Speaker 1: Let's go across the financial world in just under an
Speaker 1: hour with Zach Abraham, Tim Cook on Tariff's Black Rock CEO.
Speaker 1: Larry Fink, now a co lead at the World Economic Forum,
Speaker 1: has a plan and a real estate company with private
Speaker 1: equity is now going to lower your cost for housing.
Speaker 1: You think there's a catch to that, of course there is.
Speaker 1: And then this one hundred thousand dollars payment to be
Speaker 1: an h one B visa an each application. We'll talk
Speaker 1: about this with the help of Zach Abraham, chief Investment
Speaker 1: Officer of Bulbart Capital Management, and through the great graces
Speaker 1: of God Almighty.
Speaker 2: But Todd Herman show is one hundred percent disapproved. But
Speaker 2: big pharma technocurrats in tyrans everywhere from the high mountains
Speaker 2: of Free America. Here's the Emerald City exile Todd Herman.
Speaker 1: Today is the day the Lord has made, and these
Speaker 1: are the times so which God has decided we shall
Speaker 1: live in. Joining me, Chief Investment Officer Bulvar Capital Management,
Speaker 1: Zach Abraham, Zach, welcome back to the program.
Speaker 3: Well, it's good to be back, and it's casual day.
Speaker 3: The golf hat I see that in the T shirt. Yeah, yeah,
Speaker 3: Well I'm traveling later today, and you know, I just
Speaker 3: play a little casual.
Speaker 1: Did you ever did you ever dress up for airplanes?
Speaker 1: Were ever have that generation where it used to.
Speaker 3: Oh yeah, we had to Oh really yeah when I
Speaker 3: was a kid. Oh yeah, my parents. No, no, we're not
Speaker 3: wearing that on an air.
Speaker 2: Uh.
Speaker 3: Yeah. It's still it's still kind of throws me off.
Speaker 3: I still. I just just in the last few years,
Speaker 3: I've gotten the place where I can get on an
Speaker 3: airplane with like jim shorts and a T shirt. Yeah,
Speaker 3: you know, but it took me a long time just
Speaker 3: because of that. You know, it used to be you
Speaker 3: got dressed up to go on the airplane.
Speaker 1: I can't do the shorts thing because there's that embarrassing
Speaker 1: moment where on on like if you're in first class
Speaker 1: at Alaska, where you sit up in your your the
Speaker 1: back of the like stick and they make that oh
Speaker 1: yeah it's sound when they're getting up. I don't like that.
Speaker 1: And I had a discussion with the guy one day.
Speaker 1: We're flying and and people a boarding and he looked
Speaker 1: at you and huh, I go, what he goes? I
Speaker 1: think we hit bottom? I go, what he goes? That's
Speaker 1: two men in pajamas there were yeah, adult men and
Speaker 1: and I'm talking about onesies and right, No, that's that's
Speaker 1: that's a level too far.
Speaker 3: No, no, no, yeah, yeah, I mean you can go nice clean,
Speaker 3: fitness type relax clothes that but that's his that is
Speaker 3: as relaxed as it gets, right like you. No, no,
Speaker 3: you can't be sporting pajamas.
Speaker 1: Okay, so now what about barefoot?
Speaker 3: No, absolutely not.
Speaker 1: He's never done. You've never liked, You've never seen some
Speaker 1: of that. I saw a guy take the shoes and
Speaker 1: socks off. I've seen the shoes come off, but the
Speaker 1: socks come off.
Speaker 3: He's he's the guy. That's that's an animal. Yeah, you
Speaker 3: can't do and here's and and and it's not just
Speaker 3: about you, right like who obviously, Yeah, I'm stuck next
Speaker 3: to you. I don't want to smell your barking dogs,
Speaker 3: like keep your socks on, brother, you know, right, I
Speaker 3: mean yeah, but I'm kind of weird. I'm I'm I'm
Speaker 3: like my wife would tell you, like, I'm a big
Speaker 3: manners guy, like I just you gotta you gotta take
Speaker 3: care of your own business. I don't I don't want to,
Speaker 3: you know you know what I mean? Nothing involving your
Speaker 3: own hygiene. I don't want to discuss it. I don't
Speaker 3: want to see it. You know, just keep on the
Speaker 3: night in your.
Speaker 1: Okay, I'll say one thing about this and then we
Speaker 1: can stop. I was sitting in the VIP lounge and
Speaker 1: a guy went to pick in his toenails.
Speaker 3: No, come on, yeah, I leave the lounge. I couldn't
Speaker 3: stay there.
Speaker 1: He actually got approached to the credit of Alaska Airlines.
Speaker 1: Someone actually did come by and they spoke with him
Speaker 1: softly and quietly, and uh, he was. He was kind
Speaker 1: of upset that he didn't get there, but he had
Speaker 1: some bad fungus. So when you got the bad fungus,
Speaker 1: now see. I once met a famous person, very very famous,
Speaker 1: an actor in the Simpsons, responsible for a whole bunch
Speaker 1: of their voices. And he was super cool. Let me
Speaker 1: come to his house. He had two houses connected to
Speaker 1: each other right on the Santa Monica Pio and I'm
Speaker 1: talking about directly across from the lifeguard station. You walk
Speaker 1: across the street, that's Santa Monica Beach. And he was yeah,
Speaker 1: and he was late getting there, and the one of
Speaker 1: his house keepers was kind of to give me fresh
Speaker 1: squeeze orange juice. I'm waiting for him, and he comes
Speaker 1: in in a robe, having swum, picks up his foot
Speaker 1: and begins to pick three inch thick toe fungus from
Speaker 1: his toenails. And now, mind you, we're sitting in twenty
Speaker 1: million dollars thirty million dollars of real estate twenty five
Speaker 1: years ago, and.
Speaker 3: My class man, dude, you could walk up the street.
Speaker 1: The toefogus stuff is six bucks. You're a billionaire. You
Speaker 1: have a sound recording studio in both of your houses,
Speaker 1: and there's a bridge that connects him and you. You
Speaker 1: take an elevator to work because you won't walk the steps.
Speaker 1: You can't afford toe fungus stuff. Yes, I'm sorry, I
Speaker 1: got off an attention.
Speaker 3: Let's start this all against me.
Speaker 1: Let's start this all again, joining me live now talk
Speaker 1: to financial stuff, Zach Abertine, Chief investment Officer, bull Or
Speaker 1: Capital managiner, Zach. Let's get into this thing with Tim
Speaker 1: Cook and tariffs in just a second. Now that I've
Speaker 1: done talk dirty stuff, let me just say this, Alan Soaps,
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Speaker 1: all we need? Well, because you're gonna want to wash
Speaker 1: your mind at least. This is soap that's made in America.
Speaker 1: It's all natural and man, you're supporting the very, very
Speaker 1: very best cause. Right now. Alan works there. He's fourteen,
Speaker 1: he's been through eighteen operations. He's effectively nonverbal because of autism.
Speaker 1: His art is his soap. And this has been a
Speaker 1: love affair, a family affair, his dad, him his brother Ian,
Speaker 1: his dad is going to the Lord's Truly, John is
Speaker 1: probably six eight months maybe a year to live. He's
Speaker 1: handing the company off to his wife so it can
Speaker 1: continue to hire people like Alan and continue to have
Speaker 1: the world's best So go to Allen Soaps dot com
Speaker 1: slash todd. He's promo code to get promo code Todd
Speaker 1: to get temper sent off all their products. I don't
Speaker 1: know that they guarantee no toe fungus, uh, but they should.
Speaker 1: And if you have the toe fungus, it'll be good
Speaker 1: smelling to focus. Alan soap dot Com slash Todd. So Zach,
Speaker 1: here's Tim Cook, CEO of Apple, and he's talking about
Speaker 1: President Trump's tariffs. It looks like he's got red pilled. Man.
Speaker 1: He's all mega tell me the.
Speaker 3: Reviews over and over again. There's always this caveat that
Speaker 3: they're expensive, and yet I see the training value to
Speaker 3: be far higher than I remember. Is trading better, And
Speaker 3: when you add in the incentives from the phone companies,
Speaker 3: I don't see any increase even from tariffs.
Speaker 1: Trading is great.
Speaker 4: There's no increase for tariffs in the in the prices
Speaker 4: to be totally clear. And you can get a phone
Speaker 4: for free today with a plan from from your favorite carre.
Speaker 1: Now, wait, Zach, did you hear that free phones? They
Speaker 1: don't cost a sinking thing, and the tariffs aren't affecting
Speaker 1: the prices. And there's Jimmy Creme. Sorry he lost me
Speaker 1: when he said the phones are free. Now I don't
Speaker 1: believe him on tariffs.
Speaker 3: Yeah, well, I mean right, they just build it in
Speaker 3: the price of your plan, right, I mean, it's not
Speaker 3: hard to see. And I'm just laughing at how I
Speaker 3: swear to God, Tim Cook must try to play Jim
Speaker 3: Kramer to deploy his stock. I no, no, I and
Speaker 3: I could be horribly wrong. And this is an investment
Speaker 3: advice to anybody out there. I just think Apple is
Speaker 3: one of the most ridiculously overpriced stocks out there, like
Speaker 3: and you can find stocks that are a lot more expensive.
Speaker 3: That look a lot worse. But I just don't think
Speaker 3: people have realized the scale of all this.
Speaker 2: Right.
Speaker 3: So you know Apple does about four hundred billion in
Speaker 3: revenue a year yep, all right, and and about eighty
Speaker 3: five to ninety billion of that's profit, all right, So
Speaker 3: they're approaching a four trillion dollar market cap, all right.
Speaker 3: So for that stock to go up ten percent, that's
Speaker 3: an increase of the company's value of one hundred percent
Speaker 3: of their annual revenue. Right. So, and this is a
Speaker 3: company that's growing at six percent, right.
Speaker 1: So that that look possibly the math isn't math.
Speaker 3: Right, And remember they're also losing market share on their
Speaker 3: bell weather product, the iPhone, right, So you you're looking
Speaker 3: at it and going, but it's free. If you're investing
Speaker 3: in this stock, it forty times earnings and it's growing
Speaker 3: at six percent a year, one of a couple things
Speaker 3: must be true. You must think that there's a massive
Speaker 3: earnings inflection that's coming from a company who's major product
Speaker 3: that makes up probably eighty percent of their revenue. Maybe
Speaker 3: more right, that that product is losing market share and
Speaker 3: you're projecting a giant growth, and what would that growth
Speaker 3: have to be? Remember for them to double their revenue. Right,
Speaker 3: that would equal, you know, doubling every The numbers have
Speaker 3: gotten so large that you know, if you think you're
Speaker 3: buying a stock, and I have to for me to
Speaker 3: buy a stock, I have to believe that that stock
Speaker 3: has the ability to gain more than eleven percent a year,
Speaker 3: basically the long term average of the stock market. Right
Speaker 3: for me to purchase an individual stock, that's interesting.
Speaker 1: You have to the individual stock beats the market.
Speaker 3: Right. And when I'm looking at Apple at this valuation,
Speaker 3: now i could be wrong. I've been wrong before, I'll
Speaker 3: be wrong again. But when I'm looking at Apple at
Speaker 3: this price, I'm scratching my head, going, I don't know
Speaker 3: how anybody thinks this thing is going to grow again? Right?
Speaker 3: A ten percent move in the stock is the equivalent
Speaker 3: of one hundred percent of their annual revenue. Right, So
Speaker 3: you're just like, so, are you buying the stock because
Speaker 3: you think it's going to double in the next six years?
Speaker 3: What would Apple have to release just to double their
Speaker 3: revenue in the next six years? Not let alone the
Speaker 3: stock price, but double the revenue. Right, And even if
Speaker 3: they doubled the revenue at this price, at the stock price,
Speaker 3: even after they doubled the revenue, assuming their margins didn't slip.
Speaker 3: You're talking about a company that's still trading it twenty
Speaker 3: times earnings, and it's currently growing at six percent. So
Speaker 3: you can't even extrapolate that out and say they're gonna
Speaker 3: double their revenue in six years, because at this rate,
Speaker 3: they won't double their revenue for ten. This they can
Speaker 3: continue growing, but they're losing market share.
Speaker 1: Okay, So forgive me because I still I still want
Speaker 1: to try to scrape some sense out of this, and
Speaker 1: I'm sorry to think, oh, we should be short in
Speaker 1: the heck out of Apple. We should just short short,
Speaker 1: short Apple. But no, because no one's gonna let Apple fall.
Speaker 1: There you talk about banks too big to fail. Do
Speaker 1: we think the government would let Apple fall?
Speaker 3: No, And this is why we did short it earlier
Speaker 3: this year. Last year, we shorted it from about two sixty,
Speaker 3: and then we covered that short at one ninety, even
Speaker 3: though we believed it was overpriced at one ninety. Why
Speaker 3: did we do it because for a couple other reasons,
Speaker 3: but primarily what you just said, meaning meaning we didn't
Speaker 3: believe that the market had suddenly started getting more efficient
Speaker 3: and more rational, and we were sitting there going, you know,
Speaker 3: until we're convinced that this bubble mania insanity is over,
Speaker 3: We're going to take that win. Should Apple continue to
Speaker 3: go down? Yeah, it's true. But but then again, I
Speaker 3: can't sit there and tell you there's so much of
Speaker 3: this like you know, you saw the other day China.
Speaker 3: China announced the other day that they're no longer going
Speaker 3: to accept and they don't need in Vidia's chip. Okay,
Speaker 3: now that's big. Yeah, Now, in Vidia announced a deal
Speaker 3: with open Ai the day after China made that announcement.
Speaker 3: In the combination of those two days, I think the
Speaker 3: stock was up three and a half percent, and it
Speaker 3: doesn't sound like a big deal. But again, we're talking
Speaker 3: about a four trillion dollar company. Okay, so what is
Speaker 3: three and a half percent of four trillion dollars? About
Speaker 3: one hundred and twenty billion dollars so so, and remember
Speaker 3: in Vidia did about one hundred billion in profit. So basically,
Speaker 3: their stock went up more than one or more than
Speaker 3: two x their profit over the course of a two
Speaker 3: day span in which China, who currently YEW conservative estimates,
Speaker 3: We believe that China is currently it's hard to track
Speaker 3: because a lot of their chips flow through Singapore, right,
Speaker 3: but we think that they probably make up about thirty
Speaker 3: percent in video's demand. They announced that they're going to
Speaker 3: invest one hundred billion, So they announced that, So China
Speaker 3: announces they're not going to take any more in video chips.
Speaker 3: The next day, in Video announces one hundred billion dollar
Speaker 3: investment in open Ai. Now to explain that open Ai
Speaker 3: in video deal, the best explanation I saw was like
Speaker 3: a power strip, you know where you can plug all
Speaker 3: the power cords in. Yeah, right, But instead of the
Speaker 3: power strip being plugged into the wall, it was plugged
Speaker 3: into itself. Yes, okay, And and here's why they're investing
Speaker 3: one hundred billion in open Ai. And open Ai is
Speaker 3: going to use those funds to buy one hundred billion
Speaker 3: dollars worth of chips from.
Speaker 1: Vision Revenue Trading.
Speaker 3: Yeah, it's like now, isn't it interesting?
Speaker 2: Though?
Speaker 3: And now again I'm not telling anybody to sell in
Speaker 3: video to shortened video to buy. This is not a recommendation.
Speaker 3: I'm simply pointing things out here. What I think is
Speaker 3: fascinating is that that open Ai deal, which is a joke,
Speaker 3: got announced the day after In it was announced that
Speaker 3: it China wasn't going to buy any more of their chips.
Speaker 3: You know what? All this screams to me. This screams
Speaker 3: to me that the internal demand for their chips is
Speaker 3: falling faster than they thought it was, and that they're
Speaker 3: not going to be able to meet revenue guides. And
Speaker 3: the reason why I said that is they remember doing
Speaker 3: that deal with open an Ai. That's a margin compression deal,
Speaker 3: meaning the very nature of that, right, they're having the fund.
Speaker 3: If you're in Vidia and you have endless demand for
Speaker 3: all these chips, why are you funding somebody one hundred
Speaker 3: billions so they can buyers? Okay, Now, if you think
Speaker 3: thirty percent of your sales are about to fall off
Speaker 3: because China no longer wants your chips, then that makes
Speaker 3: a lot of sense.
Speaker 1: Right, Right, You're rich in monies that are on this
Speaker 1: insanely overvalued stock. They know it's overvalued. They know that
Speaker 1: they have been the recipients of good buzz and good
Speaker 1: good stock pumping from whoever. And maybe it's all just
Speaker 1: organic belief and that you've said they're a great company
Speaker 1: and they've got great product, but they have to know
Speaker 1: that they're doing here is trying to hide in their
Speaker 1: books a coming revenue loss by trading revenue. And this
Speaker 1: happened back in the dot com era. People do this
Speaker 1: to you all the time.
Speaker 5: You'd sign a deal, you know what, it're reminded me
Speaker 5: of it reminding you so many of those Time Warner
Speaker 5: deals right right with the with the cable right, Oh,
Speaker 5: there's never gonna the demand is would be endless for
Speaker 5: this fiber, and here's what it's worth, and we're doing
Speaker 5: this deal, and all those revenue swapping deals back then.
Speaker 3: Well when look, it's not saying that in video is
Speaker 3: not going bro not saying that. I don't think that.
Speaker 3: I don't think it's even close upon. It's nothing like that.
Speaker 3: What it is saying, though, is the reason that a
Speaker 3: four trillion dollar company is trading at nearly sixty times earnings,
Speaker 3: which is insane, right, there's nothing to comp it to
Speaker 3: in history. Now, they've done incredible things, So I'm not
Speaker 3: saying that they don't deserve a lofty valuation. They certainly do.
Speaker 3: But the reason it's trading at that multiple is because
Speaker 3: people believe this never ending demand story and the revenue story, right,
Speaker 3: and if that revenue story caves even a little bit,
Speaker 3: which I don't know how it does. Because here's the
Speaker 3: flip side. The reason China doesn't need in video chips
Speaker 3: is because it's got a replacement right like period, so
Speaker 3: that that replacement China will begin selling to other people.
Speaker 3: I'm just looking at this whole thing and going I
Speaker 3: could be wrong, but what this looks like to me
Speaker 3: is a company that is it's not going to go
Speaker 3: through a hard time, but it's revenues are going to
Speaker 3: miss because China isn't buying. And when you announce a
Speaker 3: revenue miss trading an evaluation like that, your stock's going
Speaker 3: to get smoked. So you know when I'm talking thirty
Speaker 3: thirty easy if go ahead, well, I mean if if
Speaker 3: you wiped off even twenty percent of expected revenue over
Speaker 3: the next four years off their books, yeah, the stock
Speaker 3: had drop forty percent at least.
Speaker 1: And again you're being very careful to say this is
Speaker 1: not investment advice. You're not telling you know what to do.
Speaker 1: But again, looking at this, then could it be reasonable
Speaker 1: that someone might want to take a short position against Nvidia. No, okay,
Speaker 1: it could not be reasonable.
Speaker 3: And I will not and I will not disclose whether
Speaker 3: we have.
Speaker 1: Sir, I will not dignify that question with a response,
Speaker 1: I'm so yeah.
Speaker 3: I listen and listen to. The One thing I want
Speaker 3: to say, though, is like, even if I was to
Speaker 3: tell you we were short the company, that doesn't mean
Speaker 3: you should. We've got traders watching it twenty four hours
Speaker 3: a day. We've got tight stops. When we short something,
Speaker 3: we don't let it beat us bad. Right, if it
Speaker 3: doesn't go our way in the first two or three percent,
Speaker 3: we're out.
Speaker 1: Yeah. Plus I like the bugs in their office and
Speaker 1: all the listening differences.
Speaker 3: No, I'm worried. Hey, look, if there's bugging going on,
Speaker 3: it's my offer. I'm certainly not bugging anybody else's or
Speaker 3: have the clout to.
Speaker 1: Oh, I got to tell you this story. I was.
Speaker 1: You know, this is kind of kind of freak you out,
Speaker 1: and so I should just tell you gently. I was
Speaker 1: in a gym. Weird. Yeah, there's a guy who came
Speaker 1: into the gym and this is you've seen these stories.
Speaker 1: I've been in this story. I weighed almost like four
Speaker 1: pounds three eighty going back to the gym, there is
Speaker 1: that Man, I don't know what people are going to
Speaker 1: think of me. These sweats are awfully big, and I
Speaker 1: want to wear this thick T shirts and sweatshirt. I
Speaker 1: don't want to be seen. And there's a guy that's
Speaker 1: coming to the gym and he has his behavior and
Speaker 1: I finally got to talking with him, and he man,
Speaker 1: he went through the roughest of russ fresh, lost his wife,
Speaker 1: lost his daughter, lost his brother. Three year stretch and
Speaker 1: I'm talking one after each and he said, man, I
Speaker 1: just let myself go. But here's what he's discovering. He's
Speaker 1: discovering joint pain beyond belief. He's discovering that he gets
Speaker 1: sick constantly, and he's discovering that he just cannot seem
Speaker 1: to have any energy level in the gym. So I've
Speaker 1: talked him about a bunch of things because he asked,
Speaker 1: I didn't you go out and push this? But it
Speaker 1: turns out that one of the things people have done
Speaker 1: to themselves is we've given ourselves what I would refer
Speaker 1: to as sugar sickness now diabetes right type two diabetes.
Speaker 1: It manifests that way, but the amount of information floating
Speaker 1: around our blos boodstream can be responsible for things like
Speaker 1: carpal tunnel arthritis type feelings, sometimes arthritis itself. They can
Speaker 1: be responsible for all the joint pain and man, it
Speaker 1: can tank your metabolism. When I learned after our free
Speaker 1: live webinar from Renewed Healthcare that they have actually reset
Speaker 1: people's immune systems. You're talking about destroying inflammation sometimes system wide.
Speaker 1: What that can do for your intestines and taking the
Speaker 1: weight off, what that can do for things like myocarditis
Speaker 1: and peracrdiitis which appear to be kind of inflammation. Like
Speaker 1: I mean, it's fluid, et cetera. A lot of this
Speaker 1: from long COVID long shot stuff. If you're in this bag,
Speaker 1: you're going to hear from doctors here, well this and
Speaker 1: that a suppressant and a blood thinner. Then because we
Speaker 1: give you this blood thinner, we're going to need to
Speaker 1: have you more iron and then you're gonna be poly
Speaker 1: drugged and then quadruple drugs and then six template drug
Speaker 1: Or you can go to a website. It's not dot com,
Speaker 1: it's dot healthcare. It's renewed r E n you E
Speaker 1: dot healthcare. You can type that into your browser now
Speaker 1: renew dot Healthcare. You can fill out a form let
Speaker 1: them know you're part of the Todd Herman Shaw family.
Speaker 1: They'll get in touch with you. We have doctors reports.
Speaker 1: It's just looking at one. A dear friend of mine
Speaker 1: sent me and he's gonna send me a full write
Speaker 1: up on this. I firmly believe he can get help there.
Speaker 1: Don't give in to the pills, the pauly drugging, the
Speaker 1: quadruple dugging, the six trap put drugging. Don't do it
Speaker 1: before you find out from renew And if they rule
Speaker 1: it out, man, that sucks. But if they rule it in,
Speaker 1: this treatment is extraordinary. It's renew r e n U
Speaker 1: e dot Healthcare. That's our e n U e dot healthcare.
Speaker 1: I've been there three times and going back for or
Speaker 1: forth renew r E n U e dot healthcare. Different conditions,
Speaker 1: by the way, I mean, everything works, it's just a
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Speaker 3: Yeah, I want to I want to go do the
Speaker 3: inflammation thing. Man, it's funny. How uh And and you
Speaker 3: you're sponsored by them, I'm not yeah, you know, I'm
Speaker 3: just giving you the straight the straights focus on not well, No,
Speaker 3: I mean I'm just saying, look, you're like one of
Speaker 3: those evil capitalists.
Speaker 2: Man.
Speaker 3: You have you have, you have mal intent. You're not
Speaker 3: trying to make money. To make money, so no, but uh,
Speaker 3: it's been weird man. My Uh, it's happening slowly, but
Speaker 3: my like things are changing, Like my knee has not
Speaker 3: hurt in so long, and this time you.
Speaker 1: Went there with me less than six months ago.
Speaker 3: Yeah, I'm getting in. I'm getting into different positions and
Speaker 3: postures that I that that feel foreign, but like it's
Speaker 3: like they're like my structure is changing. It's it's really crazy,
Speaker 3: like I can sit for longer periods of time and
Speaker 3: not hurt. And it's not it's not treating the pain,
Speaker 3: it's the stuff is getting better. You know what I mean.
Speaker 1: Oh, I know I talked to you about my back
Speaker 1: and my back stability, and my back doesn't click and
Speaker 1: it doesn't shift anymore. And that's because I know you
Speaker 1: know my vertebra and gosh, that whole complex is rebuilt
Speaker 1: because now the tissue has been rebuilt as much as
Speaker 1: gonna happen. And man, to not click and to not
Speaker 1: get out of bed, I don't know about you, but
Speaker 1: at my age, you get out of bed and sometimes
Speaker 1: this leg is fifteen feet longer. It doesn't happen to
Speaker 1: me anymore.
Speaker 3: Get out of the car, the gas. Sometimes I feel
Speaker 3: like I got shot, right, So it's hobbling around the
Speaker 3: car trying to get things to warm up.
Speaker 1: I totally get that. So waking up and then you
Speaker 1: wake up and put your ankles clicking.
Speaker 5: What the heck?
Speaker 1: Bankle didn't click yesterday? So that's that's not happened to
Speaker 1: me since I went down there. List all right, this
Speaker 1: is one of your favorite friends. And I know you guys.
Speaker 1: Is he there, Larry Fink? When check and see?
Speaker 3: Oh no, I'm meeting him down I'm definite trapping. We're
Speaker 3: hooking up to play some golf.
Speaker 1: So do see if people play golf for him? He
Speaker 1: just actually playing the golf, right, you just sick? Probably yes,
Speaker 1: my club right, See, I'm awfully tired, right, I'm very important.
Speaker 1: So he's now the co head of the World Economic Forum,
Speaker 1: and that is terrible news for the whole world. This
Speaker 1: is subtle, it's a little bit long, but let's watch this.
Speaker 1: Listen to it, because this is him talking about an
Speaker 1: un unprecedented level of access and influence over the highest
Speaker 1: levels of governments, even before they take power.
Speaker 6: I mean, there are a lot they talk to a
Speaker 6: lot of people, but I but I do believe because
Speaker 6: of the business model of who and what we are
Speaker 6: our reach. We're heavily involved in most countries retirement. Whether
Speaker 6: it's in Mexico, we're the largest third non Mexican non
Speaker 6: A Foray retirement manager. We're the largest retirement manager non
Speaker 6: Japanese in Japan. You know, we're the largest retirement manager
Speaker 6: in the UK including the domestics, and so having that position,
Speaker 6: it's all about long term issues, but it's it's things
Speaker 6: that you can't replicate because it's based on years of
Speaker 6: relationships and trust and you know whether it is and
Speaker 6: then I do go out of my way when there's
Speaker 6: somebody who's new in their role, a new prime minister,
Speaker 6: you know, I will spend time. Generally, when I try
Speaker 6: to do is spend time before before they win and
Speaker 6: meet the candidate. So whether it's in Mexico spending time
Speaker 6: with Claudia before she won, or spending time with kiro Starma,
Speaker 6: you know, it's just spending time with them and just saying,
Speaker 6: you know, you have access to whatever information you need and.
Speaker 1: Okay, Zach, what's the subtext to this? Because I don't
Speaker 1: I don't, I don't operate in that realm. What's the subtext?
Speaker 3: Conflict of interest? It's why. It's why too big to fail,
Speaker 3: a hass is too big to work, right, Like, meaning
Speaker 3: there's so there, there's kind of this weird dichotomy where
Speaker 3: part of you, when you look at the scope and
Speaker 3: the size of black Rock, it makes perfect sense that
Speaker 3: he's having these conversations with these people, right, But the
Speaker 3: reason he's having conversations with these people is not because like,
Speaker 3: do you think he's meeting with Claudia's Shinbaum to explain
Speaker 3: to her the etfsiterre and he the state employees' pension plan.
Speaker 1: I'm guessing not. No, I mean, come on, I guess
Speaker 1: I'm guessing he's meeting with her to say, here's how
Speaker 1: I can personally enrich you.
Speaker 3: Yeah, and this is how you can enrich me, and
Speaker 3: this is how we can all win. And if we
Speaker 3: have to do it with some dirty cartel money, we
Speaker 3: can help you with that. I look, I don't want
Speaker 3: to accuse people of anything because I don't know what
Speaker 3: they're doing. I'm just saying, you know, it's sort of
Speaker 3: like the movie you never see the movie The Devil's
Speaker 3: Advocate with Keanu Reeves.
Speaker 1: Yes, he's a lawyer for the Devil.
Speaker 3: Yeah, And I think that kind of gives a good insight,
Speaker 3: which is, you know, to play at those levels in
Speaker 3: that game. I don't think you can be a good
Speaker 3: human being, right like you just I don't think you can.
Speaker 3: I just I don't think that that's the way it works.
Speaker 3: And the reason why I say that is because if
Speaker 3: you're not willing to do that untoward thing to get
Speaker 3: access to power, your competition is right like it just
Speaker 3: and and and that's the game you're playing. You're not
Speaker 3: sitting in front of people talking about their retirement plan
Speaker 3: and how you're going to manage their portfolio. You're meeting
Speaker 3: with heads of state trying to figure out how you
Speaker 3: can enrich each other. That's what you're doing.
Speaker 1: And that's that's a realm that God blessed most people.
Speaker 1: And I mean it, you're blessed if you've never been
Speaker 1: in this realm, all the bribes, all the stuff.
Speaker 2: Like.
Speaker 1: I mean, I'm talking about when I had Microsoft money,
Speaker 1: being offered a night with two Playboy playmates just for
Speaker 1: having a deal, just offering him a deal with Microsoft,
Speaker 1: and I said, I'm married, I love my wife. Can't
Speaker 1: possibly do that. Oh we didn't mean that, No, you did.
Speaker 1: That's exactly what you meant in DC the million dollar
Speaker 1: bribe or this, like when that congressman's son wanted to
Speaker 1: charge US five million dollars to build a half million
Speaker 1: dollar website, and all I could have done, Like when
Speaker 1: the congressman had his chief of staff called me into
Speaker 1: the official office, the big, you know, huge high vaulted
Speaker 1: ceiling office. I could have said, you know, Congressman, I
Speaker 1: want to I want to work with your son. He's
Speaker 1: a really great guy. Five million is a lot. Could
Speaker 1: we do it for a million? That would be twice
Speaker 1: the market rate? And I would have come out of
Speaker 1: there and it would have been, Hey, if you ever
Speaker 1: need access to the Armed Services Committee, you know there's
Speaker 1: some things they can do. You're a good guy, Todd.
Speaker 1: I appreciate you, you know, kind of bringing a sense
Speaker 1: of reality to this. And and did you mention a
Speaker 1: consulting contract for my son?
Speaker 6: Oh?
Speaker 1: Yes, I did, forget that, right, Yep, there's that. There's
Speaker 1: a million dollar consulting contract. You're a good guy, Todd.
Speaker 1: And I guarantee Zach. Then it would have been a Congressman,
Speaker 1: I'm going to be leaving the committee, and Todd, how
Speaker 1: can I help you yep, who could have introduce you
Speaker 1: to And that's true. People are willing to do these things.
Speaker 1: And I would think, and I, like you, I don't
Speaker 1: want to bear false witness. I would think that there's
Speaker 1: no thing that can be done that Larry Fink hasn't done.
Speaker 3: I again, I look, anything's possible. And I don't know him, right,
Speaker 3: but knowing the way those circles work and knowing people
Speaker 3: that swim in those circles, it would it defies logic
Speaker 3: because to be in that like it's it's to be
Speaker 3: in that position, you have to think about what you
Speaker 3: had to do to be in that position, right to
Speaker 3: to climb to the top of that barrel. I mean,
Speaker 3: that's that's a nasty barrel, right, Like, So you had
Speaker 3: to be kind of the boss of bosses. You had
Speaker 3: to be like the crime you know what I'm saying.
Speaker 3: Like you had to be the ultimate villain in a
Speaker 3: lot of ways.
Speaker 2: I was.
Speaker 3: And it's it's just dirty, man, It's just it's really
Speaker 3: really dirty. And I just I don't think you can
Speaker 3: be in a position like that without being dirty.
Speaker 2: I don't.
Speaker 3: I don't think it's possible.
Speaker 1: As one person removed from this conversation told to me
Speaker 1: right after it happened by a guy that has proven
Speaker 1: himself in my life to be very, very truthful. There
Speaker 1: was a political actor in DC who is basically getting
Speaker 1: run out of town. He was no longer going to
Speaker 1: head this great, big committee, and so behind closed doors
Speaker 1: he talked to people who wanted to be a successor,
Speaker 1: and one on one and the conversations not like this,
Speaker 1: what are you offering me? And one lady said, look,
Speaker 1: I don't have a lot of money. I mean, I'll
Speaker 1: do a great job. I'll give you a credit. Not interested.
Speaker 1: Ya la la la la la la la la la la.
Speaker 1: I mean what do you want? You want my four
Speaker 1: to one K? How much is in it? Because that's
Speaker 1: a good start. Yeah, yeah, yeah, And there are people
Speaker 1: who would do this. I had a meeting with a
Speaker 1: guy who is one of the most wealthy guys in
Speaker 1: the world, connected to one of the big software companies
Speaker 1: at a super high level, connected to the beers at
Speaker 1: a super high level. He took me out to dinner
Speaker 1: at this amazing place, this amazing restaurant. They cooked this
Speaker 1: stuff at your table. How do you want your steak?
Speaker 1: Blah blah, And we talked about the R and C
Speaker 1: voter database, and he was talking to me about all
Speaker 1: the names, all the data, how far back does it go,
Speaker 1: societal change, societal shift, global shifting, how it could be
Speaker 1: applied to this. And at the end of the day,
Speaker 1: I said, are you interested in making a donation to
Speaker 1: the party? And he told people through channels. I didn't
Speaker 1: have a strategic bone in my body. I told people
Speaker 1: through channels, never let that guy near the data, because
Speaker 1: he does exactly what he could do this in order
Speaker 1: to take apart the committee and split the world. And
Speaker 1: he wants to own this and then sell it. He
Speaker 1: wants to steal in part and prove it and then
Speaker 1: run it back to us. But I didn't have a
Speaker 1: strategic pone in my body. What he meant was I
Speaker 1: didn't jump into bed with him right on the first date.
Speaker 1: So okay, I'm glad that we agree on that. Now
Speaker 1: this isn't the shifting of gears. This is going from
Speaker 1: he's in third gear, suggestive, we're gonna shift into fourth
Speaker 1: gear here with something going on in private equity and
Speaker 1: real estate. And I play this for you in a second, Zach,
Speaker 1: and this guy's this is so important to listen to
Speaker 1: I've been telling people, don't be the guy that trains
Speaker 1: for Let's say you train to run let's say a
Speaker 1: five k Okay, and you run that five k and
Speaker 1: you find out that you cannot complete the last twenty
Speaker 1: percent of it. You can't and that you tank. You
Speaker 1: don't just redline, you stop. How would that happen? Well,
Speaker 1: you wouldn't have run a ten k, you wouldn't have
Speaker 1: run a five k up a hill. You wouldn't have
Speaker 1: had sprint practice, you wouldn't have had pacing practice. And
Speaker 1: a five k is not a long race. Guys, I
Speaker 1: mean you could better apply this to a marathon or
Speaker 1: a half marathon. Don't be the guy that gets to
Speaker 1: the last mile of the half marathon and you cannot move.
Speaker 1: And here's what I mean. Do not get to the
Speaker 1: most crucial point of a business, which is where you've
Speaker 1: been handed as summons. And the summons is because there's
Speaker 1: a belligerate employee, a belligerent competitor. There was a slip
Speaker 1: and fall, God forbid, there was a terrible fire, there
Speaker 1: was something bad that happened. Don't wait for them to
Speaker 1: find out that you do not have the corporate veil
Speaker 1: like in that half marathon. Don't wait to the last
Speaker 1: mile to find out you can't do it, because it's
Speaker 1: not at that point where you want your lawyer to say, hey,
Speaker 1: I'm sorry, I can't help you. We can't build the
Speaker 1: corporate veil. Now, yes, this person can go after your
Speaker 1: four to one K, he can go after your wife's assets,
Speaker 1: he can go after anything you own. It's not just
Speaker 1: your business. Everything's in play. You better settle, even if
Speaker 1: it's junk. Here's how to avoid this. Go find out
Speaker 1: if you have the corporate veil. Here's a website. It
Speaker 1: is go bisible dot com. Go bisible dot com with
Speaker 1: a Z go bisible dot com number one. It's a free,
Speaker 1: no obligation consultation. The answer is free. Yes you have it,
Speaker 1: No you don't. Your decision at that point end is
Speaker 1: to put it off and go get a lawyer to
Speaker 1: look at it, or pay Bisible a comparatively very small
Speaker 1: amount of money. They will solve the problem in seven
Speaker 1: easy steps. They'll also do things that introduce you to
Speaker 1: lenders and investors who want to work with companies like yours.
Speaker 1: Only though, when you have the corporate veil, it's go
Speaker 1: bisible dot com So, Zach, this is a really state
Speaker 1: company and they and they love people, Zach. I. As
Speaker 1: I watch this, I get tears in my eyes because
Speaker 1: of their love for people. They want to lower housing
Speaker 1: costs for human beings. And Zach, this one, this one
Speaker 1: comes from the heart. It really is.
Speaker 7: I would you like to hear about how sinister the
Speaker 7: Austin housing market is. I just saw this list sting
Speaker 7: on realtor dot com. It's for a four bedroom house
Speaker 7: that's listed at two hundred and ninety three thousand dollars.
Speaker 7: I said, well, golly g for Austin, Texas. That's a
Speaker 7: pretty dang good price. Let's see what this house is
Speaker 7: all about. It says this property is listed as a leasehold.
Speaker 7: Don't know what that is through Jubilee's joint purchase program. Okay,
Speaker 7: haven't met Jubilee yet, but I'm willing to learn more.
Speaker 7: Making home ownership more accessible with a lower entry cost.
Speaker 7: Love to hear that you buy the home while Jubilee
Speaker 7: buys the land and rents it back to you heavily,
Speaker 7: reducing upfront costs and keeping monthly expenses comparable to a
Speaker 7: traditional purchase. You can also buy the land back anytime Alternatively,
Speaker 7: the property can be purchased outright for seven hundred and
Speaker 7: ninety nine thousand dollars. Estimated land rent for a home
Speaker 7: in South Austin is two nine hundred forty six dollars
Speaker 7: per month. This home is not just a residence, it's
Speaker 7: a sanctuary.
Speaker 1: So you have private equity firms getting into the business
Speaker 1: of selling people sticks and concrete and calling it a home.
Speaker 1: And this is this You know that guy made fun
Speaker 1: of me. I don't have a strategic phone in my body.
Speaker 1: Oh I think I see the strategy here, but you
Speaker 1: know more about it than I do. So what's your
Speaker 1: first read on this stuff?
Speaker 3: Well? This is this. Look, this is what you get
Speaker 3: when you when you hot wire economies and when you
Speaker 3: hot wire markets more importantly, meaning, this is the kind
Speaker 3: of stuff that happens when you don't. Let see, we
Speaker 3: all think that recessions are horrible. Yeah, okay, but nobody
Speaker 3: has ever stopped to have a conversation. What does the
Speaker 3: absence of recessions? What does the absence of economic cyclicality
Speaker 3: look like? Okay, this is what it looks like, guys, Right,
Speaker 3: and getting back to everything has a cost. That's why
Speaker 3: we should not celebrate when the government steps in and
Speaker 3: bails out the market, or bails out this or bails
Speaker 3: out that. Yeah, in the short run, it alleviates the pain.
Speaker 3: But in the long run, the residual pain you get
Speaker 3: down the road is always worse. We know that in life.
Speaker 3: Don't put off toke and and that's what we've been doing. Culturally.
Speaker 3: We've been front loading fun and deferring cost. Right, and
Speaker 3: the chickens are coming home to roost, and so you
Speaker 3: look at them and go, do you know what we need?
Speaker 3: We need a good old fashioned recession. Now, the tough
Speaker 3: part is is you throw it in there in this
Speaker 3: political climate. If you have a recession prior to the
Speaker 3: next election, you're probably going out office. Right, We're probably
Speaker 3: getting a whole new load linear and god knows what
Speaker 3: that will look like. So I'm not saying that Trump
Speaker 3: should just let the market and economy go to pot
Speaker 3: But what I am saying is what you need is
Speaker 3: you need prices to come down. Guess what happens in recessions, right, yep.
Speaker 3: And so we've got to think about this. We've been trained.
Speaker 8: Over and over and over and over and over to
Speaker 8: hear the recession, hear the recession. The only real fear
Speaker 8: you have of a recession is if you're somebody that
Speaker 8: has a substantial amount to lose, I e. A rich
Speaker 8: baby boomer. If you're a kid.
Speaker 3: Making eighteen bucks an hour at Chick fil A, I
Speaker 3: got to tell you, a recession's probably all good news
Speaker 3: for you. Right, Bills are going to go down, gas
Speaker 3: prices go down, rent prices go down. It's it's fine.
Speaker 3: Like you go. Ask me and my wife. We were
Speaker 3: in the financial industry throughout eight oh nine. They went
Speaker 3: through some small and comfortable places. But basically our lives
Speaker 3: didn't change. Why because our salaries were not difficult to replace.
Speaker 2: Right.
Speaker 3: We didn't own anything at that time. Right, And this
Speaker 3: is one of the big lies that we've been sold.
Speaker 3: Recessions make homes more affordable for first time home buyers,
Speaker 3: and first time home buyers typically have salaries that are
Speaker 3: more much more durable in a recession, meaning this, you
Speaker 3: go into a recession, you get a contraction of GDP
Speaker 3: two and a half three percent. Chick fil A ain't
Speaker 3: laying people off now, the banks might The guy making
Speaker 3: two fifty to three hundred grand a year for the
Speaker 3: insurance company might, right, the guy working for the marketing
Speaker 3: company might make a half million a year. The guy
Speaker 3: the programmer for Microsoft make a half millionaire. He might,
Speaker 3: but you're not. You see what I'm saying. So we've
Speaker 3: been told to all fear the thing that you only
Speaker 3: really need to fear if you're already rich. Ye, and
Speaker 3: you want to talk about a lack of affordability. And
Speaker 3: this is where I come in, And sometimes people, my
Speaker 3: own clients get frustrating, Zach, don't blame the baby boomers.
Speaker 3: I'm not blaming you, but I'm saying, generally speaking, the
Speaker 3: baby boomers as a generation have been willing to rack
Speaker 3: up one hundred and thirty percent debt to GDP so
Speaker 3: their entitlements never get snagged. They don't have to worry
Speaker 3: about recessions. They get the biggest stock market run of
Speaker 3: all time while they control seventy percent of the assets
Speaker 3: in the United States. Right, it all benefits them, So
Speaker 3: of course they don't want to see a recession. Of
Speaker 3: course they don't want to see this because if you
Speaker 3: own all of the stuff already, all you want to
Speaker 3: see is prices go up. Right, And it's it's it's again,
Speaker 3: it's it's it's childlike thinking. It's like, hey, let's just
Speaker 3: live on candy, candy, candy canes and and Coca Cola classic, right, Like,
Speaker 3: there's no downside. Well tonight, you know, we're gonna have
Speaker 3: a great time, but there's gonna be downside.
Speaker 1: It's it's look at this as forest fires or forest management.
Speaker 1: So we're not going to allow fires forest fires, right, Okay,
Speaker 1: so no matter what happens, we're not going to allow
Speaker 1: forest fires. But we're also not going to clean out
Speaker 1: the forest. So we're not going to clean out the
Speaker 1: debt would but it's going to be way too much,
Speaker 1: you know, available, way too much to burn. But we're
Speaker 1: not going to clear it out because it's all good
Speaker 1: because forest fires are bad. Do you know that? Biologically speaking,
Speaker 1: some species of plants and botanicals can only grow after fires,
Speaker 1: after the.
Speaker 3: Cycles multiple, Yeah, there's multiple. There's multiple pine trees that
Speaker 3: actually drop pine cones that do not open if there
Speaker 3: is not flame there, like literally, that's how they procreate.
Speaker 3: They've got to have fire to release their seed.
Speaker 1: Yes, there are species of flowers and plants that are
Speaker 1: important for the whole ecosystem that don't grow. There are
Speaker 1: runoffs that do not happen. There are parts of UH
Speaker 1: of ecosystems get starved with water and runoff. You have
Speaker 1: this this, all of it is eventually cataclysmic when we
Speaker 1: don't allow recessions. Just a phrase we use sometimes in training.
Speaker 1: If you don't choose rest, rest will choose you. Right, Okay,
Speaker 1: you get into an overtraining cycle. Guess what. You can
Speaker 1: train all you want, You'll get no gains. Rest is
Speaker 1: going to choose you. We could choose to let our
Speaker 1: foot off some of the conjuring of money and the
Speaker 1: sugar high and the shooting of meth into the economy
Speaker 1: and the nicotine mints in the economy that people are using.
Speaker 1: We could choose to do that, and in that case
Speaker 1: we could kind of have a recession that we expect.
Speaker 1: Or we can wait until there is that dry tender
Speaker 1: moment and then boom, that's when the bottom drops out.
Speaker 1: That's how you get these cataclysmic fires because you haven't
Speaker 1: allowed the little fires.
Speaker 2: Right.
Speaker 1: So, I mean, that's just my monkey way saying, what
Speaker 1: other big financial issue to talk about. I'm so curious
Speaker 1: what you think about this, because you and I have
Speaker 1: talked about H one B visas and what President Trump
Speaker 1: has done here. I kind of like this is my
Speaker 1: first take on it. We'll talk about this with Zach Abraham,
Speaker 1: Chief Investment Offs or Bulwark Capital Management. I do want
Speaker 1: to say that I got a note from a guy
Speaker 1: and I'm trying to figure out if this is real
Speaker 1: or parody. Todd. I stumbled upon your podcast, and you
Speaker 1: seem to be a guy who's really really committed to Trump.
Speaker 1: That causes me to doubt your veracity and honesty as
Speaker 1: a man. I listened anyway because you were talking about
Speaker 1: crossfits and you had a guy on to talk about CrossFit.
Speaker 1: He had an ad for a coffee company called bone Frog.
Speaker 1: I have just one simple question for you. You get
Speaker 1: some sort of kickback when people purchase the coffee in
Speaker 1: so I don't want anything to do with it, all right,
Speaker 1: that's is it a kickback? Tim is my dear friends.
Speaker 1: He's the CEO of bone Frog. He's a retired Navy seal.
Speaker 1: If the coffee sucked, I would have had to say,
Speaker 1: I can't talk about the coffee, I can't promote it.
Speaker 1: Do I get a kickback that's money under the table. No,
Speaker 1: I do not get a kickback. But to be frank,
Speaker 1: there's no way that bone Frog, given the size of company,
Speaker 1: could afford the slots that Renew pays for. You Like Renew,
Speaker 1: they have money. Look at what they sell, look at
Speaker 1: how they save lives. They can spend a lot of
Speaker 1: money bone Frog can't. So yes, I get a piece
Speaker 1: of the action when you buy coffee. The other reason
Speaker 1: I do this is because I believe in tim I
Speaker 1: believe in raising money for the families of fallen Navy seals.
Speaker 1: Every bag of coffee does that ten percent of proceeds
Speaker 1: go to the family of fallen Navy seals. So when
Speaker 1: we do things like this, it's because we believe in
Speaker 1: companies like this and they need a hand up. Now,
Speaker 1: to be honest with you, bone Fogs become a huge partner.
Speaker 1: I'm very pleased with this. You know, we're looking at
Speaker 1: this other relationship with a company that helps people with
Speaker 1: their prepaid legal Now I'm putting a lot of effort
Speaker 1: into that. Would I get paid. Yeah, they'd have to
Speaker 1: pay a dear amount of money to get on this program,
Speaker 1: because they've got the money and I know the margins
Speaker 1: and I know what they could earn from this. But
Speaker 1: in that case, I'm going to go make sure it's
Speaker 1: all locked and loaded. I did that with the coffee.
Speaker 1: I know that with the man. It's Bonefrog Coffee dot
Speaker 1: com slash Todd. Use promo code Todd to get ten
Speaker 1: percent off your first purchase, fifteen percent off subscription coffee
Speaker 1: or if you like, If you like, just send me
Speaker 1: the money if you don't want to get a kickback,
Speaker 1: Actually I don't want you to do that. Bonefrog Coffee
Speaker 1: dot com slash Todd promo code Todd. Zach abrahams with
Speaker 1: me chief Investment offs for Bulal Capital Measurement. I need
Speaker 1: to maybe talk to you about this prepaid legal company.
Speaker 1: They want to come on and end. Do you prepaid
Speaker 1: legal at bullwork? Do you like if if people sued you,
Speaker 1: do you have that? I used to have that at Microsoft.
Speaker 1: I loved that advantage. Oh go ahead and assume me
Speaker 1: I got prepaid legal.
Speaker 3: No, I've got like actively paid legal.
Speaker 1: You've got the you've got the lawyer down the hall?
Speaker 3: Do you ever chant? Not down the hall? But okay
Speaker 3: with my good with my good friends at the SEC.
Speaker 1: Yeah.
Speaker 3: I've had the privilege of working very close with an
Speaker 3: attorney for the last couple of years. Whi's been a
Speaker 3: lot of fun.
Speaker 1: My second startup. One of the things we talked about
Speaker 1: was having a VP of public affairs because we did
Speaker 1: big data. We did this stuff back there and I said,
Speaker 1: this is be an attorney, right, could they act as
Speaker 1: staff attorney or you know, attorney for us? I said, okay,
Speaker 1: I understand something. I'm going to bury that person in
Speaker 1: legal work. If that's person's if I ever walked by
Speaker 1: and they're not doing something, I'm gonna bury them and
Speaker 1: play in parking tickets.
Speaker 3: And yeah, gotta make a quick comment about that that
Speaker 3: last ad that you.
Speaker 1: Read, Uh I was in that email?
Speaker 3: Oh yeah, the email? Yeah yeah, uh My My comment
Speaker 3: about that would be that comment is so is such
Speaker 3: a great example I think of what is so one
Speaker 3: of the things that's so wrong in our society. Yeah,
Speaker 3: first of all, Hu, and look, that gentleman could be
Speaker 3: I don't mean to denigrate him personally or anything like that,
Speaker 3: but that gentleman could be substantially older than me. But
Speaker 3: my first question would be how old are or how
Speaker 3: old are you? And and do you have any wisdom
Speaker 3: of any kind? Meaning where do you work? Sir?
Speaker 7: Oh?
Speaker 3: That's you know, I work at FedEx. Are you getting
Speaker 3: kickbacks from him. Get so what you call a kickback,
Speaker 3: he actually calls a salary. Right, So that's how he
Speaker 3: makes money. People pay them to review their goods and
Speaker 3: if Todd likes them, then he will rep them and
Speaker 3: give them visibility. Okay, so a don't be an idiot,
Speaker 3: look at your own life and examine your own life
Speaker 3: before you And but b here's the other thing. When
Speaker 3: you want to make judgement about somebody, it's best to
Speaker 3: listen probably to more than one or two episodes because
Speaker 3: if he had what he'd learn about you and what
Speaker 3: I know about you from knowing you for a very
Speaker 3: long time. But what you'd learned from this podcast is
Speaker 3: when Trump is right, yes, I'm gonna support what Trump says.
Speaker 3: When Trump is wrong or you disagree with them, you
Speaker 3: also say that why wait, you're a Trump supporter, and
Speaker 3: that makes me question your veracity. So are you a
Speaker 3: Biden supporter? And that should make us not question your
Speaker 3: forver ask like, what is your point? You know what
Speaker 3: I mean?
Speaker 1: Right?
Speaker 3: Like? And and also are you one of those people
Speaker 3: that if Trump says the sky's blue, you're gonna laugh
Speaker 3: and say it's purple because he's an idiot, or are.
Speaker 1: You gobb Have you seen the pregnant women gobbling tailanol? No,
Speaker 1: there's there's pregnant women making videos where they're gobbling tailanol.
Speaker 8: I know.
Speaker 3: And my attitude is is like more than the Lord's work.
Speaker 1: Well, I'd rather not have it harm their babies.
Speaker 3: No.
Speaker 1: I A. There's this argument going on even in so
Speaker 1: called red state Idaho, where there's a move to give
Speaker 1: people a five thousand dollar tax credit to be able
Speaker 1: to go to private schools. And so some of our
Speaker 1: principles here holding public meetings public schools at risk from
Speaker 1: poor profit entities. And I'm going to go to one
Speaker 1: of these meetings and say, hey, thank you teacher, principal,
Speaker 1: administrator for being on the panel of the day. Please
Speaker 1: raise your hand. Those of you who are not paid
Speaker 1: for working in the school, the circ everybody raise your hand,
Speaker 1: because Principal Jones, I looked at your pay scale. This
Speaker 1: is Idaho. Average income here is about sixty two thousand
Speaker 1: a year. You're pulling down one sixty nine months of
Speaker 1: work per year. You're get to get a pension when
Speaker 1: you retire. Your pension is going to be about one
Speaker 1: fifty per year. And we're going to pay for your
Speaker 1: health care for the rest of your life. Tell me
Speaker 1: you're not.
Speaker 3: You're just looking out for the kids, right.
Speaker 1: This has nothing to do with money, do it for free?
Speaker 1: Your union put forty nine million dollars into Democrat donations
Speaker 1: in this cycle.
Speaker 3: Home On. They didn't invest it in a way to
Speaker 3: help offset the costs of private school for kids that
Speaker 3: want that as an option.
Speaker 1: No, because that's common. That's at Wait, No, that's nazisn't.
Speaker 3: And they didn't put it in the public plot to
Speaker 3: help subsidize the public schools.
Speaker 1: No, and there's teachers who are paying out of their
Speaker 1: pockets for materials in the government schools. Well, your union's not.
Speaker 1: Randy Weingarten's net worth is up there around ten twelve
Speaker 1: million bucks. So, but this is not for profit.
Speaker 3: Here's the other thing that look if you and I've
Speaker 3: looked into this and spent probably a stupid amount of
Speaker 3: time focused on it, But it is impossible to understand
Speaker 3: the construct of the modern education system in the United
Speaker 3: States if you do not look at it through the
Speaker 3: lens of total autocratic control by the unions, the teachers'
Speaker 3: unions meaning it. And it's not hard to figure out
Speaker 3: why it's dysfunctional. You and I have talked about this.
Speaker 3: To be successful or to be functional takes incredible purpose,
Speaker 3: incredible discipline, and incredible focus. Right when that isn't your goal,
Speaker 3: the chances of doing it are impossible. So when you
Speaker 3: show me an educational system that is construc and overseen
Speaker 3: by people that are looking out primarily for the control
Speaker 3: of that system via those that run it, right, the
Speaker 3: administrators and the teachers yep, and mostly the administrators. To
Speaker 3: be fair, right, the teachers aren't getting rich. The administrators are.
Speaker 3: And when you look at that construct and you view
Speaker 3: it through that lens, all of a sudden everything makes sense,
Speaker 3: absolutely right. You sit there and go lowering student standards, well,
Speaker 3: every time you hear that, you're lowering teacher standards. Okay,
Speaker 3: you know, more days off in service days, all this stuff.
Speaker 3: You look at all of it. It is all about this. Hey,
Speaker 3: how about this? How about we have a system where
Speaker 3: how we define success or failure is the performance of
Speaker 3: a student, and yet the people that interact with that
Speaker 3: student on a daily basis are the lowest paid people
Speaker 3: in that system. That literally would be like if the
Speaker 3: clubhouse managers for the Mariners made more than the players did.
Speaker 1: Exactly, And there's this opposite. I want people to think
Speaker 1: about my daughter recently. Man, she pursued this job zact.
Speaker 1: She wanted work at this company. She's gotten there, and
Speaker 1: she's done a great job being there early. We've talked
Speaker 1: about this, you know, first to leave her first, to
Speaker 1: arrive last, to leave all those behaviors. So proud of her.
Speaker 1: In a business like hers, it's a retail setting. One
Speaker 1: thing that I've noticed with her is she does a
Speaker 1: really like, really quiet and friendly job of suggestive selling.
Speaker 1: I'm so proud of her. Was watching her work and
Speaker 1: this family came in and they ordered some lunch items,
Speaker 1: and my daughter walked by the baker area and she says, oh, wow,
Speaker 1: we just made these scones. And then she kind of
Speaker 1: walked by and they said what. She goes, oh, I'm sorry,
Speaker 1: we just baked these scones this morning. And the lady stops.
Speaker 1: She goes, you baked those here? Yeah, yeah, we just
Speaker 1: baked those this morning. Oh well, what flavors do you have?
Speaker 2: Next?
Speaker 1: Thing? You know, well, was this but if I were you?
Speaker 1: And my daughter kind of leans in and if I
Speaker 1: were you, and she's giving her the cinnamon punkman thing.
Speaker 1: And the lady's in right, she's getting this, and you know,
Speaker 1: she gives us to her, and as the ladies looking around,
Speaker 1: she said, did you want coffee with that? So all
Speaker 1: of a sudden, now it's some lunch salads, got the scones,
Speaker 1: got the coffees. And if I'm sitting there, I'm the
Speaker 1: manager looking there, an owner because I know the owners there.
Speaker 1: Often she'd look at that and go, that's my girl,
Speaker 1: that's my and you're pleasing the customer. Now compare this
Speaker 1: to the unions. Did you want some lower standards with that?
Speaker 1: And uh, less discipline? And could I introduce you in
Speaker 1: a gang shooting or two? How about some molestation by.
Speaker 3: Some teachers and trans reading time right?
Speaker 1: And and and yeah we can have men come in
Speaker 1: and t work for you and ladies underwear? Can I
Speaker 1: interest you in that? It's the exact opposite of what
Speaker 1: my daughter's doing. And yet the unions you're like, yeah,
Speaker 1: bring more of that.
Speaker 3: That's well really because it absolves them of any source
Speaker 3: of responsibility. Right, Like you'd be like, hey, here's the deal, man,
Speaker 3: I got a deal for you as a Bulwark client.
Speaker 3: You're gonna pay me a quarter and a half and
Speaker 3: when we have a bad year, it's going up to
Speaker 3: one and a half. Where do you want to sign?
Speaker 3: Where do you want to sign?
Speaker 1: Right? Casher charge. Let me ask you this quick question.
Speaker 1: How do you feel about the one hundred thousand dollars
Speaker 1: h one B visa per applicant that President Trump signed
Speaker 1: into being so mixed feeling?
Speaker 3: Mixed feelings all why A you want to protect I
Speaker 3: even hate using that word because I'm a big believer
Speaker 3: in free markets.
Speaker 1: But but we.
Speaker 3: All acknowledge that there have been a lot of things
Speaker 3: that I think we've overlooked over the past, you know,
Speaker 3: two three, four decades in terms of keeping a mind
Speaker 3: and and and attention out for the workers of this country.
Speaker 3: Right like this, I don't want to be protectionists, but
Speaker 3: at the same time, we also don't want to just
Speaker 3: open up our back door and let people, you know,
Speaker 3: loot us for lack of a better term. Right, So,
Speaker 3: uh so, I like I like the fact that there
Speaker 3: is a barrier or a cost there that would incentivize
Speaker 3: a company to hire domestically. I'm not nuts about the
Speaker 3: idea that anything that stops the best and brightest or
Speaker 3: is a roadblock from the best and brightest around the
Speaker 3: world coming here. And I know that both opinions are
Speaker 3: not that simple, right, because a lot of the people
Speaker 3: that are coming here. I don't know what it is
Speaker 3: as a percentage of the total, my guess is it's
Speaker 3: probably pretty small. But there's a percentage of the people
Speaker 3: that are coming here that are coming here for nefarious reasons.
Speaker 3: I'm aware of that, right That troubles me. On the
Speaker 3: flip side, I also know that you know, we wouldn't
Speaker 3: be sitting here right now unless you know, we wouldn't
Speaker 3: be sitting here in the exact same way we are
Speaker 3: now probably having this conversation if we would have had
Speaker 3: a similar attitude about bringing in talented workers, you know,
Speaker 3: during or after World War Two, out of places like Germany.
Speaker 3: You know, So when you when you when you understand
Speaker 3: the economic history of this country, so much innovation and
Speaker 3: so many things have been driven by people that weren't
Speaker 3: born here. Yeah, and so it's it's it's a tough one, man.
Speaker 3: I understand the move. But like anything, you know, like
Speaker 3: everything you and I've talked about, it's a cost benefit analysis,
Speaker 3: and I you know, it's one of those things kind
Speaker 3: of like I've said about the tariffs, like, realistically, if
Speaker 3: we want to sit back and take a look at things,
Speaker 3: and you know, the tariffs are a perfect example of this,
Speaker 3: todd because remember what everybody was saying when it first
Speaker 3: came out, the iPhone is going to be twenty six
Speaker 3: hundred bucks. Well it's not, okay, So there's now did
Speaker 3: I understand and have sympathy for that? Take when when
Speaker 3: when the tariffs are firs announced? Yes, But it's just
Speaker 3: more proof of there's a lot of different moving factors
Speaker 3: here and things will change as we go along and
Speaker 3: and and accurately predicting the future is the most difficult
Speaker 3: thing in the world to do, right, So you got
Speaker 3: to keep you got to keep a you know, you
Speaker 3: got to keep an open mind. But I yeah, this
Speaker 3: this one is tough. I think we'll only know in
Speaker 3: time if that's the right approach. I don't know, and
Speaker 3: I agree with you.
Speaker 1: That we're only known time. The reason I'm sympathetic to
Speaker 1: it is this that when I was reading about people
Speaker 1: bringing in folks to work at convenience sources HBO and
Speaker 1: visas UH and then putting them in their apartment buildings
Speaker 1: that had to stay that entire swindle that no longer pencils, right, So,
Speaker 1: and like, hey, Google, there's this great, huge, amazing mind
Speaker 1: that he's escaping Iran. He's been in their nuclear facility.
Speaker 1: He's escaped, and we can bring him here, and he
Speaker 1: loves America supposedly, But there's this one hundred thousand Google
Speaker 1: laughs at one hundred thousand dollars right right In one way,
Speaker 1: that also then challenges startups. But again, if you're a
Speaker 1: startup and you have any venture capital funding, and hey,
Speaker 1: you know what, We've got the chance to bring in
Speaker 1: the world's best AI coder, but it's going to cost
Speaker 1: us one hundred grand. Your VC is going. Why am
Speaker 1: I on the phone?
Speaker 2: Yeah?
Speaker 3: Just do it?
Speaker 1: Yeah? Why is this? Put it on your AMEX will
Speaker 1: pay you back? Why are you right?
Speaker 3: They're like, what do you mean you said one hundred mil?
Speaker 2: Right?
Speaker 3: No, one hundred grand?
Speaker 1: Why am I this phone call?
Speaker 3: Yeah? I gotta go to lunch.
Speaker 1: I'm gonna go spend one hundred and fifty grand at lunch, right,
Speaker 1: all right? Zach Abraham, my brother, chief investment Officer Board
Speaker 1: Capital Management, thank you for joining us, my friends, and
Speaker 1: please go with God's good grace.
Speaker 3: Ban As always man. Thanks for having me.
Speaker 1: Yeah, my pleasure. This is the Todd Herman Shaw. Please go,
Speaker 1: be well, be strong, be kind, and please make every
Speaker 1: effort to walk in the light of Christ.