40 Burst results for "Buffett"
Fresh update on "buffett" discussed on Handel on the Law
"7233 Ask us about our lifetime income maximize strategy. That allows you to build oven income account. That compounds up to 4.5%. This account can be used again to you'll never outlive your retirement money. You say when you suffer a loss in the market, even a small house, you have three problems. One. The loss of value is just one problem. To the second problem is the time it takes to make back that louse and three The third problem is Is almost impossible for you to regain your louses. Let me explain that. If you've got a market exposed, a count of 100,000 say, and the market drops by 30%. Your counts for up to 70,000 0. That's painful, right? Yes, that's just the beginning. Imagine the markets start to go back up. The next year by 30%. Are you back to your original 100,000? No. Definitely not. Why not? After dropping 30%, the account is at 70,000. The other 30% gain is a gay known 70,030% of 70,000 is 21,000 added to the 70. So you now have 91,000. It would take a 43% gain to get you back where you started, which is 100,000. That's why people rarely recover losses. One of my favorite questions asked my listeners. When does negative 30 plus 43 equal zero The answer. When you lose 30% of the market, it takes a 43% game just to get back to zero. Here's another question. Windows a negative 30% equals zero. The answers when you're my client. That's for guys. My clients have no possibility of market losses. Ever. So you never have to worry about trying to regain your loss is also up from bonuses of up to 10 per cent. When you begin your account and a guaranteed lifetime income account that is contract Shuli guaranteed to grow at over 4% a year for income purposes. If any of this is confusing, I'll be happy to explain it to you when you call 8443567233 to get our free, safe money boat. There's no half a cz. You have guaranteed gains and no market risk. Fire information makes your retirement simple and easy to understand. Are no market risk planning removes the stress from your golden years. Care to very important points. You may want to write these down and look at him every day number one. Avoiding loss is much more important than achieving large gains. And number two making steady average. Gaines is much better than hitting home runs. I'll say it once more. Want a boarding losses is about your important than achieving large gains into making steady average. Gaines is much better than hitting home runs. Warren Buffett says it this way. They're two rows and every investor she lived by Number one. Never lose money. Number two. Never forget Rule one. Somebody will get afford to lose money. Can you It is easy for a broker to lose your money. After all, it's not his money. For those who wait for their castor regain losses before moving to safety and security or playing a loser's game trying to time the markets, which is impossible, braving the smartest investors. They're just too many unpredictable factors. No. One rings. A bio in the market reaches the top. No one stands on a podium and makes an announcement. Today is the market closes at its highest level, the markets are now heading into a cycle of downward movement. When the market rages a top and starts to plunge. It's too late. You don't see a hearse pulling a U haul trailer for the same reason. When it's over. It's over. It's true in life and also in the markets. When you call us it ate 44356. Safe s a F E. Will rise to get Yu are free, safe money book. Which will show you how to board our market losses still have games, even in a losing market. You'll also learn about establishing a guaranteed lifetime income account income that is guaranteed to live as long as you do. Call 8443567233. Think about it this way. The worst possible scenario for retirement income is having the money run out before your life is over. There's no way to recover from that. And yet the media and brokers encouraged everyone to continue to take own huge amounts of.
TikTok reaches deal that would give Oracle oversight of U.S. operations
"And Tick Tock recently made headlines Everywhere when Resin Donald Trump signed an executive order. That would essentially ban the Chinese owned APP in the US for national security reasons. Unless it sells its operations here to an American company. And of course, if that were to happen. We would have nowhere to go to see a million potatoes singing. To Adele. And that would be a national tragedy. This week deal actually emerged between TIKTOK and American company Oracle but some people like Zachary say trump's tiktok policy effectively changes. Nothing. The argument goes like this. It will do little to protect Americans data from the Chinese government because there are still plenty of other ways China could get that data that this move is just a new kind of security theater basically. The hard work of data security according to this actually lies elsewhere. So, Zachary TIKTOK has been banned in Indiana a few other countries, but it's still pretty popular for now it's the most popular video sharing app i. can see why it seems like fun and there are mental creative. They're short I mean the whole nature of the medium has their time limited. What happened with Tiktok this week what happened this week? Should be clear but isn't. Basically, in August, the trump administration ordered via executive order whose legality remains highly questionable that the Chinese owner of Tiktok, a company called Bite Dance. Divest itself of Owning Tiktok within ninety days or face the prospect that tiktok would be shut down in the United States. I broke the deal I said you can't do business in the United States, which is at least potentially within the power of the US federal government based on national security concerns based on national security and the logistics are complicated that you probably could order apple and other people and servers that are hosting tiktok. that. They couldn't do it and it would defacto make it impossible for Tiktok to function. So that is what began a process where the owner of Tiktok, again, a Chinese company sought an alternative way to their cell, the US portion of Tiktok or what ended up happening major deals Rocking Wall Street this morning pushing futures higher. We find an American technology partner Oracle beat Microsoft and become the technology partner for TIC TACS US operations although will not. receive its coveted algorithm so that all took talks data would be kept in the United States on servers owned by an American company and not by Chinese company because the whole point of this was that all these people using Tiktok, these tens of millions, hundreds of millions that data was potentially vulnerable to being used and therefore misused by the Chinese government. How so So the fear was because technology companies in China by Chinese law are required if. By the Chinese government to turn over data relevant data that the Chinese government could tell the parent company of Tiktok, hand us all of your user data which user data of again tens of millions of Americans. and. Then China would have that data. So that was the concern right and and that's a legitimate fact the Chinese government could order that. The problem is, of course, one via our court system, an American court can order or prosecutor can subpoena data. From our companies. So it's not like what you and I do on Google or what we do on any technology provider is somehow. Unavailable. To government if government decides that it's in its interest to get it not to mention the the various many non-government actors, the vacuum, the stuff up and use it for their own purposes that is even more important I think probably more relevant to the China issue which is. Does it matter whether the data is in this case, potentially house by Oracle massive US hardware and software company versus being housed by servers in China. In terms of the ability of the Chinese government to obtain that data, it wanted to obtain it because not just third parties that hoover up data and use it in the whole buying selling and the data market, but just spying tools. Whether it's the NSA in the National Security Agency in the United States or various Israeli cybersecurity and or cyber spying companies or the Chinese government. Most of this data isn't that secure. Not. Like. Triple encrypted quantum encrypted defense department level communications. So likely true that if the Chinese government really wanted my teens Tiktok data, it doesn't really matter whether that data's House on servers in China owned by Chinese company or whether it was housed on American servers on buying American company. So I guess, then how do we get to this point? How did you know given what you just said why has this become such a big issue? How did it start? Yeah it's a good question I I'm not sure. There's a precise answer. It's part of a whole continuum of the trump administration in particular identifying China as a proximate threat to the United States and a whole series of ways competitively in terms of trade practices hence the hundreds of billions of dollars of Chinese imported goods that have been subject to American tariffs. It's part of a multi year campaign against this massive Chinese telecom equipment company called Wa wa, which has been a leader in next generation five G. Telecom equipment in a way that again, some of the same concerns have existed which is. That the Chinese government would would use the production of that equipment as a way to spy on who met from purchase adequate. And Look a few years ago. There was a a forced sale of gay dating APP Grindr, which was also owned by a Chinese company, and so there was an earlier precedent of forcing a Chinese company to sell an American APP Social App. Because, of data concerns and finally, there's the fact that for years long predating the trump administration. China has not allowed American social media companies like facebook. To function in China. So there's the tit for tat. You know you don't let our social media functioning companies function there. Why should we let yours function here? There's Several year campaign against China which the trump administration's pursued but I think has a good deal of democratic support I. Mean if it's close to a bipartisan sentiment that China, China's a threat as anything we have right now. Why Tiktok? Suddenly became a thing I may partly have to do with the fact that it suddenly became a very big deal in the United States. I mean, this was not a company that had any footprint several years ago and suddenly as. The APP does your so it may have had to do with something that got really big and is very noticeable. Salsa not that economically important. So a lot of people would be royally pissed off Tiktok were banned. It's not like tiktok is. An integral component. To the US economy either during covid or without covid. So it's an easier target. We'll be right back. Everyone wants to become a better leader this groundbreaking new book how to lead shows you how David M Rubenstein is one of the visionary founders of the Carlisle Group and host of the David Rubenstein Show where he speaks to leaders from every walk of life about who they are, how they define success and what it means to lead. Jeff bezos Richard Branson Warren Buffett Bill Gates Ruth Bader Ginsburg Phil Knight Oprah all of them and more are featured in how to lead this essential leadership playbook illustrates the principles and guiding philosophies of the world's greatest game changers discover the expert secrets to being. Effective innovative leaders. Walter Isaacson proclaims reading this invaluable trove of advice from the greatest leaders of our time is like sitting in an armchair and listening to the masters reveal their secrets, pick up a copy of how to lead wisdom from the world's greatest CEOS founders and Game Changers Bhai David Rubenstein available in Hardcover e book or audio, and we're back I get the kind of general personal security aspect of it. Where does the national security aspect of it come in? Is it because there's concern about people who worked at the Defense Department or the military whoever having to talk in in use in their households or people in the Defense Department are not allowed to use tiktok certainly not on their phones. For before this although they may have teenagers who That's vulnerability as well. So it wasn't primarily about like US government employees who might have sensitive data that tiktok would be the back door way that the Chinese government would spy on them but it was generalized sense of any foreign government that is using private American citizen data potentially for nefarious purposes represents a national security threat. Now, it clearly has not represented the kind of national security threat in the estimation of the White House right now when it's Russian. Manipulation of social media accounts the same principle should or would apply right. If you'RE GONNA ban, Tiktok you'd probably want to take action against the a variety of Russian media enterprises that are attempting to manipulate and hoover up American user data. Some of that data's you mentioned earlier in terms of third party is available to anybody for a price just because there's a marketplace for data. Which I think either most of us aren't aware of or frankly most probably don't care if politicos data on this podcast gets sold to fourteen vendors so that it can sell you and me products based on our other computer activity most people. Either like that, or don't care about that. But the national security concern is simply because it's a foreign government that could potentially. Use, our search history or browsing history nefarious. And again a, that might be true but be it's likely that all this kind of data is obtainable irrespective of whether or not a company called TIKTOK. Happens to have access to a lot of it. It's really interesting. So into this whole story comes oracle, you know huge hardware software firm but how did they get involved here? Yes. Oracle is is a multibillion dollar firm that has had the same public profile as Microsoft or Amazon or facebook or apple because most of its business is to other large companies, you know you and I don't tend to go out and buy Oracle piece of hardware because we don't need a hundred and fifty thousand dollars server or. Network system for our employees. They're largely corporate provider throw a huge provider to the Defense Department in terms of cheer equipment and material, and they're huge software company. They're one of the early Silicon Valley success stories and the billionaire founder Larry Ellison has been probably more conservative than not I don't know that I buy into the whole. This is a reward versus. A snub to the other potential main acquirer or partner for Tiktok, which was rumored to be Microsoft but this is an unusual. This doesn't usually fit oracle's business model. Well, that's that's interesting. So what is their interest in getting involved here perceived to be I'm not one hundred percent clear about that I mean look at could allow them to. Have a little bit more of a consumer facing brand. Again, I mean Oracle's. Primarily a software company primarily a database company. Maybe this could help them increase their databases. There's no way that this is a natural fit for goal. But at the same time north this a huge cost for Oracle, maybe it'll produce some American jobs. I mean. They're looking for growth just like everybody's looking for growth, and once you get to be the size of Oracle. Growth gets harder some of they're also looking for a DIFFERENT INDUSTRY TO BE President Chore? So. What exactly did they given? What did they get here that as of this conversation is not one hundred percent clear off so it was presented as or go by tiktok. That is not the case or at least it's not the case now and as possible. The deal will be scuttled or change given that all of this has to be approved by the government has to be approved by committee. Called Syfy S, which is the committee in charge of looking at global deals in terms of US national security, but it would seem that right now. The parent company of Tiktok saw own TIKTOK and get some of the economic benefits of TIKTOK. This Chinese company called by dance and that Oracle in turn will get a massive licensing deal to house Tiktok data and information on its own. Servers and using its own software. So the concern that the Chinese government would have access to that data would be allayed meeting under this agreement arrangement because the data would be managed by and it's housing would be arranged by a US company. The Chinese government could order by dance to turn over but by dance itself wouldn't actually have access to that data. It's interesting I mean based on what you said before it's they're they're they're moving this data from place a, it's not going to be in a different place and I guess the Chinese government will no longer have a key to the door. But as you said before there's many different ways that either the Chinese government or a lot of other. State or private actors can get hold on more or less any data they want to these days right? which kind of raises the question for point of all, this is ENA. It's certainly true. It would make it a little more challenging to get that data under that kind of arrangement. It seems like this a big fight over a big company. That's not actually really about. The literal subject of the conflict here. Yeah. It is totally fair to say that whatever the imbroglio about tiktok has very little to do with tiktok. And everything to do with US policy toward China. And the trump administration looking for some High profile optic to be able to say we're we're being tough on China and protecting American citizens. Again, the oddity of Tiktok is given that so many of its users or young adults. Who Don't vote although who would be? Extremely, Acetate it. If they woke up tomorrow and there's no TIKTOK meeting, it's probably not. The most popular move if what you're trying to do is gain support during a presidential election. So it's not entirely clear what constituency the served there wasn't like a huge congressional clamor for Oh my God. We're all big imperilled by these fifteen second videos. So where do you think things go from here in terms of into in terms of the real story behind all this in terms of the U., S., China relationship and the increasing in. them of that. So I think to some degree regardless of who wins the presidential election. there. Is a train that's left the proverbial station of increasing. Distrust and animosity between the United States and China. But within the context of an incredible amount of economic interdependence that you cannot just snap your fingers and several or at least not without massive massive harm to each part of that equation both the United States and China, and that's that's pretty unprecedented. Right? Right. That's like the Cold War analogy doesn't work because there was no economic relationship between the United States and the Soviet Union nineteen. Fifty S
Fresh "Buffett" from Smart Oil and Gas Radio Show
"And where are the deals? Will these by low sell high opportunities? Continue The things that really like right now is what we're talking about last year natural gas. We expect natural gas to come back. It had been a dollar 50 is back up to 2 50 the 24 months strip looks great on natural gas. I love not for gas within all component and, of course, then On top of that, what I've been saying for years, and I'm sure Warren Buffett is listen to her show. Maybe he will get into also write. Yeah, but you know, it's we're talking about natural guys last year before there's any more he wants. Yeah. So horizontal wells. I mean, you're seeing natural gas and horizontal oil. Okay, those two things you know? Horizontal wells. I love just think about this rough numbers, but make a horizontal well, like Exxon does in their east Texas basins. You know, they drill those in their old fields. Ah, and they're mature fields. And sometimes I'll make 1000 barrels a day, Adamant Orwell in a field that's most engineers would say is depleted. And there's nothing left. Go out there and draw horizontal. Well, make it 1000 barrels a day. 1000 barrels of day. Is $42,000 of day in revenue $15 million a year. Over five year period $75 million. That's why Exxon Mobil and Marathon and Anadarko And those type of companies go out and they drill horizontal wells in the East Texas bases in the Permian Basin, then the Permian Basin. It's hard for individual investors to get in, but on the Gulf Coast in East Texas basin It's much easier. So when you're talking about a well that can make you almost $100 million in five years. I love that and so natural gas I love on the upside of it Used to be $13. An M C F right now is to 50. It's going up. You buy low sell high. It's a great opportunity. And then, of course, also add in some horizontal wells. You can't beat it our deals out there still. So you've been buying at a discount You described last week paying 20 cents on the dollar on an acquisition our deals out there right now, in natural gas and in horizontal wells. Yeah, absolutely. You can still get these now. We were talking on the news today about the fact that with oil and gas prices recovering Many people predicting a 97% recovery by end of the year. The deals at some point aren't going to be is plentiful. Well, when this is the thing about it, I think that the deal's when the price deputy I gets to about 65 Well, we'll run out of these deals where people have to sell to stay in business because of people that previously had two cell will be having cash come in. They want they want it. They want to sell anymore. Yeah, yeah. Now, if they got, they got over lever it and then they had to add to their debt. Turn the downturn. They may be selling stuff off now, when the price of deputy I gets to 62 65 you just go out and get the reserves from a drill bit. Versus the auction house, So there's always a way to get in. I know you've made a calculation on what's possible, Roo. I wise return on investment binding the discount May and you've done some other projects like that. You buy in downturns all the time. So what's that look like? From our standpoint when prices get back to 60 65 per barrel? What's that look like about 40%? Above 40% 40%. Plus you get a tax break in there. The calculate to show that 40% plus a tax break, love you purchase something. You don't get a taxi? Yeah, just right. But you get a tax break on the reward. Now, remember? I'm a chemical on petroleum engineer, So I'm not buying on all field Just for like an annuity is like okay is producing this. I'm going to run it out for 30 years and I'm gonna plug it. I'm always looking for an opportunity to improve. So I want to buy an old field that has some new zones that have never been that produced. So you, Khun go out and buy some wells that are, say five or 6% annual rate of return. Got us some new songs that give you 100% rate of return for capital expenditure That's less than 10% of the purchase price of the field. Very exciting, Mark. Thank you. And right now it's smart oil and gas. We have to open lines. So if you have any questions, give us a call right now. 833645 45 100 r number 833. 6454500. We can talk more about these value opportunities that exists right now in oil and gas. We can also sing you the oil and gas investor guy that free resource and if he calls before three, we can project your tax savings this year. Very exciting to see how much less you could pay for this year's taxes as you get into an oil and gas program and the good news. Is there still time to get into a program all the way to the end of the year? So let's talk to 833645 45 100, the number 8336454500. Coming up. It's oil and gas history this week we take you back to the days of the civil war and learn about the discovery of fracking. Also coming up the mailbag first question.
How Many Marketing Emails Should You Send?
"Super committed to your success online. We've worked with them to a special offer just remarking school listeners. All you have to do is go to dream host dot com slash marking school to learn more and get your website online today. Welcome to another episode of marketing. School. I'm Eric Su I'm Neil and today we're gonNA talk about how many marketing emails should you set? So, how many emails do you send? Right now should week we send we have a digest email. So that's a bunch of different content and then we send a believed to more emails about three emails a week. We're very similar. So we have I send emails, every Tuesday and Saturday, and then I do drip sequence of the drift sequence has six or seven emails but once you're in the drift sequences spread over three days per email, and then once you get the six or seven emails, you just get the two per week. Yeah. But if you think about what Eric and I both do his, we don't send too many emails because we send too many emails you burn your list and the goal for us is we send as much high quality. Content has also instead of sending quantity and then. When we have something to sell will definitely push harder during those times been generally, we try to save our lists and only educate and set of promoting, and then we do our marketing, throw our content versus selling directly through email, and we try to limit it to few times a week I know some people like doing multiple times a day every day it's just too much and drowns people's inboxes. They don't open it, and then you kind of damage your reputation as well. I also think it's our personalities to were a little more prudent when it comes email and we know really. Good. Email marketers that sent a ton. They make a lot of money to make a killing from return investment is Great I. Think the School of we come from is just we want to continue to make long-term deposits to the bank and what we hardly ever withdraw, and so some people will say to you Neil I remember in the past would like Oh. My God neely is like not even using his list the right way or Blah Blah Blah. And you've got US comments people say, yeah, they'll tell me I'm not doing things the right way I don't email enough I don't monetize. And they're right and I'm okay with that. But funny enough the monetization comes back. It's it's the stuff that you don't see. Right it's not like it's not like Oh, here on coming up with a new launch. Here's my new launch. I'm launching a new course I'm like it's Just constant drip of content and Very hardly if people WANNA findings, they'll find it but funny enough it actually has led to more relationships. I would say, for Neil, which led more deals which are worth a lot more correct. It has. Yup. So I mean that the way it's it's look at it this way right if you look at, you know traders on wall. Street, they have a very it's a quarterly focus type of mindset. It's a short term mindset. You look at the Warren Buffett's of the world. It's a long-term mindset, the aim to buy companies and hold them for long term that's what you WANNA. Do you like you're looking you want to have a long-term mindset I think when you? Look at I think the affiliate marketers are really good at testing things but the the way they're driven is very based
Fresh update on "buffett" discussed on Smart Oil and Gas Radio Show
"He got back into natural gas. And now Warren Buffet you several weeks ago. Making a big natural gas play acquisition. That's awesome. What's going on a natural gas and why is it such a good value right now that people are jumping in at this level? It's a value play the value place to me in the industry or natural gas and his When a guy like Warren Buffett will put $20 billion into natural gas, You know, it's good and horizontal was especially wells that do not have to be fracked. If you can get a horizontal well, they didn't have to be Frank. That's a thing of beauty. And if you can get new Wells In an existing gas field with infrastructure in place. That's also thing a beauty because the price of natural gas has been moving up, you know it was down as low as a dollar 25. Per mmb to you is almost at 2 50 the Ford strips with if you watch futures prices to four strips are going to be approaching 3 to $4. An M C. F. So right now, you know when Warren Buffett's getting in a natural gas anybody that's an accredited investor should have snatcher gas in there perform believe that both buffet and and Jerry Jones sighted The fact that natural gas pitch in to where we're at as a world from a green energy movement, so natural gas, very clean, Super clean this show their liking that aspect of it because there's there's going to be more faces more pressure to do clean energy type investments in the future. Yes, you know that you can use natural gas as a transportation, fuel for buses and stuff like that. But natural gas is mostly a electrical generating fuel, and it's super clean. It's the cleanest thing after I actually think that natural gas is cleaner. Been wind or solar power because you don't have to deal with all the exotic chemicals and heavy metals to dispose of the would you have a solar panel? Go out and you gotta get rid of it. I mean, it's toxic. You can just put it anywhere. It's got a bunch of toxic chemicals and heavy metals in it, whereas natural gas it burns clean, So you know it's it's organic. It's from the earth. Its not like burning would fuel or Pete, but it is super super claim. It's a great source Europe is having to pay. Russia, 14 to $15 and CIA. And here it's 2 50. So whats going eventually happened as we have hundreds of years a supply of natural gas here in the U. S. And we can take part of that. Liquefy it. Transport to Europe and sell it and do it cheaper than what Putin will sell natural gas to way could help out the year now talk to me about return because I know and we've talked here in the radio program about the fact that you've gotten into some of your value investments of natural gas. 2030 cents on the dollar, but a huge downturn in old you're buying deals is that the same thing with Jones and buffet are they are they seen it in the same, They're seen lower prices depressed prices as a time to buy. Yes, well and is kind of like when I talk about by Exxon Mobil stock because there's such a great company. And they're so well run, and they also paid emit in But I say watch the price oil. The price of Exxon Mobil will track the price of oil. So when all prices air down except moving down by it, because.
"buffett" Discussed on MarketFoolery
"The timing I think. ADDS to your point. The fact that it's not that apple slit their stock, it's not to Tesla's split their stock instead they both did it at the same time it's a massive split by massive. I mean anything greater than two for one because that gets attention we've seen fewer splits I mean it's really the combination of all these factors and You know in the same way is that I have thought over the last six months or so as companies have rightly so. Put a hold on giving out financial guidance. And thinking boy, you know if you're if you're the chief financial officer at all of these companies and you're in the meeting and someone, Hey, should we stop giving guidance? If you're the CFO you're absolutely yes. Yes. Off someone's hand to get that. Yeah. Let's stop giving God's on the flip side. I think one of the ripple effects of what's happening today with apple and Tesla is going to be more questions coming up than we've seen in the past six to twelve months of successful large companies whether it's Amazon. Whether it's booking holding you know any stock price that hasn't split in a very long time and is either at were approaching. Triple digits or quadrupled Rupel Yeah. I. Just feel like it's going to be more oxygen that those people have to deal with. Hey are you thinking about this because by the way? These are not these are not fly by night companies with Apple. Endesa. In the Tim Cook in the case of Tim. Cook on the short list of the most respected CEO in. America. Definitely in the top two or three, follow up acts of all time. Of all time I think yeah you know it's funny you. So the this weekend I checked into my fidelity account as I tend to do on the weekends and I and I and There was a a warning that came up right away. It said you know. As stocks, these stocks go through their stock splits this weekend. Some parts of the experience are still in the midst of updating Tim. Chris. Did you realize you don't have a portfolio that you actually have an experience? I, didn't realize. I don't have my money with fidelity. So maybe More, folio as opposed to like. Is that part of their marketing? Come join the experience to dot com. You, know I think and again I. Don't want to overstate this. I'm not actually opposed to stock splits. It is just simply the only people. It matters to our options, holders to everybody else especially in a world where you don't have to you where where you don't have to buy in round lots where where brokerages are brokerage trader free and you can buy fractional shares the literally don't matter. But people are excited about it so. I'm wrong. Who Scoreboard I guess..
Fresh "Buffett" from The Car Pro Show
"Think you've got a big tax Bill Bruin for 2020, and you're thinking there's no way to avoid it. I mean, I'm just stuck with this. I'll have to grind my teeth and pay it gives five minutes right now we can project for you what is still possible. When you get into an oil and gas program between now and the end of the year, a big tax break and great potential for income and let's talk about it right now, because it really is timely and we'd love to talk to you and give you this good news. 833645 45 100 Right now the number to call 8336454500 here. It's smart oil and gas. Coming up on smart oil and gas. We're gonna get marked update us on these deals that are out there right now for investors significant discounts. On oil and gas programs buy low sell high, Just like Warren Buffett just did a natural gas. How long are these deals going to be out there and how significant our they will get marked? Update us right after the break a bit later its oil and gas history. And this week we're going to take you back to the days of the civil war to hear the story of how fracking was invented from Houston, Texas. This is smart oil and gas and you are listening to 7 40 K T. R H.
Why Warren Buffett is gambling on Japan’s distinctive dealmakers
"Buffett celebrated his ninetieth birthday doing what a lot of folks like to do when they wanNA treat themselves. He went shopping. Berkshire hathaway has stakes in the five leading trading companies in Japan Sumitomo. Oto Chew Mario Benny Mitsui and company and Mitsubishi Corp.. They. Import. Everything from. Energy and metals to textiles and food and. This is. Clearly a big move. In of itself. What does this investment on buffets parts? sadie. Let's start there. Well once again as always we have to remember that with Berkshire hathaway sometimes, the numbers almost feel like cheat codes because six point five billion dollars is not a huge investment for Berkshire Hathaway stake in Apple at stake. In Coca Cola are much larger than this but buffet for after years of not really looking outside of the United States has really started doing. So he's bought Israeli companies about German companies he's invested in China in Brazil and now he's investing heavily in a very interesting segment of Japan. These are extremely economically sensitive trading companies. Japanese are called Sogo Shosha. And they are they will trade in almost anything and I believe that one of the reasons that he wants to have he wants the stake in these companies is that is that because these companies are chameleons they will invest in everything they have joint ventures all over the world and so yet another way for Berkshire Hathaway to have additional boots on the ground additional is nears looking for new things that they can invest in. So really interesting timing for this it may be you know again, his suggestion I in a soft way that it's really hard to find opportunities here in the US that the Japanese market relatively inexpensive and. Like everyone else you know I'm sure a lot of everyone woke up this morning and was surprised by what Buffett has done and. By now, a lot of people are saying that makes that S-. You look at those five stocks. They're all up. You know five to ten percent. It's. A lot of times when buffet makes them move? One of the things we talk about is how buffet is to tell people like look just don't blindly follow me you shouldn't blindly follow anyone do your research and all that. But Is this something US investors should look at given what the comments you just made about the relative value of the market in. Japan. The best performing stock market in the entire world over the last decade. Stock Market Stock Index is the S. and P. Five hundred, and it's really not even close when you don't denominated in dollars. It's the number one. Japan's is actually since Ave came to power it, it has outperformed every other major stock exchange with the exception of China and the US S. and P. Five hundred it is a we tend to think of it as being more bond. I think American. Investors still have a dramatically too low exposure to two markets that are outside of the US. And Yeah there are I think that in the US almost every opportunity has at least in some ways been monetize whereas in a lot of other countries that is not the case at. Japan. Definitely one of those countries.
Fresh update on "buffett" discussed on Helitech Waterproofing Home Improvement Show
"See in all sorts of international airport hubs where you buy luxury goods without paying the taxes on them. You know, I thought that was a government run. Mr. Feeny is the one who has run them since the night when I read this, Yeah. So Chuck Feeney started that chain of stores and grew a fortune of eight billion plus dollars in the process. But decades ago he committed to giving away everything that he earned. And so he is celebrating as of last week. His net worth is now down to just $2 million, and what's really special about this is you know, there's some other big philanthropists like Bill Gates like a Warren Buffett who have made the giving pledge Tio functionally give away all their wealth, but they're doing it after they die. Chuck did it while he was alive. He was personally ableto oversee these gifts, and he did it all. Anonymously as matter of fact, he got busted by the press a couple of years ago. He didn't intend for anybody to know that it was him. But some of the guests were so large that people figured out who it wass and figured out what he was doing. And he found he could actually influence more mega wealthy billionaires to give more by telling them about it. There's actually some great quotes in the article from Warren Buffett and Bill Gates. Warren Buffett says Chuck's been the model for us all. If you have the right heroes in your life, you're 90% of the way home. And Chuck Feeney is a good hero have go check out the article. The billionaire who wanted to die, broke and is now officially broke on Forbes. What an uplifting story that everybody could relate to nowadays, something that make you feel good about people again. And it's a great read. But how can people get.
Why SEO is Still Our #1 Marketing Strategy in 2020
"Super committed to your success online. We've worked with them to a special offer just remarking school listeners. All you have to do is go to dream host dot com slash marking school to learn more and get your website online today. Welcome to another episode of Marketing School I'm Eric. Su and I'm Neil Patel and today we're GONNA. Talk about why Seo is still our number one marketing strategy in two thousand twenty. So meal how long have you been doing Seo for? Too Long I don't even know how long maybe sixteen to eighteen years somewhere around that range of guessing sixteen to eighteen years. Okay. So for me, it's probably coming up on ten years or so. So I'll answer question afterwards wide you still like Seo wise it still your number one strategy although s does take effort cost more than it used to write you could get rankings with very little effort or very little human capital. So in essence you're still spending money because it's time. In the long run, it's still one of the cheapest tropics that I found. It's consistent and whether you have a good month that business or badminton business, you afford keep getting that traffic see like when things like Kobe hit a lot of people had a turn paid ads because even though as we're making money. Just if not everyone's buying or things go wrong you gotta save cash wherever you can. Seo You don't have to turn it off. You can pause your campaigns, but you're still getting that traffic and that's a beautiful part. I think the reason why it's still mine number one marketing strategy is because I think in the early days of my career I wanted the newest tactics I wanted to move very quickly. Go go go and then I realized that what I'm really good at is the long term stuff I I realized that when you have a long term outlook on things you look at Warren Buffett is just they like to buy and hold things typically you're not buying stock to sell. So the way I look at s Yo single rains a good example of this when I first. Came into the company, we're getting like two to three thousand visits month. Now we're we're getting decent traffic upwards of about three, hundred thousand or so Neil. Neil gets couple million, right but I think the point I'm trying to make it compounds and it is the gift that keeps on giving yes. You have to continue to feed the beast, but it's cost efficient, and once you have that foundation that bedrock you can start to build out the other channels but you build around that. So I. Just look at it as business investment not so much as just a marketing strategy. Look at the end of the day, as long as you can end up. Providing a ton of value, you'll get the traffic and when times are tough, you can pause things. Things is. You still have your Seo if you don't have as many people working on or you're not producing as much contact, you'll still get the traffic again I don't know any other channel that's like a social media's quick bursts Seo. You can sustain it. You don't get that quick bursts at the beginning, but long instead he really or slow. Really does win the race in paid. You spend, you get the trap you saw up spending, you get less traffic or pretty much no traffic when it comes to paid net paid convert better but you gotta keep paying for it and I don't know of any other topics out there other than SEO that keeps producing constant quality traffic that drive conversions, and it has the highest Roi from anything else that I've ever passed it. I think some of the. Smartest entrepreneurs I know I speak for you to kneel. It's they understand not only just business, but they understand as he even if you get a cursory understanding of SEO, you have an unfair advantage I think they said Microsoft said as is GonNa. Be One of the top skills if not be top skills in demand in the next ten years or so search will always be there as long as people are looking for things search will be there S. You will always be there and so the other thing with Seo is think about it this way, there's an arbitrage opportunity with. So once you start to build up a good domain authority, you can use a draft you can use sem rush whatever uber suggests you. You have a certain score. Your site is seen as an authority and there's other sites out there were previously they might have been like might have just sold education products and now they've become. Affiliate blogs right and you start to rain for whatever in that Niche whatever you publish tends to rake, and so you have an opportunity to
Gov. Newsom asks Warren Buffett to back removal of Northern California dam
"Governor Newsome has appealed directly to investor Warren Buffett to support demolishing for hydro electric dams on a river along the Oregon California border. The goal is to save salmon populations that have dwindled to almost nothing. The governor on Wednesday wrote Buffet urging him to back the Klamath River project, which would be the largest dam removal in U. S history. Dams are owned by a Pacific Corps, an Oregon based utility owned by Buffett's Berkshire Hathaway company.
July Mailbag with Jason Moser
"The. Multiple answers I'm out Southwick and I'm joined, is always by broke camp. Personal Finance expert here at the Motley Fool. Hey, BRO, well! Hello Alison. It's the July mailbag where we answer your questions and this month it's with the help of multiple analyst Jason Moser. Should you buy a house now? What is modern portfolio theory and also here Jason's thoughts on a lot of stocks all that and more on this week's episode of Molly fully answers. Jason thanks coming back. you know I mean i. told you you invite me. I'M GONNA. Be here every single time. Thanks for having me back. I mean we appreciate it because we know you're a busy man, and so we do appreciate that you carve out time for us in our little show, don't. Always always make time for those important people in my life rule number one make time for allison and Bro I love. It sounds like a good one to me. Everybody wins. All right well, I guess we should just get into it, so the first question comes from Darren I've subscribed to the full for over a year and I'm really pleased with the service. I would like to know your thoughts about my holdings in Shop Affi- I've bought several times over the last three years, and it's now over thirty five percent of my portfolio and I. Don't know if I should continue holding or trimmed down. What would you advise a good problem to have I was gonna say that exact same thing? That's a good problem have? In a very glad, you have subscribed to our services in your really pleased. That's that's what we aim to to do. We aim to please help you make money and so yeah. This is one of those situations that we will find ourselves in from time to time as investors. A nice problem to have but something you do need to address at some point because it is going to be a little bit different for everybody. In so coming from the perspective of I, also own shop, a Fi stock in it's it's a wonderful investment. It certainly is taking up a bigger. Part of my portfolio a not at thirty five percent where you are. I think for me. It really does boil down to. That sleeping at night test in other words, you need to be able to go to sleep at night without worrying about this kind of stuff, and if you feel like shop, a Fi represents too much. Of your portfolio if you feel like you're overly allocated their, then, you may need to consider pulling it back a little, but now I mean it's. It's I think it's always important. Note you know. It's a big difference between building up a position buying a position to make this size to make this type of allocation in your portfolio. It's another thing entirely to have position grow into beat into becoming that size i. mean that that is that is in a little bit of a different dynamic there, so people all the different ways, some sometimes folks will, they will just sort of looking at it from the house money, concept or you. You just sell enough shares to recoup your initial investment, and then you let the rest of it go. Some people are perfectly fine with thirty five percent. Some people are not. They want a pair back so i. do think you need to kind of figure out what helps you sleep at night I do think that shop by a great business. I think the biggest risk in only shop, if I right now is valuation, just because it's dominating, it's space, but it's not making any money yet, and it's probably going to be a little while until they do so that valuation risk is there, but ultimately yeah I think determine. Where you feel most comfortable with it, and if you feel like you need to put a little bit of that money off the table, and he thirty five percents a lot, certainly very understandable. If they've said something you need to do if you do decide to pair it back a little bit. You've made multiple purchases, so you can identify the shares to sell to manage the tax consequence if this isn't a brokerage account and not an IRA. All right next question comes from Steven. If you are forced into unemployment, you are paying federal income taxes on unemployment payments are not contributing to social security nor to Medicare. How does this affect your future calculation of social security benefits and can one contribute to the social security fund during unemployment to mitigate any adverse effects on benefits, it is a little bit adding insult to injury, but you do owe federal income taxes on your unemployment benefits, and if your state charges has a state income tax, you probably have to pay state tax on that, although there are a handful of states that exempt unemployment benefits, so that's good news. And by the way you, you could have taxes withheld from your unemployment benefits you file. This form called form w four V. if you want, they withhold ten percent, or you can do quarterly estimated payments if you wanNA avoid that big tax bill at the end of the year, but if you're strapped for cash is probably just better to get the money now worried about your taxes later Eh. Stephen notes out. You do not pay payroll taxes. Those are the things that go into social security and Medicare so. So. It could result in a lower social security benefit, however, keep in mind that social security is based on your thirty five highest earning years, so if you enter the workforce at say twenty two and you work until you're mid to late sixties. That's more than forty years where the working so hopefully. If you miss out, if this year is not so good somewhere among those other forty, five or so years, you've had thirty five really good year so that this year won't be that big of a deal. So it probably will be okay. And then to address the last question. Unfortunately, no, you cannot make voluntary contributions to social security. There is at least one academic working paper out there. That suggested that people could buy into social security by like extra credits as opposed to contributing to your 401k, but so far that has not been passed by Congress I had an ex. Question comes from Sam. I heard to stocks discussed on another full podcast. When I read articles about them, it mentions they are thinly traded. I have two questions one I'm sure my position would still be quite small so I think I'd still be able to get in and out, but are there other things I should think about when it's a thinly traded stock and question number two. Is there a certain amount of? Daily volume you like to look for when considering a stock foreign investment. What volume do you want to see to not be? Quote thinly traded stock. Yes very good question in thinly traded stock just refers to the either the amount of shares or the dollar volume of shares that would trade on any given. Market Day and so. The. Thinly traded stock. The the problem is that you may not necessarily able to buy and or sell at the prices. You necessarily think you might be able to in other words when you look at a stock's price and you're looking through the. What what's going on throughout the day on the market, you'll see that did ask spread, which is essentially the bid. Ask spread is it's what someone's willing to pay for the stock versus what someone is asking to be paid for the stock? Because you know you have a buyer and a seller on on in every transaction they're. Normally most cases, these business business bread is very tiny, the couple of pennies maybe for most stocks because they're. They're heavily traded right there. There are plenty of dollar volume. But there are a lot of smaller companies small caps in particular in in you know a micro cap, specifically that don't necessarily meet these kinds of thresholds, and so you definitely have to be aware of that now I'll go back in time just a little bit, too. When we were running the service here at the fool called million dollar portfolios Roman Romani portfolio that we help manage members, and it was never really a problem, but we did have a condition in there. We were always looking for at least ten million dollars in average. Trading volume total daily volume now understand I'm not saying the number of shares saying the amount of money so basically shares times price, but we're always looking for at least ten million dollars. That wasn't set in stone it. It was an idea for us. It wasn't ever really a problem because we had a very diversified portfolio with a number of different types of companies, but when you're looking for smaller companies, you would've just keep that in mind that did ask. Spread is is something that just because it says the stock is twenty dollars. That doesn't necessarily mean you'll pay twenty dollars if there is a a big spread there between the bid, and the ask in so I think whenever you're considering stocks that have any lighter trading volume or thinly traded stock. Just be sure to use limit orders. Limit Orders of let us stipulate the price that you are willing to pay for or that you're willing to. To accept a if you're selling a limit, order is just a really good way to protect yourself from any unwanted surprise thinly traded stocks. You might not always necessarily get them when you want them, so you might have to lead that limited are in there for a little while, but but a limit order is a great way to protect you from any unwanted surprises. Next question comes from Randall. I'm in my late thirties now, but earlier in my life. I was very very bad with my money. Collection Calls Welfare and bankruptcy or not strangers to me. I've been at the bottom then I met the love of my life, and she convinced me to turn things around ten, and a half years later and I have done a complete one eighty, I took control of our finances rebuilt my credit and started investing and listening to all you find folks all. I opened it investing account with the goal of saving and building enough a down payment on a home. I'm happy to say we've now reached that goal. I recently sold at a profit because I didn't want that. Money tied up in the market. If we are close to needing it for a house, but now that we're here, I'm not sure what to do. We currently rent a basement apartment and our neighbors general living situation are less than ideal to put it mildly. So, we're champing at the bit to jump into the housing market that being said the experts have been calling for a drop in the housing market for a while, and that was before the pandemic hit now I'm worried that if we buy right away a year or two or three from now, interest rates will spike, and we could be put in a difficult situation. I live near Toronto. Canada or the housing market is already highly inflated in relation to the rest of the country should I be worried? While Randall first of all congrats on turning your financial life around love hearing success stories like that so good job on that. So I'll start with my standard answer with the rent versus buy decision, and that is just pull up spreadsheet and compare the all in cost of renting, including what you could earn on the money that use for down payment versus the all in cost of buying including the opportunity cost of putting down payment as opposed to having invested as well as insurance and taxes and maintenance, and all that stuff and project, where you might be in five to ten years based on various scenarios on what happens to stocks, if you. Rent an invest the down payment versus what happens to? What you'd look like depending on where home prices go. Generally speaking. If mortgage rates go up, that could way down on real estate prices we did see mortgage rates. Go Up for a bit a few years ago, but the housing market did find, but you could certainly envision a scenario where rates went much much higher, making houses, much less affordable and prices would have to adjust. But I don't expect that to happen anytime soon. I think we're. GonNa have low rates for awhile, but beyond that I don't know I've given up trying to predict where interest rates are going or even paying attention to people who try to predict where interest rates are going, so who knows? That said since you live in Canada. I thought I'd check. In where rates are these days and I and I got a brief reminder that things are actually different in Canada so I did a little bit of research. And then realize I had reach out to someone who knows, I reached out to Canadian Motley fool analysts Jim Gillies, and he had some thoughts so first of all just for you non-canadians out there. It is really different so in America. We get this thirty year mortgage than we have the same payment for thirty years. It's fixed. They don't have that in Canada. What's the most common is a twenty five year? But only the first few years or fixed. And then adjusts so in that context you can understand why Randall is worried about interest rates going up because over the next depending on which alone he gets the most popular is a five year fixed, and then you basically have to go get a new loan probably. So that put that in context, a little more, but also Toronto, really is crazy expensive. Vs from the end of last year that put it as the most overvalued real estate market in the world behind Munich. As Jim pointed out in our call here in the US we had our housing peak in two, thousand, six, two, thousand seven, and then we had what he called a reset, which is basically prices came down significantly candidate and have that slight downturn at home prices, but then they just kept on going up, so it really is different there, so when Jim explain all this to me, the difference in mortgages and the difference in home prices. Frankly he was inclined to say to this guy. You Might WanNa rent for while more and see what happens, but he also had the good advice of okay. What if you buy in prices? Come Down Fifteen percent twenty percent. What if they come down to a point where he upside down? You owe more than the home is worth. Are you okay with that? If. You're okay with that. Maybe it's okay to do that. But it certainly sounds like dicey situation than if someone were telling me like I'm thinking of do this in Dubuque Iowa or something like that. couple of other differences. In case you're curious about Canada in the US. Your mortgage is portable in Canada south. You Buy A. Get the five year mortgage, but then move get to take the mortgage with you for the next house and interest is not tax deductible. US Look at you, Robert, broke? Camp Can Canadian real estate experts there you go. Next! Question comes from Chris. I was on twitter the other day and saw that one of your contributors Brian Feroldi tweeted that he doesn't believe in a long list of technical trading terms and then modern portfolio theory. Can you help me understand what not believing an MP? T with mean this? He believed that diversification doesn't reduce risk. Also every financial adviser I've ever talked to his preached empty, so I would love to hear the counterargument. Jason you're not Brian for all the. Question I am not Brian for all the do get the talk of Brian Pretty good bit though. I I must admit I. Don't know what he said here in regard to modern portfolio theory and all of these technical trading arms. But I think I can take a guess. Generally speaking I agree with them, and I think you could sit there and look up the portfolio theory in you know read about it as much as you want. Just go to google modern portfolio theory, and you can dig right in there, but in a nutshell ultimately, what modern portfolio theory is the intention behind it? It's meant to reduce risk while maximizing returns. It assumes that investors don't like risk. They prefer less risky portfolios to riskier ones in order to achieve a certain level of return so right there. I kind of kind of lost me right there because I don't believe that every ever investors risk averse I think some investors have a very. Healthy, appetite for risk, and frankly I would say I got a pretty high tolerance for risk when it comes to investing, made it just because of what I do for a living but I. You know to me I like having that trade off least unhappy. Happy to take some risks there. If I feel like that upside, it's going to be potentially worth. So with modern portfolio theory, it introduces a lot of fancy math in the form of variances and correlations in order to come up with this. Quantifiable, investing strategy that ultimately helps reduce risk while allowing the investor to achieve. Certain returns in. Maybe it works for some not I'm not dismissing it personally I. Don't use it, I don't personally subscribe to it I. Don't need it. I think honestly for us. In a really believe it's extends to to most people in our full universe is that is individual investors I think a more meaningful way to reduce risk. is to just extend your timeline like invest longer. So like Tom Gardner said a number of years back when we were. Working on Motley, fool one basically take your take the time line that you think you want to own any individual stocks you buy shares of starbucks and I plan on owning it for you know five years. Okay, we'll just double it. Cloning it for ten in all of a sudden right there. You've given yourself more time. Time is one of the big advantages we have is individual investors. Money managers don't have that advantage, Wall Street done generally handed abandoned, either, but if you can be patient and just invest in good businesses. That risk really starts to come down over time. There are plenty of studies out there. That show that risk comes down the longer you hold onto those stocks, which into me, just renders modern portfolio, theory, more or less not useful mean on things, not useful for everybody, but it's not useful for me and based on Chris. Question It sounds like a agree with what Brian was saying there. We think I'll add to. That is I agree that risk is really not that much of a consideration if you are saving for retirement. But once you are in retirement man, and just say like you know what the market's not I'm going to extend my time highs in ten years. Because you need to spend money in that situation, I think diversification is important. It's important to have assets that don't always move the same direction at the same time. For some fools. That's just as simple as keeping any money need the next five years in cash, so you're right out any ups and downs, and that can be fine. But I. do think it makes sense to have. A mix of investment so that right now, technology stocks are doing very well, and we hope that continues to do well, but we remember was that happened in two thousand from two thousand to two, and there were down for quite a while anyone who retired in one, thousand, nine, hundred nine, or so it was very happy to have some small caps value maybe a. A little international, some reits to ride out the storm Yeah I think we talk about that often like recognizing where you are as an investor in life, are you in the grow your wealth stage, or are you in the protector stage, because they are two very different strategies, and we're all hopefully going to be in both of them at one point or another right? I personally and still on the grow your wealth stage I. Think we all probably are, but you will at some point get to where you need to focus on protecting the wealth that you've made so that you can then have that money to spend, and that definitely will dictate your investment strategy things that you're invested in and whatnot. Generally speaking I do like the idea for people who are just risk averse and have this notion that investing is just too risky. I mean the fact of the matter is not investing as far away greater risk like not investing. You will never grow your money if you don't the best, so if if if risk is a problem, I think generally speaking. Along the lines of diversification idea that that bros. talking about him, he just invest in invest in SNP index fund is something that just follows the progress and p. you know you're going to be participating in and if you look at that over the over the stretch of time, their five ten twenty thirty years, I mean that trend does go one way. It, but clearly the older you get, the more you need to start focusing on protecting your wealth, and that will change the way you view things. Right next question comes from Alex from Alexandria if I buy Muny bonds from another state in my IRA. Is it still taxable and Alexander with who we have a bond on and we do have a bunch. I know Alex up super excited about having a bunch on in Alexandria to I can't believe I haven't been there. It's like two miles from my house, but we still haven't been oh i. know because there's a global pandemic going on and we. saw. Alyx if we buy me bonds from another state in my IRA is still taxable. Bro, help him out or her or so Muny Barnes. People Invest Immunity bonds because they're free of federal taxes and in many cases. If you're buying bonds issued by the place you live, they might be free of state and local taxes, so that can be doubly triply tax free. That's why people buy 'em. There are some times, however that if you own immune, abound outside of an IRA. Pay Taxes and this surprises some people. There's something called the minimum tax. If you buy immunity bond at a discount, and then it matures at par. If you buy a distress, Muny bond for like you put an eight thousand dollars, and you sell it later for ten thousand dollars as a capital gain. You'll be taxed on that. So, there are some times when you would pay taxes on media. Now, Alex is asking what if it's an IRA? Do I have to worry about paying tax interest. If it comes from another state and the answer is no, you won't have to worry about that. The only thing I would say is. Generally speaking immune bond already has built in tax advantages, so you wouldn't keep it in an IRA, unless there's the example of the stuff I was saying previously like for. It's one of those exceptions when him UNIBOND would result in taxes than you might WanNa keep it an IRA, but generally speaking. If you're going to buy Muny Bond, keep it out of an IRA. Next question comes from Boone. I just did my first. Roth conversion and looked at that old account for the first time in. There was the expected dividend producing fund I remembered, but there was a stock chesapeake energy that I had completely forgotten about since I purchased the stock in two thousand, six fifteen. It's down way down like eight point five percent off the purchase price. What should I do with it now? It's in a tax deferred accounts so I. Don't think the loss is realized until I. Start to pull money out of the account and that might not. Not Be for fifteen years current value of all my shares will be about one percent of the value of the account after the conversion. Do I sell in the very little value? I had left and depend on E. Trade to keep up with lost for me or should I hold on based on the slim chance. The stock will be worth more in the next ten years. Oil Stocks do act unusually on occasion, only oil stocks. Stock everything else makes that usually. Chesapeake has been really. Interesting Story to follow and frankly. I don't I. Don't know that I would look at it today. As a business that I'd WANNA own so typically if I. You know I think it was yet idea. Didn't sound like a position are actively building united investment didn't work out. I mean that that happens to all of us. We don't get them all right. We have a philosophy here at the full. A lot of do we like to? Water flowers and pull the weeds, and that's just a nice way of saying. Add to our winners in to get rid of losers in. This I think is more than likely slated to continue being a loser I mean. Chesapeake has lost a lot of value. In it does sound like based on when you purchased this, these is absolutely busted I mean. There there are all sorts of reasons to sell one of them is if you thesis busted and the reason why you invest in the company is is no longer the case, and I would he probably is the case with Chesapeake so to me like you know, you could sit there and let it go, but but what's the goal trying to get back to even, or are you trying to get back a couple of bucks for me a lot of times? I'll I'll take a little opportunity here and there to just go ahead and pull those weeds sell it. Be Done with it. In even though it's just unique out a little bit value there, you can still take that money and do something more productive with it. So. Yeah T to me. I can't tell you to buy or sell obviously, but I can certainly understand. Selling in this case, but I you know. As as oil and natural gas energy can can turn around. This is going to be one that has a lot of headwinds in in. You might be waiting a very long time to to get any of this money back. I point out here that I it seems that maybe boone has a slight misunderstanding of how taxes in aries work because he talked about realizing the loss when he takes the money out and trade keeping track of the loss for him, it sounds to me that he thinks that he can write the loss off whence he takes the money out. That may not be the case, but just to be clear. One of the great benefits of an IRA is you don't pay taxes on the gains, interest and dividends from year to year. But. One of the drawbacks is. You can't take a capital loss on that as well so there's really no no way to benefit on your tax return from this loss. Next question comes from Benjamin. You recommend seeing a fee. Only financial adviser for check in every so often I know there is the Garrett planning network and others to help find an advisor. But what questions do you ask? And what answers do you listen for when trying to find one that is worth his or her one hundred fifty to two hundred fifty per hour. So I would say start first with asking yourself some questions. What are you looking for? You could go for the whole launch. Lada where someone is managing your money analyzing retirement plan helping new save and a five twenty nine. Maybe even doing your taxes with some financial planners do help with the state planning, or are you looking for something more targeted? You just want advice about am I saving enough for retirement, or are you close to retirement? You're like I just WanNa make sure that I'm doing right when terms like choosing my Medicare plan and claiming social security at the right time, so first of all just be very clear of what you're looking for. Then if it involves investments in any way, you WanNa, make sure that you find someone who is at least in the general same area philosophically and I say this, because many financial planners are hardcore index. And if you come to them as a motley fool, listener member with a lot of individual stocks. They may say okay. I'll give you some general asset allocation guidance, or they'll say I don't care if you like to pick. Stocks are not my advises, sell the stocks and go to index funds, so you want to make sure that if you're gonNA, ask for any sort of investment. Advice that you wanna find someone who's someone somewhat at least aligned for what you're looking for. Once, you've got that then. Just asked some of the typical stuff. You might expect so credentials certified financial planner. Are they a CPA either their personal financial specialist. How long they've been in the business. There are lots of people who. have not been in the business very long. Even though they're not young people, a lot of people choose financial planning as a second career, which I think is great, but just because someone may be look like they're in their forties or fifties. Sixties doesn't mean they've been in the business that long, and you WANNA. See if they've worked with someone like you right so if you have. Maybe. You have a large amount of wealth large income huge portfolio. You WanNa make sure that they have experienced with dealing with those issues, but on the flip side to if if you have, are you know middle income, decent size portfolio, but nothing too complicated. You don't WanNa. Go to someone who's used to dealing with someone who's wealthier partially because those people charge a lot more. You want to find someone who's kind of a little more lined up with what you're doing. Then make appointments with three folks. All of them will do get do free. Get acquainted means, and you're just looking for someone who you feel comfortable with. Since, you mentioned Garrett Big Fan of the Gary Planning Network and other is is not for the National Association of Personal Financial Advisers. But Garrett on their website has a how to choose an adviser section. Just Google attitude visor Garrett Planet Network has a great chapter from a dummies book that they wrote about how to choose adviser, and they have a good questionnaire that you can print out in US asking lots of good questions of financial planner. It's tough. Choosing a financial planner like my mom just went through that Bro! Is You know and she didn't really have a lot of options in Boise Idaho. Maybe two and one of them, she I never called her back, and never got back her, and the other one was just so busy just so busy, and just she just never. It's it can be rough. Finding a financial planner can be I. Think what we'll see is one of the consequences of this. Of the coronavirus pandemic. Just, like we are all used to working from home, many financial advisors and financial planners an now working from home. So in what they're doing is they're becoming licensed in more states. So, if you are more comfortable, working with someone over zoom remotely I think you don't have to stick with someone in your area. You can go beyond your locations, but you know some people don't feel comfortable that if if they're going to have someone managing their life savings, they want to be able to meet them in person. That's just a personal choice. All right next question comes from twitter. Is that right from sully what I hear? Okay? I just listened to the episode mentioning Your Weakness Two. Shopping carts and Tj, Maxx that me or you Jason. Accused me. Thoughts on the stock. If I had a war on Amazon, basket would be Costco TJ maxx Home Depot tractor supply. What would be your basket against online retail? That's funny. Well okay, listen I wouldn't have basket against online retail, because online retails where it's at. The whole idea. The whole idea behind the basket approaches to find a long term trend that you feel like the world is headed toward and so the war on cash basket, for example that was always one about people using cash war, traffic payments now with that said I get the spirit of the question some going to answer it because I do like some of these ideas. And I I would definitely include Costco in their in Home Depot's well. Home Depot gets a lot of my money. Doesn't, but they have a very loyal fan base of customers that just are happy to renew year in year out. So I love those membership models there, so costco and a Home Depot for sure you know I'm going to give a little shout at my wife Robin I. Know that she would approve of my adding target to the mixer. She hasn't been raving about targets APP and ordering on the APP the able to go to the store. Just pick it up right there I've talked with Ron Gross on more than one occasion about target and how this really has. Become a twenty first century resale right they're doing. They're doing everything online and in physical stores. What they call Alma Channel and then my fourth and I'm GONNA. Take this. You probably aren't expecting this when Alison. I'm GonNa Shock and all you. I'm ready. I'm ready Alta. We're going. Make up my I know my daughter's love. It ugly ugly Mug like this. What do I know about makeup? Tell you what. Get! A House with two daughters and a wife. That's what I know about make. There's a lot of it in an Ulta is a really really good business. They actually have a very nice diversified revenue stream. They've got the salon a`dynamic of the business which encourages people to go there they do have an online business. They have an augmented reality function there at where you can actually like. Try things on makeup to see how it looks. Mary Dillon just a phenomenal other adults of that's my fourth, their Ulta but they I appreciate the spirit of the question I like the idea I'm not saying this is the basket. I'm not tracking this basket in a not a not backing this basket, but in the spirit of the question if I had to develop. A basket, such as this one I think it'd go with those four. Yeah, I mean I guess you just have to think about what retail out there is something that you would still physically go to. Because the actual retail experience is being in the space is the experience and what you're there for? And I know I mean before Corona virus we I would go to target and just just couldn't believe how much money I had spent from walking through a few of the aisles. TJ Max is just a phenomenal business I mean what they've done through the years. Is really capitalized on the nature of the business, the advantage they have in that treasure hunt kind of nature like you go to TJ Max, maybe not necessarily looking for something, and then you end up finding a lot of things, and it can be a little bit lumping at times, but but generally speaking like management's a very good job of running that business, and they know how to exploit the advantage of experience. I think they're online game. Though I think they could probably get something going with online, and they just have not have not yet and so I. Haven't since Corona Virus for example. I haven't spent a single dollar there, but I continue to still shop at. Home Depot I. Think Yeah! We still shopping at home depot because we're doing. You know you gotta buy lumber somewhere. And I know my grandparents out in my my inlaws out in rural Virginia. They love tractor supply store, but that's not. That's not in where we live, but. Still New deck at the house there allison. I mean you, can you see? A big exposed beam behind me and some drywall work that needs to happen. Have lots of drywall work that needs to happen now though. Yeah Anyway get to that. All right next question comes from Matthew. I got married to my amazing wife nine days ago in a small Kobe nineteen wedding in our front yard after we postponed it from its original date in April all. It was definitely different, but still very special. My question is in relation to this wonderful event. My salary has been at a level that has allowed me to fund a roth. Ira I love the optionality of it, but after marrying my bad ass, wife are combined. Salaries are now over the limit that would allow me to fund the Roth. IRA does this affect occur immediately? Do I need to now open up a traditional. IRA and begin funding it or do I have until the end of the year. Matthew wants a Roth Bachelor party one last. Well Matthew I have bad news. When it comes to most things in taxes, your status and your age and things like that depends on where you are on the last day of the year, said if you're married on the last day of the year, you were considered married for the whole year. So that means if you contributed started contributing to a Roth IRA for twenty twenty. You need to call up your brokerage. Firm and re characterize that as a traditional. Now don't have any other traditional IRA, as it's very easy to do the back door, Ross which we've talked about before you can just google it or even when you call the brokerage, just say I want to do the backdoor. Roth and they'll tell you what to do. If, you have other traditional IRA as you can still do. It just becomes more complicated and you'll probably pay more taxes. So you, but you may not be totally out of luck and I should say that's only if you have a traditional IRA doesn't matter if your wife has traditional areas. One exception by the way of of what I just said. In terms of tax status and last day of the year is distributions from retirement accounts before it's age fifty nine and a half, you actually have to be age fifty nine and a half to avoid that ten percent early distribution penalty, unless some of the many exceptions that are out there exist. Right next question comes from Warren Warren Buffett. Maybe I don't know that's why I was thinking. He's asking about coq, so maybe maybe. Once James Opinion on coke. By? Or hold? Wants to now. I'd give buffet night give. Kiesel Warren of the same advice and I would say. For some I'm not buying it. Not Buying it I'm not holding it if I own it. I guess that means sell it. Even Atlanta Georgia person like you i. feel like it's almost sacrilege. I am pretty close to probably not being ever even invited back. But the facts are the facts. Okay, I mean you do have to look at the stock itself has been ain't bad stockton for the last five years. I mean I do understand why when you look at it what they do, I mean they have. Four hundred master brands, and less than fifty percent of them are the big global brands that are actually responsible for almost all of their revenue when I say almost only ninety eight percent, so it's a business. It's very reliant on on. You know a small portfolio of really successful grants. The problem is now. We've always talked about cocoa beans such a great distribution story and that's true. They've got a distribution network. It's just phenomenal, but the problem is now. They're what they're distributing is is being seen as not so good for you in so you're seeing them. Have it into to essentially pivot away from what you know brought them all of the success for all these years. Years in soda and that that's not going to change I. Mean you're always GonNa have people to drink soda? People are not to drinking as much soda going forward in the numbers of just kind of the kind of shown that through that through the quarters in the years of Coca, Cola and Pepsi Pepsi. Has the salty snacks division, which I've always been very. Impressed by I, mean I love a good Cheeto, and so I mean anytime you can throw a bag of those cheetos in my Patriot Amok GonNa, turn it their coq. Interrupting, but I think this is also very important point. You tried the Jalapeno White Cheddar crunchy cheetos. The White Shit or so. I've tried to Jalapeno ones but I've not seen the white Cheddar White Cheddar Jalapeno crunchy cheetos. Don't get the puffy. The poofy ones are not as good, but the crunchy white Cheddar Jalapeno Cheetahs. them by them. They're amazing. I have to back. Pain you. I'll get those next time. I promise I, mean Eh. One. crunchy wants the puffy ones, so that people won't you're not? You're not seeing poopie. Who using poofy Joe Copy? We'll be Coca doesn't have that dynamic of their business. They don't have that dynamic to their business, and they've suffered from that Pepsi's Pepsi's outperform coca-cola over the last several years. It's not safe. Pepsi or coke get it back. I'm sure they probably can. But what I am saying is I think there are a lot of better ideas out there, and so I wouldn't be putting new money into Coca Cola and frankly if I did own it. I probably would look at selling it and you know if you've got a beverage company, maybe own starbucks. It seems like the science coming out in support of coffee, right? It's coming and telling you that these sodas. They're gonNA. Make you fat. Coffee, it could extend your life. It could help you live longer. SMART Mexican looking this a starbucks as well is. That sounds like study from the copy roasters of America. Do! Something that Chris Hill sent me the other day. that. We sleep at night. I'm glad I've been drinking coffee as long as I have God knows what I would look like otherwise. You're a good looking man. Rick. good-looking next question comes from. A. I'm trying to save money for my kid's College. Fund while the five nine is a great option. I'm limited to investing in mutual funds, which means at best I'm going to get what the market gets assuming I do some sort of low cost index fund and I be a capital F. Fool investor have been doing much better than the market in the last three years of being a member of. Of Stock Advisor Enroll breakers, even during this pandemic mess by listening to every full podcast and following David and Tom's and yours and every one else's in the full universe. My portfolio of about one hundred stocks is up here today. Thirty percent to the market's down five percent as of day as of today weighed down by three sluggish five to nine plants that are also down five percent each. I feel like throwing away money by using the five to nine, and not being allowed to select my own great companies in which to invest. What's more, my understanding is that the five to nine does not count as an asset for the kid when applying for student aid, but the coverdale does. So I come to you with a simple question. Can I have my cake and eat it, too? What if I wanted to use the coverdell to buy individual stocks? Until the child is nearing college? At which point I then converted to a five to nine. This allows me to get better returns and avoid it being an asset for financial aid and get the favorable tax benefit. So, chose this question, because first of all Dune does a good job explaining the benefits of the coverdell over the five twenty nine, you can buy individual stocks. You can buy and sell them all day long. We recommend that, but you can. Whereas with the five twenty nine, you can only make two changes to the investments a year, and it's all mutual funds. So. That's you did a good job of explaining that. I will point out with the coverdell. It's gotta low contribution limit of only two thousand dollars a year, so for some people save more for college, but they can max out to cover it out, but then put the rest in a five twenty nine. One thing that doomed does not have quite right. Is The financial aid treatment the financial aid treatment? Coverdale's and five twenty nine is identical. They're treated as assets of the parent, not the kid that is favourable from a financial aid perspective. It's not negligible doesn't mean it doesn't have any effect on financial aid, but it's better than an asset that is owned. By the kid. He can. Transfer money from the Coverdell to the five twenty nine. If for some reason, he decides to do that, but you can't transfer it. The other way around so were convinced to try out the covered. You have money in a five twenty nine. You can't move it from the five twenty nine. To the coverdale. What other interesting thing that he pointed out is that he is doing very well with his investments, and he owns about one hundred stocks. We get this question a lot. Either on the show, or on the full live that we run every day for members of full services, and that is how many stocks should I own, and if I owned too many are not just owning index fund watering down my returns, but here's an example if someone owns a one hundred stocks is still crushing the market. Idol last question comes from Cameron thoughts on the valuation of Stone Co in light of the corona virus for a fragile country like Brazil. This could be the tipping point after so many other headwinds. But how does that affect stone? coz Business Jason I. Don't even know what Stone Co is. What is still business? Yes, don't Coz a payments company that's focused on Latin American markets in Brazil and particular in so I guess it could be. Draw you can draw a parallel to to a with square through pay pal at, but generally speaking I mean it's payments. Company focused on Latin America. Primarily Brazil. Is the big money making market kind of like Marco Libra, they're. In I, I, it's a it's. A NEAT opportunity, gained a lot of headline recently, when and it was, it was seen that Berkshire hathaway. Warren Buffett's company Berkshire hathaway taken a five percent position in the company, which is pretty considerable i. Think in the near term. You have to acknowledge the fact that. They're gonNA, be some real headwinds in in Brazil particularly because of the pandemic I mean. The flip side of that is role in same boat kind of in that regard. The entire world is dealing with it, so it's not specifically you know it's. It's not particular to one economy or one country some. To get hit harder than others I, do feel like Brazil. Be at a place where they can recover from this given You know some of the other businesses in the area. I mean that that that I think is. Who knows ultimately how? That's GONNA shake, but generally speaking. I think the move away from cash towards cashless. Transactions in and financial software that's not stopping if anything, this hastens that which which is what I think, Cameron's talking about there and for a company like stone. Co, neither are other companies in the space pags bureau in roquetas libra to but you know moving money around is a big big market opportunity, and there's nothing that says they won't be able to expand well beyond the Latin American markets, too, so I I'd say cautiously optimistic I mean I
I Control The Stock Market
"I, control the stock market. No, I don't control the stock market. That's what Dave Portnoy. This guy who apparently sold barstool sports, a sports website I don't even know what it does. I don't go there. I'm not a big sports guy. But he sold this thing for four and a million bucks, and he's now fancies himself a stock market guru. He says he's making fifty one hundred thousand dollars a day in the market. He says stocks always go up. shortsellers should be investigated by the he's like. He's such a sign of the top I. Only direct you to his twitter. Feed Dave, portnoy check it out, but he tweeted. Earlier this week he's he's always saying things like I got the stock market in my back pocket I. got this stuff I'm better at this than Warren Buffett of this kind of stuff. And this time he says I control the stock market. Now obviously Dave Portnoy. Does Not Control Stock Market. It's just a further sign. Things people say at the top now. You'll never catch me calling a top. But these are things that people say at the top. This is the kind of stuff that happens when markets just go up up and as I'm talking to you. What's going up? Well, stocks, bonds, metals and volatility
"buffett" Discussed on Rolling Stone Music Now
"Am Brian Hiatt in this is rolling stone music now. Feels like we could all use a little escapism right now, so it seemed like a decent time to play my recent interview. Jimmy Buffett who has a new album out called life on the flip side, but we kind of talked about this whole career going back to the earliest days we talked about everything from his friendship with Hunter S. Thompson to the fact that Bob Dylan has named Jimmy is one of his favorite songwriters in the two of them actually spent time together in a boat one day. Got High and then later, Kimmy met doing again and it was a very different experience. We spoke about his prowess businessmen, and how that relates to his artistic life. We spoke about the future of concerts and a whole lot more. But he started talking about that new album life on the flipside. Let's hear what he had to say it. Take it chronologically when we started. Thank you about doing an album. We haven't done one in like seven years, and there were two things about that I didn't know where the album was still be viable dinner out. She'd be uploaded likelier to songs, but We still are playing hand, and we've got a great little studio down in Key West and my creative side have been working in musical theater with the show on Broadway and then touring show, so I was working on that a lot actually rewriting songs and stuff like that. You know doing changes. So, once, that was put to bed, I said. We need to do an album. And we had some good songs and ideas, and so I concentrated on writing. This is like a year ago. So and we said we're GONNA I'm just GonNa concentrate on writing these songs getting some other go to people wingman that I. WE WOMEN I use. The right will just concentrate on that and we want to go to key west record. And I want to go to. Cuba shoots album carbon because I got a friend of their Roberto solid whose photographer, but I thought life on the flip side was referring to the Gulfstream and having spent so much time in Key West myself and having a family. History of my grandfather was a say it was. You've got into my dad. Sailing in and out of Havana harbor, so that was originally it and then life will the flip side also the tongue in cheek was those people remember? Forty fives will remember. There was a flips out those that will will ask questions, so that was a hall initial thought process, and then along comes to pandemic and the title. mean, it's amused again away, but he never supposed to be that but. The solves when they came out. Chris Blackwell's dear longtime friend and Yo- for what he is input is very valuable to be in this whole process. When I sent it to him, any played at, he said yes. Scott that Jimmy thing going. He said, but in only black way said, but there's a sharpness to it. Our yeah, there was a little sharpness through. He picked it up right away so now when you hear all the whole album together. I think that it's doing its thing. You know when I'll make a record I. don't make it from me once it's done. People can interpret whatever it is. They think I'm saying aware whatever it needs to them to me. That's what a collection of songs on an album because I'm still an album guy and I wanted to be an AL, and I did the sequence myself. And when you sequence things on a record, I only know one way to do it in that slack. Alab show is only a few tricks that should do. It's about energy, and it's about recognition so. I got enough songs that people recognize that they can sing along with so when it before. When he did a new album, you can never put borking songs added to a show. They'd walk out, so you always try to pick. The would fit into what was working before. So that's the same way when we did the songs that we did them in Kia. We cut all the tracks and five days in Key West we were. We were hungry to get in the studio. And you know vibe was going, and you just go with, and so when that happened in a sequence that I use that energy and there there was no recognition because. The song so. But I just wanted to take that energy like it was sentenced to maps. That's how I did that makes sense. How has your songwriting process change ears? I think tend to use collaborators, maybe a little bit more since pummeling, and for a while. It's not a recent thing A. How's IT changed? Since say like their early seventies like what's been the question in your process. It's changed in the way in the beginning of anything like I didn't call right with anybody because I. didn't know anybody else you know you. Nobody really was was around and. People were listening so when I got to Key West, and the very first time would jour-jour Walker drove me down there and I fell in love with us and move there. You know I'd have like a really bad years in Nashville, but I was still right, so I came to key west with a little bit of luggage and a lot of songs, and that environment being in there, and then soaking up the cultural aspect of from pirate days to the writers to you know the tolerant lifestyle. That island had you know there was the navy? There was a gay community. There were hippies there were. Just I fell right into it and took songs. There and I think I soaked up a lot of that. When I wrote those songs which we did. This album I went back and listened to those first three albums a lot. Because that was the previous anything else happening where I met people that are wanted right with or other people Mac McNally wasn't around in and out here in your pretty much co riders on a lot of stuff is will kimbrough and and then now I ran into Paul Brady when we run Ireland credible writer in so none of that was happened, so you kind of you had your own stuff there and a lot of it, and I had enough to almost made three albums. In those we albums were the songs I went to key west and I wrote a few there, but I would save seventy five percent of them were written in time period when I was. I was working down there. I'm working in bars and you know when working on the coffeehouse tour, you know you start out like in the Carolinas or you know he'd go to. New York and do the bitter end or something, but. There are a couple clubs Florida boy. When I got to go to Florida, you got very excited to go down there. A lot of that writing was done and coconut grove when I played there. I forgot to key west him. They moved in with me and. In Ja did I went back and listen to that I went. We rank us. I got him a bicycle listened to the ad and listen to what we're doing. New All grow around town. Listen to what we did back then, and that's where I got the idea. White Sport coat and a pink crustacean was the first ABC album and I want. Put on a sport coat and. Go to go to Cuba side and that was. A we're one on that Alma or one of this house. I mean when you when you think about what you put out between seventy, three seventy four. Is Crazy if you could go back and tell that guy from nineteen seventy three all the things that happened to you since what would he maker? Hours on.
Capital Allocation with Blair Silverberg and Chris Olivares
"Blair and Chris Welcome to the show. Thank, you good to be here. We're talking about capital allocation today and I'd like you to start off by describing the problems that you see with modern capital allocation for technology companies. I'm happy happy to start there. So I think it might be helpful to give. The listeners, a little bit of our backgrounds so I was a venture capitalist at draper. Fisher Jurvetson for five years I worked very closely with Steve. Jurvetson and we were financing are very MD intensive. Technology projects that became businesses things like satellite companies companies that were making chips to challenge the GP you new applications of machine learning algorithm so on and so forth and I think the most important thing to recognize is that the vast majority of technology funding does not actually go to those kinds of companies. The venture space is a two hundred fifty billion dollars per year investment space. The vast majority of the capital goes to parts of businesses that are pretty predictable like raising money in in investing that in sales, marketing and inventory or building technologies that have a fairly low technical risk profile, so the vast majority of tech companies find themselves raising money. From a industry that was designed to finance crazy high technology risk projects at a time where that industry because technology so pervasive you know really do the great work of of many entrepreneurs over the past twenty to thirty years, technology is now mainstream, but the financing structure to finance businesses not has not really changed much in that period of time. Yeah, and then I guess I'll talk a little bit. My my background is I came from consumer education sort of background, so direct to consumer, thinking about how you use tools and make tools that ingrained into the lives of teachers, parents students I was down in the junior class dojo before starting capital with Blair. We were working on the Earth thesis He. He was telling me a lot about this. The the date out. There exists to make more data driven in data rich decisions. How do we go software to make that easy to access in self service and sort of servicing the signal from the noise, and we kicked around the idea and I thought that they were just a tremendous opportunity to bring. What Silicon Valley really pioneered which is I think making software that is easy to use in agreeing to your live into kind of old industry fund raising capital Haitian. The kinds of capital allocation that exist there's. And debt, financing and different flavors of these. Of these things say more about the different classes of fundraising in how they are typically appropriated two different kinds of businesses. So. You have the main the main groups you know. Absolutely correct, so there's. Equity means you sell part of your business forever to a group of people and as Business Rosen succeeds. They'll get a share in that. Success and ultimately income forever. Debt means you temporarily borrow money from somebody you pay them money, and then at some point in time that money's paid back and you all future income for your business, so equities permanent, not permanent. If you think about how companies are finance like. Let's take the P five hundred. About thirty percents of the capital that S&P five hundred companies use to run. Businesses comes from debt. In the venture world that's remarkably just two percent. And the thing that's crazy is this is two percent with early stage seed companies, also two percent with public venture, backed companies in places like the best cloud index, which is like a one trillion dollar index of publicly traded technology companies started their life, and in with injure backing many of them SAS companies, these companies, also just two percent finance with debt, but nonetheless within these these classes, the reason it's obviously economically much better for a business and pretty much every case to finance itself with debt because it's not. Not It's not permanent, and it can be paid back. It's much much cheaper to use debt. That's why you buy a house with a mortgage show. You know you don't sell twenty percent of your future income forever to your bank help you buy a house, but the reason that people use equity comes back to the risk profile so just like. If you lose your job and you can't pay off your mortgage. The bank owns your home. Same exact thing happens with debt in so restorick Louis, if there's very low. Certainty around the outcome in typically early stage investment you're you're doing a lot of brand new are indeed you have no idea if it's GonNa work you cope. You know over time that you'll be successful, but there's really quite a bit of uncertainty equities a great tool because you're. You'RE NOT GONNA lose a business, you know everybody can basically react to a failed. Are Indeed project. Decide what to do next had saints. Equity is kind of the continent tool for high technical risk, high uncertainty investments, and then debt is basically the tool for everything else, and it can be used as most companies do for. Ninety percent of The places that businesses are investing so if you're spending money on sales and marketing, and you know what you're doing and you've been running campaigns before. That were successful, very. Little reason you should use equity for that if you're buying inventory if you are a big business that's. Reach a level of success that on. Means you have a bunch of diversified cashless. Coming in businesses might take out dead on business kind of overall, so it's less important what specifically you're using the money for, but it's important to recognize that most companies are financed roughly fifty fifty equity versus dead, just just intra back companies that. That are kind of uniquely Equity Finance. Scaling a sequel cluster has historically been a difficult task cockroach. DB Makes Scaling your relational database much easier. COCKROACH! DVD's a distributed sequel database that makes it simple to build resilient scalable applications quickly. COCKROACH DB is post grass compatible giving the same familiar sequel interface that database developers have used for years. But unlike databases scaling with Cockroach DB's handled within the database itself, so you don't need to manage shards from your client application. And because the data is distributed, you won't lose data if a machine or data center goes down. cockroach D is resilient and adaptable to any environment. You can hosted on Prem. You can run in a hybrid cloud, and you can even deploy across multiple clouds. Some of the world's largest banks and massive online retailers and gaming platforms and developers from companies of all sizes, trust cockroach DB with their most critical data. Sign up for a free thirty day trial and get a free t shirt at cockroach labs dot com slash save daily thanks to coach labs for being a sponsor and nice work with cockroach DB. The capital that is being steered towards a recipient. It's often originating in a large source, a sovereign wealth fund or family office in it's being routed through something like capital allocators cater like a venture capital firm for example or a bank. How does this capital get allocated to these smaller sources? What is the supply chain of capital in the traditional sense? You know it's kind of funny to think about capital and things like the stock market in the form of a supply supply chain, but this is exactly how we think about it so at the end of the day. Capital originate. In somebody savings, basically society savings right you. You have a retirement account or your population like you know in in Singapore and Norway with a lot of capital, it sort of accumulated from. From the population and these sovereign wealth funds, or you're an endowment that's you know managing donations of accumulated over many many years, and ultimately you're trying to invest capital to earn a return and pay for something pay for your retirement pay for the university's operation so on so forth so that's Capitol starts, and it basically flows through the economy in theory. To all of the economic projects that are most profitable, inefficient for society, and so, if you step back, and you think about like how how is it that the American dream or the Chinese Miracle Happen? You know in in both of those cases different points of the last hundred years. Why is it that society basically stagnated? You know the world was a pretty scary. Scary place to live in up until about seventeen fifty, the industrial revolution started. Why is it that you know basically for all of human history? People fought each other for food and died at the age of thirty or forty, and over the last two hundred fifty years that it's totally changed. It's because we have an economic system that converts capital from its original owners. Diverts it to the most productive projects. which if they're successful, replace some old more expensive way of doing something with newer better way and so I think when when I described that like you know I, think most people can step back and say yeah, okay I. kind of see how capital flows through the system, it goes automatically to someone making an investment decision like a venture capital firm ultimately gets into the hands of the company company decides to invest in creating some great product that people love. Let's. Let's say like Amazon and then everybody switches from you know buying goods at some store that may or may not be out of you know may or may not being stock to the world's best selection of anything you'd never wanted. The most efficient price that's society gets wealthier basically through these these kind of steps in these transformations, but it's asking if you step back and think about it like nobody actually thinks it's processes as efficient as it could be like. We asked people all the time. People were interviewing journalists companies. We work with sewn. So how efficient do you think world's capital allocation is? I've never met a person that says it's pretty good. You know we're like ninety percent of the way there. In fact, most people think it's pretty inefficient. They think of companies like you know we work, and some of the more famous cases lately of of Silicon. Valley back businesses that that totally. underwhelmed disappointed. Their initial expectations and I think most people admit that the efficiency of capital allocation is either broken or nowhere close to achieving its potential, and so we basically we'll talk more about our technology and how we do we do. We basically think of this problem our problem to solve. There's an incredible amount of Apache inefficiency in how data that goes from a project or a company, ultimately funneling up to an investor flows, and so you know it's hard to place blame because there's so many people in the supply chain, but. But I think it super clear that if it's difficult to measure whether or not a project or a business is good at converting capital into value in wealth, and you know products that people want, it's nearly impossible for society to become really good and efficient at allocating its capital, so we're we're here basically to make the data gathering data transformation visualization communication of what's actually going on under the out of business as efficient as possible and you know from that, we thank some great things are going to happen to the economy. Goes a little bit deeper on the role that a bank typically plays in capital allocation. If you think about our bank works like let's take. Let's take a consumer bank that most people think about you gotTA checking account. Right, now you've got some money in that checking account. That account actually takes your money or dot and most people know this your dollars sitting in that account. You know just waiting around. You'd withdraw them. Your dollars are actually rolling up into the bank's treasury. There's somebody at the bank working with the regulators to say hey, how much of this money can we actually put into things like mortgages, commercial loans, all of the the uses of capital that society. Has In some some effort to. To, move the world forward and make the economy efficient, and so those deposits basically roll up into a big investment fund, and there's ratios that regulators set globally that say those dollars needed to be kept in reserve, versus how many are actually able to be invested, but with the portion that's able to be invested. It's there to fun. You know building a house to fund a business back -Tory to fund sales and marketing or inventory procurement for some other business, and so a bank was was basically the original investment fund, and a bank has unlike venture funds and other sources of. We typically think private capital. The bank has tricky. Problem were any moment all of the depositors holding the checking accounts could show up and say hey. I want my money back and so that's why banks have to deal with reserving capital predicting the amount of withdraw and classically everybody wants her money at once at the worst possible time, and so banks have to deal with quite a bit of volatility now if you take an investment fund on the other hand. Totally totally different structure, so your typical venture fund will have money available to it for a period of ten years from you know typically these larger pools of capital. We talked we talked about so very rarely. Individuals are investing retirement savings in venture funds, typically sovereign wealth funds down that's. Basically pools of that individuals capable. Win One of these funds makes a commitment to a venture fund. It'll say you've got the capital for ten years. You've gotta pay back. You know as investments exit, but other than that will check in ten years from now. We hope that we have more than we gave you the star with and there there's no liquidity problem because the fun has effectively carte blanche to keep the money invested until some set of businesses grow and succeed and go public and make distributions so one thing that's fascinating. The Tappan in the last twenty five years is private capital capital in the format of these kinds of funds. Have just grown tremendously and so today. There's a little over five trillion dollars. Of private capital being allocated in this way to think like buyout funds venture funds so on and so forth. Funds don't have the liquidity problems of banks. They can make much longer term for looking investments. This is created tremendous potential to make the economy more more efficient by taking out the time spectrum. You know this is why venture investors can do things like finance spacex or Tesla. Really. Build fundamental technologies in the way that a bank never could so this is an amazing thing it. However leads to a very long. You DAK cycle, so the incentive goes down when you take out the time line over which investment needs to pay back. To carefully monitor and understand what's going on in the business day today, so it's pretty interesting thing about the different pools of capital. There's not not to. Make it sound too confusing, but I think everybody will admit that the financial markets are incredibly diverse complicated we track basically about fifteen different kinds of capital, and they're sort of pros and cons with each one, but you know a bank is one. A private fund is wanted insurance companies balancing as another. You've got things like ETF and public vehicles that hold capital so there's quite a bit of complexity and the the structure of the financial markets. All right well. That's maybe the supply side of Capitol on. All kinds of middlemen and all kinds of different arrangements, but ultimately there is also the demand side of Capitol, at least from the point of view of companies getting started which is. Startups or computer in later stage with the maybe they're not exactly considered startup anymore, but they're mature. These companies have models for how they are predicting. They're going to grow, but oftentimes these companies are very. Lumpy in terms of how their their revenues come in how closely their predictions can track reality. So how do technology companies even model their finances? Is there a way to model their finances? That actually has some meaningful trajectory. Sure so first. Companies you know need need a base think of all the places that they're spending our money and. We're pretty. We Do I. Think a pretty good job of organizing this and making it simple so when we look at companies and we can, we can talk more about how the the cabinet machine operates, but when we look at companies, we basically think they're only a handful of places of money. Get spent you spend money on. Short term projects that you hope proficient things, sales and marketing. Houston money on paying for your sources of financing like paying interest on debt, making distributions to your investors, and then you spend money on everything else and everything else can be designing software building products on, and so forth, and so if you break the demand for capital down into just those three buckets. And look at them that way. Some pretty interesting things happen. The first is for the short term investments that you hope productive. You can track pretty granular nearly whether or not they are, and we'll come back to that. For paying back your investors, you sort of know exactly how much you're paying your investors so a pretty easy thing to track, and then for the operating costs you know most people will help us. Apax, that you're paying to keep the lights on things like Renton the your accountants, the CEO salaries on and so forth these are these are table stakes expenditures. You need to stay in business and so. Amongst each of those three things, there's different things that you wanna do to optimize and I'm happy to go into more detail sort of go through each one. If you think that'd be useful. Yeah Bliss a little bit more about about how these companies should be a modeling, their revenues are that is meaningful to model their revenue so that you can potentially think of them as targets for for capital allocation so. If we think about. Understanding what company might be a viable recipient of capital? How can you accurately predict the trajectory of that company, or or do they? Would they present a model? Would they develop a model good through a little more detail? How a company would serve justify? It's need for capital. So typically what what most companies do and this is not terribly useful or accurate, but I'll tell you what most people do I mean by the way like how central the entire economy predicts, predicts demand for capital works like this. Companies take. Their income statement on their. Balance Sheet historically. And they they basically have this excel file got a bunch of you know, rose and have different things like my revenue, my you revenue that sort of linked or my expenses that are linked revenue Mukasey could sold so on and so forth, and they grow each of those rose by some number that they hope to hit so if you want your revenue to double next year, you'll say my revenue one hundred dollars today I wanted to be two hundred. Hundred dollars twelve months from now I'm just GONNA draw a line between those two points and every month. There will be some number that's on that line, and that's why monthly revenue I want my expenses. You know everyone knows. Expenses are going to have to go up if my revenue goes up but I don't want them to go up as much as my revenue, so I'm going to draw a line. That's you know somewhere less than a doubling. and. You pull these lines together on one big excel file and there's your you know they're your corporate projections. In general, this is true for big companies small companies, but that's not actually how. Company revenue works because if you go back to the three categories, we talked about before, and you just focus on the one that talks about the short term investments. The. Way Company Revenue Actually Works is a company this month. Let's say they spend one hundred dollars on sales marketing. Well. They're hoping to get a return on that sales marketing, and so they're hoping that in the next you know six months. That's paid back. Twelve months that's paid back. You can actually track every time they spend money on sales and marketing. how quickly it gets paid back so it's that level of precision that can accurately predict revenue, and so what we do is we basically just get a list of every time? Money was spent on one of these short-term investments, so you sales and marketing for for an example, and then we get a list of all of the revenue that was ever earned. And we attribute between both of those lists causing effect. And we do that using a bunch of techniques that are pretty commonplace in your typical data, company or machine learning company. We use some math things like factor graphs. We use simple kind of correlations. We have You know a whole kind of financial framework to. Guess. What attribution should be because you learn a lot as you see different businesses and you see a bunch of different different patterns, which you can basically cluster on, but it is this linkage between spending on something like sales and marketing emceeing seeing revenue, go up or down, but makes or breaks a business, and you want to look at it and I is. Not a bundled. Entirety which is how financial projections are typically built? Okay, well! Let's talk a little bit more about what you actually do so if you're talking about early stage technology companies. Describe how you are modeling, those companies and how you are making decisions as to whether they should receive capital. When a company comes to capital they they come to our website. They sign up for this system that we built which which we've called the capital machine. And the first thing that they do is they connect their accounting system their payment processor typically, so think like a strike, and then sometimes they'll provide other things like a pitch deck or a data room, or whatever other information they have prepared. The system pulls down. All of the date in the accounting system and the the payment processor, and we look at other systems to these are the two key ones that all all dive into detail, and so, what ends up happening is from the accounting system. We get a list of all the times. Businesses spend money on these things like sales and marketing that we were talking about before. From the payment processor we get a list of all the revenue transactions in crucially we get it at. The level of each. Each customer payment, and so you know we scrub I all we really care about is having a customer ID, but once we have data at that level. We can start to do this linkage and say all right look. You know this business spent. A million dollars on sales and marketing and March of two thousand eighteen in April of twenty eighteen, and we saw revenue grow by twenty percent. That was a pretty substantial chain. You know what actually happened here. You can typically identify the subcategories of sales and marketing and start to do this link between these two, and this is really the you know the magic behind our our data science in our team pairing with our engineering team to figure out this problem and solve away that is, that's robust. Bud once we have these two data feeds, and the system goes through, and does all of these attribution. Populations were able to present that back to accompany a pretty clear picture of what's going on, and so we'll say things like hey. Your Business is pretty seasonal, and in the summer is when you're typically more more efficient at converting your sales and marketing dollars into growth so I, you want to finance growth in the summer. The second thing is only about eighty percent of your businesses financeable. There's twenty percent where you might not know it because you're not looking at this level of detail, you're busy building your business, which is exactly exactly what you should be doing, but Twenty percent of your businesses, not efficient. You're spending money on on your sales and marketing categories, product lines, and CETERA that just shouldn't exist and so if you get rid of those. If you double down on the part of Your Business, it is efficient. Then we predict your revenue will be act fifty percent higher, and we'll tell you exactly how much money you need to invest to raise money to to raise the revenue by fifty percent. We give you a bunch of charts that allow you to see how history and projections merged together and dig down. Inspect how we do that linkage to make sure you agree, but. This is what the capital machine does at its core. It Converts Company data into a fully audited completely transparent picture of. How business works where it sufficient where it's not efficient. And then that's where our technology stops, and where balanced she comes in, and so we then take this information, and we make balancing investments directly in companies, and so primarily at this point we lend money to technology companies that we see from their data are eligible for non dilutive funding. We make capital available to them directly. We basically allow them to access it through the capital machine. We use one system to communicate changes to the business. No keep both sides and form so on and so forth, but this is the kind of analytics layer that's essential to making these capital allocation decisions more efficient, and so I think you could imagine a day at least for us in the not too distant future when it's not just US using our balance sheet in this tool to make investments, but in fact, just like excel, every investor can benefit from a similar level of analytics and transparency, as can companies by getting more accurately priced faster access to capital less friction so on and so forth. Get Lab commit, is! Get labs inaugural community event. Get Lab is changing how people think about tools and engineering best practices and get lab commit in Brooklyn is a place for people to learn about the newest practices in devops, and how tools and processes come together to improve the software development life cycle. Get Lab commit is the official conference. Forget lab. It's coming to Brooklyn new. York September Seventeenth Twenty nineteen. If you can make it to Brooklyn, on September Seventeenth Mark Your calendar, forget lab, commit and go to software engineering daily dot, com slash commit. You can sign up with code commit s E. D.. That's COM MIT S. E. D.. And Save thirty percent on. Conference passes. If you're working in devops, and you can make it to New York. It's a great opportunity to take a day away from the office. Your company will probably pay for it, and you get thirty percent off if you sign up with code, commit S, e. There a great speakers from Delta. Airlines Goldman. Sachs northwestern, mutual, T, mobile and more. Check it out at software engineering daily Dot Com slash, commit and use code. Commit S. E. D.. Thank you to get lab for being sponsor. The inputs specifically if you think about a model for determining whether or not, a company should should be eligible to receive capital. I'd like to know how the the models are built. The the data science models that you're building are constructed from the point of view of the inputs. So how are you determining or how do you like company comes to you? How do you turn that company into some structured form of data that you could put into your models and determine whether it's worthy of capital. Yeah I mean it comes down to what what the data is your down so when we talk to a system like striper transaction records system, you know that that's the revenue of the company now where things get interesting when we connect to balance sheets in penalizing, it's of accompanying really onto understanding. Weighing. What exactly these numbers mean, and that sort of where we made our pipelines were built from the ground up to give us that granular. Of A company's cash family revolutions. Where's the money going where they allocating? And it's savable greenway or you once. What do you understand that data through that Lens? That let's build pretty sophisticated financial models Linda. And you know as soon as you have the picture of Company You can really do a lot of flexible analysis on the back leg distributed computation. Come stuff that you would never be able to excel and quite frankly a lot of these companies don't have the stacking internally or really the tools to understand for themselves, so you'd be surprised it you know when we surface this analysis back to the company by virtue of just being transparent on how we're making decision how it is perceived their business, the signals that were uncovering. These operators the CEO's the CFO's that are really focused on building company. Really surprising. They're really making these insights really transforming. How they think they should have capital. Should invest growing business. Are there any? Sources of Third Party data that you can gather to improve decision making. There are at a macro economic sense, and so it's actually quite useful to look at public company performance and say hey. SAS businesses in general. Most people notice, but facilities in general are seasonal in the fourth quarter. Budgets basically expire and people come in, and they buy a bunch of SAS. Software and so to take concepts like that basically shapes of curves, signals and apply them to private company. Financials is useful. Crucially though there is no private company. Data repository of any kind like it just doesn't exist, and you know notoriously even even with small businesses. It's actually quite quite difficult to get access to any sort of meaningful credit data, and so, what ends up happening is these aw. These businesses. Give you a picture of their business directly as an investor and you have to interpret it directly, and that's basically how this works totally unlike consumer credit, there's no credit bureau that people paying so most investors are analyzing the state and excel. Excel notoriously breaks when there's about a million cells worth of data, and so we've got this great visualization showing our data pipeline, and it's basically a bunch of boxes, and there's a little tiny. Tiny box in the bottom of corner that's excel, and there's a bunch of other boxes across the entire rest of the page that are nodes in our in our distributed computations, but accelerate very very limited, and so it makes it impossible to actually understand what's going on in business from the source data, and it's at the source that you see this variability in this linkage between profitable capital allocation decisions in unprofitable capital allocation decisions. Describing more detail, the workflow so a company comes to you and they're going to put their inputs into the. Would you call the capital machine? What does that workflow look like in a little bit more depth? Yes when they come to the website, they creighton count much like you would on. Twitter facebook account. When your details your email, you terrify your email, and then you on what's recalling like the capital portable on there? You have et CETERA. Tools to connect your sins record and these are typical offload. So you know people are very familiar with you. You know you say hey, let's connect by quickbooks you in your credentials and sort of be as secure way, and you click okay and the system checkmark by your quickbooks in the system start pulling that data out of regular cadence and. Depending on what system you're connecting you of the characteristics of that's not go systems of record, and how much data you have you know. The data's available anywhere from ten minutes to a couple of hours later and you know once we have Dr. System, we run that through our partake analysis pipeline in the users as a company. You get you get charged. In Tableau kind of call it, the insight Saban's these refused that we think would be helpful for you as an operator company understanding about Your Business in separately. We also get views of that data that are useful to our our internal investment team. Whoever is looking to capitalization systems? Are there certain business categories that are a better fit for modeling in better fit for the kind of. Predictable capital returns that you can, you can expect with the investments that you're making so like you ride sharing or Gig economy businesses or some businesses. What are the categories that are the best fit? Say Very few categories don't shit from the from the perspective of of linkages, but they're certainly models at their easier to think through and easier to understand, but our our system can underwrite today A. Lease on a commercial aircraft, a fleet of ships and Insurance Agency ask company the most important. Thing about our system is that the financial theory that underlies it is very general, just like p. e. rate is very general, and so that's kind of sounds crazy like. A lot of. A. Lot of people say what what businesses the best fit for your your system and you know it's kind of like asking what businesses the best for Warren Buffett like Warren. Buffett is a generalist. In any business, and he has a framework in his own head to figure out how to make ship comparable to American Express our assistant has a very similar framework. It just operates at the level of transactions instead of at the level of financial statements, but certainly within. That framework there's some examples that are just easier describes I think like you know thinking through the fishing of sales and marketing something. That's a lot more obvious than thinking through like the stability in refurbishment of commercial aircraft parts, which is a key question you know. Pricing pricing refurbished parts, which is a key question if your financing commercial aircraft and Our team, the ambassadors that use the capital machine internally which we primarily do internally do a little bit of partnering with without the groups to to use this as well. These people are all specialists in some particular area, but it's crucial to understand. They're looking at the exact same chance as all the other specialists and all the other areas, so it's like literally the the Fast Company and a commercial aircraft will have the same series of charts at investors. Are there two two draw their conclusion? Is the question for Chris. Can you describe the stack of technologies that you built in more detail? Yeah Yeah. Of course on the front, we are react type script, xjs, you know everything is on aws, and in the back, and we're. We're all python, and in really the reason for that is if you're doing any serious machine, learning or data science today can't really get away in python stack, so we're all python them back in. We have flasks. As a as our API late here and That's the that's a high level. And get a little bit more detail about how the data science layer works. Yeah, yeah, yeah, of course, so we put on the dea into basically a data lake the that goes down into Ardito pipeline in that's all air orchestrated on top of each called airflow, and we use a technology called desk for are distributed computation, and I think that this is a good choice. Choice for us at this moment you know I see us doing a lot of work on. You know using a spark in other distributed technologies in the future and his team and it turns out that when we pull this data down organizing the data was really important to us as we build a lot of attractions to make accessing that data, really easy for quantitative analysts. Important central to our whole technology is that we're able to do a lot of different financials experiment very quickly on top of this so the the implications of that really cascade down all the way into. You know what technologies where choosing how we structure our delayed. Even even how strokes are teams, so it really is brought up locations across all product. How is it when you're analyzing company that you have enough data that it warrants a spark cluster because I can imagine? The financial data around the company. How can there really be that much data to analyze how you do surprised in a lot of these transactions systems taking up the companies have been around a couple of years and their direct to consumer. These data sets can be can be pretty large. You know we're talking about in the millions and millions and millions of transactions that were pulling down and storing. Storing and that just on a per company basis. You know that's not even talking about if we wanted to. Benchmarks Cross companies, and also if we want to do scenario analysis, so you know one of the things we was part of a pipeline is take this data, and through like nine ninety nine hundred thousand simulations to understand the sensitivity of different variables on the performance of Your Business and If, you're starting out with starting that already large. Sort of a multiplying effect. On how much data the system is the old process? is you go through those different stages? And, can you tell me a little more detail? What would a typical spark job? Look like for a company that you're assessing. Yes, so first episode is ribbon. Our our financial didn't ingestion parts, so we download something on the order of you know forty fifty bytes of Tim's action data for for a company. We have to do all the work to interpret and understand what that means in reorganized that data in a way that are downstream analysis and primitives can. Make sense of and use for useful analysis so really the first step at this point job is is transformed the datum some it's useful, and then there's all the work on what are the clusters in order to machines and analysis in the computational. Resources needed to run simulations. You know not not just say local computer locally owned of fall over the only about thirty to sixty four gigabytes of Ram what league, so that's where workflow comes in creating easier faces into data, clusters and being. Should you know when you run a job? You know when it fails. You know it's done. You know when the team can't okay. This part of analysis done I had intermediate date asset to do more analysis on now get back to work is a lot of the time we spend developing internal tools to make. One other thing that'll mentioned that I think's important is. A lot of the underlying technology in our data pipeline it's no different than like what a tableau or you need. Traditional BI business would have access to, but what's fascinating when you have a vertically specific domain so financial data in our case you can make a lot of interpretations about the date of the let you do much more intelligent things, and so for example we. Don't have to make your own charts as a user of the capital machine. We make all the charts for you can of course. As a business we work with. Give us ideas for charts. You can mock up your own. We we basically have an interface for for business. The I team's to to write some code if they if they want to bought when you have clients who are thinking about financial risk, financial attribution across all of the companies that we see distilling that down into a series of indicators that are detailed, but generalize -able, and then publishing that back to all of the companies that use the capital machine to run their own capital, allocation, decisions and access, external fundraising and capital. Some pretty amazing things happen in so it's only with a vertical view. You actually having these we, we call our data scientists Kwan's, but but actually having these people who you know typically are graduate level economists, thinking for the first time about using transaction level data in their analysis, which is notoriously not not available to to normal economists that you get the kinds of insights and analysis the actionable for businesses, and then in terms of the data pipeline that then means we actually store a bunch of intermediate data that's opinionated in that way, and that makes it much faster to access much easier to benchmark much more useful across a network of companies, versus just that isolated excel model that. Explains only one business. One thing I'd like to ask you about. Capital intensity so there are kinds of businesses that are capital intensive for example where you have to pay upfront for a lot of ridesharing rides, and you know as Uber or lift. His has known in much detail. You allocate all this capital two things to subsidize rise because you try to win a market, there's all kinds of other capital intensive businesses. How does capital intensity change? What makes sense with regard to the equity financing the debt financing that you are shepherding for these companies? That is a great question and be because of where you focus in your audience. You totally get the most financiers don't so. The first point exactly like you said. Capital intensity means a business consumes a lot of capital. It doesn't mean a business has a physical factory or plant or railcars, so it is absolutely true exactly like you said that there are a lot of tech businesses that are incredibly capital intensive. If you are capital intensive business that means UNI especially if you're growing, you need to raise a lot of external capital, and so it is even more important that your capital or a big portion of your capital base is not dilutive. That's that's just essential. Table stakes because what you see with these businesses, the ride sharing companies are great. Example is by the time one of these things actually goes public the early owners in the business on a very very very miniscule. KEESA that business, still if you contrast that to company like Viva Systems which I think is one of the most capital capitol efficient businesses in venture history, I think that this race something like twelve or fifteen million dollars total before it went public in a at a multi billion dollar market cap. So capital intensity. Is a synonym for dilution your own way less. Than you think when you exit entities even more important that you figure out a way to raise capital non ludicrously upfront. Some broader questions zooming out in in getting your perspective. Do a thesis for what is going on in the economy right now where you look at. The fact that We have. Obvious pressures to. Reducing the size of the economy through the lack of tourism, the lack of social gatherings while the stock market climbs higher and higher, and it appears that the technology side of things is almost unaffected by Corona virus is there. Is there a thesis that you've arrived at or or their set of theses that through conversations with other people, you've found most compelling. Sure the most important thing to realize about the stock market is that it discounts all cash flows from all businesses in the stock market to infinity, and so the value, the stock market about eighty percent of the value. The stock market is. Pretty far into the future like more than three years from now, and so if you believe that the current economic crisis and this is why there's always a. At least in the Western, world, last two hundred fifty years after an economic crisis. If you believe the crisis will eventually revert, and there will be a recovery, then it only makes sense discount stock market assets by anywhere between ten and twenty five percent. If you believe businesses fundamentally going to go out of business because of this crisis, that's a different story, but that explains why something as terrible as Kobe nineteen and a pandemic. Only discount the stock market by by roughly thirty thirty five percent in a in March, but that's not what's actually going on today as you mentioned and so stock market prices now have completely recovered. That is something that we think is a little bit of out of sync with reality but I. I mention you know we're not. We don't spend too much time about the stock market beyond that we just look at you. Know Private Company fundamentals. We try to understand what's actually going on in individual businesses across all businesses that are network to see what you know what we can understand, and you know what kind of conclusions we can draw, and so if you take that Lens and you actually look at what's happening to businesses due to Cova nineteen, it's fascinating. Some businesses like think the food delivery space have gotten a lot more efficient, so those businesses lot like ridesharing businesses back twelve months ago, there was sort of a bloodbath between bunch of companies competing in local markets to acquire customers all all fighting Google and facebook console, and so forth you subsidies drivers, etc.. That's essentially stopped. These businesses incredibly profitable, the cost acquire customers has fallen by more than half a lot of cases. The channels were slot less competitive, and so if you're running one of those businesses. Now is a great time to be aggressively expanding. Weird things like commercial construction businesses. They're actually a handful businesses that we've seen do things like install windows and doors and commercial buildings whose businesses have accelerated because all of these buildings are closed down. Construction project timelines have gotten pulled up. All of these orders are coming. Do in they're you know sort of rapidly doing it solutions? There's obviously a bunch of other businesses have been that have been hurt by by the pandemic, but our general thesis are we've studied. Pretty detailed way the Spanish flu in nineteen eighteen, you know. These things eventually go away. There will be a vaccine. Economy will get back to normal, and as long as we can stay focused on working through this as as a society and of maintain our our fabric of of kind of economic progress then. DESAGUADERO values today will eventually make sense just sort of a question of of win for the stock market, and then if you're if you're actually running business in thinking about your own performance in isolation, really being clear about is now the time to invest and grow my business now the time to be very careful with my expenses interest, get through this for the next year or however long it takes for there to be a vaccine. So the way to think about your company, if I understand correctly if I was to to put in a nutshell, is that. I think of you as a data science middleman between large capital allocators, and and start ups deserving of capital, so the the sovereign wealth funds the banks the I guess. Funds of funds. These kinds of sources are essentially looking to you for guidance on where to direct the capital, and you're on the on the other side, absorbing data and creating opportunities from these startups to source the good directions of that capital. Just wrap up. Would you put any more color around that description or or refining anyway. Yeah I mean I. think that at the core of what capital is is where the. Core Technology Ambler of sort of. The private market if you think about public markets today, you've clearing-houses like the New York Stock Exchange, and you have companies that provide analysis on top of that like Bloomberg, you know we see a tremendous opportunity to shift the paradigm where you know the place where all the financial transactions happen. is also the place that collects the data improvise information for those making these decisions and yeah, so I think capitals really at the center of making a transparent technologically enabled financial marketplace. Guys. Thank you so much for coming on the show and discussing capital, and I guess one last question is. Do you have any predictions for how capital allocation for startups will look differently in five ten years? Sure so! The first prediction. And this is happening now. I mean the the infrastructure is. In place both within. And others. Most startups fairly early in their life. Think is equity only way to do this and. So. That's a cultural shift. That's that's already happened. People are starting to ask that question. The second prediction is. Seed and series a funding will be entirely unchanged. After series. There'll be a bifurcation between businesses that. Are Really. Capital intensive gigantic rnd projects think like SPACEX. The series, B. C. d. e. enough are really about building and launching a rocket. Those businesses will by and large not. Turn outside of equity to finance themselves, but there's very few of those businesses. Pretty much every other business businesses that you see raising a series B. Serie C. Will like any normal business in the entire rest of the economy raise maybe half of that capital nine allegedly either in the form of debt. Royalty financing factoring all of the other instruments that normal companies use to finance themselves in the void delusion that will happen roughly three years her. Now that'll that'll kind of we'll see obvious obvious signs of that from very early very early base, and then the final the final thing is. Steve Case talks a lot about this. With the rise of the rest, he's got this great venture fund that invests explicitly outside the coast, so kind of the rest of America and we've seen that there's there's a pretty dramatic distinction between being a coastal business non-coastal business from capital access perspective, but there's no distinction from an actual performance perspective, and so we'll start to see some of the regional. Differences in bias sees around where capital flows, go away. And so I would maybe put that on a five year timeline like raising capital is actually much more predictable, much less biased, and that's great back to the beginning of our conversation. That's great for the economy I mean every project or business that can convert capital, two products and services that people love should get finance. No questions asked doesn't mean it doesn't matter what the color of your skin is. What background you have whether you went to college didn't go to. College doesn't matter. You have a business with data that can prove whether people love it
Fed buys more corporate bonds
"The Federal Reserve said Friday that it purchased $1.3 billion in corporate bonds in late June as part of its effort to keep U. S interest rates low and ensure large companies Khun borrowed by selling bonds. We fed bought bonds issued by several 100 large companies, including AT and T, Pepsico and Berkshire Hathaway, controlled by billionaire Warren Buffett. Combined with purchases from earlier in the month, the Fed has bought nearly 1.8 billion in corporate debt. If bond interest spiked, it would make it harder for companies to borrow by selling debt. Chuck's Iverson, ABC
Pete Buttigieg and Joe Bidens's Economic Policy
"Presumptive, Democratic presidential nominee Joe. Biden rolling out his economic policy today. He's going to travel the Pennsylvania near his hometown. Scranton the agenda slogan is build back better. His campaign team says that Biden will prioritize small business workers and plans to focus on inequalities that prevent minorities from reaching a fair economic plainfield. We're going to hear a lot more about the plan from Biden campaign surrogate. Buddha judge is going to the squad team and just. To remember that the broadcast news. What is it? Bring back better, a lot of alliteration for remember that quote from broadcast I can't remember what it was, but Yeah, BRING BACK! A lot of bs there. Build back better is the name of the former vice president's economic recovery plan. That is the work of task force between Biden and Senator Bernie Sanders the key idea. Bring critical manufacturing back to the United States with incentives for companies and seven hundred billion dollars in earmarked funding for government contracts for American firms and Research and development. The campaign says this will create eight million new jobs if that sounds similar to president trump's platform, it is. Thank you very much. Thank you all for being here. A. Last year trump signed an executive order that would prioritize American manufacturers. In certain federal contracts, the Biden campaign says trump's efforts are working and contracts to foreign companies are up thirty percent. Vice President Biden has said he'd raised three point eight trillion dollars by increasing taxes on individuals, making more than four hundred thousand dollars a year and reverse in corporate tax cuts. Now this roll today will include a speech outside Biden's hometown Scranton Pennsylvania and. And his one time rivals from the Democratic primary race remember that it was just a few months ago are out in force today to support the former vice president and his plan one of them join us on Squawk box, Mayor Pete, the former mayor of South Bend Indiana Peop- Buddha Jr here's Joe I'm just going to call you. Mayor Pete I guess we all just feel comfortable feel comfortable. Everybody does around here countering next radio. I'm going to so we understand the primary process, and you understand it as well as anyone and we've seen it on both sides. Sometimes, there is a tendency to move towards the. Basis with some of the programs, and then when when it comes to governing, maybe you become more centrist and I'm just gonNa tell you. Here's the headline for this mirror. A Biden to map and economic path delaying progressives, biggest plans and I think Kayla alluded to it that he's going to call for a moderate approach towards reviving the US economy. Is that how you see it? And is that the right prescription to win, but I think there's a lot of boldness and the level vice president. Biden wants to invest in America I. think that's not only progressive already, but it's something that people across the out. We're going to I. Think it's in keeping with Joe Biden's instance to bring people together, but I think it's also in practical terms. What makes sense early on? We need to invest in our own competitiveness. In order to grow your own, and in order to compete with increasingly powerful economic competitors like China, we need to make less dependence on Safai chains for critical goods and infrastructure light. We're seeing right now with armed soon which she's on countries like truck and we need to make sure that American workers come I to me that nets bedrock through what democratic are spout, but I do agree with you that you don't have to Iraq Democrats to see why this is a good at. was so in the plans were pretty expensive as you know. And it was pre pandemic, and it was pre-, twenty, five trillion wherever we are right now, so this is cost a lot and inflicted a lot of economic damage and. Hopefully we're GONNA. Come out of this, but it might take years so. I mean. Is there something to that that it's not the we're not in the same position to be able to maybe be as as as free-spending with some of the democratic programs. Do you think do you agree with that and? We're GONNA need to to try to pay down some of this that with our taxes. No Democrats go is one of the first to talk about deficits and the debt, but the reality is. We can't afford not to make these vestments score. We will see economy stagnate, and since we're in a moment of distort low interest rates, and since these kinds of investments every time America's none have paid off investing our competitiveness in our infrastructure in our manufacturing base. Frankly they have much irate return than tax cuts, so as economic stimulus goes. I think this is the right way forward. Of course we got to be smart about the investments remain, and of course you can't get something for nothing. But, if you look at the overall picture, where are headed? We don't have a choice and we can handle these kinds of investments if we make before it's too late to a the I think that lowering corporate taxes helped. Corporations, become more competitive. Bring money back I think it. It was somewhat responsible for what we're pretty good. Economic Times before the pandemic and terms of historically low unemployment rates across the board. And some of the deregulation. The vice president is going to reverse the at least a portion of the corporate tax cuts. Do you not think that that that that plan helped the economy, do you? Do you disagree that lower corporate rates were were a boom for the US economy, and it won't matter to reverse them. John, I'm very skeptical that those rate cuts should get hosted at credit. And by the way those rate cuts rent led directly to exploding deficits, and as part of the reason, why oddly enough not to be too partisan about this, but across my lifetime one hundred percent of democratic precedents seem. Deficits go down one hundred percent. Presences seem deficits. Go Up, but you can't get something for nothing. And will we gotta decide is what's a responsible at tat hats not deliver the kind of investments that make an economy. and. This isn't something we have to just use our imagination for we look at the evidence and the evidence across Merton. History is the one we're making robust vassals with responsible, but not excessive taxation, the gross but I. We've talked about it earlier that right now with where American businesses and how important it is to get the unemployment rate back down. It seems like not the most ideal time to raise corporate taxes now. We're going to need to pay down a lot of what we've spent. A and maybe. Rick Razor on wealthy individuals, but that may not raise enough either. Are you for a blanket raised in the marginal rate into what level? or What. What would you advise? Vice President Biden to propose for a marginal rate across the board. Well. I would advise him to look at the evidence and find levels of taxation. They're consistent with growth as they have been historically now, of course, in American history, the economy's growing much quicker under much higher marginal tax rates but I don't think we have to go back to what it was like in the in the sixties or seventies. Again. Period of in many of those faces product to depress looked online. Is You've got to pay for what you and we should be able to strike a balance in the United States, but what we can't do is continue with these deficit. Exploding tax cuts that we were told would pay for themselves. You can check. They did and now. That was before we got the situation. We are now the debts. It's why we need to make sure. We're looking at the investment side as well as the cost side what I really appreciate about the plan. That's vice-presidents laying out. Is it does? Mayor Pete just wanted to. We wrestle with this issue of taxes. All the time said it's one of the press. Two questions related to one is just simply the timing of a tax increase, and it's the question. We asked the vice president when he joined us now more than a couple of weeks back, and he said he would do it immediately. Even amidst this and the question I say is to the to the extent. There are small business owners out there right now. That are clearly struggling and trying to get up on their feet. Seeing a tax increase right in front of them. Just make the case if if that's the case you WANNA, make in terms of the timing. Of course there's going to be a look at conditions on the ground and a glass. Four months has shown us in really blunt terms. How quickly things can change and I know that a new administration will make sure that every step that takes this is consistent with what the right thing is to do based on what we see around us, but we also know is that small business will benefit from the kinds of investments that president housing. And that this country will be more competitive one and were not successful. When we're investing the foundations, no country can't get away with disinvesting in education in infrastructure and research the way we have, and for a very long and the longer you go disinvesting and all that. The the sooner it's GonNa catch to you for small and big business away, and you know we already reached a point. Where even when there were low unemployment rates, the American standard of living was not secure life expectancy down. It raises questions about how our economy has been lined up. This is a historic opportunity to make sure that it's working for more Americans and made just GonNa fall with with the other big debate around this table a lot. is about wealth, the the wealthy and philanthropy yesterday? Warren Buffett gave away two point nine billion dollars and. which is a great thing and philanthropy, and by the way has helped even during this pandemic in a meaningful way, but oftentimes those shares are never taxed as we all know, and so the government will never be a beneficiary and other taxpayers won't be a beneficiary of those successes. Do you think philanthropy should be taxed in any way well, it would make more sense for that to happen on the front end. Look, it's it's wonderful one. There are these major commitments such generousness by. Individuals, but we've also got to ask how things got so unequal in the first place, because if a little bit more that was making its way into a democratically guided process in other words, the kinds of Research and development that invent trillion dollar ideas like the Internet itself and Space Travel. Are we know our country is better off, and we gotta ask where the balances I would argue. Look thing about this. In the United States right now there is not one county, not one. Where a fulltime minimum wage were can't afford a two bedroom apartment time. There's somebody works for a living in a job fulltime. Can't afford to bed in the part. I would argue that if that were the case. If we had higher wages and more public investment, we wouldn't need to knots landing quite as much as we did. Mayor Pete the one thing that President Biden's plan has in common with President Trump says that it it really leans intimate in America and not just from a position rhetoric there looks like there are going to be real incentives real penalties to companies if they're not making things in America. Do you think globalization is dead? I don't think we have to choose between closing ourselves off investing in our own country on the contrary I think global. Market, we are more competitive when we are starting right here at home made in America is really news and the vice president's fine America initiatives. Really good news for us here. The so called belt where we know that we are Cape. Producing some the finest goods in the world, but there are so many loopholes or waivers in the system and. I think you all report it. You know. Australia's actually gone up an awful lot under this administration so I don't do this since. The president. Fighting. I view it as an opportunity for us to make sure that taxpayer dollars benefit American firms and workers first,
Top 10 Most Valuable Brands in the World in 2020
"Brands keeps doing them, so we'll keep talking about cult of Mac. Says the Brandon Valuation. Firm brands on. Has Put together a list of the most valuable brands today and apple is so close to the top. For the fifth year in a row, apple has taken second place. According to the report bested only by Amazon. The report says brand's values apple's brand at three hundred fifty two point two billion dollars. Unlike market CAP, which values the business as a whole this brand. Is designed to assess the value of the branding itself. Running through the top ten list Amazon I apple second Microsoft third. Google fourth visa round out the top five. Followed by Alibaba tencent facebook McDonald's. And Mastercard rounding out the top ten. Maybe, the weirdest part of the story. Besides this, actually being a thing is how the brands are categorized. Apple is actually the top tech company according to brands that's because the organization classifies Amazon in retail. Even while noting the hardware, it makes the e book video. Music Services. It offers and Amazon. Web Services. which is about as tack as you can get? Number two brands, but number one for Warren, Buffett. Well forty-three percent of Berkshire Hathaway's holdings, anyway, that is the word from Motley fool by way of cult of Mac. According to the cult Berkshire Hathaway's two hundred forty five million apple shares have increased in value by more than fifty five billion dollars since the start of twenty nineteen to be worth upward of ninety one billion dollars. Buffets firm is currently apple second largest shareholder with around five point, five percent ownership of apples publicly available stock. According to the report.
Why Learning to Say "No" Will Accelerate Your Success
"Welcome to another episode of Marketing School I'm Eric. Su and I'm Neil Patel and today. We're GONNA. Talk about why learning to say no will accelerate your success. Let's reframe this real quick and early days Neil when you're starting out as an entrepreneur. You would always look at the newest opportunities. And what would you do about those opportunities? I always said not always what most cases I said. Yes, and that's what ended up causing me to do one too many things derailing my focus and funny enough 'cause less success over time I think what Neil's also saying is a lot of us become more and more successful. You're going to have more and more opportunities coming your way, and you can either accept the fact that you're. You're drowning in opportunity, or you can do something about it and say no more and funny enough Steve Jobs said this in the past. He says what's really lead to apple. Success was the ability to say no. They said no way more things than they said yes to. And when he first came back to apple after he was fired, he shut down many different product lines, and that's just the basis of it. It's really saying no all the opportunities that you're drowning in. When you say no, and you end up focusing on the stuff that really matters. That's when you double down I was once talking to entrepreneur name Brian Lee, and he created a company called shootout with Kim Kardashian before that was legalzoom, and the most recent one was honest company with Jessica Alba. And I remember years and years ago I. Don't know Bryan while at all I. don't even know him really by interviewed him for my blog years and years ago, and he mentioned one thing that really resonated with me, and he said you need to have super laser focus only tried to do one thing at a time and the moment your growth slows down and you can't get it to keep growing. That's when you expand until then you just stick with what you're doing. Yeah more Buffett and Bill Gates when they first met I believe this is a story, or this wasn't when they first met someone albums. Like what's the secret to your success? They both wrote down one word on a piece of paper and flip it over, and they said focus was the main obey. And the other thing to do just to give more examples. You look at Zillow. You look at glass door. You look at all those companies it's who's the one guy that started all those companies again rich partner. Expedia, glass, door and Zillow, yeah, but he focused on each one. He didn't try to do all of them. At the same time, he took the domain expertise that he had is like I. Know How to build a two sided marketplace. I know how to take advantage of Joe I know that there is a gap in the marketplace attack that so he used the same thesis three times, but he didn't try to do them all at the same time and I can tell you. These guys are older and more experienced than I. can say Neal My. We're getting older. We're not up there yet with them. We don't have the. The experience that they have yet, but I can tell you as Neela I've gotten older. We've gotten better at saying. No, I'll say better than before, but still trying to get better at it. It's hard because we all have the shiny. Object Syndrome. And when you learn to say no, it'll make you really understand what you should be focusing on. Because there's so many opportunities out there. In many cases, we missed the ones that are the best ones because we say. Yes, to so many that we don't spend enough time uncovering the true potential of anyone, business or anyone, strategy or anyone concept, and the same goes with your marketing. Even in the air. Can I talk Omni Channel? Yes, you should go omni channel, but focus on one or two marketing tactics out once doom, really well before you expand into all in because there's not enough time in the day to do everything perfectly well, unless you have a massive team, the other thing is I would google the T. sheets, marketer, and really understand as a marketer that you should try to go deep on one. One thing and then you try to expand and get a little more breadth, but the depth is what you really want to folks when people talk about what Neal's known for Seo or what I'm doing for I think largely people was. This is weird, sometimes WANNA go speak at a conference. They don't know what to call way, so they called me an seo extraordinary and I don't know where the hell they got that from. The same problem yeah. Seo Eric. All right. Put into this box, but I guess that's what we know and Belize pisses me off sometimes when I'm lying. Put into a box, but you have to be okay with that because you try to be everything being nothing
Dow ends up over 450 points as tech rallies; Nasdaq closes at record high
"As investors followed a huge rally in Chinese markets, The Dow climbed 460 points, 1.7% the S and P added 1.5%. The NASDAQ had another record high close with a gain of 2.2%. Tech shares fueled this rally, with Amazon and Netflix among stocks hitting all time highs and shares of Tesla's shot up to a record high after several analysts upgraded the stock. Warren Buffett made his first
Warren Buffett and the Berkshire Hathaway Annual Meeting
"Okay. Let's talk about Warren Buffett and his comments at the Berkshire hathaway meeting. He talked for over four hours so I might not be able to get to everything in fact. I'm just going to get to a few topics that really stood out. And this is by the way. If you haven't listened to it you can go listen to it just Google Berkshire Hathaway shareholder meeting yacht. Yahoo Finance has it and you can find it on Youtube. And it's worth it. It's worth listening to Warren Buffett. Talk for four hours. Once a year it really is even if you disagree with every syllable that comes out of his mouth. It's still worth listening to. So I think one of the really big perhaps the biggest topic that he covered couple of weeks ago he became public that he started selling his position in the Airlines. And he put one slide up the beating that showed the first quarter purchases of equity securities by Berkshire hathaway including buying back their own stock but they made investments in equities of fourbillion. They sold two point two billion of equities and they bought back a billion seven of their own stock not really huge numbers for Berkshire but then he put up a slide. That showed in the month of April because the first quarter ends March thirty first right month of April purchases of equity securities. Four hundred twenty six million peanuts nothing for Berkshire. He was asked about it. He couldn't even remember what it was and he said I might not have done. It might have been you know. His his top capital allocation lieutenants. Ted In todd. He bought bags zero stock. We'll talk about that in a little bit and sold in the month of April alone. Six and a half billion including all the rest of the airline stocks okay. Why did he do this? Well he he put up a slide and he said you know it was not one hundred percent that's six and a half billion was not one hundred percent of what we sold in April. But you knows mostly mostly airlines said. I made a mistake and he went through the history of the position and if you look at the filings. He started buying these things in late. Two Thousand Sixteen. He said we paid. Oh I don't know seven or eight. Billion couldn't even remember how much to own ten percent of the four largest airlines starting at that time and then into two thousand seventeen you kept by and he figured that for seven or eight billion. He was getting a billion dollars worth of earnings that he thought was likely to go up over time and at that time he did an interview with. Becky quick of CNBC. And he said the airlines have had a bad century and they've had like over one hundred bankruptcies and it's been terrible and they've consolidated into four big ones. That are doing pretty well etcetera etcetera. And you know we want a piece of it and those four those top four American United Delta and southwest accounted for like eighty percent of the domestic airline capacity. So right there. It sort of felt to him. It seems like when he bought the railroads who had been through. I don't know about a difficult century. But yeah pretty pretty tough time over the past decades before he bought and then turned into a pretty good bet because they had consolidated down they had been through restructurings same type of a situation and they had some pricing power to and I remember hearing about that idea from the guys at allegany well run insurance company PUBLICLY COMPANY TICKER SYMBOL. Why the letter? Y and was by when Burlington northern was like I don't know twelve bucks a share or share or something like that maybe even cheaper and Buffett bought the whole thing of Burlington northern for one hundred dollars a share so late to the party but still thought it was a good bet and same thing he said we treated it mentally as if we were buying a business meaning as we were buying one hundred percent of a whole business and if you've heard him talk over the years they liked to buy one hundred percent of the business they liked by as much as they can once they liked to sing and like the hold it forever. That's their favorite thing to do. And you know this look like an equity position that he might hold effectively forever and he said you know the companies were well managed and all that stuff but now he blew out the whole position when the whole world he sold into weakness right. This is the guy who says be greedy when others are fearful while he's fearful when others are fearful because he's not buying anything and he sold this massive position and is not spending any of his giant hundred and thirty billion dollar pile of cash. So that's kind of unusual. And he said the airline business. I'll just quote a few little things he says. The airline Business Blah Blah Blah. I think it changed in a very major way is obviously changed. And he said these four companies are going to borrow tenor. Twelve billion. Each in some cases they're having to sell stock or the right to buy stock that takes away from the upside then a little bit after that he said. I don't know the two three years from now. That people will fly as many passenger miles as they did last year. In Twenty nineteen so in other words this business has changed so much and these companies are so deeply impaired that it makes no sense for him to continue to hold the equities. He's held things through bet. He's a publicly traded companies through bankruptcy. At least one right. Us G it was an unusual bankruptcy situation. So this really tells you. The buffet thinks that people have changed their their travel. Habits have changed and they're not gonna fly as much even when things are all opened up and who knows one would think over this time period. He's talking about two three years. Whatever that the corona virus will be a thing of the past? Nobody's worrying about it anymore. You know we'll see but I just thought it was really interesting that you know we find buffet just being really fearful not deploying capital and blowing out this position into weakness having bought it in the first place. I've never recommended an airline stock in extreme value. And I never will and I was shocked when he did it and I always wonder like how how going to work out but you know obviously not too well so the airlines and I here where he's coming from because the airlines I read today. One article said they're burning ten billion monthly as as an industry. And you know they've already gotten something like fifty billion and bail out. There's another there's more money that they're going after under this. Cares Act Law. That was passed but united like they got five billion bucks and only one and a half billion. That was alone. The other three and a half billion was a grant grant. Yeah you've heard me money. Just taxpayer money just given to the airlines. And of course they put stipulations on this thing but they've already found the loophole and the stipulation was. You can't fire anybody you gotTa keep all your employees and you can't reduce anybody's hourly pay or you can't reduce anybody salary right and I think you can't even buy back stock and other things. But they found a loophole. And you might have heard it already. And they're reducing people's hours. They don't pay them less per hour but they pay them less by reducing their hours which you know as a business move makes sense with dramatically reduced demand for this service but I can understand how nobody would want to get involved with the airlines. Who knows if the equity value is going to be anything like what it is right now impaired as it is. Let's talk about buybacks? Buffet talked about buybacks. He didn't buy back any shares in April at all they bought back a billion seven in the first quarter which is really nothing for them and basically the important tidbit here. Is that the stock to him. He says was no more compelling around two hundred and fifty thousand share than it was when he was buying it back at three hundred thousand share. What does that mean? Well it means exactly what you think. It means. It means the intrinsic value of Berkshire Hathaway's impaired at least that amount like roughly seventeen percent. I believe that is so or more bright. If it's not compelling at either a at two hundred fifty thousand no more so than than it was thirty or three hundred thousand. That's a big deal. And he also mentioned in the same breath telling you why he wasn't buying the shares back in the same breath. He mentioned the option value of cash. Right I it other words. I'd rather hold onto my cash than by back my stock seventeen percent off where I was buying back before. Wow so he did this whole thing. He started out with this whole long thing about never bet against America and he went all through history and all this stuff and he's got a great knowledge of history. It was fun to listen to it but he says all this stuff about don't bet against America in the long term and that was another thing he kept doing. Saint don't bet against long-term but he constantly throughout his talk and answering questions. He was constantly differentiating from the long term. Bet and the nearer term couple years to three years. What does that tell you that tells you that? He thinks that we are not out of the woods yet. And you can't call him barish but he's nothing like bullish. Some investors Whitney Tilson commented. He was part of the presentation and he commented said you know he went and he thought it was raining. Gold in March when the market was getting absolutely obliterated buffet obviously did not think it was raining. Gold Okay. That's really interesting. So they bought by zero in April. You know. That's that's the evidence there he said I would rather be holding my cash. And he also talked about the general idea of buying back stock because he was asked about it one of the shareholders sentence a question about it and he framed it in a really good way that. I think I think you need to hear about. He said imagine that we were just partners. In a business you know fuel vessel. Each put in a certain amount of money in the business does well over time and goes up in value and you know after many years of success one of us wants to take money out of the business. Well if your partner came to send that you say well. That's perfectly reasonable and a way to do that would be for the other partners to buy a little bit of stake and so you know. Maybe he owns thirty three percent. Let's say there are three of you and and he sells a little bit and after that hill own thirty percent or something and you you know then you'll each own a little bit more right. So that's the way he looks at share repurchases as an individual partner can choose. An individual shareholder can choose. Whether or not they WANNA participate and sell the shares whereas if he issued a dividend. It's you're forcing cash down everyone's throat and they get hit with taxes and you're taking money out of the business off the table right. I thought that was pretty interesting. And he's like he doesn't buy any of the political what he calls political correctness about share repurchases. He's a most people do them wrong. He said that consistently for a long time. You have to do them right and the right way to do it is the buy it back in a discount to the intrinsic value and he even said. You won't always be right when you're doing that. You'll make mistakes and doing that but you should still do it that way. And the steak is probably you know. He bought it back at a higher price. A billion seven worst and then he refused buy back in a lower price so he might have even talk about his own mistake and buying shares back but over time the right thing to do is buy it back at a discount. And you know you'll be right enough. If you do it over a period of many years I found all that really intriguing. Him telling US why he didn't buy back the stock and he mentioned specifically that he said you know for example.
Here’s What Warren Buffett Says About The Coronavirus And His Outlook On Stocks
"May kicked off with one of the biggest events of the investment calendar the Berkshire Hathaway annual meeting. Hey hurrah but instead of forty thousand people flocking to Omaha. Warren Buffett sat at a table in a near Empty Auditorium. Under did either of you watch it at all. It was kind of the surreal experience. Now I saw two seconds of it. I haven't gotten around to it but it is always. It still blows my mind. That forty thousand people go to Omaha just to maybe get a chance to see Warren Buffett. That's crazy and it's crazy that he can sit up there for that long and answer question after question after question now usually also joined by Charlie. Munger this year he was not instead he was joined by Greg able able. Who is the vice chairman in charge of all operate operate instead of Insurance? But it still went on for more than four hours. Wow I more than an hour was a presentation that he gave so I listened to the entire meeting. Impasse episodes I would. I've said that sort of my personal investing philosophy is be a short-term pessimist at a long-term optimist and that sorta seems to me was the message of the whole meeting so on the pessimistic side. They're clearly not doing anything you know. They've still kept most of their one hundred thirty billion in cash. He did not use the downturn as an opportunity to go on a buying spree. He essentially he likened previous downturns to train. That is slowing down. This time. He said we took the economic train off the tracks. And I don't know of any historical parallel in the range of possibilities on the economic side are still extraordinarily wide in other words. They're still sitting pat on what they're going to do. He also said quote. We have not done anything because we don't see anything that attractive to do. Heels actually spent a good deal of time talking about some of the past challenges and failings America's history so for example. He pointed out that. Despite the fact that we have a declaration of independence that claims that all men are created equal. When you look at the three point nine million people living in the original thirteen states and seven thousand nine hundred fifteen percent were slaves pointed out that during the civil war six percent of the male population between the ages of eighteen and sixty died. The twenty twenty equivalent of that would be four million deaths according to Warren Buffett and then it took one hundred thirty one years for women to have the right to vote at another sixty one years until a woman was appointed to the Supreme Court so we often talks about the long term success of America. He did spend a good bit of time talking about some of the things that we have not done so well. He spent a particular amount of time on going over the Great Depression I think partially because he was born in the middle of the Great Depression so he pointed out. It's September nine hundred twenty nine. The Dow was at three eighty one. Five hundred didn't exist back then so he just using the Dow and then in a little more than two months it was down forty nine percent to one ninety eight. You Move Ahead to August twenty ninth nineteen thirty. Which is the day before he was born. It was backed up to two forty so and it rebounded twenty percent. People have found that like okay. Stocks went down but there. They've gone back up back then. People were thinking that they were on the verge of the Great Depression. You go ahead less than two years to July thirty two. The Dow is down to forty one so from the peak went from three eighty one to forty one a decline of eighty nine percent and the Dow did not get back to its nineteen twenty nine peak until nineteen fifty four. Wow he did point out that people got dividends at back then. Dividends were higher but still price percentage the market was down for more than twenty years so buffet called the Great Depression a testing period. That caused some people that lose faith in America. I don't know if he was playing out to say like times ahead could be tougher than we think or just pointing out that America has seen worse times but regardless he says that anyone's going to lose faith in America that's a big mistake which brings us to his persistent message of being a long-term optimistic pointed out that despite all these challenges from seventeen eighty nine until today the wealth of the of the United States has grown five thousand percent and that's adjusted for inflation. He also pointed out that since the year he graduated from college in Nineteen Forty nine at the age of nineteen one dollar in the Dow has grown to one hundred dollars. So how do people benefit from what he calls the American miracle? Well as he often does and I think it's always interesting that he does this during the Berkshire hathaway annual meeting because it's an annual meeting of people who own individual stocks. He thinks the vast majority of people should just by an S. and P. Five Hundred Index Fund and. He mentioned that's what he does. That's what he has directed his will when he passes away swimming. He predeceased. His wife. Ninety percent of that wealth will go into an SAP hundred index fund. In fact one question asked about Berkshires underperformance as a stock. It's underperformed this year as well as the last decade a something. I know personally because I've owned Berkshire for more than a decade and he was basically said. I agree that that's an issue. He said that the truth is that I recommended. Sap Five Hundred Index Fund. To most people. And I happen to believe that Berkshire is about a solid is any single investment can be in terms of earning over time. But I would bet my life on whether we beat the sap five hundred over the next ten years so as always with buffet. It comes down to betting on America for the long term. But it's clearly means the long term to be like very long-term it mentioned the timeframe twenty to thirty years a couple of times the only truly positive thing he said about shorter timeframe at least that I can remember was in response to a question about whether Berkshire expect significant significant layoffs among its workforce which at this point. It employs almost four hundred thousand people in response. He said that some businesses will have to make adjustments. See's candies closed down. Nebraska Furniture Mart. Some of their factories may have issues. It's the funniest list of companies. I'm sorry Oh it's like it's very clean seas it's like what. Why Energy facturing? Yeah it's it's everything it's all these companies that you like. Yeah I think I've I think I've heard of Kim or have it at all. It's quite amazing. But well while he expects it some there will be have to be some layoffs. He doesn't expect them to be significant in that five years from now he expects Berkshire we'll be employing considerably more people so that to me says he expects five years from now. Things will fully recover and I think that's a reasonable timeframe. I certainly expected in five years. This time period will feel like somewhat of a distant memory. I certainly hope so But it's certainly possible that over the next year or two things could turn out to be pretty rocky
Nasdaq finishes higher as stocks stage late-day rally
"Stocks have kicked off the week on a positive note rallying late in the session to close higher Dow finishes up twenty six nasdaq up a hundred six SNP five hundred up twelve the late upside push came as crude oil futures gained for a fourth straight day rising more than seven percent back about twenty one dollars a barrel energy stocks were the biggest gainers the S. and P. five hundred led by Exxon Mobil and chevron thanks to that oil surge but U. S. airlines were hit hard after Warren Buffett said over the weekend the Berkshire Hathaway has sold off all its shares in the top four U. S. airlines American delta United and
Warren Buffett's company Berkshire Hathaway sells US airline shares
"B. billionaire investor Warren Buffett sold his entire portfolio of U. S. airline stock including delta investment strategist Warren Buffett sold all of his U. S. airline stock worth four billion dollars he only eleven percent of delta airlines Georgia's largest
"buffett" Discussed on Squawk Pod
"This is squawk pod from CNBC cures becky. Quick Warren Buffett speaking to shareholders over the weekend at a virtual Berkshire hathaway annual meeting nobody. They're not the forty thousand people who are usually there but the message still got out. He shared his thoughts on the wide range of economic possibilities that could result from the corona virus pandemic but says he remains convinced that nothing can stop America. Buffet warned investors not to get into a position where market disruptions affect them citing many historical examples. Everything from the civil war the Great Depression he spoke about America's willingness to stand up to adversity. We found that Nothing to stop America when you get right down to it and it's been true all along. It may have been interrupted the scariest of scenarios when you had a war with one group of states fighting another group of states and it may have been tested again and the Great Depression and it may be tested now to some degree but in the end the answer is never bet against America now love. It didn't say whether he thought the stock market would improve over the next month the next year the next two years but he did say over the long haul he knows that America will come back and be very strong in terms of his own cash pile. He is building that amount up. He has one hundred thirty seven billion dollars in cash. That's one hundred twenty seven billion dollars at the end of the year but that is because they run an insurance company. They want to make sure that they never have to ask anybody else for help. And that they are always able to withstand anything. Buffet also talked about the Fed's response to the pandemic. And why he said he didn't see anything attractive to buy when the market was well off the ties we haven't seen it attractive and frankly wasn't predicated on this but the Federal Reserve did the right thing and they didn't bury promptly which they should have and I salute them for but that means that a lot of companies that needed money and probably should have done their financing a little earlier but they're perfectly decent companies. Got The chance to finance in huge ways in the last five weeks or thereabouts. I mean it's set records. Some companies have come back twice a number very big companies that bothered to extend out there. Borrowings came a couple times Berkshire actually raise some more money. We don't we don't need a but will I think it's still a good idea over time and And then there are some pretty marginal companies also had access to money so there is no shortage of funds at Race which we will not invest that so we have not. We have not done anything because we don't see anything that attractive to do. That could change very quickly or may not change But in two thousand and eight nine the truth we weren't we weren't buying those things to make a statement to the world. They may have made a statement to the world to some extent and I'm glad that they did if they did but but but we made them because they seemed intelligent things to do and markets were such that. We didn't really have much competition now. The Fed has promised to use a full range of tools to try and prop up the economy during this pandemic. Buffet says he doesn't know the consequences of the Fed's balance sheet expansion but he knows the consequences of doing nothing. I'd love to be Secretary of Treasury if I knew I could keep raising money. Negative interest rates. That makes pretty simple. We're doing things that we really don't know the ultimate outcome. Do I think I think in general the right things but I don't think there without consequences and I think they could be kind of extreme consequences pushed far enough but there would be kind of extreme consequences if we didn't do it as well. So if somebody balance those those those questions again. That's Warren Buffett the chairman and CEO Berkshire hathaway joining us right now to talk more about all of this and the market implications is Mohamed El Area. He is the chief economic adviser at all. Liens in Muhammed. It's great to see you this morning. Thank you becky and thank you for Great Q. And A. With Warren Buffett. Just on Saturday. Thanks but I know that you were watching to see what he had to say about the markets. What did you think about his assertion? About what the. Fed's been doing right now with the potential consequences. Are you know Becky? He put perfectly this debate. And it's not an either all but as a question of balance and it's a question for the marketplace. Would you rather have the blanket support of the Fed as we did this time around? Would you rather have Warren Buffett's rescue financing as we did in two thousand and eight people will argue either side of this? He pointed out that on the one hand. You get the Fed normalizing markets quickly but on the other hand you get people who shouldn't be borrowing raising money and that's the issue of capitalism. You know what's better my own sense is. The Fed went too far going to high yield market. But I understand why they did. It and time will tell what the consequences all. This time is a little different than two thousand and eight back then. It was some bad actions and bad behaviors that lead to the financial crisis. It was activity at the banks and other places consumers kind of jumping in on all these things warranted different as we all know it. This was. Nobody's fault that none of these companies did anything wrong they just got slapped. I by the pandemic and then by the shutdown of the economy. Saying we're not going to let people go out so in a situation like that. Should the government be more responsive like this because again we're not talking about moral risks? We're not talking about moral hazard or anything that anybody did wrong. It's a pandemic and it's a government response to that pandemic. Just shut the economy down so I it should be. Which part of government should he be the Fed with should it be the treasury second? What rules should govern day? Should they be certain terms in terms of behaviors of what you expect these companies to do and finally I think Warren Buffett put into really clearly you Andrew and Joel had pointed out. He was more cautious. It was a vase sobering tone because he kept on saying. We don't know what's ahead. He kept on talking about a whole scenarios of possibilities not at baseline which is different from two thousand eight nine. He talked about tail risk on and on again he talked about balance sheet strength. This notion of we don't know what's ahead. And he warned us. Not Older. Problems emerge on the first day. So there's also an issue of how. How quickly should step in with these blankets support from the Fed? If you talk about the treasury and there were principle governing bailouts. I would be with you. But but the Fed opened up the high yield market for almost everybody and that raises the specter of Zombie companies. And we've got to be careful about this because that eats away at what makes America special and desktop reason why we don't ever bet against America because of its dynamism Mamad. Buffet also said that there are scenarios worst-case scenarios. He can imagine that he didn't WanNa talk about because he didn't want to make it more likely to happen. Worst-case scenarios and that's what he wants to make sure that Berkshire Hathaway is prepared for this fortress Defense about when you start thinking about some of those things not that they're likely but what. What would be a potential worst case scenario in terms of how the economy reacts so you gave us examples? I think airlines on example where he said you know what behavior has changed. This is a completely different sector. Coming out of the crisis it will not be at full capacity. He took all those planes. He also spoke about some of his companies. Having a permanent loss in sales he gave the example of Easter foresees candy and he spoke about other companies that were weak and are not coming back. And that's within his empire so this notion is coming out and I think it's a rank notion that when we we set which we will we. Will we set differently? The economists called it the ninety percent global economy. There's going to be ten percent of the global economy in their view. That's going to be missing. And what investors have to figure out is which ten percent is not coming back thank you it is great to see you again and we will talk to you very sound. Muhammad L. Area. Thank you becky coming.
U.S. airline shares tumble as Buffett sell-off adds to worries
"Airline stocks are taking a hit today in the wake of Warren Buffett disclosing over the weekend that his holding company Berkshire Hathaway has sold all of its airline stakes in light of the corona virus pandemic also weighing on the carrier's word that Barclays has downgraded its ratings on American Airlines and delta shares of Americans are American heather are tumbling nearly ten percent both delta and United are down more than eight
"buffett" Discussed on Yahoo Finance Presents
"Andy Serwer and we felt it was important to show buffets thoughts on the matter with his upcoming annual shareholders. Meeting that is happening. This Saturday may second. He will be sharing his thoughts on the twenty twenty investing landscape and no doubt how cove in nineteen will impact is decision making in the process. So here's Warren Buffett with Andy Serwer political left and the Democrats to tax billionaires have a wealth tax would that stuff be productive and maybe close the wealth and income gap? Well I think the I think I wrote something seven or eight years ago but the fact that there was I was doing a little hyperbole but that was class warfare and my class was winning basically. There's no question that that that capitalism as it gets more advanced will widen the gap between the people that have market skills whatever that market demands and And others unless government does something in between which say the earned income tax credit or all kinds of things and and I think that's a proper function so I would I would. I would say that if people it. It isn't some diabolical plot or anything but look out this way if you go back to eighteen. Hundred eighty percent of the people were farmers. And you're the best farmer in Omaha and I was the worst. The difference in value might be two to one. You might be worth twice as much author picking heart or whatever we might be doing planning but now there's we'll say two million times because thirty million American males between twenty and thirty five and if you're in top one tenth of one percent in basketball or football mentally or baseball worth anything if you're in the top hundreds of one percent you're getting close so if that's the payoff is huge because some guy discovered television many years ago and another guy discovered pay. Tv or cable and then pay TV. So that your talents or Ted Williams got twenty thousand dollars a year for about four six your talents now. If you if you make the majors still doesn't pay well in the minors but if you finally get to that one hundred of one percent now you're worth millions and one tenth of one percent you can buy Sandlot ball and so you've got this pushing of extreme rewards people who are very very good at something the market demands and Amanda Entertainment. They demand people. Apparently that arbitrage securities. You know. There's there's certain specialties ad. That isn't because a much were sitting in a room deciding we're going to figure out. I got away from the poor or anything like that. It's because of the market system. But we want the Margaret System functioning that way but we don't want people left behind in a society where you've got sixty thousand dollars plus of GDP per capita at that. The people on the on the lower half have been getting falling behind the games overall achieved by the country. And we've they aren't worse off than they were twenty years about. There's somewhat better off than they are better off because of the things like an iphone. I mean that's a something's terribly useful in and everybody. I get the benefits of search for nothing you know. Basically but that's the Oldham attention is how do you keep a system that produces incredible benefits for everybody in? Sports is an easy example because we all liked to watch him. We WanNa Watch like you and me. So that's where the money is that. Didn't exist two hundred. How do we address that? We address it through the tax credit. We dress it so that anybody that worked forty hours a week and has a couple of kids that they don't need a second job in the family. I have a decent life. Does that mean increasing the minimum wage? It means increasing the tax credit. I think that's a better system. Yeah what they needed more money in their pocket out now you can do more money in the pockets minimum wage. But you don't work as many people working. You need something so they have money in their pocket and we can do that and that does require a in my view it requires higher taxes on people but where they were born into this world with the cure talents that that marvelously now in two hundred years ago that would have been there picking corn with me. Can you take the higher taxes on wealthy people and put directly to the earned income tax credit? You could I mean because people complain. Oh my taxes are going there swan. Nobody likes taxes. But if you put a program where was earmarked well. That's that's what people do in their when they're on the debate stage currently it's the Democrats. They all their new programs. And I'll pay for it but they don't tell you was already there. Nobody's discussed the trillion dollar deficit. We have so talk about how you're introducing new but basically you don't want to run deficits and definitely that increase the relationship that the GBI. There's there's there's some point which causes real problems although we haven't seen a lot of places that you might experts it what this country has the productive capacity to let people like me Olympic store nearly well sports stars or entertainment all kinds of good manager. Whatever and still make sure that nobody is really left so that do people have to work in. You have to hold two jobs and you wonder how you're gonNA feed your kids if you're if you're working on seven ten an hour doesn't do it in ten dollars. An hour doesn't do it but we can do it. We have the resources to do it. Thank you for listening to a world interrupted from Yahoo Finance for more coverage on the corona virus and its economic impact. Make sure to watch our bell to bell. Live programming throughout the day. Few enjoyed this episode head over to Apple podcasts. And leave us a five star rating in review there. In the meantime stay safe. Take care of yourself and we'll get through this.
"buffett" Discussed on The Money Guy Show
"I mean you can control every one of these things and then a big thing that I think people we look. We know it when we're talking about risk exposure. We're also talking about the fact that we know at some point it could be decades away but at some point all weaving this awesome planet that we live on so you need to plan for the future. Warren Buffett in the twenty one thousand nine. That's the one that just came out letter to shareholders. He lets everybody know that he has created an estate plan. That figures out what's going to happen to Berkshire hathaway. After he's no longer warns in his eighties he knows that this is a scary time for investors in Berkshire hathaway. They're probably wondered what happens the Berkshire hathaway stock worn own. So many shares of it is this thing go be dumped and sold as soon as he passes away in the stock prices. Go get destroyed. He came out and he said No. No Look I've written in my state documents I've written into the trust and I've even written a waiver of ability that Berkshire hathaway stock. I've instructed everybody. Do not sell this win. Pass away because I've left it in capable hands and then I've got a systematic plan that over the next twelve. To fifteen years we will be diversifying out of it. So what do you take from that? You listen to that and you go okay. This guy is worth eighty one billion dollars. What's The teachable? Moment within all that teachable moment is is that if Warren Buffett has an estate plan so should you should go into a good estate plan so pretty much the basics are you WanNa have your last will and testament which kind of says you know how I want my assets to be distributed. What my wishes are after I pass. You want to make sure that you have appropriate life insurance. You have health care directives. You know who's GonNa make health care decisions for if you can't you WanNa make sure if you have any sort of trust structures that are needed would that be for pro purposes or to protect yourself from creditor purposes or to protect children purposes. You understand your estate plan and you WanNa make sure you even have things like disability insurance place even if you don't hit the big one but you're just kind of out of commission for a while you want to make sure that you have your family covered. Yeah make sure that if you were taken out on a Tuesday afternoon your family is protected and that leads to the last point that we had about what you can control is obviously your behavior. Don't you bought into the panic? And the fear mongering and the media creates this storm of opportunity for you really get distracted and not act in your financial best interests. It'll be very aware of those things. So we think there are nine life-changing lessons that we can all learn from uncle war. I'M GONNA run back through them really quick number one..
"buffett" Discussed on Squawk Pod
"Box buff indicated. He might support Mike Bloomberg for president. That was long before the former New York City. Mayor and fellow billionaire entered the race. Mike Bloomberg announced tomorrow that he was a candidate. I would say I'm poor and I think you'd be a very good president. So does buffet feel the same today while I would I would? Certainly I would certainly vote for him. I don't think another billionaire supporting would be the best thing but Sure I I have no trouble voting for Mike. I would say this in terms of Sanders. I actually agree with them in terms of certain things he would like to accomplish. I don't agree with him in many ways but in terms of the fact that that We ought to do better by the people that get left behind by our capitalist system. I don't think we should have killed the capital system and the process. I think we should make sure that. The golden goose keeps laying more eggs. And it's worked wonderfully in seventeen seventy six but it doesn't work as well for people whose talents art art really guilt your market economy and. I don't think anybody should be left behind by an economy that has over sixty thousand dollars of GDP capita so. I'm I'm a big fan of increasing gump tax credit and You know I think there should be some changes made but but if given a choice I would certainly vote for Mike Greenberg as opposed to sanders. There is a plant and let's talk about some of Sanders plans. You said you agree with some of what his intentions are. But let's talk about some of those actual plan. One of those plans would be to give twenty percent company stock to employees and but workers on the board What do you think about that? That would be for any company public company that has more than hundred million dollars in annual revenue or one hundred million dollar balance so I don't WanNa get bogged his values whole plan. But I think that would be a particularly bad idea because I don't think I don't think putting twenty percent of the capital of subtle labor unions. I'd either and I I think. The market system works very very well in terms of developing more goods and services. I mean when you flew out here Dhamma if you'd thought out here and it wouldn't have been able to fly in seventeen seventy six. You wouldn't have seen anything. Everything you see is the product of a system. That's worked like nothing's ever worked in the history of the world so I do not believe in messing up our system of developing output. I do believe that anybody who's willing to work. Forty hours a week and has a couple of kids should not have to have an expert second job and I believe in having a higher income per people not necessarily a higher minimum wage. But I do not think it's at all unreasonable that the income tax credit produces at least as fifteen dollars an hour maybe higher in certain areas. So I I'm very much in sympathy. With the fact that the the senators sanders believe a lot of people are getting left behind and through no fault of their own. And there's all kinds of aspects of capitalism that can need in some ways to be regulated but. I don't believe in giving up the capitalistic system. Let's talk about shares of apple with it being such a huge holding of yours. You've got more than five point. Three percent of the company right now. These five six goes up every day less about. Because we're what we've seen with the slow down with the virus because apple is one of the companies that has said it's going to have an impact not only the stores that closed there with the behavior of Chinese customers but also what happens with the supply ship to ensure. How do you read through any of that? What are you hearing? Do you know more than we do. Though I don't know one thing more I I I. I may see Tim Cook at the annual meeting. I M Sun Valley wants a you know I I. I don't think I don't think I've placed a phone call. Tem Kokin two or three years or I mean no I it. All kinds of things are going to happen in the next ten years. The real question is is you know what is the degree of pervasiveness and strength of that product. Five or ten years from now and I don't think of apple as a stock. I think it's our third largest business. It's also a high flying technology company. It's one that's been at the forefront but you've said in the past you didn't buy it because it's technology Think as a consumer product in fact guide said this on the program a couple of years ago I mean obviously it's a consumer product company uses technology. But we've got a lot of products that use technology a Berkshire but It's an incredible company and I should have appreciated it earlier. There's a question that came in from. I guess they handle his G. P. G. This is a question that came in on twitter and the writer asks. You've said that you can do fair. Value estimates of companies. You follow it anytime in your head so please do one now for apple. What went wrong with your estimate for IBM. And how is that? How is that miscalculation different than for Apple? Ibm Two entirely different business than apple. Does it resemble IBM anymore? Is Up in Resemble See's candy way more. I mean it is a incredibly useful product of people that grows more useful as the number of people. I mean it's really interesting. You know they get we call them smartphones if you go back and look at the old telephone. That was an incredible useful. Product changed my mother's life and my dad's a change lives in every way and they. They took a long time to become pervasive and it was very expensive. Initially it changed the world and the smartphone is part of hundreds and hundreds of millions of people's lives in all aspects of their lives. And it's used for all kinds of utility. It's a consumer product. Are you a consumer of its products? At this point you've had forever. I'm glad you brought that up. I am using ing not very often. I'm using the latest and I'll give you a little preview. A movie for the annual. We haven't done it yet but it will probably show me crushing with my foot. Flip phone while closing up to a new smartphone smartphone I've been given several of them including by Tim Cook. One finally stuck. You're absolutely no. I might flip. Phone is probably. The number's been changed to impress looking at eighty nine year. Old Guy Barely beginning to warm. WanNa thank you for your time today. We really appreciate it Your generosity with your time and we hope to see you again soon..
"buffett" Discussed on News Radio 810 WGY
"Finally went to see Buffett and profit my buffet nine eighty five it's kind of my rabbi I call and as to the look and he said Patrick you have to come forward and I said you know it's gonna make some friends fear of fear is have made their heads are going to explode and he said you live feds do their job you're a citizen you got your job you're coming to the public here's what it is this was all political espionage conducted against Hillary Clinton Rubio Cruz and trouble this is not a fury of mine some political theory I was in the room when it happened in a way I mean not in a way I was part of it I didn't know I knew I had some of the pieces I founded the pieces of something much bigger last summer as stuff bubbled into the news thanks to good journalists such as yourself I started realizing I had these very important missing pieces does he sound credible or does he sound crazy no you definitely sounds credible and he also thought he was just doing the right thing Amy's going forward on the advice of Warren Buffett which I think I recall in Warren right now Hey Warren new I'm just say something here yeah how bout you bring something up into the because he it's not even the feds are the problem for him right now it's the reaction to what he said by his customers and probably his board of directors it well it's it is a problem with what he said and as our it's the way the news media twisted it last time yeah I think it's a look like he's not yet made it made it it every story I read with the exception of a handful made him look out look like a crazy man all years another crazy guys where is the theory from somebody on the right he's a libertarian he doesn't like either side he also said did you notice there he also said it was Clinton it was if she was a target targeted as well as well as the Republicans were sold the just the the the Russians are just trying to screw with the system here right there just trying to I don't know if it's the rush I don't think it's the Russians he's not saying it's Russians he's saying it is the man in black inside the justice department that are not necessarily coordinated by the justice department he's saying that there's a deep state here that's running okay like a size drugs of the world yeah yeah they're deciding you know what we're not going to put up with this cheese so I mean it's it's not good let me give you one more piece this is from Patrick Byrne on CNN with Chris Cuomo listen this their behavior was so strange it's almost like and by then you're saying people in the F. B. I. you don't have to tell me what your but you say that you know who they are yeah men in black men and they it was so strange that I was thinking it offers like Notre lady says men in black that isn't that is an organization that even the police and the FBI I don't know that's what he's saying then there is a full deep state.
"buffett" Discussed on 760 KFMB Radio
"For years i also love at warren buffett gotta go ahead just the way he phrases things just so simplistic can is very good at using different analogies he said he no four in the sixth inning right now at the economy we've got our sluggers at the plate he still thinks we have some some good room to run here over the next few years doesn't mean we're not gonna hit a recession in the next few years but next couple years i still think we can have some strength without kind of stumbling there shoot i forgot i gave it to you i think i'm thursday or friday but but but how the next ten years i've doesn't do as well so so be.
"buffett" Discussed on WSJ What's News
"Warren buffett did a lot during the financial crisis in two thousand eight and two thousand and nine i suspect this is where talks may have broken down do we know anything specific about what buffett wanted out of a potential uber investment there are reports but the two sides aren't really confirming what happened but it's definitely possible to assume that buffet wanted kind of the typical favorable terms that he gets from other companies that he's helped out in this way which tend to mean very little downside and quite a lot of upside and uber meanwhile actually has a pretty good cash position and so it might not have been quite as desperate for cash that it was willing to cede on those terms haven't other companies already taken stakes over yes definitely uber has raised money it is now valued around seventy billion based on january investment from japanese firms softbank group heuberger revenue has grown sharply but it's also incurred sizable losses and it's also gone through few scandals include sexual harassment charges yeah well there was a wave of scandals last year and then more recently there was a death from self driving uber vehicle and so that's potentially what buffett was trying to take advantage of was helping the company reputational doesn't berkshire they have a reputation for investing and insurance companies this seems far afield from that but berkshires conglomerate and it has more than sixty subsidiaries in all kinds of industries and so it's quite well known for its insurance businesses including of course gyco but it also has a variety of other businesses including some car related companies it owns a string of auto dealerships called berkshire hathaway automotive there's gyco of course it also owns a railroad and berkshire also invests it has equity stakes in some companies that it doesn't fully own so it's also an investor in general motors and so even though buffet is says he's not a tech expert he does know quite a lot about the automobile industry i was going to ask you about that do you think this would.
"buffett" Discussed on Motley Fool Money
"You go give interviewed warren buffett you've interviewed presidents earlier this spring you set down with someone whose influence is going to continue for decades to come and that's frankas the legendary puppeteer and the voice of yoda and miss piggy cookie monster monster how was that and did you get some props from your children on that interview i yes i i actually brought in like cookie monster match game cards that my daughter plays with every day for frankas design she didn't give me props because she's only eighteen months old but yet my son thought that was really cool and by the way my daughter would think it was cool because cookie monster is her favorite cookie monster elmo both but cookie monster has been in the lead for the last couple of months that's her big facination so yeah it was huge but it was from me because i grew up watching cooking monster and sesame street and we we just went to sesame street live right before all of these things yeah it was definitely on my bucket list of people that i wanted to talk to my only regret was that we didn't have more time with them had we were badgering i'm a little bit about doing voices he doesn't do voices because it's kind of like monkey dance right but he is amazing hearing what he thinks about jim henson hearing about his career how he got into it which she said it was all kind of an accidental thing but he's still even though he can do just about anything he wants he is still doing what what interests them and what makes them fun and he's still experimenting which is what he's doing with this new release of his movie on a website instead of giving it to another distributor which obviously there'd be tons of distributors clamoring to get to be the one to put it out he wanted to do it himself and he said that kinda takes them back to their hippie rebel roots and you know he's never strayed too far from that he's an amazing guy.
"buffett" Discussed on Motley Fool Money
"His his opinion was that there were fewer stupid our competitors around that it was a business where the airlines have gotten much more disciplined and where they weren't just offering fire cells to get anybody ended by the seats on things that they had gotten so much more disciplined in it so that was a keynesian sort of situation where he looked around and said i changed my opinion because the facts of changed so that's going to be something but again he didn't tell us until after they'd already about those steaks so this is when you get hints from him it's because he's about to have to have to file something with the sec anyway or because there are things that are coming out he would never give away something if he thought he was going to lose his competitive advantage or drive up prices in an industry or an stock where he was really interested now that doesn't mean we don't have carefully get a little hint but it's usually because see violent filing isn't far behind about the new documentary that you worked on warren buffett investor teacher icon it premiers on cnbc on friday may fourth at ten pm eastern i got a chance to watch this earlier this week congratulations it's it's fantastic and what's fries me about the documentary was essentially it's told through the eyes of people that buffett has influenced and it's not really a checklist of investors it's people from everyday walks of life i guess my first question is where did you find these people.
"buffett" Discussed on The Money Guy Show
"They say it's that whole echo anybody's a student of of of warren buffett in berkshire hathaway knows be fearful when others are greedy in greedy when others are fearful i mean that is exactly what that is an echo of so let's get into what is the because i told you that seventy six percent of berkshire hathaway's actually these private businesses that have come into a home what's the four traits of a successful business for them to consider acquiring are bringing them into the family and then what's the one trait required to become that parts lose the four traits that every business has to have hidden there's one trait that he requires for him to actually turn you into family okay so here's here's the quote in our search for new standalone businesses the key qualities we seek or durable competitive shrinks got it that's a quote as a as as a a the moped he read these things you'll know he's always looking for a moped around any business that he's buying he wasn't make sure they can do this for years going forward so durable competitive strengths abel and highgrade management because warren doesn't want to get in there and run payroll every mara i mean that without a doubt warren buffett is not running payroll he wants to know that was good managers already running this company that will continue to do the daytoday operations good returns on the net tangible assets required to operate the business makes me think as sees candy because he's always talking about got an asset much cheaper than what people realized it was work when it was bought the opportunities for internal growth at attractive returns and here's the big one this is the one that you have to have if you wanna be in business with warren buffett a sensible purchase price so warren brags on all these companies but then he says look i'm not overpaying i'm not going to go out there and overpay for anybody comes to me that's what he has got the great.
"buffett" Discussed on Stansberry Investor Hour
"And see if it turns into uh you know uh twenty bagger so richard tell tell me about coming up working with these billionaire portfolios could you really improve their performance just by changing their allocations um it's it's allocation so with uh taking warren buffett as an example my studies so far in his portfolio is that the uh allocation algorithm that i've been using that risk free valor balancer algorithm so again it it puts more money into the lower volatility stocks and less money into the higher volatility stocks in it it takes equal risk on each of those stocks in the hedge fund world they call it risk parody rate um i like to try to use simpler language i just call it equal risk uh based on volatility so yes using that simple algorithm on buffets publicly traded uh investments uh does produced a higher uh longterm return gruntal an art and other you're not changing when he buys when he sells you just changing the 'basanti us yet but there are uh on one of my favorite to david einhorn okay and with david einhorn what i founded the most impactful thing is actually changing wind by oh yeah over i discovered that david einhorn gets into everything about a year to early um it's good to know and he he uh you know he's a great stock picker bet and he's picking ideas that are uh more volatile than most of the billionaires and so i have this red light yellow light green light system that i developed uh also based on the volatility that the volatility quotient as i call it or the q okay and so you know monitoring david einhorn's investment ideas and then waiting until they get a green light in my system uh produces and then using the risk rebalance or produces nineteen percent annualized gains over the past eighteen years sounds like sugar.
"buffett" Discussed on Money For the Rest of Us
"Henry kaufman he said ninety old founder of the financial consulting firm kaufman company sometimes known as doctor doom he right there are two kinds of people who lose money those who know nothing and those who know everything so that's us in one be prudent with debt lesson to is keep your eyes open and focus on a few simple fundamentals here's what buffett wrote in the letter though markets are generally rational the occasionally do crazy things seizing the opportunities then offered to not require great intelligence a degree in economics or a familiarity with wall street jargon such as alpha and beta when investors then need instead is inability to both disregard mob fears or enthusiasm and the focus on a few simple fundamentals a willingness to look on imaginative for a sustained period or even a look foolish is also essential the different letter buffett said the less prudence with which others conduct their affairs the greater the prudence with which we should conduct our own affairs well if it is suggesting that if we keep your eyes open and focused on a few simple things that we can take advantage of opportunities takes patience we might look foolish for a time but ultimately there's opportunities there howard marks says the same thing he right as difficult as it is to know the future it's really not that hard to understand the present what we need to do is take the markets temperature keep your eyes open it goes on there are few fields in which decisions as to strategies and tactics are influenced by what we see in the environment and it gets example how house fast were going driving we've been taken this long road trip you tend to keep your speed based on how others are driving the phrase being slow is slow down keep the.
"buffett" Discussed on We Study Billionaires - The Investors Podcast
"I think of buffett is really a ward off you know he's been doing this since nineteen fifty six that's sixty one years you know he's has topdrawer result through sixty one years if you combine above its record with his endurance with also his skill as a manager running the guam route with seventy companies with his larger role in the american business culture is really become the teacher of business and investing for her is uh student annual report readers and now listers or the all the shows is interviewed on he's created a role that never existed and i think there's not going to be another one in interest rates soar sides of this way early in his career before your anywhere had heard of warren buffett when he was a fraternity actually it when he transferred to maybe lives depend first coup he went through is the fraternity brothers used to stay in the begins to war and if peppered with questions just because they like to hear his answers and then a few years later when he was a young investor it go to these dinner party to new york and then ever kind of a ritual bunch of young of brokers and investors bill ramos probably there half dozen others and they were all gather around his feet all these other grown man his peers and listen to him talk and pepper him with questions again because they wanted to hear him speak it was unconscious a dress rehearsal for the day a decade later way to be running this company copybook draft way really got annual meetings where forty thousand people would show up to your door when did you ever been on stock picking we forty thousand people flying across the country i think he's sort of a oneoff writer the'dear yeah you might be right about that i want to throw this out there they're roger if you ever wrote a book or visas i would absolutely by that we you know with the biography be they're all all the things i just said about buffet who selfconfidence the way he approaches starch.
"buffett" Discussed on WSJ What's News
"And the title of your article is one game warren buffett doesn't play chicken exactly so typically his notice is reno really we don't do this we don't get into bidding wars berkshire hathaway is at major acquirer of companies and has been for decades and one of the reasons at so successful and something that warren buffett talks a lot about is that berkshire is kind of the buyer of choice that they are a permanent home for companies they let the management stay in place they let a lot of their subsidiaries run relatively independently and so for a business owner selling to berkshire is kind of an ideal place to sell your business and a lot of cases and part of the deal is that they strike the their price and deal very quickly they often just shake hands are put together a onepage term sheet no lawyers know bankers and then they don't renegotiate after the deal so given that his berkshire unlikely to rues its initial bid so berkshire headway energy has not commented on this and warren buffett has not commented on this and so we can't speak for them but talking to people who have followed berkshire closely for many years people who owns shares in berkshire a lot of these people say it is really unlikely that they would raise the bid that if they get into some sort of a bidding war in this situation then they'll have to do it for every deal down the line that kind of change the expectation of what berkshire is willing to do.
"buffett" Discussed on WSJ What's News
"In floored we have a place for you not only do we understand your aspirants we're ready for them for all the amazing things your future holds we hold the key floored the future is what's news from the wall street journal top stories and timely invites i'm charlie turner in new york there are some things that billionaire investor warren buffet won't do and they include engaging in bidding wars and hostile takeovers in fact buffett's berkshire hathaway says that in its annual report we don't participate in auctions yet data something that buffet and berkshire may find themselves doing before long here to talk about a possible bidding war for a major utility owner is wall street journal reporter nicole friedman nikkola's you've reported berkshire hathaway energy recently struck a deal to buy energy future holdings which is bankrupt for nine billion dollars cash energy future owns the texas electric utility encore tell us what has happened since rights of that deal was struck last week it was announced on friday and since then elliott management corporation which is a hedge fund run by paul singer has come forward there one of the largest creditors of energy future holdings and they've said they think that burke share offer does not bring enough value it doesn't value encore and energy future highly enough and that they want to put together their own bed with putting together a team of investors to make an alternate bid for energy future which then raises the question is warren buffett and berkshirehathaway going to raise its bid and compete or is it going to walk away.