WEBVTT 1 00:00:03.839 --> 00:00:12.919 A lot of them, fots of interest and an individual lots. 2 00:00:15.519 --> 00:00:22.879 This is the show, all right, everybody, welcome to every 3 00:00:22.879 --> 00:00:27.480 one book show and this uh Monday me fifth. Hope 4 00:00:27.480 --> 00:00:31.600 everybody had a fantastic weekend. I managed to get sick 5 00:00:32.960 --> 00:00:35.280 during the weekend, but here I am in spite of that, 6 00:00:35.560 --> 00:00:41.359 so here I am. Also. Yeah, we'll talk about destiny 7 00:00:41.359 --> 00:00:43.200 in a minute. All right, let's jump in. We we 8 00:00:43.200 --> 00:00:46.719 We've got a lot of talk about. But I think 9 00:00:46.759 --> 00:00:52.159 the big story from the weekend really was one Buffet uh. 10 00:00:52.759 --> 00:00:57.439 One buffet, the CEO A Books of Halloway uh is built. 11 00:00:57.840 --> 00:01:00.479 This is a business with today more than one point 12 00:01:00.520 --> 00:01:04.200 one six trillion dollars. It's only it's the only non 13 00:01:04.359 --> 00:01:08.959 tech business that is worth over trillion dollars. I guess 14 00:01:09.079 --> 00:01:12.200 there's one other one, which is like the Saudi Oa company. 15 00:01:12.640 --> 00:01:15.959 But other than that, this is it the only non 16 00:01:16.000 --> 00:01:23.120 tech trillion dollar company anyway. One Buffett has every year 17 00:01:23.840 --> 00:01:28.120 his annual shareholder meeting, and during that meeting he has 18 00:01:29.120 --> 00:01:31.359 thousands of people show up. I think the eighteen thousand 19 00:01:31.359 --> 00:01:35.079 people over the weekend, investors from all over the world, 20 00:01:35.239 --> 00:01:40.519 institutional investors, individual investors. CEO off Apple was there and 21 00:01:41.680 --> 00:01:45.319 he takes questions and they just do a lengthy ask 22 00:01:45.400 --> 00:01:48.040 me anything and questions about anything. He's been doing this 23 00:01:48.439 --> 00:01:50.439 for many, many years. He used to do this with 24 00:01:50.519 --> 00:01:56.359 Charlie Mange's partner, and Charlie died was last year, I think, 25 00:01:56.400 --> 00:01:59.159 at the age of ninety nine. One Buffett is ninety four. 26 00:02:00.120 --> 00:02:05.760 And he answered question followers right and done this every year, 27 00:02:05.959 --> 00:02:10.439 and in this time with eighteen thousand people there. Just 28 00:02:10.719 --> 00:02:14.680 as this was winding down, he announced that this was 29 00:02:14.719 --> 00:02:20.000 actually his last annual shareholder meeting. He was retiring. He 30 00:02:20.120 --> 00:02:25.479 was leaving a CEO. He had chosen his replacement, greg Abel, 31 00:02:26.240 --> 00:02:28.800 who didn't know that Wan Buffer was going to announce 32 00:02:28.840 --> 00:02:35.599 this over the weekend, and and he bets it. He's 33 00:02:35.719 --> 00:02:40.120 he's walking away at age ninety four. I wam above 34 00:02:40.199 --> 00:02:50.759 has had just a stunning career, a stunning career. And 35 00:02:52.599 --> 00:02:55.639 you know he started in nineteen sixty five. He was 36 00:02:55.719 --> 00:03:00.719 running at the time a small hedge fund. And you know, 37 00:03:01.439 --> 00:03:09.319 somebody at Berkshire. Berkshire was a small textile business in decline, 38 00:03:09.719 --> 00:03:13.879 like most textile businesses, I guess somebody he had bought 39 00:03:13.879 --> 00:03:17.599 a small stake in Bookshire and the owner had reneged 40 00:03:17.639 --> 00:03:22.520 on a deal and was pitched one Buffet off and 41 00:03:22.719 --> 00:03:27.800 he bought the company. He basically bought the company, and 42 00:03:31.199 --> 00:03:35.639 from there he has turned Brookshire Had the Way into 43 00:03:36.560 --> 00:03:40.919 what can only be called the conglomerate. It owns multiple 44 00:03:40.919 --> 00:03:45.800 businesses in multiple business industries. It owns one hundred percent 45 00:03:45.800 --> 00:03:50.439 of these businesses. There's a lot of insurance companies. He 46 00:03:50.719 --> 00:03:53.759 purchased the first insurance company nationally Demnity nineteen sixty seven. 47 00:03:54.840 --> 00:04:02.520 Today it owns sixty different subsidiary businesses, all kinds of sizes, 48 00:04:02.919 --> 00:04:07.639 all kinds of industries. You know, you probably know the 49 00:04:07.680 --> 00:04:11.719 Beg insurance company that it owns his Geico. But they 50 00:04:11.759 --> 00:04:16.480 own just a ton of businesses outright, and then these 51 00:04:16.519 --> 00:04:24.319 businesses are profitable, so they throw cash right out and 52 00:04:24.360 --> 00:04:27.319 then want Buffett uses that cash to make investments, not 53 00:04:28.480 --> 00:04:32.399 buying out outright companies, but making investment. He's a big 54 00:04:32.439 --> 00:04:38.199 investor in American Express, in Coca Cola. He was a 55 00:04:38.240 --> 00:04:41.439 big investor at some point in JP Morgan Chase. I 56 00:04:41.480 --> 00:04:43.920 think it was a city bank, one of the one 57 00:04:43.920 --> 00:04:46.639 of the big banks. And then of course more recently 58 00:04:47.079 --> 00:04:49.800 we'll get to this invested in Apple and has sold 59 00:04:49.879 --> 00:04:53.199 much of his investment in Apple before the decline in 60 00:04:53.240 --> 00:04:58.720 Apple stock. Amazingly, Uh, when. 61 00:05:00.759 --> 00:05:01.040 You know. 62 00:05:02.800 --> 00:05:07.600 When one Buffett bought Books you Hathaway, he bought it 63 00:05:07.920 --> 00:05:15.120 for about, you know, eleven fifty a share. Today, Booksher 64 00:05:15.160 --> 00:05:20.959 Hathaway trades for eight hundred thousand dollars a share. Eight 65 00:05:21.040 --> 00:05:25.000 hundred thousand dollars a share. If you had bought in 66 00:05:25.040 --> 00:05:26.920 to bookshit, you couldn't. But if you'd bought into Books, 67 00:05:26.959 --> 00:05:29.360 you had Away at eleven fifty. Just think of the 68 00:05:29.399 --> 00:05:35.000 return you would have on that Booksha Hathaway has made millionaires, 69 00:05:35.040 --> 00:05:38.199 centy millionaires. People who invested in the stock and held 70 00:05:38.240 --> 00:05:42.759 it over many years have made a literally a fortune 71 00:05:42.920 --> 00:05:48.040 off of the stock. It's closing in on you know, 72 00:05:48.079 --> 00:05:50.240 it's eight hundred thousand. One day, it'll be in a million. 73 00:05:51.120 --> 00:05:53.759 It never it never has stock splits, although it does 74 00:05:53.800 --> 00:05:57.560 have another class of shares with smaller voting rights that 75 00:05:57.639 --> 00:06:02.560 you can buy for smaller denomination. They've never they paid 76 00:06:02.600 --> 00:06:07.600 one dividend in nineteen sixty seven. They do not pay dividends, 77 00:06:07.839 --> 00:06:15.199 which is interesting in and of itself, And of the 78 00:06:15.279 --> 00:06:19.600 last sixty years, the stock has only declined in eleven 79 00:06:20.279 --> 00:06:25.800 of the last sixty and I think it outperforms. It 80 00:06:26.000 --> 00:06:29.920 performs pretty much any index you look up. It's just done, 81 00:06:31.000 --> 00:06:35.120 you know, phenomenally well. And it it And for a 82 00:06:35.160 --> 00:06:42.600 company that's so well diversified, very very very very unusual, 83 00:06:44.079 --> 00:06:46.959 one Buffet himself is worth one hundred and fifty billion 84 00:06:47.040 --> 00:06:54.199 dollars for many years, for many years, it seems like. 85 00:06:56.079 --> 00:06:56.120 It. 86 00:06:56.959 --> 00:06:58.800 For many years, one Buffalo was the richest man in 87 00:06:58.839 --> 00:07:04.800 the world. He's been overtaken by by Bill Gates and 88 00:07:04.920 --> 00:07:06.800 uh and Jeff Bezos and others. 89 00:07:07.759 --> 00:07:07.879 Uh. 90 00:07:09.000 --> 00:07:14.879 Anyway, it's just a just a This guy is a genius. 91 00:07:15.079 --> 00:07:20.120 He is a you know, unique, the greatest investor in 92 00:07:20.199 --> 00:07:25.040 American history. Uh, he is. I think his real strength 93 00:07:25.120 --> 00:07:29.279 is investing and in companies and then holding that stock 94 00:07:29.360 --> 00:07:33.519 for a very long time, buying companies with great management. 95 00:07:33.879 --> 00:07:36.480 He's not one of these guys who buys companies and 96 00:07:36.720 --> 00:07:39.959 replaces their management makes them better. Now. He buy his 97 00:07:40.040 --> 00:07:43.879 companies with great management who is convinced can grow and 98 00:07:43.959 --> 00:07:47.480 be successful that are very profitable, but he believes can 99 00:07:47.519 --> 00:07:51.480 be become even more profitable, and he holds them and 100 00:07:51.600 --> 00:07:59.120 his record is astounding. He likes brand names companies that 101 00:07:59.199 --> 00:08:04.000 have proven to be successful over the long term. That's 102 00:08:04.040 --> 00:08:06.600 why he's an owner, big owner of American Express in 103 00:08:06.639 --> 00:08:10.240 Coca Cola, both of which he's held for over two decades. 104 00:08:11.399 --> 00:08:14.480 By the way, Coca Cola, he bought a big steak 105 00:08:14.480 --> 00:08:17.360 in Coca Cola. When do you remember, Well, most of 106 00:08:17.360 --> 00:08:20.040 you don't remember because you're too young. But Coca Cola 107 00:08:20.160 --> 00:08:24.879 in the eighties changed the formula and with new coke, 108 00:08:26.199 --> 00:08:29.120 and then there was a huge backlash. It stocked plummeted, 109 00:08:29.959 --> 00:08:32.080 and then it reverted back to the old coke and 110 00:08:32.120 --> 00:08:35.519 the old formula. Supposedly, although it changes his formula all 111 00:08:35.559 --> 00:08:39.960 the time. I hear well, it went down a lot 112 00:08:40.360 --> 00:08:42.879 when the new coke came out. WM Buffett bought a 113 00:08:42.879 --> 00:08:44.840 big chunk of it and made a lot of money 114 00:08:44.879 --> 00:08:48.679 even in the early days. American Express is a business 115 00:08:48.720 --> 00:08:54.039 that's done phenomenally well. But then those are companies, those investments, 116 00:08:54.080 --> 00:08:57.360 other companies where he's bought outright, companies like Seize Candy, 117 00:08:58.840 --> 00:09:01.960 which he he bought for twenty five million dollars in 118 00:09:02.039 --> 00:09:08.200 nineteen seventy two. Today they generate two billion dollars in profits. 119 00:09:09.159 --> 00:09:16.080 Two billion dollars in profits. He bought net Jets, the 120 00:09:16.159 --> 00:09:20.360 private Jet, fractional ownership company and leasing company Forest River, 121 00:09:20.440 --> 00:09:23.720 which manufactures with creational vehicles. He owns Dairy Queen, he 122 00:09:23.759 --> 00:09:28.320 owns Nebraska Furniture, mort helps It, Brooks Diamonds, Benjamin and more, 123 00:09:29.279 --> 00:09:31.480 Brooks Running Shoes. Actually, I think my Running Shoes A 124 00:09:31.480 --> 00:09:36.120 Brooks Running Shoes, and Dousell Batteries, and then many, many, 125 00:09:36.200 --> 00:09:44.759 many more companies. The interesting thing is that in finance, 126 00:09:45.960 --> 00:09:49.080 you know, if you look at the theory the corporation, 127 00:09:49.240 --> 00:09:52.159 if you look at help businesses should be run. I'm 128 00:09:52.240 --> 00:09:54.039 actually gonna be talking about this in my course for 129 00:09:54.120 --> 00:10:01.200 the Peterson Academy. Conglomates don't make sense. It's impossible for 130 00:10:01.320 --> 00:10:06.480 one CEO to be good at managing sixty different businesses 131 00:10:07.360 --> 00:10:12.600 in different areas, in different fields. What makes Books and 132 00:10:12.679 --> 00:10:16.519 How the Way run so well? What explains its success 133 00:10:18.360 --> 00:10:21.519 is one Buffet's ability to identify great managers and then 134 00:10:21.639 --> 00:10:25.639 step back and leave them alone and not try to 135 00:10:25.679 --> 00:10:31.279 manage them. He treats it as almost a passive investment. 136 00:10:32.200 --> 00:10:34.559 He does all the work of fund, does all the 137 00:10:34.600 --> 00:10:44.679 homework affront, and then makes the investment. He's missed some 138 00:10:44.720 --> 00:10:48.080 great opportunities. He had an opportunity to invest in Microsoft 139 00:10:48.080 --> 00:10:50.679 in the nineties. He had an opportunity to invest in 140 00:10:50.679 --> 00:10:55.159 Amazon in the nineties and he didn't. Microsoft is a 141 00:10:55.159 --> 00:10:57.879 little surprising because he's really good friends with Bill Gates. 142 00:10:58.320 --> 00:11:01.200 They used to play Bridge online together and then they 143 00:11:01.200 --> 00:11:09.840 played in person as well. The only tech stock they 144 00:11:09.879 --> 00:11:14.519 ever bought was in twenty sixteen, they bought Apple. At 145 00:11:14.519 --> 00:11:20.480 the time, Apple was a huge company, and yet what 146 00:11:20.519 --> 00:11:26.720 warm Buffet identified was the customer loyalty, the potential for growth, 147 00:11:27.879 --> 00:11:31.000 and the fact that on a you know, they weren't 148 00:11:31.039 --> 00:11:38.919 that expensive when you considered the opportunities for growth. He 149 00:11:39.000 --> 00:11:44.240 invested twelve billion dollars in Apple in twenty sixteen for 150 00:11:44.320 --> 00:11:48.679 six percent of the company, and that investment has yielded 151 00:11:48.720 --> 00:11:52.440 one hundred and fifty billion dollars in capital gains, So 152 00:11:52.840 --> 00:11:56.039 he more than ten Exter's investment in Apple, one of 153 00:11:56.080 --> 00:12:01.639 the biggest companies in the world at the time. He 154 00:12:02.440 --> 00:12:07.080 sold much of the Apple steak before the latest decline 155 00:12:07.320 --> 00:12:11.840 in tech stock that has happened. I mean, much of 156 00:12:11.879 --> 00:12:18.759 what one Buffett has done is not what one would 157 00:12:18.759 --> 00:12:23.720 suggest to investors to do. He concentrates investments, he buys 158 00:12:23.759 --> 00:12:28.519 whole companies, He's diversified he's super diversified, and he's yielded 159 00:12:28.799 --> 00:12:36.720 amazing return. If I own books you had Away, I 160 00:12:36.720 --> 00:12:42.519 would sell, I would sell the probability that anybody as 161 00:12:42.519 --> 00:12:48.200 smart and able and good as I'm sure the guy 162 00:12:48.240 --> 00:12:51.480 who's going to replace him, is the probability that somebody 163 00:12:51.960 --> 00:12:59.799 could replicate what One Buffet has done. You know, I 164 00:12:59.879 --> 00:13:03.480 just think is too small to justify the investment. I 165 00:13:04.080 --> 00:13:09.600 find it hard to believe that given the conglomerate, you know, 166 00:13:09.720 --> 00:13:14.200 lots of businesses, different businesses, Nature Bookshire had Away, that 167 00:13:14.279 --> 00:13:16.559 it can continue to perform in the market over the 168 00:13:16.639 --> 00:13:22.000 long run without One Buffet and Charlie Munger at the Helm. 169 00:13:22.559 --> 00:13:25.639 One Buffet always said Charlie Munger was the strategist. He 170 00:13:25.720 --> 00:13:30.240 was the guy who executed. You know, I think they 171 00:13:30.279 --> 00:13:33.840 were both pretty brilliant individuals. One of the great things 172 00:13:33.879 --> 00:13:39.039 about One Buffet is he was always, you know, a 173 00:13:39.039 --> 00:13:43.559 straight shooter. He was optimistic, he was a real believer 174 00:13:43.600 --> 00:13:48.000 in America, real believe in American success, and he put 175 00:13:48.000 --> 00:13:52.000 his money where his mouth is. When during the financial crisis, 176 00:13:52.039 --> 00:13:54.320 when I can't remember which one of the banks was 177 00:13:54.320 --> 00:13:58.200 a Chase of City was, maybe it was. Both were 178 00:13:58.240 --> 00:14:03.960 in trouble and the stock price had plummeted. Uh you 179 00:14:04.000 --> 00:14:08.399 know one Buffet bought a huge chunk, but buying a 180 00:14:08.440 --> 00:14:14.240 huge chunk express confidence in the banks, which ultimately generated 181 00:14:14.360 --> 00:14:19.120 I think a kind of others to buy the stock 182 00:14:19.279 --> 00:14:23.679 and to stabilize, to stabilize the market. So you know, 183 00:14:23.679 --> 00:14:26.879 Buffett has been an amazing force for good. Now. He 184 00:14:27.039 --> 00:14:31.240 is sadly not a Leslie capitalist. He is very much 185 00:14:31.360 --> 00:14:36.360 a mixed economist, a mixed mixed economy. But he and Charlie. 186 00:14:36.159 --> 00:14:43.240 Monga were just smart, uh, you know, rational in most cases, 187 00:14:44.120 --> 00:14:48.879 straight shooters, and you can't you can't argue with this success, 188 00:14:49.519 --> 00:14:51.720 unequivocally brilliant investors. 189 00:14:52.639 --> 00:14:55.759 Buffett does not give to charity. I mean what he 190 00:14:55.879 --> 00:14:59.759 has given, he's given to the Gates Foundation. But you 191 00:14:59.759 --> 00:15:03.720 won't find any buildings named after him. You won't find 192 00:15:03.840 --> 00:15:08.080 any you know, scholarship funds. He just doesn't give to 193 00:15:08.159 --> 00:15:11.559 charity other than the Gates Foundation. And I don't know 194 00:15:11.600 --> 00:15:15.240 what percentage ultimately his wealth you will give to the 195 00:15:15.279 --> 00:15:20.799 Gates Foundation. The one thing I don't like about him, 196 00:15:20.919 --> 00:15:23.240 and this is something everybody else does like, but it's 197 00:15:23.279 --> 00:15:25.919 just me. He lives in the same house he's lived 198 00:15:25.879 --> 00:15:28.759 to the sixties. He drives the same car. He drives 199 00:15:28.799 --> 00:15:36.960 a beaten up car. He doesn't he doesn't use his 200 00:15:37.080 --> 00:15:46.639 wealth to enjoy material benefits, material values, which I think 201 00:15:46.720 --> 00:15:49.240 is unfortunate and sad. I think he's got a certain 202 00:15:49.279 --> 00:15:54.840 guilt associated with the wealth. He certainly believes. He's almost 203 00:15:54.919 --> 00:15:58.720 like he's read John Walls that his wealth is a 204 00:15:58.720 --> 00:16:01.000 product of luck. I don't have quote in front of me, 205 00:16:01.120 --> 00:16:03.559 but he has a whole talk that he gives where 206 00:16:03.600 --> 00:16:06.559 he says, you know, I was born in the right century, 207 00:16:06.679 --> 00:16:08.279 I was born with the right genes, I was born 208 00:16:08.320 --> 00:16:12.759 to the right parents. I did nothing. It's my genes, basically. 209 00:16:13.440 --> 00:16:16.000 And you can see that if he doesn't believe that 210 00:16:16.120 --> 00:16:21.159 he earned it in a sense of it's him, he 211 00:16:21.240 --> 00:16:23.720 doesn't like to spend it because in a sense it's 212 00:16:23.759 --> 00:16:27.360 not his. So that's I think sad. I think the 213 00:16:27.399 --> 00:16:30.559 guilt part is sad. That not associated with himself is sad. 214 00:16:31.000 --> 00:16:35.039 This is the evil of philosophy. But hey, all of 215 00:16:35.080 --> 00:16:38.480 that I put aside and just salute the guy for 216 00:16:39.200 --> 00:16:44.200 just an amazing track record as an investor, and an 217 00:16:44.240 --> 00:16:49.120 amazing philosophy as an investor, and the ability to stick 218 00:16:49.159 --> 00:16:52.200 to it and not to change, and not to go 219 00:16:52.240 --> 00:16:55.840 what's sexy and what's hot, and too willing to underperform 220 00:16:55.960 --> 00:17:00.120 certain years in order not to deviate from your strategy. 221 00:16:59.720 --> 00:17:05.279 So Charlie Manger died last year. Want Buffett retires this year. 222 00:17:05.920 --> 00:17:11.559 To giants of American business, particularly of American finance, they will, 223 00:17:11.680 --> 00:17:15.640 I think forever be remembered as some of the greatest 224 00:17:15.640 --> 00:17:25.720 investors ever. All right, from that to another success story. 225 00:17:26.079 --> 00:17:33.319 But that is being tempered. You know, Google was found 226 00:17:33.559 --> 00:17:40.240 in the anti just case, found guilty of being a 227 00:17:40.359 --> 00:17:46.039 being a monopolist, even though it exhibits none of the 228 00:17:46.039 --> 00:17:49.920 behavior of a monopolist, and the judge admits that. But 229 00:17:50.000 --> 00:17:54.160 any case, we've covered that before. Any case. Now, the 230 00:17:54.279 --> 00:18:05.400 Justice Department under Republicans under Donald Trump has has demanded 231 00:18:05.680 --> 00:18:11.920 that the company be broken up. And they're in front 232 00:18:11.920 --> 00:18:14.880 of a judge now and actually as we speak or 233 00:18:15.000 --> 00:18:23.279 or over this period, they are discussing. You know, there's 234 00:18:23.319 --> 00:18:26.160 a you have to the testimony before judge and then 235 00:18:26.160 --> 00:18:27.880 the judge makes the decision of whether to break the 236 00:18:27.920 --> 00:18:30.920 company up or not. Google can still appeal it, but 237 00:18:32.119 --> 00:18:34.640 it's a big deal if the judge side decides to 238 00:18:34.680 --> 00:18:39.960 break it up. It's just a it's just a you know, 239 00:18:40.160 --> 00:18:44.480 just a horrible hobble example of the use of anti trust. Sadly, 240 00:18:45.160 --> 00:18:48.599 it's something that Trumpet administration is completely committed to. They're 241 00:18:48.759 --> 00:18:53.559 very opposed to big tech. They are strong believers in 242 00:18:53.640 --> 00:18:59.319 an aggressive antitrust regime. Uh, not just with regard to tech, 243 00:18:59.400 --> 00:19:02.279 but with regard to other companies as well. I think 244 00:19:02.319 --> 00:19:08.359 Trump views anti trust, like almost everything else, as a means, 245 00:19:08.400 --> 00:19:13.680 but as leverage against companies, as leverage against CEOs, as 246 00:19:14.559 --> 00:19:17.599 a reason for companies to come and be nice to him. 247 00:19:18.480 --> 00:19:20.960 There's a big case right now with Capital One and 248 00:19:21.000 --> 00:19:25.400 Discover wanting to merge, and stories are Donald Trump is 249 00:19:26.000 --> 00:19:30.359 kind of holding this above Capital One, which I think 250 00:19:31.160 --> 00:19:34.680 debanked him at some point, and Trump issuing them, and 251 00:19:34.920 --> 00:19:36.599 he's trying to get a settlement out of them. And 252 00:19:36.640 --> 00:19:39.160 part of what he's dangling in front of them is 253 00:19:39.200 --> 00:19:41.559 if you give me the settlement, I'll get the Justice 254 00:19:41.559 --> 00:19:46.880 Department to approve your merger. So Trump is as bad, 255 00:19:46.960 --> 00:19:49.799 if not worse than any other president when it comes 256 00:19:49.799 --> 00:19:53.279 to anti trust. The worst part is that he uses it. 257 00:19:54.400 --> 00:19:58.039 He uses it to blackmail companies, just like he uses 258 00:19:58.119 --> 00:20:02.440 tariffs just like he uses his power more broadly to 259 00:20:02.559 --> 00:20:09.200 blackmail people. And uh, this is not me being negative 260 00:20:09.200 --> 00:20:13.640 and Trump, this is me being factual. Just just want 261 00:20:13.640 --> 00:20:16.440 to clarify, I mean, check it out. You can see 262 00:20:16.440 --> 00:20:25.079 story after story after story. Anyway, last week, the CEO 263 00:20:25.480 --> 00:20:32.680 of Alphabet uh Sunda be Chy uh testified, uh that 264 00:20:33.680 --> 00:20:36.720 you know, testified to the fact that the breakup of 265 00:20:36.759 --> 00:20:42.680 Google's Internet search search uh you know, would devastate the 266 00:20:42.680 --> 00:20:46.319 company's business model. It would hamper its ability to invest 267 00:20:46.319 --> 00:20:51.519 in new technology. Uh and uh you know he he he, 268 00:20:51.680 --> 00:20:59.160 He said that the proposed remedies are extraordinary and unjustified 269 00:21:00.359 --> 00:21:04.079 and and and just wrong. He said that they would 270 00:21:04.200 --> 00:21:07.519 leave a company that's worth today one point ninety five 271 00:21:07.720 --> 00:21:16.279 trillion dollars with intellectual property that has no value because 272 00:21:16.440 --> 00:21:19.519 it will separate its businesses out the advertising from the 273 00:21:19.519 --> 00:21:27.599 search engine. It is the combination of what Google has, 274 00:21:28.799 --> 00:21:31.480 which is where the value comes from. You start breaking 275 00:21:31.519 --> 00:21:35.400 it up, it's not going to be more valuable as 276 00:21:35.480 --> 00:21:39.359 pieces than the original company. The original company is as 277 00:21:39.440 --> 00:21:49.039 valuable as it is because of the intergration of these 278 00:21:49.119 --> 00:21:56.160 various features. As he said, and I quote him, a 279 00:21:56.200 --> 00:22:02.000 combination of all the remedies, makes it unviable to invest 280 00:22:02.200 --> 00:22:08.680 in research and development. So, I mean, this is a 281 00:22:08.799 --> 00:22:13.920 case that's been closely watched because, as we know, the 282 00:22:13.960 --> 00:22:18.440 governor's trying to break up Facebook. Next up, they're going 283 00:22:18.480 --> 00:22:22.640 to try and go after Apple and you know, so 284 00:22:22.680 --> 00:22:26.519 they're definitely going up after the big tech companies and 285 00:22:26.559 --> 00:22:29.480 wanting to bake them up. And even though Google lost 286 00:22:29.519 --> 00:22:33.680 the case, the hope is that the judge, realizing that 287 00:22:33.720 --> 00:22:38.359 it lost the case a pretty frivolous, pretty minor basis, 288 00:22:39.200 --> 00:22:42.400 that the judge is ultimately going to turn around and 289 00:22:44.599 --> 00:22:46.839 decide not to break them up, just as a judge 290 00:22:47.240 --> 00:22:51.200 in the Microsoft case in the nineteen nineties ultimately decided 291 00:22:51.240 --> 00:22:54.119 not to break Microsoft up and that saved the company. 292 00:22:54.920 --> 00:22:59.599 It's still stagnated for about ten years because it was 293 00:22:59.640 --> 00:23:03.960 put under what do you call it, under supervision of 294 00:23:04.000 --> 00:23:11.160 a government bureaucrat for ten years, but it survived. I'm 295 00:23:11.160 --> 00:23:15.799 not sure Google can survive the breakup. And it's just 296 00:23:15.839 --> 00:23:20.799 such an injustice given how great the company is, everything 297 00:23:20.839 --> 00:23:26.519 that is achieved, all the benefits we receive from it, 298 00:23:26.640 --> 00:23:30.279 the employees, the shareholders, and anti trust is just theft. 299 00:23:32.480 --> 00:23:37.960 It's just outright middle of the day, not even in 300 00:23:38.000 --> 00:23:42.559 a dark alley, you know, destruction for the sake of destruction. 301 00:23:42.680 --> 00:23:49.400 It's not even theft. So we will see what remedies 302 00:23:49.440 --> 00:23:52.720 the judge ultimately chooses. We will know that, I guess 303 00:23:52.759 --> 00:23:54.799 the next couple of months will probably know what is 304 00:23:54.839 --> 00:24:05.960 going on, all right, h So a few updates on 305 00:24:07.240 --> 00:24:16.039 Trump tariffs. It just gets worse. It just gets some 306 00:24:16.160 --> 00:24:18.599 bad to worse the worse, to awful, to hopable to 307 00:24:18.880 --> 00:24:26.799 to worse, to really really bad. So you know, so 308 00:24:27.000 --> 00:24:31.200 just to give you a few highlights. Over the weekend, 309 00:24:31.880 --> 00:24:34.799 the Churchy secretary how Lutnik said that he was ending 310 00:24:35.319 --> 00:24:41.480 the minimus the deminimus loophole in tariffs. The dominimus loophole. 311 00:24:41.799 --> 00:24:46.640 Said that in the past, US customers could import eight 312 00:24:46.720 --> 00:24:50.759 hundred dollars worth of goods per day free of tariffs 313 00:24:51.119 --> 00:24:55.160 and any administrative fees. Right, and there's the first fuel 314 00:24:55.200 --> 00:24:59.319 the direct to customer trade, Like what do you call 315 00:24:59.359 --> 00:25:02.640 those Chinese? These companies that sell you stuff and will 316 00:25:02.680 --> 00:25:04.920 you get it directly? And you get the stuff direct 317 00:25:04.960 --> 00:25:13.079 from them and you don't pay any any customs, any tariffs, 318 00:25:13.079 --> 00:25:19.480 any transact, any administrative fees like TAMU or even on Amazon. 319 00:25:20.200 --> 00:25:24.000 If there is a Chinese vendor on Amazon and you're 320 00:25:24.039 --> 00:25:27.680 buying from them, and it comes directly from China and 321 00:25:27.720 --> 00:25:30.319 it's worth less than nine hundred dollars, then you can 322 00:25:30.359 --> 00:25:35.160 just buy it. Tamu and Shane these are two of 323 00:25:35.200 --> 00:25:38.240 the big Chinese companies that have done very well in 324 00:25:38.279 --> 00:25:43.240 the United States selling US chief stuff with no tariffs. Well, 325 00:25:44.400 --> 00:25:50.200 the loophole is being closed, so you know, I think 326 00:25:50.240 --> 00:25:56.279 starting immediately, you will have to pay the full tariff 327 00:25:56.799 --> 00:25:58.920 and everything that you buy, even if you buy something 328 00:25:58.920 --> 00:26:03.480 with ten bucks, you will then some way along the line. 329 00:26:03.920 --> 00:26:06.279 It's not clear where the tariff will be charged of you, 330 00:26:06.880 --> 00:26:10.079 because usually it's the importer that pays the tariffs. But 331 00:26:10.119 --> 00:26:13.039 I guess you are the importer, so you would have 332 00:26:13.079 --> 00:26:14.599 to pay it. I'm not sure how you would pay it, 333 00:26:14.599 --> 00:26:18.000 where you would pay it, and the traumatization has not 334 00:26:18.119 --> 00:26:24.920 provided much guidance here, so uh, you know this this 335 00:26:25.160 --> 00:26:28.160 actually you know, it's not clear how it's going to 336 00:26:28.200 --> 00:26:33.119 involve customer and votive, you know, the customs agency. It 337 00:26:33.319 --> 00:26:39.599 looks like the shippers ups, FedEx, DHL, those guys will 338 00:26:39.759 --> 00:26:44.039 somehow have to collect the tiff from you and pay 339 00:26:44.079 --> 00:26:47.079 it to the Customs agency. It means stuff is going 340 00:26:47.119 --> 00:26:51.720 to be stuck in customs for longer. It'll be harder 341 00:26:51.759 --> 00:26:59.839 to clear customs uh. And this is going to be 342 00:27:01.160 --> 00:27:06.440 just making our lives a little bit harder, in particular, 343 00:27:09.240 --> 00:27:13.559 significant tax on Americans, on poor Americans. It's a bigger 344 00:27:13.599 --> 00:27:17.880 fraction of their earnings. And it's gonna just make international 345 00:27:17.920 --> 00:27:23.039 shipping of anything, anything you want to ship internationally is 346 00:27:23.119 --> 00:27:26.279 now going to be a big hassle. You're gonna have 347 00:27:26.359 --> 00:27:30.440 to use a broker. They are gonna charge your fee. 348 00:27:31.519 --> 00:27:33.880 You're gonna have to pay the customs tax. You will 349 00:27:33.920 --> 00:27:37.160 have to pay it directly, either through the BOCA directly, 350 00:27:37.160 --> 00:27:39.559 the broco directly. You might even have to go down 351 00:27:39.599 --> 00:27:42.480 to the Customs office or the or the BOCO will 352 00:27:42.519 --> 00:27:49.279 have to do it. I mean, this is how a 353 00:27:49.279 --> 00:27:53.039 lot of countries function. This is our status countries do it. 354 00:27:53.799 --> 00:27:58.680 Status countries who want to penalize their people for buying 355 00:27:58.720 --> 00:28:04.279 stuff overseas. This is part of the beauty of free trade. 356 00:28:04.799 --> 00:28:09.480 You can buy from anybody anything you want, pay for 357 00:28:09.519 --> 00:28:14.640 the shipping, pay for the product, and that's it, and 358 00:28:14.720 --> 00:28:18.960 you're free to go. This is such an intrusion on 359 00:28:19.039 --> 00:28:22.279 our economic rights. It's such an intrusion on our choices. 360 00:28:30.279 --> 00:28:53.480 It's you know, truly horrific. M hm. So you know again, 361 00:28:54.000 --> 00:29:00.480 taosa just the dumbest economic policy possible. And Trump is 362 00:29:00.559 --> 00:29:06.000 not letting up. He's not letting up. So this morning 363 00:29:07.160 --> 00:29:13.599 it broke that Trump, I guess decided overnight he had 364 00:29:13.640 --> 00:29:18.039 he had a two social tweet on this. You know, 365 00:29:18.160 --> 00:29:21.920 let's see if you can find this because I didn't 366 00:29:21.960 --> 00:29:24.920 copy paste it, and it's it's worth reading to you 367 00:29:24.920 --> 00:29:30.480 because it's, I mean, this guy's nuts and say, you know, 368 00:29:30.559 --> 00:29:33.400 I know I'm hurting some of your feelings, but he is. 369 00:29:34.079 --> 00:29:44.480 He is nuts. Here it is. So here's Donald Trump 370 00:29:44.640 --> 00:29:48.559 this morning. The movie industry in the America is dying 371 00:29:49.440 --> 00:29:54.400 a very fast death, dying all capitalized. Other countries are 372 00:29:54.400 --> 00:29:57.359 offering all sorts of incentives to draw filmmakers and studios 373 00:29:57.519 --> 00:30:01.240 away from the United States. Hollywood and many other areas 374 00:30:01.240 --> 00:30:04.319 in the United States are being devastated. While he cares 375 00:30:04.319 --> 00:30:09.440 about Hollywood, that bastion of leftists. This is a concerted 376 00:30:09.559 --> 00:30:15.480 effort by other nations and therefore a national security threat. 377 00:30:19.839 --> 00:30:21.960 I mean, what do you do with that? What do 378 00:30:22.000 --> 00:30:25.839 you do with that? It is an addition to everything else, 379 00:30:26.480 --> 00:30:31.000 messaging and propaganda. Therefore, I'm authorizing the Department of Commerce 380 00:30:31.240 --> 00:30:35.640 and the United States Trade Representative to immediately begin the 381 00:30:35.680 --> 00:30:40.839 process of instituting one hundred percent tariff on any and 382 00:30:41.079 --> 00:30:44.440 all movies coming into our country that are produced in 383 00:30:44.559 --> 00:30:51.160 foreign lands, which is many, if not most, Hollywood movies. 384 00:30:52.000 --> 00:30:58.839 We want movies made in America again, all capital. I mean, 385 00:30:58.880 --> 00:31:07.559 this is just ridiculous, infantile. Sorry I'm calling Trump names again, 386 00:31:08.000 --> 00:31:15.920 but it is tariffs on movies. And what is you know, 387 00:31:16.039 --> 00:31:19.720 Netflix brings in lots of foreign shows. Are they're gonna 388 00:31:19.720 --> 00:31:22.240 have to pay double now the one hundred percent tariff 389 00:31:22.440 --> 00:31:27.559 they're gonna pay attacks is my Netflix monthly? If you're 390 00:31:27.559 --> 00:31:30.839 gonna go up dramatically or all those fawn shows just 391 00:31:30.880 --> 00:31:33.400 gonna disappear from Netflix and I'll be stuck just with 392 00:31:33.480 --> 00:31:40.559 American shows. What about you know, I'm missing Impossible, which 393 00:31:40.640 --> 00:31:45.119 is a very successful franchise, American film, very successful franchise, 394 00:31:45.160 --> 00:31:48.440 but a lot of the filming and producing is done 395 00:31:48.440 --> 00:31:53.079 overseas because part of the sets overseas they use you know, 396 00:31:53.119 --> 00:31:56.000 they jump off of real towers and some of those 397 00:31:56.000 --> 00:32:00.400 towers and not in America. What about the fact, yeah, 398 00:32:00.519 --> 00:32:05.480 the fact that because of the unions in Hollywood, it's very, 399 00:32:05.599 --> 00:32:08.880 very expensive to shooting in Hollywood. So a lot of movies, 400 00:32:09.279 --> 00:32:12.240 a lot of movies are shot outside of the United 401 00:32:12.279 --> 00:32:16.400