40 Burst results for "Warren Buffett"
Fresh update on "warren buffett" discussed on Retirement Game Plan
"Warren Buffett encouraging investors to keep the faith in America's economy as well as the businesses that his Berkshire Hathaway conglomerate owns more on that story from Ron Dirac Stra In a letter to his shareholders Saturday, the billionaire hardly mentioned the coronavirus that ravaged many businesses last year, saying American business will thrive over time despite the pandemic. Instead, he focused on the long term prospects for the railroad, utility and insurance businesses and stocks that Berkshire Hathaway owns. The 90 year old Buffet also assured investors he has no plans to quit by joking about one of Berkshire's longest serving managers, retiring quote Had two ridiculously premature age of 103. Rhonda Rocks to reporting on Wall Street last week Down Industrials losing big time Friday off 470 points, closing at 9 30,032 NASDAQ closed.
If You Sell Your Bitcoin, Michael Saylor and Jack Dorsey WILL Buy It
"Before powell spoke investors had started to get nervous in the us around the potential for an early unwinding of the fed's extremely aggressive approach to keeping rates low and stimulus etc. Because of this the market was getting out of stocks and into treasuries driving the yield of treasuries down and by the way if that sounded like greek to you. We're actually going to do a macro one show. And a bond specific show as part of that new kiddo show set as well either way powell gave testimony to the us senate banking committee on tuesday and said that the economic recovery remains uneven and far from complete and the path ahead is highly uncertain the bloomberg headline this morning about it said powell reiterates view that labor market has a long way to go. Pow pointed out that there are ten million fewer people employed. And that's a long way to go to maximum employment and this is really important the mandate the fed is actually two parts market stability. But it's also full employment the tools however that they have to achieve that full employment are limited and what we've seen is that asset prices tend to benefit before full employment is reached over the course of this year. We're likely to shift from the market stability part of that equation to the full employment part of that equation but it still promises a pretty aggressive approach from the fed powell also mentioned digital currencies saying it's a priority and that they'll be reaching out to congress about it in twenty twenty one so we'll have to come back to that soon next up on the brief today trouble in arc land i have discussed kathy would and arc pretty frequently here most recently in the episode last week i find it interesting. How a lot of the macro dynamics that are potentially interacting with bitcoin might be interacting with arc funds as well arc has seen a stratospheric rise over the last year but has been hammered. The past few days in fact it started a couple weeks ago as people started to get nervous about how concentrated arcs of some of their companies were remember. Our funds have specific feces around innovation. So there are frankly. Only so many companies they can buy if their fund owns to high percentage of those companies. The fear goes it could create risk in both directions that an issue in one company could create broader risk for arc or vice versa that arc could create new exhaustiveness risk for the companies themselves over the past few days however the concern has been less about that and more about this rise in treasury yields the innovation. Etf which is their flagship. Fell three sessions in a row. It had its worst today. Drops in september and again basically these yields were reflective as we just discussed of investors thinking that there was going to be pressure for rates to rise and for fed support on wind earlier than expected because of that they were moving out of the pricier parts of the market. I e tak. Now for her part. Kathy would said she wasn't worried said that she welcomed the correction and to be fair. She's gone from three billion assets under management in january twenty twenty two more than thirty in january twenty twenty one to more than sixty billion last week still. I think this is worth watching as a reflection of the bleeding edge of the markets. I don't think. Bitcoin is so correllated that you can watch these things move in tandem. But i do believe that. There's some proxy for how traditional investors might think about bitcoin at any given time based on the macro context lasts up on the today. Let's talk about the latest out of india. India as we've discussed has been very aggressive. Vis-a-vis crypto currencies with that seeming to only heightening right now a couple updates from the last few days rakesh ginger who's likened to an indian warren buffett. The billionaire investor he told. Cnbc never buy bitcoin that. Regulators should step in and ban cryptos in india and called bitcoin speculation of the highest order. So pretty much that. Warren buffett description is accurate at least when it comes to opinions on bitcoin at the same time however he also stated that india should focus on the creation of an official digital rupee. This was echoed by comments of reserve bank of india governor who reiterated that. The rbi has major concerns around cryptos but that they are working aggressively on a digital rupee. I wanted to point this out. Because i think it shows just how much india is going to really draw. This contrast between killing cryptos private cryptos and network cryptos while simultaneously trying to harness that momentum for an official central bank digital currency is that paradigm. That one can't survive while the other one does or are there different ways to look at
Fresh update on "warren buffett" discussed on Whitfill Nursery
"We're gonna wrap up with just a couple of last topics here. We've got to approach this covert thing. I wanna make mention one more thing about the bond market, and then we're going to roll into The strategy of the week, which is which is for the builders out there, but really could be used by anybody. Yeah, he talked about the strategy. Yeah. You just have to do it a little differently because you're not wanting to actually take delivery of well, but neither do the builders. They don't want to take delivery. We'll talk about it. Okay? Yeah, we'll talk about it. All right, well, anyway, so good news about Cove it and that's been that's been helping the market along. Well, until very until right now. Yeah, The tech stocks are not happy. Well, the tech stocks here especially not happy, but money is being pulled out of the markets again to be pushed back over to the bond market because Rates are rising. Yeah, we knew that that was going to happen now Bond rates her writing. I'm not saying interest rates rising but on rates rising, right? Yeah, And so as the money is pulled out of the stock market, laws of supply, and man says the stock market goes down. What's being hurt her. They value stocks right those things with a dividend as they run back over to the bond market, which is starting to make a little bit more sense as the rates continue to rise. Well and you're seeing, like, I don't know if this is the rumor of this is true. I heard that Warren Buffett is off loading his position of Apple. And that was what kind of Yeah. Dropped out doing that for a little while. Okay, Well, yeah. So I thought that was kind of his apples been dropping for longer than this started to turn around Well, but this is Warren Buffett, and he doesn't shock the system. He gets out slowly so that he can So that he can either get in at the lowest Pete right. It took him six months to get in IBM because he would on Lee by when it hit his price. And he also takes a while getting out because if he dumps off all at once, he doesn't get the best price. Yeah, that's right. Yeah, it just drops through the through the basement. Now he's selling it. Well at the price that he want to buy at S O. That doesn't make any sense, so he gets out slowly. But, yeah, that does drop the price Slowly. If there's nobody on the opposite side and because of what's happening with covert and other things, the tech stocks have been beat up. So there is nobody on the other side. Everybody's trying to pile into the brick and mortars, which makes more sense right now. Well, and it's kind of known. In the trading community within the indexes, the S and P in the Russell and the NASDAQ and the Dow. The NASDAQ is usually like the wild child. It likes to run away, but sometimes you gotta yank it back so it may be down percentage wise farther than the other indexes. But, um, you may expect some type of yanked back. Yeah, shifts back and forth. The variances is well, you've got lower lows and higher highs. Yeah, then you would expect to see in some of the other indexes. Yes, exactly right now, if you know how to handle that. That's good. If you don't That's really bad. It provides great opportunity when it needs to. Yeah. If you understand how to manage your risk, then this could be a very good thing If you don't not not such a good thing. Yeah. If you're just holding it out, right then you've probably been hurting this week. Well, yeah, we're at least you've got that pit in your stomach. Because you're you're watching your value sink. Or as you've probably heard me say before I puke point puke point Don't get to Europe. You point? Yeah, anyway, so the good news is that the visor and biotech vaccine has shown to be 98% effective against a very illness. And there are signs in other countries that the percentage doesn't drop significantly with new strains. Now I'm not. I'm not a doctor, So I'm just quoting what I've read in the news, but the market has heard these kind of things and there You're liking what they're seeing. Well, the airlines air. Certainly happy. The airlines are happy. That's right there. Those stocks have been going up and and it's been some of this good news thinking. All right. We are going to get past this and probably sooner rather than later Last week, we talked about what ST John's What was it? Very respected name in the medical community. John Hopkins have John Hopkins Hopkins, right, and they according to their number, said We should be into herd immunity by April. Well, That was good news, too. And we saw we saw the markets react very well way. Saw them react. Well, yeah, well, and that was like a part of like, I think it was the movie theaters, the airlines the cruise lines, all of those. People in businesses. That's right. They also mortars will all week It's exactly right things that man hurt the worst that rely on foot traffic. That's been going up and those things that people have gone to, instead of going to the foot traffic places. Those have been hurt because they you know, it's expected the business is going to pull away from those has as it flows back into the bricks and mortars. Yeah, exactly. Yep. So, yeah. Overstock down by almost 16% 1 Day and It hasn't gotten much better since then. Nobody has a Amazon is down on the month, although it's not below it Z well it Z call it the demand. Yeah, Demand level. It kind of has a range bound area for the last six months from or at about 3000 to 2900. It's kind of state above that area, and it hasn't gotten much higher than about 3500. And it's just kind of gone back and forth for about six. Right now it's down. Yeah, but it's not down below. You know those levels Zoom is dropping. Many of the texts are down from there six months. They're they're high six months ago on bits because of the good news with Cove it it looks like it's gonna be over sooner than Then they wanted it to be what? Whoa! You're getting political. No, no. Then then, we then some of the those that air I don't know. Then the long predictions. Yeah, let's let's say that Okay, anyway, But other things are up. Crude is up because the demand for crude is up as in people are getting out of their house. Loyal, more gasoline oil. More gasoline is being sold and that Z put the supply side..
What's on Your Life Resume
"All right. Let's strip it down. Die right in as alita whether you're a ceo someone in the c. Suite a sales leader or leader in any capacity in a marketplace where everyone from entry level to see is changing jobs and careers faster than every point in history. We better have a great resume. But i you actually focusing on the right things and what does it take to build a resume that is relevant in order to in order to make the impact you one of make. Well stay tuned because you're bound to find out our guest on this episode is jesse iceland. Jesse is one of the most impressive resumes out there. He started the world's first private jet company. Machi jets became the world's largest private jet cod company with a five billion dollar come consummate sales prior to the acquisition by warren buffett's company. He has partnered him and his sold zico. Coconut water to coca cola. Here's the number one bestselling author of living with a seal and his latest book living with the monks. He's run a hundred miles nonstop and he's passion for football is made him one of the owners of the atlanta hawks so he and on top of all that. If there's no pressure enough he's also the data four and he's married to the spank founder. Sara blakely why isn gentlemen put your hands together a welcome to have your make took a while to get this to happen them. Really happy that you're with us. Thank you thank. You think it'll be man appreciate you have miat. It's an absolute pleasure. Now you are a guy who has to say has lived outside of the box is a is a gross understatement on through also speaker endurance athlete. You even a rapa. Most people probably wouldn't even know that because they're probably too young to know that you've done all that and at the same time one of the things you know what i speak about is being an authentic leader and one of the things that i've watched as i've watched over your history over all those years is changing. Hack your change. The way addressed bit. But jesse seems to have stayed the same told to us about the poll and the pressure to be something else. Start marquis jets. You probably felt puerto of suit and tie stain staying authentic. Yeah i think one of the reasons by the successful marquis jet in these other ventures. I've been able to fight through that impulse to to be something out. Not so i've always stayed in my lane by lane get a little bit different a little unconventional unorthodox. But it's my lane. And that's where i'm most comfortable in and I've always been able to keep my own spirit throughout all my different journeys. I've worn a lot of different hats. But i never really conform been you know one of the early lessons. I learned as an entrepreneur is the importance of differentiation in You know bor- boring doesn't really work. Always tried to not just be myself in. Its works for me and I always. I'm always asking myself of how different. How different house might teach different. But it didn't authentic way too so going back in time because you know i read about you being a couch surfer with revolt on a spot. Oh the council along the way while really sort of looking for yourself. is that pre the rap days aura. That after that no stink between the ages of nineteen to twenty two. I slept on. I think eighteen different couches. My friends couches all the way trying to figure out. Exactly what that may looked like for me Trying to land on my feet at a lotta egg on my face early at a lot of egg on my face later on in my life. I've had some big wins but part of the journey is having lost. His two and i was lucky man. When i started out i started out in the music. Business no connections my father on the plumbing supply house and i lived in la. I got signed to a record label. I got dropped from the label. And i moved back to new york with two things on my resume i was a kiddie pool attendant and i was rapper. That was going to get a job on wall street. So i relied on friends to take me in until i kind of found my way so i never forgot that. I've never forgot the opportunity that was afforded to me about people believed in nate. Even when i had nothing was a big part of of what ultimately shaped me a lot of times in my journey even marquee before the five billion sales that you mentioned there are a lot of times where this is gonna work. I can't do this. I'm not qualified No aviation experience. We had no airplanes while we started and But through that young those early days of couch surfing as you like to call it it. The tremendous guilt adjustments medic grit. And that was probably the number. One is saying grits the number one indicator of future success. But for me. That was a big a big thing that never accurately man even now still had shot mentality. That never left me
Fresh update on "warren buffett" discussed on Guaranteeing Your Retirement with David Graham
"Have offices in Washington and Tampa, Sarasota. Come and see us. Our website addresses Graham Capital advisors dot com. That's Graham Capital advisors dot com and I online we have stashed Bram He's the managing director, chief investment officer for Grand Capital Wealth Management. That's crab capital wealth dot com in Washington, D C Good morning to you. Good morning, David. Well, here we are. It's another week star. So let me guess it's the last week of the month. So how did the market is through this past week? Markets were weak across the board a combination of a different few events, one of which would be higher interest rates on the long into the yield curve. We saw interest rates and tenure in the 30 or material or appreciate materially. Which put downward pressure on financial asset prices, especially the growth related names like the information technology or technology sectors, who disproportionately benefit from lower interest rates. But then also again, given you take also get punished abnormally more when interest rates rise and rise faster. We have a couple of those dynamics. Obviously, there's a continued worry, uh from the Federal Reserve about the economic recovery. Basically Fed chair Jerome Powell toured Washington, D C in front of the Senate and House to give his semi annual testimony where he touched over a couple different comments or a couple different topics. One Naturally, the vaccines for the Reserve and Federal Reserve leadership are keeping a close eye on the vaccine rollout and the continued progress in getting people getting needles in arms. Basically, the more the better, The more people are vaccinated them, or they feel comfortable in the general public feels comfortable going out and spending. Which is certainly the focus of the Federal Reserve. More people spending me more jobs, and that cycle feeds on itself. Secondarily, there is a concern from the Federal Reserve, especially in the real estate space. Both residential commercial for separate reasons. Residential has been a very hot nationwide has been a very hot area over last year, especially in Florida. Florida remembers always magnified ah to the good into the bad compared to the rest of the country. Residential real estate. It's benefited greatly from lower interest rates. They've benefited greatly from people moving away from cities and moving into suburbia where maybe there was a little less in the way of supply than say, maybe 10 years ago on a relative scale, so supply to me and benefits. Ah, the housing market at least the people who own the housing already Um, and lower interest rates. You're starting to see that unwind a little bit. Obviously, interest rates higher makes housing more expensive, secondarily. The question is how many more people want to move out of the urban areas and move in suburbia where supplies tight have we already seen that wave or to happen? And then subsequently from that, is that it Because if that's it, then you have a dynamic where you're going to see homebuilders trying to catch up which you have, if you if you print participate in any Of the year and or quarterly earnings calls from home builders. They're building homes as fast as they can, and in their limitation right now has something to do on their into financially. It is actually getting the commodities to build the houses. So you have a lot of supply now starting to come back online. And is this a dynamic where you're gonna have a bunch of supply come online this year, where demand is simply waning or not necessarily there at the same rate, as it was last year. So you have a couple different concerns there in the residential world Commercial that your your pals very worried about commercial and to be frank. He should be, uh, if working from home Even at any type of material percentage is permanent. And right now you're batting about 50% nationwide about 50% of Florida. It s'more. You have a higher percentage of people going into the office. But nationally, it's about 50%. Obviously, that's going to continue to get better is to your progress is but Let's say you have a permanent rebounds of maybe say, 10% 15% 3 years from now, where you have 10 15% less demand for square footage in the commercial building space. That is a material event and will cause a significant re balance and the supply demand dynamics of commercial real estate. Why the Federal Reserve is worried as well. The Federal Reserve works for the banks, the largest banks to charter holders of the Federal Reserve system. Those banks have those mortgages have those commercial loans on those buildings? And there is a concern that starting this summer you could see a lot or a wave of common it violations and in covenant is basically an annual checkup. If you're borrowing from the bank on a building, you have an annual check up with that bank. And you have to have certain parameters. One cash flow. You have to have certain cast reserved for improvements on the building. You gotta make sure you keep up with the building on certain basic. Uh, improvements on then secondarily and probably the biggest David is you need to keep a certain amount of equity relative to debt or relative to the price of the building. And what happens is those banks every couple years will re price will reappraise the building. And if the building comes down in value And say your debt to equity or debt to the praise value the building. Increases. So if the debt increases if the portion of your equity shrinks, you might be required to throw more money in to make sure that you keep that balance in equity to debt. Uh, payment for as and long it's as one you live. of those dynamics That means where that, I think a lot of people at least are concerned with most that those annuities, landlords you can't run out of who money have gotten with 41 really can not the much other hand? help from the government. You Especially know, you on the commercial can side. The dull Run just out walk of money away. We'll turn your the investments keys over and could say, Look, end. you So know you you, I always tell uh, people praise that my most building financial 10 to advisors 15% will tell lower you that the best Then age where it for was starting a year ago an income on annuity now is you between want me to 70 put in, and 75. you know an additional So that $15 petty I was for the maximum million? payout. Well, I don't want to do If it you already and have the other the a variable keys. I'm annuity gonna walk away. that Well, you that's need that's to get exactly out of it because order there's new so much re that going it's simply on now with this virus you're not that sure are behind about the scenes it. You don't understand that you don't completely. see, but it's Then not come and good. see us. We So can right run now, it into a computer. uh, client Fauria. this week called We'll and asked me see why what interest you have. rates You are going might up be surprised for mortgages. to find that it's I okay. guess they're going up a little But bit. then, on the other hand I guess the question No, is we to you. might be able to do Is what's called it an iris code it feasible 10 35 for mortgage exchange, rates to start and that still means going to transfer down? Is there to any another bearing between annuity interest rates for and you, why and does high you interest usually rates going try higher? to find Was a company that that will I mean, it's bad pressure for stocks. Right. So we've used this analogy before the last couple years on the show. Think of interest rates is gravity and I'm totally some very much so stealing this from from Warren Buffett. The same investor from Berkshire Hathaway. Gravity's like interest rates. If gravity's low interest rates are low, you can jump very high and stocks could go and price very high. Conversely, if gravity is eyes hi, uh And if interest rates are high that suppresses your ability Uh, to say, jump high in the air and or for stock.
Health venture led by Amazon, Berkshire, JPMorgan is ending
"The joint healthcare venture between three of america's most powerful companies amazon j. p. morgan chase and berkshire hathaway is disbanding after three years high profile. Ceo's jeff bezos cheney diamond and warren buffett had teamed up to tackle one of corporate. America's thorniest problems the high and rising cost of employee healthcare and the initial announcement of this partnership was dramatic shares of other healthcare companies tumbled on fears about how these leaders might find a way to make it all less expensive and more efficient in june twenty eighteen. Becky quick spoke to warren buffett and jamie diamond about their shared. Goals are water of ideas out there. A lot of things will be done better. We know the fraud. The administrative 'cause we overuse underuse of of of various drugs and specialized procedures. We know the end of life is often costs. Far more than should and is far more painful should be So there's so many and big data there's so many things to do but the goal is better satisfaction for employees and eventually we can learn a lot of things and maybe help inform america. How we can improve some of these things. Have you heard from aaron place. Yeah i i Addressed a group of about one hundred and thirty or so of the various. Cfo's from all our subs Just a couple of days ago and and they're very interested in the subject and the interesting thing is as we went around interviewing Large number of perspective. ceo's we didn't run into one. That didn't think that improvement was both possible At important nobody disagreed with the the mission. The importance of it or or Feasible only but it's also a very very tough nut to crack havens initial. Ceo was dr a tool galante new yorker staff writer and surgeon. You've heard him on this podcast several times. He's an expert. In how complicated and tangled the american healthcare system is. It's a maze of doctors. Shirts drugmakers guerande. Step down as ceo to become chairman this past spring as the covid nineteen pandemic grabbed the day to day. Attention of the medical community. As haven shudders most of the firms fifty seven employees are expected to be reassigned to amazon berkshire hathaway and j. p. morgan chase. Here's joe kernan. W toward toward healthcare is hard. It's hard to solve health care. I don't care who you are. I don't care if you're talking about. Yeah i don't care if you're warren buffett jeff. I just hope it's not that you know what we lost a couple of million dollars. We'd better shut this down on those three guys. Diamond was that all three of the companies. Were doing some of their own things That they had taken out of the story tapeworm. That's really tough to when you're talking about more than seventeen percent of gdp versus five percent back in one thousand nine hundred sixty san right james warren buffett and jeff bezos saying. Forget it. we can't fix this problem then. Yeah i mean we talked about how many pay three years this is going to be it. This is going to be. Our problems are over right hi talked. I talked about this on the phone yesterday. Try to understand what happened. And i think becky's right i don't think it was that they shut it down entirely because they were losing money or something. I think in many ways it was designed. I don't want to say it was designed to fail but it was it was it was designed number challenging way which was the big lesson of this was actually insurance is local. These health systems are local. And trying to do it on a national basis with with employees in all different types of locality. all kinds of different systems may very. Well be too hard. I think a lot of the lessons were learned. Have been implemented are being implemented at j.p morgan in areas like new york in columbus ohio. For example. i think you're seeing what amazon's doing remarkably actually in seattle. They're their program therefrom -ployees which also include warehouse workers not just not just executive employees. So i think there are some things that will come out of this but obviously not Not the big headlines that that had been expected three years ago when this began. Let's say amazon has rolled out a lot of different initiatives over the last year or two. I was looking at a store yesterday. That kind of laid out some of those things just the idea of amazon health. The they do it for their employees as you mentioned andrew and i think they have thoughts of of selling that other companies too so i i don't think we're going to see the end of any of these companies or any of these actors trying to get healthcare costs. I guess it's just a question of how you do that. And you're right. It is local. You you've got to do this on a local basis but healthcare costs are are not going down. You know they rise faster than inflation. It's a. it's a huge huge issue More than seventeen percent of gdp and we do have to continue to try and find a way to tackle this
Fresh update on "warren buffett" discussed on Financial Quarterback Josh Jalinski
"You want to have a smart spend down strategy number one. Number two. Then you wanted a tax smart vehicle that you're putting the money into. That makes sense. Yes, it does. I have one more question for you, Uh, being that I'm 76 if I should pass away a couple years from now, God forbid. Um, When does that 10 year rules start for my next beneficiary? Like my wife, For example. Uh, Well, No. It's 10 years from the ire a must be exhausted. From the 10 years following the givers death. So your brother's Yeah. Okay, uh, another words that I don't I don't, uh, fall into that category. In other words, it's just is 10 years, right? Exactly. You don't get another 10. That's why we want to spend down your money so your heirs can get 80 years of tax regrowth. You may say, how do I get 80? Years of tax your growth? Just look of Jeff Bezos. Just look at Warren Buffett. Stocks don't pay dividends. They don't pay tax till they sell the money that makes sense. Yes, I thank you for answering the call so we could help you with it. Call us aided 8 90 Day, Josh. Now they do paste taxes. I don't want to be, but they pay it upon the sale. So and just disclose I I own I own like, you know, one share. Berkshire athletes, Doc, but s O the beauty of Berkshire. Doesn't pay a dividend. You might say I don't want to pay. Whatever it is $364,000 a share for Berkshire. Well, you could buy. But that's Berkshire au by Berkshire B. And I'm not recommend you, Byers sell anything like that. And then When you have Berkshire Hathaway there other stocks that don't pay a dividend. A lot of tech stocks don't pay a dividend. Because the owners they're smart. They don't want to pay, you might say, Well, why don't stocks pay Devon anymore? Because we're dumb. And we don't demand it. So one of the reasons Shareholders, you know? So if you take a company like Amazon $3092 a share And We own it for clients and Things like that. But Does not pay a dividend. So there's no tanks unless it's sold. Very interesting financial tip. No contrast that with a with a stodgy companies like IBM, IBM Had far greater revenues for years. 118 Bucks a share. He's a 5.48 dividend yield. I like the concept of dividend paying stocks because you get paid to ride out volatility. But in this bloated market Investors are choosing growth. Over income. Eventually, income will be Fair game. You know, we might own IBM for some of our Customers, so full disclosure. What the point and when it recommended Barzani's, but just an example 1 618 hours once 3000 you mean so what? Well, how is that The case will they didn't pay out dividends for like 20 years. Amazons. They just reinvested back in the company. And they followed the Warren Buffett rule. So, Jim any other questions before we move on to Ken No, thank you for answering the questions you do answer. Thank you. And we'll help you. Through them at 80. 88. 90 Day. Josh. Next up, we have Ken Who wants to buy a home to rent to partying. College students. Go ahead, Ken. Yeah, Just a couple years back. I called and I was getting your advice on 5 29 College savings. And you suggest that potentially Hey, why don't you Maybe buy a house. You can set up residency for the kid. Yeah, maybe even rented out. Remember? So Yeah. Yeah. Now since the pen dedicate and that we're all doing it online, So do you think that strategy suggested stands or the as a change for you? I think it still works because Rich kids and by rich, you know. Upper middle class Children will want to go to college for the college experience. I, for one, maybe would be a little less hot on it now because real estate markets have gone up. But if you can get a good deal in a college town that your kids are gonna go in And they could claim residency. It's still a great idea. I do believe that ultimately going to college. Will turn into Passe thing. I think it's a waste of money. Ah, waste of efficiency. I used to tell people You know? People go well, I want my kid to get the college experience. I don't I really have no desire. To send All this money to some school that has values and pathetic Aeltus mine. So my kids turn out to be socialists in or whatever. With degrees that are not functional. Now I'm not against education of the master's degree. All these licenses in our business. But I think a lot of people You know good people send their kids to college ago. What happened? They don't believe in anything I believe in anymore. So you know what they're gonna do? They're gonna vote with their wallets and they're gonna say you know what? I'm not gonna send the door liberals woman is gonna do Online school or conservative school. You know, I think you'll see that more and more. So You know, I don't think Going away for four years and partying. Getting drunk is really preparatory for the next phase of your life. People say. Well, how did you Uh, How do you grow and save? You know your first you know, you become millionaire by 28 people. Someone's know that about me coming from nothing. Cause I didn't screw around in college got married young And my twenties were spent building my business. For summary. I'm fun. I have friends. You know, I I got my friends, but They were all like minded, high achieving people. And.
Haven will shut down, ending joint healthcare bid by Amazon, Berkshire, JP Morgan
"Started by Amazon. JP Morgan Chase in Berkshire Hathaway is dead. Executives Jeff Bezos, Jamie Diamond and Warren Buffett launched it three years ago, hoping to transform health care. And reduce costs for workers that their three companies, The Wall Street Journal, says havens goals were too ambitious. It also lost leadership because of the pandemic. You may be paying more for
Fresh update on "warren buffett" discussed on Balance of Power
"As thoughts on Saturday and fully square. The rally attracted politicians, including Senate Majority Leader Chuck Schumer, Attorney General Tish James and Andrew Yang, who's running for mayor, Yang said. There is no place for hatred or racism against Asian Americans or anyone else in the city and former President Trump will be the keynote speaker at the conservative Political Action Conference in Orlando Sunday. Many are waiting to see if Trump gives any indication that he'll run in 2024. Trump is widely expected to win a GOP straw poll taken among CPAC attendees. Prior to his afternoon speech. I'm Jim Forbes. California is allowing people in the United States illegally to apply for stimulus money. Cameron Fairchild has more illegal aliens who paid state income taxes, maybe given relief payments of $1200. Last year, it's estimated around 600,000 illegals filed tax returns in California I'm Cameron Fairchild, one Arizona Republican, is defending his decision to speak at a conference where the organizer gave a speech reflecting white nationalists ideals. Congressman Paul goes, are told The Washington Post. He attended the America First Political Action Conference to reach a wider range of young conservatives. He did, however, denounced white racism, saying he believes in a strong legal immigration system. Next point is the organizer of the APP Pack said during the speech. Quote white people founded this country, this country wouldn't exist without white people and white people are done being bullied. The mayor of Maradona, Connecticut, says he's thrilled that the first lady will be visiting the city next week. Leslie Bowl has more. Dr. Jill Biden is scheduled to make an appearance and married in on Wednesday. That announcement was made public Friday near Kevin's car. Patty says the city is quote honored to be hosting Dr Biden. The White House has not revealed the reason for her visit, but officials say more details about the March 3rd event will be released soon. And Warren Buffett doesn't like the world that seniors are living in on a fixed income and his annual letter to Berkshire Hathaway investors. The quote Oracle of Omaha said fixed income investors whether they have pension funds. Insurance companies or are retirees faced a bleak future? That's due to the bond market, having trouble despite the economy, gaining momentum during the pandemic. Buffet pointed to Japan and Germany as countries where fixed income investors.
Haven, the Amazon-Berkshire-JPMorgan venture to disrupt health care, is disbanding after 3 years
"Ventures started by Amazon. JP Morgan Chase in Berkshire Hathaway is dead. Executives Jeff Bezos, Jamie Diamond and Warren Buffett launched it three years ago, hoping to transform health care and reduce costs for workers that their three companies The Wall Street Journal says Havens goals were too ambitious. It also lost leadership because of the pandemic. You may be paying more
"warren buffett" Discussed on We Study Billionaires - The Investors Podcast
"You're listening to ti. I pay today's episode. We sit down with author and george wasn't selling university professor of law lawrence cunningham most known for his wildly successful publication of warren buffett essays. Lawrence is the most prolific research an author of buffet and berkshire hem ridden or two dozen books on the topics. In this episode. You'll learn how to identify equality investment how to distinguish goodman's meant from bad and what would happen to berkshire hathaway beyond buffet. Last year. we will also talk about whether how the way is currently undervalued. This was a fun and wide-reaching discussion. So sit back in jarrah discussion with lawrence cunningham. You're listening to the investors podcast where we studied the financial markets and read the books that influenced self made billionaires the most we keep you informed and prepared for the unexpected. Welcome to the investors podcast. I'm your host state borders. And then today. I'm here with my co host trae lockerbie and we are so excited to how lawrence cunningham with us. Who literally wrote the book. All warren buffett. Thank you so much for taking the time to speak with trae me and most importantly our audience here today. Very happy to be here. Thanks so much. Delores want to start by talking about warren buffett. The man right. We know a lot about his philosophies which we're going to get into but you know him personally of many times even hosted the symposium with him back in nineteen ninety-six. That kind of led to this compilation or compendium of his essays. And i want to address all of that but start by kind of what makes buffet who he is so for example. Some of our listeners may have figured out by now that you can study warren buffett to death but actually replicating his performance is highly unlikely. And i just want to know what you attribute that to most right. It's not replicable or at least not like who he didn't be replicated. It's a combination of compelling traits people. Be happy to have one or two but it starts with rationality. He tries always to keep his emotions in check and focus on on the facts on substance on on our abilities. Second is analytical acuity. He tries to think deeply and hard about any particular problem whether it's a business and industry person and he's humble get tremendous melody particularly given his straits and rationality acuity. He knows his straits knows where he can do. Well he knows his limits circle of competences his famous phrase that defines the difference between what he knows and is good at what he doesn't know tries to wait. I think if you're trying to get the secret sauce maybe surprising things. I think the singular trader or skill that explains most of warren success over that long period and in particular settings is his ability to size people. He knows it's an uncanny. Ability made the others to teach ourselves a little bit. We can break greater discipline we can develop in a little acuity. We could redefine our circle of competence. But this canny about the size of people whose trustworthy and who is he can tell the minute whether this ceo will be faithful steward of berkshire capital. He can tell pretty easily whether this family will be a reliable partner in a long term business whether this ceo this publicly traded company is worthy. How can he do that or can we get out of that. I'd say the skill uncanny. It's hard to teach. But here's the tip. I have the lesson taken from it to another thing. He does at the slightest whiff of lack of trustworthiness. He goes away so he's ultimately very skeptical ersan of human nature of the incentives that drive us to be selfish or to be emotional. Irrational is a high hurdle to gain warrants trust. He runs a trust based organization delegates managers enormously way as who get into but he does all that only with a handful of people and that i think helps him with the ability to discern trustworthy Very high he has. The tests may be useful to ordinary people thinking about this themselves. He calls the son-in-law pastored donald hall task. He only wants to go into business with people. He'd be happy to have his child mar or a version of the test is the executor asked. The people he'd be happy to have minister is will carry out his wishes. After he's ram that a lot of people go into business with people wouldn't wanna watch a football game list or trust with their estate but he's been pretty rigid about that and so when you look around at his inner circle. Let's say receipt. The companies members of four top shareholders. The company the ceo of invest is all very high grade. People are very not just professionally competent but ethical and so there have been a couple of mistakes. Everyone makes mistakes including warrant. But so i think you're right. It's hard to replicate the skill set. I think any of us would be happy to have one of those four virtues or skills bind them. But i think we can all learn something from each of those. That's really interesting. I've never actually thought about it that way after meeting buffet and hearing him speak even for short while you see the high intelligence level the high iq and he's rattling off from memory from dating back decades. He's always citing dates with events that you just really has a mind for numbers. And it's very apparent he has a very high iq but what you brought up. Almost a superpower is he actually has sounds like a high emotional intelligence or e. q. And you don't often find both. I've never actually really consider that with buffet. Having both in that department. But that sounds a little bit like how you're describing him right. I should concur with the high. Iq witness master updated in history. Facts numbers. I just add a point. Where the q the q go together in a business setting. I get this question from young. Ceo's a lot about well how much diving's details do i do versus. How much delegation. And which buffets approach in my oppression from warriner's. He dies into the details. He knows exactly how many making how many candy bars seizes sell. What skill content of precision cast parts assembly is. He knows all that stuff. You remembers it but it doesn't second guess people it doesn't think you oughta make more candy bars or reduce the spiel raise insurance rates. He stays out of direction but he knows what's going on and so it's kind of a nose in body out kind of idea and why is usual is useful precisely if your plan is to trust people you won't know whether they're vindicating that trust must know the facts so you know the facts and then leave molo. And then you'll know the occasional miss create appears. They don't tell the things they tell you things you know be true. You'll be linda to weed out the mistakes so back Like unique you. You're exactly right. Try it's rare extremely valuable. I think being aware of it can help us. Ordinary people do better in settings where the combinations eagerly useful. I'm glad you tustin that. Because i don't think buffet gets enough credit for being in operator the why popley things of buffy the stock picker and he's doing great job of that but was really excels in is running a conglomerate with wholly owned subsidiaries. And would you just touched upon. I think that's really holy grail of run business figuring out how to set up a disinterest system. We don't have to be included in every single decision. Otherwise she's just can't scale but also knowing what's going on the business so you incentivize and motivate everyone the right way and lawrence buffet. Does that.
Roger Ver of Bitcoin.com: True Economic Freedom
"For those who are viewers. Who for some reason. Don't know who you are. You wanna give a quick background kind of who you are and how you got into blood. Sure i was much younger. when i got into blockchain. it's been ten years now. But basically i was the first person that had any sort of capital to get excited about this base. I had my own business in silicon valley heard about. Bitcoin dropped everything to start focusing on that. And so i basically funded the entire first generation of bitcoin businesses and back and it was only bitcoin crypto currency was just bitcoin and bitcoin wallet some bitcoin exchanges and so these are companies. That people would have heard of today like a bit pay and cracking in blockchain dot com personnel. Of course then. A lot of people don't know it. I was actually a second person ever involved in in ripple as well so jed michaela came up with the idea and then approached me said he said he said. I think bitcoin mining waste what we can make. It does require mining. Are you willing to fund to make that happen. So i said sure. Let's give that a try. So actually i helped start ripple as well and then a number of other crypto currencies out there and i've been involved in the space a fulltime for almost exactly a decade. Now well. I mean those. That is a great groundfloor. The list of groundfloor is to get in on. I mean people. Talk about warren buffett. I think you might be warren buffett two point in terms of you just get getting great investment. So kudos to you. But if if we're gonna be talking you know right now we got to mention you know you've always been a strong proponent of bitcoin cash andy idea of bitcoin being electronic peer to peer network or peer to peer cash network but the network recently underwent a hard fork was over a mining tax of eight percent essentially a bitcoin. Abc wanted to tax the miners eight percent and and put it into a development fund You were against that and you're actually won by quite a large margin. Talk us through a little bit. Why you're against de-mining tax and kind of get much pushback. I mean it seems like it was overwhelmingly the bitcoin cash amini sided with you in this matter. Yea i initially had a pretty open mind about it. And then i don't think so much. The problem with diverting and there certainly was a problem with it but the minor the only a small part of the problem was diverting part of the block reward to pay for development within the ecosystem. The big part of the problem is who decides. And how did the town. And there wasn't any sort of way to figure that out and that was a real big problem. I think and it just was going to lead to a never ending amount of infighting and the money was gonna wind up going to those the most effective at political lobbying rather than those that we're building the most effective platforms to bring more economic freedom and to the world and more peer to peer trash useful things to the world and i think an example of that is bitcoin dot com and arguably has done a huge amount to bring more people to to crypto currency and bitcoin cash specifically than just about any other website yet. These developers are saying about dot com. Shouldn't get any money. They have the most money already. They don't need it. Well the fact that we already have a bunch of money shows that we've been effective with the resources that we've had available and so that's the problem with with government entities if the government entity does a bad job. They get more money. If a private business does a bad job they get less money and they go out of business. Those resources wind up being allocated people that use it more effectively and was basically bringing central planning in socialism to bitcoin. Cash in the entire point of cryptocurrencies. Let people opt out of those cyncially command in control. The economic systems allow people to be able to do whatever they want with their own money. And so i think it was a really bad idea and it was sad that caused infighting within the cryptocurrency community and the really shocking part. Is that the people that were in favor of this central planning in central diversion of part of the block reward within trying to call the people that were opposed to it. The you know the central planners bitch was the name that they came up with which was a play on bitcoin in bolsheviks i guess but it just seems really strange that People think that that's a good thing but at the end of the day. And i've been saying this since two thousand eleven if something better than bitcoin comes along great if something better than bitcoin cash comes. I'm to promote whatever option. I think has the best chance of bring more economic freedom to the entire world. And that's why i'm so bullish about bitcoin cash as it works for super fast super cheap super liable payments for every single person on the planet. Whether you're young or old rich or poor black or white. It works for everybody right now today. You don't have to wait for some other future. Technology come into existence. Bitcoin cash works today. And that's what has me so excited about it.
Buffett on Small Business: Its an economic war
"Berkshire hathaway chairman and ceo warren buffett. He joins us on the squawk newsline. Also david salomon. The chairman ceo of goldman sachs goldman by the way is announcing a two hundred and fifty million dollar donation to establish the next generation of the ten thousand small businesses program. Gentlemen thank you both for being here and warm. We'll start with you. You have not spoken publicly since the last annual meeting of back in may for berkshire hathaway. You weren't planning on speaking publicly again until the next one this coming may. Why are you taking time today to talk about this issue right now. Well i think it's it's it's so important that small businesses which of become collateral damage in a in a war. That are our country needed. The defied but We'd in effect bomb charlie At an induced shutdown of parts of the economy hit many types of small businesses. Very very hard and We made some provision for that and march in terms of the cares act but then nobody really knew how long the Now this self inflicted Recession would would last with this particular effect on small businesses so We need another. We need another injection to To complete the complete the job and congress's debating right now and i just hope very much that they extend the p p. A plan on a on a large scale to Let the people who may see the of the light at the end of the tunnel. Get to the end of the tunnel but So it's it's very timely. It's very important and And i do think congress will do something. And i hope they step a very soon because every day is important make people wonder why would bid business. Leaders are are stepping out and speaking on behalf of some of the small businesses. What what is it that concerns you about this. Why is this an issue that you're you're really putting yourself out there with well. Big businesses generally a gun very. Well not the if. They were traveling. Entertainment related days. They still have difficulties but The fed did a terrific job. The they saved us from something that would have been a lot worse than two thousand eight nine When they acted in march so large companies who in the middle of march early march were were going to have no access to capital The market just open wide and the corporate issuance was huge but the small businesses Received some help. But it's not getting to the end of not getting to the end of the tunnel and You know you'd say it's situation. Just take food food manufacturers. The big names Done terrifically people haven't quit eating you and and And the large grocery chains have done very well margins wine salesmen. Good but if you had to get your food And i small restaurant or medium size restaurant and and social distancing was required. Everything you just. You just killed the economics for somebody that may have been working for decades with our family to build a business and reinvested their earnings and improving their their establishment and then Through no fault of their own and edict comes along that That kills all their dreams. And it's it's it would be so foolish to The not follow through on this and enable those people to get back to where they could Do the kind of business they were doing before you know it. it it. It's an economic war and and And certain you know when we wanted to world war two a lot of industries were shut down and and Everything went over to the defense production. Well we've shut down a lot of people in this in this particular Induced recession and and others are prospering. At and i think that the country owes it to the m really millions of small business people. And i've met a lot of these people through the goldman sachs program just renewed ppp. And and Get us to the got us. The end of the tunnel.
Buffett's firm trims Apple stake, invests in drugmakers
"Seeing a thematic rotation out of bank stocks into farmer during the quarter. Let's start with the new positions in the pharma sector berkshire-hathaway taking new stakes. An abbvie merck and bristol. Myers squibb each of those positions worth about two billion dollars as of the end of september. Warren buffett's for also disclosing a smaller position in pfizer. Worth about one hundred and thirty six million at quarter end and maintaining nine digit home in teva and biogen on the financial side. We're seeing a continued reduction in bank names by berkshire hathaway the firm almost selling out of j. p. morgan entirely paring back at stake by ninety six percent. Hold just under one hundred million dollars worth of stock also sizeable reductions in mt and p and see as well berkshire-hathaway providing interim filings on wells fargo and b. of in august and showing a slight decrease in position since then in each of those names. Interestingly there was no change in the firm's nearly five billion dollar stake in us bancorp and speaking of multibillion dollar steaks. I know we love to talk about apple here. The way into three sold about four billion dollars worth of apple stake at today's price. Although that was a paring back of less than four
Profit jumps 82% at Buffett's firm but virus hurts business
"Warren Buffett has gone from shying away from buying stocks back to being one of the world's biggest re purchasers. Buffett's Berkshire Hathaway spent the third quarter buying back about $9 billion worth of its own stock more than it had repurchased in any full year in its history. Catherine She Glinski covers Buffet and Berkshire Hathaway for Bloomberg News. In recent months, we started to see him find other ways to put the capital to work. He's made a big bed and Japanese trading houses. He's Berkshire has taken stakes in snowflake. Um, and now we're seeing him say, Hey, I'm willing to put a lot of money into work in stock repurchases. I think that really shows that you know, he is seeing some value in Berkshire zones prospects. Berkshires. Operating profit dropped 32% heard by the insurance units first underwriting loss since the end of
Movie Theater Stocks Have Two Problems
"Movie Theater Stocks Are Getting hammered today a sinner world group, which is the second largest theater chain in the world. Announced it is closing its theaters in the US and in the UK here in the US, it's regal cinemas in the UK. It's a world. So all told we're talking about more than six, hundred, fifty theaters roughly forty, five thousand employees who are going to be out of a job and the stock is down. Forty percent and. In sympathy I guess you could say shares of AMC, which is the largest movie theater chain. Down ten percents, cinemark down fifteen percent. We've seen sort of this drip drip drip of tentpole movies having their release date pushback. The latest James Bond movie which was supposed to come out this past April got pushed. November, and over the weekend was announced, it's getting pushed him next April and it's among other things Jason It is a reminder. Of how those big action tentpole movies Drive this business. Oh yeah, and I mean it's not just the theaters that are really feeling the pain today to write its. Properties which is A read that focuses on the entertainment arena in in general, but they have a lot of exposure to to movie theaters and in certainly a APR's feeling a little bit of that painted as well. Given given what we know. Is playing out in the movie theaters and you know when you look at cinema world, I mean. Into kind of the first thing. The first thing that made me think of it's kind of like kind of like Pluto, and Pluto was downgraded from planetary status like sin world is more like a Dwarf Planet. Now, like this isn't this isn't a world anymore this is really a company that's just struggling to figure out how to survive at this point because they've got to problems. They've. Got, two really big problems they got a supply problem and the demand problem and like noted with with the the actual releases having the content to get in those theaters. That's one problem. But then the other problem, obviously, the health concerns regarding the pandemic people just don't want to go sit in movie theater like like we used to and and so all of this is playing out. On these theaters big and small, and and when you you look at the cinema world's financials I mean they are facing the same problems as everyone else missing revenue falling off a cliff. They've got a slug of debt on the balance sheet eight and a half billion dollars and a half of that lease liabilities. But that speaks to the to the weight that that that those theaters can conserve right that drag that they can serve when when they're not being used in a theater is just like a restaurant is just like a retail store they're all of these high fixed costs in keeping those theatres open paying for those leases keeping them staffed and open. In. So you need traffic to go through them the more traffic that goes through the more profitable they become and that's great and good times. But in bad times as we're seeing now, just profitability just vanishes in I think the trouble. The. Trouble that they're facing. Is that you know when you start looking forward and try to figure out exactly how people are going to be feeling about going to the movie theater when all of this stuff passes over, I mean when when we finally turned the corner and in the concerns For Health aren't aren't the same as the are today are people. GonNa want to go back to the movie theaters like they did before I mean some will no doubt. But for all of the time that passes while we're not going to those movie theaters, all of the time that those theaters are suffering other forms of entertainment are are gaining right other. Forms of entertainment are becoming more and more an option, a nice substitute for folks whatever that may be You know all the way down to new ways of of catching movies, and so we're seeing we're seeing distributors figuring out new ways to get movies out there. We're seeing consumers figuring out new ways to actually watch movies and all of a sudden. A year from now and I mentioned this on on twitter earlier today all of a sudden you really have to be of that good enough risk in that like hey, you know what? It's not the movie theater but I'm sitting at home. I'm eating the pizza I'm watching a new movie that that's good enough for me and I'm okay with that I don't need to get my car go to a movie theater in. So all the more time that passes I think the more difficult it becomes for these theaters to really. Get back to where they once were in. Under. Unfortunately it feels like you know we're we're going to be dealing with this certainly for the rest of this year I mean granted only a couple of months left really few months left but I mean, you know going into twenty twenty one. I mean what does this look like when April or May comes around I don't know we don't know enough yet. But but when you look at central world itself I mean it's really silly United States seventy, five percent of their revenue comes from here. So what's going on here really matters to this business and right now it's just not looking good. Yeah and one of the thoughts I had when I was reading through this stuff this morning was. member. When Warren Buffett bought the Omaha World Herald. There was just sort of this sense. Like. For someone who is so rational in his investing it kind of seemed like he let nostalgia. Get the better of him and you know what he can do, whatever he wants his money although he did sell it. Earlier this year. But. It reminded me of that and I just thought I think there is a possibility where. Some, very wealthy person at some point in the next year or two just maybe not to by. AMC Holdings whole cloth but I wouldn't surprise me if someone was just like not now I love movies and I want this to survive and if it's if it's break, even that's all I care about but but other than other than. Sort of a very rich angel coming in given everything you just laid out with the business I mean. I like how you put it I mean. It's not just a demand. It's not just a supply and demand problem while I mean, Hey, listen apparently Jeffrey Katzenberg get some pretty deep pockets. I mean Chris are you thinking what I'm thinking Quigley theaters let me just rolls right off the tongue doesn't it qube theaters? Hey, it's a possibility. Anything. Positive.
The Positives and Negatives of Investing Your Money in gold
"The positives and negatives of investing your money in gold by Robert Farrington of the college investor Dot Com. Do you remember all the hype around gold in the not. So distant past from two thousand, seven to two thousand eleven. The value of an ounce of gold went from about five hundred dollars to eighteen hundred dollars. If you would have purchased gold in two, thousand seven, you would have nearly quadrupled your investment in just five years. Now, that is one heck of an investment. Around this time I also pronounced that you shouldn't buy gold and it received a lot of criticism in more recent years. Gold has settled back down to around thirteen hundred dollars and sometimes slightly less than that. So hopefully, you took my advice, but the question still remains in the back of people's minds. Would it be wise to invest in gold right now? At, its current price gold is worth five hundred dollars less than its previous high. So one would think that an increase in value could be on the horizon. Here's what you really need to know about the pros and cons of investing in gold. Pros of investing in gold. In my opinion, there are three major pros when it comes to gold investment one, it's equality hedge against a down market to it will still have value of paper currency inflates and three. There is an apparent upside to its value versus years. One Gold is a quality hedge against a down market. As we all saw in two thousand seven when the stock market took a dive everyone began putting their faith in gold instead with the higher demand in gold and with a limited supply. The price of gold went up massively within the next couple of years we may witness another steep downmarket, which may again increase the value of gold. Two Gold we'll still have. Value Paper currency inflates. Local currencies constantly fluctuate against foreign currencies. It's the way of the world policies are in place to hold currency steady, but they're not always foolproof once a currency begins to make a downward spiral it can be very difficult to stop severe inflation, which of course, decreases our purchasing power. Is often the more solid option for currency since there's a finite amount of this precious metal if you have gold, then you're likely to hold on to more of your overall worth than someone that is put all of their faith in the banks and paper currency. Three, there is an apparent upside to the value of gold. As I stated before gold was once at eighteen hundred dollars but now rests at value of less than thirteen hundred. If there's a slight blip in our economy that sends fear through the nation, then gold could easily spike back to eighteen hundred mark. It no longer seems far fetched because after all the value has already been there before. Cons of investing in gold. I used to be a huge advocate of gold and silver investing but my opinions on this investment technique have changed largely because of these cons. One Gold has a terrible historical return. If you went back two hundred years and put ten thousand dollars in gold ten, thousand in bonds and ten thousand stocks, which of these investments would come out on top. Well, if you're smart, you would probably not choose gold to be the top investment but the astonishing part about this is how poorly it actually performed versus the stocks and bonds. Here are the values of your investments after two hundred. Years. Old Twenty six thousand dollars bonds eight million dollars stocks five point six, billion dollars. Based on the historical returns gold is a lousy investment. To Gold is worthless if things get really bad. As a pro, we stated that gold is a great hedge against the dollar inflating, which causes us to lose our purchasing power. This is true. But what if the currency becomes absolutely worthless and we all have to resort to trading goods to survive what value is gold at that point? Well, let's see me certainly can't eat gold. So it is of little value for that purpose and you really can't make anything easily out of gold either. So there really isn't any value they're pretty much at this point your gold nuggets in bars are only as valuable as Iraq because he might be able to throw it at something and kill it. Three gold only earns you money when you sell it. The biggest con of investing in gold in my opinion. Oh and Warren Buffett's is that it produces you absolutely nothing when you own it. If you want to grow truly wealthy than you want to buy an asset that produces a passive income while you own it so that you can then by other assets that make you even more wealthy. Warren started doing this as a boy. When he bought a hunk of land, he knew the land would increase in value but the truly great part is investment was that he could earn an income each year from the local farmer that wanted to rent his land after a few years of Rental Income Warren Kundun reinvest his money into even more land and do this over and over again, this method allowed him to buy assets that gained in value, but also gave him income while he owned them.
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
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
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.
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
"warren 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.
"warren 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.
"warren 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..
"warren 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..
"warren buffett" Discussed on NewsRadio KFBK
"Newspapers of Warren Buffett is thrown in the towel he is selling his newspapers for a hundred forty million dollars he's been investing in paper since the nineteen sixties he actually delivered the Washington post as a kid but he sees the business environment they operate in right now he says small town papers and are in a much better position that big city papers but he's out in terms of investing in newspapers market overall today a let's call it flat we do get some earnings after the closing bell including Tesla tussle saying they're gonna sell a half million vehicles this coming year twenty twenty final numbers today we started off hot but then came back to the flat line in Hong right there Dow up eleven a twenty eight seven thirty four nasdaq of five ninety two seventy five the S. and P. Dow by three points gold today was up five fifteen seventy six an ounce ten year bond yield one point five nine percent all right six twenty three now in KVK governor Gavin Newsom sat down with the president to California's public policy institute today it talked about energy wildfires in climate change K. because Joe Michaels joins us live in studio with more on their in depth conversation Kelly governor nuisances California needs a safe and reliable utility of it's more flexible to meet the demands of the future transformative the different than the one we currently have particularly with P. Jeannie I have no interest in existing management existing board it has to be completely re imagined completely transformed company the governor saying P. Jeannie must come out of its bankruptcy with a plan for the future and the resources to invest in that future if they can't do it we have no choice but to do it for them because the economic human cost not just the environmental degradation is so profound and pronounced that we will be in peril compared to where we are today if we just sit back and let the markets take care of this for us the governor says the next phase of modernizing the power grid is a local emphasis on generating energy focusing not just on a rooftop solar but focusing on deep investments in storage segmenting and meshing our system beginning to integrate not just smart meters but a smart grid he says it's about hardening the grad putting the kind of investments that are long overdue and making sure that we are under grounding our wires or more importantly I think insulating our wires at a substantially lower cost the governor says when it comes to California's future green energy cannot be more expensive for the vulnerable green must create jobs green must address the issue of social economics not just reliability and safety governor new some points to potential incentives noting they've even been beneficial for him I'm the owner of a expensive car I got a very generous rebate from taxpayers of California's perfect group one example I have solar installation I backup storage was the beneficiary of a lot of support the governor says he'll be working with legislators on the recently proposed green new deal and what he's calling a climate resiliency package of billion dollars over the next four five years so we want to invest in new technologies and address the issue of some of the areas of vulnerability in new investments in the private sector for technologies I'm proving themselves so we could be a catalyst in quite a catalyst fund for those investments so we can advance our low carbon goals governor Newsome says they include a forty percent reduction in greenhouse gases from nineteen ninety levels by twenty thirty five million electric vehicles by twenty thirty and a hundred percent renewables by twenty forty five Getty all right Joe Michaels there thank you coming up on our case okay afternoon news will have the top stories at the bottom of the hour and then coming up around six forty seven or so why had a conversation with congressman a physician on the Vera about the corona virus will have that as well plus your next chance to win a thousand dollars coming up which had another local winner congradulations Jack Tiffany of grass valley we love you to win the.
"warren buffett" Discussed on Invested: The Rule #1 Podcast
"How to invest like the best investors in the world most importantly warren buffet and charlie munger and what that means is that this podcast is dedicated to the idea to the really revolutionary idea to the completely unaccepted idea by <hes> the mainstream by academia by ivy league that it is possible for an ordinary person of ordinary intelligence to invest invest and have low risk and high returns. Gosh what we're doing. People are out there right now going well. That's not one of the things i get to choose. When i talked to my financial adviser they give me choices between low risk low returns and high risk high return potentially and even though modern portfolio theory which is designed to which designing all of these tests says that you can't beat the market no matter what you do so we sort of disagree with that and buffet is living proof in monger is and so are hundreds and hundreds of other people who are telling us that they're doing well by waiting patiently and finding a few industries that they really understand that they like and you now burritos or something and they biden stuff in those industries and they're increasing their sort of joy of life. Yeah i think understanding being the key part of that and with increasing the joy of life being the key part of that is funny. I was thinking back today to our very first episode which i haven't listened to in a really long time so i actually don't know exactly what we talked about but i remember sitting there together and you said something about warren buffett and i just sort of thought like i sort of know who that is but i don't really know who that is like. I knew that he was somebody who was wealthy and and i figured had done pretty well and investing osteen and that was everything i knew and so it's been a rather crazy education on who buffet is and i had i had never even heard of charlie munger that was a completely unknown person to me <hes> but buffet has as kind of an investing guru has is lead this process in a in ab- -centia but in a very real way and it was his birthday on on friday his birthday is august thirtieth and he was eighty nine years old on friday so we wanna dedicate this episode to him and just give him thanks for everything that he's taught as you just said dad to <hes> to teach that it is possible for i mean he's not an ordinary person. He's insanely intelligent product prodigy in investing but to show that it can be done simply even even if it's not easy. It's it's a pretty it's a pretty extraordinary life that he's lived. I mean no question becoming. The wealthiest person in the world is from from starting with nothing starting with one hundred dollars. That's that's just crazy all by itself that anybody could could do that. I mean we think of wealthy people as having been borne to it and it turns out actually weirdly that wealth doesn't stick around. It moves like it flows like water. What does that mean it means. It doesn't stay in your family very well. The history of wealth is that generational wealth is rare. <hes> turns out that in a capitalistic system if if you don't know how to handle money if you don't know how to invest money the fact that your forefathers made a lot of money certainly gave you enormous advantages over the rest of us but those advantages often almost normally normally don't accrue to the next generation they have the advantages of money and education and everything at their feet and yet the result is often that the next generation starts to lose the money that was built by the first generation and that sort of the the the old <hes> saying is that the first generation makes it the second generation loses it and the third generation makes it back is probably not that even not even even that is not that accurate that once it gets lost. It doesn't get made back. It's really amazing how well flows in in the united states and in other in countries where aristocracy is not given a permanent seat at the table and it's it's you know obviously there are wealthy families in america and they have advantages but you look over one hundred years ago and you see where people were that had the money and those families aren't the ones that have the money today others a couple of exceptions but mostly they don't okay same same thing with companies companies that started one hundred years ago. There's very very few that are in existence today when you think about the advantages and existing company has in its position in the marketplace with the cash flow that has in terms of hundreds of millions or billions of dollars and yet they get knocked out by some smaller company is really amazing. Capitalism is so amazing and in a way the the you opponents of capitalism. It's a brutal system that <hes> that did not benefit buffet. Buffet family didn't have a lot of money so he wasn't. He wasn't getting generational wealth. What what he had was. It was a high i._q. That helps if you're starting from zero. He had a father who was in the business as a stockbroker <hes> <hes> but not a notably great investor and certainly not somebody that made anything other than a middle class income <hes> his father did well obviously he was he was successful stockbroker stockbroker and he was a successful representative to the house of representatives for a couple of terms <hes> and and so you know clearly warren head advantages that let's say i didn't have you know growing up my family. Your your grandparents didn't have that kind of beginning place for me to start yeah. I was a kid who had a lot of advantages but but not you know he wasn't rockefeller like he didn't come from bazillions. No he didn't come from millions. He came actually from a home. That was a mess so yeah some advantages and then some serious disadvantages. He's had real inner in in his family. His family had serious problems and there's old stories about like there's a biography of warren buffett called <hes> the snowball where it talks about how tough his childhood actually was you know and the impact of that on on all of us is is enormous obviously so you know we we look at somebody's life from outside and we think they had all these advantages. Sometimes they didn't really in in this case. I think buffet had the advantage of being very very bright and having an aptitude for investing early on definitely he he he laughs that if you know if he were born a million years ago he would've been eaten by the tiger that came along had no athletic ability whatsoever ever but he was smart. He's really really smart to the point of being <hes> like off the charts kind of like not not having a lot of social skills but having a lot of not having a lot of emotional intelligence but having a lot of what's the other kind of intelligence just like the other kind i._q. Hi q i._q. Logical intelligent logical and tell them exactly so yeah and he fully admits that and it's very formative in his early years you're exactly right and yet the extraordinary thing about him. I think is that he's created this world old in which he is the great communicator to millions about investing simply and and and in companies that you understand who would have ever thought that that kid the guy who has trouble talking two people at a party would become this guy who draws millions to to hear him speak on the internet and and thousands in person person i mean it's it's predict that it's really amazing what he's created and it's not because of his investing. I think like there are other other great investors. He's maybe the greatest in the world but that's not why people come it's because he's so good at communicating about it and he can tell simple stories. He's that explain what he's doing and why he's doing. It and i think even that isn't enough. That's not going to get forty thousand people to fly into nebraska. What gets gets people to fly into nebraska is that he also talks about his life and his values and how investing and his values relate to each other and he'll he'll answer any question but anybody asks he may not answer it directly but he'll take a question and just by doing that and by connecting in an annual meeting for a corporation the fact that you can ask questions outside of what are the prophets of the corporation and what are you doing. The future like investi questions <hes> made him real and it made it made investing something that was well rounded and personable personable instead of confusing and far off amongst the greats and i think that is his greatest contribution. I think there's one more reason why we all flocked to to omaha in may that is he's incredibly honest and self self-deprecating and humble and unlike i mean i don't know if he can name another fund manager at his level level but people are approaching his level to be that honest and forthcoming about his errors is completely a unique and buffets been doing it in letters to his his investors for for i guess sixty years about now where where he's he will emphasize error. This is what i did wrong. This is where you're you're. You're brilliant fund manager. Just you know was dumber summer than a brick and did this incredibly stupid thing which has resulted in us not having more money so all we you know we did well l. This year we did thirty two percent but boy we could have done so much thing. You know that kind of thing that helps a lot though when you practice it with that hey we did well this year but we could have done better. I know it was only until recently that that the s&p five that warren had a down year compared to the s&p five hundred red so he's always beaten the s. and p. five hundred or done as well as over his entire history which gives you a heck of a platform formed to admit mistakes. I grant you that. It's lot easier to say i struck out at the plate you know when you've got a three hundred and forty two two percent batting average compared to a terrible one so granted but still he's done that from from pretty much from square one with the the belief that people will stick with him for the long term and that's what's really different about warren tone in terms of investing is that he's he's attracted. People who are willing to ride through the bumps of fifty percent drops in the value of their portfolios in the belief that in the long run these returns will be phenomenal and they have been so this is. This is no one's done this. No one's ever done what he's done he. He gives an enormous amount of credit to other people particularly to ben graham but i'll i'll be. I'll be frank here. I mean graham was a great teacher. In graham introduced. I warranty to very radical notion back in the early fifties that the stock market is often not irrational oh place and when it's not being rational there are opportunities for an rational investor to take advantage of that but you have to know what to look for and graham did a fantastic job of building a book called security analysis which is still in hardback print today and used in classes all over the world as the first book ever written it really analyzes. A company analyzes stocks from the point of view being a business owner and saying okay. This is how you'd know if your business is really good. Eh gonna do well for the long. Term and buffet took that and just absolutely i mean graham was a phenomenal investor. Don't get me wrong. He'd he compounded money. At twenty two percent through the depression and through world war two wow through depression impression yeah i mean he was an phenomenal investor but his way of doing it was to massively diversify definitely not buffet right he would own one hundred to two hundred stocks and he would pick them based on his his calculations nations that he wrote about it and security analysis to be companies which were selling in the depression for less <music> than their net cash on their books in other words you could buy selling their markets and their stock doc price was selling for less than what they were worth on their books. Yeah the net cash takeaway. Take the cash of not even even the value of the assets just cash and subtract everything you know and what you have left on. Many of these companies was worth earth more than they were selling for the stock market you could buy them and if you could buy all of them you could liquidate them and walk away with the profit tomorrow yeah a little bit like shooting fish in a barrel isn't it well it is to a degree unless you happen to be in the depression and understand that management meant wasn't going to liquidate the company because they wanted to keep people employed at best and at worst because they wanted to keep getting a salary themselves regardless of what was is better for the owners and so you weren't going to get that net cash and as a result graham would buy one hundred to two hundred of them because he didn't know which ones we're going to ultimately emily be just bad businesses that went under <hes> and buffet called this cigar investing he basically laughed and said that graham was picking up the cigar butts off the ground. They were virtually free and some of them had quite a lot of puffs left in them. Yeah and on that basis he did extremely well in a very very very tough stock market and the other part of it is that he had money to buy stocks with in the depression well he did and that was became unusual so he had a leg just from that situation and then again back to.
"warren 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.
"warren buffett" Discussed on 710 WOR
"Three if you end up being college twentyone sorry about that but hit us up at ot a wall street dot com and see if you can score some passes there on this kind of income topic larry what are some of the tools were some of the resources people really need to tap into or i should say they could really benefit from tapping into as far as being able to generate that income inside of the market well it's all about skill building ryan i know a lot of our students come in they are just like everybody else some had some experience trading others not what they do is they learn the basics and the foundations and they practice away you said a beautifully i could go to law school tomorrow you don't want me litigating your next case it's just not a smart and a lot of students come in here and they think they've got a kill it in one week and the reality is if you look at warren buffett and people who've made lots of money it's been over time they learned that skill they keep building it over time and they're doing it consistently and that's the key to understand how to generate more money without having to get a second job because it's not only about trading but it's learning about proper money management because i know a lot of people out there they think their problems will end by just adding a couple of extra zeros at the end of their income but if they don't have to manage the money properly it's just gonna become extra zeros at the end of their expenses and it ends up being that decision making process that we go through and that guides a lot of our investing strategies well we talk a lot about the psychology behind investing behind trading behind doing it the right way really out at our classes because like you say what happens is we just we just elevate our expenses right the average individual if we get a raise just oh well i got raise it should go get a new car right that's not life changing except for now that we're making the right decisions not only when we buy and sell but also then managing that money that we have and i love the warren buffett example you know he's worth billions and billions and billions and billions of.
"warren buffett" Discussed on 710 WOR
"If you end up being college twentyone sorry about that hit us up at ota wall street dot com and see if you can score some passes there on this kind of income topic larry what are some of the tools were to some of the resources people really need to tap into or i should say they could really benefit from tapping into as far as being able to generate that income inside of the market well it's all about skill building ryan i know a lot of our students come in they are just like everybody else some had some experience trading others not what they do is they learn the basics and the foundations and they practice away you said a beautifully i could go to law school tomorrow you don't want me litigating your next case it's just not a smart and a lot of students come in here and they think they've got to kill it in one week and the reality is if you look at warren buffett and people who've made lots of money it's been over time they learned that skill they keep building it over time and they're doing it consistently and that's the key to understand how to generate more money without having to get a second job because it's not only about trading but it's learning about proper money management because i know a lot of people out there they think their problems will end by just adding a couple of extra zeros at the end of their income but they don't have to manage the money properly it's just gonna become extra zeros at the end of their expenses and it ends up being that decision making process that we go through and that guides a lot of our investing strategy as well we talk a lot about the psychology behind investing behind trading behind doing it the right way really out at our classes because like you say what happens is we just we just elevate our expenses right the average individual if we get a raise just oh well i got a raise it should go get a new car right that's not life changing except for now sure that we're making the right decisions not only when we buy and sell but also then managing that money that we have and i love the warren buffett example you know he's worth billions and billions and billions and billions of.
"warren buffett" Discussed on WTMJ 620
"It gets pretty emotional for people when they are left to their own devices but from my perspective i mean bringing on and you know what i i cannot tell you how excited i am i look forward to the start of q on earning season you mentioned people left to their own device probably not where you thought i was going with now it wasn't so expand on that a little bit what do you mean so now we got first quarter two thousand eighteen earning season i think that we might get some good news for change and what could happen is this could remind investors that the trend in earnings is positive earnings drive the market we've mentioned earning estimates a couple of times what you're talking about come from wall street analysts who are essentially trying to predict how much a company is going to earn in the future and these estimates there relied on heavily by investors to determine the price of a stock so the estimates there a huge deal in the passage of the tax cuts and jobs act that lowered corporate tax rates that caused the analysts to raise their earnings estimates and that in turn caused stock prices to rise in that led to the meltup we saw in january in fact we've got a clip from legendary investor warren buffett explaining why now additionally you have the tax act which is.
"warren 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.
"warren 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.
"warren buffett" Discussed on We Study Billionaires - The Investors Podcast
"You're listening to t i pay so today's interview as a fun one because we're talking with our friend ted sides ted is a graduate of yale and harvard university and he comes with multiple decades of experience and finance for people not familiar with ted most might recognize him as the gentleman the took the opposite side of warren buffett's bet with the hedgefund industry in today's episode we talk to ted about his friendly wager with warne and how it came about what the results were and what he thinks about the chances of beating the sp 500 moving forward something else this interesting about ted is that he has extensive experience working for one of the most famous investors david swenson swinton has been the chief investment officer for yells endowment for decades and has an average return over the past 20 years of 25 percent annually at the end of this interview we talk the ted about working for swenson what is greatest strengths were we also ask ted to compared david swenson to warren buffett ted has also become friends with through the past few years so without further delay let's opt to it you are listening to the investors podcast well we study the financial markets and read the books that influenced selfmade billionaire has the most we keep you informed and prepared for the unexpected all right everyone welcome to the show and we are super pump to have ted side is here with us today and ted thanks so much for taking time out of your busy day the join us so us sticks got the very first question for you ted knees and a kick it off so it probably doesn't seem to be obvious to most investors that you would bet against warren buffett in the game on investing of course there's a lot more to it than that could you tell us the entire story of what led up to your 10year charitable wager with warren buffett where he was taking the sp 500 index fun and you were taking five funds of hedge funds sure our guest ten years ago a little longer humbly in the two thousand five annual meeting warren had written about the had rocks and the got rocks and it was really the concept of helpers in the investment industry taking a toll on.
"warren buffett" Discussed on Stansberry Investor Hour
"To my subscribers are can't sure lows even though i'm pretty enthusiastic about so one that is a little bit older that'll be getting in and way is uh is crap times k k a seat jet large package foods and that that you're saying that there is a retail component and your thesis can you explain that well first of all i'm going to say what's wrong with w works y it's dumb too short there from which they wrap the bat they said well you said you should start it but now you're saying it's dumb to wait a minute old on right well i i put the done reason is uh is that warren buffett uh owns a quarter of the stock so too there there are precious few times in in this lives fifty years when it's been a good idea to wage any kind of that against warren buffett and maybe this is one of those times once again but uh this is a company that carries a premium valuation i think because of buffets participation and and if you look at it this is the company with absolutely zero organic growth that have a four year uh decline in revenues in that's a cost their entire product line and and then there's no cure uh they haven't two other companies and their space have either just shop there and said okay well we'll be we'll we'll we'll be good revolvers we could be good or they tried to acquire growth through some other names um kraft has has made efforts to to tweak at the march but still is a a large package.
"warren buffett" Discussed on Stansberry Investor Hour
"And um you know all the great investors map out a big disciplined longterm strategy none of them made their billions by you know seeming uh three percent here and there on on on um you know shortterm trates so it does take a a dedicated approach and a disciplined approach to really generate the you know the warren buffett salary returns yeah and i've only i've only been able to do it a couple of times in my career luckily i was able to call at one time i don't know if you remember by her she's recommendation from a seven but i told i told her body will we're never going to sell the stock and if it goes down you should be grateful because you'll be able to buy more and we've had it's been it's been a great investment and and you know what so interesting as you only need five or six of those in your life and you have outstanding returns i'm sure you know the story about um about graham about how you know over 80 percent maybe nine senate has told returns an investor came for one stock aiko so it it you you just you just need a couple of great home runs a your career to really have exceptional performance now let's talk about this that had exceptional performance over a very long time i've seen it i know about it but you actually entered a contest approve it how did all that happen well my publisher no you or your publisher julia gough came to a few of us at work with her and said hey others this great charitable competition run out of new york uh would you like to enter and so several others entered even put up uh in the group retook housing dollars and then and then slept the portfolio that lasts for a 12month period and uh at the end of that 12month period the the thousand dollars that are that everyone contributes becomes the purse essentially air the winner takes seventy percent of that and gives it to.
"warren 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.