WEBVTT 1 00:00:00.560 --> 00:00:03.120 Zach Gabraham joins us and I have a whole series 2 00:00:03.160 --> 00:00:06.519 of questions for Zach, such as this insane world. You 3 00:00:06.639 --> 00:00:09.640 operate in the separate country of Washington State. They ran 4 00:00:09.679 --> 00:00:12.839 a poll about ice enforcing immigration laws there. We'll talk 5 00:00:12.880 --> 00:00:17.359 about that. Plus Zach posted the most curious thing there 6 00:00:17.399 --> 00:00:20.239 are now more ETFs in the United States than there 7 00:00:20.239 --> 00:00:24.239 are individual stocks. And Zach said, gosh, what could go wrong? 8 00:00:24.280 --> 00:00:26.960 We'll talk with Zach Gabraham about your chances of retiring 9 00:00:26.960 --> 00:00:30.679 comfortably in a nation on the precipice of either greatness 10 00:00:30.719 --> 00:00:33.200 or ruin. We'll do this with the help of Renew 11 00:00:33.280 --> 00:00:37.039 dot Healthcare. Go to join stem cell talks dot com. 12 00:00:37.079 --> 00:00:40.039 Coming up of the eleventh September, me and the docs 13 00:00:40.039 --> 00:00:42.359 from renew We're going to talk about stem cells and 14 00:00:42.439 --> 00:00:45.479 everybody who attends, goes through the whole thing is entered 15 00:00:45.479 --> 00:00:47.799 to win a free week stay at beautiful Hotel Meal 16 00:00:47.840 --> 00:00:50.920 in Nuevavarta. It's joined stem cells talks dot com. Now, 17 00:00:52.119 --> 00:00:55.119 thank you God Almighty for time to have wise counsel. 18 00:00:59.359 --> 00:01:07.159 Disapproved, but big pharma technocrats and tyrn s everywhere from 19 00:01:07.239 --> 00:01:12.319 the high mountains of Free America. Here's the Emerald city 20 00:01:12.439 --> 00:01:16.439 exile tied to her man. 21 00:01:22.719 --> 00:01:25.120 Today is the day the Lord has made, and these 22 00:01:25.159 --> 00:01:27.239 are the times to which God has decided we shall 23 00:01:27.319 --> 00:01:29.599 live in. Joining me is the Cheat investment Officer Bulwark, 24 00:01:29.599 --> 00:01:32.359 cap of the management. It's my friend and brother, Zach Abraham. Zach, 25 00:01:32.439 --> 00:01:34.879 welcome back to the program. Good salute to the people. 26 00:01:34.879 --> 00:01:37.760 How are you doing good? Doing good? I feel like 27 00:01:37.799 --> 00:01:38.959 we haven't done this in a while. 28 00:01:39.079 --> 00:01:40.480 No, we did it last week. But we did have 29 00:01:40.480 --> 00:01:42.400 that long break when you went up to Alaska and 30 00:01:42.439 --> 00:01:45.159 then you right. 31 00:01:45.480 --> 00:01:46.159 Might be where it was. 32 00:01:46.239 --> 00:01:48.920 And you know, I only used I only used one 33 00:01:48.920 --> 00:01:50.439 of my helicopters to get up there. 34 00:01:50.480 --> 00:01:55.079 Lock, you are really slowing down, you guys want normally 35 00:01:55.159 --> 00:01:57.280 you take your helicopter and each of the boys takes one. 36 00:01:58.200 --> 00:01:59.799 Well, yeah, and then we have a yacht come up 37 00:01:59.799 --> 00:02:02.200 as he's got a helicopter pad on it. Yes, I mean, 38 00:02:03.280 --> 00:02:05.000 you know you've got a helicopter. You can't be without 39 00:02:05.040 --> 00:02:05.799 your helicopter pat. 40 00:02:06.200 --> 00:02:08.400 Yeah. And just so everybody knows, Zach he's being a 41 00:02:08.400 --> 00:02:11.319 little bit sarcastic. He's actually very responsible with money. Do 42 00:02:11.319 --> 00:02:13.360 you know the genesis of the helicopter jokes with me? 43 00:02:13.479 --> 00:02:17.639 Did you ever tell you that why I joke about helicopters. No, oh, okay, 44 00:02:17.680 --> 00:02:19.960 So back in the dot com era, I was having 45 00:02:20.319 --> 00:02:25.000 dinner with the CEO of a of a web publishing 46 00:02:25.039 --> 00:02:27.759 firm that you would know, very famous. It still exists, 47 00:02:28.280 --> 00:02:29.759 been through a number of sales, but it had been 48 00:02:29.759 --> 00:02:32.639 a public company and it had never earned a profit. 49 00:02:33.360 --> 00:02:35.439 It had never come to earning a profit. You remember this. 50 00:02:35.439 --> 00:02:37.400 Story, Yes, I remember this right? Yes? Yeah? Yes. 51 00:02:37.439 --> 00:02:42.360 The guy says, so I bought a helicopter and I said, why, 52 00:02:42.400 --> 00:02:45.520 goes well, Steve jobs as one and he was actually 53 00:02:45.919 --> 00:02:48.840 actually being flown into the office and landing on top 54 00:02:48.879 --> 00:02:51.520 of the roof in a company that never earned a profit. 55 00:02:51.560 --> 00:02:53.599 And by the way, Zach, it never has. I mean 56 00:02:53.639 --> 00:02:54.919 it's part of a bigger company now. 57 00:02:55.800 --> 00:02:58.879 Well yeah, but I mean the efficiencies you pick up 58 00:03:00.240 --> 00:03:05.240 see no, yeah, if anybody, yes, right, that's that's where 59 00:03:05.240 --> 00:03:08.840 you head for the door. But but uh, that being said, 60 00:03:09.560 --> 00:03:13.039 there's Did you ever see that show Silicon Valley on HBO? 61 00:03:13.479 --> 00:03:13.560 No? 62 00:03:13.759 --> 00:03:14.800 Is it something I should watch? 63 00:03:16.120 --> 00:03:20.439 It's hilarious and especially because of your experience there, you 64 00:03:20.479 --> 00:03:23.719 will laugh so hard because it's a parody, right, they're 65 00:03:23.719 --> 00:03:26.520 making fun of it. But people don't realize how similar 66 00:03:26.520 --> 00:03:29.080 it was. Like, for instance, they're talking to this guy 67 00:03:29.280 --> 00:03:32.479 that is an amalgamation of a bunch of the CEOs 68 00:03:32.479 --> 00:03:35.639 down there right he represents a bunch of them, and 69 00:03:35.639 --> 00:03:37.719 they're like, yeah, and it's gonna be great because if 70 00:03:37.759 --> 00:03:40.199 we do this, we're gonna post the best earnings. 71 00:03:40.280 --> 00:03:42.879 You know, we've ever had any earnings? 72 00:03:43.159 --> 00:03:44.199 Are you out of your. 73 00:03:44.159 --> 00:03:48.400 Mom post earnings? The investors are going to be expecting 74 00:03:48.439 --> 00:03:53.039 it every quarter. Don't hear post earnings. Then you're gonna 75 00:03:53.039 --> 00:03:55.680 make it real. We do that, Like, the guy. 76 00:03:55.599 --> 00:03:57.960 Just flips out, and I was laughing so hard because 77 00:03:58.000 --> 00:04:01.280 I'm like that, that is so oh that is so 78 00:04:01.560 --> 00:04:04.960 eerily close to reality in a really funny, you know, 79 00:04:05.280 --> 00:04:06.039 parody type. 80 00:04:06.120 --> 00:04:10.280 Oh my gosh, yes, I got I got just almost. 81 00:04:10.360 --> 00:04:13.240 This guy wanted to whip me. He wanted to like 82 00:04:14.240 --> 00:04:17.120 pimp slap me. We were in the garage at our 83 00:04:17.160 --> 00:04:21.920 building in Seattle and I said something about I was 84 00:04:21.920 --> 00:04:24.160 talking to one of our first investors walking him into 85 00:04:24.160 --> 00:04:26.279 his car and said something along the lines of, man, 86 00:04:26.279 --> 00:04:28.519 I'm really getting a lot of pressure to look to sell. 87 00:04:28.800 --> 00:04:31.399 Well the bubble still exists, and he goes he stops, 88 00:04:31.439 --> 00:04:39.000 you stop there is no bubble. Never say bubble, never 89 00:04:39.079 --> 00:04:42.040 acknowledge bubble. There is no bubble. This is all value. 90 00:04:42.199 --> 00:04:45.319 This is a new economy. And Zach, you know, Zach, 91 00:04:45.720 --> 00:04:49.439 I'm in my mid twenties listening to this, looking at 92 00:04:49.439 --> 00:04:52.160 this man, realizing he's been an investor most of his life. 93 00:04:52.199 --> 00:04:56.199 He was in his fifties. And I didn't say to him, Alan, 94 00:04:56.279 --> 00:04:58.759 are you kidding me? We all know this is a bubble. 95 00:04:59.040 --> 00:05:02.160 I shut my hole and just played along with that 96 00:05:02.240 --> 00:05:04.319 to my shame. So no, it's called Silicon Valley. 97 00:05:05.480 --> 00:05:08.879 Yeah, and yeah, and it's it is. It is hilarious 98 00:05:09.519 --> 00:05:11.800 if I'm if I'm thinking of it. 99 00:05:11.800 --> 00:05:14.639 It's not too it's not too inappropriate. It's not like 100 00:05:14.959 --> 00:05:17.879 a risk a show at all. It is just it's comedy, 101 00:05:18.319 --> 00:05:23.040 and it is if people don't know how Silicon Valley works. 102 00:05:23.879 --> 00:05:26.040 It's not a perfect representation. 103 00:05:26.120 --> 00:05:28.399 It's a parody, but it's one of those parodies where 104 00:05:29.079 --> 00:05:31.879 it's also not very far right. It's pretty like and 105 00:05:32.279 --> 00:05:34.759 people don't realize that if they're not there, what a 106 00:05:34.879 --> 00:05:37.879 ridiculous place it could be, like you know what I mean, 107 00:05:37.920 --> 00:05:39.920 Like I know you know what I'm saying. Yes, And 108 00:05:39.959 --> 00:05:43.240 it's hard to explain because you're sitting there thinking to yourself. 109 00:05:43.439 --> 00:05:47.439 Mark Andriesen put it perfectly that he left his home 110 00:05:47.959 --> 00:05:50.680 in Nebraska, growing up on a farm, and he gets 111 00:05:50.759 --> 00:05:52.879 Silicon Valley and he's like, these are the smartest people 112 00:05:52.920 --> 00:05:53.360 in the world. 113 00:05:53.480 --> 00:05:55.279 I need to adopt their worldview. 114 00:05:55.879 --> 00:05:58.839 And he said it wasn't until years after being there 115 00:05:58.920 --> 00:06:01.639 that I realized, well, these people are brilliant as it 116 00:06:01.680 --> 00:06:04.879 relates to this one thing, yes, but when it comes to. 117 00:06:04.879 --> 00:06:09.920 The rest of it, they're idiots. Yes, and that's the reality. 118 00:06:10.079 --> 00:06:13.120 Yes, it's a town of my epic focus on making 119 00:06:13.160 --> 00:06:16.040 money from code and then code related things and it 120 00:06:16.079 --> 00:06:18.519 sort of stops there, or business there, some some business 121 00:06:18.600 --> 00:06:21.839 in general. So speaking of business, you invested in a 122 00:06:21.879 --> 00:06:24.279 company that we've been talking about here and I've had 123 00:06:24.519 --> 00:06:28.600 so many interesting conversations with people, and it's Visible. I 124 00:06:28.839 --> 00:06:31.639 got a note from a guy, Zach. His business has 125 00:06:31.680 --> 00:06:36.079 been in place for fifteen years, fifteen stinking years, and 126 00:06:36.120 --> 00:06:38.800 he heard me talking about Visible and so for the 127 00:06:38.839 --> 00:06:41.560 fun of things, he went and looked at his founding documents. 128 00:06:41.560 --> 00:06:42.680 He had to page back three. I had to go 129 00:06:42.680 --> 00:06:45.639 to his gun safe page back through to founding documents, 130 00:06:45.680 --> 00:06:47.600 and he went back and he looked and it was 131 00:06:47.600 --> 00:06:51.920 all based upon his personal credit. And he realized, so, Zach, 132 00:06:52.600 --> 00:06:56.279 this guy has offices in Cordelane, he's got offices in Boise, 133 00:06:56.920 --> 00:07:00.360 he's got offices in Wyoming. It's insurance. All of those 134 00:07:00.399 --> 00:07:03.839 insurance firms are owns under an LLC or this or corporation. 135 00:07:04.399 --> 00:07:07.519 None of it is divorced from his personal credit. All 136 00:07:07.519 --> 00:07:10.040 of it's based upon that. So he said, Okay, can 137 00:07:10.079 --> 00:07:12.040 I get in touch with Bisible. I'm like, yes, it's 138 00:07:12.079 --> 00:07:14.360 go bisible dot com. Will put me in touch. No, 139 00:07:14.439 --> 00:07:16.360 you can click the website right, you can do that 140 00:07:16.399 --> 00:07:19.279 on your own. So what Bisible does and you invested 141 00:07:19.279 --> 00:07:21.639 in this, I want you to say why. They'll look 142 00:07:21.680 --> 00:07:24.240 at this case and obviously he knows he doesn't have 143 00:07:24.279 --> 00:07:27.040 corporate credits and in seven easy steps they'll solve this 144 00:07:27.120 --> 00:07:29.240 for you. So you can be as sophisticated as you 145 00:07:29.279 --> 00:07:31.079 want or new as you want. And also if you're 146 00:07:31.120 --> 00:07:34.439 forming a business, do it right, like get that thing 147 00:07:34.519 --> 00:07:36.360 set up and then get with Bisible and then have 148 00:07:36.439 --> 00:07:38.720 them make sure you've got corporate credit. The website is 149 00:07:38.759 --> 00:07:41.560 go bisible dot com with the Z go bisible dot 150 00:07:41.560 --> 00:07:43.120 com and real quick why did you invest? 151 00:07:44.439 --> 00:07:46.680 Yeah, because I was in the exact same I was 152 00:07:46.720 --> 00:07:48.399 in the exact same shoes that that guy was in. 153 00:07:48.560 --> 00:07:50.519 And a good buddy of mine that I went to 154 00:07:50.560 --> 00:07:54.680 college with and that lived played football with me called me, 155 00:07:54.879 --> 00:07:56.959 and so there was a personal interest in it for me. 156 00:07:57.000 --> 00:07:58.839 So I'm a silent partner. I've got nothing to do 157 00:07:58.920 --> 00:08:01.839 with the day to day activities. But it was something 158 00:08:01.879 --> 00:08:03.759 that had been plaguing me for a long time in 159 00:08:03.800 --> 00:08:05.360 the back of my head that I knew I was 160 00:08:05.399 --> 00:08:08.319 not doing. And so he called me with this business idea, 161 00:08:08.360 --> 00:08:11.600 and I went, well, yeah, hey, I'll be a client, 162 00:08:11.959 --> 00:08:15.319 but also, uh, you know, do you need some help? 163 00:08:15.439 --> 00:08:17.600 And so I offered help him, you know, get it off, 164 00:08:17.680 --> 00:08:20.680 get off the ground, and get it rolling. And I 165 00:08:20.800 --> 00:08:24.959 just it's something that is so simple to fix, and 166 00:08:25.040 --> 00:08:28.360 so people don't and so so few people have done 167 00:08:28.399 --> 00:08:31.639 it and taken those steps. And it's kind of like 168 00:08:31.720 --> 00:08:33.960 it's kind of like in the concept of investing. 169 00:08:33.559 --> 00:08:35.159 And it's not free, but it's relative. 170 00:08:35.159 --> 00:08:38.919 It's really cheap, especially for a business owner, and and 171 00:08:39.200 --> 00:08:43.120 you it's it's in investing. We have these scenarios where 172 00:08:43.320 --> 00:08:46.480 when you can get effectively free insurance, your answer should 173 00:08:46.480 --> 00:08:49.399 always be yes, right, And so many of us in 174 00:08:49.440 --> 00:08:52.200 the business world that owned businesses are passing on the 175 00:08:52.240 --> 00:08:55.720 free insurance that's offered by you know, the veil, the 176 00:08:55.799 --> 00:08:59.159 corporate veil of an LLC and and and we're piercing 177 00:08:59.200 --> 00:09:02.759 that veil because because we're financing it with our own 178 00:09:02.799 --> 00:09:07.720 personal credit and therefore nullifying the advantages. So anyway, yeah, 179 00:09:07.720 --> 00:09:09.600 it's it's a no brainer in my opinion. 180 00:09:09.679 --> 00:09:11.840 Yeah, same with me. It's go visible dot com. I 181 00:09:11.879 --> 00:09:14.159 want to get to this immigration poll you posted because 182 00:09:14.200 --> 00:09:16.200 it's fascinating and I think people are weirded out by 183 00:09:16.200 --> 00:09:18.639 where you continue to live in the separate country, although 184 00:09:18.679 --> 00:09:20.840 albeit you live in a far better area there. But 185 00:09:20.919 --> 00:09:23.159 I wanted to get to this because this you have 186 00:09:23.240 --> 00:09:27.440 been warning us about this. Can I see it this way? 187 00:09:27.559 --> 00:09:31.159 Like the ryal fok do nie on four years? It's ye, 188 00:09:31.320 --> 00:09:34.919 I've spent nine on four years. There are now more 189 00:09:35.639 --> 00:09:41.720 ETFs electronic trading funds the United States than there are 190 00:09:41.919 --> 00:09:47.000 individual stocks, and you wrote something in regard to gosh, 191 00:09:47.039 --> 00:09:52.559 what could go wrong? A are you freaking kidding me? 192 00:09:53.200 --> 00:09:58.440 There's more ETFs than individual stocks and no one is 193 00:09:59.039 --> 00:10:01.480 calling an alarm bell on this. 194 00:10:02.519 --> 00:10:05.320 Oh well no, because it hasn't There hasn't been any 195 00:10:05.360 --> 00:10:06.000 negative outcome. 196 00:10:06.120 --> 00:10:07.000 Oh good, so let's move on. 197 00:10:07.080 --> 00:10:11.399 So getting past yes, well, because we I mean, look, 198 00:10:11.440 --> 00:10:14.519 we all know how this works, right, As long as 199 00:10:14.639 --> 00:10:16.799 number go up, nobody cares. 200 00:10:17.279 --> 00:10:17.480 Right. 201 00:10:17.919 --> 00:10:20.120 It's one of the reasons that we refer to regulators 202 00:10:20.159 --> 00:10:25.440 as firemen, meaning they never act preemptively to stop a fire. 203 00:10:26.840 --> 00:10:29.360 And and and I don't mean that in pure criticism. 204 00:10:29.360 --> 00:10:31.440 There's a lot of different reasons why that's the case. 205 00:10:31.799 --> 00:10:36.399 But but here here's the issue. But let me also 206 00:10:36.440 --> 00:10:38.639 sit there and go, this isn't all about fear and 207 00:10:38.639 --> 00:10:41.799 and and being freaked out about it and impending market collapse. 208 00:10:42.519 --> 00:10:45.600 But but what it tells you is that something is 209 00:10:45.679 --> 00:10:47.080 inherently unstable. 210 00:10:47.399 --> 00:10:51.720 Okay, So you ETFs by definition have to be made 211 00:10:51.720 --> 00:10:55.279 of stocks. If you're looking at a marketplace where you've 212 00:10:55.320 --> 00:10:58.759 got more ttfs than stocks, pretty good sign you've kind 213 00:10:58.759 --> 00:11:01.840 of overrun the usefulness, right, or you've just overdone it. 214 00:11:02.159 --> 00:11:04.279 And so what you've got now is you've got a 215 00:11:04.360 --> 00:11:07.200 market and you can see it like this on a 216 00:11:07.279 --> 00:11:12.720 daily basis. You've got a market where securities are trading 217 00:11:12.759 --> 00:11:16.120 and not all the time, but frequently securities are trading 218 00:11:16.200 --> 00:11:23.320 completely divorced from their underlying you know, idiosyncratic details, right, 219 00:11:23.799 --> 00:11:26.840 meaning they're just trading with the other group of stocks 220 00:11:26.879 --> 00:11:30.919 because there is more money going in and out of 221 00:11:31.039 --> 00:11:35.360 ETFs than there are stocks. So by definition, you've got 222 00:11:35.360 --> 00:11:38.080 this setup where the tail is wagging the dog. So 223 00:11:38.120 --> 00:11:40.600 a company can come out and announce really bad earnings, 224 00:11:40.960 --> 00:11:43.679 but if people are dumping money into the ETF, the 225 00:11:43.679 --> 00:11:47.799 stock could go up, right, And a perfect example of this, 226 00:11:47.960 --> 00:11:50.039 in my opinion, Now I can't tell you one hundred 227 00:11:50.080 --> 00:11:52.879 percent this is the case, but if you will, if 228 00:11:52.919 --> 00:11:55.279 you look at the S and P five hundred right now, 229 00:11:56.120 --> 00:11:59.480 and you look at the Nasdaq, for instance, there's some 230 00:12:00.080 --> 00:12:02.679 obvious anomalies, but one of them is kind of hiding 231 00:12:02.720 --> 00:12:03.440 in plain sight. 232 00:12:03.559 --> 00:12:04.639 Apple, Right. 233 00:12:04.720 --> 00:12:06.919 Go look at Apple and look at the fact that 234 00:12:06.960 --> 00:12:10.720 Apple is trading at thirty six times earnings, Okay, and 235 00:12:10.759 --> 00:12:13.720 then you look at how bad their performance has been. 236 00:12:13.759 --> 00:12:15.360 Their growth rate has fallen off. 237 00:12:15.360 --> 00:12:18.519 You're looking at five six percent growth, margins are down 238 00:12:18.559 --> 00:12:20.840 at fifteen percent. You look at a bunch of other 239 00:12:20.960 --> 00:12:25.360 the companies that are valued at that level, and they're growing. 240 00:12:25.200 --> 00:12:26.879 Way faster, multiples faster. 241 00:12:27.200 --> 00:12:29.279 Take a company like Google, which we've been talking about 242 00:12:29.320 --> 00:12:31.240 that's undervalued for a long time. It's getting an eight 243 00:12:31.279 --> 00:12:34.279 and a half nine percent pop today because, like we said, 244 00:12:34.320 --> 00:12:36.639 a lot of this stuff about Chrome being illegal was 245 00:12:36.679 --> 00:12:41.120 a lot of overhype nonsense. But one of the reasons 246 00:12:41.200 --> 00:12:44.159 in our opinion, and again I cannot prove this, but 247 00:12:44.279 --> 00:12:46.440 if you look at a stock like Apple, where you're 248 00:12:46.480 --> 00:12:49.840 looking at the underlying performance, Costco would be similar. Their 249 00:12:49.879 --> 00:12:52.639 performance isn't falling off, but you're looking at a company 250 00:12:52.639 --> 00:12:54.440 growing at seven and a half percent a year trading 251 00:12:54.480 --> 00:12:57.600 at fifty four times earnings. Just mind boggling, right, and 252 00:12:57.799 --> 00:13:00.559 then Costco is a great company growing at eight percent 253 00:13:00.600 --> 00:13:03.840 a year with two point seventy five percent margins. 254 00:13:04.279 --> 00:13:07.039 Right, So, and you're going you're gonna pay fifty four 255 00:13:07.080 --> 00:13:09.399 times ear any for that doesn't make sense. But what 256 00:13:09.960 --> 00:13:13.879 is happening is that as money goes into these indexes, 257 00:13:14.480 --> 00:13:18.000 the money that flows into the indexes is awarded to 258 00:13:18.080 --> 00:13:22.159 the stock based on that individual stock size, not how 259 00:13:22.200 --> 00:13:26.360 it's performing, not how the profit. So when you put 260 00:13:26.440 --> 00:13:27.240 money into the. 261 00:13:27.240 --> 00:13:30.639 Nasdaq or the S and P five hundred ETF six 262 00:13:30.679 --> 00:13:33.360 and a half to seven cents of every dollar, you're 263 00:13:33.360 --> 00:13:36.919 putting in is going into Apple regardless of how it's trading. 264 00:13:37.200 --> 00:13:39.679 Why because it's the one of the two biggest companies 265 00:13:39.720 --> 00:13:43.399 in the index. So what happens even though the performance 266 00:13:43.440 --> 00:13:46.720 of Apple falls off, the stock keeps going up. So 267 00:13:47.120 --> 00:13:50.720 it's it's met some resistance lately. But at the same time, 268 00:13:51.399 --> 00:13:53.519 it's one of the reasons that you see so many 269 00:13:53.519 --> 00:13:56.600 of these head scratching valuations because you're looking around going, 270 00:13:56.639 --> 00:13:58.960 wait a second, these two companies are in the same sector. 271 00:13:59.200 --> 00:14:01.159 How could this mark could be telling me that this 272 00:14:01.200 --> 00:14:05.480 company growing at fifteen percent is worth half the multiple 273 00:14:05.600 --> 00:14:08.200 or the valuation that we're putting on this company that's 274 00:14:08.200 --> 00:14:11.279 going at five That doesn't make any sense, right. Meanwhile, 275 00:14:11.279 --> 00:14:14.039 the company growing at fifteen percent's got thirty percent margins 276 00:14:14.039 --> 00:14:16.519 Apples at fifteen and you're sitting there going, nobody would 277 00:14:16.559 --> 00:14:16.960 pay for that? 278 00:14:17.240 --> 00:14:18.759 Well, how do we explain it? 279 00:14:18.840 --> 00:14:21.200 You look around, look at ETFs, and you go that 280 00:14:21.200 --> 00:14:25.240 that's got to be it. So here's here's the bright side. 281 00:14:25.919 --> 00:14:28.120 And you and I were talking about this. The value 282 00:14:28.120 --> 00:14:30.200 fund that I run on the year is up twenty 283 00:14:30.200 --> 00:14:34.200 three percent plus on the year. Okay, and we've had 284 00:14:34.240 --> 00:14:36.559 bad years too. I'm not sitting here saying we're always right. 285 00:14:36.919 --> 00:14:40.080 But one of the reasons that's driven that out performance 286 00:14:40.559 --> 00:14:43.639 is by us going through a lot of these indexes 287 00:14:43.879 --> 00:14:47.039 and picking out the companies that are just artificially too 288 00:14:47.120 --> 00:14:50.720 cheap and not owning the ones that are artificially too expensive. 289 00:14:51.240 --> 00:14:54.120 And a lot of that has to do with international markets, 290 00:14:54.159 --> 00:14:57.960 because international markets are even more divorced from reality than us. 291 00:14:58.720 --> 00:15:01.480 And then you throw in precious me which still amazingly 292 00:15:01.600 --> 00:15:05.360 nobody seems to be nearly that that interested in, which 293 00:15:05.360 --> 00:15:07.639 is crazy to me because those stocks are still dirt cheap. 294 00:15:08.960 --> 00:15:11.639 But but you look at all these opportunities out there, 295 00:15:11.879 --> 00:15:14.600 and you're looking at a scenario where, like I said, 296 00:15:15.039 --> 00:15:17.600 there's things we need to be aware of, and there's 297 00:15:17.679 --> 00:15:20.000 concerns about that whole ETF situation. 298 00:15:20.519 --> 00:15:25.080 At the same time, right dangerous opportunity, meaning what does 299 00:15:25.120 --> 00:15:27.279 that mean you got a bunch of overpriced stocks. It 300 00:15:27.360 --> 00:15:31.120 also means you got a bunch of artificially undervalued stocks, 301 00:15:31.480 --> 00:15:36.600 and that has got us licking our chops and you know, I, 302 00:15:36.679 --> 00:15:38.279 you know, we'll have to see the way it goes. 303 00:15:38.320 --> 00:15:39.960 But based on you know, a lot of the stuff 304 00:15:39.960 --> 00:15:41.759 that we hold, I'm sitting there looking at our years 305 00:15:41.759 --> 00:15:42.360 so far going. 306 00:15:42.360 --> 00:15:44.559 Man, this is just the beginning, because there's just a 307 00:15:44.639 --> 00:15:45.399 but this. 308 00:15:45.399 --> 00:15:48.320 This has created a bunch of overpriced nonsense, but it's 309 00:15:48.360 --> 00:15:50.840 also created a bunch of underpriced bargains too. 310 00:15:51.000 --> 00:15:54.200 Okay, I have a probably stupid man question, and I'll 311 00:15:54.200 --> 00:15:56.360 ask this stupid man question in a second because a 312 00:15:56.360 --> 00:15:59.720 metaphor came to me trying to understand one dynamic of this. 313 00:16:00.159 --> 00:16:02.960 Me concerned more t ETFs than individual stocks. So I'm 314 00:16:03.000 --> 00:16:04.799 going to provide a metaphor here in just a second. 315 00:16:05.000 --> 00:16:06.600 Because there's got to be a war coming on this. 316 00:16:06.679 --> 00:16:09.720 I'll explain what I mean. My friend Tim Krukshank knows 317 00:16:09.759 --> 00:16:11.480 what it's like to fight a real war. So in 318 00:16:11.480 --> 00:16:14.960 that Hunger Game scene where President Snow says to Catnus, 319 00:16:15.399 --> 00:16:17.320 tell me, my dear, you've been in the Hunger Games? 320 00:16:17.320 --> 00:16:18.799 Would you like to be in a real war? And 321 00:16:18.840 --> 00:16:20.799 she doesn't want to do that, Tim knows what's that like. 322 00:16:21.159 --> 00:16:23.120 So he also knows the war in business is nothing 323 00:16:23.440 --> 00:16:26.559 like being actually deployed, as he was three times as 324 00:16:26.559 --> 00:16:28.480 a medic attached to the seal teams. But it has 325 00:16:28.559 --> 00:16:30.759 been a bit of a war, bit of a battle. 326 00:16:30.799 --> 00:16:33.480 Getting bone Frog to where it's at. First, of all, 327 00:16:33.519 --> 00:16:37.080 Tim Krukshank Navy seal and physician's assistance in the real world. 328 00:16:37.320 --> 00:16:40.080 He didn't understand coffee. He just knew wanted to start 329 00:16:40.120 --> 00:16:42.919 a coffee company. He knew he wanted to honor fallen 330 00:16:42.960 --> 00:16:45.879 Navy seals. Hence ten percent of proceeds go to support 331 00:16:45.919 --> 00:16:48.360 the families of fallen Navy Seals, often through the Navy 332 00:16:48.399 --> 00:16:51.360 Seal Foundation. Knowing that, he knew he wanted to have 333 00:16:51.440 --> 00:16:54.080 an indelible logo in a statement, so he chose the 334 00:16:54.080 --> 00:16:56.919 bone Frog. He didn't want to steal the work of 335 00:16:56.919 --> 00:16:59.159 the artist who created the bone frog, who is a seal. 336 00:16:59.759 --> 00:17:02.799 That image stands for the body of a fallen seal, 337 00:17:02.879 --> 00:17:06.000 so he changed it slightly honors the artist. He wanted 338 00:17:06.000 --> 00:17:09.359 to honor God. Every beg says God, Country team on it, 339 00:17:09.400 --> 00:17:11.799 and I think this is why God has blessed the company. 340 00:17:12.640 --> 00:17:14.519 And God blessed the company with the presence of a 341 00:17:14.519 --> 00:17:17.119 guy named Dave Stewart who took a liking to Tim 342 00:17:17.160 --> 00:17:20.160 and took him under his wing. Dave started Seattle's Best 343 00:17:20.160 --> 00:17:23.480 Coffee and he tutors Tim and mentors him on the 344 00:17:23.480 --> 00:17:27.039 coffee roast. In fact, Dave makes some of the roasts. 345 00:17:27.599 --> 00:17:29.559 This is why I think Bone Frog is still fighting 346 00:17:29.599 --> 00:17:31.480 the battle. They have it won completely, yet they're on 347 00:17:31.559 --> 00:17:34.640 the precipice. So when you subscribe the bone Frog Coffee, 348 00:17:34.640 --> 00:17:37.799 you're joining God Country Team, the team. You're getting excellent coffee. 349 00:17:37.799 --> 00:17:40.200 You're supporting a company that hires veterans whenever they can, 350 00:17:40.440 --> 00:17:43.039 works with veteran owned companies. Tim just had to replace 351 00:17:43.079 --> 00:17:46.480 two team members because they went to join the Navy Seals, 352 00:17:46.799 --> 00:17:48.160 and I got to check with him to see if 353 00:17:48.200 --> 00:17:49.599 they made it through buds and if so, if they're 354 00:17:49.640 --> 00:17:52.559 under the next stage, you're becoming seals. So go join 355 00:17:52.640 --> 00:17:56.079 the Godcountry Team. Family. At Bonefrog Coffee dot com slash todd, 356 00:17:56.440 --> 00:17:58.400 use promo code Todd when you check out, you'll get 357 00:17:58.400 --> 00:18:01.599 fifteen percent off subscription coffe. Forget all that stuff about 358 00:18:01.599 --> 00:18:04.200 trying the coffee. Just trust me and trust the taste 359 00:18:04.240 --> 00:18:07.400 and trust the heritage. It's Bonefrog Coffee dot com, slash todd, 360 00:18:07.440 --> 00:18:09.440 promo code Todd when you check out and subscribe to 361 00:18:09.480 --> 00:18:14.000 your favorite roasts. So Zach, this occurred to me and 362 00:18:14.279 --> 00:18:16.400 you mentioned Apple is one of these stocks. And then 363 00:18:16.400 --> 00:18:18.359 you also, I know you had a chat with a 364 00:18:19.200 --> 00:18:21.359 lead code on Microsoft's AI team. I want to get 365 00:18:21.359 --> 00:18:23.720 to that. So if I were to come to you 366 00:18:23.799 --> 00:18:25.960 and I were a and I were to pitch, let's 367 00:18:26.000 --> 00:18:28.279 and I'm just making this up, but let's say I 368 00:18:28.359 --> 00:18:31.559 was to come to you and pitch a whole bunch 369 00:18:31.599 --> 00:18:34.000 of bowling alleys. Okay, So I came in and I 370 00:18:34.039 --> 00:18:36.400 showed you this design, and look here's what we think. 371 00:18:36.480 --> 00:18:38.400 You know, this is the data play, Zach. It's not 372 00:18:38.519 --> 00:18:40.720 just the bowlding. These are people who like you know, 373 00:18:41.079 --> 00:18:43.400 they like these family sports. And you know, we're gonna 374 00:18:43.400 --> 00:18:45.359 have meals there, but then we're gonna be able to 375 00:18:45.400 --> 00:18:47.640 try meals and sample meals and maybe send some of 376 00:18:47.640 --> 00:18:49.960 these meals home. And you know, we're got of an app, 377 00:18:49.960 --> 00:18:52.039 but that apple also help us track people where they 378 00:18:52.079 --> 00:18:53.960 go and what else did they buy. So we're pretty 379 00:18:53.960 --> 00:18:57.000 sophisticated on this. And so we want to build four 380 00:18:57.079 --> 00:19:01.039 million bowling alleys. Look at me and say how many 381 00:19:01.079 --> 00:19:09.079 active bowlers are there in America? A million? Your likelihood 382 00:19:09.079 --> 00:19:11.799 of investing in me building four million bowling alleys for 383 00:19:11.799 --> 00:19:14.240 for for one million bowlers would be what. 384 00:19:16.400 --> 00:19:22.200 Well, I mean, are they AI? O? 385 00:19:22.640 --> 00:19:23.039 My point? 386 00:19:23.599 --> 00:19:30.039 Are these going to be in Nvidia brand. Yes. 387 00:19:30.119 --> 00:19:31.920 As a matter of fact, today I look over to 388 00:19:31.920 --> 00:19:36.279 my CTO, aren't they Yeah, then I mean yeah, oh yeah, 389 00:19:36.680 --> 00:19:40.160 it's Zack. It's all Ai right, it's all So. My 390 00:19:40.200 --> 00:19:43.599 point is this, Zach, if there are more ETFs than 391 00:19:43.640 --> 00:19:46.640 individual stocks, some of these ETFs. 392 00:19:46.440 --> 00:19:51.559 Have to die. Yeah, no, no, yeah they yeah, they do. 393 00:19:52.519 --> 00:19:54.440 What happens to your money? If this is your ETF 394 00:19:54.480 --> 00:19:56.839 and the ETF dies, that's got to be in the 395 00:19:56.880 --> 00:19:58.319 terms of service somewhere what happens. 396 00:19:58.920 --> 00:20:01.440 Well, so then it then would be based off liquidation 397 00:20:01.599 --> 00:20:05.599 value of the underlying securities. So the so if so theoretically, 398 00:20:06.240 --> 00:20:09.319 if that were to occur because of lack of volume, 399 00:20:09.359 --> 00:20:11.519 which which has happened. There have been multiple ETFs that 400 00:20:11.559 --> 00:20:13.960 have gone out just because there wasn't enough volume enough 401 00:20:13.960 --> 00:20:17.960