Speaker 1: A lot to talk about with my friend and brother,
chief investment Officer Bowart, couple of management, Zach Abraham. We
know about the shooting on Friday of the United Healthcare CEO.
Speaker 2: He and I recording in advance.
Speaker 1: But I had something pop into my mind the second
I saw this, and it has to do with the
only thing that's ever really concerned Zach, when he did
an analysis on a company that got him to feel
a little bit nervous.
Speaker 2: We'll talk about that.
Speaker 1: We'll also talk about this comeback of sanity within companies
like Walmart who are dumping the Human Rights Campaign, which
is this horrible group of two known pedophiles who have
helped trans kids across the country, and then in manufacturing
survey shows some optimism. And we'll talk to Zach about
the economy. I mean, that's something he knows far better
than any of us here. We'll do this with the
help of our YouTube channel YouTube dot com slash at
the Todd Herman Show, and of course, to the good
grace of God Almighty.
Speaker 3: But Todd Herman Show is one percent disapproved by big pharma,
technocorrats and and sware from the High Mountains of Free America.
Here's the Emerald City EXI Todd Herman.
Speaker 1: Today is the day the Lord has made, and these
are the times to which God has decided we shall live.
And you probably saw it. I saw it, the world
saw it. The assassination. It appears of the United Healthcare
CEO on the streets.
Speaker 2: Of New York.
Speaker 1: And I instantly wanted to talk to someone who's not
an expert on assassinations but on corporate greed. And this
seemed very very early similar to me to something that
happened with another company. Let's welcome to the show, Zach Abraham,
Chief investment Officer, Borlock Capital Management.
Speaker 2: Zach, welcome in, good to be here, Thanks for having me.
Speaker 1: So we were just talking about this thing that happens
on a Wednesday in New York. You watched the video
and I watched the video. Neither of us are experts
on how shootings at this go down. But I want
to get to some things that's reading in some military
blogs and some gun blogs.
Speaker 2: But you looked at this, what'd you see?
Speaker 4: Well?
Speaker 5: I mean, at first glance, it looked like a kid,
you know, that hopped off his bike after school, you know,
with the backpack on everything like that.
Speaker 4: And I'll tell you what. Then he whips out the gun.
Speaker 5: First thing I noticed was a suppressor on the end
of it, which is not what a kid hopping off
his bike at the end of school is going to do.
You've got some other analysis that you'll walk through that
I think adds to that perspective. And then the just
the very calm, calculated, cool way that he operated.
Speaker 4: Again.
Speaker 5: I you know, I'm not an expert in you know,
secret agents or clandestine operations, but I would be surprised
if that guy had never done something like that before, right,
just just I mean it was it was eerily cool.
It almost looked like he was sneaking up behind his
body he shooting him with a paint gun, right.
Speaker 2: You know what I mean, that's the part I noticed.
Speaker 1: Like he So he shoots the CEO the first time.
The CEO, you know, stumbles up against the wall and
then goes down. And the shooter continues to calmly walk forward,
and he's got his eyes on the prize.
Speaker 2: The whole time.
Speaker 1: This is as Brian Thompson and this the shooter's got
his eyes on the price. He steps forward, more shots,
more shots, and you see him at one point look
at the guy and it looked like he's saying, Okay,
do I need a safety shot? Or is this guy gone?
Speaker 2: That? Is he dead? I mean, that was a thorough job.
There was something about the gun.
Speaker 1: I didn't notice this, but there's some military blogs and
gun blogs that follow noticed that he was using some
rounds that they contender subsonic therefore, and they're noticing that
because it didn't have enough power to cycle the gun
automatically to bring the slide back automatically, so he had
to hand cycle the gun. And a couple of different
guys rode in and said, sure, it to be less noticeable,
to have less sound come up rounds.
Speaker 5: Yeah, And what was consistent about it too, is the
way that he was hand cycling it, Like the consistency
of it and the quickness of it from meaning you know,
if it wasn't a subsonic round and if you just
had some bad ammal or whatever and it was getting
hung up, it's harder to dislodge than that in that case,
right where subsonic rounds just doesn't it doesn't cycle it fully,
so you don't get you don't get hung up right
like you don't get one, you know, where you get
one bullet halfway in, you know, and one bullet halfway out.
Speaker 4: You got to do well.
Speaker 5: Subsonic rounds just don't kick the hammer back far enough
or the slide back far enough to grab the next bullet,
so you just have to hand cycle it.
Speaker 4: Right. So that made perfect sense when.
Speaker 5: You said it, which added to what might what I
was saying, which was, at first glance, kid looks like
it looks like a kid that jumped off a bike.
Then second glance, you watch the cool way operates, the
fact that there's a suppressor on the end of it,
and then the fact that he's using subsonic ammunition. You know, right,
it's sounding less and less like a like a teenage
kid hopping off a bike.
Speaker 3: Right.
Speaker 1: And he didn't look surprised that the gun wasn't autocycling.
It was like, okay, so whatever, I just you know,
hand cycle. And again you and I don't know. And
again we're recording this in advance, so it might have
come out that, hey, maybe it's just an amateur that
got lucky.
Speaker 2: I hate to say this.
Speaker 1: As watching this, I saw his wife said that he'd
received some threats, maybe lack of coverage, And then she'd said, look,
I'm trying to comfort my kids right now, I'd have
time to be really thoughtful on this. I wanted to
pray for her or her family. I hope this guy
knew the Lord. But Zach, I got to tell you immediately,
I saw people saying this is unprecedented, This hasn't happened
since World War Two. A corporate executive being assassinate. And
I go, wait a minute, not a corporate executive. But
I'm sorry, I still do not believe the story on
the two Boeing whistleblower deaths, the one suicide who he
was just getting ready to receive a payoff for being
a whistleblower, and the other guy with this sudden dying
of this this infection. And I just thought of you
on this. I mean, did you think back to Boeing
when you saw this hit?
Speaker 4: Yeah, I mean a little bit.
Speaker 5: I mean I think I think that you're kind of
at a place in society, unfortunately, where I think it's
more likely for a CEO of one of these companies
to get taken out than it would be.
Speaker 4: You know, somebody like me.
Speaker 5: I will say this though, that when you saw the
news come out about the whistle blowers from Boeing.
Speaker 4: You know, again, I hate to jump to conclusions.
Speaker 5: People know my thoughts on Boeing, accusing Boeing of the
things that I did, versus accusing them of purposely taking
out witnesses or two different things.
Speaker 4: But yeah, I will not lie to you.
Speaker 5: When I saw the news about the Boeing whistle blowers
get taken out, I mean that sent chills for my body,
you know, because you.
Speaker 4: Just went holy.
Speaker 5: You know, hopefully there's a national explanation for this. Again,
you feel horrible for the family and the people that
are lost. But well, and then there's some other ones
you may know too. And I don't want to speak
out of turn Todd, but weren't there a couple of
folks that were whistleblowers against some of the big farmer
companies that got taken out?
Speaker 2: Yep, yep.
Speaker 1: And that stuff never gets the focus it deserves.
Speaker 2: But here's the focus for me.
Speaker 1: Zach and Zach Airhem's with the chief investments for Board
Capital Management, Know your Risk Grader dot com where you
can find them.
Speaker 2: We usually talked finance.
Speaker 1: This is related to finance, So Zach is that United
Healthcare and big companies I see an observable look of
lack of morality. And then with Boeing like which you uncovered, Zach,
when you guys were just simply analyzing stock that you
had employees coming out and saying, yeah, these airplanes might
crash because man, are they cutting significant corners.
Speaker 2: That's lack of morality.
Speaker 1: Yeah, they're putting lipstick on the pigs of their facilities
where they're not keeping the facilities up, and those should
be kind of kept up. That when you see an
utter lack of morality DEI, the pushing of all the
perverse agendas on kids coming out of corporate boardrooms, why
would we not think that eventually it ends up with hey,
we should take this guy out, right, I mean, where
nothing is forbidden, all is allowed.
Speaker 5: Well, I mean, and look it, there's this veneer I
think that we all have right and it's a veneer
that you can see evident every time one of us
steps on a plane. There is this societal contract that
the vast majority of us adhere to, and we assume
that everybody else is adhering to that a societal contract
as well. What you will be shocked by and what
I think we see evidence of every single day on
the news is an increasing percentage of people are not
adhering to that societal contract right, and the guys at
Boeing are a perfect example of that, where us, as
rational people go, why would you ever kill the golden goose?
Because these people are morally bankrupt, And one of the
reasons they're more bankrupt is it's a reflection of culture.
You also pull god and morality out of schools in
the education system, and then oh shocker, you get these
people who are sociopaths at the top. Well, of course
you do right, because you haven't emphasized or mandated morality
or character or you know, any of these things. You know,
civic responsibility. None of this has mattered culturally. What are
we telling kids do whatever feels right? Well, guess what,
making my bonus at the end of the year and
getting five million dollars worth of stock awards.
Speaker 4: That feels right to me?
Speaker 5: Right, So I'm gonna do it right, And and you know,
here you go and we see it. We see it
like in every segment of the culture where you go, look, man,
I mean, you can you can say whatever you want.
You can be agnostic, you can be an atheist, you
whoever you want. I will just tell you history is
replete with stories. When we pull out the genesis or
the or the you know, the seeds of morality out
of a culture. There's never been a scenario in which
you had a good outcome and you just rotted from
the head down, you know.
Speaker 2: I mean, it's just right.
Speaker 1: And if you take this like let's take we're talking
about boweling or talking about United health Care some of
these big companies. I don't want to indict everybody, because
there's some big companies that have got their heads together
and their souls together with good leadership, that does happen.
But when morality is simply whatever you need to signal
to be on the right side of demographics, on the
right side of con artists like the Human Rights Campaign
that's you know, pushed the transing chemical surgical mutilation of
kids and they had their Human Rights Index. Whatever you
need to be on the right side of that is
the mowdy you communicate. This comes down to like a
huge boweing customer. Last Airlines used to be my airliner choice.
I used to love getting on a Last Airlines because
they would give you your meal tray would come out
and it would have it quote from the Bible on it,
right there, little prayer for the Bible, something from the Bible.
I thought that was always really cool. And then one
day that was gone. And the next thing I know
is their flight attendants are wear in pronouns and then
there's a pride plane. Oh what's this. Oh it's the
new thing. This is the new thing. This is the
new moralty we need to display. We may not believe it,
but doesn't matter. We need to display this.
Speaker 4: So moral camouflage.
Speaker 2: That's a great way to say it. Moral camouflage.
Speaker 1: We are pretending to have morals, even in that case,
morals that stand averse to the Word of God. So
again I go back to like, we don't know at
this point, and again you and I are recording an
advance on this stuff. But I looked at this, I
saw Alex Barence and say, this is probably someone who
has denied coverage.
Speaker 2: No, I don't think so.
Speaker 1: I think this guy, Brian Thompson, the CEO of United Healthcare,
I'm gonna guess he might have been about to say
something that might have cost someone a whole lot of
money or maybe some jail time, such as, yeah, we've
come out and found out these shots are very very bad, right,
and I hope that's not.
Speaker 4: The case, but boy, it's sure as yeah, I hear you.
Speaker 1: I know, and there'd be a lot of wisdom in
getting a head of that, and people should get ahead
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Trywisdom dot com slash todd. So, Zach Abraham's with us
chief investment officer Bullwart Capital Management. As we're watching this, Zach,
and we're continuing to see the news.
Speaker 2: Unpeel.
Speaker 1: We can go back and look at this as we
learn more about it. But I wanted to ask you
about we started to talk about Dei and Wilke, et cetera.
There was an article that ran in CNBC and here's
the way they cast this thing, the war on woke.
How a gay rights index, once tuned by Walmart and others,
became a conservative target because it was just sitting out there.
Then conservatives decided to target it was just it was
bothering nobody. Are we seeing. We've seen the Trump dance
in the NFL. We've seen it in the NBA. We've
seen entertainers do this. We see you now, younger and
younger entertainers coming out and saying their pro Trump. We've
seen the Silicon Valley people standing up. We should probably
talk about Joe Rogan and this contention that Mark Andrason
has that the government said there's only going to be
three AI company.
Speaker 2: Period, We're going to block everybody else. But is this real?
Are we seeing a true churning in corporate America where
woke is finally getting punished out of the boardrooms.
Speaker 4: Yeah, I think you are. My hope is that it lasts.
I think it will.
Speaker 5: And the reason I think it will is because, yeah,
I think it had already I think it had already failed.
Speaker 4: But I think that the.
Speaker 5: Election was sort of pulling back the cover and realizing
that that.
Speaker 4: That it had died, right like meaning meaning?
Speaker 5: I think my contention is if you had the election today,
I think Trump's margin of victory would be probably.
Speaker 2: Double what it was today.
Speaker 5: And yeah, and the reason I say that is, I
think you have a ton of people who and I
feel like you see it in evidence of more and
more people have waves of people have come out and
said they're supporting Trump that didn't say prior to the election.
Some of that is going to be disingenuous, right to
align themselves. But I think a lot of that is
just people saying what they thought that they were afraid
to say. And I think that that interview with Mark
Andries and on Joe Rogan was really informative. And Mark's
a really smart guy who was extraordinarily candid, in my opinion,
in that in that interview confessed to precisely how he
got where he got politically and mentally, and also what
woke him up and what took him you know, uh,
what led him astray politically and what brought him back.
Speaker 4: Yeah, and and and and I thought he outlined it perfectly.
Speaker 5: And I think he sums up a lot of people
in the world who you know, sort of went along
with the current of things, especially if that current of
things ended up with them being very successful and very rich.
Because like you and I have discussed before, you know,
it's a natural human response to think that any system
or or body that puts them a top and grants
them wealth and power by default must.
Speaker 4: Be a system.
Speaker 5: Right, If it's picking me to be a winner, it
must be a good, just system, and I think a
lot of people got lulled into just kind of like
and Reeson outlines in that in that in that interview,
how when he went out to when he went out
to California and he made that move out to California,
how he assumed that the people out in California knew better,
they were smarter, they were more educated than his Wisconsin background.
Speaker 4: And I yes, I think that there's a big pushback.
I think it's real.
Speaker 5: I think that I also think that we shouldn't think
that these people are on our side anymore. They they
they've just realized that that form of moral camouflage is
no longer working, and they'll look for their next right,
they'll look for their next.
Speaker 4: Source of camouflage.
Speaker 5: But there have been the guys like Andreeson who I
think have said, Okay, here we go.
Speaker 4: You know, the game has changed.
Speaker 5: And the other thing, remember what he was talking about
is something again that you and I have talked about,
which I've been talking about.
Speaker 4: This for years, which is regulatory capture. Right.
Speaker 5: He was saying that the government wants and you and
I've had this conversation. I'm like, look, the government wants
those three companies or those four companies to dominate that
industry because they can make nice with them and play
with it, you know, and keep that, you know, and
it's in total violation of our constitutional rights. And government
will have its reason to do that. But at the
same time they're treading where they shouldn't be.
Speaker 2: I agree.
Speaker 1: I want to dig into these three companies in a
second and the effect of this because but I want
to make sure that I pay something off in terms
of the CNBC thing, because you and I talking about
Rogan and and Drason, we're talking about two Well, in
the case of Joe Rogan, he'll probably be a billionaire
one day if he's not one yet, but Mark Anderson's
multi billionaire.
Speaker 2: Two rich powerful men. One in media.
Speaker 1: Mark Anderson has a really no well followed sub stack
on Twitter, but he's.
Speaker 2: Not a media guy.
Speaker 1: And they've awakened Peter Teel, awakened other people awakens that Wow,
the Democrats are tyrants and they don't want us to
have any meaningful debate about anything.
Speaker 2: And then I read this.
Speaker 1: Piece from Brandon Gomez at CNBC and here's what he
says about the Human Rights Campaign and they're Human Rights Index,
the benchmark is widely considered a gold standard for value
to winning companies.
Speaker 2: Policies and benefits for LGB so.
Speaker 1: Called t Q plus employees, and ratings are once talented
by some of these same companies. It was widely considered
the gold standard see in the world of a brand
in Gomez. Widely considered means all my friends, right, all
my friends.
Speaker 2: Say this is the gold standard.
Speaker 1: So I guess my point is, Zach, that you see
Rogan andreson others awakening to this, to the con of transgenderism,
et cetera. But the media stays locked just so inbred.
That's the piece I'm going to be curious to see.
Does revenue change this. CNBC is not doing well revenue,
MSNBC is destroyed in revenue, CNN is destroyed in their
subscriber base, in viewership base.
Speaker 2: What brings them around?
Speaker 4: I don't think. I don't think anything, and I think there.
Speaker 5: I think that what you saw in the election is
the final deathnell in their forms of having any real
meaningful impact.
Speaker 4: On the public discourse. I just think they're done.
Speaker 5: I think they're irrelevant because even if they pivot back
toward the middle right, even if they try to be
a hard news organization. They're going to lose the only
listening base they've got because their listening base doesn't want
to hear the truth, right, they don't want to hear
if you want to believe that January sixth was an
insurrection and that Donald Trump is the greatest threat to democracy, going, okay,
you don't want to hear the truth. You just don't,
okay now, And that doesn't mean Donald Trump's perfect, right,
just you are pushing a false narrative. And if that's
what you want to believe, then the minute I pivot
back and dedicate myself toward, you know, delivering real.
Speaker 4: Content, I'm an alien at you too.
Speaker 5: So I mean, by them doing what they should have
done years ago, it's came over. I mean, the right,
this is just a point of I mean, at this point,
it's like the rats off the Titanic in my opinion.
I mean, you know, their constituency is dying, their customer
base is leaving.
Speaker 4: They've shot themselves in the foot.
Speaker 5: And you know, we guys like us were saying years ago,
and you know, arrogance is a heck of a drug man.
Speaker 1: It is ignorance and arrogance, and I want to unfold
get back into the AI discussion because there was a
note a guy named David Marcus put this up on Twitter.
He had been the heads of payments at because he
was at Meta, he was at Messenger, he led PayPal.
You probably know who David Marcus is. He's at a
company now called light Spark and it's the whole payment ecosystem.
He talked about how his approach at Meta was destroyed
by governments and how they slow rolled it and then
destroyed it. We'll talk about these three AI companies as
it relates to people investing in AI. So think about
that where the government said there's going to be three
companies and they ruined this company. So we'll talk about
this with Zach Abraham, chief and vestmofficer Bulwick at Capital Management.
And while we're talking about Zach, let me tell you
a little bit about why I choose to have Zach
manager money. First of all is because I've gotten to
know him long and it was gosh, probably two years
before we put our money over with Zach when I
got to know him as a man. First heard about
him through a common friend who's passed on gone to
the Lord Dorry Monson. He said, you got to meet Zach,
went to dinner and a charitablevent with he and his wife.
Came away from it saying, these are good people. They're
down to earth people. He's a fiduciary who doesn't talk
like one. He's a guy who talks in a plain
way about finance, but super educated. Then I got the
personal story about t and his wife experiencing financial hardship
and loss and deangitt that's so rare, it's so important.
Speaker 2: Then we talked risk management.
Speaker 1: That's the focus at Bowick Capital Management, risk management, which
he does through actively managing every portfolio, which can in
fact reduce risk and volatility. Then when I saw him
interact with viewers and listeners to this show in person,
being the last person's leave a room, we gave a speech.
Zach came and gave a speech with me in Seattle,
and we had gosh, three or four thousand people at
this thing, and Zach stayed and he and I out
of the last persons to leave.
Speaker 2: Security was trying to finally kick us out. Poor guys.
Speaker 1: You know they've got families, and there's Zach to the
last person answering questions. This is my guy, So do this.
Have him take a look at your retirement portfolio. Really simple,
no obligation, no promises. If you like what he says
and you think that he makes more sense than move
your money over.
Speaker 2: So go to Know your Risk radio dot com.
Speaker 1: That's know Know your Risk gradio dot com or just
call directly eight six six seven to seven nine.
Speaker 6: Risk Investment Advisory services offered through Track Financial LLC and
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for general informational purposes only and are not intended to
provide specific advice or recommendations for any individual or on
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Speaker 1: So Zach Mark and Dreson said a lot of things
on Rogan show. One of them he talked about was
the Biden people wanting to install a pure China model
where they monitor everything we do, control everything we say.
Speaker 2: Then he talked about AI and that's what he said.
Speaker 1: He said, there's going to be three companies that the
government told them, hey, don't even bother investing, don't even
do that.
Speaker 2: We're not going to allow more than three companies to exist.
Speaker 1: So what does that mean for people who are let's say,
retail investors, who are going out and doing this on
their own? Is there any point in spreading the bets
or you just try to figure out what the three
companies are?
Speaker 4: Yeah?
Speaker 5: No, well we know what the three companies are, okay,
and it would truth be told, it's probably really four.
But I think the three main players are going to
be Microsoft.
Speaker 4: Google, and Amazon.
Speaker 5: Those can be primary three metas in there a little
bit Apple to a degree as well.
Speaker 1: But I mean, what about like the chat GPTs of
the world. I mean, are they going to force them
to get purchased?
Speaker 5: Well, member, Microsoft already owns a big chunk of that
right in a very complicated ownership structure. But this is
this is an extension of what we've been talking about,
which is the end of free market capitalism via regulation.
And this is what we were saying, which is you know,
it's why it's so ironic that the the trope that's
constantly thrown at Trump is that he's a fascist right.
Speaker 4: What you are watching is the.
Speaker 5: Is a furthering creep of fascistic tendencies, right, which is, Hey,
we're going to have privately held businesses, but they're going
to be under the control of the government.
Speaker 4: Right And what I people like that?
Speaker 5: No, No, being regulated by a government being controlled by them
are two completely different things. When the government is involved
in a sector picking winner losers and saying who is
going to control a transformational new that is not a
free market.
Speaker 4: That is a usurping of a free market.
Speaker 5: Right, That is total interference and short circuiting of a
free market. And this is what they've been doing, and
they've been covering it up with greater regulation, greater security.
Speaker 4: You're going to hear people.
Speaker 5: Say we have to let these companies continue to grow
because China is funding tech companies, and you're like, no, no, look,
I've heard this all before. Okay, I don't care that
the government is funding them in China.
Speaker 4: Right.
Speaker 5: The government is a horrible allocator of capital. Okay, that
has never stopped us before. That didn't prevent us from
beating the Russians, and it won't prevent us from beating
the Chinese.
Speaker 4: Hey, what why America works?
Speaker 5: Is the very thing that you are retarding, the very
thing that you're holding back. You're saying that the free
market doesn't know well enough to do with this. Oh,
yes it does. Right, You're the ones that have proven
over and over that you don't know what to do
with it. So no, it's just this regulatory capture game
going on. The tech companies are wise to it, and
they've gotten themselves to the size. This is this problem
with this regulatory capture thing. They've gotten themselves to a
size where when the government, the government's not irrational for
coming to that conclusion. Right, if if your job was
really to control and and shape and move AI, that's
the easiest way to do it, right, is by by
working in concert with those three or four companies. The
problem is is that it violates the tenants on what
we were built on, right and what we're constitutionally guaranteed.
Speaker 4: So that's the issue.
Speaker 1: So does this mean, and I agree with you, all
the regulatory capture are grief you maybe on the on
the big four players, big three to four players. Does
this mean that you guys are not going to be
looking at investments for let's say, you know, AI startups,
or is it going to be that the startups are
capped because I remember back in the day, you'd reach
a point where you could see a startup growth to
let's say, they'd allow them to reach about two million,
two undred and fifty million, maybe five or a million
value before they had to get purchased. Microsoft used to
have a formula for this, so they're they're they're a
and are there their acquisitions departments They had a formula
four when you go acquire a company. It had to
do with share of markets, revenues, et cetera. So is
this gonna be a thing where there's all these little
AI companies who sprout up, but they know that they're
really only ever going to get to be a tutor
or two undred and fifty million dollar company, and that's
the bet they're never going to be able to or grow.
Speaker 2: Into a you know, a trillion dollar thing.
Speaker 4: Well, so now, I.
Speaker 5: Mean, thank goodness the election with the way it did,
because I think all those bets are off now right
in my hope, Okay, firm belief is that is that
is that the Trump administrations can take a decidedly different turn.
Speaker 4: You think they're gonna.
Speaker 2: Okay, so you think they're going to stop this.
Speaker 4: No, I think that they're I think they're gonna not.
Speaker 5: I think they're going to I think they're I don't
think that they will pursue the same tactics and the
same approach that the Biden administration did. I just would
be absolutely shocked, especially when you look at who's involved.
Speaker 4: There, Guys like Musk, you know, who know that.
Speaker 5: Listen, if we want to win artific like just like
we can even set aside the constitutionality part of it, right,
but if we want to win the AI race, We've
proven over and over and over that innovation is it
is in the history of mankind has not been as efficient, fast,
or violent as it is in the US system when
government just gets out of the way. Now, have there
been times where government is interviewinged and there have been partnerships, Yes, yes,
I'm not saying that those haven't occurred. But in a
situation like this, where the baseline technology has already been
released and is already out there, right, how to best
develop it, how to win, Let's do it the way
we did everything else, right, which is just get out
of the way. Trump knows that, Musk knows that. Intimately,
I have to believe they're going to pursue another approach.
I also don't think that either of them think it
is a good idea for those tech companies to grow
into perpetuity and just keep swallowing swaths of the economy.
And to comment something further on what you've said, I
think this is a perfect example.
Speaker 4: Of where we're at. Right.
Speaker 5: You were talking about your Microsoft days and that number,
you know, that buyout number being around two to two
fifty That buyout number is down to like twenty five
to fifty million.
Speaker 4: Now, is it really right a revenue? Yeah, for whatever reason.
Speaker 5: In the VC world, part of it, part of it's
the proliferation of VC funds, meaning the big companies know
that they got to act sooner because the VC funds
are out there.
Speaker 4: Hoovering them up.
Speaker 5: Yeah, but that's the approach, the approach anymore with most
of these big companies. Now, it's not by that because
we can plug it into our ecosystem we think it's
going to be great. It's by that if we find
a use for it, fantastic. But at the very least
we won't have to compete against.
Speaker 1: Gosh, it's just to negate it it's just to park it.
I never I didn't believe it. When we sold our company,
which had super super early it wasn't AI, but it
was big data. And we've done a lot of I
think unique licensing deals where we took different products and
combine them into one. And WPP purchased us, the world's
largest PR firm, and so we went to work there
with all these earnouts and we're looking at the earnouts
is big money.
Speaker 2: And I realized they're killing this.
Speaker 1: I watched technology people and I sat in a meeting
with a person who said, is this better tech than
what we have?
Speaker 4: Yes?
Speaker 1: Did I think it was smoking mirrors when I walked
into the room. Yes, Do I think that now?
Speaker 2: Nope.
Speaker 1: I can see that this is very real and very
scary and very potent. It's just that it's this. I
don't think that we're prepared to take advantage of it
from a billable hour's rate. So next thing I know,
like wait a minute, we're not getting invited to RFP
discussions to presentations anymore. And it occurred to me they
couldn't figure out how to get themselves out of the
billable hour thing to let our tech do what people
were getting paid, you know, one hundred bucks an hour.
Our tech would do for zero dollars an hour once
they amortized it and got it all out of the way.
Speaker 2: So that's where we're at now.
Speaker 1: Is just I say these companies, I want to tell
a workout story at a second, because you want to
talk about innovation. In fact, as I do this, Alex
is going to play a video of something called a
reverse hyper and you won't see this act, but the
viewers will. I'll send this to you later because we're
talking about innovations. Zach just mentioned this. So my friends
at Bioptimizers are innovators, and they innovated their way as
bodybuilders in the case of Wade into being a world
champ bodybuilder as these two things vegetarian and all natural.
So now I had to work out and I had
to compete in the all natural world because you know,
you can't compete with the steroidd body. But as a vegetarian,
he won world championships. But man did he punish his body,
and so did his buddy Wade, who is his co founder.
At Bioptimizers. They created this lab that was for elite
athletes to help elite athletes overcome what they do to
their bodies as elite athletes because there is a cost
to be paid. And when that became successful, they started
to notice they had some products that would work for everybody.
One of them is magnesium Breakthrough. And you've heard me
talk about this from a perspective of sleep. But let
me focus on something about this season. Christmas time, Honka.
The holidays are super stressful for a lot of people.
Have people come over to your house, maybe people you love,
some people, maybe you don't want to be in the house.
You've got the timing of buying gifts and are they
going to be delivered or we're going to make the
airplane flight money becomes an issue. So here's a way
to use magnesium Breakthrough during this holiday season to not
let their self be robbed of joy. It helps deliver calm.
It controls the stress hormone cortisol. It encourages and enables
the optimal absorption of nutrition, which can give you more
energy at the same time as creating calmness.
Speaker 2: So do this. Choose calm this holiday season.
Speaker 1: Go to boptimizers dot com slash todd use code tod
to get an extra.
Speaker 2: Ten percent off Magnesian breakthrough.
Speaker 1: That's Boptimizers dot com, slash Todd Zach. You get a
kick out of this. You know about the company called
West Side Bar Bill. Have you ever seen these guys? Okay,
so you've seen the videos. It was founded by this
guy named Louis Simmons, insane powerlifter who was still squatting
six hundred and seven pounds in his sixties.
Speaker 2: He broke his back.
Speaker 1: So dude breaks his back and he's an older guy,
and surgeons say, you're done.
Speaker 2: You might not walk again. Your back's broken. You every
lift again.
Speaker 1: So he goes home and he invents this device, which
Alex is showing you in video called a reverse hyper.
And you see someone using this reverse hyper. I'm saying
this because I just bought one of these. He used
that and he was able to squat and work out again.
This is a guy who does not he's not a designer,
he's not a surgeon, he's not a PhD. He is
a roughneck weightlifter. That's innovation. He had this thing patent
did for like ten years, fifteen years. You couldn't buy
one for under five grand, and then people figure out
to reverse engineer it. Now you can buy. Actually, one
of his West Side hyper is three hundred and ninety
five bucks. That's the person I got off a Facebook marketplace.
That's the point, Zach, about this innovation that Americans, left
to their own ends, will innovate, and that's what's being blocked.
And you think that the Trump administration, with their attitude
at least, is.
Speaker 2: Going to enable innovation to come back.
Speaker 4: Yeah, I mean that.
Speaker 5: I mean when you think about DOGE, I think people
think about the money saving.
Speaker 4: Yeah.
Speaker 5: Look, that's not the point of doage. DOGE is not
going to save us money and get our balance our
budget balance, right. The main advantage of DOGE is going
to be economic productivity and getting out of the way
of entrepreneurs and innovators. And like we've told you man
or like you and I have talked about, this is
not This isn't political or economic dogma, right. This is cyclicality,
meaning there have been times in our country's history where
we needed more regulation. A perfect example of that was
the beginning of the twentieth century, right Teddy Roosevelt, antitrust laws,
all that kind of stuff. There have been times in
the past, like the beginning of the eighties at the
end of the Carter administration where we needed less regulation.
Today is one of those times where regulations have really
been creeping in a very not unseubtle, but a scary
or shockingly consistent way since eight nine. And you've gone
too far. And I can give you example after example
after example.
Speaker 4: I can give you example of.
Speaker 5: Regulatory in my opinion, which is regulatory harassment. If you've
had to go up against one of these institutions or departments,
you know exactly what I'm talking about. If you haven't,
it probably sounds like a bunch of wealthy business people crying.
Speaker 4: And I'm just telling.
Speaker 5: You, people don't realize the kind of back alley muggy
that are occurring with these regulatory bodies.
Speaker 4: And it's happened to me. It's happened to me, and.
Speaker 5: It is It is really unnerving, and it is one
of the most odd, alienating feelings I have ever had,
where you completely guiltlessly are being persecuted by a federal
government with bottomless pockets and you've got no recourse, right
even when you prove they're wrong, you've got no recourse.
And this is blocking tremendous amounts of innovation. It's blocking
tremendous amounts of capital formation.
Speaker 4: And it doesn't bother the big guys.
Speaker 5: You're not gonna hear it on CNBC because all they're
focused on is the big companies that are funding people's
election campaigns.
Speaker 4: Right.
Speaker 5: But then you flip around and you realize that the
small business still employs sixty percent of the people in
this country. And you have completely and I'm talking through
both Obama administrations, you composee letly almost everything you passed,
wittingly or unwittingly, was a benefit to giant corporations at
the cost of small business. And you got to undo
some of that, man, because your economy and your labor force,
it is intricately tied to small business. That's where innovation
comes from. It's just a talk about eating your corn
seed or your seed corn, right. That's that that That's
what you've been doing. And you know, yep uh, they
got to reverse it. They they they I think they will,
and if they don't, there's going to be pride. There's
going to be a lot of unpleasant economic realities we
have to face because that Microsoft ain't our engine of innovation. No,
US consumer and the US dreamer and entrepreneur is right.
Speaker 1: Microsoft is one of our engines of entropy. And I
hate to say it, but Google's becoming the same way.
Apple's becoming the same way. And we've got this consistent
cash full as you've taught us about on the show, Zach,
people buying their stock automatically through a lot of platforms,
and it happens every month, and they don't need to care,
they don't need to innovate. I'll share I know a
little bit about what you went through with regulators, and
maybe one day we'll talk about that. Completely unfair, absolutely terrifying,
because as you said, they don't have to care. They
have all the money they need. It's not their skin,
it's not their risk. They go home at five o'clock
and they don't care. They don't care what it does
to you. I have a small example of this you
can relate to as a homeowner. I'll share with this
you in a second. In this season coming up, it's
Christmas time. We've been talking about bone frog sellers. So
what do we have coming We have Christmas, we have
New Year's that's a big time for people.
Speaker 2: Who love to get just stone cold drunk.
Speaker 1: That's the stuff Tim Krukshank, the founder and CEO of
Bone Frog Sellers, wants me to talk about He's a
retired Navy seal. He's a medic with the Teams Physicians Assisted.
He wanted me to talk about getting stone cold, passing out,
vomiting drunk.
Speaker 2: What oh, sorry, No, that's a different product.
Speaker 4: Now.
Speaker 1: Tim is about the responsible use of adult beverages, wines,
and he has worked with a family who's been in
this business for decades. He wanted to make wine. He
didn't know how. He did the same thing with coffee
and coffee. He got Dave Stewart to mentor him to
make some of his roast for Bone Frog Coffee. So
Tim traveled around Washington State and went into the Tri
state area's Washington, Idaho Oregon area. Found a family who
knows what they're doing. Loved the fact that Tim, a seal,
wanted to create something for his family to last, to
be a legacy, but also to support the memory of
fallen seals.
Speaker 2: That's what the Bone Frog maids.
Speaker 1: Every bottle is really classic black and whites got the
bone Frog image. That's the image of a fallen Navy seal.
It says in the bottle of God Country Team and
every bottle says God Country Team on it. We had
at our home a tasting party from just new drinkers
of wine. They loved the Cabernetes and the Merylows, the
twenty fifteen vintage, my wife who drinks it a little
more often. And then some friends of ours who I
think is fair to say they're either wine snobs if
you want to be snarky, or experts at it if
you want to be kind, and.
Speaker 2: They are experts.
Speaker 1: So go to Bonefrog Sellers dot com slash todd. Get
ten percent off the wines there Bonefrog Sellers dot com slashtot.
Speaker 2: Remember that ten percent of.
Speaker 1: Proceeds always go to the Navy Seal Foundation to help
the families of fallen Navy seals.
Speaker 2: Bone Fogshelters dot com, slash todd. You might be able
to relate to this, Zach. It doesn't get up to
the level of where you were at. But we were selling.
Speaker 1: We were doing home improvement in our house in the
Des Moines Numberdy Park area. Had a beautiful view these
really classic Swiss made ceilings. This guy was a high
level boweling engineer. He designed the house and he had
these tongue and groove, and he was so proud of those.
Not a nail up there, man, everything fits perfectly. The
finish is perfect. It was one of the outstanding things
about our house. Everybody came to our house and go, wow,
the ceilings are you kidding? And they matched the wood
floors to a t.
Speaker 2: Yeah, this guy was solid.
Speaker 1: So we're getting new windows. And we had thirty nine
windows and we had a guy come out, and this
might have happened. It's a possibility of this occurred. So
it's possible that when he came in and he gave
us a bid, he said, Okay, here's the windows you
have to buy legally, and here's the drop ceiling you
have to install legally. That is, unless you already have
your permit. And I said, let me understand what you're saying.
I have to buy white, ugly windows that will not
match our brick house or paint. And I have to
go from a twenty foot ceiling to an eight and
a half nine foot ceiling that is going to be
filled with styrofoam and sprayed with popcorn.
Speaker 2: Like the popcorn white spray.
Speaker 1: I have to do that unless I already have a
building permit, and he goes, that's right.
Speaker 2: I go, what the heck is this? He goes, it's
called the port package of the Port of Seattle.
Speaker 1: Purchase all these windows, all all these ceilings to abate
airplane noise.
Speaker 2: I go, we don't. We're not affected by airplane noise.
We don't.
Speaker 1: I mean we see the airplanes coming in, but they're
not loud. We actually like watching them. Well, that's the deal.
Speaker 2: Okay. I might have said to him, I have a
building permit. Do you need to see it? And it's
possible that he said no, no, I trust you.
Speaker 1: I just sign this thing that says that you have one.
I said, okay, So he put them in. I go,
what would happen if a building is Spectra happened to
come by? He goes, if they had the windows all
done and we were just finishing up, yep, they'd make
us take him out. They'd make us remove them at
your cost.
Speaker 5: So you don't get to pick what kind of windows
you wanted in your house.
Speaker 2: No, because the porta Seattle bought him in advance for each.
Speaker 4: House, so that you get them for free.
Speaker 2: Oh no, you still pay for him.
Speaker 1: You get a reduced rate. But yes, they forced this
into these homes that have these unbelievable views of the sound.
Speaker 4: But what if you like airplay noise? What do you
mean you get?
Speaker 1: So this is what he told us, and I saw
it in other houses. I'd been in my neighbor's houses
that they got windows replaced, and they had the popcorn
ceiling from the seventies.
Speaker 2: Like, why is that there? Oh, that's the port package.
Speaker 1: And then I drove around the neighborhood that I saw Wait, yeah,
that's a brown house that's got these white frames and
this those don't match. And I realized that other people
had given into this. So I actually I actually said,
and this is possible that I said this. I may
have emailed my wife and said, I can't believe this.
I just got home from a business trip and someone
installed new windows in her house.
Speaker 2: I don't know who to contact. I don't even know
if this is okay. But I didn't sign off in this.
Speaker 1: And it's possible that my wife wrote back and said, yeah,
it's so weird. I saw the same thing all of
a sudden, there's windows.
Speaker 4: But random act of kindness. Man, what are you supposed
to do?
Speaker 1: He told me a story that they had done work
windows in an apartment building that was twelve stories tall
downtown and they were just getting ready to get them finished.
There were then you know, there's this formula where they
they leave some windows open until the last minute, like
one on top, one in the middle, so that the
airflow is okay, doesn't blow the windows out.
Speaker 2: They're putting in some of the last windows.
Speaker 1: The building inspectors there it is no, no, no, no,
no nope. These need to be set back or had
some rule. And so these guys go, okay, all right,
we'll got it. We'll set it back. He no, no, no,
you don't get it. Start over, start over, Go remove
all the windows. I will reinspect them. But wait, you're
you You already had this. These have already been inspected,
like this is the finish shop. Go start over, right,
And that doesn't even begin to match what you have seen.
Speaker 2: So one question.
Speaker 1: Earlier this week, the NASTAC jumped up to this new
record to start as S and P five hundred indexing higher.
Speaker 2: People all excited about this.
Speaker 1: The more you've taught me about financing, Mary, look at
this and go who cares?
Speaker 2: Yeah, none of it's rational. I don't care. Should we
even be spending any time looking at the s and p.
Speaker 4: Look.
Speaker 5: Ihh, Yeah, it's tough right now. And it's tough because
I do think that we have got good economic things
coming down the pipe.
Speaker 4: Okay, that being said.
Speaker 5: I think the vast majority of people are not paying
attention to how crazily valued so many of the things
in this market are. And like we've said, what makes
it so difficult is there's things that aren't overvalued, and
some of the things that are overvalued, there are reads.
Speaker 4: It's it's tough.
Speaker 5: What concerns me here, here's what concerns me is that
so many of the companies that so many people are
invested in are completely detached from underlying fundamentals, meaning they're
not detached from the reasons they're going up. And I
think you signed it pretty clearly. The reasons that the
vast majority of these companies are going up is because
of wage gains, and people are like, what do you mean, go? Well,
wage gains feed directly into four to one K accounts.
Four to one K accounts are almost exclusively now exchange
traded funds, which means when you put money into your
four oh one K account, that money is just getting
thrown blindlessly into the market and buying all five hundred
stocks in the S and P five hundred. So what
you're seeing now is you're seeing kind of a weird
market composition that we've never really witnessed before, which is
most or the good portion of some of your most
crazy expensive companies are now at the top half of
the market, where that was never the case.
Speaker 3: Right.
Speaker 4: It was usually your.
Speaker 5: Biggest, most boring companies at the top of the market
because they're the biggest, right, But now you see some
of these companies towards the top of the market that
have value euations that make them look like you know,
penny stock growth companies.
Speaker 4: Yep.
Speaker 5: And so now here's the crazy part. It when I
look at this market right now, and I look what's
going on, and you've got the NASDAC making fresh new
all time highs today, SMP now making new all time
highs today at valuations that you've only seen two other
times in US history. Look, I think that you're setting
up to where if you told me that a year
from now the market was fifty percent higher than it
currently is. Remember, remember we were having this conversation a
year ago when I was telling you look at the
sketchy things on the horizon, look at all this kind
of stuff. But that being said, I would wouldn't be
horrifically shocked if in the next twelve to twenty four
months the market was you know, double where it's currently at. Well,
we're about halfway there now, right, I mean you're about
halfway there. So you know, when you get this expensive,
you know, what is is it really any different when
you've got a company like Apple trading at forty times
earnings as opposed to fifty five?
Speaker 3: No?
Speaker 4: Why not? Right? Costcos at sixty? Why not run a
d eighty?
Speaker 5: You know in vidio, I mean you know, you just
go down the list, You're like, well why not? There's
no like you're not connected to underlying valuations. Right now,
Apple's now hitting the highest market's been at ever, at
the highest valuation it's been at in twenty five years,
and it's got its weakest worst financial performance growth in
that entire time, right, which is and that's what people
need to understand.
Speaker 4: It's not just the price of the stock.
Speaker 5: It's Apple's growth is now at the lowest point it
has been at since inception, since jobs took back over
in the late nineties, and you are now paying the
most expensive price for the stock in terms of you know,
per earnings. Right, you're paying the highest valuation for the
stock ever and it's never grown at a slower pace.
So you know, these aren't opinions of mine, right, these
are just these are just observations. So but those dynamics
that have driven the market higher are still in play.
Not to mention that, I think that you've got positive
economic stuff coming down the pipe from the Trump administration.
Speaker 4: But what do you do here? I don't know this effectively.
Speaker 5: In my opinion, A big, a big part of this
market is turned into a casino where you're making a
bet does it go higher or not? But you're not
investing right when you're when you're buying up these companies
at you know, two two hundred and fifty three hundred
times earnings at thirty forty fifty times revenue, that's not
an investment, Meaning the valuation of that company is so
high that you are speculating and you just need to
write because you're hoping that the stock price goes up
at that point. You're not sitting there looking at cash
flows and margins going Okay, if I pay this price
for the stock, I'll get an ROI in four and
a half years.
Speaker 4: And but you're not doing that. That's investing.
Speaker 5: So I will just tell you, Look, this period of
time will end like every other period of time like it,
which is in disaster and collapse. Boy, it will, right,
But I think we could be a long way but
we could be a long way away from that. And
that's the tough part about it. And so when you
get down to well, what do we do?
Speaker 4: You manage risk. That's the only thing you can do
in this market.
Speaker 2: Yeah, I could agree more.
Speaker 1: Zach, Thank you so much for always coming on with
wise counsel, say a Lord to the family.
Speaker 2: Thank you for staying the course.
Speaker 1: And one day we'll tell that story about the regulatory stuff.
Speaker 2: I'm want to figure that out.
Speaker 4: Yeah, okay, hey with the bypoxs say hi.
Speaker 2: So all right, all right, back for the White Pawks show.
Speaker 1: Please go be well, be strong, be kind, Please make
every effort to walk in the light of Christ.