that even possible? Well I got I don't know. I think that looks like a really interesting There

Speaker 1 (10:48): was something called Black Monday. It was '87.

Speaker 2 (10:52): Well, this was in 2015. So I don't know. Maybe they were

Unknown Speaker (10:55): 2008. 2008. Maybe they're trash.

Speaker 2 (10:57): 2008.

Speaker 1 (10:58): I lost, 30 no. 28% of my invested monies in in in 2008. So That won't ever happen. That if you had a dollar, that all of a sudden, you had 72¢. Only if you cashed out.

Speaker 1 (11:17): But then you also realized when you put the dollar in five years ago, it was a quarter. And now it's a dollar. And you're like, you're counting it as a dollar even though you put 25¢ in. So you look at it as a dollar and a dollar drops back to 72¢. And you're like, well, actually, originally, I put 25¢ in.

Speaker 1 (11:36): So I just haven't made as much. So it's really, really hard for people to reconcile the whole idea that for some reason, once they see a gain to a point, a senior point, they will they will never believe that that isn't the point that they got to. You know, it's it's a very weird way. And then if it drops 5% below that point, they'll believe that they lost money. And in reality, they didn't because you don't lose any money until you sell.

Speaker 1 (12:04): Nothing. And if you bought at ten and you and the the market goes to 25 and you sell at twenty, you still made 10. And you got that that that thought process is something that's very, very difficult to teach to people. You You know, you see it you see it in options. Options all the time where people get options in a company and they're like, you know, as soon as these are vested, you know, and then halfway through before they're vested, the company's worth $10,000,000 or 15,000,000.

Speaker 1 (12:32): We got a $50,000,000,000 valuation. And then all of a sudden, before they go public, they go bankrupt and they tank. Then they risk zero. Then they think they lost 300,000,000 when in reality, all they did was they lost the price or whatever that option was. So it's an interesting way to look at it.

Speaker 1 (12:49): I mean, and I think that if you put money in the stock market, it should be part of an overall portfolio. I think that now just I don't have any money in bonds. Well, do. I do. I have probably, I'm heavily invested.

Speaker 1 (13:07): My money's heavily out of the market because I feel like we're in a bubble right now. Three quarters of it is on the sidelines. And the sidelines for me is I'm in the Vanguard Federal Money Market Fund, and it owns about, it makes about 4% a year, which

Unknown Speaker (13:22): Higher than a savings account.

Speaker 1 (13:23): Yeah, it's great. And then there is CDs that I buy every, I do some like a quasi ladder portfolio and a ladder is basically you buy a one year, three year, a five year, a one, two, three, four, five CD. Say today I buy, I buy a one year bond, a two year, three year, four year, five year, then you could call a CD a bond in essence, but it's more guaranteed and less volatile and all these and you're going to get the principal back and all these things. But anyway, a CD, if I buy all of them at the end of year one, I buy a five year CD. At the end of year two, I buy a five year CD.

Speaker 1 (13:58): At the end of year three, and so that regulates interest rate volatility. So if interest rates go up, you're getting it at a higher rate because you're only got twelve months into your next one's up. So if you think like that, you're like, that's the best way to invest in bonds. Now bonds have been shit. They have been shit for a decade.

Speaker 1 (14:18): The market has been nuts. Now, one of the things that you always hear and always proves to be correct is the market goes up, up, up, up, up, up, and then it has an adjustment. And the adjustment is a fucking crash. You know? I mean, when you think that people took almost they took a 28 or 30% haircut twelve years ago, fifteen years ago, in 2009, just wiped them out.

Speaker 1 (14:48): A lot of people. So if you're if you're borrowing to invest, really get, it's a truck, you know, you get doubly hammered. But for the most part, it's like if you put your money in, you leave it in there until you need it in retirement, yet you use a little common sense that if you know your expenses are coming up, and you know there's volatility in the marketplace, you have to set money aside. You have to sell your winners or, you know, if you're coming to tax time, some people, do you think your losers are really going to recoup? I mean, I always do this every year in December.

Speaker 1 (15:18): I look at where I'm sitting. I look at I look at the stocks that I purchased throughout the year. And I say that one, that one has done shit for the last three years. It's time to get out and take the loss. And then I will use that as a write off against other taxes.

Speaker 1 (15:32): It's not, it's not, you know, it gives you a gives you a when people say write off it, you know, whatever your if your income's a thousand dollars and you lost $3 or a $100, you get a $100. Your your your top line gross is a $100 less. So it's not dollar for dollar, you know, a break. It's your tax rate. It cuts your tax rate dollar for dollar by whatever the percentage of your tax rate is.

Speaker 1 (16:03): So we're and and I hope I'm not being too complicated. Am I being too complicated?

Unknown Speaker (16:06): I don't think so. I think that no. It makes sense. And I'm glad you brought up the latter portfolio earlier because I think that that's one of the easiest ways and low risk ways to make money going forward. You know?

Speaker 2 (16:16): I think as well the story that I was talking about before about the woman that lost 25% of her net worth in 'eight, I wonder what would happen if she had just left it in and didn't sell. A lot of people are wondering, well, is this the worst it's going to get? Is it going to get worse and am I going to lose more money? But you should never invest money that you want liquid in the first place. But are you willing to take such a large hit that the money that you didn't have liquid is now going into the money that you are wanting and needing, you know, to pay off these Right.

Speaker 2 (16:50): These gross debts. Yeah.

Speaker 1 (16:51): So then you're forced to sell because remember, you never lose anything until you sell. Right? When the market dropped in 2008, I'd already taken out. I, for some reason, in 2008, I took about 40% off the table, paid a shit ton of taxes, took it off the table and put it in bonds or CDs. And I don't, I'm not a bond buyer, I'm more like a CD buyer or a high interest rate fund.

Speaker 1 (17:21): But anyway, I for one of those rare times that I actually made the right decision, and I didn't take as much of a haircut, which I would have taken a much bigger haircut if I'd have been in the market completely. And I had a lot of friends that were, but most of them, you know, they're in their fifties, you know, and it's like you're not retiring for twelve years. You're not grabbing that money to pay somebody college education. If you were planning on that, you would have set it aside before, you know. And so it's gonna bounce back in ten years, and it did more than I mean, it's triple, tripled what it was then.

Speaker 1 (17:56): So all that money, if you would have taken off the table, you would have realized the loss. You would have not gotten into another major bull market. We've seen this over and over and over that after a substantial crash, generally, world comes back. They come back to reality thinking that, oh, we're going to invest and we're going to take the companies change their direction. And that's happened since the stock market began.

Speaker 1 (18:22): And we're gonna see it happen again. We're gonna see another crash.

Speaker 2 (18:25): Well, I'm wondering if people also thought, wait, if it was gonna be like 1930 again where we had the dust bowl and these people were basically starving to death, you know.

Speaker 1 (18:35): I I don't know. I I would say that the people that are in the stock market that I put the money in there that they don't need on a day to day basis.

Unknown Speaker (18:47): Non liquid.

Speaker 1 (18:48): Yeah. They'll they would they would live through the dust bowl.

Unknown Speaker (18:51): Those people would. Yeah.

Speaker 1 (18:52): If if you have a substantial portion of the country and that the thing is when we talk about the stock market, I think only 10 of Americans are invested.

Unknown Speaker (19:01): Yeah. It's something like that.

Speaker 1 (19:01): So we're not talking about, you know, 90% of people out there are like, yeah, when I can pay my rent, then I'll you know, you you can't you can't get in the stock market if you're paying your rent. You can't get and well, I I would I would tell people, I don't know how to how to do this. I mean, because when you have discretionary income, if you ever have discretionary income, if there's a little bit of extra, that is the time to that's your rainy day fund, you know, for an essence. And that rainy day fund, a good place to store it, is in the stock market, so it'll gain it'll gain value. That's the theory.

Unknown Speaker (19:42): Yeah. What is it? 75% of live paycheck to paycheck or is it not?

Speaker 1 (19:45): Yeah. And if you don't mind paycheck, if you're paycheck to paycheck, all this to to you is just bullshit. You know, it's fuck off rich guy. I I can't I can't afford to do that. And I I understand that.

Speaker 1 (19:55): I I was on that side. I was on that side for twenty seven years. So I ate those. I ate the bologna sandwich. Mustard was extra.

Speaker 1 (20:09): Used to bring the ketchup packets home. So I had ketchup for my hamburger that, was, you know, hamburger like product. I mean

Speaker 2 (20:20): Going forward, do you think something like Enron could ever happen again where you have a gas and fuel market and ulterior market to where you can trade, supplies like that?

Unknown Speaker (20:29): You Do think that that would ever

Speaker 2 (20:30): be something that isn't considered a giant scam like Enron was misleading their investors? Do you think that that would actually be a pertinent market and would actually exist?

Speaker 1 (20:40): They pursued fraud. They they they truly there's are there are things that are impactful. Like, we had a crash in 2001. That was the they called it the end of the bubble. One of the things that precipitated the crash was a company called MicroStrategies.

Speaker 1 (20:58): MicroStrategies stock was crazy. The guy that was the head of it, Sailor, Michael Sailor, multibillion, dollars 14,000,000,000, just just as was going to give 100,000, 100,000,000 to an educational institution to start to teach people to be blah, blah, blah, whatever the case may be. Well, they were doing something called pulling earnings forward to hit their earnings numbers consistently over time, which we accounting standards, it's called using cookie jar reserves. You know, and they were, you know, they were cheating. And they got caught.

Speaker 1 (21:33): And when they got caught, the price of their stock went from like, I don't know, I don't remember the numbers is 300, 500, 1,000, something like that. And it dropped as low as 7. So that affected the whole marketplace. That was a big crash in o one. There was a big crash in 08/09.

Speaker 1 (21:50): There was a big crash. I was I remember I went to work for a trader on Black Monday that 10/1987. My first day was Black Monday. And I remember calling the trader because I was finally working for a Wall Street firm and calling the desk, they're like, fuck. It's a free fall.

Speaker 1 (22:10): Who gives a shit? You know, that's how they answered the phone because they lost a third of their money in two days. There were people that jumped out of windows in New York. There were firms that they dealt business with that were no longer there the very next day because they traded on borrowed money. Can you imagine if you borrow a million dollars and you put it in the market and you lose a third of it, guess what happens?

Unknown Speaker (22:41): Gosh.

Speaker 1 (22:42): You're you're you're way underwater. Oh, yeah. You know? But those people that ran away on on that day and didn't come back, guess what happened? They missed the one of the larger bull markets that we've seen in the last century.

Speaker 1 (22:57): Same thing that happened in 09/11. 09/11, the markets, they went they they fell four or 500 points. You know, they could not keep up with the trades. You know, it's just so interesting to see how it's played out over time. You know?

Speaker 1 (23:15): And and it's weird, you know, when you talk to people about buying stocks, we can all talk about ours. I mean, Clorox is doing well for me today, but in a week or two, won't. Who knows?

Speaker 2 (23:23): Well, those people in '85, you know what they missed? They missed the 300% increase in Halliburton after 09/11. Know? Mhmm. They missed that.

Unknown Speaker (23:31): Know? Yeah. Shout out to Why

Unknown Speaker (23:33): did that happen?

Speaker 2 (23:34): I wonder why. Definitely definitely didn't know that the towers were gonna be hit. No way.

Unknown Speaker (23:40): Well, you see.

Unknown Speaker (23:40): No way.

Speaker 1 (23:42): Today, the S and P 500, if you buy the index, which is trillions of dollars in money, spot, they buy that 500 stocks, a basket of them, and they're weighed on the market cap of each firm, like how big it is. Well, and but they also have a few other criteria, which they happen to wave, which has got a lot of people angry today because they're putting SpaceX in it, they're gonna put these other two big AI companies. Right now, when you buy a let's say use a dollar to buy the S and P 500 index, you buy an index fund, you put a dollar in. 8.7¢ of that dollar. 9% is used to buy Nvidia stock.

Speaker 1 (24:31): Okay. 9%. Almost 9% for Nvidia. Do you know when you when you put in the other three companies, the tech companies, it's gonna be Broadcom, SpaceX, Nvidia, what the OpenAI, I think it is, or AI Open or something. And there's one other.

Speaker 1 (24:49): It's gonna be 43% of the index. So every time we put a dollar in, 43¢ is gonna go to 4 companies. Yeah. I was looking at

Speaker 2 (24:59): the Broadcom chart the other day. The Broadcom chart is crazy right now.

Speaker 1 (25:03): It's absolutely insane. Think about the control that would give you if you were in that company and you wanted to make the share price go up or down. And if you would make the share price go up or down, the index would go up or down. So you're now having four or five companies that are control a whole freaking index. Do they have meetings?

Speaker 1 (25:25): I mean, to me, that is like an amazing opportunity for collusion and trillions of dollars in money made because a lot of money is traded every single day through those shit companies, hundreds of billions of dollars. And so you're I I I see that is a opportunity for fraud, and I see the Dow actually caving to SpaceX and putting them in before they even have earnings, before they have you know, before they're seasoned. They're supposed to be in the it's like six months or nine months before they actually add them to exchange. They're gonna add them five days after they go public. And and when you say, well, what's the big deal when you put a company stock into the s and p five hundred?

Speaker 1 (26:13): Every single fund out there that that has anything relationship with the s and p five hundred and buys that index, which is $10,000,000,000,000, every time a stock gets put into it, the stock price pops really high because a ton of people buy the stock. And if you know anything about supply and demand, a lot of money chasing something makes the price of that something go up every time.

Speaker 2 (26:45): We'll ask you a question about that along the lines.

Unknown Speaker (26:48): So that's artificial.

Speaker 2 (26:49): Jersey Mike's going to IPO very, very soon. And that you know, the presale stage. What do you what do you think about the acquisition that BlackRock did on Jersey Mike's? They bought Jersey Mike's recently. And now they're going to IPO.

Speaker 2 (27:01): Do you think then I mean, what do you know about restaurants? I mean Restaurants that go to IPO in the past.

Speaker 1 (27:07): The ones that I've seen, Chipotle. What's that pizza? Grotto's. Grotto's IPO?

Unknown Speaker (27:15): Yeah. Really? Interesting.

Speaker 1 (27:17): A long time ago. Boston Chicken. Lot of the bigger companies that go and spread. Fleming's is part of a restaurant group that's owned by oh god, I can't remember.

Unknown Speaker (27:29): It's not the big American restaurant chain, is it? Yeah.

Speaker 1 (27:32): Think that's it. I know that is owned by by them, by this company and its trades. And usually, what I see is that they, there's a there's an initial amount of hype. They take their restaurants and they spread them across the country as much as possible. And then all of a sudden, they overextend.

Speaker 1 (27:56): And then then they have a crash. Equity And then comes in, BlackRock comes in, buys them, sells off the restaurants, leases the land back to them, to BlackRock themselves. They get fees for that over four or five years. They make the income statement of the balance sheet look a lot prettier now because there's no, you know, there's a big there's a big chunk of debt over here, but they no longer have restaurants that aren't making, you know, 2,000,000 a restaurant or 1,000,000 a restaurant or whatever the case may be. And then see what it is, it's a loop.

Speaker 1 (28:32): You see the loop. And so what I would expect is you're probably gonna see a pop of the price the first few days. It's gonna drop and it's gonna be stagnate. And then in three years, Jersey Mike's gonna be bankrupt. That's that's my call.

Speaker 1 (28:46): It's gonna it's gonna go out because it's it's not exciting.

Unknown Speaker (28:49): We just saw that with the bread lobster too. Well, you know what's funny?

Speaker 1 (28:52): And the expansion and expansion isn't there. I mean

Speaker 2 (28:55): Is the news about the is already saying that they cut the product in half of Jersey Mike's and how they're already making the product worse, which is the sandwich. Are always saying people are saying currently that the meat and cheese that are brought on the sandwich is far less than what it is like before and after photos. And that's really interesting, I think, to just Well,

Unknown Speaker (29:17): that's what Project XP does.

Speaker 2 (29:19): Yeah, but at the same time, I can't imagine, you know, selling something that you've worked your entire life for just, I don't know. Isn't that kind of interesting? And you know that it's going to be destroyed at the end of the day. This thing that you grew to a multi multinational chain. Is it is it international?

Speaker 2 (29:34): It's not international. I think it's national.

Speaker 1 (29:36): You mean like global securities information,

Unknown Speaker (29:38): Yeah. In in a very similar way. Yeah. No. In a very

Speaker 1 (29:41): very Intelligized. One was 18 and one was 10, and we watched them grow to a certain bit, and then we handed them over. Intelligized is still around. Global securities information disappeared in two years. Within five, it was from librarians, not from me, not, you know, independent, was the most horrible destruction of a private company by a large company ever in the legal tech industry.

Speaker 1 (30:08): They they took the price of the product and they raised it from 2 to 2 to $16 a minute in four years. So all they did was add the price. They didn't change the product. They changed the interface by making things more colorful and more weird, and they changed the name so people would get Nice. You know, the new company name on there, and people just said, bye.

Speaker 1 (30:30): And they moved. And then I jumped on to another company that was in the startup mode. It was like a year, year and a half in. And they we ate their lunch along with a lot of other lunches and grew big and sold it again in 2016. And, I mean, you see it.

Speaker 1 (30:48): You know? Once you sell it, it's gonna flatline because they're gonna wanna make profit. And see, when you're growing a company, you're not looking at how much money you're gonna make. You're looking more at how you're gonna grow it and all these in a positive way, which is a different animal. I wasn't looking for, you know, every every $10 new in revenue was, you know, 42¢ on my pocket.

Speaker 1 (31:14): So it's like but I didn't look at it that way. I looked at more of a stability, a you know? But you get, you know, there's a there's a size. I mean, for me personally, that's when I see the people at the large companies. You you lose the connections that you have when you're a small company.

Speaker 1 (31:35): But I'm I don't know how to I don't know how to stay still. You know? I think that's a I couldn't start a company. And I mean, I I talked to people that wanted me to come on board a company, and I was like, so we're just gonna raise profitability. We don't wanna grow the company.

Speaker 1 (31:50): Don't wanna sell the company. I'm like, I don't I don't know how to do that. I don't I can't I can't run-in place. I need to run forward. You know?

Speaker 2 (32:00): Yeah. I've met people that just want the the small Status quo. Wanna keep it small. But at the same time, those people aren't even turning a profit yet. Like, well, I

Unknown Speaker (32:10): don't wanna Oh, these guys are making tons of money.

Speaker 2 (32:12): No. No. What I'm thinking of is individual business owners that own a small business. And and I don't know, don't know. I've met many a person that just wants it in a certain way.

Speaker 2 (32:21): They don't wanna work too hard. And I think that that's funny that you wanna own your own business and not work too hard. I don't know. I don't think that's really possible, You know? Yeah.

Unknown Speaker (32:29): I I think that it's either Well,

Unknown Speaker (32:30): if you

Unknown Speaker (32:31): wanna do better work for it to turn a profit or

Speaker 1 (32:33): you're not You're always gonna have to do more or you're gonna find more people that will do more. I mean, I look at, like, when you look at success stories for restaurants, look at Five Guys. You know? That is a success story so far, but they haven't sold it. You know?

Unknown Speaker (32:49): The products I will say

Speaker 2 (32:50): the product has gone downhill exponentially. Yeah. Gosh. I went there recently. I was like, this is gross.

Unknown Speaker (32:55): This is nasty.

Unknown Speaker (32:57): I still like it. I I think it's unusual. It bad. Yeah. When did you when did you eat?

Speaker 2 (33:03): When I got back from Mongolia, that was the first thing that I wanted. Woah. And the bun was soaking wet.

Unknown Speaker (33:09): Oh, you're

Unknown Speaker (33:10): It it made me wanna just thinking about it now. Makes me kinda gag. But

Speaker 1 (33:14): Well, that makes you that makes you think they use a cheaper cut of meat, more grease.

Unknown Speaker (33:18): Yeah. Right? Worst bun too. The bun was just falling apart. I'm like, this is disgusting.

Speaker 1 (33:24): Yeah. So it's either the bun makeup was a cheaper ingredient. Because usually what happens when they grow, it's like someone comes in and says, hey, Zach. You know, if we made your hat out of this material, it would save you 50¢. And you're like, well, that's 50¢ times 5,000,000,000.

Speaker 1 (33:42): So that's that's a 100,000,000 billion billion dollars. And you're like, cool. That's that much more money I can do other things with when you're in reality, the only reason I buy your damn product is because you make out of that great material. And I think that people forget, or they just don't care. And they think that, you know, fuck the consumer.

Speaker 1 (34:03): We're gonna we're gonna water down the bleach. We're gonna we're gonna water down the soap. We're gonna use cheaper meat cuts, we're going to use crappier potatoes, we're going to, we're going to use, we're going to use less this, that and the other. We're going use cheaper ingredients in the, in the lobster biscuits that we make. We're going to, I mean, the lobster we're gonna make is no longer gonna be lobster.

Speaker 1 (34:22): It's gonna be lobster and other substances, you know, and Taco Bell went from when they first were a Taco Taco Bell company, which I love Taco Bell. They were meat tacos and now they're Stand. Now they're not meat.

Speaker 2 (34:39): They're Well, of which, you know what really I'm wondering about what this conversation makes me think so deeply about is is Long John Silver's a publicly held company?

Speaker 1 (34:49): My wife loved them. Arthur Treacher's, that was the one she liked. I'm not a I see, I think that chains like that are they're basically they're roller coaster.

Speaker 2 (35:02): It is not a publicly traded company. The chain is owned by LJS Partners LLC, Consoratorium of Investors and Franchisees after they purchased the brand from Yum Brands in 2001.

Unknown Speaker (35:15): Thinking of.

Unknown Speaker (35:15): Yum. Yeah.

Speaker 1 (35:16): They're the ones that own Pizza Hut. Yep. Franchises.

Unknown Speaker (35:19): Taco Bell KFC.

Speaker 1 (35:21): In KFC and they do the triple, you know, and they've done that for a while and and a foods, I mean, Pizza Hut used to be the best pizza in the world and now it's just shit.

Speaker 2 (35:29): Well, KFC too is the most disliked chicken brand I think out of any of them.

Unknown Speaker (35:33): Well, it used to be really good. And then all of a sudden the chicken started bad. Now the chicken got so small and the breading got so big.

Unknown Speaker (35:41): Well, it's because the,

Unknown Speaker (35:42): You know why?

Speaker 2 (35:42): It's cheaper. Well, they're coming out with these articles now about how in the past five years that they're just throwing a live chickens and boiling water. And in the level of kind of the way they killed the chickens is very odd. I say, well, it's quicker. Right?

Speaker 2 (36:00): And it's as opposed to spending more time a, don't know, ball kind of way. Exactly. So it's kind of a lot of that is coming out, which I think is not doing too well. One for their overall product and two, for their kind of image.

Speaker 1 (36:18): I was always a Popeyes chicken lover anyway.

Speaker 2 (36:21): I love Popeyes chicken. I mean, sandwich kind of when the sandwich came out, that is when we knew who won the war. You know? It wasn't the battle anymore. It was the war.

Unknown Speaker (36:32): And the war was over in

Speaker 1 (36:33): 2020. Third in the chicken battle until that sandwich came along.

Unknown Speaker (36:37): Crazy. Right?

Speaker 1 (36:38): Because they were spicier and greasier. I mean, you could not we used to eat Popeyes downtown, and it was like going to the dirty water dog factory. You went there, and there was just you were you were a disgusting mess after you ate. You'd have to eat, and you would get 10 napkins, and then you would have to try to go to the bathroom to wash your hands without opening the door because then the door was this sticky, nasty, gummy stuff.

Speaker 2 (37:03): And it's the why is the door of every chicken restaurant sticky, the door handle? You know? That that is such a fact.

Unknown Speaker (37:09): Because I visit them all. That's why. And I don't wash my hands.

Speaker 2 (37:12): The I do. I had a feeling. But oh, you know, you wanna know some cool stuff about Yum brand. So they opened this year at about a $144. They peaked in February at a $162.

Speaker 2 (37:23): Sorry. Is that March? Nope. February. I was right.

Speaker 2 (37:25): A $168 peak, and then now they're sitting at $1.50. Interesting.

Unknown Speaker (37:30): Oh, so they're not

Speaker 2 (37:31): kind of chart for the last six months there.

Speaker 1 (37:34): Well, I was looking at Clorox, and they were like one ninety five years ago. And now they're then then they dropped to the eighties. I think it's the eighties.

Unknown Speaker (37:43): Well, yeah. Pandemic must adjust. Yeah. Well, no. I rounded up.

Speaker 2 (37:47): Some of Purell. I can't imagine.

Speaker 1 (37:49): I think that's I think that's part of the key, and it and it came back. And and a lot of people in the last year have downgraded them because of the debt. They have a huge amount of debt out there. But I still think, and I'll reiterate it over and over, that they're gonna be they're gonna be bought by Berkshire. In the next twelve months, you're gonna get an offer.

Unknown Speaker (38:06): Knock on wood.

Unknown Speaker (38:07): That's my that's my track. Them.

Speaker 1 (38:10): They they they have all the attributes to what if Warren Buffett was still in charge, he would buy them. I'm assuming that now

Unknown Speaker (38:18): attributes are you referring to?

Speaker 1 (38:21): International brand. Everyone knows what a Clorox is. Everyone knows the the products that they sell. When you see any any one of their they got a they they got all these different, what do you got? Home home cleaning agents and aids.

Speaker 1 (38:35): When you look at them, you're like, oh, you've got Swifter. Oh,

Unknown Speaker (38:38): you've Mr. Clean too. Right?

Speaker 1 (38:39): They own Mr. Clean. They own all these brands that are just, like, iconic, and it's around for fifty years. And this is the kind of shit that They

Speaker 2 (38:47): will exist within the next five to ten years, I imagine.

Unknown Speaker (38:50): And and they cost a nickel to make, and they sell them for $2. And, you know, and it's and it's like, wow. This is something that as long as they don't fuck with the ingredients, they will be continuous.

Unknown Speaker (39:03): Which from what I understand, I don't think they have.

Unknown Speaker (39:05): No. I don't think they

Unknown Speaker (39:06): have at all. It still smells like bleach to me.

Speaker 1 (39:08): Yeah. I mean, don't don't be a Coca Cola. New Coke. God.

Speaker 2 (39:12): I don't understand how Pepsi is still around. I don't really get that. We know which one's better. It's Coke every time. Yeah.

Speaker 2 (39:19): You know what was funny? Somebody was talking about, you know, those bars that you go to where they only have Pepsi products. Yeah. And how somebody kind of blackmailed these bar owners into buying Pepsi. There's like some Pepsi salesman out there that's blackmailing bar

Unknown Speaker (39:34): owners. That's what they do.

Speaker 2 (39:34): I think that that's a great concept. Well,

Speaker 1 (39:37): if you're if you're a bar and someone caught and a Pepsi guy comes up and you have a you have a and Coke cost $50 a a gallon, and the guy and the Pepsi guy goes, well, we're we're 45. And he goes, but for the next five months, I'll sell it to you for 25. And you're like, oh my god. Automatically in your mind, you're going, are my customers gonna be as happy with Pepsi? Nope.

Speaker 1 (40:07): Well, most of them are.

Unknown Speaker (40:09): You think so? Really?

Speaker 1 (40:11): You if you look at let's let's pull up the studies. Look at it. It's it's it's nominally different. Nominally different. If it if it it was to significantly impact sales, Pepsi would be gone.

Speaker 2 (40:24): Let's see. Cheaper. Yeah. Doesn't Gurrata it's funny enough that we're mentioning Gurrata's, I think, only has Pepsi products as well.

Speaker 1 (40:31): They may have not gone public. I wasn't sure. I thought they went public. They filed an s one at the SEC, and they never went or something. I was looking for them.

Speaker 1 (40:38): I I may have just been hallucinating because there was a number of restaurants that came out that were they were copying Boston chicken. Remember Boston chicken?

Speaker 2 (40:49): Significantly fewer customers in the smaller market share than Coke. Coca Cola is the undisputed leader in global and domestic beverage.

Unknown Speaker (40:58): Yes.

Speaker 2 (41:00): Holds roughly 19.2% of the market remaining firmly in first place than Coca Cola does. Pepsi has slipped to roughly 8% market share falling behind both Doctor Pepper and Sprite in recent years. Interesting.

Speaker 1 (41:14): Costs more? Coke or Pepsi?

Unknown Speaker (41:16): What costs more? I wonder what the actual cost is too.

Unknown Speaker (41:22): You know, that's the big.

Speaker 2 (41:23): But definitely Coke costs more. Good thing. Cost significantly more than Pepsi, yep. And if there's dominant market share and stronger brand loyalty, Coke commands a premium and rarely discounts as deeply. Pepsi.

Speaker 2 (41:37): There we go. Frequently relies on aggressive promotions and retailer discounts to win over price conscious consumers.

Speaker 1 (41:43): Bingo. There you go. They they get they buy the Pepsi and I'm like, Zach's gonna come in and buy my Five Guys burger, and he loves the burger. He'll buy a Coke or a Pepsi. I'll just give him a Pepsi, and I'll and I'll increase my margins.

Speaker 1 (41:58): And then I don't realize that I'm chipping away at Zach's loyalty. And that's the problem when you go with a cheaper alternative. It's it diminishes the overall brand. Always does. Always has.

Speaker 1 (42:12): You know, you need to find better if you want to be number one. If you don't care and you're always looking about profitability and you're going to get out of the business in three years, basically fuck the consumer, right?

Speaker 2 (42:22): Well, think Pepsi is generally more willing to negotiate with a smaller restaurant too.

Speaker 1 (42:27): Why would they be that way? Cause they don't have a strong brand.

Unknown Speaker (42:30): Exactly.

Speaker 1 (42:31): And think about it. If you're a restaurant, you've got one or the other, except for like, doesn't big buns only have that root beer ish type nasty?

Unknown Speaker (42:43): Oh, yeah. Like the Jones soda

Unknown Speaker (42:45): or whatever it

Speaker 2 (42:46): is. That's isn't that interesting that like you know what I will say though is, what was district taco? District taco was another one. It was a local DC and Virginia chain started in Virginia, I think in a food truck. And then the first location I remember me and you used to go when I was 14, 15.

Speaker 2 (43:03): Absolutely incredible. As soon as they opened that second location in Tyson's Corner, fell through the floor. Was terrible. It was like as if they dip the taco in water. I don't know what it was.

Unknown Speaker (43:13): It was very,

Speaker 1 (43:13): very odd. Changed the you can't that's the thing that Five Guys was able to do over time is they were able to copy exactly what they did over on King Street. I lived across the street from the original, and we used to hangover Sundays when you walk across the street at 11:00. 11:00 in the morning, they opened up on Sundays. And there was a line, 30 people long, waiting at 11:00 to order Five Guys burgers.

Unknown Speaker (43:41): Well, I think the key is very, very, very strict franchisee rules. That's the only way that you have to do it.

Unknown Speaker (43:47): And you you have

Speaker 2 (43:47): to enforce those by fines.

Unknown Speaker (43:49): And you control the food. You control the food product. You you can't buy your own. You gotta buy my freaking potatoes. You gotta do this.

Speaker 2 (43:54): That also from Idaho as well. They don't change location to location. It's always the same potato farm every time.

Speaker 1 (44:01): That can fatten the home the home guys' margins. The thing is, think about McDonald's. They do the same thing. You know, no one buy makes their burgers. No one does anything.

Speaker 1 (44:10): They buy it all from a central location that's completely uber controlled by the guys in charge. And the that's the only reason you wanna be able to eat a McDonald's burger in New Zealand and Zimbabwe and Buenos Aires The difference. And LA. And it should be the same.

Speaker 2 (44:26): Is the employees that are hired because, man, I've been getting the last time I ate McDonald's, they they just messed me up with the amount of Big Mac sauce they put on the burger. It was like a I'd never like like a human fluid sandwich in a way. And same thing with the mayonnaise. They just like, what the

Unknown Speaker (44:45): fuck is that? Well, you know what the problem with with McDonald's is on the mayonnaise?

Unknown Speaker (44:49): Too much sauce. It's

Unknown Speaker (44:50): have a like gooper. They have a gooper. I had the chicken sandwich there, and they put a blob of mayonnaise in

Unknown Speaker (44:56): the middle.

Speaker 1 (44:57): When I was a kid, we used to make bologna sandwiches for for our, for lunch. And my my my sister and I were were in charge of making lunches for the four of us, you know, and my because my mom worked all day and all this other kind of stuff like that. But when my mom made the sandwiches, there was a blob of mustard, just a pile in the middle of the sandwich. And Yeah. But we spread it around before we put the bread on.

Speaker 1 (45:25): You know? And it was just like, because you're tired. You're tired, and you're making four sandwiches. Throw it on. Done.

Speaker 1 (45:33): Right? As opposed to but if you're gonna eat the you're spreading it.

Speaker 2 (45:38): I kind of like my my liquid spread. Yeah. No. I would definitely say that. Oh gosh.

Speaker 2 (45:43): No. That was yeah, I don't think I, that, well, I went two years ago, funny enough because McDonald's did a rebrand for their Big Mac and it was phenomenal. Within the first week, or a month, I will say. After, it was not nearly as good. Not nearly as good.

Speaker 1 (45:59): Quality is quality is a hard thing to keep because people get lazy.

Speaker 2 (46:02): First week after the rebrand, it's only good.

Speaker 1 (46:04): Yeah. Well, you know, people get people are I mean, they're weak. They're they're they're not consistent. And if if a corner can be cut, they cut the corners, especially when it comes to profitability for the home store or the the store being managed. This happens over and over and over again.

Speaker 1 (46:22): We're talking about restaurants, and we were starting out talking about stocks. Let's talk about another stock. I got one SCX copper. If you know anything about copper, it's used in all your phones. It's used freaking everywhere, and it's in all the data centers.

Speaker 2 (46:36): Will Steinbeck for that one.

Speaker 1 (46:38): Oh my god. He he told you to get it, and I bought it originally at 67, something like that. And then it went to 78 or 79, I think. And I didn't sell. And then boom.

Speaker 1 (47:02): It dropped 15 points. And it went to 55. And I was just like, oh, well, I could have made I mean, I was counting how much money I'd made up into 70, 61, 68, 69. I was like, it's gonna go to 70. I'm gonna sell it.

Speaker 1 (47:16): And originally, said to myself, I was gonna sell at 68. I didn't sell. And I went to 69, and I'm like, yeah, it's gonna go. Boom. I wake up, dropped 15.

Speaker 1 (47:24): The market fell out of the copper market for some reason. Trump threw a whatever. I you know, weird thing

Speaker 2 (47:30): to semiconductors. That's why it's booming.

Speaker 1 (47:33): So, But it went back up and it went back up to 68. And I sold it like I said I would, and I made a pot of money. And then it dropped down to the floor. It went back down to 58. I bought it again at 58, and then it went back up and it's now like 65.

Speaker 1 (47:54): And I'm going to sell it again 68. And I've seen certain stocks that behave this Red

Unknown Speaker (47:59): Robin, you did. Yeah, yeah.

Speaker 1 (48:00): I did it with Red Robin for four cycles. I did it with Home Depot for four cycles. And you can make a lot of money as long as you're doing this. Now the question is, is that when the music stops, you want to be in a chair. Don't want

Unknown Speaker (48:21): Great analogy. Like that.

Unknown Speaker (48:22): Because, because I mean, Pfizer

Unknown Speaker (48:24): Metaphor, I guess.

Speaker 1 (48:25): I did it with Pfizer. And I did it. I had bought Pfizer right at the beginning of pandemic. And it was, I don't know, it was like 20s or so. It was it was really light and then it doubled and a half.

Speaker 1 (48:35): And I was like, oh, it's gonna go to 100. That was not going to happen. I might have bought it in the 50s or something. I bought it and sold it and I made some money. And then I held on to it the last time.

Speaker 1 (48:51): And then COVID ended, and so did Pfizer. And so for two or three years, I mean, it's been a bloodbath loss. And then I sold it again this spring and said, you know, I'm just, I'm gonna take my I'm gonna take my hit. I know I sold it last fall because I sold it right before tax time. Looked at it and said, I'll take the big hit, and I'll take the loss.

Speaker 1 (49:13): And that's good. And I'm done with it. And that's that's that's kind of the thing to get away with it. And, and you know, all this brilliant, beautiful advice about what you should and should not bow. I love Lowe's.

Speaker 1 (49:24): I love, you know, I always go to like, remember when I told you about GameStop? Remember your story? Have you ever told your story about GameStop?

Unknown Speaker (49:31): Yeah, we did on, I think, two episodes ago when we did the finance episode. Go back and listen

Speaker 1 (49:35): Yeah. To that Because that was, I mean, it was stock. That was like picking a stock about something that you know, you understand it, and you believe in it. And but also having a rational thought that it's it's hard for a lot of people because they fall in love with it. Like, people fell in love with Peloton.

Speaker 1 (49:52): They bought a Peloton, and then they bought a bunch of Peloton stock. I mean, any any monkey, any monkey that was outside of the industry could've would've thought that as soon as people went back to work, which I thought it would change, I I kind of thought that it

Speaker 2 (50:11): would change for more people. What was the problem with the there's a distribution error on a canal where the boat turned sideways? Remember that? Yeah. And Peloton, I think was directly responsible for that or something like that.

Speaker 2 (50:22): It was crazy.

Speaker 1 (50:23): No. They wouldn't be stuck. That that's Palantir.

Speaker 2 (50:26): I'm talking about them. They were they were responsible, I think, because they were their shipping containers were the ones that were overweight or something like that.

Unknown Speaker (50:33): Oh, I didn't know that.

Speaker 2 (50:34): Because Corey was talking about that and he's like, yeah. Like, it's really, really bad. We were having shipping orders and errors because of that boat that turned sideways. What canal is that Panama Canal?

Unknown Speaker (50:46): He said.

Unknown Speaker (50:47): What was it?

Speaker 1 (50:47): But they, no, because they go through the canal.

Unknown Speaker (50:50): But the boat turns sideways. And they had a bunch of orders on that boat.

Speaker 1 (50:54): Oh, but they also had they manufactured in California and it's being distributed and and they went through through there to distribute all on the East Coast. Yeah. And by going through the canal and getting caught, not only that one, but all the other ones behind were all caught.

Speaker 2 (51:07): So Exactly.

Speaker 1 (51:08): They were they were they were they were clogged. You know? And you were like, ah. And then, you know, you you can't take you can't charge until, you know, somebody takes delivery.

Unknown Speaker (51:18): What are you gonna do?

Unknown Speaker (51:20): Yeah. So they so they missed their numbers and, you know, when you miss your numbers in Wall Street and you're a hot stock going up, you get pounded. I mean, you get

Unknown Speaker (51:27): really That was a long that was longer than anybody thought it was gonna be too if I remember.

Speaker 1 (51:31): Yeah. But they went from, like, you know, 9 to 1,000,000 in, eight months. And then they went from 1,000,000 to 9 in, like, two months. So Yeah. You you know, there's money to be made in both sides.

Speaker 1 (51:46): I've never been a short seller, and I've seen how I could make money in short selling, but I've never been you you gotta fill out a different form because

Unknown Speaker (51:52): as long as I like gambling and other stuff like that. Believe in gambling.

Unknown Speaker (51:55): You know? Yeah. I'm already gambling. And you buy stocks, you're gambling. You know?

Speaker 1 (51:59): You you figure about you figure out

Speaker 2 (52:01): Well, at least it's not the finality of it all is so much less. It's no serious.

Speaker 1 (52:06): Other people have better information than me, and they can trade faster than me, and they can trade off of my trades. Okay? Did you know that?

Unknown Speaker (52:15): Yeah.

Speaker 1 (52:15): That that there are there is a a, there are a number of hedge funds that have direct lines to the Wall Street, the New York Stock Exchange with large cables. So they see pricing. They see pricing at the same time you do. So I put in an order for 90. And they see that I want to buy a stock that's trading at 90.88, 89.9089 and 98¢, and I'm gonna buy it at 90.

Speaker 1 (52:51): They will then buy that stock, $88.80 98. They'll buy it from a person, execute it immediately, and then they will sell it to me at 2¢ higher. And they will do 100,000 trades a day that way. So they will make 2¢ or 4¢ on every trade or a nickel or a dime or a quarter or whatever. And those people are basically making me pay more.

Speaker 1 (53:21): Any market trade is like that. Any limit trade is like that. You know, when the price of that when the price is moving fast, if it's moving up or down and you put in a limit order, you can you can catch it. And a limit means you're willing to pay. I I put in a limit order for 10.

Unknown Speaker (53:37): It means I'm gonna pay 10 for the stock. That's what it is.

Unknown Speaker (53:39): Do, GTC trades, the sixty to thirty thirty to sixty day g t GTC trades.

Speaker 1 (53:44): I've done that for sells because I think something's gonna drop tremendously, and I don't want to lose everything. And I'll use it as I'll cover myself by saying, okay, I own 10,000 shares of Bob Johnson stock, and it's risen 40% in the last three months. I'll put in a sell at if it falls too, like, that kind of stuff. Mhmm. You know, you you put in your your your but you gotta be careful.

Speaker 1 (54:17): You gotta know it's Yeah. It's a little more complicated, a little more sophisticated. But we talk about, you know, the different things that you do in stocks, and and and I think that the most important thing is to get started and no matter where you are, because the the problem that a lot of people do, and I know there's a lot of people that like me that are in retirement, is they're looking at it now. They're like, I'm 65. I gotta make up for lost time.

Unknown Speaker (54:41): No. Don't. Do not do that. Do not do that. I'm gonna put it all on black and double my money.

Unknown Speaker (54:49): I I've I've done that, and I did. It worked. It worked once. The next time I put all my money on black, it it didn't. It took it all away.

Speaker 1 (54:58): So you you you

Speaker 2 (55:01): So find a good hat to wear. You know? Yeah. Like the one I'm wearing.

Speaker 1 (55:04): I'm gonna get a good hat. I'm gonna get a good hat for the next episode. I'm also gonna say that I think that that as far as stocks go, you need time. You gotta have time. You gotta have time to let it go.

Speaker 1 (55:16): You gotta let it run. And if you know a little bit about it, if it's a brand that you like, if it's an REI or a, you know, Pizza Hut or whatever the hell you like, own a little piece of what you think's four to five years.

Unknown Speaker (55:27): I mean, I think that that's what you're gonna make the most amount of money four to five years.

Speaker 1 (55:32): And just because you want it to grow faster doesn't mean it will. And just because

Unknown Speaker (55:40): Patience is a virtue.

Speaker 1 (55:42): Yeah. It's it's it's something you can't you can't fall in love with the company and hold the stock even though the times are getting bad. Get the fuck out. If you if you don't think they're just gonna have an opportunity in the future, don't lie to yourself. Be honest.

Speaker 1 (55:56): It's your financial health. Right?

Unknown Speaker (55:57): Destiny Inc. Was that

Speaker 1 (55:58): for me. It's the number of burgers that you could buy tomorrow. I could buy two burgers at McDonald's because Clorox went up today instead of just one. And that's what the that's what the world is all about, eating two burgers. I love that hat.

Unknown Speaker (56:11): That's true.

Unknown Speaker (56:11): You know where I got that?

Unknown Speaker (56:13): This was in, Peru.

Unknown Speaker (56:15): Yeah. On the Inca Trail. Peru. Peru. Peru.

Speaker 1 (56:17): Yeah. The guy that one of our guides was selling those hats. And he had the whole, like, he had a he had the brim hat and he had dangles hanging down and he had the what are those things called? The

Speaker 2 (56:29): What are what the dangles are for? You know? Like, these things that I

Unknown Speaker (56:32): don't know. Things? I'm guessing he could've told us, but

Unknown Speaker (56:34): because it's not like a hat that blows off your head, Ryan?

Speaker 1 (56:37): We did the, we had the shaman on the trip, and he he he was he actually smoked. We had the cocaine leaves. Right? He picks those. He lights them on fire, and he blows the smoke in your face.

Speaker 1 (56:50): And then it's something about the earth, the sky, the water, and the land or something like that. It was some thing. And we're at the top of one of the one of the there's like a three mountaintops that you walk to to get to the if you do the Inca Trail and you go into Machu Picchu.

Speaker 2 (57:08): I wanna do the Dolomites in Swiss the Swiss side, not the Italian side.

Speaker 1 (57:12): I I in my in my lifetime, I would love to go back to Kilimanjaro and do the nine day trip. That's something I'd love to do.

Unknown Speaker (57:18): Have you done the Dolomites?

Unknown Speaker (57:20): No. No. It's Might be one of I've seen some of the

Unknown Speaker (57:25): Don't go in August, apparently.

Speaker 1 (57:27): No. But I've seen some of the mountain trails that you travel on, and I would poop in my pants. I I would freeze. I was on Machu Picchu. We went to the top of Huenu Picchu, I was, you know, nine tenths of the way up overlooking Machu Picchu, which was a thousand feet down, and I'm six feet from the edge, and I am frozen.

Unknown Speaker (57:49): It's like Creed song. It's, I'm six feet from the edge and Yeah.

Speaker 1 (57:53): Scared to death. I I do not like heights. That's why I climb mountains.

Speaker 2 (57:58): Right? There's that one in China too that, like, you do the walk and it's like pegs that stick out at the sign of a wall.

Unknown Speaker (58:04): I no. That's nuts. I saw that.

Speaker 2 (58:05): I think it's like 2,000 feet down. Yeah. But you're you're hooked in though.

Speaker 1 (58:10): Well, we did So does it Mount Sematai, which is a which is a big one that a lot of people go to in China. Uh-huh. It's Chinese. Native Chinese do the Mount Sematai walk because it takes you back to your ancestral land. Stairs?

Speaker 1 (58:23): Is that the one the big No. No stairs. You you're walking up through the brush of the mountain. You make your own trail. It was

Speaker 2 (58:29): I'm thinking of this temple that has stairs. It was interesting.

Speaker 1 (58:31): That's where your your uncle said he was going to die like seven times.

Unknown Speaker (58:36): You know. Is that who that was the bridge, right? When he was on the bridge?

Speaker 1 (58:40): No. No. The bridge that was that scared us all to death and but we he was walking, you know, he drank, like, eight quarts of water and he stopped. I'm okay. No.

Unknown Speaker (58:50): You're gonna die. You're not we're not leaving here. Leave me here. Come back. No.

Unknown Speaker (58:53): We're not. We're not. You're you're gonna go back.

Unknown Speaker (58:55): Did he lose a lot of weight on that trip?

Speaker 1 (58:58): Probably until we got back to the hotel and we moved hotels because the hotel we stayed at was just it was just it was just a piece of plywood on on the floor that he slept on with straw pillows, and we're like, no. We're not we're gonna we're gonna upgrade. And, you know, we offended everybody, I guess, when we went across town and stayed in a really nice hotel, and he immediately went downstairs. What's the biggest steak you got? I'm like, didn't you say you were going yeah.

Unknown Speaker (59:25): It's lasted like an hour. Well, this is just after the trip. And I'm like, no. It's not. This is what you do every day.

Unknown Speaker (59:32): But We

Unknown Speaker (59:34): are creatures of habit, aren't we?

Speaker 1 (59:35): Yeah. We do what you know, when you're when you're trying to figure out what's gonna make you happy in life, if something makes you happy and it and it slowly shortens your life, is it better to have a shortened life that you're happier with? Or is it better to, you know, mindfully deprive yourself and live longer?

Unknown Speaker (59:53): That is true.

Speaker 1 (59:54): And that's the age old argument. It's always there. And the question is, is like, well, how much mindfulness of deprivation do I have? Like, can I I can't eat anything other than broccoli or you know, or I can't?

Speaker 2 (1:00:06): Well, there's very few people that I've looked at that are in their eighties that I would want to live that long. I'll tell you that much. I don't know. But I feel like.

Unknown Speaker (1:00:14): I don't know anybody.

Speaker 2 (1:00:15): Generation, you know? It's it gets better. It gets you get more longevity but you're maintaining your health longer and you're more active. Right?

Speaker 1 (1:00:24): I know people in their sixties, and now I know people in their seventies that I would be happy to be in their physical shape. Really? That's that's yes. But I know people in their eighties. Yeah.

Speaker 1 (1:00:34): About the eighties? Yeah. In their eighties, and I have not ever known anyone. Now my grandfather was 86, and he was still driving a car at 84. He got a new car every year, and he was he was chubby and fat, and he delivered the mail every day and all that kind of stuff.

Speaker 1 (1:00:49): And he was bald, and he smoked, like, a pipe and cigars every day and drank a the water glass full of rum, which was the funniest thing. That's a bottle. He drove, and you're like, really?

Speaker 2 (1:01:01): They're always narrowing the roads around here.

Speaker 1 (1:01:04): And and that was so bad. Pint of rum for breakfast. I I don't know how you do that.

Speaker 2 (1:01:09): That's On an empty stomach too. That's important.

Speaker 1 (1:01:11): An empty stomach straight down like a glass of water. I was just like, wow. I guess that's what the navy does for you.

Unknown Speaker (1:01:16): Runs in the family.

Unknown Speaker (1:01:17): Yeah. Yeah. We're all a bunch of drunks. You know? We love that.

Unknown Speaker (1:01:21): Well, on that note

Unknown Speaker (1:01:22): We're late.

Speaker 2 (1:01:22): Thank you guys for listening as always.

Unknown Speaker (1:01:25): We wanna hear stock tips.

Unknown Speaker (1:01:26): We wanna hear stock. Please. That'd be great, actually. Tell us

Speaker 1 (1:01:29): us give us one. Tell us our ideas are wrong. I'm gonna go back into FTX if it drops below 50 I'm below 60 and buy it again because I think it'll ride up again. And it's dropping five today. I'm gonna I'm gonna hold on to Clorox until probably a 100 or near a 100, then I'm gonna run away.

Speaker 1 (1:01:47): And so that's where I'm at right now. And I got a bunch of other little ones that are that are here and there. Always willing to hear. Always willing to listen.

Speaker 2 (1:01:57): Yeah. Comment those on our page. Alright. We'll talk to you later. Bye bye.

Unknown Speaker (1:02:01): Bye.

Unknown Speaker (1:02:01): Party on.