Latest / Triple Da Money / Snapchat vs. Lululemon vs. S&P 500: The $1,000 Challenge

Transcript

Snapchat vs. Lululemon vs. S&P 500: The $1,000 Challenge · Triple Da Money

• 0:00
  SPEAKER_00: I get way more girls on Snapchat than you do.
• 0:02
  SPEAKER_00: That's not an opinion, that's a stat.
• 0:04
  SPEAKER_00: It's a science.
• 0:06
  SPEAKER_01: Your top snap score is from the raccoon filter and your cousin.
• 0:10
  SPEAKER_02: Can we focus?
• 0:11
  SPEAKER_02: Grandma just sent us all checks.
• 0:14
  SPEAKER_00: Wait, checks?
• 0:15
  SPEAKER_00: Like money checks?
• 0:17
  SPEAKER_02: Happy birthday.
• 0:18
  SPEAKER_02: Invest it.
• 0:19
  SPEAKER_02: Don't blow it.
• 0:20
  SPEAKER_02: And Austin, no parlays.
• 0:23
  SPEAKER_02: That's underlined three times.
• 0:26
  SPEAKER_02: And she sent a frowny face.
• 0:28
  SPEAKER_01: That was one time.
• 0:30
  SPEAKER_01: And it was almost a great story.
• 0:33
  SPEAKER_00: Whoever grows their money the most is obviously grandma's favorite now.
• 0:37
  SPEAKER_02: Nobody said that, but also, you're on.
• 0:41
  SPEAKER_02: Okay, so here's the situation.
• 0:44
  SPEAKER_02: We each got a thousand dollars with one rule.
• 0:48
  SPEAKER_02: Invest it.
• 0:49
  SPEAKER_02: Don't blow it.
• 0:50
  SPEAKER_00: Easy.
• 0:51
  SPEAKER_00: I already know exactly what I'm doing.
• 0:53
  SPEAKER_02: That sentence is exactly the problem I want to talk about.
• 0:58
  SPEAKER_02: If you're 17 and nobody's actually taught you how to pick a stock, here's what your brain does instead.
• 1:04
  SPEAKER_02: You look at your phone and you see what app you used the most, and you say, well, this must be a good investment.
• 1:11
  SPEAKER_02: I use it every day.
• 1:12
  SPEAKER_01: That's not wrong though.
• 1:14
  SPEAKER_02: That's not exactly right.
• 1:16
  SPEAKER_02: Using something a lot tells you it's popular.
• 1:19
  SPEAKER_02: It doesn't tell you that the company is making money.
• 1:22
  SPEAKER_00: Okay, but what if I use it and it's a good company?
• 1:26
  SPEAKER_02: Then congratulations, you got lucky.
• 1:28
  SPEAKER_02: Let's test it.
• 1:30
  SPEAKER_02: You're each putting your$1,000 into whatever your brain tells you is the best investment.
• 1:35
  SPEAKER_02: No research, just vibes.
• 1:38
  SPEAKER_00: I'll put my$1,000 into Snapchat.
• 1:41
  SPEAKER_02: Why?
• 1:42
  SPEAKER_00: Because I'm on it right now, every day.
• 1:45
  SPEAKER_00: My whole friend group is on it right now.
• 1:47
  SPEAKER_00: If a billion people are using something, that basically means a billion people think it's good.
• 1:52
  SPEAKER_00: That's called democracy.
• 1:54
  SPEAKER_02: That is not democracy.
• 1:56
  SPEAKER_00: Well, it's adjacent to democracy.
• 1:58
  SPEAKER_00: I use it every day, check.
• 2:00
  SPEAKER_00: My whole friend group uses it every day, check.
• 2:03
  SPEAKER_00: Has a cool ghost logo, check.
• 2:05
  SPEAKER_00: Everybody can see what I'm up to all day, check.
• 2:08
  SPEAKER_00: And girls respond to my streaks.
• 2:10
  SPEAKER_00: Unconfirmed, but that's basically a check.
• 2:13
  SPEAKER_00: And that's five reasons.
• 2:14
  SPEAKER_00: And that's a lot of reasons because I don't even think scientists get that amount of reasons.
• 2:20
  SPEAKER_01: None of those are business reasons.
• 2:22
  SPEAKER_00: It meant something when I said it.
• 2:24
  SPEAKER_02: That's just sad.
• 2:25
  SPEAKER_02: Not even the Snapchat ghosts could raise that stock from the dead.
• 2:29
  SPEAKER_01: I'm going with Lululemon.
• 2:31
  SPEAKER_02: Why Lululemon?
• 2:32
  SPEAKER_01: Because everyone at my gym wears it.
• 2:34
  SPEAKER_01: It's not just girls, it's guys too.
• 2:37
  SPEAKER_01: That's a growing customer base right there.
• 2:40
  SPEAKER_01: That's business 101.
• 2:42
  SPEAKER_01: Since when do you know business 101?
• 2:44
  SPEAKER_01: Since right now, I feel it entering my brain right now as we speak.
• 2:49
  SPEAKER_01: Every girl at the gym wears it.
• 2:51
  SPEAKER_01: Check.
• 2:51
  SPEAKER_01: Guys are wearing it now too.
• 2:54
  SPEAKER_01: Check.
• 2:54
  SPEAKER_01: Leggings are a top five invention.
• 2:57
  SPEAKER_01: Check.
• 2:58
  SPEAKER_01: I have never seen someone unhappy wearing Lululemon.
• 3:01
  SPEAKER_01: Check.
• 3:02
  SPEAKER_01: This is the safest bet in the building.
• 3:04
  SPEAKER_01: Maybe even in the state.
• 3:06
  SPEAKER_02: That is not the safest bet in the building.
• 3:09
  SPEAKER_02: There is a candle lit under the curtains right now.
• 3:12
  SPEAKER_02: That's safer than this.
• 3:14
  SPEAKER_01: It's popular and practical.
• 3:16
  SPEAKER_01: That's a dream combo.
• 3:18
  SPEAKER_01: It's the Deborah of stocks.
• 3:20
  SPEAKER_02: We'll see.
• 3:22
  SPEAKER_02: I guess maybe you shouldn't have put all your money on leggings.
• 3:26
  SPEAKER_00: Okay, what's the genius picking then?
• 3:29
  SPEAKER_02: An SP 500 index fund.
• 3:31
  SPEAKER_00: That's not even a company.
• 3:33
  SPEAKER_00: That's not even a noun.
• 3:35
  SPEAKER_02: Yeah, correct.
• 3:36
  SPEAKER_02: It's 500 of them.
• 3:38
  SPEAKER_02: All bundled together into one fund so no single one can embarrass you.
• 3:43
  SPEAKER_01: It's so boring though.
• 3:45
  SPEAKER_02: Boring is the whole point.
• 3:48
  SPEAKER_02: I'm not betting on one company being cool forever.
• 3:51
  SPEAKER_02: I'm betting on American business overall continuing to make money.
• 3:56
  SPEAKER_02: Historically, that bet has paid off about 7% overall on average.
• 4:01
  SPEAKER_00: 7% doesn't really sound like a lot.
• 4:04
  SPEAKER_02: It's not supposed to sound exciting.
• 4:06
  SPEAKER_02: It's supposed to be here in 10 years, unlike some of the pics in this room.
• 4:11
  SPEAKER_00: That's so anticlimactic.
• 4:14
  SPEAKER_00: Where's the drama?
• 4:15
  SPEAKER_00: Where's the rush?
• 4:17
  SPEAKER_02: Good investing usually doesn't have a rush.
• 4:20
  SPEAKER_02: That's the whole point.
• 4:22
  SPEAKER_02: Okay, checking in.
• 4:24
  SPEAKER_02: Same$1,000 a year later.
• 4:28
  SPEAKER_02: Let's see where everybody landed.
• 4:30
  SPEAKER_00: Aw shoot.
• 4:30
  SPEAKER_00: It looks like Snapchat's down 30%.
• 4:33
  SPEAKER_00: How is this possible?
• 4:34
  SPEAKER_01: Lululemon is down 53%.
• 4:37
  SPEAKER_02: Oh wow, I'm actually up 11%.
• 4:40
  SPEAKER_00: Wait, being on an app every single day doesn't even count for anything?
• 4:44
  SPEAKER_02: The company still has to turn all of the attention into actual profit.
• 4:48
  SPEAKER_02: Snap has more users than most countries have people, and it still struggles to turn a consistent profit.
• 4:56
  SPEAKER_00: So my loyalty means nothing to them?
• 4:58
  SPEAKER_02: Means nothing.
• 4:59
  SPEAKER_00: And mine?
• 5:01
  SPEAKER_02: Lulemon had a rough year.
• 5:03
  SPEAKER_02: Some of it was outside noise, some of it was internal decisions, new competition, new controversies, some strategy calls that just didn't land.
• 5:14
  SPEAKER_02: The point is, everyone at the gym wears it.
• 5:20
  SPEAKER_01: So popular and practical, it just doesn't matter.
• 5:24
  SPEAKER_02: It's not that it doesn't matter, it's just not the whole story.
• 5:28
  SPEAKER_00: Looks like the boring 1-1.
• 5:30
  SPEAKER_02: Yep.
• 5:31
  SPEAKER_00: I just hate that so much.
• 5:33
  SPEAKER_02: And this isn't new, by the way.
• 5:36
  SPEAKER_02: This happens over and over.
• 5:39
  SPEAKER_02: Blockbuster never adapted to streaming.
• 5:42
  SPEAKER_02: So they're dead.
• 5:43
  SPEAKER_02: Kodak invented the digital camera and buried it to protect film sales.
• 5:49
  SPEAKER_02: They got run over by the thing they invented and hid in a drawer.
• 5:53
  SPEAKER_02: GoPro?
• 5:54
  SPEAKER_02: Great product, but worth nothing.
• 5:57
  SPEAKER_02: It's pennies on the dollar that it used to be worth.
• 6:00
  SPEAKER_00: Wait, GoPro's out of style now?
• 6:03
  SPEAKER_00: I have two.
• 6:04
  SPEAKER_02: Being well known was never the same thing as being a good investment.
• 6:08
  SPEAKER_02: Here's the thing: popularity isn't a red flag exactly.
• 6:13
  SPEAKER_02: It's just not a green light.
• 6:15
  SPEAKER_02: You have to look deeper into it.
• 6:17
  SPEAKER_02: Before you invest a single dollar into a company just because you love the app or you love the product, ask yourself this one question.
• 6:26
  SPEAKER_02: Is that company actually turning your love into profit?
• 6:30
  SPEAKER_02: Or is it just really good at getting people to go on the app?
• 6:33
  SPEAKER_01: So basically, do the boring homework?
• 6:37
  SPEAKER_02: Basically.
• 6:38
  SPEAKER_00: I really thought my streaks would carry me to victory.
• 6:41
  SPEAKER_02: We're troubled to money, and just liking something isn't an investment strategy.
• 6:46
  SPEAKER_01: Well, liking and subscribing to the channel, that's a very good investment.