Speaker 1: Give the devil is due, they say. John Stewart's writers
are clever people. They decided to have John Stewart become
a doge guy. We'll talk about this with the help
of Zach Abraham, Chief investment Officer Bulwarck Capital Managements, and
we can do nothing that matters that God Almighty, Thank
you Lord.
Speaker 2: But Todd Herman show is one disapproved but big pharma
technocrats in Tyrn's everywhere from the high mountains of Free
American here's the Emerald City exile.
Speaker 1: Todd Herman. Today is a day the Lord has made,
and these are the times to which God has decided
we shall live. Zach Abraham, chief investment Officer Bowarck Cupital Management,
joins me. Zach wilcome back to the show. Good to
see you.
Speaker 3: I can, I'll tell you, man, since Trump got elected,
We've always had fun doing this. I always look forward
to it every week too, but I look forward. I
look forward. I look forward to it even more now
just because it's like there's too much right what end
of the pool are we going to jump into? Oh?
Speaker 1: I totally agree, And I'm watching the panic over Doge
and what they're surfacing to see people protesting against stating
what they accomplished during a week, to panic that we're
not actually going to have automatic renewals of contracts. This
is a new one that contracts are actually going to
have to be reviewed before they're renewed. And there's utter
panic on this. And as a business guy, I mean,
you're far more business guye than I had. I left
that behind. I just had a small podcasting a radio business.
But as a business guide, this has got to be
endlessly amusing and a sense of great joy for you.
Speaker 3: Amusing certainly. Did you see the video. I think the
woman was on CNN being interviewed. Did you see her?
And she's like, you get this email and then the
pressure you're under in forty eight hours and I'm just
sitting there going five bullet five bullet points, what really?
And that's one thing per day? And then listening to
the people come out. I saw one guy that's now
works for I don't know, he's in the state legislature
for Illinois at some role or whatever. Yeah, and he
comes out and a Democrat to come out and he's, well,
you know, I was in I hear people saying this
is no big deal. But as a guy that was
in the private sector for so many years and ten
years as CEO. You know, I can tell you and
I and I and I retweeted and I was like, hey, Sean,
the guy's name is Sean. And I go, it's called
a performance audit, right, And they typically happened between four
to one times a year. And he goes for people
to be getting this daily, and I go, they're not
giving it daily. It's once and and performance on. It's
almost always occurr in companies when new people are put
over that department proud like you know this in micros.
It was so funny watching that because I was like, yeah,
so guys, now you know what corporate America is like.
That's what happens when a new director comes in. Who
are you and what do you do? Actulutely?
Speaker 1: Actually, yes, excellent way to put it. There's also this,
if you're a smart manager, you manage up so yes.
As a manager of people, I would send notes to
my boss saying, hey, hope the trip to New York
went well. Let me know if I can provide in
a cover when you come back. Anything you need the
kind of a busy week. Here's some bullets and some
things the team got done. The team's been fantastic. They've
been really killing it. And quick read. And I'd always
start at an email like that, like this is about
a three minute read. You're busy, boss, And when you
provide information on what you're doing without being asked, guess
what the next performance review is? Like, it's far far
better because you could actually dig into ways the boss
can help you. It's not just to check on what
you're doing. How can I help?
Speaker 3: Yeah, and there's a direct correlation here. And here's what
irritates me so much. And regardless again of political affiliation,
this is what people in this country need to understand. Okay,
we do performance audits once a week. Okay, so we
track how many leads, how many people have called in
that our guys have contacted, have they done the right
We're doing it once a week. Do you know why?
Because I can't afford not to. I can't that money
I'm spending on that marketing and all these other things.
It's too expensive. I've got to know where my dollars
are going. What you are seeing is the disdain for
the US taxpayer and the complete detachment from any sense
of fiduciary responsibility whatsoever, and to sit there and say
a performance. I mean again, if we could get outside
the petty politics that are just just just completely off
course and just over the top right now, everybody should
sit back and go. We should all be concerned that
that is a pervasive attitude in our federal government. And
no wonder we're thirty seven trillion in debt. Forget about
this piece of accounting or where the money went. If
you want to know why we're thirty seven trillion in debt,
listen to what that woman.
Speaker 1: Has to say and how she says it. She's emotionally
impacted by this, right, and that's been another thing that
it's talking about. We talked about this last week about
the culture change in this. So John Stewart's writers did
something super clever, and this is getting a huge traffic
on YouTube because John Stewart he's gone doze and he
gets out his little calculator, the old kind with a
piece of paper that comes out for what those things
are called. We see use those And I want to
go through this with you, Zach, because we'll just go
through item by item on this. We'll do this in
just a second There's a company called babt Mesias I
work with. They're constantly doing just what Zach talked about
are to this day. One of the owners Wade, he's
one of the co founders. He manns the customer service lines.
To this day, he goes and spends about a day
or two a month and he's taking phone calls from customers.
He does this because he hears things that don't bubble
up sometimes through customer service reviews. It's his way of
having contact with the customer. These guys care so much
about what they do. Part of this is because they
themselves use the product. They believe so much in it
that Wade is giving his newborn baby. Now, he used
to dilutes these you make sure it's appropriate dosages for
the baby. But he's giving his baby mass simes. Why
because it is the amino acids in our bodies that
build muscle, not protein. You break the proteins down, the
resulting amino acids build muscle. He wants his kid to
get the most out of the breast milk he has
from his wife. That's hoo much they believe in the product.
You know your body. You might be short on sleep,
you might have lack of regularity, you might be constantly anxious.
From their own labs. They have products for all of this,
and they've been in these businesses for decades. Go to
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just get a better deal. You don't run out of product,
you get exclusive discounts. They're constantly looking to them prove
so Zach, here's what John Sewartt did saying that he
could save people money. He's talking here about largely about
gas and oil companies. Let's watch this.
Speaker 4: I'm starting to think that we as a country don't
understand where the real waste, fraud and abuse in our
system really is. Oh, how about we just take three
billion dollars in subsidies we give to oil and gas
companies that already turned billions in profits.
Speaker 3: How long did that take? Oh?
Speaker 4: Wait, how have we just closed down the carried interest
loopoole on hedge funds?
Speaker 3: That's one point three billion dollars a year.
Speaker 4: Oh how about we stopped the two trillion dollars We've
given the defense contractors to build a fighter.
Speaker 3: Jet that blows.
Speaker 4: When everybody knows the next war is going to be
fought with drones and blockchain whatever that is. I can't
believe it's silk.
Speaker 1: Pretty joke at the just.
Speaker 3: Billions of dollars in a lie.
Speaker 1: Even said, you're so good, John Stewart. So let's recap
eleven billion dollars are going to save removing subsidies for
big oil companies, subsidies, one point three billion for a
hedge fund carried interest loophole, and two trillion in funding
on a jet. He did it. That's the big doge man.
So let's start at the very top with these oil companies.
Speaker 2: Zach.
Speaker 1: We got to just shut these oil companies down and
save us all money.
Speaker 3: Yeah, so let's let's let's get back to reality of
brass taxers. Okay, So, until the miracle of cold fusion
is granted upon us mere mortals, we have to deal
with the realities of sewling an economy. And two, there
is a certain amount of subsidy. Now listen, do I
think those subsidies need to be revisited? Absolutely? Should they
be just? I think they should be examined, just like
we're looking at dose. I think now is the time
to look at everything inefficiency. The one thing I will
say is that I I am open to the idea
of certain oils being subsidized based on something John Stewart
has absolutely no clue about, which is the refining process
and the mix of products. Okay, so we must have
the domestic capability to create all of the fuel that
we need here in the continental United States. Now, I Todd,
I am not sure on this. I probably ask Chase,
my head of research. He'll probably know it right off
the top of his head because he's an oil nut.
But I don't know this to be the case. But
my suspicion is is that some of those subsidies exist
because we need certain mixes of oils and geographical locations
in this country where the extraction of them is not
commercially viable due to cost. If that is not the case,
then we should get rid of them. But if that
is the case, which I strongly suspect, and as much
as I hate to do that, it really is a
national security situation concern. And like I said, even the crew,
the heavy crew that we get from Canada that's really
good at mixing with our stuff. Even that shouldn't qualify, right,
we need to have total domestic capability, so we're completely
you know, energy independent. And that's just I mean to
say anything to say otherwise it's just being silly.
Speaker 1: No, it is. And then the energy drives everything in
the economy is driven by energy, everything, food, water, movement
of that, movement of people. Secondly, there is this reality
that everybody buys energy. And this is the piece that
John Sort does not seem to get this. When we
take a tiny bit of subsidy three billion dollars that's
rounding air money, right, yeah, in relation to our actual
three hundred trillion dollar debts if you look at the
unfunded liabilities, and it produces a return for us and
means that people Junsart's all concerned about poor people, they
can afford energy because we're diversifying this letting everybody buys energy.
When you buy an apple, you just bought energy.
Speaker 2: Right.
Speaker 3: Here's the other thing that frustrates me a little bit
on this topic. Right, all we could feed poor people. Okay,
I do not say this to be self righteous at all,
but a passion of my wife and a commitment, and honestly,
I think it's a responsibility that I don't really think
we've got much of a choice with that. We try
to spend as much time and money as we can
justify on giving back and helping out charities and helping
out those and all that kind of stuff. It I
will kind of look, again, I don't want to be judgmental,
but when I hear John Stewart say that, I actually
there's a lot of respect about that guy. The way
he stood up for firefighters, you know, from nine to
eleven and things like that, I kind of get the
feeling of, like the Lady doth protests too much, meaning
if you're active and like, one of the things that's
the most frustrating about charity work is that you find
out there isn't a shortage of money and resources, right,
there's a short of a proper incentives, right, and there's
a shortage of people in organizations in it that are
truly altruistic and in it for the right reasons.
Speaker 1: Yeah. Right, And John Poke spoke about property. Let's play
this clip in a second because John Swart spoke about poverty.
Because I want to carry on your thoughts there, because
I've actually been to dinners at least one with you
and your wife at charity dinner. I know this is
very serious for you. It is for me as well.
One thing, one quick message on this. I got a
note from a gentleman about Native Path Antarctic krill, and
he asked me a very very simple question, says Tim
from Dallas. Dear Todd, Is this stuff made in America?
Speaker 3: Okay?
Speaker 1: Great question. This comes from the Antarctic coast, seventy three
miles off the Antarctic coast, and the manufacturing process, all
the delivery, all of that is in America. Okay. Is
it made in America? Is it process here? I'm going
to check on that. I honestly don't know, but I'm
going to check out it. But I know this. It
comes from waters off the Antarctic coast, which should matter
to you. It's the purest, cleanest waters in the world
because there's no no chemical production around there, et cetera.
It's confirmed to me this, and also know this, and
I'll check on if it's actually made in America. Native
Path krill is the only thing I've ever taken that
made it possible for me to get off iyberprofen and
the other day I told you I tweaked my shoulder,
and man, am I freaked out because you know that's
the first left one to the first one I had
surgery in. Someone's made fun of me the other day
another email, or hey, rub some native pathic curll on it.
I'm not rubbing it on it. I tripled down and yep,
this morning my arm was a little crunchy and I
tripled down. I'm looking here now there's no movement, there's
no clicking, there's no anything, and I'm six native path
antartic curls into the day. This stuff is so solid,
So go get it. Go to get curl dot com
slash todd, toss the iberprofin. Boost your metabolism, blush your budflow,
get rid of this swollen feeling in your legs and
joint pain. It's get curll dot com slash todd Zach.
Here's what John Stewart said about poverty.
Speaker 3: I want doze to work. I want better efficiencies.
Speaker 4: I want to get rid of the alphabet agencies that
don't do enough make the pentagon pass an audit. But
we are dozing in the wrong place. If we want
to really change the system. Somebody's like Walmart McDonald's make
billions of dollars in taxpayer subsidized profits, yet many of
their hardworking employees need taxpayer subsidized public assistance. Airlines get
billions in bailouts that they use in stock buybacks and bonuses.
But if you're on food assistance, you're not allowed to
buy hot food with it, because apparently heated andres off
for winners.
Speaker 1: That's a good line, heated andres and for winners. So
he's making this case that apparently in his mind, Walmart
and McDonald's also have tax subsidies. We know airlines got bailouts.
He's all right on that stuff, but this equals now
a way to get out of poverty. He didn't connect
those dots to me very well that somehow someone getting
hot snap meals takes people out of poverty. You are
in the philanthropy business. In this you started to say,
it's not that there's not enough resources, it's that the
incentives are wrong. So what are the incentives?
Speaker 3: Well, so, like, for instance, one of the big misconceptions
that people are starving out there, if people are starving
in this country, or if children are starving in this country.
It's almost a direct correlation to mental illness or drug
use because there's plenty of food available, right, something is
inhibiting their ability to access that good. So my point
in saying that is not that we shouldn't care. Obviously
I care very deeply. My point in saying that is
that you don't have a money problem, right, you have
a plenty of funding is going to that. So the
incentive are The five oh one C three system in
this country is widely abused, and one of the biggest
abusers of that system is what would be we'd refer
to to Christian Church and the way they work the
tax rite offs and the way that they there's there
are it is it is not widely understood how inefficiently
or incompletely that world is governed.
Speaker 1: So I explain this to me in terms of the church.
Speaker 3: So like, for instance, there's there's certain tax benefits that
are granted to people that are ordained ministers under the
under the rell of a five oh one C three
And what you will see these guys do typically, Now
I've got three pastors on staff or three x pastors
on staff, and so they've kind of walked me through this.
What you'll see some of these guys do, especially if
these megachurches, is they will have a very modest income,
but they'll have an enormous house allowance because the house
allowance is not considered income, right, that's it's a tax
right off. So they'll have a house allowance of let's
say twenty grand a month, right, twenty five grand a
month going to their mortgage. That is, they do not
have to pay income taxes on that. So you'll see
these pastors with four to six million dollar homes that
the church is paying at twenty five thousand dollars a
month mortgage on, and that's their housings. So abusive, Yeah,
it is, it is, And so that's it. Are they
the only ones abusing it? Heck no, And I'm not.
I'm not insinuating that, right. I tied to I tied
to Christian churches as well. So, but but again, it's
just one of these things. Is like so many other
parts of the world where once you get involved in it,
you realize that there is not a lack of funding.
This country is choking on bureaucracy and regulation and people
are starving due to it. Yeah, and in a weird way,
that's almost more disconcerting because it's a harder issue to fix, right.
Speaker 1: I think there should be. If we're going to give
charity status, is someone a five O one C three.
How about we do a little dozing here. Let me
give you it. For example, I think charity should do
good things. Okay, so doze them. What's some things you think?
Speaker 3: Okay?
Speaker 1: Let's take, for instance, where now you live in a
far better place. Now I won't disclose where, but it's
it's a far more sane place where you're living versus
where you were. It's still in the separate country, but
I know that area. It's a lot of god fearing,
wonderful people where you're at, but in the separate country
is settled. There are five one C three's who for instance,
you your taxpayer money have underwritten this. They produce, They
provide a place for men to go manually gratify one
another and to watch other men gratify one another manually.
And I would like to see, in terms of your
five O one C three status, what were the material
benefits of this that couldn't be gotten by dude saying
come to my house and I'll do that to you
and watch you do it?
Speaker 3: Yeah, I have you Have you talked about that on
the show. I mean, obviously it's a it's a pretty
loaded subject, but so.
Speaker 1: To speak, yes, I have, and it's it's you said it,
Yes I am. But that came to an arts commission,
and let's expand this to something more accessible. And by
the way, that is disgusting. And by the way, men
will do that for free. Just so everyone's clear and
they don't need substc that. Let's go to the the
handing out of needles, right, show us, show us the
good that if we're going to doze this, show us
how giving people needles amplished the goal of getting people
off drugs, And they'll say, that's not our goal. Harm
reduction is our goal.
Speaker 3: Do you know what I didn't notice? And then I would.
I did an exhaustive review of all a lot of
this stuff, including that thing on a on a different
show that I was getting interviewed.
Speaker 1: On about the mandal thing with the dudes.
Speaker 3: Yeah, so we kind of went through that data, the
dog's work they were doing here in the separate in
the separate country of Washington State. And you know what
I didn't see, Todd, I didn't see a single donation
of any size given to any Christian church organization, not one,
not one now here where where I'm sitting there looking
at is I'm wondering there there have to be some
violations of laws as it pertains to taxpayer funds, meaning
how do you fund that? Right? That is to me,
that's a political organization, or the eight and a half
million dollars that you gave to the Washington State teachers Union?
Speaker 2: Right?
Speaker 3: He why is the state giving money to the teachers union?
They're self funded, right, They're they're paid for by their members.
They also are disproportionate, like to the tune of eighty
five to ninety percent Democratic voters. How is that? Not
is the government giving a set to anybody Republican? Like
the teachers union in Washington State is normal Democratic party?
How is that legal?
Speaker 1: Teachers union nationally is also in art of the Democrat Party.
If we're going to doze things and take John Stuart on,
let's go doge all these nonprofits that these are, these
companies are like unions, get to call themselves nonprofit? You
know what I'd say this, if you're in a nonprofit,
I would.
Speaker 3: Be okay on a cap on the CEO salary one
hundred one hundred percent. How isn't Let's think about this concept, right,
we have a nonprofit where CEO is making three quarters
of million dollars. How is that? What is going on here?
It's a nonprofit?
Speaker 1: Right, that should mean non personal profit that you should have.
Let's say you're a CEO. You should be allowed to
have as a CEO of at nonprofits three times of
prevailing wage of your state. And I know exactly what
people are gonna say, Well, then you'll never get the
best in the brightest CEOs. You have to pay for that. Yeah,
you know you'll get you get the people who will say,
you know what, I could go run a great, big company,
but that's not where my heart is. I want to
run nonprofits.
Speaker 3: And then and then some of them will sit there
and go in on top of that, here's what we're
gonna do. I'm gonna donate that salary right back in right.
Speaker 1: There's plenty of people who do that.
Speaker 3: Yeah, one hundred percent. I mean that's what I would
do if somebody, if somebody, well, first of all, I couldn't.
I couldn't do it right now. But let's say I
was supposed to run a charity organize. I'm not going
to take a salary, right, Like, there's plenty of people. Yeah, yeah,
there's no Yeah, there's no way.
Speaker 1: But yeah, it's just I was just sitting there thinking
about the house I could down if I turned the
Todd Herman Show into a ministry.
Speaker 3: Hey, I'm not kidding her out. I'm not kidding out.
Speaker 1: No, no, no, I'm not gonna do no, No.
Speaker 3: I would never do that. But I mean you sit
there and you're like, this is crazy. That's a crazy loophole.
Speaker 1: Yeah, there's and there's this other loophole that he talked about, Stuart,
and we'll get back that. I do need to touch
on what you said about the churches not getting funding.
There's something you should know about that. And maybe haven't
heard this on my show, but I'll share this with
you in a second. As I'm talking to Zach and
I'm going back through this week of interesting things in
regards to my own health, I really think God tapped
me in the shoulder and said, hey, bud Son, you
are once again screwing your time up in the gym,
and you're once again getting all up in the flesh
and so I'm gonna tweak your shoulder for you, and
I'm it reminds you I can take this away from
you anytime. I'll prune this from you. So get it together.
And when I felt that, I can't tell you how
much comfort I have, and knowing that it's in this
case it's not terrible, it can probably self feel. I
can probably go get a platelet rich bloods infusion PERP.
It's called I can probably get that in the States.
But I can't tell you how good I feel knowing
that if my tendon is frame, I am not going
to get surgery. I know it's not bad enough that
I know I could go down to renew healthcare in Mexico.
I know in five minutes that doctor Chavez, a Harvard
certified surgeon, can put the stem cells right into my shoulder.
I know the process so well. I know that that
can get there and grow that tendon back in maybe
a week if it's fred. How do I know this
Because my friend Boris went from being a world class
master level swimmer, so a guy who could not swim,
and they were able to rescue his shoulder and he
went back swimming in a couple of weeks. So my
condition is so minor. I'm thinking in this audience there
are people who've been through car accidents and their walking
has never been the same, And you just don't want
to have surgery. And you're probably smart because those surgeries
sometimes don't turn out well. Have the comfort I have,
and simply find that if Renew can help you, go
to renew got Healthcare It's r E n ue dot Healthcare,
and tell them you're part of the Todd Herman Show family.
If you guys are going down there, let me know
because I want to go join you. There are and
you E dot Healthcare.
Speaker 3: So little now. I have no affiliation with this company.
I have not been down to Renew. I just did
a portfolio review this morning of a client that came
to us via your podcast. The husband has had long
term arthritis. In his risks, nothing is work worked. They
went down to PV visited those guys a couple months
ago and he said night and day difference in his risks.
Praise God, yep, yep.
Speaker 1: And I know. And Steve, the managing director, told me
about these guys and we're going to try to get
him on the show. And so they're with you too.
Speaker 3: Yes, yes, yes, this.
Speaker 1: Dude, I'm telling you, you've got to come down to
Portavado with me. You've got to go meet these guys
and hang out there, and please bring your wife and
we'll go down my other time. Okay, So we're going
to make that happen.
Speaker 3: We should make it like we should make it like
an event. I can do some shows from down there.
Speaker 1: We did this last year, but we didn't give enough
ourself enough headtime. So we had a bunch of people
who got line to go, but they didn't get their scheatment.
So let's pick a date and let's make that happen.
You and me, we do shows, we answer questions.
Speaker 3: Done, yeah goo, work could be a sponsor.
Speaker 1: Okay, we're in. And then we'll each buy a house
down and there we'll turn it into a ministry.
Speaker 3: Let's do it.
Speaker 1: So let me share this with you. I don't know
if you saw this out of the DOGE homework that
they are the data that they got. Did you know
that there are some almost fifty churches in America that
get one percent of their funding from USAID. And guess
what kind of churches? They are assemblies of God, but
they're the churches who say this is an example of
a sermon. Eve made the best decision for women when
she chose to eat from the tree of the knowledge
of good and evil. It brought her so close to God.
We women after Eve live in the benefit of her
decision for bodily autonomy because it brings us closer to God.
This is I am paraphrasing, but I'm telling you that's
an actual sermon from a USAID funded church getting one
hundred percent of its funding from USAID. How utterly corrupt
is that that we're setting up fake Christian churches and
we accuse the Chinese Commist Party do it?
Speaker 3: Yeah, And I you know, one of the things that
I think of, and this is the college or this
is the football coach you mean coming out, So forgive me.
But I immediately think to myself, like, how do we
get people to be aware of this, because, like I said,
these are non political issues? These are these are how
are these not direct violations of separation of church and state?
Right like right, the same justification they use to basically
atheists our entire culture they're now violating to promote their
own dribble. And it's not even pretending to not be
a religion right right, So by definition, what you are
saying is that whether there's a violation of church and
state is doctrine dependent, which is the violation of church
and state, right, Zach USA.
Speaker 1: The independent Agency.
Speaker 3: Well, as long as they're spending PAXs payer money, they
are not and they should be helped. They should absolutely
be held accountable. And this is so it's people need
to wake up. And where I was going to come
into where the football coach part of it comes. I
think that we all need to look for these opportunities
in our lives to share these kinds of things in
a non political way, in an effort to enlighten people
around us that we think are reasonable people that just
don't know this stuff, because really, you know, you and
I talk about this all the time. These are not
political issues. We're all getting fleeced, we're all getting take
advantage of it. And you can make the argument that
the average voter on the left is getting built harder
than anybody else.
Speaker 1: I agree. I told you so. There's one other thing
I wanted to get and it's related to the stock
that people can't stop talking about. It's Navidia and it
has to do with deep seek and I saw that
you posted this in your Twitter channel. So moving away
a little bit from what we've been talking about in
terms of doge, because we need to touch on this,
because you've told me there's a lot of people who
are going to get mightily, mightily taken on this. We'll
do this is Zach Abraham, quick, quick, quick thing. You
guys have made a decision here that has launched a
company that when we first got started, we were lucky
to be able to employ Allen at Alan Soaps. John
he runs it. It's not a wee thing, it's it's
John running it. But the mission of this company has
so resonated with you guys that now it's Ian who
works there. He's also affected by autism, not in the
same way, or I don't think as dramatically as Alan,
who is nonverbal and he's been through these eighteen operations.
That's not autism, but it's other structure health issues. Amy
works there. Now that's three people from one. Can I
ask you to push them over the top today. I mean,
I know that sounds like a pledge.
Speaker 3: It's not.
Speaker 1: Because the soap is made in America. It's all natural,
it's very very unique fragrances, some of them fragrance free.
In other words, it's better than the soap that the
big companies sell that hate you can. I just ask
you to push them at the top by subscribing. It's
a simple change. That way, you never run out of soap,
because you and I both know you're like, oh my gosh,
we ran out of Allen's. Now I have to go
down to the China mart and buy the China soap.
So can you do that because you don't want the
wu Wine soap because I'm pretty sure most of that
soap is made move in and with bats and such,
and there's probably bat juice in it. I mean there
might be bat blood. And I heard someone told me
once there was so go to Alan Soaps dot com,
Sash Todd avoid the bat juice and bat blood that
might be in that soap, because someone told me once
Alan Soaps no batjuice dot com. So Zach, you posted
this on Twitter. You respond to this guy right the
day Deep Seek R one comes out. That's the Chinese
AI of Chinese Comics party. Bus Ai saw six hundred
billion dollar marker cap shave from Nvidia and US High
Tech stocks lost one trillion combined. I feel a doctor
Evil moment coming on. Was this bad or good? Arguments
for bad? If you were long in Vidia, it was
the biggest market cap loss for any stock in the
history of the United States. Argument for good, the US
band exports of Nvidia H one hundred ships to China,
so Deepseak had to innovate it open source and is
using chips half as powerful as H one hundred was
able was to be able to trade its AI with
ninety seven percent less cost than Google Ultra, So the
cost of AI will get cheaper going forward, if I'm
not mistaken. A guy named Zach Abraham said that this
was bound to happen, that there was going to be
a dramatic entrant at some points, and it was going
to affect the sock price. So are you going to
not point at people out in the viewing of listening
us and say, yo, listen to the zachs. The Zax
is never wrong.
Speaker 2: No.
Speaker 3: What I would ask people to do is use that
to counterbalance against some of the things I've gotten wrong.
Speaker 1: So, uh, dollar cost averaging, prediction cost averaging.
Speaker 3: Yeah, I So, so you know, I think that that
was a good call. But the reason we made that
call was just because you're kind of addressing a reality
of economics, right, meaning when you have a when you
have a price gap that wide between your product and
the next competitor, give the free market time and they're
going to figure out an arbitrage there, right, They're they're
they're usually going to poke a hole. Be in Vidia thing.
The way I would look if people want to know
what's going to happen to day, my suspicion is this.
My suspicion is in video they announce after the close today.
My suspicion is they're going to put up are a
quarter that's probably better than anticipated, but the real that's
not gonna that's not going to determine the trajectory of
the stock. What's going to determine the the trajectory of
the stock is going to be their forward guidance looking
out into twenty six to twenty twenty six and beyond,
and that's where we see an issue. So, for instance,
I talked to some contacts of mine at Microsoft, and
this is not inside information. There was a news release
that came out. The news release was a little what
was more muted than the story I got. But the
story I got was that for whatever reason, and I'm
talking to people that are absolutely in a position to
know that Microsoft is really scaling back their plans spend
on AI data centers in twenty six and twenty seven.
Now remember that's right now, they could potentially ramp those
back up, right, but they're scaling them back. Now. None
of those people knew exactly why that was. Okay, but
when we're looking, I'm just saying, when we're getting that
news from Microsoft, now, remember Microsoft is at the absolute
epicenter of this card owners and chat GPT, right, I
find it really hard to believe that this is not
this does not have something to do with Deep seek
interesting deep seak drops. In three weeks later, this news
is coming out that Microsoft is drastically dialing back their
planned investments for you know what I mean? So now
could they come back online? Yes? Here, here's my big issue. Okay.
People are enthralled within video for what it's done, and
I get it, Okay, But what I am looking at
them and saying, listen, here's the promise I'm gonna make you,
and Vidia ain't doing that again. Okay, Now, am I
going to say that it's gonna plummet.
Speaker 2: No.
Speaker 3: Am I going to say that it can't maintain this
price level. No, I mean it would be It would
be kind of like a first in the history of
investments if it was able to maintain this kind of
price level. But that's not possible. Here's the point everybody
should learn. While we're sitting there watching this company that's
got a three and a half trillion dollar market cap
and trading it thirty times revenue, I'm looking around the
world and seeing a situation where in the history of
financial markets, US markets have never been more overvalued as
it relates to the rest of the world, and that
overvalue has never been concentrated in as few of as
few of stocks. Okay, does that mean those stocks have
to get wrecked?
Speaker 2: No.
Speaker 3: What it does mean to me is, hey, investors here
in the US are trying to figure out whether a
three and a half trillion dollar company trading at sixty
times earnings and thirty times revenue is worth that price. Meanwhile,
I'm looking at companies that are growing at twenty to
thirty percent internationally, that have Christine Fortress balance sheets, that
are trading at one sixth the valuation of the overall
stock market where literally people are just giving money away, okay,
and it is never And so when you look over
the last eighteen years, we have a chart that I
would love to share on the show, and you know
what we'll do to try to remember to do this
next week. Yeah, So you look at the rest of
the world stock market in relation to the SMP five
hundred since the Greek So this week alone, to put
it in perspective, we've got multiple international markets breaking above
their two thousand and seven high for the first time. Okay,
that's that's how uninvested the rest of the world has been. Wow, Okay,
there is so little money in the rest of the
world that there's a lot of stuff that we can't
even get into because it is so thinly traded. We
don't know how we'll ever get out. And that is
a direct repercussion of how little money, all of the
money in the world is sucked into here. And so
you look at this chart for fifteen years where you've
just seen US markets just dominate the rest of the world,
and there's this clear fifteen year trend line. Well, guess
what's happened in the last two months Right above the
trend line, and so we're sitting there going, guys, I
think the turn is here, regardless of whether the turn
is here or not. What I will also say, and
this has been backed up by several other smart investors
that have better track records than I do, is that
on a vat I don't care what happens over the
next one or two years. Valuations right now are insane
in terms of what you can get elsewhere. And uh yeah,
it's it's That's my big lesson to investors. And look,
I in Video is a great company that makes great product.
Investing in this stuff is too this this Well, you
look at Apple right now. Apple could get smacked by
fifty percent and still be on the expensive side at
its own standards. Costco is trading it three times the
valuation of Google. Okay, you can't make this stuff up.
I'm not saying they're bad companies. They're incredible companies. But
there's a lot of these things are trading at prices
that make no sense. Meanwhile, I look around the world
and find companies that are traded that are growing three
times as fast and creating it like one seventh the
multiple it's it got it I've never been more excited
about that stuff.
Speaker 1: I love it. And just as we were wrapping up
the show, getting ready to send you on your way,
I know you've a busy day. I just found this.
This just came up, Ozzie seven. Jim Kramer, you should
own bitcoin. Bitcoin is a great thing to have in
your portfolio. Amazing inverse Kramer, there is this stuff.
Speaker 3: He's good, He's consistent off nothing else man.
Speaker 1: And if he's back and shortened himself, what if he's
shorten his own predictions.
Speaker 3: He's not. He's too proud. He's he believed that. And
the other one he's been out there pumping lately is
Costco saying you got to own Costco. Costco. I love
Costco and it's not their fault. Their stocks irrationally priced.
Costco is more expensive today than it has ever been
in the history of the company, including back when it
was growing at fifty percent a year.
Speaker 1: Insane. Thank you for coming on, my brother. We are
a go. We're just going to nail the dates part
of art to Mexico. You me, maybe we can finally
get Crukshank to come down to some of the other
people that knows from the show and we'll spend some time.
We're just gonna nail the date. God bless you and yours.
Zach appreciate you coming on Wise counsel Day. Thank you.
Thanks as always, this is a Todd Herman show. Please
go out and be well, be strong, be kind, and
Sti't make the effort. I mean that's weak. Just walk
in the Latter Christ.