Latest / Earn Your Leisure / Study Hall: Make Money in Stocks with Wall Street Trapper

Transcript

Study Hall: Make Money in Stocks with Wall Street Trapper · Earn Your Leisure

• 0:00
  Speaker 1: You just realized your business needed to hire someone yesterday.
• 0:04
  Speaker 1: How can you find amazing candidates fast? Easy? Just use Indeed.
• 0:09
  Speaker 1: Stop struggling to get your job posts seen on other
• 0:12
  Speaker 1: job sites. With Indeed sponsored jobs, your post jumps to
• 0:16
  Speaker 1: the top of the page for your relevant candidates, so
• 0:19
  Speaker 1: you can reach the people you want faster. According to
• 0:22
  Speaker 1: Indeed data, sponsored jobs posted directly on Indeed have forty
• 0:26
  Speaker 1: five percent more applications than non sponsored jobs. Don't wait
• 0:30
  Speaker 1: any longer. Speed up your hiring right now with Indeed,
• 0:33
  Speaker 1: and listeners of this show will get a seventy five
• 0:36
  Speaker 1: dollars sponsored job credit to get your jobs more visibility
• 0:39
  Speaker 1: at indeed dot com slash pod Katz thirteen. Just go
• 0:45
  Speaker 1: to Indeed dot com slash pod katz thirteen right now
• 0:50
  Speaker 1: and support our show by saying you heard about Indeed
• 0:53
  Speaker 1: on this podcast. Terms and conditions apply. Hiring Indeed is
• 0:57
  Speaker 1: all you need.
• 0:58
  Speaker 2: What's going on?
• 0:59
  Speaker 3: Earnest Welcome EYL University, the number one place for business education.
• 1:03
  Speaker 2: Shoddy talm what we're.
• 1:04
  Speaker 4: Bringing Yes, EYL University already has over one hundred past
• 1:07
  Speaker 4: webinars from all areas of business. It includes weekly webinars
• 1:11
  Speaker 4: from industry leaders It includes access to our investment Facebook group.
• 1:16
  Speaker 5: Movie club, our book club.
• 1:18
  Speaker 4: It also includes access to monthly financial planning calls with
• 1:21
  Speaker 4: yours truly. But what has been added has access to
• 1:25
  Speaker 4: MG the Mortgage Guys home Buyers Blueprint over fourteen hours
• 1:28
  Speaker 4: everything you need to know as far as the home
• 1:30
  Speaker 4: buying process is concerned. And also what has been added
• 1:34
  Speaker 4: is access to our monthly group chat call. So once
• 1:37
  Speaker 4: a month, Me, Troy and the whole team is going
• 1:40
  Speaker 4: to let you in on our personal plays, our portfolio,
• 1:42
  Speaker 4: what we're doing, and more so all of that, we
• 1:46
  Speaker 4: are running for a special promo code of seventy percent
• 1:50
  Speaker 4: off for limited time only. So hed the Eyluniversity dot
• 1:53
  Speaker 4: com right now and take advantage.
• 1:55
  Speaker 2: Not as works, don't wait, don't hesitate it.
• 1:57
  Speaker 6: We'll see you on the other side.
• 2:00
  Speaker 7: My graduates from my school being forced back drop bag
• 2:05
  Speaker 7: drop mic drop back drop drop.
• 2:18
  Speaker 5: Stock market investing right, talk about it.
• 2:21
  Speaker 4: What is your theory but from buying and holding and
• 2:27
  Speaker 4: day trading, because that's kind of like the two trains
• 2:29
  Speaker 4: of thought and investing. It was like day trading. Anybody's
• 2:31
  Speaker 4: not familiar day trading. That's when you're actually buying a
• 2:33
  Speaker 4: stock and you're trading it in today sometimes like within
• 2:36
  Speaker 4: a couple of minutes, and you're getting your profits. Whereas
• 2:40
  Speaker 4: buying hold, there's more of you're buying and you're holding
• 2:43
  Speaker 4: long term. That long term could be six months, a year,
• 2:45
  Speaker 4: and ten years, twenty five years, but you're not looking
• 2:48
  Speaker 4: to make quick decisions. So what's your theory between buying
• 2:54
  Speaker 4: long term and day trading?
• 2:56
  Speaker 8: Alright, So with buying long term, that's where the wealth
• 3:01
  Speaker 8: is at because when you buy a long term you're
• 3:06
  Speaker 8: not affected by the short term activities that go on
• 3:11
  Speaker 8: in the market, and you can't control that. So because
• 3:15
  Speaker 8: I can't control that, I want to say I'm willing
• 3:21
  Speaker 8: to wait that out.
• 3:23
  Speaker 2: Right, whereas with day trading, it's a high. It's like yo,
• 3:32
  Speaker 2: it just went up.
• 3:34
  Speaker 8: Im about to get this bread and I'm gonna get out.
• 3:38
  Speaker 8: But what people don't tell you about day trade and
• 3:41
  Speaker 8: I have nothing against it because the money in it,
• 3:44
  Speaker 8: but those capital gains taxes that come with it going
• 3:47
  Speaker 8: to eat away at your profit. Right with stock market,
• 3:52
  Speaker 8: With the way that I invest, my goal is to
• 3:56
  Speaker 8: just hold it at least for a year and a day.
• 3:58
  Speaker 4: So all right, let's talk about that capital gains for
• 4:01
  Speaker 4: most people, it's like fifteen percent for every person.
• 4:04
  Speaker 2: Nah, twenty twenty nine, twenty eight.
• 4:07
  Speaker 8: Short term capital gains, Oh yeah, you go, You're gonna
• 4:10
  Speaker 8: go with eighteen.
• 4:11
  Speaker 4: Yeah, because long term capital game is fifteen percent. So yeah,
• 4:13
  Speaker 4: so short term capital gains, yeah, it's higher. So capital
• 4:17
  Speaker 4: gains is when you sell a stock, you gotta pay
• 4:19
  Speaker 4: taxes on that. And as you said, the profit and
• 4:22
  Speaker 4: the short term capital gains is more than long term
• 4:26
  Speaker 4: capital gains, which is an incentive to hold it. And
• 4:28
  Speaker 4: the long term capital gain started a year, right, right,
• 4:30
  Speaker 4: So if.
• 4:30
  Speaker 6: I got I bought a stock one hundred dollars, I
• 4:33
  Speaker 6: made one hundred and fifty. I'm paying a tax on
• 4:34
  Speaker 6: the fifth.
• 4:34
  Speaker 2: You're gonna pay a tax on a fifty.
• 4:36
  Speaker 8: Now, if you hold it for a year and a day,
• 4:39
  Speaker 8: you're only gonna pay about twelve percent. If you hold
• 4:42
  Speaker 8: it for six months, you'll pay about twenty two. So
• 4:46
  Speaker 8: the goal is just and so the goal in building wealth,
• 4:49
  Speaker 8: and it's simply this. It's not about how much money
• 4:52
  Speaker 8: you make, it's about how much you keep.
• 4:54
  Speaker 5: That's the fact.
• 4:56
  Speaker 8: So for me, I want to keep as much as
• 4:58
  Speaker 8: I can. And so if I got a hold it
• 5:02
  Speaker 8: for a year and a day. I'm cool with that.
• 5:04
  Speaker 8: I'm cool with it because I've gained equity in it.
• 5:07
  Speaker 8: And if they're paying divid dandces, I don't got some.
• 5:09
  Speaker 8: I don't got full quarters with the dividends. I mean
• 5:12
  Speaker 8: my bread, I'm good. And that's the part of like
• 5:16
  Speaker 8: trading that people don't talk about.
• 5:18
  Speaker 2: Right.
• 5:18
  Speaker 5: It's like you said, it's not sexy.
• 5:20
  Speaker 4: It ain't sexy, and they want they want short term
• 5:23
  Speaker 4: gratification without you know, being in it for the long haul, right.
• 5:28
  Speaker 4: And the thing about it is that nothing happens overnight, nothing,
• 5:32
  Speaker 4: and you don't. You don't build wealth overnight as well.
• 5:35
  Speaker 4: And it's important. I always tell my climb my financial advice.
• 5:38
  Speaker 4: I tell my clients whole time, you have to you
• 5:40
  Speaker 4: have to diversify, Like you can't put all your eggs
• 5:42
  Speaker 4: in any one basket. Right, You got diversified, so you
• 5:45
  Speaker 4: might have real estate, but it doesn't. It's not healthy
• 5:49
  Speaker 4: to just put every dollar that you have into me now, right.
• 5:51
  Speaker 4: It does. It's common sense for a lot of different reasons.
• 5:55
  Speaker 4: But stocks is a key wealth building tool. It should
• 5:59
  Speaker 4: definitely be part of somebody. Most people are invested in
• 6:01
  Speaker 4: stock market without them even knowing it because of the
• 6:03
  Speaker 4: four one K plan. So dividends, right, because this is
• 6:06
  Speaker 4: something that we haven't covered, and a lot of people
• 6:09
  Speaker 4: have heard of dividends, but they don't fully understand what
• 6:11
  Speaker 4: a dividend is.
• 6:12
  Speaker 5: So what is a dividend?
• 6:13
  Speaker 6: You said, that's one of the strategies you use. Yeah,
• 6:15
  Speaker 6: I love them stocks with it.
• 6:16
  Speaker 8: Yeah, So what happens is dividends are a portion of
• 6:20
  Speaker 8: the profit that companies pay to people who are invested
• 6:23
  Speaker 8: in a business, not the revenue, but the profit. So
• 6:27
  Speaker 8: if I have a business that brings in ten thousand
• 6:30
  Speaker 8: dollars a month and I profit five thousand dollars a month,
• 6:36
  Speaker 8: then out of that five thousand dollars, I'll take a
• 6:39
  Speaker 8: percentage of that, which is called the dividend yield, and
• 6:42
  Speaker 8: I'll pay it to my investors as a part of
• 6:46
  Speaker 8: saying hey, thank you for investing in my business.
• 6:49
  Speaker 6: Is it paid equally or it obviously, depending on how
• 6:52
  Speaker 6: many shares you have, you.
• 6:52
  Speaker 2: Get more not. Yeah, well the dividend is the same.
• 6:56
  Speaker 8: So if I pay fifty cent a ship, everybody, which
• 6:58
  Speaker 8: is two dollars a year, everybody gets that depending on
• 7:03
  Speaker 8: how much you have. If you got five, I have ten,
• 7:06
  Speaker 8: you have fifteen, then we will all get a different amount,
• 7:08
  Speaker 8: but the underlying asset value is the same.
• 7:11
  Speaker 4: So what are what are what are some top companies
• 7:14
  Speaker 4: as far as dividends these days?
• 7:15
  Speaker 2: What are they at?
• 7:17
  Speaker 8: And T pays six that's major now they So this
• 7:25
  Speaker 8: is a dupe part. So we talk about real estate, right,
• 7:29
  Speaker 8: the real estate aspect of the stock market, which is
• 7:32
  Speaker 8: called real estate investment trust, which is a rip, which
• 7:37
  Speaker 8: is saying I can own Walmart as a business, and
• 7:42
  Speaker 8: I can own the people who Walmart pay rent to
• 7:46
  Speaker 8: because they don't own the building, they just own the name.
• 7:50
  Speaker 8: Like Amazon has a warehouse, I can own Amazon, and
• 7:55
  Speaker 8: I can also own the warehouse who pay who Amazon
• 8:00
  Speaker 8: pays the rent to? Rates pay higher dividends. We talking
• 8:05
  Speaker 8: twelve percent, nine percent, seven percent, So individual stocks, uh
• 8:13
  Speaker 8: AT and T Macy's centuryly, Now that's a bad business,
• 8:21
  Speaker 8: but they pay a high dividend.
• 8:23
  Speaker 2: That's what it's called a dividend trap. We're not gonna
• 8:25
  Speaker 2: get into that.
• 8:26
  Speaker 6: How they disperse quarterly, how they disperse.
• 8:28
  Speaker 2: So every business is different.
• 8:29
  Speaker 8: So with a lot of the rates they come out,
• 8:33
  Speaker 8: some of them pay monthly and some Remember I was
• 8:35
  Speaker 8: telling you that I have businesses.
• 8:37
  Speaker 2: One of my businesses is Apple Reality.
• 8:40
  Speaker 8: They own one hundred and twenty eight Schratons and Hilton's
• 8:45
  Speaker 8: and two hundred and something Marriotts. They're not going out
• 8:49
  Speaker 8: of business in the time zoom. But they pay me,
• 8:52
  Speaker 8: I think, at a nine percent rate on their rates
• 8:55
  Speaker 8: and they pay that monthly. So every month they're paying me.
• 8:59
  Speaker 5: So that's not sending the money that you have invested.
• 9:01
  Speaker 8: No, that's nine percent of the stock price. Okay, right,
• 9:04
  Speaker 8: so that's all the dividend yield is. So a dividend
• 9:07
  Speaker 8: yield is this. If the stock price is one hundred
• 9:09
  Speaker 8: dollars and a dividend yield is five percent, then your
• 9:13
  Speaker 8: dividend is five percent of that one hundred dollars.
• 9:16
  Speaker 2: That's what you're getting paid. Okay, that makes sense.
• 9:19
  Speaker 4: It's passive, superpass passive, but you do have to have
• 9:22
  Speaker 4: large amount for it to It's the truth. But you
• 9:25
  Speaker 4: were saying that you have to start looking at it like, okay,
• 9:30
  Speaker 4: just to pay my cell phone?
• 9:32
  Speaker 2: Your freedom?
• 9:33
  Speaker 8: Can you talk about at and T but you So
• 9:36
  Speaker 8: what happened to me was I started asking myself, how.
• 9:40
  Speaker 2: Do I buy back my freedom? Right? Like, how do
• 9:44
  Speaker 2: I buy it back?
• 9:44
  Speaker 8: That's right, because it's not given to you, just like
• 9:49
  Speaker 8: you know, shadow slavery, Like I'm not going to give
• 9:51
  Speaker 8: it to you. You got to buy it back. You gotta
• 9:52
  Speaker 8: fight for it. So I was like, how do I
• 9:55
  Speaker 8: buy back my freedom with the stock market? Because you
• 10:00
  Speaker 8: can't save to investigate it back, right, we know that
• 10:03
  Speaker 8: you can't work a bunch of hours to get it back.
• 10:06
  Speaker 8: So the next best thing for me was dividends. So
• 10:11
  Speaker 8: I was like, Okay, what do I use every day?
• 10:16
  Speaker 8: My phone bill? At and T and I have Apple product.
• 10:22
  Speaker 8: So because AT and T pays a five percent six
• 10:25
  Speaker 8: percent dividend year, I was like, okay, I need this
• 10:28
  Speaker 8: many shares of this business to pay off my phone bill.
• 10:35
  Speaker 2: Every four months.
• 10:37
  Speaker 8: Because AT and T pays quarterly, which is every three months,
• 10:42
  Speaker 8: Disney pays semi annually, which is twice a year, and
• 10:46
  Speaker 8: then you have some businesses that pay every month.
• 10:49
  Speaker 2: Right, So I was like, Okay, if I can get
• 10:52
  Speaker 2: AT and T to pay my.
• 10:54
  Speaker 8: Phone bill through their dividends full times a year, then
• 11:01
  Speaker 8: I have essentially bought back my freedom because I no
• 11:04
  Speaker 8: longer have to work to pay for that phone bill.
• 11:06
  Speaker 2: AT and T paying for me and.
• 11:09
  Speaker 8: So you can do that which your if you're in Georgia,
• 11:14
  Speaker 8: you can use Southern Company, which is another great dividend business.
• 11:18
  Speaker 8: How much is your phone bill and your light buil
• 11:21
  Speaker 8: eighty one hundred dollars? They pay like a three four
• 11:24
  Speaker 8: percent dividend. Figure out how much the dividend is per quarter,
• 11:30
  Speaker 8: how many shares your need of that business, and then.
• 11:34
  Speaker 2: Let that pay your light bail.
• 11:35
  Speaker 8: So if you can give your dividends from a business
• 11:37
  Speaker 8: to pay your light buil and your phone bill, you've
• 11:40
  Speaker 8: bought back some of your freedom because now you can
• 11:42
  Speaker 8: take that money and invest it and do something else
• 11:45
  Speaker 8: with it. That's optimizing your money. The money is just
• 11:49
  Speaker 8: a tool. We know that much. So if we can
• 11:52
  Speaker 8: use the tool to do that it's supposed to do,
• 11:55
  Speaker 8: then we get maximum value for it.
• 11:57
  Speaker 4: And that's so once you fully understand that thing, you
• 12:00
  Speaker 4: start to understand that. It's like Spanish, right, So I
• 12:04
  Speaker 4: don't know how mean Spanish people in New Orleans, but
• 12:06
  Speaker 4: they got half of like seventy percent of New York
• 12:10
  Speaker 4: is Spanish. Maybe not fifty percent, Yeah, fifty percent of
• 12:14
  Speaker 4: New York is Spanish. So I say, I have to
• 12:17
  Speaker 4: say when you're around Spanish enough, you start to understand
• 12:20
  Speaker 4: it a little bit better. Maybe you might not be
• 12:22
  Speaker 4: able to speak it, but you can kind of have
• 12:23
  Speaker 4: a general understanding of Right, the same thing with investing.
• 12:27
  Speaker 4: When you're around the language of investing, it starts to
• 12:30
  Speaker 4: make sense and you realize that they're all kind of similar.
• 12:34
  Speaker 4: It's just like actually when you learn foreign languages, like
• 12:37
  Speaker 4: Spanish is similar to French. They all come from like
• 12:40
  Speaker 4: a Dane. Yeah, they're all kind of similar. I forget
• 12:43
  Speaker 4: where they actually the route came from. But long story
• 12:46
  Speaker 4: short of it is that what you just explained was
• 12:49
  Speaker 4: the same theory that dj MVY explained to us. He
• 12:52
  Speaker 4: says that he doesn't buy any liability until he has
• 12:55
  Speaker 4: an asset to pay for. His thing is real estate,
• 12:57
  Speaker 4: So he buys a home and now he has a
• 12:59
  Speaker 4: home to actually pay rental for his Lamborghini or something
• 13:06
  Speaker 4: like that. Like what I'm saying, So you just bring
• 13:07
  Speaker 4: it down a small level.
• 13:09
  Speaker 6: But because I mean, that's key though, right if you
• 13:11
  Speaker 6: break it out a small level like.
• 13:12
  Speaker 5: Well, yeah, well and then and then also people have
• 13:14
  Speaker 5: to understand too.
• 13:15
  Speaker 4: Is that so people might say, okay, well I got
• 13:17
  Speaker 4: to put two thousand dollars into a stock to get
• 13:20
  Speaker 4: one hundred dollars diffidend, it's not worth it. But the
• 13:23
  Speaker 4: thing about it is that it's not like you're paying
• 13:26
  Speaker 4: for something. You're investing, so that two thousand is going
• 13:28
  Speaker 4: to grow over the course of time while you're getting
• 13:30
  Speaker 4: your diffidends. So it's not like you just putting your
• 13:33
  Speaker 4: money into never ever Land. It's actually going to an
• 13:35
  Speaker 4: investment that will probably gain value over the course of time.
• 13:38
  Speaker 4: But in the meantime, you're actually gaining income that you
• 13:42
  Speaker 4: can use via the dividend. And now you can actually
• 13:45
  Speaker 4: use that to support your lifestyle because, like you said,
• 13:47
  Speaker 4: you got to find a way to actually make money
• 13:51
  Speaker 4: while you're sleep. That's what Warren Buffet said, right. He
• 13:53
  Speaker 4: said it said if you don't make money while you're
• 13:55
  Speaker 4: sleeping works. So by doing that, now you're actually Okay,
• 14:00
  Speaker 4: Now I can, like you said, you can focus on Okay,
• 14:02
  Speaker 4: now I did that. Now I gotta do something to
• 14:04
  Speaker 4: pay all right, I got to pay my mortgage, and
• 14:06
  Speaker 4: I gotta do something to pay my card bill. And
• 14:08
  Speaker 4: then before you know it, you're not actually paying anything yourself.
• 14:12
  Speaker 4: It's all being paid for you, which leaves you more
• 14:15
  Speaker 4: money because that two hundred that now you can actually
• 14:18
  Speaker 4: reinvest and do other things and just kind of like
• 14:20
  Speaker 4: a domino.
• 14:21
  Speaker 6: Fest like Lord said, but it's like yo, I treat
• 14:23
  Speaker 6: money like little soldiers.
• 14:24
  Speaker 2: They have to go work, listen.
• 14:26
  Speaker 8: But also also he's forgetting something that's major, the ownership.
• 14:34
  Speaker 2: Yep, you feel me.
• 14:35
  Speaker 8: So while your money is working for you through the dividends,
• 14:39
  Speaker 8: your ownership, your equity is also increasing. So that's how
• 14:45
  Speaker 8: you like you leverage the game with that.
• 14:47
  Speaker 4: And that's something that people don't understand either. It's like
• 14:49
  Speaker 4: people's like, well, everybody's not an entrepreneur. I don't want
• 14:52
  Speaker 4: to own a business. There's a lot that comes with
• 14:54
  Speaker 4: owning a business. But there's more than one way to
• 14:56
  Speaker 4: own a business. If you buy a stock, you're an owner,
• 14:59
  Speaker 4: and that come that's one that's probably the easiest way
• 15:03
  Speaker 4: to own a business. Now you're not going to be
• 15:07
  Speaker 4: a majority owner, but it doesn't matter, it doesn't you're
• 15:10
  Speaker 4: still an owner.
• 15:11
  Speaker 2: Something better.
• 15:12
  Speaker 8: So Warren Buffett owns six percent of Coca Cola, right,
• 15:18
  Speaker 8: so he's still not a majority owner, but he still
• 15:22
  Speaker 8: has say sol and this is the one thing about
• 15:25
  Speaker 8: the stock market that I love. I still can vote
• 15:29
  Speaker 8: on every business that I own, and they have to
• 15:32
  Speaker 8: acknowledge me, like, I literally bought three shells of brickshot
• 15:36
  Speaker 8: have the way B. Let's make sure I say.
• 15:37
  Speaker 6: That, B.
• 15:39
  Speaker 5: What's what's the add hundred somethings.
• 15:42
  Speaker 2: Go up to one hundred. It's three hundred and some thousand.
• 15:45
  Speaker 2: There's a difference. It's a big difference. So let me
• 15:47
  Speaker 2: say because I don't know nobody to be like, hey man,
• 15:49
  Speaker 2: you gotta you ain't got no man.
• 15:51
  Speaker 4: I heard.
• 15:53
  Speaker 2: Feel it. So I literally bought three shares of Berkshaw
• 15:58
  Speaker 2: b which is.
• 15:59
  Speaker 5: Which is Warren Buffert's companybody.
• 16:01
  Speaker 2: Yes, I bought my daughter. That's another thing.
• 16:04
  Speaker 8: So at three years old, my daughter has five thousand
• 16:06
  Speaker 8: dollars invested in the stock.
• 16:07
  Speaker 5: Oh I want to talk about that? You yeah? Finished.
• 16:09
  Speaker 2: But I bought three shares of Birkshaw Beat so I
• 16:15
  Speaker 2: could go to.
• 16:16
  Speaker 8: The Warren Buffett annual meeting and I had right to
• 16:20
  Speaker 8: vote on anything in Omaha.
• 16:22
  Speaker 2: Yeah, I went to NIPS. That's when everything happened.
• 16:26
  Speaker 8: I'm going next year for show for Shure, and the
• 16:28
  Speaker 8: only way you can go is if you own at
• 16:30
  Speaker 8: least one share, right, So I was like, okay, cool,
• 16:33
  Speaker 8: and you actually get to talk to this man.
• 16:35
  Speaker 4: So I'm glad you said that about your daughter because
• 16:37
  Speaker 4: speaking of Nip. Actually, when we I posted about Nip,
• 16:41
  Speaker 4: you commented on that post for sure about and you
• 16:44
  Speaker 4: were talking about a custodian account for your daughter. So
• 16:47
  Speaker 4: I had put a post up that, like, if you
• 16:49
  Speaker 4: celebrate Christmas or for kids' birthdays, a suggestion is that
• 16:53
  Speaker 4: you know, if you're going to spend two hundred dollars
• 16:56
  Speaker 4: on gifts, maybe spend one hundred dollars on the gifts
• 16:58
  Speaker 4: and one hundred dollars on an anostment.
• 16:59
  Speaker 5: Right, You like, well, how do I do that?
• 17:01
  Speaker 2: So I walk you through that.
• 17:03
  Speaker 5: Yeah, exactly.
• 17:05
  Speaker 8: So it's basically, I don't buy my daughter toys at all,
• 17:11
  Speaker 8: I told her mom, And I'm like, listen, I'll buy clothes,
• 17:14
  Speaker 8: i'll buy food, I'll buy necessities, but everything else I'm
• 17:18
  Speaker 8: buying stocks. So just walking it's called a UGMA account,
• 17:23
  Speaker 8: it's a custodial com I use TDM ror Trade and
• 17:26
  Speaker 8: all you're doing is is just like opening up a
• 17:28
  Speaker 8: bank account, and you'll just add your kid to it.
• 17:32
  Speaker 8: And what happens is you have actual control of the
• 17:36
  Speaker 8: account until the kid is eighteen. Once the kid makes eighteen,
• 17:43
  Speaker 8: then they have control. My thing is simple, and so
• 17:47
  Speaker 8: this is how we shift the dynamics, Like that's this
• 17:50
  Speaker 8: ownership stuff is real powerful to me.
• 17:53
  Speaker 2: My daughter is three and I invest money for her.
• 17:57
  Speaker 8: Monthly weekly right Right now, my daughter at three can
• 18:01
  Speaker 8: tell you what assets and liabilities are.
• 18:03
  Speaker 2: These is a conversation that we have.
• 18:05
  Speaker 8: Right she knows I said what dividends come from, She'll say,
• 18:08
  Speaker 8: dividends come from shells.
• 18:09
  Speaker 2: She'll say that.
• 18:10
  Speaker 8: By the time she's eighteen, she'll already be six figures
• 18:17
  Speaker 8: her own network.
• 18:19
  Speaker 2: That's powerful. That's a whole nother dynamic.
• 18:23
  Speaker 8: We've put her in position to have privileged opportunities.
• 18:28
  Speaker 2: Right.
• 18:29
  Speaker 8: Also, we've now established to her the importance of ownership.
• 18:37
  Speaker 5: Right.
• 18:37
  Speaker 8: So what happened with us when we was kids, I
• 18:39
  Speaker 8: don't know about y'all. When I was kids, money was
• 18:41
  Speaker 8: always scarce, like we ain't gonna money for that.
• 18:44
  Speaker 2: We got bills, right, you know.
• 18:47
  Speaker 8: But now at three, she can talk to me about
• 18:51
  Speaker 8: Disney stoff.
• 18:53
  Speaker 2: You know what I'm saying. So for me, that's what
• 18:55
  Speaker 2: I do.
• 18:55
  Speaker 8: Everything we do right now, her account, I think she
• 18:57
  Speaker 8: had like fifty five hundred because I've been buying these
• 19:00
  Speaker 8: weed stocks since they've been on sale and I bought
• 19:02
  Speaker 8: some for her.
• 19:03
  Speaker 2: Can it be growth?
• 19:05
  Speaker 3: What was the name of the account at the bank,
• 19:07
  Speaker 3: the type of account, It's called a custodial account, but
• 19:10
  Speaker 3: when you look it up on the TD Amelitrade, it's
• 19:12
  Speaker 3: going to be called U G and me.
• 19:14
  Speaker 6: Can it go through? I know you said TD Melitarde,
• 19:16
  Speaker 6: but I'll do it. Is it all through other banks
• 19:17
  Speaker 6: as well?
• 19:18
  Speaker 1: Well?
• 19:18
  Speaker 2: I went through.
• 19:19
  Speaker 8: You can go through Fidelity, Charles Swab most of them have.
• 19:24
  Speaker 4: Yeah, they have account. They have five twenty nine, which
• 19:28
  Speaker 4: is a college savings plan a couple of different ways.
• 19:30
  Speaker 8: I don't like the five twenty nine. Why not because
• 19:32
  Speaker 8: it's boxed in. That's true, it's boxed and just you
• 19:35
  Speaker 8: have to use vocal.
• 19:36
  Speaker 4: Well, they actually changed it with the new tax law
• 19:38
  Speaker 4: and now you canay any form of education.
• 19:40
  Speaker 5: Okay, it don't have to be used. Yeah yeah, yeah, yeah,
• 19:43
  Speaker 5: you get penalized.
• 19:44
  Speaker 8: And so with the with the custodio account, she used
• 19:48
  Speaker 8: for whatever she wants at eighteen.
• 19:50
  Speaker 2: So that's why it's good for you. Now you can
• 19:52
  Speaker 2: build that conversation.
• 19:54
  Speaker 8: That's why it's good for us to learn how to
• 19:55
  Speaker 8: invest because our kids are going to do what they
• 19:59
  Speaker 8: see us doing. That's just a natural fact. We all
• 20:01
  Speaker 8: are creatures of our environment.
• 20:03
  Speaker 2: It is what it is.
• 20:05
  Speaker 8: So we start having these conversations with them at a
• 20:07
  Speaker 8: young age. Like her favorite book right now is a
• 20:10
  Speaker 8: book called the Evolution of Money.
• 20:12
  Speaker 2: Right, she'd be like that, let's read the Evolution of
• 20:14
  Speaker 2: Money right and three.
• 20:17
  Speaker 5: You know what I'm trying to read. Yeah, yeah, I'm
• 20:19
  Speaker 5: trying to figure out.
• 20:21
  Speaker 3: We walked through this as a parent, I'm in educating
• 20:27
  Speaker 3: my son is thest five and these.
• 20:30
  Speaker 2: What I mean? She read?
• 20:31
  Speaker 8: She she I will say this she identifies words, all right, Okay, so.
• 20:35
  Speaker 2: I'm not gonna say like she likes Yeah, I'm not
• 20:37
  Speaker 2: gonna say like she on some dougie.
• 20:41
  Speaker 4: She identifies words now, But that's shouldn't be powerful, like
• 20:44
  Speaker 4: you said, because the parents have to leave it by example.
• 20:46
  Speaker 5: You have to if you don't have an example for.
• 20:48
  Speaker 2: You, Ernest, what's up?
• 20:50
  Speaker 3: You ever walk into a small business and everything just works,
• 20:53
  Speaker 3: like the checkout is fast, the receipts of digital tipping
• 20:57
  Speaker 3: is a breeze, and you're out the door before the
• 20:59
  Speaker 3: line of builds. Odds are they're using Square? We love
• 21:04
  Speaker 3: supporting businesses that run on Square because it just feels seamless.
• 21:07
  Speaker 3: Whether it's a local coffee shop, a vendor at a
• 21:10
  Speaker 3: pop up market, or even one of our merch partners,
• 21:13
  Speaker 3: Square makes it easy for them to take payments, manage inventory,
• 21:16
  Speaker 3: and run their business with confidence, all from one simple system.
• 21:21
  Speaker 3: If you're a business owner or even just thinking about
• 21:24
  Speaker 3: launching something soon, Square is hands down one of the
• 21:27
  Speaker 3: best tools out there to help you start, run and grow.
• 21:30
  Speaker 3: It's not just about payments, it's about giving you time
• 21:33
  Speaker 3: back so you can focus on what matters most Ready
• 21:36
  Speaker 3: to see how Square can transform your business, visit Square
• 21:40
  Speaker 3: dot com backslash, go backslash eyl to learn more that
• 21:45
  Speaker 3: Square dot com backslash, go backslash eyl. Don't wait, don't hesitate.
• 21:50
  Speaker 3: Let's Square handle the back end so you can keep
• 21:53
  Speaker 3: pushing your vision forward. This episode is brought to you
• 21:59
  Speaker 3: by P and C Bank. A lot of people think
• 22:01
  Speaker 3: podcasts about work are boring, and sure, they definitely can be,
• 22:05
  Speaker 3: but understanding a professionals routine shows us how they achieve
• 22:09
  Speaker 3: their success little by little, day after day. It's like
• 22:13
  Speaker 3: banking with P and C Bank. It might seem boring
• 22:16
  Speaker 3: to safe plan and make calculated decisions with your bank,
• 22:19
  Speaker 3: but keeping your money boring is what helps you live
• 22:22
  Speaker 3: a more happily fulfilled life. P and C Bank Brilliantly
• 22:26
  Speaker 3: Boring since eighteen sixty five. Brilliantly Boring since eighteen sixty
• 22:30
  Speaker 3: five is a service mark of the PNC Financial Service Group, Inc.
• 22:34
  Speaker 3: P and C Bank National Association Member FDIC.
• 22:40
  Speaker 1: You just realized your business needed to hire someone yesterday.
• 22:44
  Speaker 1: How can you find amazing candidates fast? Easy? Just use
• 22:48
  Speaker 1: Indeed stop struggling to get your job posts seen on
• 22:52
  Speaker 1: other job sites. With Indeed sponsored jobs, your post jumps
• 22:56
  Speaker 1: to the top of the page for your relevant candidates,
• 22:58
  Speaker 1: so you can reach the people you want faster. According
• 23:01
  Speaker 1: to Indeed data, sponsored jobs posted directly on Indeed have
• 23:05
  Speaker 1: forty five percent more applications than non sponsored jobs. Don't
• 23:09
  Speaker 1: wait any longer, speed up your hiring right now with Indeed,
• 23:13
  Speaker 1: and listeners of this show will get us seventy five
• 23:16
  Speaker 1: dollars sponsored job credit to get your jobs more visibility
• 23:19
  Speaker 1: at indeed dot com slash pod Katz thirteen. Just go
• 23:25
  Speaker 1: to Indeed dot com slash pod Katz thirteen right now
• 23:30
  Speaker 1: and support our show by saying you heard about Indeed
• 23:32
  Speaker 1: on this podcast, terms and conditions apply. Hiring indeed is
• 23:37
  Speaker 1: all you need get.
• 23:38
  Speaker 4: Kids, then they're going to get the example just from
• 23:41
  Speaker 4: pop culture, world music, world streets.
• 23:43
  Speaker 5: Like you know what I mean.
• 23:44
  Speaker 4: So it's extremely important. And like I said, it's just
• 23:48
  Speaker 4: seeing different people in different conversations, and it's like that's
• 23:52
  Speaker 4: one of the cool things about this podcast. It's like
• 23:55
  Speaker 4: we have these conversations and if it's like we could
• 24:00
  Speaker 4: be like people on the basketball court or just you
• 24:02
  Speaker 4: know what I mean, like, but we're actually talking about
• 24:05
  Speaker 4: things that are really important, you know what I'm saying.
• 24:07
  Speaker 4: So it's like a cool feel because it's not stuck up,
• 24:10
  Speaker 4: it's not fake, it's not phony, it's natural. And a
• 24:13
  Speaker 4: lot of times until yeah, people feel like they have
• 24:15
  Speaker 4: to like dumb themselves down to be accepted or you can't.
• 24:20
  Speaker 4: You got to watch how you speak because you don't
• 24:21
  Speaker 4: want to sound too intelligent.
• 24:23
  Speaker 5: Right, these things is real.
• 24:27
  Speaker 4: I'm glad that that I think that the tide is
• 24:29
  Speaker 4: starting to turn on that it is.
• 24:31
  Speaker 8: I actually like I love the the temperature that's going
• 24:36
  Speaker 8: on right now, just with even with you all, you know,
• 24:40
  Speaker 8: I'm like, bro, like y'all, y'all shifting the culture with this.
• 24:43
  Speaker 8: Appreciate you know what I'm saying, because there are a
• 24:46
  Speaker 8: lot of podcasts out there, right, everybody.
• 24:49
  Speaker 2: Everybody has something to say. It's a fact.
• 24:52
  Speaker 5: That's a fact.
• 24:53
  Speaker 8: Right, Everybody has something to say and they want to
• 24:55
  Speaker 8: say it in their own unique way. What I love
• 24:58
  Speaker 8: about y'all have it. However, you're gonna come speak speak it.
• 25:04
  Speaker 8: You feel what I'm saying like, there is no Hey,
• 25:07
  Speaker 8: we can't like whatever you want to speak about. But
• 25:10
  Speaker 8: it's all about the improvement of the culture. As far
• 25:14
  Speaker 8: as you know financial literacy, and I know you was
• 25:17
  Speaker 8: in the finance.
• 25:18
  Speaker 2: Bro, so that's a whole nother life.
• 25:20
  Speaker 6: Next, right, the ownership ownership, Right, nobody's telling the right.
• 25:24
  Speaker 6: Make sure y'all cover this bay. We're gonna put the cameras.
• 25:28
  Speaker 6: Werena go hard speaking, right, it's problem man.
• 25:31
  Speaker 2: I remember you posted something.
• 25:33
  Speaker 8: You said something about ownership, something to be posted like recently,
• 25:37
  Speaker 8: and I love when you post certain stuff because I
• 25:41
  Speaker 8: can come in there and just go harder. Right, I'll
• 25:43
  Speaker 8: be waiting, like, come on, man, come with it. Like so,
• 25:46
  Speaker 8: and somebody complained about you talk. It was about taxes,
• 25:52
  Speaker 8: and I said, the problem is that because somebody said,
• 25:56
  Speaker 8: why don't they.
• 25:57
  Speaker 5: Teach you the wealthiest people?
• 26:00
  Speaker 8: Yeah, And so I was like, yo, why would they
• 26:04
  Speaker 8: teach us this in school?
• 26:06
  Speaker 2: It's not that they should teach us. Why would they? Right,
• 26:11
  Speaker 2: So this is a dope analogy that I always use.
• 26:15
  Speaker 8: So we know that the lion is at the top
• 26:18
  Speaker 8: of the food chain, right, So he's not the king
• 26:21
  Speaker 8: of the jungle, like we feel like that's some bullshit. Right,
• 26:23
  Speaker 8: here's in a Safaris so I'm not gonna say that shit.
• 26:26
  Speaker 8: But he's at the top of the food chain. The
• 26:30
  Speaker 8: lion cannot tell the zebra, the impilor.
• 26:36
  Speaker 2: Or the water buffalo how to get away. He can't.
• 26:40
  Speaker 2: If I tell you how to get away? What do
• 26:43
  Speaker 2: I eat? What do I eat?
• 26:46
  Speaker 8: Either I become a vegetarian or I eat my own kind? Right,
• 26:52
  Speaker 8: So he can't and if he did, they would tell
• 26:55
  Speaker 8: one another how to get away.
• 26:58
  Speaker 2: Same thing with this the upper echelon or.
• 27:03
  Speaker 8: The financial predators, we are the financial prey. I can't
• 27:09
  Speaker 8: teach you how to get away, but if you learn,
• 27:11
  Speaker 8: I can't stop you. I can't stop you.
• 27:16
  Speaker 2: Wealthy people don't meet wealthy people. Rich poor people do. Fact,
• 27:21
  Speaker 2: because we.
• 27:22
  Speaker 8: Have no relationship with money. So I can't teach you
• 27:25
  Speaker 8: how to get away and what I'm gonna do. But
• 27:27
  Speaker 8: I'm gonna teach my kids how to be predators. And
• 27:29
  Speaker 8: I'm teaching my daughter how to be a predator, not
• 27:31
  Speaker 8: on people, but just how to have ownership.
• 27:34
  Speaker 2: They can't teach you that in school.
• 27:36
  Speaker 4: Why what they Yeah, that's like, yeah, that's what. That's
• 27:39
  Speaker 4: what the five percenters say, like eighty five percents by tempercent,
• 27:43
  Speaker 4: which is like the bloodsuckers are the poor and the
• 27:45
  Speaker 4: five percent the poor righteous teachers. But we're not poor,
• 27:49
  Speaker 4: but we.
• 27:50
  Speaker 2: Right facts, we're gonnaerate that.
• 27:54
  Speaker 4: We're gonna take the poor part out that because like that,
• 27:56
  Speaker 4: we we're gonna even pay the full like that, you know,
• 28:00
  Speaker 4: because yeah, we're gonna We're gonna liberate the people from
• 28:02
  Speaker 4: the bloodsuckers of the poor for.
• 28:04
  Speaker 5: Sure, for the facts.
• 28:05
  Speaker 2: Appreciate that.
• 28:06
  Speaker 6: Can we just talk about investing in ETFs.
• 28:08
  Speaker 8: Let's talk about so explain Can you explain what the
• 28:11
  Speaker 8: ETF is and then how so ETF is an exchange
• 28:15
  Speaker 8: traded fund, So it's basically this is this is so
• 28:19
  Speaker 8: all my people tell me, like I just had the
• 28:20
  Speaker 8: dopest analogies, bro, Like I come up with them because
• 28:22
  Speaker 8: I love to relate to people. Right, So ETF is
• 28:25
  Speaker 8: like saying this without even getting technical. Let's say you're
• 28:27
  Speaker 8: going Walmart. Right, You're going Walmart, and you don't know
• 28:31
  Speaker 8: what you want to buy, so you buy the whole store.
• 28:35
  Speaker 2: That's an index fund.
• 28:37
  Speaker 8: Let's say you go to Walmart and you want to
• 28:39
  Speaker 8: buy a specific kind of pop tarts. Right, so you
• 28:43
  Speaker 8: go to the pop tart our and you see so
• 28:45
  Speaker 8: many flavors of pop tarts. You're like, you know what,
• 28:47
  Speaker 8: I just want this whole hour of pop tarts, So
• 28:50
  Speaker 8: you buy the whole out of pop tarts.
• 28:52
  Speaker 2: That's the ETF. Doesn't make sense. So what the ETF is.
• 28:56
  Speaker 8: It's a group of businesses that operate the same or
• 28:59
  Speaker 8: self simuli products. Example, you want to invest in marijuana,
• 29:03
  Speaker 8: but you don't know which marijuana stock to buy. You
• 29:06
  Speaker 8: buy either a marijuana ETF called YOLO, or you buy
• 29:10
  Speaker 8: MJ And now at this point you have.
• 29:11
  Speaker 2: All the marijuana stocks. They're all onside. That's an ETF.
• 29:14
  Speaker 8: Gotcha A trick to that is this, You can buy
• 29:18
  Speaker 8: ETF and because they've already done the homework, because they
• 29:21
  Speaker 8: gonna have the best performance stocks in the ETF. At
• 29:23
  Speaker 8: that point, you can see you can go to what's
• 29:26
  Speaker 8: called ETF dB, which is ETF database.
• 29:29
  Speaker 2: I'm giving y'all some game, right, good, Like, you go.
• 29:31
  Speaker 8: To ETF database, you put that ETF in and they'll
• 29:34
  Speaker 8: tell you every ETF that's in the ETF, and then
• 29:37
  Speaker 8: they'll tell you how much of a percentage of that
• 29:40
  Speaker 8: ETF is holding that business. So it'll say this ETF
• 29:45
  Speaker 8: has fifteen percent of cannopy growth. I mean for every
• 29:49
  Speaker 8: dollar you put enough, fifteen percent of that is going
• 29:50
  Speaker 8: to cannopy growth. It may have ten percent of Aurora cannabis.
• 29:54
  Speaker 8: It may have five percent of chromes. So you can
• 29:57
  Speaker 8: literally say, Okay, I don't want to do the homework.
• 29:59
  Speaker 8: I want to be I'll go to the ETF, see
• 30:02
  Speaker 8: what's one they hold, and just pick the top companies
• 30:03
  Speaker 8: in the ETF. And at that point you went, Now,
• 30:06
  Speaker 8: you don't know the value of it. That's why that's
• 30:08
  Speaker 8: what I teach people about value, how to value it.
• 30:10
  Speaker 8: But if you just want to be a lazy investor,
• 30:12
  Speaker 8: you can all you can just do that because ETF
• 30:14
  Speaker 8: is gonna have the top performing businesses in that sector
• 30:16
  Speaker 8: inside the ETF, and you just picked.
• 30:18
  Speaker 5: That and indexed funds.
• 30:21
  Speaker 8: So index funds would be you buying a whole market.
• 30:24
  Speaker 8: Now they are broken down different ways. So you can
• 30:29
  Speaker 8: buy the Dial Jones, you can buy the S and
• 30:33
  Speaker 8: P five hundred, these are indexes as well. Yeah, you
• 30:35
  Speaker 8: can buy a Nastak, you can buy the Rustle two thousand,
• 30:38
  Speaker 8: which are the full majors. Then you can break it
• 30:42
  Speaker 8: down and say, okay, I just want to get a
• 30:44
  Speaker 8: large cap ETF. So that's all businesses that have one billion,
• 30:50
  Speaker 8: two billion are better, right, so every business in here
• 30:54
  Speaker 8: is going to be two billion dollars or better ten billion.
• 30:56
  Speaker 8: I'm sorry, ten billion are better. Then you can buy
• 30:59
  Speaker 8: a mi cap, which businesses that stop at two billion.
• 31:03
  Speaker 8: And then you can buy a small cap, which is
• 31:05
  Speaker 8: businesses under two billion, two billion dollars worth under two
• 31:08
  Speaker 8: billion dollars market cap.
• 31:09
  Speaker 4: Yeah, the market cap, so market capitalization, that's kind of
• 31:14
  Speaker 4: how they categorize stop.
• 31:15
  Speaker 2: Yeah.
• 31:16
  Speaker 4: And I always like the analogy that I use is
• 31:18
  Speaker 4: like you have giant cap large cap.
• 31:21
  Speaker 5: Those are like you know, giant companies hundred billion better.
• 31:25
  Speaker 4: Yeah, Then you have you know, mid cap, then you
• 31:27
  Speaker 4: have a small cap, and you have micro cap. So
• 31:30
  Speaker 4: the thing is that usually and correct me if I'm wrong.
• 31:34
  Speaker 4: The larger the cap, the less volatile, Like it's almost
• 31:37
  Speaker 4: impossible for Apple to just fall apart overnight, and they're
• 31:40
  Speaker 4: also not going to quad droople over night either, where
• 31:42
  Speaker 4: a smaller company, good news can send their stocks skyrocketing,
• 31:46
  Speaker 4: but then bad news can bankrupt them. So it's kind
• 31:48
  Speaker 4: of like a speedboat and a cruise ship, like a
• 31:52
  Speaker 4: we work situation.
• 31:55
  Speaker 8: We got to talk about we work. We can talk
• 31:57
  Speaker 8: about we work. But that's called beta. What you're talking
• 32:01
  Speaker 8: about the volatility. So if you're going to invest in
• 32:03
  Speaker 8: the stock, you can look at the beta of it.
• 32:05
  Speaker 8: A low beta means it's not volatile. A high beta
• 32:09
  Speaker 8: means like Tesla, high beta, high risk.
• 32:11
  Speaker 2: High reward, right.
• 32:13
  Speaker 8: But McDonald's probably a beta of zero point nine, right,
• 32:18
  Speaker 8: So it's not gonna you know, it's not like you're
• 32:20
  Speaker 8: not about the week. Up to day, McDonald's is at
• 32:22
  Speaker 8: two thirty and tomorrow tomorrow is at one fifty. That's
• 32:25
  Speaker 8: not about app But with Tesla you'll wake up today's
• 32:28
  Speaker 8: at to fifty.
• 32:29
  Speaker 2: Tomorrow you can wake up.
• 32:30
  Speaker 8: Is that one to eighty easy, right, So high beta
• 32:34
  Speaker 8: and the market cap is just simply this. If I
• 32:37
  Speaker 8: have ten shares of my business on the stock market,
• 32:41
  Speaker 8: and there were ten dollars a share at that point.
• 32:44
  Speaker 8: I have one hundred dollars market cap. So it's how
• 32:46
  Speaker 8: many outstanding shares on the market times of stock price,
• 32:50
  Speaker 8: that's how much. That's how you can tell what the
• 32:52
  Speaker 8: market cap is of a business.
• 32:53
  Speaker 5: Can we talk about that? We work situation.
• 32:55
  Speaker 2: Let's talk about it.
• 32:56
  Speaker 4: So, yeah, if anybody's not familiar, we work was the
• 33:00
  Speaker 4: talk of Wall Street.
• 33:01
  Speaker 5: It was IPO. They were the most.
• 33:03
  Speaker 2: Valuable forty five billions coming in at forty.
• 33:06
  Speaker 5: Five something.
• 33:09
  Speaker 4: And they fell apart and now they had to withdraw
• 33:14
  Speaker 4: their IPO. The CEO got fired, stepped down, step down,
• 33:18
  Speaker 4: he lost his billionaire status.
• 33:20
  Speaker 2: Yes, so today in a day.
• 33:23
  Speaker 4: So a lot of times people see these stories, they
• 33:25
  Speaker 4: don't fully understand, like how is this possible?
• 33:27
  Speaker 5: Like what's your take on that?
• 33:29
  Speaker 8: Well, so shout my people house on the two one six.
• 33:33
  Speaker 8: She had me one day, cousin Nita. She hit me
• 33:36
  Speaker 8: and she was like travel shout out, it's my heart
• 33:39
  Speaker 8: right there. She hit me up on that.
• 33:41
  Speaker 2: She was like, trapper man, I won't invest and we
• 33:43
  Speaker 2: were I said, oh no, you not know you not.
• 33:48
  Speaker 2: She was like why. I was like, man, these people
• 33:50
  Speaker 2: don't make money.
• 33:51
  Speaker 8: So one of the things I love about the stock
• 33:53
  Speaker 8: market is it literally teaches you how to be a
• 33:55
  Speaker 8: businessman or a woman because you look at businesses all day.
• 34:00
  Speaker 2: Right, so they're not profitable.
• 34:04
  Speaker 5: Well, a lot of companies aren't finish off.
• 34:06
  Speaker 8: So they aren't profitable and they don't have the revenue
• 34:12
  Speaker 8: to back it up. So like, not only aren't they
• 34:15
  Speaker 8: so you can actually not be profitable but still have
• 34:17
  Speaker 8: a lot of revenue Netflix, you know what I'm saying,
• 34:20
  Speaker 8: but Uber or Uber, but they aren't profitable and they
• 34:25
  Speaker 8: don't have the revenue coming in. And it's so when
• 34:29
  Speaker 8: I invest in the business, I look at this. I
• 34:32
  Speaker 8: always looked at the inverse, meaning if something bad happens,
• 34:37
  Speaker 8: how likely is it for this stock to fall?
• 34:41
  Speaker 2: So we know we work.
• 34:42
  Speaker 8: It's based off of entrepreneurial space, right, so they rent
• 34:45
  Speaker 8: space to entrepreneurs. So I looked at it like this,
• 34:48
  Speaker 8: they already are not profitable if something happens as far
• 34:52
  Speaker 8: as recession wise, well, entrepreneurs rather come sit in the
• 34:57
  Speaker 8: room at their own house and a table and do
• 34:59
  Speaker 8: work and not pay that rent or would they still
• 35:02
  Speaker 8: pay that rent? He probably would cut that rent out.
• 35:05
  Speaker 8: So that business model isn't to me. It wasn't something
• 35:09
  Speaker 8: that has a lot of longevity in it. Now, dude
• 35:13
  Speaker 8: was a bad seal with a great idea though, But
• 35:18
  Speaker 8: when he got the bread, he just was on some
• 35:21
  Speaker 8: wild and he was on he was some party city
• 35:26
  Speaker 8: wolf of Wall Street off the butchees.
• 35:33
  Speaker 2: I inventioned.
• 35:34
  Speaker 8: Yeah, he had a lot going on and he didn't
• 35:37
  Speaker 8: want he didn't want up it.
• 35:39
  Speaker 2: But once, so this is the thing.
• 35:41
  Speaker 8: Once somebody who's a major investor said, yo, I'm pulling
• 35:44
  Speaker 8: my bread soft bank, which is up.
• 35:47
  Speaker 2: Yeah.
• 35:48
  Speaker 8: Once they're like, I'm pulling my bread, you know, like
• 35:50
  Speaker 8: do it on the wrong level. He living his life wrong.
• 35:52
  Speaker 8: Now other major investors are like, wait a minute, I'm
• 35:57
  Speaker 8: gonna pull my bread to that even that ship.
• 35:59
  Speaker 1: Ye.
• 36:00
  Speaker 2: And so now the people nobody wants to get stuck
• 36:02
  Speaker 2: hold in the bag. So the next biggest thing is
• 36:04
  Speaker 2: do you gotta go. We don't want you to go,
• 36:07
  Speaker 2: but you gotta step down because we need another face. Right.
• 36:11
  Speaker 8: And so he was stubborn for a while, like nah,
• 36:13
  Speaker 8: because he made the business. You know, it's harf you
• 36:16
  Speaker 8: let your baby go, because even if you step down,
• 36:19
  Speaker 8: you know what's coming next the ship be thinking. So
• 36:24
  Speaker 8: I just thought it was a.
• 36:25
  Speaker 2: Bad business as a whole out They get what you
• 36:28
  Speaker 2: think about.
• 36:29
  Speaker 4: I think that it has potential because there's a lot
• 36:33
  Speaker 4: of coworking, is one.
• 36:36
  Speaker 5: Yeah, like actualpeak back the night, back there the night.
• 36:43
  Speaker 4: It's interesting what you said as far as economic downturn,
• 36:47
  Speaker 4: because I was gonna ask you about the recession or
• 36:48
  Speaker 4: people saying it's to come to be a recession. It's interesting.
• 36:51
  Speaker 4: I never really thought about that from that understand point.
• 36:53
  Speaker 4: But it makes a lot of sense as far as
• 36:55
  Speaker 4: to say, Okay, if if worst comes the worst, I'll
• 36:57
  Speaker 4: just stay in my living room, right, I don't have
• 36:59
  Speaker 4: to you know, if you're going to offer you don't
• 37:02
  Speaker 4: have to have an office. Nah, if you're doing that
• 37:05
  Speaker 4: right because other than like holding meetings which you just pay.
• 37:09
  Speaker 3: Zoom yeah or so I'm invested this, it's just not sustainable, right,
• 37:13
  Speaker 3: Like I might not have meetings every day of every month.
• 37:17
  Speaker 4: I think people are working differently now too. It's kind
• 37:20
  Speaker 4: of a whole business model to actually go and like
• 37:21
  Speaker 4: I have a office I probably go to like once
• 37:23
  Speaker 4: a week.
• 37:23
  Speaker 2: Exactly.
• 37:25
  Speaker 5: You don't need to physically go into an office.
• 37:27
  Speaker 6: Like and you're them once a week. But you know
• 37:29
  Speaker 6: what I'm saying, Like, what's the point.
• 37:31
  Speaker 8: It's not you may go just to like clear your mind.
• 37:34
  Speaker 8: I'm just going, yeah, let me go ahead. But yeah,
• 37:37
  Speaker 8: you don't need it, you're right. So that's what that's
• 37:39
  Speaker 8: what I thought about it. Now the bad part some
• 37:44
  Speaker 8: of some of them are actually profitable. So at that point,
• 37:48
  Speaker 8: the whole dynamic of the business changes because if you're
• 37:51
  Speaker 8: a profitable business in an economic downturn, So now we're
• 37:55
  Speaker 8: gonna tap into something that's deeper called free cash flow. Right,
• 37:59
  Speaker 8: So this this is the money that a business has
• 38:01
  Speaker 8: that's not attached to anything. So after they pay the
• 38:04
  Speaker 8: bills and after they pay everything, they still have this.
• 38:07
  Speaker 8: Or Apple is like one of the has the biggest,
• 38:11
  Speaker 8: Like yo, they free cast is like crazy million, it's
• 38:14
  Speaker 8: like one hundred and ninety billion. So what happens is
• 38:18
  Speaker 8: in case of an economic downturn, they still have money
• 38:24
  Speaker 8: to keep the business going. If you a profitable business
• 38:29
  Speaker 8: and you have a good free cash flow, you can
• 38:30
  Speaker 8: still sustain for a given amount of time.
• 38:34
  Speaker 2: But if you're a negative all around the board, you're
• 38:37
  Speaker 2: going to collapse. And so for me, that's something I
• 38:39
  Speaker 2: look for in a business.
• 38:40
  Speaker 8: I need you to have a mote, which is a
• 38:45
  Speaker 8: competitive advantage, and I need you to have a good
• 38:49
  Speaker 8: like free cast floor.
• 38:50
  Speaker 2: I need that to be positive.
• 38:51
  Speaker 4: So when you look at a business, what are you
• 38:52
  Speaker 4: looking at? You're looking at their earning report? Do you like?
• 38:56
  Speaker 5: What do you actually look at? How do you evaluate
• 38:59
  Speaker 5: what a right?
• 39:00
  Speaker 8: So I look for a few things like so it's
• 39:03
  Speaker 8: like me looking at a woman no to nobody, like,
• 39:06
  Speaker 8: I don't want nobody to say right. So you have
• 39:10
  Speaker 8: what you look for, and then you have what's there right,
• 39:16
  Speaker 8: and then you ask yourself, how does this fit to
• 39:19
  Speaker 8: what I want?
• 39:21
  Speaker 2: Right? So what I do is I look at The
• 39:22
  Speaker 2: first thing I look at is this.
• 39:23
  Speaker 8: I never look at the stock price because the stock
• 39:26
  Speaker 8: price is only based on how you and I feel
• 39:29
  Speaker 8: about it, right, So first thing I look at who
• 39:32
  Speaker 8: running a business? And I put this on my page
• 39:34
  Speaker 8: all the time. How a person runs a business tells
• 39:38
  Speaker 8: me a lot about the business because if you can't man,
• 39:41
  Speaker 8: if you can't run the business, I can't make no money.
• 39:44
  Speaker 8: So I'm gonna look at when did you get into
• 39:47
  Speaker 8: a position of the CEO? How did the business run
• 39:50
  Speaker 8: before you? And what have you done since you got
• 39:53
  Speaker 8: taken control of the business. That's first and foremost, So
• 39:57
  Speaker 8: I won't look at management first. The next thing I'm
• 40:00
  Speaker 8: gonna look at is do you have a competitive EDG right?
• 40:04
  Speaker 8: So like, what makes you better than everybody else? What
• 40:06
  Speaker 8: makes you sustainable? So, for instance, if you bought Coca Cola,
• 40:11
  Speaker 8: so you have to ask yourself this. If you're a
• 40:14
  Speaker 8: retail business, what does your shelf domination look like? How
• 40:20
  Speaker 8: do you dominate the shells? So if you go into sodas,
• 40:26
  Speaker 8: Coca Cola dominates. But if you look at the overall business,
• 40:30
  Speaker 8: Pepsi does. Pepsi has more products, But if you look
• 40:34
  Speaker 8: in that sheer beverages, Coca Cola dominates. Even when you
• 40:40
  Speaker 8: go to a fast food store, they're predominantly coke products.
• 40:47
  Speaker 5: One of those things where they coined the names like coke.
• 40:49
  Speaker 2: Coke, and.
• 40:52
  Speaker 8: Bingo.
• 40:53
  Speaker 2: When your name becomes synonymous with something, you have a
• 40:56
  Speaker 2: competitive edd We have that conversation.
• 40:58
  Speaker 8: It's like dandid Bingo's It's like we can go hold
• 41:01
  Speaker 8: that style of shirtolo, even if it's a cost shirt,
• 41:04
  Speaker 8: it's a polo shirt exactly. So I'm looking for that
• 41:07
  Speaker 8: doable competitive edge and now we're going to tap into earnings.
• 41:10
  Speaker 8: So I want to see me, what have you done
• 41:13
  Speaker 8: the last eight quarters? Have you beat earnest the last
• 41:17
  Speaker 8: eight quarters? Meaning have you made profit the last eight quarters?
• 41:20
  Speaker 8: And then I want to look at your free cash flow.
• 41:23
  Speaker 8: I want to look at work in capital, which is
• 41:28
  Speaker 8: current assets and current liabilities, meaning what you have in
• 41:33
  Speaker 8: these next twelve months. So something happening in the next
• 41:35
  Speaker 8: twelve months, it's that money positive. If it's negative, we
• 41:38
  Speaker 8: got an issue. It's not bad, but we got an issue.
• 41:41
  Speaker 8: If it's positive, then I know you can hold it down.
• 41:43
  Speaker 8: It's like having money and sale accounty.
• 41:45
  Speaker 6: So when you're looking at all these things, are we
• 41:47
  Speaker 6: looking what are we looking through publications?
• 41:50
  Speaker 2: Are we going to a site like is it like? Yeah?
• 41:52
  Speaker 2: So face value.
• 41:55
  Speaker 8: You can go to Yahoo finance just face value. You
• 41:59
  Speaker 8: go to y'aho find and you can do the numbers.
• 42:02
  Speaker 8: If you want to dig deep, you go to that
• 42:05
  Speaker 8: company's quarterly report, an annual report. So what happens is
• 42:10
  Speaker 8: it's another thing like while I love the stock market,
• 42:13
  Speaker 8: if you're a public company, you have to tell people
• 42:16
  Speaker 8: what you're doing has to be public. It has to
• 42:20
  Speaker 8: be so even your competitors get to see what you're doing.
• 42:24
  Speaker 2: So that's what I do.
• 42:24
  Speaker 8: Like if I like a business, I won't see what
• 42:27
  Speaker 8: the competitors doing, and then I won't see how are
• 42:28
  Speaker 8: you at matching up to what they're doing?
• 42:30
  Speaker 2: Are you shifting that way right?
• 42:32
  Speaker 8: So I won't see are they how are they moving
• 42:36
  Speaker 8: to all the future because we know every two years
• 42:39
  Speaker 8: the business cycle changes.
• 42:40
  Speaker 6: That's why when you hear like on CNBC, it's like, oh,
• 42:42
  Speaker 6: their quarterly reports coming.
• 42:44
  Speaker 2: In and go into every have too.
• 42:45
  Speaker 8: Everybody has to do it. And so if it's a
• 42:48
  Speaker 8: dividend paying company, are you increasing those? If you increase
• 42:53
  Speaker 8: from those, that mean you have some profitability, because no
• 42:56
  Speaker 8: business can consistently increase paying me more money if they
• 42:59
  Speaker 8: don't have money.
• 43:01
  Speaker 5: Soot about the education?
• 43:03
  Speaker 2: Am I going to d right now?
• 43:04
  Speaker 6: No?
• 43:04
  Speaker 5: Man, perfect.
• 43:09
  Speaker 7: My graduates from my school being forced bad drop bag
• 43:14
  Speaker 7: drop my drop bad drop drop.
• 43:28
  Speaker 1: You just realized your business needed to hire someone yesterday.
• 43:32
  Speaker 1: How can you find amazing candidates fast? Easy? Just use
• 43:37
  Speaker 1: Indeed stop struggling to get your job posts seen on
• 43:40
  Speaker 1: other job sites. With Indeed sponsored jobs, your post jumps
• 43:44
  Speaker 1: to the top of the page for your relevant candidates.
• 43:46
  Speaker 1: So you can reach the people you want faster. According
• 43:49
  Speaker 1: to Indeed data, sponsored jobs posted directly on Indeed have
• 43:53
  Speaker 1: forty five percent more applications than non sponsored jobs. Don't
• 43:57
  Speaker 1: wait any longer. Speed up your hiring right now with Indeed,
• 44:01
  Speaker 1: and listeners of this show will get a seventy five
• 44:04
  Speaker 1: dollars sponsored job credit to get your jobs more visibility
• 44:07
  Speaker 1: at indeed dot com slash p o d kat z thirteen.
• 44:12
  Speaker 1: Just go to indeed dot com slash po d kat
• 44:16
  Speaker 1: z thirteen right now and support our show by saying
• 44:19
  Speaker 1: you heard about Indeed on this podcast. Terms and conditions apply.
• 44:23
  Speaker 1: Hiring Indeed is all you need