Speaker 1: So just before Zach came on, I got permission from
his people to chat a bit with him in the
green room while he was having a champagne and all
the lobster and side, and so he says to me,
he said, I'm changing my tune on the market a
little bit because sometimes things are just too cheap to
pass up. And that pirked my ears. So I got
permission from his people to bring him on when he's done.
He's done, Okay, mister Abraham is done with his lobster.
We'll talk about this with the help of our free
speech platform, the Todd Hermer Show dot subseac dot com,
and of course with God Almighty.
Speaker 2: But Todd Herman Show is one percent disapproved, but big
pharma technocrats in tyrone sabrianware from the highd Mountains of
Free America. Here's the Emerald City, XI Todd Herman.
Speaker 1: Today is a day the Lord has made, and these
are the times which God has decided we shall live.
Zach Abraham, my friend and brother, Chief and vest Officer
bow were Capital Management Jointis. Zach, thank you for letting
me talk to your people this morning, and I see
that you're well taken care of how was the second
lobster as good as the first?
Speaker 3: Well, yeah, but I gotta let you know, man, I
got the private jet warming up on the tarmac right now,
and my good buddies Elon and Vivic want to consult
me on Doge. Some issues in DOGE, right, So I
can only promise you fifteen to twenty minutes. I'm kind
of a big deal.
Speaker 1: God man, you really intrigued me. There's a lot of
things to talk about today. I read this analysis in
nvidio might be more important to the market than the
FEDS and jobs data. That's crazy. We saw the nvidio
dropped on Wednesday. I think it was we got to
talk about the World Bank and they fear Trump. But
let's start with this thing you said to me, kind
of changing your tune a little bit, because there's things
that are too cheap to pass up. And then you
said something about the Chinese word for risk. So let
me just shut my speaking whole and listen with my
listening and holes.
Speaker 3: Well, you know, obviously there's you know, there's been a
lot going on, you know, politically, financially, all that kind
of stuff that everybody's aware of and that we all know,
and listen there is it's headlines like that one right
there that that really boosts my belief in uh in
where real opportunity lies. And I'm getting to the point
now where I honestly think and I feel this with
a very high level of certainty, which I don't usually
say that, and I don't want to get too specific
because I again, I never want people going out and
making investment changes or trades based on what they think,
you know, I said or did, because I could be
wrong too. Haven't around plenty of times. Having said all
that it that statement is true. And yet that is
also one of the prime reasons why I think this
is we are going to look back in a not
too distant period of time and see this as an
incredible investment opportunity and perhaps even generationally a generationally exceptional
period of time to invest. And what I mean by
that is I don't think that really large for the
entire market. As a matter of fact, I think the
market is going to produce extremely underwhelming results over the
next ten years. I don't think it's because any big
disaster is going to happen. There's always the potential of that.
I just think that when you look at valuations. If
you just look at history as a guide, whenever you
get a market valued this richly, and we've only had
it valued this richly two other times. This is going
back to eighteen seventy. That returns are very anemic going forward, right,
which makes sense. I mean you fast forward at all
the gains. Right, You've got the third most expensive, third
most expensive market on one metric, most expensive market another
nine metrics. So I mean, you know, it's right up
there with one of the three craziest periods of times
in market history. And yet the other thing just as
crazy as all that stuff is. And I think we
should get it a little bit into crypto and micro Strategy,
a company that's at the heart of the whole crypto
movement right now is as crazy as it all is
on the insane side, meaning just stuff that makes absolutely
zero sense. People buying because something's going up, not understanding
or paying attention to the underlying fundamentals. We've talked about
this before, but I honestly think that we've reached a
point of and again because I'm saying this, this probably
isn't true, but I think we've It probably won't play
out that way, but I think that we've reached a
point where it literally is time to completely ignore short
term results and start buying the value that's out there.
Meaning we had a moment the other day. Now, don't
get me wrong, man, I would love to sit there
and be like this never bothers me. I am immune
to emotions. That's not true. We owned a goal stock
the other day. It was a very small position, a
little more speculative, but deeply undervalue, deeply undervalued. And they
reported earnings. The earnings included a little bit of a
delay in their underlying you know, process to build out
of their different properties, and a little bit of margin slippage,
a little disappointing, but didn't change the long term picture
of this company at all or how deeply undervalue it was.
On that news, the stock sold off sixty percent in
a single session. Okay, so to the point where it
was trading at about a sixty sixty five percent discount,
to where the newly hired CEO had just invested millions
of his own personal money buying the stock, right's and
a sixty percent surcharge to what's currently going on. And so,
don't get me wrong, that hurt, and that really made
a second guess what's going on because we're looking at
the results, going this doesn't even make sense. Why are
you selling this off? This thing so deeply undervalued? Right,
we went back and checked our numbers. And I'm not
going to give you the name of the company, but
we went back and checked our numbers. At the time
when we were looking at this in this past week,
the stock was trading around sixty cents a share. Okay,
when we go look at the resources, the confirmed gold
and silver that this company has in the ground that
is worth twenty three dollars per share. Oh, twenty three
dollars per share. The stock's trading at sixty cents. Okay,
Could it go to forty? Sure, could it go to
twenty five? Yep? But I think you've reached this time
where you don't care. And as a matter of fact,
I think you've reached the time where you cheer for
it to go lower. Because when people are willing to
pay a dollar for ten cents, you sell it to
them until they don't want anymore. Right, if people are
willing to sell you a dollar for ten centsense, you
buy it until you cannot buy anymore. Right, Wow, And Look,
I am not telling you to go load up on
gold stocks. They're not all the same. I'm not telling
you that. What I am telling you is this lunacy
I think has reached a point where you're looking at
these companies and going the disparity. And here's the thing.
A lot of these scenarios, the company has their own
fate in their hands, meaning the stock's been beaten down
so much. If they cash flow a fraction of what
they're projecting, they could buy back fifty percent of the
shares outstanding over the next three years, you know, I like,
so they could issue special dividends. They're the equivalent of
fifteen percent.
Speaker 1: You've you've explained this so well, and I think I
get it now. And let me take a second here
and do some we need to do talking of discounts
and availability. But I want to bring the vidianto this
because I think I get it now, Zach, and please
pay off this thing the Chinese word for risk, because
you said that in the green room in a second.
Do that in a second. There is a discount that
I'm telling you right now. It won't last. It can't.
It's impossible because they'd go broke my friends Matt wade
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see if I'm tracking here, Zach. The insanity of Nvidia,
which had on Wednesday they dropped. There were some revenue
forecast disappointments because there's exuberant expectations of this company. Their
stock price is completely irrational compared to their growth. It's
a good company. You've said, it's maybe even a great company,
but the fact that it might well be more important
to the entire market than the Feds and job data
shows the level of insanity on these popular stocks that
everybody's buying because everybody's buying, so more people buy because
more people buy. Meanwhile, your gold company and companies like
that can't buy attention, They can't get attention, and so
we have all these opportunities for those of us who
are looking at this from the long view saying, are
you kidding me? I can buy a twenty three dollars
stock for forty cents and just wait until math makes
a comeback.
Speaker 3: Yeah, obviously we can't. You know, nobody can look at
you and say that that company is ever going to
trade a twenty three dollars right, we're saying that, you know,
if you do the map, that part of it, and
they've got some liabilities and the balance sheet too. But
I'm illustrating though, like the you know, the unbelievable disconnect
here between the actual value and the perspective value, you know,
because there's some forward looking stuff into that twenty three
dollars per share, but the spread is so wide, right,
Like you can come up wildly short of that twenty
three dollars estimate and still make can extra money. You
know what I'm saying, Like so so and again, none
of these are guaranteed outcomes. But here's the thing. It's
not just with the gold companies. You see it all
over the place. Go look at a company like Google. Okay. Now,
this isn't nearly as good as an example, and Google
is not as clean in so many ways. I think
it's really it's close to the more geopolitical risk in
a lot of ways. Well it isn't. It isn't. But
you know, you see pricing anomalies everywhere because of these
dynamics playing out in markets. Like I said, you go
look at Google. Well, Google is a company that is
growing at fifteen percent a year. Let's go compare it
to Costco. Okay, Google is a company that's growing at
about fifteen sixteen percent a year. Costco's growing at about
nine nine and a half. Okay, Google's margins are in
excess to thirty percent. I believe costcos are right around
four Okay, at four to six I would say somewhere
in there, and I might be being generous, but you know,
they're a retailers. It's not great, not great margins. You
go look at you know, margins are better. Go look
at the balance sheet Google's got. You know, Costco's doing well,
you know, ridiculous amounts of cash on hand. They've got
a more diversified business. You look at all that. Then
you go look at so you know, Google growing at
virtually double the rate, almost double the rate to Costco
margins that are you know, eight to ten x what
costcos are. Flip around, look at the valuations. Costco's trading
at nearly sixty times earnings and Google's at twenty one.
Speaker 1: Right.
Speaker 3: So, so again not telling you to go load up
on Google. What I'm saying is that these are examples
of what usually if you want to if you want
to go find out, you want to look through history
and find out the guys that typically do the best
put up the best performance numbers in any given cycle. Right,
it's usually the guys that we're investing the heaviest into
the most underperforming sectors at the height of the previous bubble.
Right Why because that's where the values are. It doesn't
mean that all the things in those categories are going
to do well what it means. If it's in that category,
it's probably pretty cheap, right, because it hasn't performed, especially
that's magnified now in the longest and biggest bull market
we've ever had in US history. So if you're looking right,
the number one way to manage money over the last
fifteen years was throw your money in the Nasdaq and
just let it ride, right, So passive investing has been
almost the impossible way to possible form of investing to
beat in this whole cycle. Okay, well, guess what that creates?
All kinds of anomalies, which we think is setting up
the next cycle, which is the inverse, where it's going
through the indexes and picking out these companies that for
stupid reasons have been completely left behind and rejected. Right,
how good as the pull passive by everything has been
over the next ten years, I firmly believe it's going
to be the inverse that if you want really good
and excess returns, you need to be able to figure
out where the value is because that's gonna in my opinion,
and if history is any guide, that it will turn.
And when is it turned, it turns when the largest
amount of people are the most sure that it never
is going to right, and you're there now, so you
look at Nvidia like you were asking. Another classic sign
of this, I think that that headline is one hundred
percent correct, as crazy as that is. Why because do
I think it, Let's not confuse it. I don't think
it's the most importan in stock as it relates to
the underlying economy, but as it relates to the stock market. Absolutely.
Reason Number one, You've got a market where the number
one source of new flows are ETFs passive investments in
videos the biggest company in the S and P five hundred,
so it gets the biggest amount of the flows, right,
So if in Vidia keeps going up, that is a
really big pull on the rest of the market to
go up. Right. If in video goes down, that is
a really big anchor pulling the rest of the market down.
The other thing is is what is everybody the most
excited about? AI? In video is the center point of that, right,
So if AIS, if in Vidia trips, if in Vidia
trips by ten percent, the AI sector as a whole
will probably get hit for thirty would be you know,
that's that's my guess. I mean, I can obviously I
can't guarantee that, but yeah, I think that that's one
hundred percent correct. But again, step back for a second.
That is precisely why you shouldn't be loading up on
companies like Nvidia, because that's idiotic, that is irrational. We
are talking about a big business based on math numbers
and cash flows, right, saying that all of these other
companies are going to lose value because one company that's
trading an evaluation that would make an aircraft career full
of drunken sailor's blush, right, Like, that's that's ridiculous, okay,
but it's true. So what does that tell me? Inherily,
it tells me that this is a market that is
very detached from logic. And what it also tells me
is that, you know, it's like the little kid, Like
we've used this analogy, a little kid dig it through
the hile a horseman to or right, there's a pony
in here somewhere, and and.
Speaker 4: That's that's the way we're looking at it is saying, Look,
I agree with you, and that's why I am so
excited because when markets become this value and fundamentally blinded,
you know, for a fact, there are dollars selling for
ten cents, and that's what we're excited about.
Speaker 1: You remind me of this. A couple of farmers I
knew in Utah, and they bought some lands down in Nevada,
and bit by bit by bit they were selling off
the land, and bit by bit the casinos were coming
in and they did this crazy, crazy trade. Is they
just did this thing where they all they wanted was
bridge rights. That's that's it. Like they sold and they sold,
and they negotiated and they traded and they brought some
they bought some bridge rights to bridge this river down
near Mesquite, Nevada. And lo and behold the casinos. Look
at these idiots, these buffoons, willing to make this trade
just for bridge rights. They didn't have their engineers go
look at the river. They did not look at the
historical flow of the river. They did not look at
the overflow of the river. They did not look at
the historical floods. They did not realize that in terms
of geological stability, there are two places you can build
a bridge that's not going to sink. The farmers knew
this because they had farmed the land forever. Everything else
here is sand and dirt and mud. There are exactly
two places our tractors didn't sink, exactly two places along
this entire area of river that you could safely build
a highway without doing all sorts of infrastructure build There's
only one place that we're going to have control of.
We need the second one. One at the front of town,
one at the end of town. This was about forty
years ago when the casinos started to have really good
business come in. They needed some bridges, so they went back,
started to make the plans to go to the city
and build the bridges, and they started going to the paperwork.
So the grandkids of those guys got a phone call
about those bridge rights. They saw this when no one
else saw it, and the casinos thought they were going
to come and play with some farmers. Well, they played
with some farmers grandkids who had been to college. One
got turned into a lawyer, one got turned to an MBA.
So they were perfectly happy to lease the bridge rights
to the casinos. And so they've.
Speaker 3: Leased out how much they were releasing them for, Oh,
well enough, whatever they wanted.
Speaker 1: Their lives materially changed. And one of the things they did,
and I questioned the wisdom of this was we get
a whole bunch of free stuff at the casinos. They're
super fun people to go to casinos with because they
don't pay. Yeah, really really interesting. All right, we need
to talk about this company micro strategy. You talked about
this and this has to do with cyber and cyber
coins and bitcoin, and we'll talk about this with Zach Abraham.
Let me tell you this, There are bets being made
all the time. Sometimes they're just you know, investments. My
friend Steve Anderson is the managing partner at Renewed Healthcare. He,
like Zach, has made a career out of analyzing things.
He happens to be a quant so super high level
math guy, and he turned his mathematical analysis towards the markets.
That's how he made his money. He built hedge funds
and that's how he built his money and built his wealth.
He's a smart guy. He is a very friendly man.
He really likes serving people. He gives a bunch of
money to an orphanage because he himself is an orphan
and so he has given a whole bunch of money
to orphanages as in Mexico. Because now he does business
out of Mexico because he got a disease and doctors
told him there's no cure. You know, you're just gonna
bit by bit by bit not be able to do things,
including golf, which is Steve's passion aside from his wife Kelly.
His passion is golf. He got informed that he could
go to the Middle East and get these things called
stem cells from placentas in abilical courts. He's a Christian man.
He doesn't want anything to do with abortion. He got
the stem cells and he learned that you couldn't do
this in America, so he started to do the math.
It made more sense to open the business in Mexico.
Then then Steve the nurturer took over. He's going to
control all the processes. So when they acquire these stem cells,
they check on the health of the women and the
babies throughout the process. They pay for the birth. They
only use stem cells that are the very very best.
I use a strain that has never been touched by
the modified RNA injections. Not ever, and Steve wanted to
control more. So they culture the stem cells so that
they have complete control over them, and they even created
their own They create their own oxygen. They refuse to
bring it in because he doesn't know who's touched it.
He can't confirm it's health for you. If you're being
told you have to have surgery, this is the way
you're going to have to live. Your traumatic brain injury
is too bad. There's nothing we can do. Pause. If
you're being told that you can't golf anymore, pause, call
or actually go to renew dot Healthcare r E n
u E dot Healthcare and they will tell you if
these stem cells can rebuild your body's parts, because that's
what they do. Fast forward Steve and Kelly when they're
down in Mexico. They live on a golf course. Yeah,
he golfs again. It's renewed dot Healthcare are E n
ue dot Healthcare sat kbrams with a chief investment officer
Bulwark Capital Management. Zach, you're talking about this company called
micro Strategy is going around and buying up all the
cyber currencies. At least that seems to be the strategy.
So this seems significant.
Speaker 3: Yeah, I mean, look again, you look back through financial history.
This is yet another classic sign that you expect to
see in bubble environments, which is and I want to
be really clear, guys, But I'm talking about a bubble.
I'm talking about a kind of a unique bubble because
I think in some ways the bubble is so much
more widespread in terms of who's participating in it. Yet
at the same time, the bubble is very selected in
terms of what types of stocks and what types of
things that's involved in. So when I'm talking about this,
I'm not foretelling a giant market crash. I think things
are going to crash, but I also think that saving
grace in this market is that there's so much stuff
that's undervalued. So while a lot of this ridiculous stuff
is getting smoked, I would expect this other stuff to
return back to some somewhere close to intrinsic value. And
so I actually think this process could take This process
could occur without you know, seeing a forty percent market drop.
I don't think it's necessarily like, you know, an apocalyptic thing.
I just think that if you're writing the things that
have worked, including the general market, over the next five
to ten years, I think you're gonna have significantly different
results than you had over the last ten to fifteen years.
And I think you're gonna have a very hard time
keeping up with inflation rates. But micro Strategy would be
another classic example that you'd expect to see, you know,
if you had a checklist of things that you expected
to see in a bubble of some kind, this would
certainly be one of them. What micro Strategy is doing
is it's a relatively small, sort of niche tech player.
I'm not one hundred percent sure and exactly what they do,
but it's it's I believe that they kind of provide
some equipment to like oud based businesses or something like that.
Don't quote me. The underlying business is not impressive at all.
I want to say it does revenue in the neighborhood
of like seven eight hundred million a year, growing at
a very modest rate. Kind of a fine little business,
but kind of a snoozer, right, Well, what the CEO did,
and interestingly enough, the CEO was the CEO of another
company back at the tech bubble in the late nineties
that you know, crashed by ninety some percent and got
obliterated too. So it appears he's going back to the well.
But what he's doing is he is issuing tens of
billions of dollars in convertible debt Okay, So debt that
could be converted to equity, and the debt pays zero
percent interest. Okay, and the reason you're buying it is
because of a convert So it's it's it's. What you're
hoping is that you get an arbitrage where you're able
to convert to an abnormally large size of equity. So
if you buy a convertible that not technically. What you're
hoping is that the company has a big drop in
its equity prices, right, which allows you to convert and
get a big stake of the company.
Speaker 1: Here's your bet. You you're buying a convertible note, you're
loaning the company money, but you have the option to say, actually,
we don't want the interest you were going to give us.
Speaker 3: Well, remember they're not paying interest on these ones. No option.
Speaker 1: Yeah I got that part. But traditionally, convertible debt is
someone loans you the money and you're paying interest, but
they have the option to come along and say, yeah,
we don't want the interest anymore. We want equity, so
we want to turn that debt into equity. But that
traditionally comes with an interest payment and the investor wins
either way, Right, small or big. If the company is
doing super super well, it converts. They get equity that
is now pays them back more money than the interest
would have. But he's doing this with zero interest rates,
zero percent interest rates, and issuing tens of billions of
dollars of this.
Speaker 3: Yeah, yeah, so billions, and so he's yeah, levering up
the balance sheet in an unbelievable way, turning around taking
that money buying a non cash flowing asset. Okay, so
let's stop right there. Okay, I don't care what you
think about bitcoin or any other cryptocurrency. This is an
old movie that's been around, that's been played many times.
When you are levering up a balance sheet to an
ungodly amount to buy a non cash flowing asset, it
is only a matter of time until you get margin cold.
And the reason for that is at some point, especially
if you are buying something that is as volatile as bitcoin. Now,
to Sailor's credit, he rolled the last bitcoin drop down
from sixty some thousand down to fifteen or sixteen thousand,
and he wasn't forced to liquidate yet. But that point
will always get there, and at some point right there
will be a mismatch, meaning he will as an equity holder,
you will have two choices. At some point, bitcoin will
drop well below their average purchasing price right of of
of the of the deal. Because remember they're purchasing the
largest amount dollar amounts as bitcoin goes higher, right, So,
so their dollar costs d averaging, meaning their average cost
for bitcoin is continually rising. Right, Well, so are the liabilities.
So at a certain point bitcoin drops to a certain level. Okay,
they've got to do one of two things. They either
have to pay that debt back or it's got to
convert into equity. Well, as soon as that debt converts
into equity, it's going to trigger all the other equity converts, right,
because they're sitting there going, well, we got to get you,
We got to get in here, right and and and
and swap this thing.
Speaker 2: You know.
Speaker 3: Anyway, what you eventually get to is you've got two
You've got two options as a shareholder of the stock.
Eventually they're going to be either massive forced sellers of
bitcoin or you will get diluted down to nothing. Now,
the irony is this company stock trades in lockstep with bitcoin,
except it moves up on average about four times four
percent for every one percent that bitcoin moves. Now think
about that. That's insanity. You're buying the stock because of
the bitcoin. Okay, but in this case, the bitcoin has
a massive liability attached to it, which is this convertible
debt that is going to convert because the company doesn't
have the cash to pay the debt back, right, it
doesn't pay an interest rate, so it's gonna convert equity
right at some point. Okay, So you're saying that owning
an ever decreasing percentage of a company that owns bitcoin
is better off than owning bitcoin itself.
Speaker 1: This is insane. And you mentioned so that that's the
CEO's an Air Force veteran, so thanks for serving the country.
That's that's that defies explanation. I mean, this is, let's
put this in common human terms. There's a company that
buys up with zero interest rate loans all sorts of
tickets to concerts. So they buy them and it's just
convertible notes and you can buy and you can go
to these concerts. And so time and time and time
again they're buying up these concert seats and you have
this and eventually gonna go these concerts or you could
buy a ticket and go to the concert and pay less,
far less, And this guy's that's a four hundred percent premium.
He's getting two actually just owning bitcoin.
Speaker 3: Yeah, yeah, And it's just it's and that's one of
the problems you have about so much record retail involvement
is that the guy says things. I read this explanation
from a retail investor on Twitter this morning about it,
saying like he finally gets what Michael Saylor is talking
about and why it's worth so much more. And I'm
sitting there going, this is nonsense. You're getting swindled. And look,
it is entirely possible that and I've listened to Michael
Saylor talk. It's entirely possible that he believes it. There's
a part of me that thinks he does believe it.
I don't think he's a swindler per se. I just
think he's incredibly foolish. And I just again, I look
at him, and I'm like, I look at these people,
and I go, guys, look at the structure of this deal.
If you want to own bitcoin, like, you're guaranteed if
you buy the stock here at this price, you're virtually
guaranteed that your ownership percentage is going to get diluted,
and the only asset of size that matters on the
balance sheet is bitcoin. So you've just figured out a
way to negate the one biggest upside of bitcoin, which
is that you can't make any more of it, well, right,
because as you print more of anything, right, the value
of that thing becomes less. Okay, well, how is that
any different than buying a company where you're underlying share
in that company is constantly being diluted. So like, it's
crazy that this is trading at a premium to bitcoin
because the whole idea behind bitcoin is you can't make
any more of it, right.
Speaker 1: Yeah, I just saw this tweet he responded to with
clown faces and laughing faces. Michael Saylor, CEO of this
micro Strategy is the new Warren Buffett. Yeah, this even
I'm listening to this, going, this has to collapse. I mean,
you could have bought ten percent of micro Strategy, and
now it's nine percent and eight percent and seven percent
and six percent. Every single day you are guaranteed to
make less money on your investments. Every single day more
people buy. You could have taken that ten percent you
bought and bought bitcoin and not have this solution ever. Well, yeah,
but this bitcoin could go down.
Speaker 3: But but it's crazy, man. When you tell this to people,
it's a very unique and you know, I talked to
buddies of Une that have been in the industry for
forty years. It's a very unique attitude in this market
where they look at you and they go, oh, you're
just you're just mad that you were in it. And
you're like, what are you talking about? And they're like, well,
you know who cares? You're not right? The stock went up,
so like everybody has this attitude. If the price goes up,
that is reality, right, And it's really bizarre because you've
never had that attitude wholesale and markets like this. Oh right.
Speaker 1: But there's been one time when I was raising money
out a Silicon valley. There was a time and I
saw it. I saw people whose companies had never turned
a profit. They were nowhere near a profit, they were
twenty years away from a profit buying helicopters. I had
dinner with them, and the conversation began. Sitting down with
the CEO of Salon dot Com sitting down to eat dinner, Hey, Michael,
how Are you about a helicopter?
Speaker 3: Yep, yeah, yep. Wow. But I mean, but I remember,
what's so unique about this is that mania lasted about
two and a half three years.
Speaker 2: Right.
Speaker 3: This has been going on, argue arguably for five to
seven years.
Speaker 2: Right.
Speaker 3: I mean it's getting crazier, right.
Speaker 1: But it is. And I'm not saying it's the same thing,
but I'm saying at that time, I am I'm looking
in the eye. And there were people who who would
look you in the eyes say you don't get the
new economy man, like, yeah, I remember things like that.
That's that doesn't happen anymore.
Speaker 3: Remember, Remember it's not about cash flow and earnings, it's
about eyeballs.
Speaker 1: Yes, I got a phone call from a woman I
did business with their and become friends with, and she
lives in San Francisco and we did a lot of
business together. And she called me from San Francisco and
she said, hey, I'm talk to you for a second.
She was just one of those companies where CEOs were
buying helicopters. And I said, hey, what's going on, Leah? Hey,
you know my husband and I bought this house at
hate Ashbury. Oh yeah, on top of on top of
the hate. Oh wow, by the zoo. Yeah, well we've
got a view of both sides. Oh wait, so you're
I mean you're you're up there? Yeah, so we bought
it with stock. I forgot where's your husband? Zd net?
Where are you salon?
Speaker 2: Yeah?
Speaker 1: What's going on? Could you loan of some money? It's funny. Yeah,
they've fit this margin call apparently, you know, we've got
this this this bubble agreement on our mortgage, and they're
just they think our stocks going got back up, so
they they've kind of called the loan. So we've we've
got a little time before we have to make the
bubble payment. Could you loan us some money? How much
you're looking for?
Speaker 2: Oh?
Speaker 3: So they took a hold on, hold on. They didn't
sell their stock to buy the house. They took a
loan out against their stock. Oh, because they I'm sure
it was going to go up more.
Speaker 1: So how much would you guys? You know what we're
looking for? Fifteen to twenty thousand dollars? Leah, how much
time does that buy you? Thirty days a month? You
know what? I'd love to be able to help.
Speaker 3: I'm a good man of money after bad there a month.
Speaker 1: Oh no, no, it's okay. I get it. You know
it's a lot of money. And you know we don't
know what you did that well, and my husband's father
is going to step in and help us this month. Leah,
this isn't going back up. No, No, it'll be good.
Speaker 2: No.
Speaker 1: And this this is the attitude. Then we need to
talk about this now, going from the so called private market.
I guess micro Strategy is private. I VIDI is private.
But I need to run by you some stuff that's
going on with the World Bank, and then just some
kind of political stuff since there was this election and all,
and I want to talk with you about that, some
of the ways we're spending our money as government. Sach
Abrahm's with US chief Investment Officer Board Capital Management. I
don't know if you've done this. Have you bought your
bone frog wine yet from bone Fog Sellers? You said
you're gonna do that?
Speaker 3: No, I need to you know what I'm gonna. I'm gonna.
I'm gonna actually order some for the holidays here. It's
just going to get the wife on that.
Speaker 1: I don't whyt you do that? Have your people do that?
It's Bonefrogsellers dot com slash todd get the twenty fifteen
Marri Low. My friends like them Marlow more than they
like the Cabernet, which surprised them because they're wine people
and apparently Merri Low is ghetto or something. I don't
think so I don't drink wine, but what I know
so my friends, who are big wine snobs, they love
the wine. They were relieved because they love Tim Crookshank,
the founder and CEO Bone Frog, who is a Navy seal,
a veteran he retired, did three tours on our behalf
three deployments. I should say he has bone Frog coffee
you know about. I'm wearing a bone Frog Coffee T
shirt today and drinking Bone Frog coffee. I don't drink wine,
but my friends do. My wife loved the wine. My daughter,
who's brand new to wine, loved it. I'm getting notes
now from listeners and viewers who love the wine, and
Tim wanted to me to thank you for trying it.
It's bonefrogsellers dot com slash todd. Ten percent of proceeds
go to the Navy Seal Foundation to help support the
families of Navy seals who have fallen in duty you'll
see the bone Frog insignia on it, which is a
really cool logo that's insignia of a fallen seal. You'll
see God Country team on it, and you'll read this
story about how Tim was able to do this with
a family from Washington in the organ area that the
trike corners down. There were experts at wine. They taught
him how to do this and help him make the wines.
It's bonefrogsellers dot com slash Todd. The World Bank, Zach
is a little bit afraid that President Trump might might
cut their budget. This is after the World Bank they
lost track of some money and they're looking for it.
It was they find it. I'm sure it was twenty
four billion.
Speaker 3: I mean, check the couch cushions. Check the couch cushions.
Speaker 1: What does the World Bank do? I mean I know
someone whose grand dad was on the border the World Bank,
Tim Draper, and I asked him one day what does
the World Bank do? And he said, look, I don't
He couldn't tell me.
Speaker 3: Here's something I was thinking about. Yeah, did I think
that we as a I think that we as a society,
not just here in the United States, but around the world.
I want you to think about something real quick. Now,
I don't. I am nowhere near as familiar with the
legalities surrounding you know, the legal structure and the and
the rules and the restrictions surrounding the World Bank. What
they can and can't do.
Speaker 1: They could do anything. They can misplace it for a billion.
Speaker 3: Bucks, right, yeah, And that's my whole thing. My assumption
is is that they're set up quite similarly to the
central banks around the world. Correct, so, and as a
matter of fact, my understanding is that they're almost like
a surrogate of the world's central banks. But think about this.
Take a look at the Federal Reserve. Okay, the Federal
Reserve has the ability to create currency out of thin
air without any type of approval. Right, the US government
cannot tell them what to do. The Treasury cannot tell
them what to do. Okay. They can issue currency out
of thin air with no congressional oversight, no audits, nothing,
can't look at the books, they cannot be audited.
Speaker 2: Right.
Speaker 3: What do you think are the chances that if we
were able to pull those curtains back, we would see
ungodly misappropriations of money that we would see potentially central
banks including the FED illegally funding military actions and places
where they shouldn't be making money off illicit trades like
drug and weapons use.
Speaker 4: Uh.
Speaker 3: Look, I'm not accusing the FED of this, but what
I do know is where there is a lack of transparency,
that is never an accident. Right, It's never an accident.
Where there is opacity, it is always there for a reason.
For instance, you don't ever see clouded glass right on
a door that separates the hallway from a pool. Right,
you're you know what I'm saying, Like, where do you
now you walk into a bathroom or a shower door,
You're gonna see some smoky glass, Right, It's for a reason. Right.
So when you see the FED and they have pushed
back vehemently against being audited multiple times, what does that
tell you? And I just sit there deductive reasoning and go,
let's flip it around. What do you think the odds
are that if we audited the FED we wouldn't find
any of that stuff?
Speaker 1: Zero?
Speaker 3: Simply I would say I would agree.
Speaker 1: Hey, when you have a World Bank, And when I
asked him Japer, what do they do well? They fund
projects around the world to help countries that can't afford
loans from the United States. Okay, so the United States
doesn't have to make loans. Well no, I mean we
still make loans and we give money out. Okay, So
they are a supplement to a foreign ade. No, they
don't have that much money. So what do they do? Well,
so they might back say a building projects, say in Africa. Okay,
so like when we have funds to help build things
in Africa, there are a supplement to that.
Speaker 4: No.
Speaker 1: No, they'll buy those things and they'll convert them, convert
them to what. Well, then independent investors will come in.
Who gets that money? Wellthough that goes back to the
World Bank. What do they do with it? Well, they
go fund projects. It's a bank, it's a sticking bank.
And we don't get to audit that. We don't get
to audit the FED. I'm telling you be suspicious of
this as a as as a married couple. If you
walk into the front room and your spouse is typing
away on the phone and they see you coming and
they turn it off and set it face down and
then sit back from it.
Speaker 3: They probably weren't buying you at Christmas present.
Speaker 1: Maybe they were, but probably not. So when someone does
that you know, they don't want you to see what
they're doing. We know the FED doesn't want us to
see what they're doing. So I whole President Trump comes
along to the World Bank and says, yeah, i'll give
you more money as as soon as you tell me
where it's twenty four billion one.
Speaker 3: Well, and look, and I think that's the same I
think that's the same thing, the same. Well, what I'm
hoping that same approach to users with the FED is
what I'm And what I'm hoping is that his threat
of inserting himself into interest rate or monetary policy decisions
is just leveraged for him to get the FED to
agree to an audit.
Speaker 1: Oh wow, I would love that so much.
Speaker 3: Yes, because if that's why he's threatening being involved in
the monetary policy decisions, then then I'm good with that.
If he earnestly wants to be involved in monetary policy decisions,
I think that is a train wreck. Uh, And that
is something that will cost us deerly in the long run.
Speaker 1: So I totally agree with you and that when I
brought up auditing the FED. Did I tell that story
when I brought up auditing the FED Washington DC, When
I was in the Republican Now Committee Leadership Team meeting.
Speaker 3: No, but I'm sure it was like the equivalent. I'm
sure the reaction was like having a you know, a
square gun full of holy water in a room full
of vampires.
Speaker 1: I'll tell you in a second the actual reaction. It
was so so phenomenal that we need to go through
some spending and just you know, I like what about isms,
So I thought we'd do some what about isms in
terms of what we spent in this past year and
just work our way down to some people who might
need the money more than the folks were giving it to.
We're talking to Sack Abraham, chief investment Officer Borward Capital Management.
In terms of money, you might pay a little bit
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it's Alansoaps dot Com slash Todd so Zach, let's run
through some numbers for the year, just a year in review.
So far this year, the United States has given twenty
four billion four hundred billion to Ukraine, eleven billion, three
hundred million to Israel, one million nine or one billion,
nine hundred and fifty million to Ethiopia, one point six
billion to Jordan, one point four billion to Egypt, one
point one billion to Afghanistan, one point one billion to Somalia,
one billion to Yma, nine hundred and eighty seven million
to Congo, eight hundred and ninety six million to Syria,
nine thousand per illegal immigrant who's entered the country, and
Americans who've lost everything through Hurricane Helene are filling out paperwork,
hoping very very much to be able to get seven
hundred and fifty dollars, many many people being denied that
seven hundred and fifty dollars. You made a joke earlier
about Elon Musk and vivik Ramaswami and the doge thing.
I start here, I start with this comparison, and I
go back and I talk about something you and I've
addressed on this show before. It is time for President
Trump to come to the table and say this. Every
government department starts at zero. It's baseline budgeting time. Guys,
your spreadsheets are filled with zeros. Come and make an
argument that you should exist fair enough.
Speaker 3: Yeah, oh, I mean yeah, I mean yeah at one percent.
I mean, I mean, I do feel bad for the Congo.
You know, I'm they didn't hit the billion dollar mark.
I would introduce that for racism. Probably some is Yeah,
I mean you got to get I mean, I mean,
it's just the slap of the face when you're not
a part of the billion dollar United States giveaway, you know,
I mean, like that's it. That's like not having a
seat at the table for family thanksgiving. You know, you
show up, You're like, where am I going to sit?
I mean, your yeah, yeah, or you sit outside the
garage with a cat, you know, keep him company.
Speaker 2: Yeah.
Speaker 3: This, I mean, there's so much low hanging fruit. People
are like, oh, they're not going to live up to
the expectations, And I'm like, look, do I think that
they're going to trim an amount of money that significantly
impacts our deficit situation right now? No? I don't, Okay,
do I think that they could trim hundreds of billions
of dollars off of the federal deficit and for us
to actually see increased service and in increased results. I
absolutely think that that is possible. I don't think it's
not only possible, I think it's fairly easy. Meaning I
don't think like there's so many of these situations where
the money spent on the regulator is the problem. Right, Like, So,
if all you do is get the regular out of
the regulator and not all the not all the time,
and not with all regulations, but sometimes a lot of
the the you get a two for one deal, right.
You get the money that you save federally, then you
get the increased tax revenue off of increased production and
increased profitability in the underlying sector. Yep. So it's it's
kind of a it's a two for one. So do
I think that they should do that, Yes, But here's
the reason, you know, to be fair to our politicians
on the hill, uh and and all those and all
those bureaucrats in the UNA, to be fair to them.
The reason that they're not giving these people more than
seven hundred fifty bucks. I mean, I don't think you're
being really fair about it, Todd when they give those
people the money needed to rebuild their houses. Yeah, their
nieces and nephews aren't getting special board positions that are
paying half a million dollars a year by some foreign entity.
Speaker 1: I didn't even fight.
Speaker 3: Yeah, I mean, so you know, if nephew Nick ain't
getting his sweetheart five hundred grand a year, you know,
working for an Estonian you know, nat gas provider or
something like that, I mean what you know. I mean, look,
I wish to folks, well, hope they can rebuild their house,
but nephew Nick's got to eat man.
Speaker 1: Yeah, you know, let me just say this now. I
want to apologize all the people I hurt by not
understanding this better, and I seek to do better in
the future. I'll reach out to some of these communities
as the marginalized sons and daughters of speakers of the House.
Speaker 3: And et cetera.
Speaker 1: And we just learned, you know, I just I fell
short of my expectations of myself. And I'm making a small,
small to my size, to the fund to preserve the
sons and daughters of the United States Senators.
Speaker 3: That's what I'm here for. Man, I think I'm happy
to be of service.
Speaker 1: Attention, Zach Abram has been with US Chief investment Officer
Bollward Capital Management and good friends, great friend of the show.
Always appreciate you. It's wise counsel day. Thank you, my brother.
Speaker 3: Hey, thanks for having me. Man, God bless you and
all the listeners.
Speaker 1: I bless you. This is the Todd armashell. Please go
be well, be strong, be kind, Please make every effort
to walk in the light of Christ.