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Welcome back, everyone. 
Thanks for joining today. 

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On the Joseph Carlson show. 
We have an interview from Warren

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Buffett and Charlie, Munger. 
The two legends themselves. 

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They sat down for about 45 
minutes in a CNBC interview and 

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they were asked about a variety 
of different topics. 

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Now, I think the questions were 
interesting but I think what was

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far more interesting was there. 
Take their actual answer to a 

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number of these questions. 
For instance. 

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Charlie Munger was asked about 
Jack, ma disappearing in China 

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and he gave a different take 
than what I thought about that. 

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He is on a different. 
Right side of that issue with 

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Jack ma disappearing. 
He also reiterated his view on 

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Robin Hood, calling it a 
gambling, parlor masquerading as

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a respectable brokerage and that
it's beneath contempt. 

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So we're going to go into why he
thinks out of Robin Hood and 

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many other questions, and many 
other things that were 

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highlighted in this interview. 
And then another story I think 

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is worth looking at is one of 
the most incredible engineering 

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and maybe abuses of tax system. 
This is petered he'll who use 

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this completely legal way. 
A of turning the everyday middle

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class Roth IRA retirement 
account into a five billion 

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dollar tax free piggy bank. 
That's right. 

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He took the Roth IRA that you're
only limited to six thousand 

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dollars per year of deposits and
he turned that into over five 

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billion dollars that now he'll 
be able to withdraw when you 

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turn 60 completely tax-free and 
this outlines how he was able to

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do that. 
So in this episode, I'll be 

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giving my thoughts on how he 
accomplished this and going into

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the details of it. 
So with that, we have A lot to 

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jump into in this episode before
we get into all of it. 

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It always helps out. 
If you like the video the little

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thumbs up button that helps out 
the YouTube algorithm. 

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Now, let's go ahead and before 
we jump into those news items 

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with the Warren Buffett 
interview. 

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Let's go ahead and look at my 
portfolio. 

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This is the passive income 
account. 

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This is my personal portfolio. 
I share the value of it, the 

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gains and losses every single 
week. 

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So on the thumbnail of every 
video in this channel is the 

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value of this portfolio and that
goes up or down. 

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If the value of my portfolio 
goes up or down. 

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I find it almost every month. 
So I'm constantly putting money 

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into this portfolio, trying to 
grow it. 

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But if the market takes a huge 
dive, this number will go down. 

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You can look at the videos 
around March of 2020. 

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When we had coronavirus and and 
that brought down the markets, 

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the value went down and on the 
thumbnails, the value went down 

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dramatically. 
So I show the progress of this 

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portfolio every single week, 
week by week. 

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That's really one of the big 
things with this channel is if 

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you want to follow along a real 
portfolio and see how things go 

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over year. 
Ears of time. 

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I'm going to continue to track 
this and build it as my primary 

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Investment Portfolio. 
The goal of it is to grow a 

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stream of passive income and 
every single company or ETF that

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I invest in helps accomplish 
that goal. 

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So I've different income funds 
like the covered call ETF a 

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different real estate holdings 
and I even have some tech 

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companies that are long-term 
dividend payers like Microsoft 

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and Apple, but every one of 
these companies pays dividends 

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and all that, money flows, back 
into my account through the cash

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balance this $158. 
Amen, just through dividends. 

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If I look at different ways to 
track this. 

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I have a spreadsheet that I 
offered a patron members that 

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helps track the growth of this 
overtime. 

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For instance. 
It has a section that shows you 

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your upcoming dividends. 
I can see that Nikes going to 

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pay me, nine dollars on the 
first of the month. 

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So the first of next month, I'll
be paid $9. 

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Then we have tiro price on the 
7th, hang me $30, then we have 

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Vici. 
This is a new holding paying me 

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$108 on the 8th of next month. 
Then we have store Capital with 

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136. 
That's a Reit. 

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That's a big dividend payer. 
Then we have realty income 

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paying me $15. 
That's a monthly payer. 

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And then we have MGP MGM Growth 
Properties paying me $21. 

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And this is all the ones that 
are officially declared right 

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now. 
So this isn't projected income. 

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This is really what I'm going to
be paid over the next couple 

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weeks. 
Now, one thing I have to mention

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about this style of investing 
which is dividend growth 

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investing is not only has it 
been proven to give very good 

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stable reliable returns with 
limited downside and lower 

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volatility, but it's also an 
incredibly fun. 

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Addicting form of investing. 
It is an addicting form of 

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investing if I go to my activity
feed and filter just by the 

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dividends and see how much money
is routinely constantly flowing 

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into my account. 
This is fun. 

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If I look at Visa, they paid me 
on the first of the month. 

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$7.49. 
Thank you Visa. 

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Then we have jeppie the covered 
call ETF. 

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They paid their monthly dividend
of $110. 

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Then we have Texas Roadhouse. 
They paid me $15. 

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I can go and buy a meal at Texas
Roadhouse with the money. 

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They just paid me then we 
Johnson & Johnson, they paid me 

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$14, Microsoft paid me there, 
$34. 

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Thank you for that. 
Microsoft. 

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Then Target paid me $7. 
Nextera energy a utility 

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company. 
Paid me $8. 

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Then we have realty income Corp.
They paid me $15. 

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That's a monthly dividend. 
Then we have some big ones Home 

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Depot, paid me $52. 
That's enough that I can go 

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browse around and Home Depot and
buy some stuff. 

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Fifty-two dollars is a lot of 
money. 

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It's like having a gift card to 
Home Depot and they pay me this 

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four times a year. 
Then we have Dominion Energy $41

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for them. 
We have Schwab's dividend ETF. 

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Seh. 
Di. 

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This one. 
Paid me a hundred and forty 

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dollars and then we have T Rowe 
Price, which paid me $11 and 

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keep in mind that this amount of
dividends is just in the past 

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month. 
This is the past 30 days next 

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month. 
It will be the same thing. 

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Another slew of companies 
different companies that pay me 

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dividends and this goes on month
after month after month. 

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And in fact this month, these 
amount of dividends is one of 

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the lowest paying months of the 
year. 

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So next month. 
It should be quite a bit more. 

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Now this type of investing where
I see the money up here. 

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My cash. 
Without any type of interaction 

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from me. 
It just continues to grow 

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without me doing anything is 
very addicting. 

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It's a fun way to invest. 
It's completely passive and I do

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think that dividend growth 
investing does have very good 

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risk-adjusted returns some of 
the Holdings. 

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I've been focusing on more 
recently are in the higher 

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yielding category. 
I'm buying one real estate 

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company called Vici. 
They own iconic, 

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indistinguishable very complex 
properties like the Venetian and

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Caesars Palace in Vegas. 
They collect rent from them, 

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every single quarter and they 
distribute that out to their 

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shareholders, which is anyone 
that buys a stock. 

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And then outside of ichi, the 
other Holdings I've been adding 

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to right now RSC HD Schwab's 
u.s. 

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Dividend Equity ETF. 
I sold out of AT&T and added 

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that fifteen thousand dollars to
this holding. 

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So that's why I have S CH D. 
This one. 

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I think will do well over time 
and then we have JP, JP Morgan's

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Equity premium income fund. 
This one pays out a very high 

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yield every single month by 
doing a covered call selling 

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strategy. 
So so these are two Holdings 

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that I think will increase my 
income through dividends 

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dramatically. 
Those are the three Holdings 

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that I've been building. 
Up recently Vici geppi and seh. 

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Di, and I'll continue to add to 
each of these overtime. 

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Now, if you want to see my 
entire portfolio, there's a link

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in the description of this 
video. 

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That's updated. 
It allows you to click into any 

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of these categories and see 
which companies I'm holding. 

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So I'll put that link in the 
description for you. 

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Now moving on. 
We have an interview from Warren

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Buffett and Charlie Munger 
talking about a variety of 

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different subjects. 
And I think there's some 

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interesting things to highlight 
from this. 

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Charlie munger's asked 
specifically about Jack, ma the 

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Chinese banking system and his 
thoughts on that compared to the

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The u.s. 
System. 

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I don't want the all of the 
Chinese system, but I certainly 

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would like to have the financial
part of it in my own country. 

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He actually says that he likes 
the Chinese system in terms of 

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how they regulate their 
financial companies. 

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And he thinks the way that we 
regulate our system in the u.s. 

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Is way to lakhs. 
Although Aunt Financial was 

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bringing banking to a huge 
unbanked population before. 

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I mean, there were things that 
they were doing that. 

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I know but you don't want to 
sway her to run by the banks 

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have the Implicit guarantee of 
the government and you don't you

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don't want to let any swimmer 
rob a bank. 

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Now, you can look up the 
definition of swinger and 

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there's a couple different 
definitions, one of which I do 

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not believe fits within the 
context that Charlie Munger is 

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using here. 
It doesn't seem to fit the other

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one being a lively boisterous 
person that goes to lots of 

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social events. 
I think is more appropriate with

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the way that he's using it but 
interesting phrase for him to 

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use he goes on explaining why he
doesn't want a swinger to be in 

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charge of the banking system. 
System. 

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Oh, what about what they've done
to Jack? 

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Ma. 
He's kind of disappeared as 

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well. 
Yes, but Jack was one of the 

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swingers, so you just got his, 
they said the hell with you. 

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He basically got damn speech 
when he said to her one party 

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state, where you guys are a 
bunch of jerks blown at what 

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you're doing, and I know what 
I'm doing and I want to do it 

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better and he was going to wade 
into Banking and no rules and 

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just do whatever he pleased. 
He also have drunk a lot. 

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That is gamma is did the right 
thing. 

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They just called in Jack Vaughn.
Say, you are going to do it. 

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Sonny, Charlie. 
Munger goes on to expound. 

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What he thinks is the problem in
the US with the banking system. 

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He terms, it Shadow banking, 
which is basically a term for 

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fintech people say, well, it's 
the unbanked. 

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Well, the whole leveraged. 
Buyout lending aberration 

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practically left, the banks and 
went to Shadow banks in our own 

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country. 
He's right? 

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And this is clearly what's going
on right now? 

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Banking is increasingly being 
done by non Banks. 

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If we look at M1 Finance for 
Instance and one Finance is not 

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a bank. 
It's a brokerage, but I can go 

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to borrow and I'm eligible to 
borrow up to ninety seven 

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thousand. 
Nine hundred dollars at 2% 2%, 

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compare that to j.p. 
Morgan or Bank of America, or 

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Citibank or Wells Fargo. 
None of them can compete with 

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this, not even close. 
Even if you have a brokerage 

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account with them. 
None of them can compete with 

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this rate banking is being done 
by non Banks like em on finance 

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and frankly, they're doing it 
better. 

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They have better more convenient
technology. 

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Easier to use. 
And even their rates in many 

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cases is much more appealing 
than traditional Banks, but 

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Charlie's primary concern with 
all of this is the lack of 

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Regulation that exists with 
fintech companies. 

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It hasn't caused any big trouble
yet, but I'll be amazed. 

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If it doesn't. 
Well, Jamie dimon is said that 

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and look out for the some of the
fintech areas that they're. 

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Yes, I agree with Jeremy down on
that. 

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I don't think allowing all this 
winners in the world act. 

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As though their Banks is a good 
idea. 

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Jamie. 
Dimon has brought up this same. 

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Concern. 
Many times saying that banking 

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is done by non Banks. 
They don't have to play by the 

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same rules. 
They don't have the same 

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regulations. 
And if this goes on for too 

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long, all these unregulated 
fintech companies in the 

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financial realm, he thinks it 
could cause systemic risk. 

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Now on the subject of fintech, 
Charlie munger's asked once 

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again about Robin Hood. 
Last time he spoke on this. 

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He said that Robin Hood is not 
good for civilization. 

229
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He didn't say anything positive 
about it. 

230
00:10:23,700 --> 00:10:27,400
In fact, he was heavily 
criticised as being elitist. 

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00:10:27,400 --> 00:10:30,700
Now, he's had some time and 
maybe try Hunger has come 

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around, updated his opinion, on 
it, and changed. 

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00:10:33,500 --> 00:10:36,300
His thoughts on Robin Hood. 
So, he's asked, once again, 

234
00:10:36,300 --> 00:10:38,600
about this brokerage. 
Here's his response. 

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00:10:38,600 --> 00:10:41,800
Maybe we should talk about Robin
Hood and some of the areas that 

236
00:10:41,800 --> 00:10:44,600
come up beneath contempt. 
Okay, so it doesn't seem like 

237
00:10:44,600 --> 00:10:46,900
his opinion on Robin Hood has 
changed too much. 

238
00:10:47,200 --> 00:10:49,300
Why? 
Well, it's a gambling parlor 

239
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masquerading as a respectable 
business. 

240
00:10:51,600 --> 00:10:55,800
Well over a gambling parlor, but
it is a gambling parlor. 

241
00:10:55,800 --> 00:10:59,200
It's not incurring people. 
Encouraging people to buy. 

242
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A very, very, very low cost, 
index fund and holder for 50 

243
00:11:03,400 --> 00:11:05,200
years. 
I will guarantee you that you 

244
00:11:05,200 --> 00:11:07,800
will not walk in there. 
Get that advice instead you'll 

245
00:11:07,800 --> 00:11:09,600
get advice on how you can trade 
options. 

246
00:11:09,600 --> 00:11:14,200
And and they'll tell you, that 
is telling people are paying 

247
00:11:14,200 --> 00:11:16,000
commissions when the 
commission's are simply 

248
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disguised in the trading. 
It's basically a sleazy 

249
00:11:20,600 --> 00:11:24,100
disreputable operation. 
So, Charlie Munger doesn't seem 

250
00:11:24,100 --> 00:11:25,500
to care too much about the 
backlash. 

251
00:11:25,500 --> 00:11:28,300
She received last time. 
He criticized Robin Hood. 

252
00:11:28,400 --> 00:11:30,900
He's doubled down on it. 
He It's a gambling, parlor 

253
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masquerading as a brokerage, a 
reputable brokerage, and it 

254
00:11:33,900 --> 00:11:37,100
actively entices people into 
short-term strategies that make 

255
00:11:37,100 --> 00:11:39,900
Robin Hood a lot of money, but 
they don't generate a lot of 

256
00:11:39,900 --> 00:11:41,900
wealth for the people pursuing 
these strategies. 

257
00:11:42,000 --> 00:11:44,000
So his opinion on Robin Hood, 
hasn't really changed for the 

258
00:11:44,000 --> 00:11:45,200
better. 
If anything. 

259
00:11:45,200 --> 00:11:47,600
It's gotten worse. 
Now, moving on we get to one of,

260
00:11:47,600 --> 00:11:50,100
I think the most incredible 
parts of this interview. 

261
00:11:50,400 --> 00:11:53,900
They talk about how they 
purchased a difficult business, 

262
00:11:54,200 --> 00:11:56,800
a very difficult business, one 
that's more difficult to run 

263
00:11:56,800 --> 00:11:59,700
than they anticipated. 
It was a mistake to purchase. 

264
00:11:59,800 --> 00:12:02,400
It and they praised the people 
that sold it because they said 

265
00:12:02,400 --> 00:12:06,200
it was smart of them to sell 
this business, but we can see we

266
00:12:06,200 --> 00:12:08,100
soon realized it was about to 
lose what? 

267
00:12:08,500 --> 00:12:11,500
Yeah, and so we we sold a 
department store. 

268
00:12:11,500 --> 00:12:16,600
It went out of business in 1983,
but hussars which was the souks 

269
00:12:16,600 --> 00:12:18,900
talking department store. 
They went out of business in not

270
00:12:18,900 --> 00:12:22,600
around 1985 or sick, they're 
gone and the people they're 

271
00:12:23,100 --> 00:12:26,400
quite understandably wanted to 
build more Branch stores, but 

272
00:12:26,500 --> 00:12:29,100
you don't want to put more money
into a business. 

273
00:12:29,100 --> 00:12:30,800
That's Just a value. 
Now. 

274
00:12:30,800 --> 00:12:33,800
We put six million dollars in 
capital on that and the dumb 

275
00:12:33,800 --> 00:12:36,100
decision everything. 
So they described it as this 

276
00:12:36,100 --> 00:12:39,300
difficult declining business, 
that's destined for failure. 

277
00:12:39,400 --> 00:12:41,900
That the people that sold it, 
where the Smart Ones, they made 

278
00:12:41,900 --> 00:12:44,400
a mistake buying it and now they
needed out. 

279
00:12:44,400 --> 00:12:47,200
So, they sold the company at a 
loss collecting, six million 

280
00:12:47,200 --> 00:12:49,300
dollars and here's what happened
with that. 

281
00:12:49,300 --> 00:12:51,600
Six million dollars. 
That's 6 million. 

282
00:12:52,300 --> 00:12:56,100
What would it be worth now 
Charlie, they got four tenths of

283
00:12:56,100 --> 00:12:59,600
Bashar great many billions, so 
it's tens of billions. 

284
00:12:59,800 --> 00:13:01,100
Yeah, out the department store. 
It. 

285
00:13:01,100 --> 00:13:02,400
Succeeded. 
We'd have a nice little 

286
00:13:02,400 --> 00:13:04,600
businessman. 
It sounds a little track. 

287
00:13:04,600 --> 00:13:07,600
But because it failed, we've 
made 2500, we very much more 

288
00:13:07,600 --> 00:13:10,900
than 25 billion in that didn't 
look like that. 

289
00:13:10,900 --> 00:13:15,200
I Bill had that business, 
succeeded there, six million 

290
00:13:15,200 --> 00:13:18,000
dollars would have been wrapped 
up in that business and they 

291
00:13:18,000 --> 00:13:20,400
would have had whatever profits 
that business generated. 

292
00:13:20,400 --> 00:13:22,900
But since it failed and they had
that six million dollars to 

293
00:13:22,900 --> 00:13:24,500
reinvest into different 
businesses. 

294
00:13:24,700 --> 00:13:27,800
It ended up growing to well over
25 billion dollars. 

295
00:13:28,100 --> 00:13:30,900
So the failing of the business 
Actually ended up to be a good 

296
00:13:30,900 --> 00:13:32,500
thing. 
But at the time it didn't seem 

297
00:13:32,500 --> 00:13:34,200
that way. 
This is one thing that I think 

298
00:13:34,200 --> 00:13:36,200
is important to highlight from 
Warren Buffett and Charlie 

299
00:13:36,200 --> 00:13:39,600
Munger because when they have a 
failing business, they sell it. 

300
00:13:39,900 --> 00:13:42,500
They don't hang on to a failing 
business just because it's 

301
00:13:42,500 --> 00:13:45,000
buy-and-hold Diamond hands, 
never sell. 

302
00:13:45,200 --> 00:13:49,300
If the business is failing, if 
it's declining, if it's destined

303
00:13:49,300 --> 00:13:51,600
for failure in the future, they 
sell it. 

304
00:13:51,600 --> 00:13:53,200
And look for better 
opportunities. 

305
00:13:53,400 --> 00:13:55,300
Now, the last little thing that 
I'll highlight from this 

306
00:13:55,300 --> 00:13:58,300
interview that I thought was 
interesting, was that Charlie 

307
00:13:58,400 --> 00:14:01,500
has fallen in love. 
Of with zoom and this is brought

308
00:14:01,500 --> 00:14:03,100
up at the last part of the 
interview. 

309
00:14:03,400 --> 00:14:05,500
She asks him. 
Why he likes Zoom So Much 

310
00:14:05,500 --> 00:14:06,200
Charlie. 
I hear. 

311
00:14:06,200 --> 00:14:09,700
You're pretty Adept at Zoom. 
Oh I fall in love with them. 

312
00:14:09,800 --> 00:14:11,800
How often do you talk to people 
on Zoom? 

313
00:14:12,100 --> 00:14:15,300
At least three times a day. 
I made a deal on Australia. 

314
00:14:15,300 --> 00:14:19,400
I think Zoom is here to assist 
it just adds so much 

315
00:14:19,400 --> 00:14:20,500
convenience. 
Now. 

316
00:14:20,500 --> 00:14:22,900
Buffett does point out that 
Charlie munger's in a little bit

317
00:14:22,900 --> 00:14:25,700
different of a situation, the 
most people because he's 97 

318
00:14:25,700 --> 00:14:27,800
years old. 
So he's more reliant on video 

319
00:14:27,800 --> 00:14:29,600
conferencing just because he's 
less. 

320
00:14:29,800 --> 00:14:31,600
Mobile. 
He's not as mobile and agile as 

321
00:14:31,600 --> 00:14:34,600
they used to be. 
Now, even though he's he's 

322
00:14:34,600 --> 00:14:37,300
heaping Praises on zoom in 
particular. 

323
00:14:37,500 --> 00:14:40,600
I don't think that's a reason to
run out and buy stock and zoom 

324
00:14:40,700 --> 00:14:43,400
just because Charlie Munger 
likes it because they do have a 

325
00:14:43,400 --> 00:14:46,800
long list of competitors that 
are well, funded and ferociously

326
00:14:46,800 --> 00:14:48,000
competing with zoom. 
Right now. 

327
00:14:48,200 --> 00:14:51,200
You have apple with FaceTime. 
They're making big changes that 

328
00:14:51,200 --> 00:14:52,100
are mimicking. 
Zoom. 

329
00:14:52,300 --> 00:14:54,800
You have Microsoft with teams. 
They're going to make that at 

330
00:14:54,800 --> 00:14:56,800
the Forefront of their new 
operating system. 

331
00:14:56,900 --> 00:14:59,400
You have course have other 
companies like slack, you have 

332
00:14:59,400 --> 00:15:02,300
gue I'll meet you have lots of 
different alternatives to zoom. 

333
00:15:02,300 --> 00:15:04,900
So we'll see if Zoom can pass 
the test of time right now. 

334
00:15:04,900 --> 00:15:07,400
They're basically competing 
directly with all the big tech 

335
00:15:07,400 --> 00:15:09,000
companies. 
So that's some of the things 

336
00:15:09,000 --> 00:15:11,100
that I thought were the most 
interesting from this interview.

337
00:15:11,100 --> 00:15:13,400
If you watched it and you found 
other things, let me know. 

338
00:15:13,600 --> 00:15:16,300
Now, moving on, we have to jump 
into this article called the 

339
00:15:16,300 --> 00:15:19,600
Lord of Roth's. 
This is one part of a series of 

340
00:15:19,600 --> 00:15:23,100
articles that have come forth 
that highlight how the rich and 

341
00:15:23,100 --> 00:15:24,600
wealthy. 
People that have billions of 

342
00:15:24,600 --> 00:15:28,500
dollars are using very creative 
ways and loopholes to Shield 

343
00:15:28,500 --> 00:15:31,200
them from paying any Axes in 
some case. 

344
00:15:31,200 --> 00:15:33,900
They're making billions of 
dollars of real money real 

345
00:15:33,900 --> 00:15:37,400
realizable gains and paying no 
taxes on that money. 

346
00:15:37,700 --> 00:15:41,100
This is just one segment of it. 
One part of this overall series,

347
00:15:41,400 --> 00:15:44,200
and this one's called the Lord 
of Ross and it highlights Peter 

348
00:15:44,200 --> 00:15:45,700
teal. 
Now, if you're not familiar with

349
00:15:45,700 --> 00:15:48,500
Peter teal, he is one of I think
the smartest people in the 

350
00:15:48,500 --> 00:15:50,000
world. 
He's created a lot of companies 

351
00:15:50,000 --> 00:15:53,300
like PayPal can name one. 
That's a pretty decent company 

352
00:15:53,300 --> 00:15:55,600
that he founded his also started
palantir. 

353
00:15:55,900 --> 00:15:58,300
Another, pretty cool company. 
That you may have heard of if 

354
00:15:58,300 --> 00:16:01,100
you've been on YouTube for more 
than Five minutes, he started 

355
00:16:01,100 --> 00:16:04,500
all sorts of creative amazing 
companies and even more. 

356
00:16:04,500 --> 00:16:09,700
So he has a history of doing 
pretty incredible things to get 

357
00:16:09,700 --> 00:16:12,000
things the way that he wants. 
For instance years ago. 

358
00:16:12,000 --> 00:16:14,900
It wasn't well known that Peter 
teal was gay because he wasn't 

359
00:16:14,900 --> 00:16:16,600
ready to come out with that 
information. 

360
00:16:16,800 --> 00:16:19,400
It was a secret something that 
he wanted to keep private. 

361
00:16:19,700 --> 00:16:23,800
Well a website called Gawker 
outed him and they did it 

362
00:16:23,800 --> 00:16:27,200
without his permission. 
They did it revealing a secret 

363
00:16:27,200 --> 00:16:29,600
that was personal to him and 
Peter too. 

364
00:16:29,800 --> 00:16:33,500
Didn't appreciate that. 
So silently, he looked for ways 

365
00:16:33,500 --> 00:16:37,100
to exact revenge on Gawker, and 
he found an opportunity. 

366
00:16:37,300 --> 00:16:40,800
The case with Hulk Hogan and the
explicit personal video that 

367
00:16:40,800 --> 00:16:43,900
Gawker decided to reveal Peter 
teal silently funded, Hulk, 

368
00:16:43,900 --> 00:16:46,200
Hogan's case with the most 
expensive, lawyers. 

369
00:16:46,200 --> 00:16:50,000
That money could buy, he bought 
Hulk Hogan the best lawyers and 

370
00:16:50,000 --> 00:16:52,500
they destroyed Gawker. 
It's out of business because of 

371
00:16:52,500 --> 00:16:54,800
Peter teal. 
Now, I think he did the world, a

372
00:16:54,808 --> 00:16:57,600
great service and taking down 
Gawker personally, but that's a 

373
00:16:57,608 --> 00:16:58,800
side from the point. 
The point. 

374
00:16:58,800 --> 00:17:00,800
Is that Peter teal. 
All is probably a genius. 

375
00:17:00,800 --> 00:17:04,300
He starts companies very big 
good companies and he even 

376
00:17:04,300 --> 00:17:07,099
destroys companies. 
Seemingly at will, he's not 

377
00:17:07,099 --> 00:17:09,200
somebody that you would really 
want to mess with or want to 

378
00:17:09,200 --> 00:17:11,500
insult because you don't know 
what he's able to do. 

379
00:17:11,599 --> 00:17:14,599
Well, teal is also very public 
with his politics and he's 

380
00:17:14,599 --> 00:17:16,900
outwardly critical of our tax 
system. 

381
00:17:17,200 --> 00:17:20,400
It says, a founder of PayPal has
publicly condemned quote, 

382
00:17:20,400 --> 00:17:23,700
confiscatory taxes. 
He's been a major funder of one 

383
00:17:23,700 --> 00:17:27,000
of the most prominent, anti-tax 
political action, committees in 

384
00:17:27,000 --> 00:17:29,600
the country and he's bankrolled 
a group that promotes. 

385
00:17:29,700 --> 00:17:33,500
Building floating Nations, that 
would impose no compulsory 

386
00:17:33,500 --> 00:17:35,900
income taxes. 
So he's actually trying to 

387
00:17:35,900 --> 00:17:39,900
create a new nation. 
The whole goal of the nation is 

388
00:17:39,900 --> 00:17:42,600
that it won't tax, you know, 
compulsory taxes. 

389
00:17:43,200 --> 00:17:46,600
That's the level that he's going
to because of his hatred of 

390
00:17:46,600 --> 00:17:50,000
taxes, as he's wanting to 
bankroll the creation of a new 

391
00:17:50,000 --> 00:17:53,100
nation that won't tax him. 
Now this article goes on to 

392
00:17:53,108 --> 00:17:55,800
explain how he didn't 
necessarily need to create a new

393
00:17:55,800 --> 00:17:58,300
country in order to avoid paying
taxes. 

394
00:17:58,600 --> 00:18:01,800
It says over the last Last 20 
years, teal has quietly turned 

395
00:18:01,800 --> 00:18:05,900
his Roth IRA, a humdrum 
retirement vehicle intended to 

396
00:18:05,900 --> 00:18:08,200
Spur Americans to save for their
golden years. 

397
00:18:08,600 --> 00:18:11,500
Into a gargantuan tax-exempt 
piggy bank. 

398
00:18:11,700 --> 00:18:14,900
So someone got ahold of these 
confidential IRS documents, and 

399
00:18:14,900 --> 00:18:15,800
they're sharing it. 
Now. 

400
00:18:16,000 --> 00:18:19,500
They say using stock deals. 
Unavailable to most people, teal

401
00:18:19,500 --> 00:18:22,500
has taken a retirement account 
worth less than two thousand 

402
00:18:22,500 --> 00:18:27,600
dollars in 1999 and spun it into
a five billion dollar windfall. 

403
00:18:28,100 --> 00:18:31,700
So when he turns 60 Have five 
billion dollars, completely. 

404
00:18:31,700 --> 00:18:34,000
Untaxed. 
None of that wealth generated. 

405
00:18:34,000 --> 00:18:37,000
There is going to the 
government, that is absolutely 

406
00:18:37,000 --> 00:18:39,400
incredible. 
Now, to put that in perspective.

407
00:18:39,500 --> 00:18:44,700
The average Roth IRA is 39,000 
Peter thiel's Roth IRA is 5 

408
00:18:44,700 --> 00:18:47,100
billion. 
So we have that little speck 

409
00:18:47,100 --> 00:18:49,000
there. 
That is the average then you 

410
00:18:49,000 --> 00:18:51,800
have Peter thiel's Roth IRA. 
They give another comparison 

411
00:18:51,800 --> 00:18:53,300
just to show how much money this
is. 

412
00:18:53,500 --> 00:18:56,500
They say that if every one of 
the 2.3 million people in 

413
00:18:56,500 --> 00:18:59,500
Houston, Texas were to deposit 
two thousand dollars into their 

414
00:18:59,600 --> 00:19:02,800
R bank account today that still 
want an equal this five billion 

415
00:19:02,800 --> 00:19:05,200
dollars. 
So, newsflash, five billion 

416
00:19:05,200 --> 00:19:07,900
dollars is a lot of money and 
Peter teal is going to have a 

417
00:19:07,900 --> 00:19:11,600
lot of tax free money available 
to him when you turn 60 years 

418
00:19:11,600 --> 00:19:14,000
old. 
Now, how did all of this happen?

419
00:19:14,000 --> 00:19:18,000
How was Peter teal able to grow 
a Roth IRA with a limit of only 

420
00:19:18,000 --> 00:19:21,300
six thousand dollars per year, 
being able to be deposited into 

421
00:19:21,300 --> 00:19:22,600
it? 
25 billion dollars. 

422
00:19:23,000 --> 00:19:24,900
Well, it starts with the 
formation of PayPal, way. 

423
00:19:24,900 --> 00:19:28,100
Back in 2001. 
Someone named Tom Anderson, who 

424
00:19:28,100 --> 00:19:30,800
is the pens, co-founder? 
Worked with Peter teal and the 

425
00:19:30,808 --> 00:19:33,900
other Executives when they're 
setting up PayPal, if you really

426
00:19:33,900 --> 00:19:36,700
think this is going to be big, 
you know, you might want to 

427
00:19:36,700 --> 00:19:39,400
consider this new Roth. 
You're not going to pay tax on 

428
00:19:39,400 --> 00:19:41,600
it when you take it out. 
It's a no-brainer. 

429
00:19:41,600 --> 00:19:44,600
The math was compelling teal. 
Wouldn't get a tax break up 

430
00:19:44,600 --> 00:19:46,700
front. 
But he'd avoid an immense tax 

431
00:19:46,700 --> 00:19:50,100
bill later on if the investment 
surged in value, they 

432
00:19:50,100 --> 00:19:53,100
immediately grasped that 
Anderson said and they did it. 

433
00:19:53,100 --> 00:19:56,900
So he was able to purchase a lot
of PayPal, right at the founding

434
00:19:56,900 --> 00:19:58,400
of it. 
They paid. 

435
00:19:59,600 --> 00:20:04,000
Zero zero one dollar per share. 
That's just a tenth of a penny. 

436
00:20:04,400 --> 00:20:08,500
So he purchased with $1700 
$1700. 

437
00:20:08,800 --> 00:20:12,400
He purchased 1.7 million shares 
of PayPal in hindsight. 

438
00:20:12,400 --> 00:20:13,700
I think that was a pretty good 
deal. 

439
00:20:13,800 --> 00:20:16,200
Now, from there. 
He basically did the same thing 

440
00:20:16,200 --> 00:20:19,100
over and over again, to grow 
this Roth, even more, it was 

441
00:20:19,100 --> 00:20:22,600
upwards of 60 million dollars in
value in like 2011. 

442
00:20:22,800 --> 00:20:25,500
And he used it to invest in 
other Silicon Valley startups, 

443
00:20:25,700 --> 00:20:28,900
even ones that he found it again
that weren't even private, so he

444
00:20:28,900 --> 00:20:31,300
could buy in Bargain deals. 
Another company. 

445
00:20:31,300 --> 00:20:33,200
Outside of PayPal is Palin 
Terry. 

446
00:20:33,200 --> 00:20:36,400
This is another one that he 
helped found way back in 2003, 

447
00:20:36,700 --> 00:20:38,600
that he was able to purchase a 
ton of shares. 

448
00:20:38,600 --> 00:20:40,400
They're called founder shares 
before. 

449
00:20:40,400 --> 00:20:43,700
The company was even public. 
So of course, it wasn't worth 

450
00:20:43,700 --> 00:20:47,000
much when he put it in his Roth 
IRA, but now palantir is a big 

451
00:20:47,000 --> 00:20:49,300
public company worth tens of 
billions of dollars. 

452
00:20:49,600 --> 00:20:53,100
So in both cases, he continued 
to buy these Founders shares and

453
00:20:53,100 --> 00:20:56,100
different companies and hold 
them in as Roth IRA to let it 

454
00:20:56,100 --> 00:20:58,600
grow into billions of dollars of
untaxed money. 

455
00:20:58,600 --> 00:21:01,800
Now, in an interview, one of the
author is a propublica comments 

456
00:21:01,800 --> 00:21:06,100
on on the hacking of us tax law 
by these billionaires. 

457
00:21:06,100 --> 00:21:09,500
This is one of the questions 
that he's asked seems like us. 

458
00:21:09,500 --> 00:21:12,500
Tax law is getting hacked by the
rich. 

459
00:21:12,500 --> 00:21:14,900
In this case. 
We're talking about billionaires

460
00:21:14,900 --> 00:21:17,200
and there's sort of this 
asymmetrical data thing going 

461
00:21:17,200 --> 00:21:20,400
on, where the billionaires can 
constantly, adjust their 

462
00:21:20,400 --> 00:21:23,900
approaches their tactics to find
these enormous loopholes. 

463
00:21:24,100 --> 00:21:27,700
And yet Congress doesn't have 
even anonymized data to 

464
00:21:27,700 --> 00:21:30,300
understand how the law is. 
Being exploited. 

465
00:21:30,300 --> 00:21:33,500
I'm sure they're just as 
surprised as we are today that 

466
00:21:33,500 --> 00:21:36,700
this is even happening because 
we've heard some of the response

467
00:21:36,700 --> 00:21:39,400
to Pro public has initial 
reports. 

468
00:21:39,400 --> 00:21:42,700
Oh isn't this sort of a 
structural problem where you 

469
00:21:42,700 --> 00:21:44,600
know, for especially the digital
age? 

470
00:21:44,600 --> 00:21:47,100
Congress has to change. 
The way law is made, they need 

471
00:21:47,100 --> 00:21:50,400
to be able to push out software 
updates to the IRS on a constant

472
00:21:50,400 --> 00:21:53,200
basis. 
They talk about billionaires 

473
00:21:53,200 --> 00:21:55,700
hacking tax law. 
But one thing I want to point 

474
00:21:55,700 --> 00:21:58,900
out is that in 1999. 
I don't think that Peter teal 

475
00:21:58,900 --> 00:21:59,800
was a billionaire. 
There. 

476
00:22:00,100 --> 00:22:04,200
I think he was probably well off
founder of a company, but I 

477
00:22:04,208 --> 00:22:06,600
don't think he had any where 
near the wealth that he has 

478
00:22:06,600 --> 00:22:08,700
today. 
All of that happened after 

479
00:22:08,700 --> 00:22:11,700
PayPal was a success. 
So, this isn't like some 

480
00:22:11,700 --> 00:22:14,400
already, big billionaire found 
some loophole. 

481
00:22:14,700 --> 00:22:17,900
This was somebody that put 
founder shares of a company that

482
00:22:17,900 --> 00:22:20,300
still had a lot of unknowns in 
his Roth IRA. 

483
00:22:20,300 --> 00:22:23,300
And it turned out to be one of 
the biggest successes in Silicon

484
00:22:23,300 --> 00:22:27,100
Valley, even companies like 
pounder is an incredibly unique 

485
00:22:27,100 --> 00:22:29,800
success. 
Most companies started in Look 

486
00:22:29,800 --> 00:22:32,300
on Valley fail and Peter, 
thiel's PayPal could have been 

487
00:22:32,300 --> 00:22:35,200
one of the unknown thousands of 
companies that failed and you 

488
00:22:35,208 --> 00:22:37,300
would not have billions of 
dollars in its Roth IRA. 

489
00:22:37,300 --> 00:22:39,700
If that was the case. 
The reason that he has billions 

490
00:22:39,700 --> 00:22:42,400
of dollars in his Roth IRA is 
because a company that he 

491
00:22:42,400 --> 00:22:44,600
founded turned out to be 
successful. 

492
00:22:44,700 --> 00:22:46,600
So that's my thoughts on this. 
I think it's going to be very 

493
00:22:46,600 --> 00:22:49,900
difficult for Congress or the 
IRS to update laws on this 

494
00:22:50,200 --> 00:22:53,400
because everything that Peter 
Thiel did was a little bit of 

495
00:22:53,400 --> 00:22:56,800
luck with his company's turning 
out well and just good planning.

496
00:22:56,800 --> 00:22:59,400
He put these companies in as 
Roth IRA deck. 

497
00:22:59,600 --> 00:23:02,600
Jade's ago far before, they were
the big monstrous companies that

498
00:23:02,600 --> 00:23:04,400
we see today, but that's all for
today. 

499
00:23:04,400 --> 00:23:06,800
I hope you all enjoyed the show.
I'll have another episode out 

500
00:23:06,800 --> 00:23:08,400
soon. 
So make sure you're subscribed 

501
00:23:08,400 --> 00:23:10,400
to the channel. 
I'll see you next time.