Latest / Earn Your Leisure / Study Hall: KEYS TO LONG TERM STOCK INVESTING

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Study Hall: KEYS TO LONG TERM STOCK INVESTING · Earn Your Leisure

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  Speaker 1: all you need.
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  Speaker 2: COVID cases are spiking and this is going to be
• 1:01
  Speaker 2: a little repeat of twenty twenty, and I need you
• 1:05
  Speaker 2: to get prepared. So for those of you that are
• 1:07
  Speaker 2: conspiracy theorists, they listen to Alex Jones all day. Sorry.
• 1:12
  Speaker 2: Almost four hundred thousand people have died. This thing is
• 1:15
  Speaker 2: real and it's getting worse now. This is the scary part.
• 1:17
  Speaker 2: The second version or the second iteration of COVID spreads
• 1:21
  Speaker 2: faster than the original. So I want you to write
• 1:25
  Speaker 2: these golden rules down because we are in a new normal.
• 1:30
  Speaker 2: We will never go back to the old model. So
• 1:32
  Speaker 2: for those of you who are in the workforce before
• 1:34
  Speaker 2: two thousand and seven, when the Great Recession hit, it
• 1:37
  Speaker 2: changed how business was done forever. I remember even going
• 1:40
  Speaker 2: to college in two thousand and it was like, man,
• 1:42
  Speaker 2: if you graduate, you're guarantee the job. And then the
• 1:44
  Speaker 2: Great Recession hit and that got wiped away. Twenty twenty
• 1:50
  Speaker 2: is come and we'll talk about it later. The era
• 1:54
  Speaker 2: that we're entering in now so before is the information age.
• 1:57
  Speaker 2: Where we are in a new age now. But here's
• 2:00
  Speaker 2: the thing that I want you to do. If you
• 2:02
  Speaker 2: are working, please write this down right now. For every
• 2:06
  Speaker 2: dollar that your company pays you, you need to know
• 2:09
  Speaker 2: how much of a return you are giving them, because
• 2:13
  Speaker 2: it's the only thing that it's going to give you
• 2:15
  Speaker 2: any security with that company or when it's time to
• 2:17
  Speaker 2: apply for another job. Secondarily, I want to focus on this.
• 2:23
  Speaker 2: You have to break up your time into quadrants of
• 2:26
  Speaker 2: four and you have to have a time for work
• 2:28
  Speaker 2: a time for play. I'll tell you like this, never
• 2:31
  Speaker 2: have I been to the funeral and once thought about
• 2:34
  Speaker 2: business when I was there. And companies will not care
• 2:37
  Speaker 2: about you as much. And everyone has seen the meme.
• 2:40
  Speaker 2: If you die today tomorrow you know your job will
• 2:44
  Speaker 2: be on a job board. And that is very true.
• 2:46
  Speaker 2: So as we enter this new normal and things are
• 2:48
  Speaker 2: not going back to how they were before, I want
• 2:51
  Speaker 2: you to pick your own balance for how things are
• 2:53
  Speaker 2: going to be governed and then in this era for
• 2:56
  Speaker 2: you and your family. One of the biggest trading lessons
• 2:59
  Speaker 2: of the week. So all my traders, get your pans out,
• 3:01
  Speaker 2: We'll get your phone out and screenshot this. Once you
• 3:04
  Speaker 2: have a major loss, you have to cut your losses
• 3:06
  Speaker 2: and stop. So number one, I want you to take
• 3:10
  Speaker 2: a break for a week, and after two days, I
• 3:13
  Speaker 2: need you to look at the recording and see what
• 3:15
  Speaker 2: went wrong. So if you go through the book Market Wizards,
• 3:18
  Speaker 2: which is probably my favorite book on trading, one of
• 3:21
  Speaker 2: the biggest things that people talk about is when they
• 3:23
  Speaker 2: have a big loss, you almost feel like you're in
• 3:26
  Speaker 2: a tornado and you don't know what happened and emotions
• 3:28
  Speaker 2: kick in. But like a player would postgame, you need
• 3:32
  Speaker 2: to go through and look at the footage to see
• 3:34
  Speaker 2: what went wrong, what happened wrong on what you can
• 3:36
  Speaker 2: do differently so that does not happen again. And number one,
• 3:40
  Speaker 2: Number two, if you are a trader and you are
• 3:44
  Speaker 2: winning less than fifty percent of your trades, please write
• 3:47
  Speaker 2: this risk to reward ratio down. I want you to
• 3:50
  Speaker 2: risk one to make twenty two. Please type in chat
• 3:55
  Speaker 2: what percentage do you need to be at in order
• 3:57
  Speaker 2: to be profitable? If that is your risk of reward. Now,
• 4:00
  Speaker 2: not all products are going to allow you to do that,
• 4:02
  Speaker 2: but now as that dal Russell on the future side
• 4:06
  Speaker 2: will allow you to do so, you need to risk
• 4:08
  Speaker 2: one to make twenty two. So even if you are
• 4:10
  Speaker 2: a bad trader from a stat's perspective, you still need
• 4:13
  Speaker 2: to be able to make money and know what the
• 4:14
  Speaker 2: probability is of your trading. I don't know, some of
• 4:19
  Speaker 2: you are gonna kill me, but look, if UFOs are real,
• 4:22
  Speaker 2: then a space exploration will be the next frontier. So
• 4:26
  Speaker 2: a couple of weeks ago, on ig I was posting
• 4:28
  Speaker 2: all these conspiracy videos about UFOs, right and then behind
• 4:33
  Speaker 2: the scenes you can see there are a couple of
• 4:35
  Speaker 2: tickers up here. Go look at the ticker UFO, the
• 4:39
  Speaker 2: ticker are okay t Rocket. And then of course the
• 4:43
  Speaker 2: amazing Kathy Woods has her own which is going to
• 4:47
  Speaker 2: focus on space expiration. I think over the next ten
• 4:49
  Speaker 2: years there'll be some incredible revelations. But of course Amazon
• 4:53
  Speaker 2: and Tesla are already there. Whenever SpaceX goes public, I'm
• 4:57
  Speaker 2: gonna be biased towards them because Elon is a great
• 5:01
  Speaker 2: But look at these two ticker symbols. Tonight question for you,
• 5:07
  Speaker 2: I need you to write this in chat. Have you
• 5:09
  Speaker 2: made more money from long term holding or from trading?
• 5:12
  Speaker 2: Kirk put up a great comment last week. I was
• 5:15
  Speaker 2: told by my uncle, an investor worth a high eight figures,
• 5:18
  Speaker 2: what to do with my money. Only buy grown companies
• 5:21
  Speaker 2: and hold them. Do not trade. You will regret doing that. Now.
• 5:25
  Speaker 2: Twenty percent of people that begin trading stick around for
• 5:28
  Speaker 2: more than a year. Out of that twenty only ten
• 5:30
  Speaker 2: percent stay around for five years. Here's a great thing, though,
• 5:34
  Speaker 2: Even if you never learn how to trade, keep your
• 5:37
  Speaker 2: money in the market for a long enough period. A
• 5:39
  Speaker 2: ten year old is ideal. You'll beat most people that
• 5:42
  Speaker 2: are actually trading, because most traders blow up their account
• 5:45
  Speaker 2: and give all their money back. So I know there's
• 5:48
  Speaker 2: a lot of other things that are sexy, but the
• 5:51
  Speaker 2: tried and true formula here is to hold for ten years,
• 5:55
  Speaker 2: and if you can hold for thirty that would be
• 5:57
  Speaker 2: absolutely incredible in terms of selectivity in terms of your allocation.
• 6:05
  Speaker 2: For every twenty investments you see, you have to say
• 6:08
  Speaker 2: no to nineteen of them. So for weeks we've talked
• 6:11
  Speaker 2: about fundamentally what I look at when I assess the company,
• 6:14
  Speaker 2: and we'll talk about another one tonight. But when I'm
• 6:17
  Speaker 2: going through and comparing companies to the primary ones that
• 6:20
  Speaker 2: I like, they have to trump the ones that I
• 6:24
  Speaker 2: have already, and if they don't, you have to let
• 6:26
  Speaker 2: it go. Sometimes because of the amount of media we're
• 6:30
  Speaker 2: taking in, we're like, hey, let me just jump in
• 6:32
  Speaker 2: this one and let's see how it pans out. But
• 6:35
  Speaker 2: remember the number of shares that we own is more
• 6:38
  Speaker 2: important than the price we particularly got in, and we
• 6:42
  Speaker 2: want to focus on a few concentrated quality companies opposed
• 6:45
  Speaker 2: to having thirty five in a portfolio trading lesson number three.
• 6:52
  Speaker 2: And for traders, our point of reflection and insights usually
• 6:56
  Speaker 2: happen on the days that we have off, So the
• 6:59
  Speaker 2: future is mark. It was open for a half a day.
• 7:01
  Speaker 2: The volume wasn't that high. But the secret is cutting
• 7:03
  Speaker 2: down the number of trades you take for the year,
• 7:06
  Speaker 2: so you can follow this simple matrix. First quarter, want
• 7:09
  Speaker 2: you to take twelve. Second quarter, I want you to
• 7:13
  Speaker 2: take twelve trades. Third quarter, twelve, fourth quarter. You already
• 7:19
  Speaker 2: have an assessment for how the year went. Either we're
• 7:21
  Speaker 2: super bulish, super barish, or we were ranging fourth quarter.
• 7:25
  Speaker 2: You can double the amount of trades and do twenty four.
• 7:28
  Speaker 2: But too many people trade like they're gambling in Vegas,
• 7:32
  Speaker 2: opposed to running it like a business. You want to
• 7:36
  Speaker 2: treat tradeing like a business year in and year out.
• 7:39
  Speaker 2: Please put trade like it's a business in chat. The
• 7:45
  Speaker 2: top ten apps to twenty twenty, now look at these.
• 7:47
  Speaker 2: Zoom number one, which we're on now, and they're gradually improving.
• 7:51
  Speaker 2: TikTok right, Third is Disney Plus, fourth is YouTube owned
• 7:55
  Speaker 2: by Google. Then Instagram and Facebook. But the thing I
• 8:00
  Speaker 2: want you to notice how Instagram and Facebook are falling
• 8:03
  Speaker 2: out of favor. Josh last week talked about how Facebook
• 8:07
  Speaker 2: is a communication company and also for those of you
• 8:09
  Speaker 2: that are insiders on in the industry, you know that
• 8:13
  Speaker 2: Zuckerberg is not the most favorable CEO for whatever reason.
• 8:16
  Speaker 2: I don't know if because he blew off Wall Street
• 8:19
  Speaker 2: week they haven't liked him since then. He isn't the
• 8:22
  Speaker 2: darling entrepreneur and CEO that some of his peers are
• 8:27
  Speaker 2: held out to be. So Facebook is sliding down Snapchat,
• 8:32
  Speaker 2: even though it's lost popularity, it still was downloaded or
• 8:34
  Speaker 2: not a lot messengers underneath Snapchat once again a Facebook product.
• 8:39
  Speaker 2: It's towards the end of the chain. Gmail. And then
• 8:42
  Speaker 2: of course cash App, owned by Square. Square is an
• 8:44
  Speaker 2: amazing company. So these are the top ten. But when
• 8:47
  Speaker 2: you see these kind of lists, pay attention to who
• 8:50
  Speaker 2: is up top and who is sliding down. And if
• 8:53
  Speaker 2: you compare twenty twenty to twenty nineteen and go through
• 8:56
  Speaker 2: twenty seventeen and twenty sixteen, you will see that there's
• 8:59
  Speaker 2: a great gradual change to the downside. And then of
• 9:01
  Speaker 2: course TikTok came out of nowhere and crushed the market.
• 9:06
  Speaker 2: And I posted this earlier, but I need to have
• 9:09
  Speaker 2: a very honest conversation with you about For those of
• 9:11
  Speaker 2: you that are trading. If you're not studying every day,
• 9:14
  Speaker 2: it's only because deep down you don't want to win.
• 9:19
  Speaker 2: And if you're overtrading, it's because you don't want to win,
• 9:22
  Speaker 2: because you are self sabotaging. I'll tell you like this,
• 9:26
  Speaker 2: if you truly, truly love trading, the act up. And
• 9:29
  Speaker 2: we have some athletes on here, like the guys that
• 9:32
  Speaker 2: you have to beat into the gym. They don't want
• 9:33
  Speaker 2: to play ball. And it's okay, you don't have to trade.
• 9:37
  Speaker 2: You can make way more money doing something else. I
• 9:40
  Speaker 2: want you to follow what your passion. I know trading
• 9:42
  Speaker 2: right now sexy as hell, and it's in vogue and
• 9:44
  Speaker 2: I can't wait till it goes not to being sexy
• 9:46
  Speaker 2: anymore how it used to be three or four years ago.
• 9:49
  Speaker 2: But when you want it, you will lust after the
• 9:52
  Speaker 2: work that comes with it in order to win. So
• 9:55
  Speaker 2: if you are not studying every day, or you feel
• 9:59
  Speaker 2: like it's a or that you hate, I want you
• 10:02
  Speaker 2: to make the decision either to walk away and be
• 10:04
  Speaker 2: a long term investor or go all in. But I
• 10:07
  Speaker 2: want you to put in chat. Are you going to
• 10:08
  Speaker 2: go all in or long term invest And like I
• 10:13
  Speaker 2: said before, even if you just long term invest you're
• 10:15
  Speaker 2: going to do better than most people who solely trade.
• 10:19
  Speaker 2: Last week, Josh talked to us about why pee ratio
• 10:22
  Speaker 2: doesn't matter as much, and I want to take you
• 10:25
  Speaker 2: down a quick trip down memory lane. So in two
• 10:28
  Speaker 2: thousand and eight, because it's same. So when you guys
• 10:30
  Speaker 2: are like, hey, Apple's going to fall apart, this story
• 10:33
  Speaker 2: gets printed every damn year. So in two thousand and eight,
• 10:38
  Speaker 2: this is the day, like the market lost faith in Apple.
• 10:40
  Speaker 2: Steve was still running it right, so you can see
• 10:44
  Speaker 2: here had about an eighteen cash trailing and ten x
• 10:48
  Speaker 2: four it while maintaining seventy percent earnings growth for over
• 10:51
  Speaker 2: a year. And it was the same thing. Not enough products,
• 10:55
  Speaker 2: MacBooks are dying, the CEO isn't good? Is boring? We
• 10:58
  Speaker 2: want something new, right, But look at the price of
• 11:01
  Speaker 2: Apple then, and if you would have held from two
• 11:05
  Speaker 2: thousand and eight through now. So when we're looking at
• 11:08
  Speaker 2: these ratios, and even if you're looking at Benjamin Graham's
• 11:11
  Speaker 2: model or another indicator that you guys can rut rite
• 11:14
  Speaker 2: down is buffets measurement of the market. They're great ways
• 11:19
  Speaker 2: to calculate, but sometimes they misstep. So if you go
• 11:23
  Speaker 2: and look at this article. You can see Apple's potential
• 11:28
  Speaker 2: was discounted for six months before the recession, and then
• 11:31
  Speaker 2: the market bottomed out and their earning was great and
• 11:35
  Speaker 2: they continue to innovate and continue to make sales like crazy,
• 11:38
  Speaker 2: and they went to the upside. So even if something
• 11:40
  Speaker 2: has a high PE ratio, it's just the cost that
• 11:44
  Speaker 2: you're paying for those earnings. But what if they're earning
• 11:47
  Speaker 2: that company is printing earnings like shit and they are
• 11:50
  Speaker 2: non their company that's a NonStop printing machine. You should
• 11:54
  Speaker 2: not get out of them because of that reason. So
• 11:56
  Speaker 2: sometimes PE ratio and these ratios can be misleading. I
• 12:01
  Speaker 2: think they are good measurement for the overall index, but
• 12:04
  Speaker 2: there has to be an exception for when a company
• 12:06
  Speaker 2: it's top one or two in it's field. And this
• 12:10
  Speaker 2: is the point that I need to drive home again
• 12:12
  Speaker 2: for my fundamental and technical traders, there has to be
• 12:15
  Speaker 2: a catalyst for while the market falls. The market isn't
• 12:18
  Speaker 2: going to slide down just because we hit a technical level.
• 12:21
  Speaker 2: That's why you can see we constantly have been hitting
• 12:23
  Speaker 2: all time highs and everyone's like, well, I'm a short here,
• 12:26
  Speaker 2: and I'm like why so they hit a high? It
• 12:28
  Speaker 2: can go fifteen percent higher before it eventually slides down.
• 12:34
  Speaker 2: So you need an interest rate increase, which we may
• 12:37
  Speaker 2: have soon. A bubble, a weak market, we need something
• 12:40
  Speaker 2: to push it down. And here's a good trick to know.
• 12:43
  Speaker 2: Whatever that catalyst is, it will be on the news
• 12:46
  Speaker 2: as soon as you get off work soon and then
• 12:49
  Speaker 2: it'll be all over social. So with COVID is if
• 12:52
  Speaker 2: we hit a certain benchmark, we cross three or four
• 12:55
  Speaker 2: million deaths, that will push the market down the lot.
• 12:57
  Speaker 2: But until then, don't worry. I don't know if you
• 13:02
  Speaker 2: guys know, but Market Monday is a idea and a
• 13:06
  Speaker 2: real time course that should be a hell of a
• 13:09
  Speaker 2: lot in real time. But I want you to remember
• 13:12
  Speaker 2: to execute. Kudos to good brother here who's up Unplug
• 13:15
  Speaker 2: and NEO. What I don't want to do is solely
• 13:18
  Speaker 2: entertain you. What I want you to do is for
• 13:20
  Speaker 2: you to be entertained, inspired and then you execute. So
• 13:24
  Speaker 2: I know some of you are like, hey, you hear
• 13:27
  Speaker 2: one thing, but when you go back and listen, another
• 13:30
  Speaker 2: thing has been said. For So for those of you
• 13:31
  Speaker 2: that have wondered if NEO is solid, Plug is solid, Yes,
• 13:34
  Speaker 2: I don't think they're the leader in that space, and
• 13:36
  Speaker 2: I don't think that they will be at least ernest.
• 13:39
  Speaker 2: What's up.
• 13:40
  Speaker 3: You ever walk into a small business and everything just
• 13:42
  Speaker 3: works like the checkout is fast, the receipts are digital,
• 13:46
  Speaker 3: tipping is a breeze, and you're out the door before
• 13:49
  Speaker 3: the line even builds odds are they're using Square. We
• 13:53
  Speaker 3: love supporting businesses that run on Square because it just
• 13:56
  Speaker 3: feels seamless. Whether it's a local coffee shop, a vendor
• 13:59
  Speaker 3: at a plap up market, or even one of our
• 14:01
  Speaker 3: merch partners, Square makes it easy for them to take payments,
• 14:05
  Speaker 3: manage inventory, and run their business with confidence, all from
• 14:09
  Speaker 3: one simple system. If you're a business owner or even
• 14:13
  Speaker 3: just thinking about launching something soon, Square is hands down
• 14:16
  Speaker 3: one of the best tools out there to help you start, run,
• 14:19
  Speaker 3: and grow. It's not just about payments, it's about giving
• 14:23
  Speaker 3: you time back so you can focus on what matters
• 14:26
  Speaker 3: most ready. To see how Square can transform your business,
• 14:29
  Speaker 3: visit Square dot com backslash go backslash eyl to learn
• 14:34
  Speaker 3: more that Square dot com backslash, go backslash eyl. Don't wait,
• 14:39
  Speaker 3: don't hesitate, let's Square handle the back end so you
• 14:42
  Speaker 3: can keep pushing your vision forward. This episode is brought
• 14:48
  Speaker 3: to you by P and C Bank. A lot of
• 14:50
  Speaker 3: people think podcasts about work are boring, and sure they
• 14:54
  Speaker 3: definitely can be, But understanding a professional's routine shows us
• 14:58
  Speaker 3: how they achieve their success little by little, day after day.
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  Speaker 2: It's like banking with P and C Bank. It might
• 15:05
  Speaker 2: seem boring.
• 15:06
  Speaker 3: To safe plan and make calculated decisions with your bank,
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  Speaker 3: but keeping your money boring is what helps you live
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  Speaker 3: or more happily fulfilled life. P and C Bank Brilliantly
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  Speaker 1: You just realized your business needed to hire someone yesterday.
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  Speaker 1: and support our show by saying you heard about Indeed
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• 16:27
  Speaker 1: all you need for.
• 16:28
  Speaker 2: Five or ten years. But they are solid investments, but
• 16:31
  Speaker 2: they're too high at the moment. And same thing with Boeing.
• 16:35
  Speaker 2: Boeing is not one of the best companies. There's a
• 16:37
  Speaker 2: great lesson here. Sometimes certain assets will come down so
• 16:41
  Speaker 2: much that they are just a steel. So if you
• 16:44
  Speaker 2: can get a house that's worth two hundred grand on
• 16:46
  Speaker 2: sale for twenty five grand, that's what Boeing look like
• 16:49
  Speaker 2: when we crash. I don't love Boeing, but out of
• 16:52
  Speaker 2: the airline sector, it was the only one that I
• 16:53
  Speaker 2: really liked, and then it one up to two maenty
• 16:56
  Speaker 2: nine and sold off and it's been slotting back. So
• 16:58
  Speaker 2: once again I want to remind you guys to listen,
• 17:02
  Speaker 2: take notes, and even after the episode is over, watch
• 17:04
  Speaker 2: the replay because there's some gems in there that you
• 17:06
  Speaker 2: probably missed on to fundamentals that matter. Please write write
• 17:11
  Speaker 2: this down. Rotation is not for you. I've never seen
• 17:15
  Speaker 2: so many retail traders in my life here about rotation
• 17:18
  Speaker 2: for long term investment. If you're trading, okay, different, But
• 17:21
  Speaker 2: if you're holding for a long period of time, it's
• 17:24
  Speaker 2: not for you. Hedge funds have to spend money every quarter.
• 17:28
  Speaker 2: You don't. And then the second one is mind share.
• 17:31
  Speaker 2: So mind share is when you say a category or
• 17:34
  Speaker 2: brand is the first thing that you think about. So
• 17:36
  Speaker 2: let's play a little game. So if I mention a
• 17:39
  Speaker 2: car company, what's the first car company that comes to
• 17:42
  Speaker 2: your mind? Please type and chat? Okay. Now, if I
• 17:48
  Speaker 2: mention a sneaker company, what's the first one that comes
• 17:51
  Speaker 2: to mind? Okay? If I mentioned an electronics company, well,
• 17:59
  Speaker 2: let's say computer company. To be more specific, which one
• 18:02
  Speaker 2: comes to mind? I love Michael Dell, but nobody's saying Dell.
• 18:09
  Speaker 2: So mind chair is the one. If you interview ten
• 18:12
  Speaker 2: people on the street, eight out of ten would say
• 18:15
  Speaker 2: that particular brand. Mind chair is an equation and fundamental
• 18:19
  Speaker 2: analysis that I think is over excuse me, underrated. Very underrated,
• 18:23
  Speaker 2: and I want to clear this up. So I know
• 18:26
  Speaker 2: some of you have been hitting up about twenty four
• 18:28
  Speaker 2: strings of revenue. I want to be very clear. I'm
• 18:30
  Speaker 2: not saying that I want you to make twenty four
• 18:32
  Speaker 2: different businesses or have twenty four jobs, because that's impossible.
• 18:36
  Speaker 2: But I do want to walk through some of the
• 18:38
  Speaker 2: biggest finance lessons from some of the biggest companies in
• 18:40
  Speaker 2: the world. So if you look at Microsoft, Microsoft has
• 18:44
  Speaker 2: over one hundred and one products. If they only needed
• 18:49
  Speaker 2: seven for world domination with all the data that they have,
• 18:53
  Speaker 2: don't you think they would do seven? Apple has thirty,
• 18:59
  Speaker 2: Pepsi has over one hundred. Let's go to all my
• 19:02
  Speaker 2: folks in atl Coca Cola you can google this has
• 19:07
  Speaker 2: five hundred brands underneath their umbrella and thirty nine hundred
• 19:11
  Speaker 2: beverage choices thirty nine hundred. So if the magical number
• 19:17
  Speaker 2: was seven, with all the research and brand development that
• 19:21
  Speaker 2: Coca Cola's done, don't you think seven will be more
• 19:24
  Speaker 2: than enough. So if you're just starting, I don't want
• 19:27
  Speaker 2: you to be upset by hearing this number. But our
• 19:31
  Speaker 2: job is delivered to deliver the truth to the community
• 19:34
  Speaker 2: and not bullshit advice that's been shoveled down Instagram until
• 19:39
  Speaker 2: you by people who are not doing that. But they're
• 19:41
  Speaker 2: on clubhouse nine hours a day drinking all the kid's
• 19:45
  Speaker 2: juicy juice. Like, we're not here for that. But thirty
• 19:48
  Speaker 2: nine hundred choices is a lot of excus But there's
• 19:50
  Speaker 2: a reason for that. I'll walk you through a book
• 19:56
  Speaker 2: that I think is probably going to be the next
• 19:58
  Speaker 2: money master of the game from a macro level tonight.
• 20:01
  Speaker 2: But a very interesting insight that Chamult gave to Josh
• 20:06
  Speaker 2: when they are at a conference was they stopped learning
• 20:08
  Speaker 2: twenty years ago. What I don't want you guys to
• 20:12
  Speaker 2: do is even hear the information that we give you
• 20:14
  Speaker 2: and just take face value. I want you to go
• 20:17
  Speaker 2: review it, read it, and make sure that it's true,
• 20:20
  Speaker 2: because most people in investing stop learning after year one,
• 20:26
  Speaker 2: and that's how most people end up giving up their edge. Okay,
• 20:31
  Speaker 2: and you guys did an amazing job with the interview
• 20:33
  Speaker 2: with Mark Cuban. I want you guys to go back
• 20:36
  Speaker 2: and look and listen to the interview. But the minimization
• 20:39
  Speaker 2: of risk for how he was protecting his capital and
• 20:42
  Speaker 2: his newfound wealth is the most important lesson in that
• 20:46
  Speaker 2: college strategy that he executed. Could he have made more? Yes,
• 20:50
  Speaker 2: he's done pretty damn well for himself. Since kudos to
• 20:53
  Speaker 2: everybody at I you. But even if you don't have
• 20:57
  Speaker 2: a lot of money, I know the idea is you
• 20:59
  Speaker 2: want to grow fast. But if you grow fast and
• 21:03
  Speaker 2: you lose fast, what ends up happening for us to
• 21:05
  Speaker 2: the African American It breaks your spirit and you leave
• 21:08
  Speaker 2: the market and never come back. It's a unique experience.
• 21:13
  Speaker 2: So the reason why I'm saying defense, defense, defense, why
• 21:16
  Speaker 2: it's not the sexiest thing. It doesn't matter if you
• 21:20
  Speaker 2: have a two hundred percent gainer and then on your
• 21:22
  Speaker 2: next trade you give back one hundred and fifty percent
• 21:24
  Speaker 2: of it or two hundred percent of it, or you
• 21:27
  Speaker 2: get margin called and lose more. So go right down
• 21:30
  Speaker 2: and go look up that strategy that he executed, and
• 21:33
  Speaker 2: I think it will have a tremendous impact on how
• 21:36
  Speaker 2: you invest going forward. This is for the dads. I
• 21:41
  Speaker 2: want you to stop thinking about investing over a short
• 21:44
  Speaker 2: period of time, and I want you to make some
• 21:46
  Speaker 2: funds available for your family for the next hundred years.
• 21:52
  Speaker 2: I think we're thinking about this on too short of
• 21:54
  Speaker 2: a timeframe. Is it worth the sacrifice? I think if
• 21:59
  Speaker 2: you your child, yes, It's my job personally for me
• 22:03
  Speaker 2: and my family to provide for the next two hundred years.
• 22:05
  Speaker 2: So the seeds that I lay, I hope Xander or
• 22:09
  Speaker 2: his child does not mess it up. But for the
• 22:11
  Speaker 2: next two hundred years, I'll be able to provide a
• 22:14
  Speaker 2: solid foundation for him and then for the dads to
• 22:17
  Speaker 2: love your children. I think that should be a goal.
• 22:19
  Speaker 2: And next week I'll walk you through some of the
• 22:21
  Speaker 2: steps we can do to make that a reality. And
• 22:25
  Speaker 2: for those of you who are just starting and you
• 22:27
  Speaker 2: feel intimidated, let's look at this. Here's how much you
• 22:30
  Speaker 2: would have made if you would have just invested five
• 22:31
  Speaker 2: hundred a month type yes and chat if you spent
• 22:34
  Speaker 2: five hundred a month partying or on other things that
• 22:37
  Speaker 2: brought you less value. Four percent ready to return, which
• 22:41
  Speaker 2: I mean invest in ask considerable risk. Nothing is guaranteed.
• 22:45
  Speaker 2: We cannot project future gains based on past performance, and
• 22:48
  Speaker 2: you can reshot at Troy, but I think I can
• 22:51
  Speaker 2: comfortably say that we may be able to get you
• 22:52
  Speaker 2: four percent easily, perhaps five hundred a month for ten years.
• 22:58
  Speaker 2: You have seventy three grand at six percent return eighty
• 23:02
  Speaker 2: one thousand, five hundred a month. Of ten years of
• 23:05
  Speaker 2: an eighty percent return, you have ninety one thousand. Now
• 23:07
  Speaker 2: I want you to calculate if you got eighteen percent
• 23:11
  Speaker 2: year of a year for ten years, how much that
• 23:13
  Speaker 2: would be. It's not the dollar amount that you start with,
• 23:17
  Speaker 2: it's the consistency and the action. And some of you
• 23:21
  Speaker 2: figured this out in March. It's like you got in
• 23:22
  Speaker 2: at a great price on some companies, but you only
• 23:25
  Speaker 2: got ten shares of it. And it's like, damn. If
• 23:27
  Speaker 2: you knew back then what you know now, you probably
• 23:31
  Speaker 2: would have furnished or liquidated everything to furnish those investments
• 23:36
  Speaker 2: going forward. So even if you're starting small, it's okay.
• 23:39
  Speaker 2: It's going to give you confidence to bill later. And
• 23:42
  Speaker 2: as we get close to wrapping up, I want to
• 23:44
  Speaker 2: show you how to identify the best companies in a
• 23:47
  Speaker 2: sector in less than ninety seconds. So if we take
• 23:54
  Speaker 2: this site is called guru Focus. So let's go to
• 23:57
  Speaker 2: my favorite. Let's go to technology. I want you to
• 24:00
  Speaker 2: click on the sector. It's my screen still showing to
• 24:04
  Speaker 2: no y yes, okay, hold on, let me show them
• 24:09
  Speaker 2: turn the screen. Okay, yeah, there we go. Now, this
• 24:12
  Speaker 2: is a guru focus. I'm not a paid affiliated to anything.
• 24:15
  Speaker 2: Step one, I want you to click on the sector.
• 24:19
  Speaker 2: Great Now. After that, I want you to pick on
• 24:22
  Speaker 2: the biggest portion of that pie. So in this case
• 24:24
  Speaker 2: it will be software. It's fifty point eight percent of
• 24:27
  Speaker 2: the market. So we'll click here. Great Now, we'll go
• 24:30
  Speaker 2: to software and let's see who runs that space. And
• 24:35
  Speaker 2: you can see clearly by industry waiting, Microsoft is first,
• 24:42
  Speaker 2: and then you have the other smaller players. Notice nobody's
• 24:45
  Speaker 2: ever screaming damn, I should buy IBM, even though they
• 24:48
  Speaker 2: may have a chance in the next couple of years
• 24:50
  Speaker 2: to go up a little bit higher. Right. And then
• 24:53
  Speaker 2: you can do the same thing with hardware. So let's
• 24:55
  Speaker 2: go look at hardware. We can look at the waiting.
• 24:57
  Speaker 2: Who runs the waiting for hardware by a landslide is Apple.
• 25:02
  Speaker 2: So I'm literally looking at who is the biggest player
• 25:05
  Speaker 2: in the market, selecting those and then inside of that category,
• 25:10
  Speaker 2: I'm picking the top two. I don't want the ninth
• 25:13
  Speaker 2: best semiconductor in a space, so let's click on semiconductor.
• 25:17
  Speaker 2: So you can see in video Solid love a lot
• 25:22
  Speaker 2: Intel that market share is dying. Great, and you can
• 25:27
  Speaker 2: use this site to see who are the market share
• 25:30
  Speaker 2: leaders and in particular space. And I got a couple
• 25:32
  Speaker 2: more slizes and then we'll wrap up. So if you
• 25:37
  Speaker 2: look at the five things the market cares about the most,
• 25:41
  Speaker 2: please screenshot this. There's so much talk about what matters
• 25:45
  Speaker 2: and what moves the market. These are a core five.
• 25:49
  Speaker 2: Number one, the stability of the economy. Is the economy
• 25:51
  Speaker 2: doing good or bad. If the economy is doing good,
• 25:53
  Speaker 2: people going to spend more, and even companies that are
• 25:56
  Speaker 2: not that talented or that great have great management, will
• 25:59
  Speaker 2: do well. Number two interest rates. Interest rates have been
• 26:02
  Speaker 2: low for a long time, and when they finally bump
• 26:03
  Speaker 2: this up, man, the market is going to slide back some.
• 26:06
  Speaker 2: And all this free cash that we've been getting out
• 26:08
  Speaker 2: the market and all these easy eighteen and twenty five
• 26:11
  Speaker 2: percent games, they're going to go away. They're going to
• 26:15
  Speaker 2: go away. Number Three earnings of a particular company. So
• 26:19
  Speaker 2: I want you to look at the top two leaders
• 26:20
  Speaker 2: of the top three leaders in the space and see what
• 26:23
  Speaker 2: the earnings are. Number four does not get talked about
• 26:26
  Speaker 2: enough enough, but it's really the number of buyers and sellers.
• 26:29
  Speaker 2: There are more buyers in Tesla than there are short sellers.
• 26:33
  Speaker 2: For all the short sellers, may you rest in peace,
• 26:35
  Speaker 2: stop short in Tesla and number five who is best
• 26:38
  Speaker 2: in a category investment? Is not that Even when we
• 26:42
  Speaker 2: did the mind share exercise, no one is named of
• 26:45
  Speaker 2: the fifteenth best player in the space. And we are
• 26:48
  Speaker 2: in an efficiency era and this will not go away.
• 26:51
  Speaker 2: So before it was the information age, but the companies
• 26:53
  Speaker 2: that will dominate now are the ones that will make
• 26:56
  Speaker 2: our lives easier, get things for us faster, and save
• 26:59
  Speaker 2: us money like Roku, Netflix, Zillo. So if you guys
• 27:03
  Speaker 2: have not looked, Zillo is now make an offer on houses.
• 27:07
  Speaker 2: So for my real estate agents, you're gonna have to
• 27:09
  Speaker 2: find a way to take care of your customers and
• 27:13
  Speaker 2: clients more and also sell them houses faster because the
• 27:17
  Speaker 2: biggest player in the space is now starting to look
• 27:19
  Speaker 2: to eat your lunch and all technology companies usually aim
• 27:22
  Speaker 2: to do this. Domino's match so match owns everything except bumble.
• 27:28
  Speaker 2: They are a huge conglimber and when I did the interview,
• 27:30
  Speaker 2: we talked about that a few months ago. They've been
• 27:32
  Speaker 2: on the tear and of course Amazon the company that
• 27:35
  Speaker 2: makes life easier for us so we don't have to
• 27:38
  Speaker 2: drive and drop off tapes at Blockbuster and get a
• 27:40
  Speaker 2: fine Netflix is a better pick. Roku is a better pick.
• 27:44
  Speaker 2: In comparison. We have now switched to an efficiency era,
• 27:47
  Speaker 2: and for my business owners, you need to find a
• 27:50
  Speaker 2: way to get things delivered to you in a much
• 27:51
  Speaker 2: faster way. Ten years ago, you would have to drive
• 27:54
  Speaker 2: to downtown to meet with Reshid right, maybe do lunch
• 27:57
  Speaker 2: now zoom. We have to streamline everything that we're doing.
• 28:03
  Speaker 2: And then the final thing I want to cover for
• 28:04
  Speaker 2: you is the worst companies of this past decade had
• 28:10
  Speaker 2: a central thing. They were energy focused. The big energy company.
• 28:16
  Speaker 2: We companies we are watching die in front of us,
• 28:18
  Speaker 2: and some will make the adjustment and some will go
• 28:20
  Speaker 2: to clean energy and some will not, and they will
• 28:23
  Speaker 2: die a slow death before a company to draw down
• 28:26
  Speaker 2: seventy or eighty percent in a year is unfathomable. But
• 28:30
  Speaker 2: we are here at a change right before eyes. So
• 28:33
  Speaker 2: I appreciate you guys so much. I thank you Deally.
• 28:36
  Speaker 2: I want to remind you to please invest in the
• 28:38
  Speaker 2: market every single month, and if you are going to trade,
• 28:41
  Speaker 2: be dedicated. Practice your ass off because it's not easy.
• 28:45
  Speaker 2: I love you guys. Thank you, My graduates from my
• 28:49
  Speaker 2: school being forced back drop drop mic drop Bag drop d.
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