Speaker 1: Jim Kramer has advice, so get ready to do the
opposite of that to Wi Wasserman. Schultz apparently caught in
a violation of the Stock Act violation. We'll tell you
about her three hundred and thirteen percent bump since her trade,
and we'll talk about this with Zach Abram. Also might
touch on the mayor of New York or the likely
new mayor of New York. He's got himself a plan,
a bold one. Zach Abraham joins U, Chief Investment Officer,
Bulwark Capital Management.
Speaker 2: The Todd Herman Show is one hundred percent disapproved by
big pharma technocrats and tyrns everywhere from the hind mountains
of Free America. Here's the Emerald City EXI.
Speaker 1: Todd Herman. Today is the day the Lord has made,
and these are the times through which God has decided
we shall live. It is wise count today. Zach Abraham
joins us. Zach, Welcome back to the Todd Herman Show,
starring No Let's say it this way. Welcome back to
Zach Abraham with Todd Herman.
Speaker 3: I didn't think it's I think it's the other way around.
But I'm the side this year. But no, good, good,
to be back man plenty to talk about obviously, So.
Speaker 1: Jimmy Kramer and I don't even get this. I'm normally
I can kind of sus things out by anything.
Speaker 2: Uranium.
Speaker 1: Is this because Iran? Is this just because Jim Kramer.
Speaker 3: It's because the chart broke out? Okay, Now, to be fair,
that's it to be. To be fair, we have had
uranium as a staple in our portfolio for probably the
last five years.
Speaker 1: You don't say precious metal.
Speaker 3: Yeah, this is so let me give you. This is
why if you want to listen to your Kramer at home,
I would urge you not to. Okay, all right, So
perfect example. So Camico for those for those at home,
picker symbols CCJ, they are by far the biggest supplier
and contractor of uranium outside of Kazakhstan. Okay, so they're
they're the biggest company. They're kind of the bell Weather
right yep. Jim Kramer is talking about everybody go buy uranium.
When we got into Camico, we got into it about
five or six years ago at about eight dollars and
fifty cents a share. Today it hits seventy one eighty seven.
And now Jim Kramer is telling you to go out there.
So it's only nine xt since we bought it, but
now it's a buye if you want to know Jim
kra like, there's Jim Kramer right right. This is also
this is also why this is also another example of
why in the short run it can be so tempting
to chase the things that are running by the breakouts.
But this is why we believe in value investing, and
and sometimes it takes a while, sometimes it's going to
be frustrating. But when we were back buying Camico at
eight point fifty, it was so bloody cheap. The only
thing you were worried about was what would be the
catalyst to get people to notice the stock right. And
I'll be honest with you, it was a frustrating trade
for the first two years. But then you look back
six years and you know, a nine x return in
six years isn't too bad, Todd. I'll take that annualized
grade of gain right right, And it works over the
long run, and that's how you're going to get big wins.
And that's how we've gotten the majority of our big wins. Unfortunately,
it's just become a very unpopular way of investing because
everybody is so short term minded. But it's still not
going to be how you find your biggest wins, and
it's certainly not going to be jumping on the Jim
Kramer bandwagon after nine x returns of already been name.
Speaker 1: Let's tell you a second. He did a feature the
day about business ideas. He's trying to help young entrepreneurs out,
and I'll tell you an ID he had, and I'll
see what you think of this one. This is a
good opportunity to talk about this halfway webinar you're doing.
It's you're looking at our country as if people's retirement
accounts are sports teams, they're financial advisors. How are they
doing if they have a fiduciary, big difference. Fiduciaries have
to put their their financial interests behind ours, your fiduciary
at Bulwark. So you're looking at it halfway through the year,
and then you're gonna be looking at risk profiles, costs.
How you guys are always looking to cut costs? Can
you give people any like maybe hint in this because
the webinar's free, but these things like they fill up.
It's Know Your riskpodcast Dot com to register for this
Know Your Risk podcast dot com. Just give someone just
maybe a tiny little tease, just a taste of the cocaine.
Speaker 3: Yeah. So, in investing, I think one of the biggest
misnomers is that there's a right way to do it
and there's a wrong way to do it. There's a
lot of different ways to do it. But the thing
that has always re resonated with me, and I think
it makes all the sense in the world is our
job is not to sell you a B and C.
What our job to do. What our job should be
as a money manager is to accomplish your goals while
taking as little risk as possible.
Speaker 2: Right.
Speaker 3: So a perfect example of this, now listen, people hear
me say this, Like, we have plenty of clients that
don't use these products. It all depends on what's right
for you. But a big example of what makes us
different is we have we always used to own stocks
and bonds. Okay, interest rates went to zero, so bonds
lose money when interest rates go up. When should you
get out of bonds, I'd say when rates are zero,
it's probably a pretty good time.
Speaker 4: Yes.
Speaker 3: So instead of using bonds, we used our bond replacement
strategy if it was appropriate for somebody, and we use
something called the fixed indextinuity. Now they get ranked on
a lot and people take shots at them. But the
one thing I'd like people to remember is one of
the reasons they take shots at them is because everybody
taking shots out of them is an investment company. Okay,
Annuities are an insurance product.
Speaker 2: Yep.
Speaker 3: They Investment companies can't charge fees on insurance products. So
that doesn't mean all. Yeah, it doesn't mean all insurance
products are good. It doesn't mean that. It doesn't mean
that you should have insurance products instead of stocks. Yeah,
But what it does mean is if I've got a
bond that is paying me less than the inflation rate,
and I am paying a management fee for that and
interest rates are zero, and I'm doing that because that's
a safer investment, why not go buy this investment that
has no fee, that averages you know, four to six
percent a year and is insured against loss. So a
good example of this was in twenty twenty two, the
worst year ever for bonds, when bond portfolios were down
thirty to forty percent. Our clients didn't lose a dime, right, Yeah,
So now again, we have plenty of clients that don't
use those products. It's not right for everybody. But my
whole point is saying, we're looking at a portfolio and going, Okay,
what do you need to accomplish? What out there? What
is the best way we can build this portfolio to
insulate you against risk but also give you the most
upside at the same time, right, because that's the other thing. Oh,
you're you're a nuity. Didn't lose And I'm like, well, yeah,
but you know what that means. That means that when
that's used with the stock portfolio, not only did it
not lose, but you have a higher net return, right
Like you made more money, taking less risk, paying less
and fees. That should be the goal, And those things
change from time to time, and so you've got to
stay up on it. So our attitude is, hey, when
things are like this, we do it this way. If
they change, we do too. You know, right now, a
lot of our clients have way more exposure to value
type stocks, international type stocks, commodity type stocks, specifically precious metals,
way more than the average you know, just market oriented portfolio.
Why we're in an inflationary environment and inflationary environments, a
totally different type of stock benefits, So you should change
your you know, your approach one of the and this
is something I keep bringing up, and this is one
of the things that you know. This to me, I
feel just as adamant about pounding the table on when
rates were at zero and people were still in bond portfolios,
where you're sitting there going you are in a can't
win investment. Okay, You're going to sit around and make
less than the inflation rate until interest rates go up
and you get hit for twenty five to thirty percent.
I was saying that since twenty fifteen, that's exactly what happened.
Right you flip around, you have a very similar dynamic
right now. Not only are you in an inflationary environment,
but because this past period of time has been so
dominated by one type of stock, the kind of stocks
you need right now also happened to be generationally cheap,
which is a wonderful opportunity. And so you know, it's
not just about avoiding risk, and it's not us saying
the sky is going to fall. What it is saying, though,
is there is a generational opportunity in so many of
these types of things to buy them at valuations where
you have never seen those types of things is discounted
to the normal US stock market than they have ever been.
So I like to buy things when they're really cheap.
Speaker 1: It's a weird investment strategy, but it might work out.
So if attend this halftime webinar at Zach is going
to look at the country's performance. Halfway through, go to
Know Your riskpodcast dot com to register investment advisors services
up through check Financial LLC and sec Richard Investment Advisor
Investments volve risk can not guaranteed past performances and guarantee
future results truck twenty five. That's two five two. Since
we have bagged Don Kramer a little bit and had
some fun to expense, I did want to tell you
I saw this feature. Apparently he does, and it's sort
of to help out young entrepreneurs. And this was an
interesting theory. He was talking about taking something that's sort
of commodity, like just available anywhere, building an experience around it,
like a you know, kind of a place. I think
he called it a third place you would go and
it would say And what he did is he said
coffee that you could really kind of.
Speaker 5: Okay, that's like literally, that's literally like Starbucks. I mean
he's a little he's at themselves the third place. Like
that's literally what they call you know that.
Speaker 1: I know you know that No, I was, I was,
I was not. I was babbelon being you.
Speaker 3: He didn't.
Speaker 1: He didn't really do that. Okay, but but you bought
it because it would be very Cramer esque. Okay, let
me run this by you.
Speaker 4: Uh.
Speaker 3: Look, is a guy is guys that are doing deep
research all the time and really trying to find nuggets
for our clients. It kills me because he's always telling
these people to buy this stuff after all the money
has been made right, and when it's dirt cheap, he
doesn't like it. When it's expensive. Is he dirty?
Speaker 1: I mean, you can't say I don't don't don't answer
that legal problems, so I don't think something you's just
think he's dumb.
Speaker 3: I don't think he's dumb. I think that Jim is
a I think he is a horse for a course,
and I think, like a lot of investors for reasons
that I will never understand, adapt completely to the environment
they're in and forget all the lessons they've learned before.
Why that happens every time? I don't I've never understood it.
But that's you know, like the uranium thing's a perfect example.
Speaker 4: Right.
Speaker 3: We were buying uranium when literally the the price of
uranium was was one third the production cost. So you
knew it had to go up or it wasn't going
to exist.
Speaker 4: Right.
Speaker 3: He didn't want to buy those stocks then because the
stocks weren't doing well. And you're like, that's that's where
buy it, you know, So you know, yeah again classic
And guess what. Remember when I told you Camico, right
is number Yeah, so he's like, buy anything uranium. One
of the things he listens is you rn M. That's
a fund, right, guess what the number one holding of
you rn ms? I have Cammaco CCJ. And so you're
just like, it's my it hurts. He's good on the TV.
Speaker 1: I mean, I'll give him this credit. He's good on
the TV.
Speaker 3: He is. This is exactly. And now I'll tell you
a real life story too, really short, same thing coming
out of covid. Okay oil goes negative thirty eight. Now
that was pretty wild to see, right. I remember a
conversation we had in our office that day where we go,
all right, boys, plug your nose, we're digging deep, load
up on oil. Okay.
Speaker 2: Yeah.
Speaker 3: Everybody's like why and I'm like, cause they're giving it away, right.
So Jim Kramer comes over out the next day and
he goes, now, oil's uninvestable, and I'm going, you, you
want to buy that sixty, but you don't want to
get it when it's good. They're giving it away. Yeah,
it's uninvestable. And so literally we heard that and we
went double down. We increased our oil holdings on him,
saying that because sitting there going it's never been better,
it's never been cheaper. You know, the world needs oil.
You think oil is gonna stay it twenty dollars a barrel?
Speaker 1: Anyone ever? Does anyone ever confront him? Does he ever
go to industry meetings? And does anyone ever like on
a panel I got to tell industry. Okay, So I
said this in a super rude way, and I deeply,
deeply hate that I said this. I would love to
figure out who this man is. I would love to
go apologize to him. I was not to discappled Christian
at the time. That's no excuse. I'm on a panel
in Hollywood and there's a guy from a major agency
there and we're talking about Facebook, okay, And I was
in a period of time where Microsoft had asked me
to study Facebook. How is this singing to make money?
Speaker 3: What is it?
Speaker 1: Is there any tech? What's our role in this? Should
we buy it?
Speaker 3: What should we do?
Speaker 1: And so I'd come back with this recommendation, and what
I was saying is, look, this is a data and
an app play and that's what it was at the point.
They have so much data, but it's behavioral data. You
can't think of buying that they're getting in terms of
how people interact, when they interacts, There's looks like they're
looking at emotional data. There's a whole it's a massive
data suck, data vacuum. So I'm on this panel and
the panel leader, the moderator, says, do you think Facebook
will be a viable platform for advertising? And this guy
with a major international ad agency says, you know what,
that really remains to be seen, That means to be seen.
And it came to me and I said, well, are
you asking me if the world's number one social platform
that has data on when people are going to do
a thing together? Such as twenty people going to a
movie together, all of them are going to need gas,
probably a place to eat, going on vacation together, that
there are people who joined this support group for pre diabetes.
Are you asking this, I don't know.
Speaker 3: This is how rude it was.
Speaker 1: Are you asking me if that's going to make money?
That is the stupidest question I've ever heard in my
entire life. And anybody who doesn't see that should never
be in the advertising business.
Speaker 3: Again.
Speaker 1: Now, I mean, that was very, very rude, But this
was in.
Speaker 3: Hey, listen, you were dead right and all to the
point where I was. So I learned I learned that
same thing way later than you did, because I all
of a sudden, I remember, I just kept it was
social media, right, and it was just tech, and it
was hype, and I just kind of dismissed it, dismissed it.
And then all of a sudden I was reading and
doing some research and I went, oh, my goodness, this
is the greatest curator of consumer data that has ever
been invented. Yep. Yes, Like, and you realize all of
a sudden, You're like, they know where you're going, they
know what you're buying, they know what you're wearing. They
know who you're doing it with, they know who you're
shopping with, they know what you're using to buy it with.
Right They literally they know everything. They know when you
do it, they know what types of the year you spend.
More like you're putting it all on Facebook. It yes,
you saw it earlier, and I did, man well, I
was assigned to go look at it.
Speaker 1: And then when when we had a product at Microsoft,
I don't remember what it was called, there was MySpace.
I think it was called spaces, and this is where
you would go store notes, you know, ideas, are things
you wanted to do, snippets of writing you're working on, pictures, photos,
songs that you liked. And I looked at this and
I remember going back to the guy who was running
this and said, I've got a question for you. Why
not take this and integrate it with Messenger so that
everybody can see everybody else's stuff and you could share
this with your friends. And he goes, why so you
could share it? But but this is what that's that's
we don't see it this way.
Speaker 3: This is true.
Speaker 1: This is a storage place, this is a utility. And
this was the same company I begged them when when
when Facebook started to hit, I begged them to buy
classmates dot com member that site yep, yep. Why it's
not make any money, Because it's not making any money.
They've got all this data, they've got everybody and where
they graduated from, and they don't let them interact. All
it is is you can you know, you know, sometimes
go scan and see who's going to the reunion. They've stopped.
They sell reunion books, they sell pictures of what you
look like that and now they haven't said visit with
your old high school friends. This could be a legit
Facebook competitor tomorrow. And these mindsets, man, these mindsets people get.
You don't work a software company and you know we're
going to produce productivity software. That's great, be a productivity
software company. Then don't pretend to go be a media company.
Don't do that well.
Speaker 3: And to get to your point, I mean in corporate
America is very much the same. But investing too now
and obviously like you can't be a contrarian just for
the sake of being a contrarian, but contrary, it's but
when you when you're chasing popular, when you're just following
the crowd, especially in investing. If you think about it,
Warren Buffett has a saying which nobody ever really thinks about,
But it's so true that the number one thing that
defines the success of an investment is the price you
pay period. Right, Like that's the people don't think of that,
but that is what defines it.
Speaker 2: Right.
Speaker 3: So, uh, even if that asset goes down, how much
are you gonna lose, depends on what you bought it for.
If the asset goes up, how much you're gonna make,
it all depends on what you bought it for. Right,
So when do you want to buy things? By definition,
you want to buy them when all the guys like
Jim Kramer aren't talking about them because by the time
they're talking about them, right, because they're chasing what's hot.
Right now, you're gonna have to pay, like for in
the in the case of chemical, by the time Jimmy
came around to uranium, that stock at already nine xt right.
Speaker 2: Ye.
Speaker 3: By the time he came around to oil, oil was
backup at eighty a barrel and not fifteen where he
said it was uninvestable. So like that's just the there's
times where you see things. Why did we jump all
over the oil trade? What are you joking? You think
oils are gonna keep giving it away? It's gonna stay
at twenty dollars a barrel. You're an idiot. How long
do you think it's How long will it take to
bounce back up? I don't know, but they're giving it
away right now. So we're going to back up the truck.
Speaker 1: But there's another way to not rocket science. There's another
way to invest and this and I don't look you.
You manage my money, most of it for a reason,
my fiduciary, But there is another way. And I'm going
to challenge you here, okay, And I don't like doing this,
but I'll do this in just a second. So Zach,
and one of the things that Zach and I both
agree on is that politics is downstream of culture, right,
and that culture is downstream of God Almighty, because God
Almighty is upstream of every single thing. And Angel Studios
appears to believe the same thing. Angels makes movies that's
absolutely affirm faith. They're absolutely family valued, and they've done
this despite the fact that they were told you can't
do that, you can't build a family oriented faith oriented
studio that can't happen. They it breakout movies like Sound
of Freedom, breakout movies, or breakout programs like The Chosen. Recently,
they took on Snow White, they took on this ridiculous
Pixar movie that failed, and they won with King of
Kings that is right now streaming on their platform. It
was no longer in theaters, though it dominated theaters, and
it's part of a very important movement that you should
invest in. If you pay any money at all from media,
any subscription money at all from media, some of it
is stuff that doesn't even abide by your values. Like
you probably have a Netflix subscription, you might have a
subscription of other platforms. You might have a subscription to
a gaming platform. So why would you not buy a
subscription to the Angel Studio Premium Guild membership because you
get much much more. Number One, you go stream King
of Kings tomorrow, great story about Jesus Christ and an
animated feature that will draw kids into it. Number two,
you get to get two free tickets to any of
their theatrical releases every time they come out. Number three
stream all their fan creative programs and go back and
watch your favorites like Sound of Freedom and a whole
bunch of other shows that they're bringing in, all of
them around faith and family. Then there's this. We vote
this audience, the million people who've joined this, We vote
on the movies. They pipeline, they make, they distribute, they promote.
We're basically running the jerret So it's angel dot com
slash todd. That's angel dot com slash todd. So, Zach,
there's one other way to do this, and I get
this is it's a it's a narrow path, it's difficult
to get in. But what you do is you become
Debbie Wasserman Schultz. So that's that's step number one. And
let me run man, okay, man, let me run this
through you. This is from Quiver quantitative breaking. We just
caught another Stock Act violation. Representative w Wasserman Schultz just
filed a twenty twenty four purchase of new gold stock NGD.
She's the only member of Congress who've ever seen by
this stock. It has risen three hundred and thirteen percent
since you're trade. You just didn't dag that Schultz through
what what?
Speaker 2: What? No?
Speaker 1: I think you've just reacted physically well yeah.
Speaker 3: Well, because first of all, I love seeing congressional people
buying gold miners. Yeah, that tells me that.
Speaker 1: That's yeah all over it. So this is a gold
mining company.
Speaker 3: Oh yeah, yeah, yeah, yeah yeah.
Speaker 1: And uh oh look Zach, Yeah no, I'm just yeah,
you're all you're all a Whippley woodlash Now or whatever
his name is. You're all rubbed your fingers together, Mary Burns. Excellent.
Speaker 3: Yeah, because people like it and it and it's crazy
how blind the market is because people do not understand. Like,
I'll give you one of our top holdings. In the
last year, their cost of production per ounce has gone
up five dollars. Over the course of that same period
of time, the price of gold has gone up eight
hundred Okay, So like these guys are throwing off margins
that are more than double Google okay, as a gold
mining company, and nobody cares, nobody wants to own. These
things are pumping out so much free cash flow it
makes your head spin and no one's paying attention. I
just I love it. I'm sorry, I digress.
Speaker 1: Wait, actually was looking at our sub stack and I
just saw a d Wasserman Schultz as a premium subscriber.
Oh yeah, she might be listening to listening to this
talk about this. This came off of your This came
off of your Twitter. Sometimes you are show prep, or
at least your Twitter is, and you you you posted
something about or you reposted something about bitcoin, and we
talk about this from time to time. And I had
a discussion through the day because there's in this gym
and there's a young guy there and I'm warming up,
and hey, what do you do for a living?
Speaker 2: Oh?
Speaker 1: You know podcasts and radio. Oh that's interesting, et cetera.
Speaker 3: What do you do?
Speaker 1: Well, you know, I'm trying to be a professional athlete,
so work out here because James works out here. But
really I'm supporting myself through bitcoin. I go, oh, okay,
so you're successful off this. He goes, well, you know,
my dad bought bitcoin really really early, and he died
and passed it on to me. So I'm kind of
managing the portfolio. And so what does that mean, Well,
I sell a little herd there.
Speaker 3: This is what he said.
Speaker 1: So apparently dad bought a lot of bitcoin, because I
don't think he's stewarding it as much. It sounded to
me like he's spending it, which is different.
Speaker 3: This is from Sea.
Speaker 1: Wolf Capital talking gold Bitcoin meals under this on a
podcast with D M.
Speaker 3: Moses.
Speaker 6: Bitcoin's a hard one for me. You know, I much
prefer gold over bitcoin. You know, I think in the
near term the flows into bitcoin are going to keep going.
When the flows stop, it's over. I mean, there's nothing
else but flows, right, So I just but I think
that the central banks are going to keep buying gold.
I think that, you know, we have a nice pladium
size in the pladium or platinum, which is I think
now a substitute for gold. So if you go and
get a jewelry, right, much cheaper to buy a platinum
ringular or a lab diamond, yeah, or a lab platinum
in a lab diamond.
Speaker 2: Yeah, there you go.
Speaker 3: There you go, platinum in a lab diamond seting, go out,
perfect quarter.
Speaker 2: You see that.
Speaker 4: It's great.
Speaker 3: Tell my wife what you should be making these days?
Speaker 4: Actually making that.
Speaker 1: So he's talking about the flow continuing into bitcoin, but
governments and big entities continued by gold, like wa Washerman Schultz,
she's buying minors. Now does bitcoin?
Speaker 3: Does?
Speaker 1: Is there a possibility? I mean I guess everything's possible,
but is there a reasonable possibility that's bitcoin? I mean
ultimately fails for real, I can't imagine, but could that happen?
Speaker 3: Yeah? Well, in funny side note, actually, so that so
the two guys getting interviewed there were Porter Collins and
Danny Moses. I've actually had both of them on our
podcast before. And and the reason if that name that
those names sound familiar, they are two. They are two
of the animals. Well, one was an analyst, one was
a trader on the team in the Big Short where
Steve Corell was the boss. Right, remember, they're like, why
why are they bragging? Or no, no, why why are
they why are they why are they confessing? They're not confessing,
they're bregging, right they So if you go watch that
movie again, they talk, they say the name Danny Moses,
Porter Collins, They're they were on that Big Short team
that had that Big Short, big win. That one of
the reasons I was laughing in is because when I
interviewed them, we had a ridiculous amount of crossover and
our portfolios, like we were drawn to the same things.
And he immediately said, we've got we've got a position
in platinum and Palladium. We do too, So I I
just they're they're great guys, and I love the way
they think about things. But could bitcoin go to zero?
So in investing, there is something that we look up
look at called intrinsic value. Okay, so we intrinsic value
can be a lot of different ways. Uh, we bought
a we bought a South American airline company recently, all right,
and when we counted up the the value the net
value of all of their assets, so what we call
their NAV or their net asset value. Right, So it's
it's equity assets minus all liabilities. That equalled about eighty
five percent of their total market capitalization.
Speaker 2: Right.
Speaker 3: So I would look at that and say, okay, that
company has an intrinsic value of somewhere around eighty percent
of its market cap, meaning we could part it out
and sell the parts for this much.
Speaker 2: Right.
Speaker 3: That's the that's the internal value. The one of the
issues that bitcoin has is that its internal value, its
intrinsic value, is zero. Now, everybody that owns bitcoin, now
keep in mind, we own some bitcoin in all of
our client's portfolio, is a very small amount, and we
trade it. Recently. We sold it at one oh eight,
probably three or four months ago. The last time it
was there. Bitcoin got smacked down, We picked it back
up at seventy eight, wrote it back up. And the
reason we trade it like that is because it does
not have intrinsic value, meaning I'm not gonna sit there
and hold it while it drops. And now when I
say it doesn't have intrinsic value, I do not mean
that it doesn't have any utility. Right, it does have
some utility. It's it's a wonderful way to transfer money
from one part of the world to the other. But
what is its intrinsic value? It's zero, right, So could
it go to zero? Yes? Will it go to zero
at some point? I will be shocked if it does not.
And the reason I'll be shocked if it does not
is there is no asset on the face of the
earth that has zero intrinsic value that doesn't eventually go there.
People say, well, what about gold. Gold has a Hey,
if you could buy gold for one hundred bucks an ounce,
it has a ton of intrinsic value, right like, think
about what gold. Think how useful gold could be like
in the maritime industry, right like if gold was cheap
enough to where you could coach somebody's out drive in
gold and they never have to worry about erosion for
the rest of their lives. I mean, I'd be all
over that, right. What about electricity conducting if gold was
cheap would yes?
Speaker 2: Right?
Speaker 3: So gold has tremendous utility and tremendous intrinsic value, meaning
if the price of gold dropped to a certain level,
you would get it. See, you would see it get
used for all kinds of stuff. Not to mention it's fun,
it's nice to look at, right. But what is bitcoin?
And again this is coming from a guy that's owned
some This is coming from a guy that when it
first came out in nine said, quote unquote, this is
a shot across the butt bow of fiat currencies. But
if you want to get down to brass tax and
you want to be intellectually on now, that doesn't mean
you can't own bitcoin. But this is where I tell people,
be honest with yourself about what you own to thine
own self. Be true. Right, Know that to a certain
degree you're playing with fire. And when I look at
people that are sitting on giant winds of bitcoin, they
look at me and go, you're saying you should sell it?
And I go not all of it. But if you
you have a big life changing win, if you have
one hundred x win, if you have a two hundred
x win, why would you not memorialize some of that
win and put it into assets that do have an
intrinsic value. That way, regardless of what happens. You know,
if you own five bitcoin and bitcoin goes to one
hundred million dollars.
Speaker 1: You're gonna be in good shape, decent shape.
Speaker 3: Okay, yeah, okay, So doesn't all have to be one
or the other.
Speaker 1: You know, this is how and you tweeted this guy
named junked my Chronics wrote, someone said, I don't get
I don't get bitcoin. This is a Twitter covers I
don't get bitcoin. This guy writes back, imagine if Keeping
your car Idling twenty four seven produced Solve Seducos, you
could trade for heroin.
Speaker 3: I had to repost that because that was so funny, right, Like,
I mean, because that, if you think about it, that's
effectively what we're doing.
Speaker 1: Yeah, right, yeah, I mean, that's that intrinsic value thing.
I mean, it's not it's not the same thing. But
Ray Kroc, who was an unbelievable scoundrel, can we admit
he was a just greasy scoundrel of a man. Smart,
oh my gosh, smart vicious. He used to say about himself,
it's croc with the K like a you know, like
a crocodile, but not spelled that way, right, crocodile, not
spelled that way. He used to have fun going out
and making fools of business NBA students, and he'd get
up and offer them money and a bunch of it.
Who can tell me what business I'm in? The raised
their head. You're in the people business. No, wrong, you're
in the service business. No, I guess food business isn't
right now. You're in the business of pleasing families. No,
I'm in the real estate business.
Speaker 2: Right.
Speaker 1: I'm one of the biggest holders of real estates in America.
And that wasn't his idea. By the way, that someone
he was about to fail, and someone came to him
and created the McDonald was Leasing Corporation, and they rode
into the agreements with the franchisease. You had to purchase
your land or leach your land through the McDonald's corporation.
And that was the big turn. And he made a point,
I owned real estate in Times Square, New York. I
own real estate in downtown Los Angeles. In Tokyo, it
was a real estate play. So can a McDonald's franchise
go to zero?
Speaker 3: Sure?
Speaker 1: Right if they just do hold the horrible things. They
get bad reviews, they make people sick, they make porrible
dis iss decisions, but they've got that intrinsic value of
the land, and that's the thing about bitcoin that it
doesn't have. We'll continue to talk with Zach about this
because speaking of real estate, there's a brilliant plan the
likely new mayor of New York City is revealed, and
we'll run through this with Zach and maybe this is
an investment opportunity for us. In some former fashion. Zach's
also joined me in Mexico, went down to Port of
Art to Mexico with me to go to renew Dot Healthcare,
and we both had different outcomes. I'm at a different
time in my trim and I went down because my
lower back was really bugging me. In any debt lift
over like two seventy five, my back clicked. It felt
like my if any decently heavy squat, it felt like
my s I was shifting, which in your SI joint
that's not a good feeling. By the way, with weight
on your back that it feels like your backbone is shifting.
Not a big, not a fun thing. I get a
lot of pain doing this. So now I'm about three
and a half months after treatment with the stem cells
from umbilical cords in this world class lab. I've drawn
from this world class lab at Debt renew and I
have done now workouts with let's see deadlift at two
twenty five. I think a total of fifty reps at
that and then cleans and jerks in this and jush
sit ups. Not a hint of clicking gone. And I'm
not even through the rebuilding phase, Like my rebuilding tissue
phase doesn't end for six months. Already changed. So and
the numbness I was getting that's gone. Now this is
just me want of the lift ways. You have a
situation in your life where you need to move, you
need to work, You maybe can't use your hands, You're
you're at a different stage, and I don't think you're
the clicking stuff. But how's it for you right now?
Speaker 3: I you know, it's feeling, it's feeling really good. I
the knee isn't. Everything feels better than when I went
down there for sure. The the some of it is
some of it is. One of the tough things you
realize when you get some of these things is it
creates some body imbalance. So my knee is not where
I want it, But that's because I haven't gotten the
imbalance part of it figured out. Mean I was, I
was out shooting hoop with my boys last night and
I realized I was just putting a lot of weight
on my left knee in a in an abnormal way,
and it has to do with kind of being off kilter.
But man, the I went and did yoga for the
first time yesterday. I got back on my yoga. Yeah,
felt phenomenal. Woke up back felt great. So I you know, yeah,
I just if anybody's dealing with some of those long,
long term injuries that are bugging you, yeah, I can
recommend them enough. And it's also just a it's also
an enjoyable experience as well. Great people.
Speaker 2: Yeah.
Speaker 1: Yeah, And they really like the lab. And you look
at that lab and realize it's one step below a
biohazard lab. It's a big did they're doing a webinar, Zach.
I'm going to join them for this. It's a July
eighth to two o'clock Pacific. You go to the renew
website register for that. You have to sign up, and
they're gonna have their caregivers there. Steve is gonna be
there as a managing partner. Some of their docks and
stuff are going to be there. I'm gonna be there.
It's renew dot Healthcare r e n u e uh
dot Healthcare. So this is then likely.
Speaker 3: Well, one other thing I think it's important to point
out too, like they don't sponsor me, right like, so
I went down there and paid for my treatment like
everybody else. Yeah, that's won everybody. You know, when I'm
repping them, I have no business affiliation with them. I
went down and paid like everybody else else. I stayed
in the same place everybody else stayed. Yeah, and I
do it again. As a matter of fact, I will.
I will go down there again at some point.
Speaker 1: Thanks for pointing it out. And that's why I hope
you take your wife next time, because we do this time.
Speaker 3: But yeah, yeah, I thank you for.
Speaker 1: Pointing out that is important our e n U e
dot healthcare.
Speaker 3: The new.
Speaker 1: Nah I keep saying he's the new mayor. That's not
a FATA company. It's Andrew Colma's going to stay in
the race, and I think that this is just the
I think Democrats know if this guy gets in, he's
going to tank New York City and he's going to
create New York is a Los Angeles two point zero.
They know that people are watching this, They know that
outside of the Manhattan Corridor, this guy's scene as nuts.
Here's his plan for housing in New York.
Speaker 4: We can establish community land trusts to gradually buy up
housing on the private market and convert it to community ownership.
We can give tenants a right a first refusal to
buy out their landlords when buildings go up for sale.
And we can fully commit to a new era of
social housing, ending subsidies for luxury housing development and using
our wealth to build beautiful, high quality social housing projects
that offer good homes and strong communities to everyone. We
won't decommodify housing overnight, but we know what we have
to do, and we have history to guide us.
Speaker 1: That's a very very smart phrase, because who doesn't like housing,
who doesn't like society, who doesn't like being social? Very
very smart. But I love this as well. We're not
gonna then, that's a popularizing phrase, so he's using that
phrase to make it seem friendly. Then he goes and
obscures it. We're not going to decommoditize housing right away,
so then he uses a more complicated phrase for what
he intends to do. Is there a single model where
this has worked? You guys did this in Seattle. I
was there when this began, and they started buying up
hotels and putting street people in the hotels with no
rules like drink, sex, traffic, drug traffic. Do it everyone.
Is there a model in the States where this has
actually worked anywhere? And I'm open to it. Maybe there is.
Speaker 3: Not, not in the States that I'm aware of. I mean,
you could maybe point to some places in third world
countries where you came and instituted some stuff, but no,
not in a free now the one just to just
to be fair and try to be amimal about this.
The one thing that I think is somewhat interesting that
that I don't think and I'd have to look into it.
But giving current tenants a first ride a refusal to
pay a market price, I wouldn't have a problem. I
don't think I necessarily would have a problem with that,
because because it's not coercive, right, You're just getting them
a shot and saying, hey, would you like to would
you like to buy that you know, would you like
to buy this building instead? Or you get the ride
of first review if you if you put that that
language into a lease agreement, I would have no problem
with that. So here in lies the issue. It is
going to do a couple things. It's going to be
disastrous for the city because perversely it's going to make
real estate more rare in the sense that they're going
to suck it up. But it's going to be controlled
by the state. So I think what you're what you
will see is you will see inadvertently way less so
apply at the lower end, which will make prices worse
or there just won't be any availability. And then it's
probably going to hit prices at the higher end, which
means less property tax, et cetera for the state. So
it's just basic economics. And like he said in there,
he goes, and we've got history and our and I'm
like sitting there going which one yet? So history through
this idea on the trash heat man, right, like your
and and and and and the unfortunate part of it.
The unfortunate part about this argument is that it always
descends into like, well, that's your worldview, that's what you believe,
that's not what I believe, and you go, Okay, I
understand why you're approaching it this way. But this is actual,
very basic economics. Okay, let's just picture this in a
city that's too expensive to live, which means there is
an off balance and supplying to me. Yep, the government
is going to step in. Who is not a natural buyer, right,
meaning they don't respond to market moves or gyrations. They're
just buy it using the public checkbook. They're buying up
more land and effectively giving it to people that couldn't
otherwise afford it. Okay, so a that will make those
properties much more scarce, right, there will be less supply. Uh.
And then on top of it, I remember I got
in a debate in college in a philosophy class about
social No, yeah, it was philosophy. We're debating socialism versus capitalism.
Can't remember how we got out of that topic, but
we were going. I was going back and forth with
professor because you know, everybody's like, you go to college
to get liberal. I went to college to debate and
drive my professor's nuts just because I wasn't much more soist.
Oh yeah, this is I was like, this is nonsense.
And I remember looking at the class. Oh, hey, guys, stop,
let's let's say this. Let's say you got a Street
of Dreams that you've been working your whole life to afford,
and you finally get on there. You've been living on
the Street of Dreams for a year, two years, whatever,
and all of a sudden you find out that the
state bought up eighty percent of the houses and the
Street of Dreams and it's going to give it to
low income people. What are you going to do? Everybody
in the class said, we're going to sell the house,
get out of there, right. Why Because it's not just
the economic dynamic that housing, the quality of that housing
is going to go in the tank. Those things are
going to be magnets for crime. It's just it's just
unfortunate because the outcome is certain. You don't even need
to run the experiment we already have.
Speaker 1: If you've different lived around government housing and I have,
or next door to it, or in a neighborhood where
it's dominated by housing, not vouchers, but housing. Subsidies. If
you've different experienced this, there's a reason that what Michelle
Obama called food ghettos, there's a reason they exist. And
there was a UCLA professor who set out so look
into this with the intention of killing gentrification, because he
had determined emotionally that gentrification was a horrible, horrible, horrible thing.
And then he went looked at the data. And I
want to talk about this too with you in just
a second. Sac there's like gentrification of housing.
Speaker 3: This is what this is called.
Speaker 1: There's this whole idea of independent housing. Now that you
have this these independent dwellings in the backyard and you
can become this you know, little Airbnb thing. There's also
this reality of independent businesses. And we have reserved a
slot on this program from day one for businesses that
could not afford to advertise here. Alan SOPs is one
of those businesses. Okay, here's why it is. Because soap
is a very very low margin business. We do this
because we love the mission of Allan's and it's not
just the mission. The soap is amazing soap. It's made
in America, it's gentle, it's it has no chemicals in it,
all natural and it's the mission that we support. It
started with Alan thirteen. He's been through about eighteen operations
nonverbal because of autism. He was the reason for this
because his parents wanted to have a place their son
could work. Ian his brother joins him, Amy, and just
to just imagine that you're neurotypical, you're in And this
was her. She was in college, neurotypically, doing well, and
then she started to get brain fog and have trouble
like man, I can't read anymore, and she got autism
in her late teens early twenties. She works at Allen's
and she's thriving. And the soap is at the core
of this. So it's an independent company. It's small. They
could never afford to advertise here. We do this because
we love them and we love John. So that's not
a sob story by the soap. If you love the soap, subscribe.
If you don't love the soap, then just you know,
love the people. It's Alan Soaps, Alan Soaps dot Com,
slash Todd tempercent off all other products there, Alan soaps
dot Com, slash Todd so Zach. When I lived in
what is correctly called the ghetto, I noticed that there
were no nice stores. That the grocery stores had substandard goods.
Because remember I grew up a kid in Spokane Valley.
We weren't rich, far from it. In fact, we were,
you know, lower middle class. I noticed that the like
silly things like the beef jerkys in the little so
called you know, little tiny convenience stores were a day
from expiring. Sometimes after that, I noticed that the restaurants
had like really decrepit seating and maybe questionable health practice.
Speaker 3: Is great food.
Speaker 1: By the way, there's a place this guy he knew branding.
It was called barbecue. That was that's what it's called.
First time it went in there, and the one white
dude walking in and I sit down, he goes, want
to get you, And I said, uh, I guess I'd
like to try the ribs. Seems like a specially. What
do you want to drink? I go, I said, die
cocouse grape juice. I said no, I said, diet cocyus No, no, no,
diet coke with ribs grape juice. So he made me
have grape juice. By the way, grape juice and ribs.
I'm telling you something. The way this man cooked these ribs. Incredibly.
He cooked them out of fifty five gallon old oil drums.
I'm not even sure the oil was out of it.
I didn't care. But that was the rawity because the
people in the neighborhoods couldn't afford the beef jerkey that
had a week left on it. They couldn't afford the
name brands. There are companies that they're not predation companies.
They know who they're targeting. But the crazy thing is,
and I finally noticed this. I started to drive over
to the QFC, the Knights or Food Place when I
started to make a little bit of money, and I
had my little studio apartment in the true ghetto building
where they were drive by shootings. I saw a dead
man in my elevator. I knew he had a kid, heartbreaking.
The food was less expensive. That was the crazy thing.
I go to QFC. It's better food, it's less expensive,
and in the ghetto, they're able to take advantage of people,
not just and I'd up saying that these store owners
were predators, but no one wanted to be there. It's
a long drive to QFC. I had a car, A
lot of people didn't. So this guy from UCLA. He
did this study and he was looking at situations like this. Okay, well,
the solution's not it's not gentrification. You know Whatady found out,
gentrification helps the black communities because these people have held
their homes forever. They have no idea they could make
this much money. And those who don't sell, they all
of a sudden are surrounded by nicer things. Their kids
go make better money, they have better job opportunities. Then
they get to clean up their houses, and then they
start to get hip to Oh wow, you know the
Johnson's up the street. They sold their house for ten
times what they bought it for. They don't take that
money and say, hey, let's move to another ghetto. They
take that money and say, hey, you know what, we
have some cash, let's go move to a nicer place
for kids, put them through these private schools. He had
his whole heart change from this.
Speaker 3: Well, I mean, are we making the argument that desegregation
isn't better for society written large?
Speaker 2: Right?
Speaker 3: Because I mean that's because it kind of gets down
to a segregation issue, right. The idea is, Yeah, the
same ethos that drives this whole idea about being anti
gentrification is the same ethos that drives let's bring back
black only dormitories on college campuses. Yeah, where you go.
And here's the other thing that people if I if
I had if I had a if I had a
way to if I was talking full a room for
young people at college level. Yes, And the debate of
the topic about socialism versus capitalism came up. The one
thing I would say to them, as guys, first of all,
you're going to learn in life that there is no
perfect solution. That what we need to look at is
the costs and benefits of each thing, right, and what
gives us the most at the least amount of cost.
And when you look at capitalism, it is not perfect.
There are some downsides to it. Why do we stick
with it? Because there's way less? Yeah, right, there's way less.
Will we see some inequality peak up at per cup
at times? Yeah, But I'm gonna sit here and look
at you and tell you right now, I think the
majority of wealth and equality of this country is not
something that can be fixed by government. I think it's
something that's been caused by government, agreed, right, And and
it is this unholy union between government and big business.
It's the Federal Reserve has played a key role in this.
People who have the Federal Reserve play role. Well, when
you come in after a disaster, right, and normal people's uh,
you know, normal people's balance sheets, normal people's credit scores
have been wrecked. And in that environment, you dumped trillions
of dollars into the market and artificially lower interest rates.
Speaker 4: What did you just do?
Speaker 3: Okay, you you just excluded everybody because they're they've lost
their house, their credits wrecked, they can't buy house anyway.
So now the only people that can take advantage of
record low interest rates and all the stimulus money you
pumped out there are the people that are already rich.
And guess what they get to take that zero percent
interest rate and go buy up neighborhoods full of four
closed houses at fifty cents on the dollar. Right, So
you're sitting there talking about housing getting too expensive. I'm
sitting there going you guys NodD adhering the capitalist policies
are the biggest reason for housing being where it's at
in the last twenty years. Well, so why don't we
focus why don't we focus on that?
Speaker 1: Well said man, you get heated with this stuff.
Speaker 3: You know, man, I do, because when you see the
folks getting lied to, yeah, and they're getting told that
this one thing that has been the greatest lever to
get people out of the mere and the muck of
poverty that has ever been introduced, and that you're going
to sit there and tell them that the greatest enslaver
of people, socialism is the answer. Not only are you wrong,
you're a moral boom.
Speaker 1: It's good to have you on the show, my brother.
Thank you so much for wise counsel Zach Abraham, Know
Your Risk podcast dot com. This is the Todd Herman Show.
Please go, be well, be strong, be kind, and forget trying.
When you stop that trying, just go follow the light
of Jesus Christ.