1 00:00:00,100 --> 00:00:02,100 Welcome back, everyone. Today on details of Carlson 2 00:00:02,100 --> 00:00:04,100 show. Apple had a market cap of three 3 00:00:04,100 --> 00:00:06,400 trillion dollars. A market cap of three trillion 4 00:00:06,400 --> 00:00:08,700 dollars is pretty good, but it's not good enough. 5 00:00:08,700 --> 00:00:12,000 According to Dan Ives, he's an analyst for apple and other tech 6 00:00:12,000 --> 00:00:15,600 companies, he says that Apple will be at four trillion dollars 7 00:00:15,600 --> 00:00:18,300 in market cap. In 2024. 8 00:00:18,800 --> 00:00:20,900 Is he, correct? We're going to go through this 9 00:00:20,900 --> 00:00:24,200 interview and I'll give you my full analysis on his Arguments, 10 00:00:24,400 --> 00:00:26,800 for Apple hitting a four trillion dollar market cap. 11 00:00:26,800 --> 00:00:29,000 Now, we also have some news about Microsoft, that isn't 12 00:00:29,000 --> 00:00:31,500 quite as good. Microsoft says that it could 13 00:00:31,500 --> 00:00:35,600 abandon the Activision deal. If the judge ends up delaying, 14 00:00:35,600 --> 00:00:39,200 it Microsoft may end up losing this case if they lose the case, 15 00:00:39,200 --> 00:00:41,600 they're going to have to pay Activision Blizzard will be 16 00:00:41,600 --> 00:00:43,400 looking at the financials of Microsoft. 17 00:00:43,400 --> 00:00:45,100 How does that three billion dollar payment? 18 00:00:45,100 --> 00:00:47,500 Impact their cash flows? And then of course we have the 19 00:00:47,500 --> 00:00:50,600 big news of this year. We're having a good month, we're 20 00:00:50,600 --> 00:00:54,100 having a good year. We've had a monster Market rally 21 00:00:54,100 --> 00:00:56,100 in 2023. That's quote. 22 00:00:56,100 --> 00:00:59,400 Defied all expectations. Well, it shouldn't be defined 23 00:00:59,400 --> 00:01:02,900 our Asians in this video, I'm going to explain why I believe 24 00:01:02,900 --> 00:01:05,600 there's a high likelihood. The market will do well for the 25 00:01:05,600 --> 00:01:08,600 next couple of years. There's a lot of good evidence 26 00:01:08,600 --> 00:01:12,600 to show that this stock market can continue and of course it's 27 00:01:12,600 --> 00:01:14,400 Friday. So we have the financial advice 28 00:01:14,400 --> 00:01:17,400 from Tick Tock and this one. They're talking about how much 29 00:01:17,400 --> 00:01:20,900 money you need to feel like you can retire and that you've made 30 00:01:20,900 --> 00:01:22,000 it. So we're going to be going into 31 00:01:22,000 --> 00:01:24,700 tick-tocks retirement advice. Now, the first thing that I want 32 00:01:24,700 --> 00:01:27,800 to mention is if you're one of the new members to this channel, 33 00:01:27,800 --> 00:01:29,800 we do things a little differently here. 34 00:01:30,200 --> 00:01:32,900 And we have had a lot of new members recently. 35 00:01:33,100 --> 00:01:36,600 In fact, when I look at the analytics, just over the past 28 36 00:01:36,600 --> 00:01:38,500 days. So the past one month, we've had 37 00:01:38,500 --> 00:01:41,400 something like 6,500. Do people join? 38 00:01:41,400 --> 00:01:43,600 So, welcome all of you. I'm glad that you've decided to 39 00:01:43,600 --> 00:01:46,000 join the channel. A couple things that I think are 40 00:01:46,000 --> 00:01:48,500 worth mentioning. First of all, this is not a 41 00:01:48,500 --> 00:01:50,800 Channel or you just talk about stocks in the news. 42 00:01:51,100 --> 00:01:54,300 We do something different here where we actually show what 43 00:01:54,300 --> 00:01:57,400 we're doing with our money. I know that that's a somewhat 44 00:01:57,400 --> 00:01:59,800 unique concept, it's not something a lot of people. 45 00:02:00,000 --> 00:02:01,900 End up doing. But I've shown what I've been 46 00:02:01,900 --> 00:02:06,200 doing with my finances with my investments for four years now 47 00:02:06,200 --> 00:02:10,300 publicly every single week you can follow along like following 48 00:02:10,300 --> 00:02:12,400 a reality show. You can see exactly what I'm 49 00:02:12,400 --> 00:02:14,800 doing. Every trade buy and sell with 50 00:02:14,800 --> 00:02:18,100 transparency. The portfolio so far has gone up 51 00:02:18,100 --> 00:02:21,300 in 92 thousand dollars over those past four years giving a 52 00:02:21,308 --> 00:02:25,900 68 percent return beating out the S&P 500 by a little bit, but 53 00:02:25,900 --> 00:02:29,400 I can't celebrate too early this year still in progress. 54 00:02:29,900 --> 00:02:32,300 But this is the portfolio. It's a collection of high 55 00:02:32,300 --> 00:02:36,000 quality businesses that I call Compounders, these companies are 56 00:02:36,100 --> 00:02:39,800 exceptional they're the top of their class in their industry 57 00:02:40,100 --> 00:02:43,500 and I consider the companies in this portfolio to be not just 58 00:02:43,500 --> 00:02:47,400 good companies but I think they're the top 1% of the top 59 00:02:47,400 --> 00:02:50,800 1%, these companies are orders of magnitude better than the 60 00:02:50,800 --> 00:02:53,300 average company. They have assets, they have 61 00:02:53,300 --> 00:02:56,200 monopolistic positions, they have cash flow profiles. 62 00:02:56,500 --> 00:02:59,600 They have moats that are incredibly difficult for other 63 00:02:59,600 --> 00:03:01,700 companies. To compete with a lot of these 64 00:03:01,700 --> 00:03:05,300 companies, I consider to be outright monopolies. 65 00:03:05,300 --> 00:03:07,800 So what I've been doing over the past couple of years, is 66 00:03:07,800 --> 00:03:10,800 building a concentrated positions into these companies 67 00:03:11,000 --> 00:03:14,000 once that I think will continue to compound for a long period of 68 00:03:14,000 --> 00:03:16,800 time. Have incredibly long runways and 69 00:03:16,800 --> 00:03:21,000 I continue to just buy more and more of mostly the same exact 70 00:03:21,000 --> 00:03:24,300 companies over and over again. The goal of all of this is, of 71 00:03:24,300 --> 00:03:27,300 course, to make money money through capital appreciation. 72 00:03:27,500 --> 00:03:29,800 Money through dividends, the Dividends are cash. 73 00:03:29,900 --> 00:03:32,400 Add into the account which are then reinvested back into the 74 00:03:32,400 --> 00:03:34,400 portfolio. In the companies that I think, 75 00:03:34,400 --> 00:03:36,800 will give me the highest return at the given time. 76 00:03:36,800 --> 00:03:40,200 So I'm constantly in a Snowball Effect, reinvesting all the 77 00:03:40,200 --> 00:03:43,100 dividends paid into the individual stocks that I think 78 00:03:43,100 --> 00:03:46,000 present the best opportunity to look at which stocks present the 79 00:03:46,000 --> 00:03:48,200 best opportunity. I use something called the dip 80 00:03:48,200 --> 00:03:50,200 finder. It's one of the tools that shows 81 00:03:50,200 --> 00:03:53,300 me how all the companies in my portfolio are trading over 82 00:03:53,300 --> 00:03:55,700 different time lines so I can look at the 3-month the six 83 00:03:55,700 --> 00:03:58,400 month and so on and we try to have a lot of fun while doing 84 00:03:58,400 --> 00:04:00,400 this as well. But I think that Biggest thing 85 00:04:00,400 --> 00:04:03,600 I'd like to point out here, the biggest point of emphasis is by 86 00:04:03,600 --> 00:04:07,400 far the overall returns and transparency that I'm doing here 87 00:04:07,700 --> 00:04:10,500 still to this date. The majority of content 88 00:04:10,500 --> 00:04:13,800 creators, do not show their total performance since the 89 00:04:13,800 --> 00:04:16,600 beginning of their portfolio, they show different snaps. 90 00:04:16,600 --> 00:04:19,399 They might show different stocks here and there, they might show 91 00:04:19,399 --> 00:04:21,700 their current Holdings and hide all the ones that they've 92 00:04:21,700 --> 00:04:25,400 previously sold out of, but they don't show their total returns. 93 00:04:25,700 --> 00:04:29,800 This is my total returns since starting the portfolio and I 94 00:04:29,900 --> 00:04:32,200 We'll continue to show it every single week. 95 00:04:32,200 --> 00:04:34,200 So having established that, let's go ahead and jump into 96 00:04:34,200 --> 00:04:36,000 some news here. Now, the big headline news of 97 00:04:36,000 --> 00:04:39,400 the day is that Apple hit a trillion dollar market cap. 98 00:04:39,700 --> 00:04:43,300 A trillion dollars. 08 that was like a couple years ago they had 99 00:04:43,300 --> 00:04:46,200 a trillion dollars now they hit a two trillion dollar market 100 00:04:46,200 --> 00:04:48,500 cap. They doubled from a trillion 08, 101 00:04:48,500 --> 00:04:51,600 that was was that a year ago two years ago that they had a two 102 00:04:51,600 --> 00:04:54,500 trillion dollar market cap. Oh they hit three trillion 103 00:04:54,500 --> 00:04:56,800 dollars. We're at the third trillion 104 00:04:56,800 --> 00:05:00,400 dollar market cap for Apple seems like I'm having Shabu 105 00:05:00,400 --> 00:05:02,900 here. I remember the first time that 106 00:05:02,900 --> 00:05:05,100 Apple hit the 1 trillion dollar market cap. 107 00:05:05,300 --> 00:05:08,700 I own the company. When it hit that market cap that 108 00:05:08,700 --> 00:05:13,100 was after 2017, I can't remember precisely when, but I remember 109 00:05:13,100 --> 00:05:16,100 owning the stock when they hit that trillion dollar market cap, 110 00:05:16,500 --> 00:05:19,600 then they hit the two trillion and my thought was wow, that was 111 00:05:19,600 --> 00:05:23,000 a lot easier than them hitting the first trillion, Apple really 112 00:05:23,000 --> 00:05:25,700 cranked out the profit they increased, the cash flows 113 00:05:25,700 --> 00:05:29,000 hitting that second trillion, and now her at the third 114 00:05:29,000 --> 00:05:33,800 trillion dollar Market cap. Now, I've been an apple Fanboy. 115 00:05:34,000 --> 00:05:36,500 I've been a fan of both the products of this company, the 116 00:05:36,500 --> 00:05:40,000 services and the stock. I've been an enormous fan of 117 00:05:40,000 --> 00:05:42,000 Apple stock for a long period of time. 118 00:05:42,300 --> 00:05:44,900 This has been one of my earliest positions, I've continually 119 00:05:44,900 --> 00:05:48,500 added to it, I've not sold any of this stock and I'm very glad 120 00:05:48,500 --> 00:05:51,500 that I haven't because this has been a wonderful stock to own. 121 00:05:51,900 --> 00:05:54,900 I'm currently up in total value over 100 percent. 122 00:05:55,100 --> 00:05:57,100 So, I have a fifty five thousand dollar holding. 123 00:05:57,100 --> 00:05:59,700 Now, I'm in the green by around 27,000 dollars. 124 00:06:00,200 --> 00:06:03,200 But in actuality since the beginning, I would be up over 125 00:06:03,200 --> 00:06:06,200 two hundred percent on this stock had I not continually 126 00:06:06,200 --> 00:06:09,400 raise my cost basis by continually buying more of it. 127 00:06:09,700 --> 00:06:13,400 So I've only added to this company over and over again, but 128 00:06:13,400 --> 00:06:16,800 apples, one of these companies that no matter how big the 129 00:06:16,800 --> 00:06:21,200 company grows, no matter how high the valuation is, it always 130 00:06:21,200 --> 00:06:24,300 seems to outperform investors expectations in. 131 00:06:24,300 --> 00:06:27,100 This is something that I think is notable, I think this is a 132 00:06:27,108 --> 00:06:29,800 shortcoming of investors still to this day. 133 00:06:30,400 --> 00:06:34,100 When Apple hit a trillion dollar market cap, a lot of people 134 00:06:34,100 --> 00:06:37,300 thought that it's already the biggest company in the world, 135 00:06:37,400 --> 00:06:39,700 there's no way it's going to outperform. 136 00:06:40,000 --> 00:06:42,800 It has so many analysts covering the company. 137 00:06:42,900 --> 00:06:44,900 It has so many people using the products. 138 00:06:45,200 --> 00:06:47,700 How is there any Alpha to be had and a company? 139 00:06:47,700 --> 00:06:51,900 So widely known by everyone. But this company that was 140 00:06:51,900 --> 00:06:57,100 already the biggest in the world out performed, the S&P 500 by 141 00:06:57,100 --> 00:07:02,400 five times, over the past, Years, it five, except the 142 00:07:02,400 --> 00:07:06,300 performance of spy, it 3x, the performance of the QQQ. 143 00:07:06,600 --> 00:07:08,700 So even comparing it to the NASDAQ. 144 00:07:08,900 --> 00:07:13,100 It has completely destroyed the NASDAQ over the past five years 145 00:07:13,700 --> 00:07:17,900 it's out performed almost every Super investor and hedge fund in 146 00:07:17,900 --> 00:07:21,000 existence over the past five years and it's done. 147 00:07:21,000 --> 00:07:24,500 So while being the biggest company in the world, almost the 148 00:07:24,500 --> 00:07:27,100 entire time. Now, trying to explain this can 149 00:07:27,100 --> 00:07:30,200 be difficult. Why is Apple continually Arming 150 00:07:30,200 --> 00:07:32,800 expectations. Why are investors not pricing 151 00:07:32,800 --> 00:07:34,400 this company? Appropriately? 152 00:07:34,500 --> 00:07:36,800 It generates more cash, flows and expected. 153 00:07:36,900 --> 00:07:40,000 It, generates more profits higher amounts of Revenue higher 154 00:07:40,000 --> 00:07:42,700 returns and expected almost every single year. 155 00:07:43,100 --> 00:07:45,900 So, I want to look at one analysis explanation of why this 156 00:07:45,900 --> 00:07:48,800 stock is going from a three trillion dollar market cap to a 157 00:07:48,800 --> 00:07:50,400 four trillion. Next year. 158 00:07:50,500 --> 00:07:53,000 Dan Ives, please app will be a four trillion dollar company 159 00:07:53,000 --> 00:07:55,100 next year. He's still bullish on it. 160 00:07:55,100 --> 00:07:58,400 He still thinks it's underpriced and he has this explanation of 161 00:07:58,400 --> 00:08:01,000 what investors are missing. So we're going to be looking at 162 00:08:01,000 --> 00:08:04,500 this and I'll explain whether or not Dan Ives is correct. 163 00:08:04,500 --> 00:08:06,300 I think this time it happens Dan in. 164 00:08:06,300 --> 00:08:11,000 Do you think that the underlying fundamentals support that 165 00:08:11,000 --> 00:08:16,100 valuation more at this time than they did in January of 2022? 166 00:08:17,200 --> 00:08:20,800 Yeah, I think it's a historic day, not just for Cupertino but 167 00:08:20,800 --> 00:08:24,600 for Tack and I think when you look at the story here, specific 168 00:08:24,600 --> 00:08:27,200 on the services side, that's the key. 169 00:08:27,200 --> 00:08:28,800 Part of the sum of the parts, I think. 170 00:08:28,800 --> 00:08:31,100 Well, I the Bears. Miss and, you know, I don't 171 00:08:31,100 --> 00:08:33,000 think it ends here. We believe this, the four 172 00:08:33,000 --> 00:08:37,500 trillion dollar market cap by 2025 and at the end, the day 173 00:08:37,500 --> 00:08:40,900 Apple continues to play chess While others are playing 174 00:08:40,900 --> 00:08:41,900 checkers. Okay? 175 00:08:41,900 --> 00:08:44,300 So he has the basis of his argument there. 176 00:08:44,500 --> 00:08:46,300 The big thing that he highlighted that he says 177 00:08:46,300 --> 00:08:50,600 investors, Miss is the services part of it, Apple's playing 178 00:08:50,600 --> 00:08:52,800 chess, While others are playing checkers. 179 00:08:52,900 --> 00:08:55,700 If we bring up Apple hair on qual trim which is a website 180 00:08:55,700 --> 00:08:59,300 available to patreon members, we can take a look at what Dan Ives 181 00:08:59,300 --> 00:09:01,500 is talking about. With apple, we have all the 182 00:09:01,500 --> 00:09:05,000 metrics and valuation, and this is what most investors focus on. 183 00:09:05,200 --> 00:09:07,500 They look at the valuation and they say the apples trading at a 184 00:09:07,500 --> 00:09:10,500 25 PE. So it's expensive or cheap based 185 00:09:10,500 --> 00:09:12,200 on that. They look at the free cash flow. 186 00:09:12,200 --> 00:09:15,500 Yield three percent yield. It's expensive or cheap based on 187 00:09:15,500 --> 00:09:19,500 that but we know that companies are much more complex than just 188 00:09:19,500 --> 00:09:23,700 a yield or P/E ratio, determining the future cash flow 189 00:09:23,800 --> 00:09:27,500 of the company is incredibly important in forming a full 190 00:09:27,500 --> 00:09:30,500 valuation and when we look at what Dan Ives is, Talking about 191 00:09:30,500 --> 00:09:33,400 this sum of the parts, we can bring that up on the revenue 192 00:09:33,400 --> 00:09:35,700 chart. We have the revenue right hair 193 00:09:35,700 --> 00:09:37,700 from Apple. This is quarter by quarter. 194 00:09:38,000 --> 00:09:41,600 We see it all the way going back from 1985 when it was just a 195 00:09:42,100 --> 00:09:45,700 device maker making iPods. I remember buying one of the 196 00:09:45,700 --> 00:09:48,200 first iPods and then the iPod Shuffle. 197 00:09:48,600 --> 00:09:51,300 I got one of the beefy iPods that had the spinner wheel and 198 00:09:51,300 --> 00:09:55,000 had like 40 gigs of memory. I thought it was amazing. 199 00:09:55,300 --> 00:09:58,500 Then of course they came out with the phone, a game-changer, 200 00:09:58,500 --> 00:10:02,500 the stock price dropped The revenue continued to grow over 201 00:10:02,500 --> 00:10:04,600 the past. Couple of decades, apples 202 00:10:04,600 --> 00:10:07,800 Revenue has been explosive, has continued to grow and this is 203 00:10:07,800 --> 00:10:10,200 again what most investors are focused on. 204 00:10:10,400 --> 00:10:14,100 They look at overall Revenue, growth rates apples, Revenue has 205 00:10:14,100 --> 00:10:17,100 grown at 10 percent over the past 10 years. 206 00:10:17,800 --> 00:10:19,000 Why? I know a lot of companies 207 00:10:19,000 --> 00:10:22,400 growing their revenue faster than 10%, that doesn't sound 208 00:10:22,400 --> 00:10:25,500 that good but these numbers again, don't share the full 209 00:10:25,500 --> 00:10:27,200 story. There's a little bit deeper 210 00:10:27,200 --> 00:10:31,800 context, we can look at if we go to the The product segments are 211 00:10:31,900 --> 00:10:34,700 we get to the sum of the parts? Let's cross out some of the 212 00:10:34,700 --> 00:10:37,200 older product divisions and make this a little bit cleaner. 213 00:10:37,600 --> 00:10:41,500 Here we have the sum of the parts of apples Revenue so these 214 00:10:41,500 --> 00:10:44,900 are all the exact same total revenue but now we see them 215 00:10:44,900 --> 00:10:47,100 broken up by different categories. 216 00:10:47,500 --> 00:10:50,700 In this we can take a look at what Dan Ives is talking about. 217 00:10:50,900 --> 00:10:54,000 You says that investors are missing the services. 218 00:10:54,200 --> 00:10:57,300 Apple is not a hardware company anymore. 219 00:10:57,700 --> 00:11:01,500 They are a device install. So they do have a large part of 220 00:11:01,500 --> 00:11:05,200 their revenue, that's hardware. But the services is by far the 221 00:11:05,200 --> 00:11:08,100 most important part of their story and has been the most 222 00:11:08,100 --> 00:11:10,600 important part of their story for a long period of time. 223 00:11:10,900 --> 00:11:14,700 If we cross out the services, we see the growth over all of the 224 00:11:14,700 --> 00:11:17,600 revenue. This is the slower growing part 225 00:11:17,600 --> 00:11:20,300 of the revenue. They just need to maintain their 226 00:11:20,300 --> 00:11:22,300 install base. They don't really need to grow 227 00:11:22,300 --> 00:11:25,800 this all that much, so it's growing with inflation and small 228 00:11:25,800 --> 00:11:29,000 price increases, but this isn't a booming part of apples 229 00:11:29,000 --> 00:11:31,700 business. When we look at the services and 230 00:11:31,700 --> 00:11:35,600 we cross out everything else, we see the explosive growth of 231 00:11:35,600 --> 00:11:40,100 services doubling since 2018. And while this part of the 232 00:11:40,100 --> 00:11:43,500 business is growing. The margins are much higher 233 00:11:43,800 --> 00:11:48,000 while Apple's total margins around 40%, the services are 234 00:11:48,000 --> 00:11:52,100 easily 60% plus so much higher margin. 235 00:11:52,100 --> 00:11:54,600 Portion of the business is growing at a faster rate. 236 00:11:54,900 --> 00:11:59,800 This is also lifting the entire company and this is no small. 237 00:11:59,900 --> 00:12:03,700 Has Apple Services did 21 billion dollars last quarter 238 00:12:03,900 --> 00:12:06,900 that is astronomical. So right off the bat, just the 239 00:12:06,900 --> 00:12:09,700 first 10 seconds of what Dan Ives has to say. 240 00:12:10,200 --> 00:12:11,800 I think he nailed it. I think so far. 241 00:12:11,800 --> 00:12:14,700 His analysis of Apple is spot-on, but he has more to say 242 00:12:14,700 --> 00:12:18,500 about the company. They what do you call it? 243 00:12:18,500 --> 00:12:23,200 Something there that the Bears have complained that there's I 244 00:12:23,200 --> 00:12:26,400 guess there's not something that it's all been incremental. 245 00:12:26,600 --> 00:12:31,800 There hasn't been any Quantum Leap in in Apple's product mix 246 00:12:31,800 --> 00:12:34,500 and that and but that hasn't stopped that you can see it 247 00:12:34,500 --> 00:12:36,800 right there. I mean that obviously has a lot 248 00:12:36,800 --> 00:12:40,900 to do with momentum and the narrow advance that we've seen 249 00:12:40,900 --> 00:12:44,900 in the NASDAQ, obviously, but Apple has hit on a lot of 250 00:12:44,900 --> 00:12:47,500 cylinders just You know, it didn't go from an eight cylinder 251 00:12:47,500 --> 00:12:49,700 to a 12 cylinder. It's just got a really good 252 00:12:49,700 --> 00:12:51,800 eight. Cylinders sure. 253 00:12:51,800 --> 00:12:54,300 I think, when investors are missing in my opinion, the ones 254 00:12:54,300 --> 00:12:58,100 that have bet against apple is it's a golden install base. 255 00:12:58,100 --> 00:13:02,200 We're done by 1.2 billion, iPhones, 2 billion iOS devices. 256 00:13:02,500 --> 00:13:05,300 And the hall theme. Tactician cook has Led Apple 257 00:13:05,300 --> 00:13:08,800 through all the challenges from a supply chain to other issues. 258 00:13:08,800 --> 00:13:12,600 And you have 25% of the install base is not upgrade their iPhone 259 00:13:12,600 --> 00:13:16,600 4 plus years and that's why this is just starting on Some of the 260 00:13:16,600 --> 00:13:20,200 parts into what I believe is really just almost a middle 261 00:13:20,200 --> 00:13:22,800 Innings. He goes on saying, that another 262 00:13:22,800 --> 00:13:26,400 thing that investors are missing is the golden install base. 263 00:13:26,400 --> 00:13:29,500 I believe this is another correct take from Dan eyes. 264 00:13:29,500 --> 00:13:33,100 I think he has this spot on. Apple has the golden install 265 00:13:33,100 --> 00:13:35,500 base. The install base is the number 266 00:13:35,500 --> 00:13:39,500 of devices that consumers have they have over a billion devices 267 00:13:39,500 --> 00:13:42,200 out there actively being used by consumers. 268 00:13:42,600 --> 00:13:45,300 So we have a ton of people. Let's say 1 billion. 269 00:13:45,900 --> 00:13:47,900 Devices. It might not be that much. 270 00:13:47,900 --> 00:13:50,200 It might be a little bit more. It's, it's a little bit 271 00:13:50,200 --> 00:13:53,200 difficult because a lot of Apple users have more than one device. 272 00:13:53,500 --> 00:13:57,400 But either way, we have this massive current install base. 273 00:13:57,700 --> 00:14:01,300 All the people that use Apple devices all the install base 274 00:14:01,700 --> 00:14:03,800 there, in part of this ecosystem. 275 00:14:04,000 --> 00:14:06,400 There's a lot of coverage about the ecosystem. 276 00:14:06,700 --> 00:14:09,600 There's tech review channels that go into how Apple makes it 277 00:14:09,600 --> 00:14:12,500 very difficult to leave their install base to leave their 278 00:14:12,500 --> 00:14:15,400 ecosystem. Once you've become part of it, 279 00:14:15,900 --> 00:14:17,700 In it. You've used iMessage, you've 280 00:14:17,700 --> 00:14:20,000 signed up for the Apple card. You have the Apple savings 281 00:14:20,000 --> 00:14:22,300 account. You have the Apple notes app. 282 00:14:22,300 --> 00:14:25,000 You have all your photos uploaded to Apple photos. 283 00:14:25,200 --> 00:14:28,200 You have so many different things that Apple has done to 284 00:14:28,200 --> 00:14:30,900 keep you in part of their ecosystem, that it's nearly 285 00:14:30,900 --> 00:14:34,400 impossible to leave this install base and go to a competitor like 286 00:14:34,400 --> 00:14:37,000 Android. It becomes burdensome ownerís, 287 00:14:37,000 --> 00:14:38,700 something that you don't want to do. 288 00:14:39,100 --> 00:14:43,300 So, the install base is a golden install base of high income 289 00:14:43,300 --> 00:14:47,400 consumers, a lot of discretionary Money to spend on 290 00:14:47,400 --> 00:14:51,500 services and that's what apple is a master at taking this 291 00:14:51,500 --> 00:14:54,900 golden install base and monetizing them through the 292 00:14:54,900 --> 00:14:57,900 sales of all of these services with apple. 293 00:14:58,100 --> 00:15:00,900 Everything is the ecosystem. That's the moat. 294 00:15:00,900 --> 00:15:03,500 That's the value proposition. That's the intrinsic value 295 00:15:03,500 --> 00:15:05,300 driver. That's the story of Apple. 296 00:15:05,400 --> 00:15:09,500 That is the investment thesis, wrapped up in one word, its 297 00:15:09,500 --> 00:15:13,400 ecosystem, if the ecosystem is not existent for Apple, if it 298 00:15:13,400 --> 00:15:16,800 gets torn apart or destroyed, I would say My full position and 299 00:15:16,800 --> 00:15:19,100 apple. If the ecosystem remains intact, 300 00:15:19,100 --> 00:15:22,300 if it grows stronger, I maintain my position and apple. 301 00:15:22,500 --> 00:15:25,200 It's all reliant on the ecosystem. 302 00:15:25,300 --> 00:15:27,700 So, I think this is another correct take from Dan eyes. 303 00:15:27,700 --> 00:15:30,600 I think he's spot on here. As long as Apple can maintain 304 00:15:30,600 --> 00:15:32,700 their masterfully designed ecosystem. 305 00:15:32,700 --> 00:15:34,600 They'll find ways to monetize it. 306 00:15:34,600 --> 00:15:37,500 They'll find ways to grow their free cash flow. 307 00:15:37,500 --> 00:15:40,700 So overall I agree with Dan Ives on as analysis here. 308 00:15:40,700 --> 00:15:43,600 I think that this has been an amazing Buy in. 309 00:15:43,600 --> 00:15:47,700 Plain sight, the ecosystem has Has been underrated by investors 310 00:15:47,700 --> 00:15:50,400 contain Lee discounted the strength of it over the past 311 00:15:50,400 --> 00:15:52,900 five years. Investors that recognized the 312 00:15:52,900 --> 00:15:57,200 power of the ecosystem early on reaped the rewards and one of 313 00:15:57,208 --> 00:15:59,000 those investors a pretty good one. 314 00:15:59,000 --> 00:16:01,600 I think his name was Warren. Buffett you recognize that 315 00:16:01,600 --> 00:16:05,400 ecosystem a long time period ago, he bought 30 billion 316 00:16:05,400 --> 00:16:09,000 dollars of the company and I think his Equity stake now is 317 00:16:09,000 --> 00:16:13,700 somewhere around 170 billion dollars he's beat out. 318 00:16:13,800 --> 00:16:16,300 Everyone else. Buffett Remains the Out. 319 00:16:16,400 --> 00:16:18,600 Now, of course, we can't forget about Microsoft. 320 00:16:18,600 --> 00:16:20,300 This is another pretty good company. 321 00:16:20,300 --> 00:16:22,800 That's on a good streak. This year, I have a holding in 322 00:16:22,800 --> 00:16:26,700 this company 55,000 dollars, similar to Apple but not quite 323 00:16:26,700 --> 00:16:28,000 as much gains. This one's up. 324 00:16:28,000 --> 00:16:30,900 Twelve thousand dollars. Microsoft has a couple bad 325 00:16:30,900 --> 00:16:33,900 pieces of news coming out. Just in the past day or two. 326 00:16:34,000 --> 00:16:37,800 The news is that Microsoft says it could abandon the Activision, 327 00:16:37,800 --> 00:16:40,700 Blizzard deal. If the judge delays, it they say 328 00:16:40,700 --> 00:16:43,200 the first day of the week long hearing that could determine the 329 00:16:43,200 --> 00:16:45,700 outcome of Microsoft 70 billion dollar acquisition. 330 00:16:45,800 --> 00:16:49,400 Addition of the video game, giant Activision Blizzard opened 331 00:16:49,400 --> 00:16:52,900 Thursday with a promise from Microsoft, if a federal judge 332 00:16:52,900 --> 00:16:56,600 grants an injunction that would delay, the deals closing, 333 00:16:56,800 --> 00:16:59,700 Microsoft could abandon the deal altogether. 334 00:17:00,300 --> 00:17:03,200 So they wanted to let the judge know that the if you even delay 335 00:17:03,200 --> 00:17:05,800 this deal then we're probably going to we're probably gonna 336 00:17:05,800 --> 00:17:09,200 scrap it at that point. Microsoft's lawyer said quote, 337 00:17:09,200 --> 00:17:11,900 this is going to decide whether or not the deal goes forward. 338 00:17:12,000 --> 00:17:15,300 She said that if this case were to be delayed or lost here, 339 00:17:15,900 --> 00:17:19,300 Would be quote, a three-year administrative nightmare. 340 00:17:19,800 --> 00:17:23,599 So even though Microsoft could perpetually fund, a lawsuit 341 00:17:23,700 --> 00:17:26,500 forever, they really could afford to hire the best lawyers 342 00:17:26,500 --> 00:17:29,300 forever, that wouldn't be the best thing for the shareholders. 343 00:17:29,300 --> 00:17:31,600 This company wants the cash to go to shareholders. 344 00:17:31,600 --> 00:17:35,500 So they don't want to have an ongoing years long nightmare of 345 00:17:35,500 --> 00:17:38,200 a court case here. Microsoft is always having to 346 00:17:38,200 --> 00:17:40,900 weigh what is best for shareholders to continue 347 00:17:40,900 --> 00:17:43,900 fighting this or to let it go. Now, I personally think this is 348 00:17:43,900 --> 00:17:46,700 a bit of a shame. I realize that Microsoft is a 349 00:17:46,700 --> 00:17:50,800 very large corporation so people naturally have a bias against 350 00:17:50,800 --> 00:17:53,100 the company. They see, big bad Microsoft, 351 00:17:53,100 --> 00:17:55,800 they see that they want to buy another big company and they 352 00:17:55,800 --> 00:17:57,100 think that that should be blocked. 353 00:17:57,100 --> 00:18:00,300 A big company, shouldn't buy another big company but 354 00:18:00,300 --> 00:18:03,800 Microsoft is not the biggest player in gaming. 355 00:18:03,800 --> 00:18:07,400 And in console gaming, in fact, Sony is much bigger than 356 00:18:07,400 --> 00:18:10,600 Microsoft. In terms of consoles, Sony has 357 00:18:10,600 --> 00:18:12,900 around double the market. Share of Microsoft. 358 00:18:12,900 --> 00:18:16,700 Sony is the Monopoly when it comes to Console gaming. 359 00:18:17,100 --> 00:18:21,100 So Sony's arguing, that Microsoft is the Monopoly while. 360 00:18:21,300 --> 00:18:25,000 Ironically Sony's the Monopoly Sony's arguing, that Microsoft 361 00:18:25,000 --> 00:18:28,300 will be exclusive, while ironically, Sony has more 362 00:18:28,300 --> 00:18:32,300 exclusive titles in Microsoft, Sony's arguing, that Microsoft 363 00:18:32,300 --> 00:18:36,600 will be anti-competitive, while ironically Sony has far more 364 00:18:36,600 --> 00:18:38,600 anti competitive when it comes to gaming. 365 00:18:38,800 --> 00:18:42,000 One example of that is Microsoft wants to put the Activision 366 00:18:42,000 --> 00:18:44,600 Blizzard games on the Nintendo switch. 367 00:18:44,700 --> 00:18:47,000 Sony does not. Want that because it would cause 368 00:18:47,000 --> 00:18:51,200 greater competition. So in this case, every bit of 369 00:18:51,200 --> 00:18:55,600 data points to Microsoft being L2 by Activision Blizzard, it 370 00:18:55,600 --> 00:18:58,300 doesn't restrict competition. It increases competition, 371 00:18:58,800 --> 00:19:03,800 Microsoft has gone so far to even guarantee ten years of not 372 00:19:03,800 --> 00:19:07,100 making any of their titles exclusive and that still has not 373 00:19:07,100 --> 00:19:08,400 been enough to push this through. 374 00:19:08,700 --> 00:19:10,700 So I think it will be a shame if this deal doesn't go through. 375 00:19:11,100 --> 00:19:14,500 Now, there is an outcome, that's also not good. 376 00:19:14,500 --> 00:19:17,800 If the deal doesn't go through Through with Microsoft, not only 377 00:19:17,800 --> 00:19:20,500 did they have to pay all these lawyer fees and they have to pay 378 00:19:20,500 --> 00:19:22,600 for all the expense of trying to do this deal. 379 00:19:22,900 --> 00:19:25,900 But there is a breakup fee, Microsoft agreed to pay 380 00:19:25,900 --> 00:19:28,200 Activision Blizzard three billion dollars. 381 00:19:28,200 --> 00:19:31,600 If the deal doesn't go through, if we look at how this impacts 382 00:19:31,600 --> 00:19:33,700 their free, cash flows, we can take a look here. 383 00:19:34,200 --> 00:19:36,400 This was the free cash flow and 2022. 384 00:19:36,600 --> 00:19:38,500 It was sixty five billion dollars. 385 00:19:38,800 --> 00:19:42,300 So paying Activision. Blizzard three billion dollars 386 00:19:42,700 --> 00:19:45,600 would bring Microsoft's Revenue. Would bring Mike. 387 00:19:45,700 --> 00:19:48,200 Our sauce free cash flow down to this red line. 388 00:19:48,400 --> 00:19:52,400 It be right around there. That is a decent chunk of cash. 389 00:19:52,500 --> 00:19:56,400 Even for a company, as big as Microsoft so they have a pretty 390 00:19:56,400 --> 00:20:00,100 hefty fee to pay hair. Will this overall impact the 391 00:20:00,100 --> 00:20:02,900 long-term story of Microsoft, does it turn the company from a 392 00:20:02,900 --> 00:20:04,700 by to a cell? Not at all? 393 00:20:04,700 --> 00:20:06,500 It's not going to affect the long-term. 394 00:20:06,700 --> 00:20:09,100 I think over the long term story, this is like a speeding 395 00:20:09,100 --> 00:20:12,300 ticket, but three billion dollars is a pretty pricey 396 00:20:12,300 --> 00:20:15,700 speeding ticket even for a company like Microsoft for those 397 00:20:15,800 --> 00:20:18,900 You who are in the Arbitrage play and currently own 398 00:20:18,900 --> 00:20:21,700 Activision Blizzard. That's like a consolation prize. 399 00:20:21,700 --> 00:20:24,900 If you don't get Microsoft buying the company here, at 400 00:20:24,900 --> 00:20:27,100 least you get infused with a lot of cash. 401 00:20:27,100 --> 00:20:30,200 So they'll have a big boost to their balance sheet, which will 402 00:20:30,200 --> 00:20:31,900 make the company worth a little bit more. 403 00:20:31,900 --> 00:20:34,900 So you have currently around a sixty five billion dollar market 404 00:20:34,900 --> 00:20:38,400 cap tack on another three billion to that that will help 405 00:20:38,400 --> 00:20:40,100 out if this merger doesn't happen. 406 00:20:40,200 --> 00:20:42,800 But when it comes right down to it, this is the reason that I 407 00:20:42,808 --> 00:20:45,600 didn't end up doing that merger Arbitrage. 408 00:20:45,700 --> 00:20:49,100 Play, I heavily considered it. I thought that Microsoft has the 409 00:20:49,100 --> 00:20:51,700 better Case by far. I think they had the better 410 00:20:51,700 --> 00:20:54,400 Court arguments, I think the data is on their side. 411 00:20:54,700 --> 00:20:58,800 But when it comes down to it, a judge is one person making a 412 00:20:58,800 --> 00:21:02,500 judgment call and they can decide whatever they want and 413 00:21:02,500 --> 00:21:05,600 they can rationalize and justify it based on any various data, 414 00:21:05,600 --> 00:21:09,000 they want to nitpick. So a judge really is hard to 415 00:21:09,000 --> 00:21:12,700 determine and because of the unpredictability of an Arbitrage 416 00:21:12,700 --> 00:21:15,600 play, like this, I decided to pass it this time. 417 00:21:15,800 --> 00:21:18,300 The other piece of news that I do think is noteworthy and 418 00:21:18,300 --> 00:21:22,300 something that should be taken into account for investors is 419 00:21:22,300 --> 00:21:25,700 the market rally this year. It has been exceptional across 420 00:21:25,700 --> 00:21:27,800 the board. The indices have gone higher The 421 00:21:27,800 --> 00:21:31,700 Wall Street Journal says that the 2023 rally has defied all 422 00:21:31,700 --> 00:21:34,100 expectations. If we look at the actual 423 00:21:34,100 --> 00:21:37,500 performance here, the S&P 500 is up around 15 percent. 424 00:21:37,700 --> 00:21:39,600 The Dow Jones is up around 4 percent. 425 00:21:39,600 --> 00:21:43,800 So across the board of very good rally and this is especially 426 00:21:43,800 --> 00:21:47,700 incredible because there's a lot of people that were sewing. 427 00:21:47,700 --> 00:21:50,700 Fair that were spreading spreading concern about 428 00:21:50,700 --> 00:21:53,800 different issues left and right. It was almost difficult to find 429 00:21:53,800 --> 00:21:57,100 people that were level-headed. They had a steady tone and said 430 00:21:57,100 --> 00:22:00,000 to stay fully invested in the market, and not concern yourself 431 00:22:00,000 --> 00:22:02,000 with all these various things going on. 432 00:22:02,400 --> 00:22:05,000 For example, one of the big things that happened earlier 433 00:22:05,000 --> 00:22:08,200 this year, was the banking crisis, the regional Banks going 434 00:22:08,200 --> 00:22:10,000 bankrupt. Remember that? 435 00:22:10,100 --> 00:22:12,200 Remember how the market was supposed to crash? 436 00:22:12,200 --> 00:22:14,200 After that? What happened with the banking 437 00:22:14,200 --> 00:22:16,600 crisis is seems to have just Come and gone. 438 00:22:17,100 --> 00:22:21,000 We had the US, default, remember that, how the u.s. wasn't going 439 00:22:21,000 --> 00:22:23,400 to up the debt limit? How there is an argument in 440 00:22:23,400 --> 00:22:25,700 Congress? Do you know how many videos I 441 00:22:25,700 --> 00:22:31,200 made about the US, default? Exactly, zero that interested me 442 00:22:31,400 --> 00:22:33,300 to know amount. The reason why is because that 443 00:22:33,300 --> 00:22:36,700 always ends up the exact, same politicians, both argue to get 444 00:22:36,700 --> 00:22:40,100 stuff that they want packed into the bill and the US continues to 445 00:22:40,100 --> 00:22:42,800 go forward, and it doesn't affect the stock market. 446 00:22:43,000 --> 00:22:45,900 I've been around long enough to see that story play out over And 447 00:22:45,900 --> 00:22:47,800 over again. And the same thing with the 448 00:22:47,800 --> 00:22:50,400 banking crisis. This is something that I was not 449 00:22:50,400 --> 00:22:53,200 concerned about. I stayed fully invested during 450 00:22:53,200 --> 00:22:57,100 this time period, the u.s. moves on from crisis, is like this 451 00:22:57,100 --> 00:23:00,900 over and over again, even when they do have a material impact 452 00:23:00,900 --> 00:23:04,300 like covid, or even the Great Recession, eventually the market 453 00:23:04,300 --> 00:23:07,200 recovers that has been the story since the beginning. 454 00:23:07,500 --> 00:23:10,000 Now, there's a lot of people that unfortunately bought into 455 00:23:10,000 --> 00:23:13,000 all the fair and doom spread around all of these news 456 00:23:13,000 --> 00:23:14,900 stories. And there's a lot of people 457 00:23:14,900 --> 00:23:18,000 sitting on The sidelines right now, the Wall Street Journal 458 00:23:18,000 --> 00:23:21,200 notes, that ultimately, those who stayed out of the market 459 00:23:21,200 --> 00:23:23,500 this year. And fair of another sell-off, 460 00:23:23,500 --> 00:23:28,800 missed out on a robust gain, can you imagine missing out on this 461 00:23:28,800 --> 00:23:30,000 performance? This year? 462 00:23:30,400 --> 00:23:33,300 If I had missed out on this year, I would have missed out on 463 00:23:33,300 --> 00:23:37,000 sixty, eight thousand dollars in gained so far, 17 percent 464 00:23:37,000 --> 00:23:40,100 returns an enormous run for this portfolio. 465 00:23:40,200 --> 00:23:42,900 This is the reason it is critical to not try to time the 466 00:23:42,900 --> 00:23:45,500 market, the stay invested all the time. 467 00:23:45,700 --> 00:23:47,800 All of these people in the industry are always trying to. 468 00:23:47,800 --> 00:23:49,800 Guess what the next blow up is going to be. 469 00:23:50,100 --> 00:23:53,400 If this year has shown anything, it is that it's difficult to 470 00:23:53,400 --> 00:23:55,900 predict which headline-grabbing event will wind up. 471 00:23:55,900 --> 00:23:58,600 Having a lasting impact on the market returns. 472 00:23:58,900 --> 00:24:01,700 That is exactly correct. This has been said before, but 473 00:24:01,700 --> 00:24:04,700 I'll say it again. You could have the entire 474 00:24:04,700 --> 00:24:07,400 release of the Wall Street Journal headlines from here 475 00:24:07,400 --> 00:24:12,300 until the end of 2023, and even knowing exactly what headline 476 00:24:12,300 --> 00:24:15,300 news is going to happen for the next six months. 477 00:24:15,700 --> 00:24:18,300 Would not be able to guess where the markets going to end. 478 00:24:18,500 --> 00:24:20,600 They do not correlate with each other. 479 00:24:20,800 --> 00:24:23,300 Sometimes they end up being inversely correlated. 480 00:24:23,300 --> 00:24:26,300 So is this Market rally defying? All expectations. 481 00:24:26,500 --> 00:24:29,200 I think it's an incredible rally but it hasn't defied, all 482 00:24:29,200 --> 00:24:32,200 expectations and I do believe. There's reason to believe that 483 00:24:32,200 --> 00:24:35,900 the market rally will continue. We have news of the greatest 484 00:24:35,900 --> 00:24:39,100 wealth transfer in history. We have news that baby boomer 485 00:24:39,100 --> 00:24:42,900 generation has an enormous amount of stored wealth more 486 00:24:42,900 --> 00:24:45,400 than they're going to be able to use within their lifetime. 487 00:24:45,600 --> 00:24:48,400 There's going to be a large windfall of inheritance 488 00:24:48,700 --> 00:24:53,000 specifically with Millennials year after year, for the next 30 489 00:24:53,000 --> 00:24:55,700 Years, Millennials will inherit more and more money. 490 00:24:56,000 --> 00:24:59,100 This is going to be a massive windfall of spending and 491 00:24:59,100 --> 00:25:01,300 something that should continue to propel the markets. 492 00:25:01,400 --> 00:25:04,200 So in my opinion, I think investors would still be better 493 00:25:04,200 --> 00:25:06,400 served today. Focusing on high quality 494 00:25:06,400 --> 00:25:09,100 companies, that can persevere during different environments 495 00:25:09,100 --> 00:25:12,500 than trying to predict exactly when Doom and Gloom will strike 496 00:25:12,500 --> 00:25:15,100 and how bad it will be. Now, of course, it's Friday. 497 00:25:15,100 --> 00:25:17,600 So we looked Tick-Tock for our financial advice. 498 00:25:17,600 --> 00:25:21,100 Here is Two Guys. These are two young looking guys 499 00:25:21,100 --> 00:25:25,200 that are discussing when they'll finally make it with money and 500 00:25:25,200 --> 00:25:27,100 how much money you need to have to be happy. 501 00:25:27,400 --> 00:25:29,900 You said, once you have 20 million dollars, like you can 502 00:25:29,900 --> 00:25:32,300 have everything unless you want to buy a jet or a yacht like 503 00:25:32,300 --> 00:25:34,100 your set. But for me I'm like a burn 504 00:25:34,100 --> 00:25:37,200 through 20 million and like, dude, I could spend 20 million 505 00:25:37,200 --> 00:25:39,900 before you could say 20 million. Like and I even think like a 506 00:25:39,900 --> 00:25:43,000 hundred millions, not a lot. Let me just pause it right 507 00:25:43,000 --> 00:25:45,400 there. He just said that he could spend 508 00:25:45,400 --> 00:25:48,500 time. 20 million before you can even say 20 million. 509 00:25:49,300 --> 00:25:50,900 What are these guys talking about? 510 00:25:50,900 --> 00:25:54,000 What are they spending twenty million dollars on and he said 511 00:25:54,000 --> 00:25:56,900 that he could burn through a hundred million dollars. 512 00:25:57,700 --> 00:26:01,500 I think that they're I take it back, the market has gone to 513 00:26:01,500 --> 00:26:04,200 high there needs to be a bear Market. 514 00:26:04,200 --> 00:26:06,600 There needs to be some type of implosion everything. 515 00:26:06,600 --> 00:26:10,300 I just said, I take it all back. We still have this going on in 516 00:26:10,300 --> 00:26:13,100 the market today like I burn through 20 million and like, 517 00:26:13,300 --> 00:26:15,500 dude, I could spend 20 million before you could. 518 00:26:15,700 --> 00:26:18,300 A 20 million like and I even think like, a hundred millions 519 00:26:18,300 --> 00:26:22,000 not a lot. How was 100 million not a lot? 520 00:26:22,000 --> 00:26:25,300 What does that even mean? 100 million is what it's more 521 00:26:25,300 --> 00:26:28,500 than what the average American, which the average American is 522 00:26:28,500 --> 00:26:32,100 incredibly, Rich has tons of luxuries, it's more than what 523 00:26:32,100 --> 00:26:35,200 they earn in 50 average. Life times. 524 00:26:35,500 --> 00:26:38,600 A hundred million dollars is a ton of money. 525 00:26:38,600 --> 00:26:40,600 I know, like, would you buy an 80 million dollar debt? 526 00:26:40,600 --> 00:26:42,700 Let's say, you know, you get the point where, what are you manage 527 00:26:42,700 --> 00:26:44,300 it? Are you ever going to stop like 528 00:26:44,300 --> 00:26:47,700 at what amount of money are you? To be like okay I'm gonna chill 529 00:26:47,700 --> 00:26:49,000 out. I'm gonna be like retire, like 530 00:26:49,000 --> 00:26:52,000 chose my kids, never never never know. 531 00:26:52,300 --> 00:26:55,100 Alright they're ambitious I guess these kids look like 532 00:26:55,100 --> 00:26:58,400 they're like 17 years old and they're talking about growing up 533 00:26:58,400 --> 00:27:00,900 numbers and and talking about how they're never going to be 534 00:27:00,900 --> 00:27:04,200 satisfied when you get in the workforce and you actually earn 535 00:27:04,200 --> 00:27:06,600 a decent living, you save up money. 536 00:27:07,000 --> 00:27:09,400 There comes a time where you actually want to stop working 537 00:27:09,400 --> 00:27:12,000 especially if you're not enjoying your job more than you 538 00:27:12,000 --> 00:27:14,600 enjoy leisure time. I've actually had this 539 00:27:14,600 --> 00:27:18,700 discussion With a friend, a long time ago, we were discussing the 540 00:27:18,700 --> 00:27:22,700 amounts that we would fill pretty set in stone of filling, 541 00:27:22,700 --> 00:27:25,000 like we've made it feeling like we have enough money to retire 542 00:27:25,000 --> 00:27:27,400 and do what we want. And the number that we came 543 00:27:27,400 --> 00:27:30,900 around to as around four million dollars, that was it? 544 00:27:31,100 --> 00:27:34,700 Four million was what we consider to be a decent point to 545 00:27:34,708 --> 00:27:38,700 achieve as a lifetime goal of saving and investing anything 546 00:27:38,700 --> 00:27:41,100 beyond that. Would be incredibly good, but 547 00:27:41,100 --> 00:27:44,200 for Millions enough that you can just with dividends earn over a 548 00:27:44,200 --> 00:27:47,800 hundred thousand dollars per Per year, earning 100,000 dollars 549 00:27:47,800 --> 00:27:51,600 per year, passively is a very luxurious retirement, you can do 550 00:27:51,600 --> 00:27:53,800 a lot with that. You can travel, you can see the 551 00:27:53,800 --> 00:27:55,700 world. You don't need to buy a private 552 00:27:55,700 --> 00:27:58,700 jet, you can fly in a plane and where some are pods it's going 553 00:27:58,700 --> 00:28:00,200 to work out fine doing it that way. 554 00:28:00,300 --> 00:28:03,100 So, we have a bit of a disconnect here, my goal is more 555 00:28:03,100 --> 00:28:04,900 in the range of four million dollars. 556 00:28:04,900 --> 00:28:06,600 I think that's a pretty good amount of money. 557 00:28:06,800 --> 00:28:08,100 Hopefully, I'll get there someday. 558 00:28:08,100 --> 00:28:10,100 I'll share it with you along the way if I ever do. 559 00:28:10,300 --> 00:28:12,800 But saying that a hundred million dollars is not a lot of 560 00:28:12,800 --> 00:28:16,200 money is completely insane. Once again kicked Hawk has done 561 00:28:16,200 --> 00:28:19,700 it with the unexpected Financial advice, that's the episode for 562 00:28:19,700 --> 00:28:21,200 today. I hope you enjoyed and I'll see 563 00:28:21,200 --> 00:28:22,000 you in the next one.