Latest / Financial Survival Network / Smart Investing, Taxes, Health, AI - Andrew Horowitz #6207

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Smart Investing, Taxes, Health, AI - Andrew Horowitz #6207 · Financial Survival Network

0:00
Speaker 1: You have a company company, let's call it a USA
0:02
Speaker 1: company called that's the name of the company. It's called USA,
0:05
Speaker 1: and USA is a company has a product that it sells,
0:08
Speaker 1: which is protection security infrastructure. And you pay them in
0:14
Speaker 1: a form of a percentage of your wages. That's how
0:16
Speaker 1: you do it. And what they've done is they've capitalized
0:19
Speaker 1: it basically through debt instruments. They don't have any equity.
0:22
Speaker 1: You don't have equity, you have debt. So you have
0:24
Speaker 1: an ownership of this kind of through the debt. And
0:27
Speaker 1: the death that they have issued over the years is
0:29
Speaker 1: compounded dramatically because they needed to for a lot of
0:33
Speaker 1: unforeseen expenses. Now the debt is blossoming and the company
0:37
Speaker 1: is taking in revenue through a part of your income.
0:41
Speaker 1: And if we eliminate that, what other mechanisms do we
0:45
Speaker 1: have to pay down the debt interest and to pay
0:48
Speaker 1: off the debt and to fund the company's continuing security infrastructure.
0:53
Speaker 2: You are listening to Carrie Letz's Financial Survival Network where
0:57
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1:01
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1:04
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1:13
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1:20
Speaker 3: And welcome you are listening to and watching the Financial
1:24
Speaker 3: Survival Network. I'm your host, Kerry lepp Well. Got somebody
1:27
Speaker 3: back on the show, hasn't been on in quite a while.
1:31
Speaker 3: Somebody who's investing acumen and knowledge. I put up there
1:35
Speaker 3: with some of the best. Whose name is Andrew Horowitz,
1:40
Speaker 3: A disciplined investor. And sometimes discipline is good and sometimes
1:46
Speaker 3: it's not. But when it comes to just think, the
1:50
Speaker 3: only way to make money over the long bawl is
1:53
Speaker 3: through a discipline, very strict approach with firm, viral and
2:00
Speaker 3: sell rules in plate. Andrew, it's great to have you
2:03
Speaker 3: back on the show and spend years. I was on
2:06
Speaker 3: your show recently and so coming. What the how things
2:11
Speaker 3: have been going? I mean the market. You know, we
2:14
Speaker 3: tend to overloit the fact that the stock market was
2:17
Speaker 3: the greatest invention creation effort for creating well, and you know,
2:23
Speaker 3: you get into your family, you get into your business,
2:26
Speaker 3: and you kind of just don't think about it, and
2:29
Speaker 3: then you look at your portfolio, assuming you haven't had
2:33
Speaker 3: one of those infrequent crashes and you say, wow, how
2:37
Speaker 3: did I get here?
2:39
Speaker 1: Yeah, it's amazing because I have, for example, I family
2:42
Speaker 1: members have friends that have four one K plans, right,
2:45
Speaker 1: and the kids have four one K plans. And I've
2:47
Speaker 1: always told them, look to me a favor, just just
2:50
Speaker 1: close your eyes, hold your nose, put money into your
2:54
Speaker 1: four one K plan. They're like, oh, well, you know,
2:56
Speaker 1: I'm just starting this new job. I don't have the money.
2:59
Speaker 1: And then invariably I forced him to do it. I'm like, look,
3:02
Speaker 1: just do a few dollars and let's see what happens.
3:04
Speaker 1: And somehow it's a bit of the sleeping beauty concept.
3:08
Speaker 3: Right.
3:08
Speaker 1: They wake up a number of years later and they're like,
3:10
Speaker 1: whoa wait, do you look how much I got in
3:13
Speaker 1: this four one K plan. I'm like, yeah, And if
3:15
Speaker 1: you didn't argue to begin with, if you didn't spend,
3:17
Speaker 1: say you know, oh, look at all the money I
3:19
Speaker 1: have to spend on this or that. What happens is
3:22
Speaker 1: it becomes almost a regular occurrence that you don't even
3:25
Speaker 1: feel and like, yeah, I don't even when I did
3:27
Speaker 1: it first, I was I was hurt for a minute,
3:31
Speaker 1: and then all of a sudden it came back to
3:33
Speaker 1: the idea that I don't even remember doing it, and
3:37
Speaker 1: just a message out there for people that are listing
3:39
Speaker 1: that if you haven't done it, and if you were
3:41
Speaker 1: one of those people like, hey, you know what, my
3:43
Speaker 1: employer doesn't match, it doesn't matter. Pre tax money that
3:49
Speaker 1: has the availability to compound at a tax deferred basis
3:53
Speaker 1: through a four to one K plan or O row
3:55
Speaker 1: off IRA or an IRA or any other kind of
3:58
Speaker 1: pension plan is one of the greatest wealth creation on
4:04
Speaker 1: top of the stock market. So you add the benefit
4:07
Speaker 1: of tax deferral. So if you haven't done so, it's
4:10
Speaker 1: an important to end of year here to start thinking
4:13
Speaker 1: about what you're going to do for next year. And
4:14
Speaker 1: if you're age sixty to sixty three, starting in twenty
4:18
Speaker 1: twenty five, there's a super catch up that's available where
4:21
Speaker 1: you can put an extra thirty seven hundred and fifty
4:23
Speaker 1: dollars into I don't know what this whole six carry
4:27
Speaker 1: this hole. Who picked sixty to sixty three, but it
4:30
Speaker 1: is what it is. If you're age sixty to sixty three,
4:33
Speaker 1: you get not only your base your catch up, but
4:36
Speaker 1: you're a super catchup that you can deposit money to
4:39
Speaker 1: for your four and one k to add even more
4:41
Speaker 1: money to your four O one k for your future.
4:43
Speaker 1: So I agree, greatest, greatest invention. But then if you
4:47
Speaker 1: add tax deferred compounding on top of it, even better.
4:51
Speaker 3: Yeah. There's always that age old thing to the rough IRA.
4:55
Speaker 3: So you think your regular IRA, you convert it to
4:58
Speaker 3: a row up, you have to pay is on it,
5:01
Speaker 3: but then you can build up, continue to build up
5:05
Speaker 3: well tax free and not pay any packes on the distribution. Right,
5:10
Speaker 3: And so is the tax deferrol that you get from
5:13
Speaker 3: a traditional IRA worth We're eventually paying tactes on it.
5:20
Speaker 3: Or you do partial conversion you know the age old
5:25
Speaker 3: the thing works.
5:26
Speaker 1: Yeah, are you better backdoor conversions? And you're better off
5:28
Speaker 1: with wroth? We have better off of this. It all
5:29
Speaker 1: depends on how old you are. The younger you are,
5:31
Speaker 1: the better off you are to have a WROTH. And
5:34
Speaker 1: then we have to ask the question which none of
5:36
Speaker 1: us answer could answer, what's the tax rate it's going
5:39
Speaker 1: to be the future.
5:40
Speaker 3: Higher or lower?
5:41
Speaker 1: The fact is I'm putting five thousand dollars a year away,
5:45
Speaker 1: ten thousand dollars a year, whatever the number is, into
5:47
Speaker 1: a regular IRA, and I'm getting a tax deduction for it,
5:51
Speaker 1: which is great. It gets tax deferral, which is fantastic.
5:55
Speaker 1: But now all of a sudden it's worth five hundred
5:56
Speaker 1: thousand dollars in the future, and I gotta pull money
5:58
Speaker 1: out of it. I'm pulling money out of a much
5:59
Speaker 1: high tax rate or lower tax rate, and I'm pulling
6:02
Speaker 1: out at a much higher valuation at that point. So
6:05
Speaker 1: a lot of questions to answer. H Very, there's no
6:10
Speaker 1: magic potion to this whole thing. The only thing I
6:12
Speaker 1: could tell you is do it some way, somehow get
6:18
Speaker 1: money working.
6:20
Speaker 3: Oh so, you know, we heard a lot of you
6:22
Speaker 3: know this incoming Trump administration reminds me of JFK when
6:30
Speaker 3: he came into office, different being brought in the egghead,
6:35
Speaker 3: they called them, all these guys from Harvard, Yale, Ivy
6:38
Speaker 3: League come up with all these brilliant ideas that didn't
6:43
Speaker 3: but it was a period of great optimism. Now we
6:48
Speaker 3: got Trump here, bringing in billionaires and really bringing in
6:54
Speaker 3: people who actually got real life experience. And one thing
6:59
Speaker 3: they talked about the I don't know how theory it
7:01
Speaker 3: that is, but I'd love to see it. My felt
7:04
Speaker 3: is elimination of the federal income fact. How does that
7:09
Speaker 3: think It's possible. Can it not done? Well?
7:13
Speaker 1: If we do what mech it is, Well, let me
7:15
Speaker 1: ask you this, Kerry. You have a company company, let's
7:17
Speaker 1: call it a USA company called that's the name of
7:19
Speaker 1: the company. It's called USA, and USA is a company
7:22
Speaker 1: has a product that it sells, which is protection security infrastructure.
7:28
Speaker 1: And you pay them in a form of a percentage
7:31
Speaker 1: of your wages. That's how you do it. And what
7:33
Speaker 1: they've done is they've capitalized it basically through debt instruments.
7:36
Speaker 1: They don't have any equity. You don't have equity, you
7:39
Speaker 1: have debt. So you have an ownership of this kind
7:41
Speaker 1: of through the debt. And the death that they have
7:43
Speaker 1: issued over the years is compounded dramatically because they needed
7:47
Speaker 1: to for a lot of unforeseen expenses. Now the debt
7:51
Speaker 1: is blossoming and the company is taking in revenue through
7:55
Speaker 1: a part of your income. And if we eliminate that,
7:59
Speaker 1: what other mechanisms do we have to pay down the
8:02
Speaker 1: debt interest and to pay off the debt and to
8:05
Speaker 1: fund the company's continuing security infrastructure. I don't see how
8:09
Speaker 1: it's possible. You see what I'm.
8:11
Speaker 3: Doing there, right? Yeah, Well, so you're talking about income
8:15
Speaker 3: from tariffs, and the perhaps a national sales pack or
8:20
Speaker 3: maybe not a value added pack, but that I'm not
8:23
Speaker 3: sure what the difference really is.
8:24
Speaker 1: Well, it's a consumption tax. It's a consumption tax. That's
8:27
Speaker 1: that's you know, that's are I mean, a VAT is
8:29
Speaker 1: a consumption tax. A sales tax is a consumption tax.
8:35
Speaker 1: The tariffs or a consumption tax. So now what you
8:40
Speaker 1: do with that is you cause the potential for inflation
8:46
Speaker 1: to a degree because things will cost more if you
8:48
Speaker 1: don't include the tariffs and the tax. Maybe not. You
8:52
Speaker 1: cause a potential consumption slow down potentially, but then again
8:57
Speaker 1: it's offset by the fact that you're not paying federal taxes. Right,
9:00
Speaker 1: I mean, look at look as that way. I just
9:02
Speaker 1: don't see is there anyone who's ever done that successfully?
9:07
Speaker 1: State of Florida. Can we use that as a Can
9:11
Speaker 1: we use that as a as a model maybe where
9:14
Speaker 1: it's all sales TACs in the state.
9:15
Speaker 3: Tax Nine states don't have income factors, right, and those
9:21
Speaker 3: states that boom during the past decade, while the heavily
9:27
Speaker 3: packed loose states lack of a better term, but they
9:31
Speaker 3: generally are blue. But not all uh have not grown
9:35
Speaker 3: at the rate that the tax rates uh state path.
9:39
Speaker 3: So is it just a function that you know the
9:45
Speaker 3: Florida Kennethy, New Hampshire, Washington State, the North Dakota I
9:54
Speaker 3: think maybe South South Dakota. I know them all off
9:57
Speaker 3: the top of my head, but those dy Is it
10:00
Speaker 3: just the function of people avoiding pactes and that everybody
10:05
Speaker 3: saying we'd be in the same boat, or is there
10:09
Speaker 3: more to it?
10:11
Speaker 1: I don't know. I think this is a really big
10:13
Speaker 1: question because there's been discussion about flat taxes that never
10:16
Speaker 1: seem to work, you know. But the problem is the
10:19
Speaker 1: complexity of our current tax system is a problem. There's
10:22
Speaker 1: no question about that. I think we'd all agree to this.
10:24
Speaker 1: I don't care who you are that the complexity of
10:27
Speaker 1: the taxes and the ability for people to work loopholes
10:32
Speaker 1: is a gigantic problem. The corporate tax system is also
10:36
Speaker 1: a problem. So simplification is I think the first step
10:40
Speaker 1: right before we can get into the idea of just elimination.
10:43
Speaker 1: I think simplification is a much more realistic way to go,
10:47
Speaker 1: and then from there what we could do is try
10:49
Speaker 1: to maybe merge into the idea of what ifs. But
10:54
Speaker 1: I don't think we could do it. I don't think
10:56
Speaker 1: it can be done with this massive debt overhanging we have.
11:00
Speaker 1: I think it's the biggest problem we have right now
11:01
Speaker 1: in our in our government and our economy that anybody
11:05
Speaker 1: that knows anything, if you are a household that has
11:08
Speaker 1: no debt compared to a household that has major debt, why,
11:11
Speaker 1: why is why has the Biden administration been so hell
11:15
Speaker 1: bent besides for votes, aside from that, put that aside
11:18
Speaker 1: for a second, why have they been so hell bent
11:21
Speaker 1: on reducing or eliminating disposing of student debt because they
11:27
Speaker 1: know the fact that from an economic standpoint, again, besides
11:30
Speaker 1: for votes, from an economic standpoint, when you graduate medical school,
11:34
Speaker 1: law school, graduate degree, even an undergrad and you have
11:39
Speaker 1: a massive amount of debt that's outstanding, it is going
11:42
Speaker 1: to curtail your ability to really buy a house potentially
11:48
Speaker 1: by goods grow. This overhang that you're going to have
11:52
Speaker 1: for a number of years is going to be it's
11:53
Speaker 1: going to be so constricting, it's going to be strangulating.
11:57
Speaker 1: And in the debt that we have now, if you
11:59
Speaker 1: want to expand that to the death that we have
12:01
Speaker 1: now as a country is so preposterous, It is so ridiculous.
12:06
Speaker 1: The only way we could do is inflate our ways
12:08
Speaker 1: out of it, or blow our currency out, which is
12:11
Speaker 1: basically what they're doing, right, the idea of devaluing and
12:15
Speaker 1: really looking at a currency to break it down, which
12:20
Speaker 1: they've tried to do. It's not working so well. Or
12:23
Speaker 1: inflate our ways out of the bond situation. We tried
12:27
Speaker 1: that for a number of years and we had COVID
12:29
Speaker 1: and then we had massive spending that we had continued
12:31
Speaker 1: massive spending. I don't think under Trump administration. I know
12:35
Speaker 1: there's the DOGE, I get it, the Department of Government.
12:41
Speaker 1: What's the government efficiency?
12:45
Speaker 3: Right?
12:46
Speaker 1: I don't know if that's going to really two trillion
12:48
Speaker 1: seems a little bit far fetched. But maybe they'll find
12:52
Speaker 1: something somewhere that they could say, have a few hundred billion,
12:54
Speaker 1: which would be great. I just don't know if that
12:57
Speaker 1: is going to be enough with we go, but that's
13:02
Speaker 1: what we need to do.
13:04
Speaker 3: But if you're not touching Social Security or Medicare, then
13:08
Speaker 3: your hands they're kind of tied from the get go.
13:10
Speaker 3: But if you would just assume that for all the
13:13
Speaker 3: other departments, somewhere between thirty to sixty percent of the
13:16
Speaker 3: money is wasted, and even in social Security and Medicare.
13:21
Speaker 3: There are hundreds of billions of dollars a year of payment,
13:25
Speaker 3: wrongful payments that shouldn't be made.
13:27
Speaker 1: That's a problem that I agree with that. I agree
13:29
Speaker 1: with that whole industry, the prescription industry, the Medicare. Social
13:33
Speaker 1: Security can't touch Medicare. On the other hand, the efficiency, well,
13:37
Speaker 1: there is fraud in socialcurity, but let's put that aside
13:40
Speaker 1: for a second, because that's a whole different discussion on
13:42
Speaker 1: how to deal with the fraud, right, But I agree
13:46
Speaker 1: with you Medicare and fraud in Medicare by the way,
13:49
Speaker 1: and just bloat, just stupidity. So that's going to be
13:54
Speaker 1: a big issue, I think, and not to mention the
13:59
Speaker 1: healthcare system in itself, and a lot of that's coming
14:02
Speaker 1: to light right now. More so, I think the I
14:05
Speaker 1: think the shroud has come off of the oh, you know,
14:09
Speaker 1: it's healthcare and it's just what it is. Right, I'm
14:11
Speaker 1: getting denied or I'm delayed, or you know, I'm going
14:16
Speaker 1: to have to get some multi level of authentication or
14:21
Speaker 1: or something involved with this. I think this whole unfortunate
14:26
Speaker 1: murder of the un h executive, you know, CEO Brian
14:30
Speaker 1: Thompson is awakening a reality that has been suppressed for
14:36
Speaker 1: a long time, which is that our healthcare system, the
14:41
Speaker 1: companies involved it, is a for profit. I mean, when
14:45
Speaker 1: Obamacare came in, did you ever in a million years
14:47
Speaker 1: think that the companies like Etna signa unh, we're going
14:51
Speaker 1: to be extraordinarily profitable or was it like doing you
14:57
Speaker 1: do it?
14:58
Speaker 3: They wrote it, they wrote the program.
15:00
Speaker 1: Well that's true also, but the idea was really to
15:03
Speaker 1: give the people a better shake, right, It wasn't that
15:06
Speaker 1: that that was the idea.
15:08
Speaker 3: Yeah, well don't work out. I mean, I didn't want
15:11
Speaker 3: to get like into a political thing, and we've got
15:13
Speaker 3: more but AI ties into it. But we've never had
15:18
Speaker 3: a national health debate in the United States since since
15:24
Speaker 3: they basically banned cigarette advertising back in sixty all right,
15:30
Speaker 3: and created this educational feedbacks smoking bad, it will kill you.
15:37
Speaker 3: Back when we were kids growing up andrew half people
15:41
Speaker 3: out there smoked. Now I was one.
15:44
Speaker 1: I was one of them. Marlboro, reds Man, Marlboro same here.
15:48
Speaker 3: I love that, you know, and in wind.
15:51
Speaker 1: Chapter let's stick that's something right there.
15:56
Speaker 3: Dating myself. Wow. So we have this massive educatational thing
16:01
Speaker 3: and there's definitely left people dying from lung cancer and
16:05
Speaker 3: smoking related diseases than were in the past. Part disease
16:11
Speaker 3: still number one killer. But bringing an RFP junior. Whatever
16:15
Speaker 3: you think about the guy, and I'm not a personal
16:17
Speaker 3: fan ofies, but make America healthy again. That will go
16:23
Speaker 3: a long way towards the fixing the healthcare And it's
16:27
Speaker 3: kind of a long term educational investment. But we're seeing
16:31
Speaker 3: these companies who you know, usually in the most languages,
16:37
Speaker 3: for love, that's like tons and tons of words. But
16:42
Speaker 3: in the English language, we have more words for sugar
16:47
Speaker 3: than we do for love. You know, when you look
16:50
Speaker 3: on the side of a package, they have twenty five
16:53
Speaker 3: different ways of saying we're putting sugar in here, and
16:56
Speaker 3: it's bad for you. So that's educational thing that will
17:00
Speaker 3: solve the problem in the long run. Because eighty percent
17:04
Speaker 3: of most diseases, chronic diseases, which is what soaks up
17:08
Speaker 3: the bulk of netticare dollars, come from lifestyle, which means
17:14
Speaker 3: the people don't exercise and they eat garbage.
17:19
Speaker 1: Right, hold on, hold on a second, I just got
17:21
Speaker 1: back from Europe. You know you're going down this path.
17:23
Speaker 1: Let's talk about it.
17:23
Speaker 3: Right.
17:24
Speaker 1: So I just got back from Europe. You look at
17:25
Speaker 1: some of the things that are going on with regard
17:27
Speaker 1: to the US what we have in our food, I mean,
17:31
Speaker 1: the processing, the prob let's just leave it there. Let's
17:33
Speaker 1: just nutshell, the whole thing and processing of food compared
17:37
Speaker 1: to other places. Now, life expectancy has increased worldwide over
17:42
Speaker 1: the years, right. I mean when I was a kid,
17:43
Speaker 1: it was like, you're dead at seventy. Now seventy is
17:46
Speaker 1: like the new forty.
17:47
Speaker 3: Right.
17:48
Speaker 1: So the fact is that one of the things is,
17:52
Speaker 1: you know, a healthier lifestyle and drugs and all that.
17:55
Speaker 1: But we still have the problem here in the United
17:58
Speaker 1: States a process food and people don't care McDonald people
18:02
Speaker 1: are going out to eat these fast foods. They don't
18:04
Speaker 1: that we're lazy, we don't want to make food. We
18:06
Speaker 1: don't want to be what they do in Italy. That
18:08
Speaker 1: somebody's preparing your food. You know, somebody in the family
18:11
Speaker 1: is actually preparing a meal. What do we do We
18:14
Speaker 1: get these tavola or we get these other kinds of
18:16
Speaker 1: things that says, oh God forbid, I have to cook,
18:19
Speaker 1: but I want to make it look like them cooking.
18:21
Speaker 1: So send me a package recond. Yeah, they put in
18:23
Speaker 1: the microwave, and that's a big problem. It's gonna take
18:27
Speaker 1: years to unwind into reprogram our. I think our collective
18:35
Speaker 1: understanding of what's good and what's bad. You know, it's
18:37
Speaker 1: pizza a really good meal for us. I mean, it's
18:39
Speaker 1: probably better than some of the stuff you see in
18:43
Speaker 1: the store that's been processed, right.
18:45
Speaker 3: Better than Big Mac. Right, but maybe it depends. Like
18:49
Speaker 3: the new pizza pop places open up down the street
18:52
Speaker 3: from the here in Florida, and all of their stuff
18:56
Speaker 3: homemade the other to homemade, non GMO. The pasta is
19:02
Speaker 3: made fresh daily, the sauce is made from scratch, but hey,
19:06
Speaker 3: tomato sauce has sugar in it, but nonetheless not a
19:10
Speaker 3: ton of it. And yeah, it's healthier than.
19:13
Speaker 1: That's that's natural. I natal from the tomatoes trend.
19:18
Speaker 3: The trend is the healthy because what we're seeing. We
19:23
Speaker 3: follow trends because that's how we make money. AI is
19:26
Speaker 3: the trend where I think the profits will be enormous.
19:29
Speaker 3: We'll talk about that. Healthy dining choice is educational programs
19:36
Speaker 3: so that you know when you're eating food whether it
19:39
Speaker 3: has potential to arm you over the long howl. Because
19:42
Speaker 3: that's the thing when you're eating big Macs for twenty years,
19:46
Speaker 3: you know, it's one thing when you're smoking a cigarette
19:49
Speaker 3: that every cigarette takes six minutes off your life. That
19:52
Speaker 3: was what they sold us back then, which may or
19:54
Speaker 3: may not have been true. But you don't think of
19:57
Speaker 3: each big Mac that I consume with fry and the
20:00
Speaker 3: super size the coke, it's taking minutes off my life
20:07
Speaker 3: every time I eat it, right, right?
20:09
Speaker 1: So from a stock so let me just weave this
20:11
Speaker 1: into the area if you because it is an investment show, right, So,
20:15
Speaker 1: so is this something that we should be shorting McDonald's.
20:18
Speaker 3: I don't know.
20:19
Speaker 1: I wouldn't bet against that, right now, Chipotle? Do we
20:21
Speaker 1: short that? I mean, it's had problems. And then you
20:24
Speaker 1: add in the lily or the the A A Y
20:28
Speaker 1: C and hib or drugs out there that are caused
20:30
Speaker 1: you know that are much more popular.
20:35
Speaker 3: Hey, well, you know and bit controversy over those weight
20:40
Speaker 3: loss drugs. I've taken them, picked myself and looked fourteen
20:45
Speaker 3: pounds and didn't have to keep taking it forever. To
20:48
Speaker 3: keep that weight off again, I exercised like a fiend,
20:52
Speaker 3: so I had zero muckle lots. In fact, my weight
20:56
Speaker 3: resistant actually increased while it was eight though. Yeah, if
21:01
Speaker 3: you're a prapped potato and you're going to passively lose
21:04
Speaker 3: weight that back on the pack can walk ev right,
21:07
Speaker 3: then yeah, you're gonna lose muffle and you're gonna lose fat.
21:11
Speaker 3: But the very thing, the very act of lowering your
21:16
Speaker 3: obesity or overweight state, it's healthier, all right. Now. You
21:22
Speaker 3: don't want to be taking these drugs the rest of
21:24
Speaker 3: your life, but anything that will do that to help
21:27
Speaker 3: you in your goal. Are trolling your weight, as long
21:32
Speaker 3: as it's not abused and it doesn't become a lifelong dependency,
21:36
Speaker 3: is a good thing in my opinion.
21:37
Speaker 1: I have a little bit of disagreement, by the way.
21:39
Speaker 1: I don't know necessarily that if in fact there are
21:42
Speaker 1: no significant side effects, If if if there are no
21:45
Speaker 1: significant side effects, and in fact, if it just does
21:48
Speaker 1: regulate the body's ability to metabolize food better, I'm not
21:51
Speaker 1: exactly sure if in fact it's not something that can't
21:55
Speaker 1: be taken for a long period of time. One of
21:57
Speaker 1: the one of the problems we have here. We know
21:59
Speaker 1: that diet high glucose is a real big problem, and bigger,
22:06
Speaker 1: bigger than just simply saying well, I have diabetes. No,
22:09
Speaker 1: I'm talking about the impact on other organs of the
22:12
Speaker 1: body and what it does. And they'll be CD in
22:15
Speaker 1: itself or at least overweight.
22:17
Speaker 3: You know that.
22:17
Speaker 1: Everybody's like, ah, I'm not obese. Okay, you're overweight. You're
22:20
Speaker 1: not skinny as a rail. You got too much to
22:21
Speaker 1: carry it on your frame. That also is around the heart,
22:24
Speaker 1: the fat, right, all that that that that is a
22:26
Speaker 1: problem and at least to other other issues. And in fact,
22:29
Speaker 1: if if this is the miracle drug, if if IF,
22:34
Speaker 1: whether it's the semaglutides or whether it is the trisipotines
22:39
Speaker 1: or whatever.
22:40
Speaker 3: You know, companies do what called criple g, which is
22:44
Speaker 3: to be better than evmpic or manjara. That's zech I fiery, Yeah,
22:53
Speaker 3: criple g. It's in the evolution from theide and it's
22:59
Speaker 3: from Lily.
23:00
Speaker 1: Is that from Lily?
23:01
Speaker 3: I think? Yeah, we're interesting.
23:05
Speaker 1: They just increased their share, buyback and dividend by the way,
23:08
Speaker 1: just recently.
23:10
Speaker 3: Yeah, and you know, like, look, i've fast, did I've
23:15
Speaker 3: lost weight naturally? All right? I lost weight when I
23:18
Speaker 3: had COVID and uh, you know, and I kept the
23:22
Speaker 3: weight off he is keeping it off. You don't want
23:25
Speaker 3: to go yo, that's really bad for you. But anything
23:29
Speaker 3: that aids in that thing that doesn't do significant long
23:33
Speaker 3: term damage.
23:35
Speaker 1: Yeah, that's what I'm talking about. So that's why the
23:38
Speaker 1: stock is. That's that's why lilies died so well.
23:40
Speaker 3: Yeah, easier to keep the weight off than it did
23:44
Speaker 3: to loose and that he that's what they don't talk about.
23:48
Speaker 3: But yeah, we were eating healthy food and we weren't programmed.
23:52
Speaker 3: You know, the original biohacking, in my opinion, started with
23:56
Speaker 3: the barbecue hated hip because they figured out that they
24:01
Speaker 3: could put in sugar, salt, and vinegar and it would
24:06
Speaker 3: basically turn off your society s which remember you can't
24:10
Speaker 3: just eat one. And that's the thing, all these flavored
24:14
Speaker 3: the potato chips. And then we have the advent of
24:17
Speaker 3: the food kitchen, you know, the corporate food kitchen that
24:22
Speaker 3: you know, formulate the things so you just keep eating
24:24
Speaker 3: and eating. And you know, they got rid of pain
24:28
Speaker 3: sugar which which would trigger satiety switch in your brain,
24:33
Speaker 3: and they gave us hiproof post corn syrup. So this
24:36
Speaker 3: is a friend. Let's get to AI. That's you know,
24:41
Speaker 3: we know that AI is rapidly evolving. You and I
24:44
Speaker 3: both use it in our work. I've just used it
24:47
Speaker 3: to help me write a book of my interviews with
24:49
Speaker 3: a famous economist named Martin Armstrong. Fourteen years work of interviews,
24:56
Speaker 3: I managed to write a book in several weeks. And
25:00
Speaker 3: I've got a f chat GPP. What edd ten industries
25:05
Speaker 3: where AI will have the most section, And I'll just
25:08
Speaker 3: let me just list them and then we can go
25:09
Speaker 3: over with pet health care, transportations, not kidding, finance, retail
25:18
Speaker 3: and e commerce, manufacturing, education, we'll see about that one, legal, definitely,
25:26
Speaker 3: customer service, media and entertainment, and agriculture. So of the
25:33
Speaker 3: top ten, which do you think of the which three
25:36
Speaker 3: would you say the most significant?
25:38
Speaker 1: So healthcare I think is really interesting that one, particularly
25:42
Speaker 1: for example, brittiology. Right, so let's just break it down
25:47
Speaker 1: to its simplest terms. Right, take an X ray, somebody
25:49
Speaker 1: looks at it, Okay, what's the deal you brooke your
25:51
Speaker 1: late whatever, right or something of that age.
25:54
Speaker 3: Or an MRI.
25:55
Speaker 1: You're taking an MRI, it's reviewed and oh there's a
26:00
Speaker 1: spot or there's something going on, what is it?
26:02
Speaker 3: Right?
26:02
Speaker 1: Well, that's great. What about the things that are missed?
26:06
Speaker 3: Right?
26:06
Speaker 1: What about the it's a human eye that's looking at something.
26:09
Speaker 1: There's an X ray of the femur, of the tibia
26:12
Speaker 1: of I don't know what your ribs, whatever it is,
26:15
Speaker 1: And all of a sudden, you know, there's something to
26:18
Speaker 1: the bottom right of the screen. We're not quite sure
26:22
Speaker 1: what that is, and it's overlooked, whereas AI or better
26:26
Speaker 1: computing has the opportunity to look at that and say, well,
26:30
Speaker 1: you know what that looks like this that I have
26:34
Speaker 1: in my memory bank. So it's not just relying on
26:36
Speaker 1: a great radiologist, right, So a great radiologist may have
26:40
Speaker 1: found that, well, your average radiologists may not have. So
26:45
Speaker 1: the thing is that you are now instead of going
26:48
Speaker 1: at a random radiologist that may be the greatest or
26:53
Speaker 1: the most, the worst, or an average radiologist, you have
26:57
Speaker 1: the memory bank and the ability that is constantly changing
27:01
Speaker 1: and updating of an AI radiologist. Let's call it, right,
27:05
Speaker 1: doctor AI radiologists to now be looking at your X
27:07
Speaker 1: rays or MRI scrans, your cat scans, whatever whatever that
27:10
Speaker 1: particular situation is, and having all that other fingertips to
27:16
Speaker 1: give you a better diagnosis, then give it to the
27:19
Speaker 1: doctor and let them then further bring that to what
27:24
Speaker 1: has to be done. So I think that's this one
27:26
Speaker 1: little aspect of healthcare. How about drug interactions. So you
27:31
Speaker 1: have a situation where the pharmacy is dispensing a particular drug,
27:38
Speaker 1: and then there may be something in the system abou
27:40
Speaker 1: drug interactions, but maybe there's more information that can be
27:43
Speaker 1: fed into there about your health history that would say no, no,
27:47
Speaker 1: this drug is not going to work with that drug
27:49
Speaker 1: because of this to be better stuited with that drug,
27:51
Speaker 1: right or.
27:52
Speaker 3: Whatever it is.
27:53
Speaker 1: So there's a whole host of things that you can
27:55
Speaker 1: look at from an AI standpoint in the healthcare area.
28:00
Speaker 1: That even includes better robotic surgeries, that includes potentially better
28:07
Speaker 1: nutrition guides. I mean, the list goes on, because what
28:10
Speaker 1: you're doing is you're centralizing the knowledge, and then you're
28:14
Speaker 1: enabling the ability of that centralized knowledge. Let's call it,
28:19
Speaker 1: you know, doctor health. Let's just keep it at that
28:22
Speaker 1: to then train and look at all the different things
28:26
Speaker 1: that are going on and utilizing the inputs to further expand.
28:30
Speaker 1: So now instead of having pick your number of doctors
28:33
Speaker 1: out there in a particular space in a particular specialty
28:36
Speaker 1: that you may be just doing it and going to
28:38
Speaker 1: that doctor due to proximity, which is yeah, ninety nine
28:43
Speaker 1: nine percent of why you're going to that doctor's proximity.
28:46
Speaker 3: Right, they're just super market right now.
28:50
Speaker 1: Some doctors are different. You know, there's maybe some specialists
28:52
Speaker 1: that you want to visit in Tampa or there, or
28:55
Speaker 1: New York or California, wherever it may be. But generally speaking,
28:58
Speaker 1: you know the dentist I go to, I just not
29:01
Speaker 1: schlep in thirty five minutes to go to this guy
29:03
Speaker 1: when these people are five minutes away and they did
29:05
Speaker 1: a great job, and if something goes wrong, I'll schlep.
29:09
Speaker 1: But that's the number one, well one of the top,
29:12
Speaker 1: not number one, not in the top. I think customer
29:16
Speaker 1: service where there is none in some places. It used
29:21
Speaker 1: to be that you had a phone number that you
29:22
Speaker 1: would call all the time, make it very easy. Then
29:24
Speaker 1: there was the advent of an email, right, you'd find
29:27
Speaker 1: it somewhere or it would be a button. Now websites
29:30
Speaker 1: don't even have anywhere for you to call. You can't
29:33
Speaker 1: call anybody. Can you call anybody for customer service?
29:36
Speaker 3: You have to dig.
29:37
Speaker 1: You have to dig pretty hard, right, it's at the
29:40
Speaker 1: bottom three clicks in with first chat to us. Then
29:44
Speaker 1: do you really want to make a phone call? Do
29:45
Speaker 1: you really want to speak to somebody? I have the
29:47
Speaker 1: entwest now if we can get used to and get
29:49
Speaker 1: a good reacting chat pot that actually has answers, not
29:54
Speaker 1: just at the end of it, I'm sorry, you know,
29:56
Speaker 1: not just a stoling mechanism that most of these help
30:00
Speaker 1: support systems are. And and I think that could be
30:07
Speaker 1: tremendously helpful for individuals that need it and companies that
30:13
Speaker 1: don't need to spend the money on. Unfortunately places that
30:18
Speaker 1: we've we've banished them to, like India and areas outside
30:23
Speaker 1: of the US where you have the supports centers. Third
30:29
Speaker 1: finance is interesting, but for other reasons. I think there's
30:32
Speaker 1: an interesting aspect of finance, but I think it's compartmentalized.
30:35
Speaker 1: I think people still are going to need if we
30:37
Speaker 1: go all AI for finance. I just I don't I
30:39
Speaker 1: don't see it. It just then then it just it
30:43
Speaker 1: neutralizes everything. And I just don't see the ability for
30:45
Speaker 1: anybody to have better performance than anybody else. And what's
30:48
Speaker 1: the point if that's not the case. I don't see it.
30:50
Speaker 1: It's a neutral point. There are some areas that will
30:53
Speaker 1: be very helpful from a research standpoint. Clearly, being able
30:56
Speaker 1: to review and research a stock I mean obviously a
30:59
Speaker 1: lot faster, being able to look at historical trends and
31:03
Speaker 1: analyze those a little bit better.
31:04
Speaker 3: No question.
31:06
Speaker 1: Legal contract writing, clearly, I mean it's a lot of
31:12
Speaker 1: this can be done today. But if AI really comes
31:15
Speaker 1: out in a better way to make it a much
31:19
Speaker 1: more usable and use a friendly way, I think that's
31:21
Speaker 1: that's great.
31:21
Speaker 3: What are some of the other ones you mentioned, you know,
31:25
Speaker 3: just legal, because I'm a recovering attorney, there's no institution
31:32
Speaker 3: that it's less efficient than our court. They're the least
31:37
Speaker 3: efficient means of resolving dispute. The way they're managed. The
31:42
Speaker 3: judges or you know, the judge average starts works half
31:46
Speaker 3: a day. You know in some places be surprised and
31:50
Speaker 3: the case is keep piling up and piling up.
31:53
Speaker 1: Well, what about the law officers, Kerry, What about the
31:55
Speaker 1: fact that what I deal with a lawyer, I'm dealing
31:57
Speaker 1: with three layers and three bills at the same time. Yeah,
32:02
Speaker 1: I mean that's absurd. Right, you send something in, the
32:04
Speaker 1: administrator copies it, and you've got to be five dollars
32:07
Speaker 1: for that. They send it back to you. Thing, thank
32:09
Speaker 1: you that's a five minute charge. Then they got to
32:11
Speaker 1: go through the next person, the next person, and everybody's
32:13
Speaker 1: doing one piece is three times the charge it should be.
32:18
Speaker 3: Well, I always say anyone who says that crime doesn't pay,
32:22
Speaker 3: obviously path the bar exam so law and the inefficiency
32:31
Speaker 3: like the purpose of the judicial peaceably settle dispute among
32:38
Speaker 3: the residents and the inhabitants of the country. And when
32:43
Speaker 3: it starts failing in that role, the you know, bad
32:47
Speaker 3: things happened to society. So anything that can help make
32:52
Speaker 3: the judicial that's the more efficient. And then you also
32:56
Speaker 3: have that situation where big big X Y Z operation
33:00
Speaker 3: and little John Doe. You know, John Doe has been
33:05
Speaker 3: legitimately agreed, but he can't order to go up against them.
33:09
Speaker 3: But now maybe with the upcoming AI, he'll be able
33:13
Speaker 3: to do most of it on his own, and then
33:16
Speaker 3: the cord will be is an AI to figure out
33:20
Speaker 3: what's going on here, right right, right?
33:24
Speaker 1: I agree, I agree. Maybe maybe it's it's an interesting concept.
33:28
Speaker 1: I just think that that there's a lot of other
33:33
Speaker 1: industry areas that will create more efficiency. Some of them
33:38
Speaker 1: are like, yeah, I would love that to happen. That
33:40
Speaker 1: would be great. You know, I mean that would be wonderful.
33:44
Speaker 1: The others that well, man, why hasn't that happened already?
33:46
Speaker 1: In the efficiency will be cost savings and that can
33:49
Speaker 1: be passed along or made companies more profitable. That that's
33:53
Speaker 1: the thinking right now, right we're in the stage of
33:55
Speaker 1: AI that anybody's excited about the fact that the opportunity
33:58
Speaker 1: is there for creating cost efficient see across you know,
34:01
Speaker 1: many places with the idea once again that people are
34:04
Speaker 1: not going to be displaced, which I do not believe.
34:07
Speaker 1: I think that we continually displace people and it's like, yeah,
34:11
Speaker 1: able to get a job somewhere else, Okay, where go
34:14
Speaker 1: on technology? Doing what coding? Well wait, didn't we just
34:18
Speaker 1: talk about the AIS and taking over the coding.
34:20
Speaker 3: Yeah, they could go right.
34:22
Speaker 1: I gived example of something DH Unplugged. Each and every
34:25
Speaker 1: week we have a show John cy Devoric myself, you
34:28
Speaker 1: listen to that, I know, and we have cover art
34:30
Speaker 1: for each episode. So in the past we've had various
34:33
Speaker 1: places do covered art or we would we would have
34:36
Speaker 1: listeners with sending cover art or would use you know,
34:40
Speaker 1: not custom but you know, off just just a some
34:44
Speaker 1: something that would represent and we put some words on it.
34:47
Speaker 1: Whatever Now chat GPT, I need a landscape podcast cover
34:52
Speaker 1: art with two guys talking into a microphone. It's Christmas time. Up,
34:55
Speaker 1: it's Christmas time. The money flying everywhere. The name of
34:59
Speaker 1: the podcast is DHM. Make one of the players, one
35:04
Speaker 1: of the one of the podcast hosts tolls in the
35:07
Speaker 1: other blah blah blah blah, and then you get three
35:10
Speaker 1: different versions cover art done.
35:13
Speaker 3: Amazing It lest than for a five minutes.
35:16
Speaker 1: In less than five minutes.
35:18
Speaker 3: I used to pay somebody between twelve to fifteen hundred
35:24
Speaker 3: dollars a month to do my show notes if I
35:27
Speaker 3: do one show a day on average, sometimes a little more.
35:31
Speaker 3: And then I got the note taker for Zoom, and
35:35
Speaker 3: then I fed the note ten to chat GPT. It
35:39
Speaker 3: gets done instantaneously. It's ninety five percent of the way there.
35:42
Speaker 3: I can fill the rep myself, and my workfloads become
35:46
Speaker 3: so much more efficient. And you know the thing is,
35:51
Speaker 3: we see it happening now, but we have no idea
35:56
Speaker 3: how fast it's going to happen. Andrew, like, I will
35:59
Speaker 3: just tell you, like, I'm a proud Tesla earner, not
36:02
Speaker 3: because I think I'm saving the planet, because I love
36:04
Speaker 3: the tech driving a diperience graded car, ever, and the
36:09
Speaker 3: abidity to continually upgrade a product that normally you would buy.
36:14
Speaker 3: You'd buy the car, and then from that.
36:17
Speaker 1: Point on it just got worse and worse and work
36:20
Speaker 1: I guess, I guess older.
36:21
Speaker 3: Yeah, the test what never happens. It's always something new.
36:26
Speaker 3: Now that full self driving. Now, I've been doing it
36:29
Speaker 3: for about two and a half years, and I said,
36:31
Speaker 3: if you'd like to let that thing do the full
36:33
Speaker 3: self driving, you'll die back two years ago, three and
36:37
Speaker 3: a half years ago, maybe three now now I had.
36:41
Speaker 3: I just upgraded, updated the latest version. I haven't gotten
36:45
Speaker 3: to use it yet, but I've been watching videos where
36:48
Speaker 3: the thing does you turn, You push a button, the
36:51
Speaker 3: backs out of your car, out of your driveway, out
36:54
Speaker 3: of your garage, closes the garage and takes you where
36:57
Speaker 3: you're going to go, and then you point to a
36:59
Speaker 3: space in a park. And that's But the gulp of
37:05
Speaker 3: the improvement didn't happen over the past two and a
37:08
Speaker 3: half years. It happened over the PEP thread to four
37:12
Speaker 3: months when the AI started watching Louvie of people driving
37:19
Speaker 3: instead of trying to program for it, and it learned
37:22
Speaker 3: on its own and I think in another six months,
37:26
Speaker 3: a sure we could have FSP. Does that make pet
37:29
Speaker 3: Flow buy or does that make it easier for somebody
37:32
Speaker 3: else come along and replicate what they're doing, some Chinese
37:35
Speaker 3: company or whatever.
37:39
Speaker 1: I mean it's truth, is that does it make Tesla buy?
37:41
Speaker 1: I mean since the well since the election, test has
37:45
Speaker 1: been going vertical right over four hundred dollars per share
37:49
Speaker 1: right now on no new news and in fact, on
37:52
Speaker 1: the potential for you know, concerning trade action against China
37:57
Speaker 1: or with China, and fuller full self drive FSD doesn't happen.
38:03
Speaker 1: Is it getting better? Is that why?
38:04
Speaker 3: I mean?
38:04
Speaker 1: I think it's all about really the regulation and favoritism
38:07
Speaker 1: of what Musk is going to get because of who
38:10
Speaker 1: he helped get into the White House, Right, That's more
38:13
Speaker 1: so what it's about. But but but Tesla, I don't
38:18
Speaker 1: think it's worth the value that is worth right now.
38:21
Speaker 3: There's no way.
38:22
Speaker 1: I mean, the company was actually in the two hundreds
38:26
Speaker 1: not too long ago because the numbers that came out
38:29
Speaker 1: from buying. Now, will all the Conservatives turn around and
38:33
Speaker 1: all of a sudden love elon because he helped and
38:37
Speaker 1: buy Tesla's At the same time, the Trump administration is
38:40
Speaker 1: already talking about the incoming it's talking about removing the
38:44
Speaker 1: tax credits, so you should which they should. Well, that's
38:47
Speaker 1: not great for Tesla and probably won't matter that much.
38:52
Speaker 3: You know. The other thing with Tesla though, is that
38:57
Speaker 3: through their AI and through their system, they continually lowered cost. Yes,
39:02
Speaker 3: for the most part, lipping plunging lipping, and prices didn't
39:06
Speaker 3: hurt either, But the average cost of the PETLA is
39:10
Speaker 3: like less than it was the three four years ago
39:13
Speaker 3: to produce it, right, And that's something that that American
39:17
Speaker 3: industry largely has been incapable of during my lifetime. Yep,
39:22
Speaker 3: I hear you so interesting thing. I guess it actually
39:27
Speaker 3: the AI of all the industry that everything that we
39:31
Speaker 3: deal with day in day out. What industry do you
39:34
Speaker 3: think will be impacted the most by AI?
39:38
Speaker 1: I think healthcare is well technology, but put that aside,
39:41
Speaker 1: that's obvious that that's I don't think we have to
39:44
Speaker 1: talk about that. I do think, I mean, finan it's interesting,
39:47
Speaker 1: like you said, you know, healthcare is probably the number
39:50
Speaker 1: one that I could think off of the top of
39:51
Speaker 1: my head. That would be transportations, interesting, infrastructure not so much.
39:58
Speaker 1: You still need you know, see any picks and shovels,
40:01
Speaker 1: people breaking their backs to do things. I mean, I
40:04
Speaker 1: would think that healthcare could be a significant overall significant.
40:09
Speaker 3: Yeah, I think you're right. I think you're right, and
40:14
Speaker 3: on multiple level. The ability to get to gettant up
40:20
Speaker 3: to date information on what you're eating right and and
40:25
Speaker 3: the drugs you're taking. And then the ability where doctors
40:30
Speaker 3: to not make mistakes. Maybe we'll be having the robots
40:34
Speaker 3: in the hospital and that will be.
40:37
Speaker 1: We have them, we have them already. But what's interesting,
40:40
Speaker 1: you know, if you want just confirmation of this, just
40:42
Speaker 1: looking no further than Apple and why they are all
40:45
Speaker 1: in on the Apple Watch and the healthcare and what
40:49
Speaker 1: they're doing with blood and pulse and O two SATs
40:53
Speaker 1: and everything that's going on, everything that's going on with
40:56
Speaker 1: the Apple Watch. I one day will have an Apple
40:59
Speaker 1: Apple Watch. Right now because of these and my inability
41:04
Speaker 1: to see anything, I think it would ignore the hell
41:09
Speaker 1: out of me having to put on glasses all the time. Yeah,
41:11
Speaker 1: well yeah, maybe you can see better than I can.
41:14
Speaker 1: But h but that's another thing. I mean, we have
41:17
Speaker 1: a lot of things happening. For example, one of the
41:19
Speaker 1: greatest things that are happening right now. Is the innovation
41:22
Speaker 1: is happening so fast. The old cataract surgery where you
41:24
Speaker 1: replace your lenses because if your cataracts is now available
41:27
Speaker 1: to anybody just to replace your lenses and you get
41:29
Speaker 1: perfect vision. I have three friends that have done it
41:31
Speaker 1: perfect vision.
41:33
Speaker 3: That's called lens swopping. And yeah, I looked into that,
41:38
Speaker 3: but I've had some other issues with my eyes. I
41:41
Speaker 3: don't want to met with it traumatize my eyes. But
41:44
Speaker 3: basically the rips are extremely low. It's expensive, but you
41:50
Speaker 3: can see the day when when it's like, well, you
41:54
Speaker 3: have you have to do it after a certain age
41:56
Speaker 3: when your eyes stop changing. You can't swap lended for
42:01
Speaker 3: like a eighteen year old got lapsed for the final
42:05
Speaker 3: pick my year old. But you can see, you can
42:09
Speaker 3: see where it's call headingch So how do we, using
42:11
Speaker 3: your approach as the disciplined investor make money off of
42:15
Speaker 3: the AI trend? Is there a way to make money?
42:18
Speaker 3: Is it too uncertain and we just don't know? And
42:21
Speaker 3: all the all the easy money has been made up
42:23
Speaker 3: of the video I.
42:25
Speaker 1: Mean right now, right right now, the picks and shovels
42:27
Speaker 1: and videos a m D. By the way, we're short,
42:29
Speaker 1: just as a full disclosure were long in video short AMD.
42:34
Speaker 1: There are a lot of long Microsoft. The players go
42:37
Speaker 1: loong Google. These are the players that have the picks
42:41
Speaker 1: and shovels right long Amazon. These are the names that
42:44
Speaker 1: you want to be looking at in the first stage.
42:47
Speaker 1: We're in the first stage about it, where we're in
42:48
Speaker 1: the early stage of this how it how it goes
42:50
Speaker 1: from here. There's a bunch of companies that are saying
42:53
Speaker 1: that AI like a m D. They're not. That's why
42:56
Speaker 1: you know, we show them at one fifty eight. They're
42:58
Speaker 1: in the sub one thirty right now. And you look
43:02
Speaker 1: at the opportunity from companies that are providing things like
43:05
Speaker 1: a Dell. Opportunities are enormous for service space, for buildouts,
43:11
Speaker 1: for what they have to do to generate this. The
43:14
Speaker 1: utility companies major play. You look at the SMRs, the
43:19
Speaker 1: small modular reactors for nuclear energy. You look at the
43:24
Speaker 1: utilities for their ability to basically provide the electrical that
43:29
Speaker 1: needs to be utilized to run these massive energy sucking
43:36
Speaker 1: computer systems storage facilities that are being built. That's another
43:42
Speaker 1: play that why utilities are generally close to but not
43:45
Speaker 1: at old time highs or fifty two week highs amazing.
43:49
Speaker 1: Who would have thought that in an interest rate market
43:51
Speaker 1: that has been pretty much stable, in a market that
43:54
Speaker 1: people want growth. I mean, we're going after the most conservatives.
43:59
Speaker 1: I mean utilities.
44:00
Speaker 3: I would think, right, your grandfather's utility.
44:05
Speaker 1: Widows and orphans, Right.
44:07
Speaker 3: Yeah, it's ate off the dividends, big dividend, I mean
44:11
Speaker 3: one that I like that I actually own and I'm
44:14
Speaker 3: not telling anyone by it. It's appreciated nicely over the
44:17
Speaker 3: past six months. Or Dominion, And the reason I picked
44:20
Speaker 3: them is because they're Northern Virginia, Virginia's electrical utility. And
44:28
Speaker 3: who's the biggest user of AI or he's got to
44:32
Speaker 3: be a government and the intelligence Langley Virginia and that
44:37
Speaker 3: whole AI intelligence infrastructure around them. And I read an
44:43
Speaker 3: article recently that if you want to build a data
44:45
Speaker 3: center in Virginia, you have to make a reservation with
44:52
Speaker 3: Dominion two years with vamps do that.
44:55
Speaker 1: Right, And that's why we want to vollnteer. By the way,
44:57
Speaker 1: who's AI for the government or governments? And that's why
45:03
Speaker 1: I Pollunteer, which was an underloved name for a long
45:06
Speaker 1: long time, has really look at that stock has done
45:10
Speaker 1: incredibly well for us, for our clients. So actually we
45:13
Speaker 1: trimmed a little bit of that. Yesterday or the day before,
45:16
Speaker 1: we triamed a little bit of our profits. It's just
45:17
Speaker 1: with such a magnanimous move that we felt that we
45:20
Speaker 1: should take a little bit off the table.
45:22
Speaker 3: So here's the question for you, Andrew Win, You a
45:26
Speaker 3: buy and hold die or you when do you sell?
45:29
Speaker 3: Obviously you're rousing money, you're going to cut your laws,
45:33
Speaker 3: But when do you sell when the thing is making money?
45:35
Speaker 3: Like and vidiot, you just set it and forget it.
45:40
Speaker 1: So we have rules. We have to have a consistency
45:42
Speaker 1: of earnings, consistency of growth of revenues. We have to
45:46
Speaker 1: have high what's called Roe return on equity. We have
45:48
Speaker 1: to have a certain margin expansion. All these rules go
45:51
Speaker 1: into play. You don't make any of those. If in
45:54
Speaker 1: totality is fifteen rules. Any of those that you don't make,
45:58
Speaker 1: you're out. You have to be the cream of the crop.
46:02
Speaker 1: With the equities that we own. Within our it's called
46:04
Speaker 1: the discipline investor manage growth strategy. Inside that strategy, we
46:09
Speaker 1: could have thirty stocks, we could have sixty socks. And
46:11
Speaker 1: the more stocks that we have, the more allocation we
46:13
Speaker 1: have towards equities versus For example, Palanteer is a as
46:18
Speaker 1: we call it, an alpha position that is something that
46:21
Speaker 1: we will trade around in Nvidia, Google that I mentioned,
46:28
Speaker 1: Microsoft that I mentioned are names that are part of
46:31
Speaker 1: the Strategies core filtering system. So you know, we add things.
46:37
Speaker 1: We had a couple of interesting adds this quarter. But
46:40
Speaker 1: if you don't make it, you're out. We've had in
46:42
Speaker 1: Vidia for a long time. There was a time it
46:44
Speaker 1: was out, but generally speaking for the last few years,
46:46
Speaker 1: and Vida has been in our portfolio. We trim it
46:48
Speaker 1: every quarter. If it grows dramatically, we'll trim a little
46:52
Speaker 1: bit of off, take the profits and rotate it back
46:55
Speaker 1: into other things that we're buying. So it all depends
46:57
Speaker 1: on what particular area we're working. Or we work on
46:59
Speaker 1: the trading side of our portfolio or for stocks uh
47:02
Speaker 1: in the manage grows strategy because it's separate than our
47:05
Speaker 1: global allocations.
47:06
Speaker 3: Or are we.
47:08
Speaker 1: In the trading side of it. Are we in the
47:11
Speaker 1: for AMDs trading position for example, or are we in
47:17
Speaker 1: core positions.
47:18
Speaker 3: Do you care about dividends the Do they make any
47:21
Speaker 3: difference than your Nope, not at.
47:24
Speaker 1: All, there is a gross strategy. Dividends are really not
47:27
Speaker 1: something that we will rely on. It has to be
47:29
Speaker 1: the basic tenets of certain levels of growth on a year,
47:32
Speaker 1: of a year, quarter over quarters, a time periods, of earnings,
47:35
Speaker 1: of revenues, of consistency of margin expansions. All this is
47:39
Speaker 1: all these consistency points we have to have to show
47:42
Speaker 1: us the management can not only say something but deliver
47:46
Speaker 1: and that they're actually doing.
47:47
Speaker 3: It consistently over time. Yep. You know, one one thing
47:51
Speaker 3: we never even really talked about with the AI and
47:55
Speaker 3: all the technology, it's howthing, you know, how thing The
47:58
Speaker 3: way we build up now has definitely been impacted by technology. Look,
48:05
Speaker 3: but I still take a year to build a big
48:08
Speaker 3: half six eight months. And you know, I think that
48:13
Speaker 3: new material that AI will create and new methods, and
48:19
Speaker 3: you know, we've had stuff where you like cats and
48:22
Speaker 3: plate and then you know, precast concrete panels and all
48:26
Speaker 3: that stuff. But I think we're gonna we're gonna see
48:30
Speaker 3: a huge boon there as well, and robotics and all
48:34
Speaker 3: that might very well bring down the cop All right,
48:37
Speaker 3: So Andrew, tell us where we find you, how we
48:40
Speaker 3: connect with you on the web.
48:42
Speaker 1: Yep, just go over to The Disciplined Investor dot com.
48:45
Speaker 1: Look me up Andrew Horowitz Investor or something like that.
48:47
Speaker 1: You know, you can find me on the site. There
48:49
Speaker 1: is all the information about our various strategies. That two
48:52
Speaker 1: podcasts that we do per week, The Discipline Investor DH
48:55
Speaker 1: Unplugged as well, which is pretty fun.
48:58
Speaker 3: Uh.
48:59
Speaker 1: We have a lot of guests on We've been doing
49:01
Speaker 1: this since two thousand and seven. The podcast one of
49:04
Speaker 1: the original podcasters out there in the area finance.
49:07
Speaker 3: You got maybe I started in twenty ten and I
49:10
Speaker 3: thought I was ahead of the waves. Hey, well, anyway,
49:14
Speaker 3: we'll have a link in the show that's this interview
49:16
Speaker 3: on Financial Survival Network dot com. And we just asked
49:20
Speaker 3: that you sign up for free newsletter like over sixty
49:23
Speaker 3: thousand other f f END community members. And if you've
49:27
Speaker 3: got a question for Andrew myself, shoot me an email
49:30
Speaker 3: kl Kerry Lets dot com. Andrew always a pleasure. We'll
49:34
Speaker 3: talk to you again real soon.
49:35
Speaker 2: All right, have a great holiday, Thanks so much, Kerry,
49:37
Speaker 2: Thanks for listening to Carrie Let's's Financial Survival Network your
49:41
Speaker 2: solution to today's trying times. For the latest, go to
49:45
Speaker 2: Financial Survivalnetwork dot com. Financial survival network now more than
49:51
Speaker 2: ever
50:00
Speaker 3: M