1 00:00:00,040 --> 00:00:01,800 Welcome back everyone. Today on the Joseph Carlson 2 00:00:01,800 --> 00:00:05,560 Show, we start off 2026 by looking at 10 companies that I 3 00:00:05,560 --> 00:00:08,680 believe are ten of the most well positioned stocks in the market 4 00:00:08,680 --> 00:00:11,480 in 2026. These companies are not your 5 00:00:11,480 --> 00:00:13,280 average companies. These are what I believe are the 6 00:00:13,280 --> 00:00:17,160 strongest compound machines, the ones with the widest Moat in the 7 00:00:17,160 --> 00:00:19,720 entire world. These companies are virtually 8 00:00:19,720 --> 00:00:22,400 indestructible. They don't even in many cases 9 00:00:22,400 --> 00:00:26,120 have competition and they're available for you to invest in. 10 00:00:26,560 --> 00:00:28,440 And I believe that every investor should strongly 11 00:00:28,440 --> 00:00:30,720 consider having these companies in their portfolio. 12 00:00:31,120 --> 00:00:34,200 In many cases, they are the ones that drag the indices higher, 13 00:00:34,440 --> 00:00:36,200 that really push the markets forward. 14 00:00:36,640 --> 00:00:38,360 So we're really looking at these 10 companies. 15 00:00:38,880 --> 00:00:41,200 Many of them are not the Mac 7, by the way. 16 00:00:41,320 --> 00:00:44,200 They're different companies outside of the Mac 7, but 17 00:00:44,200 --> 00:00:46,800 they're powerful nonetheless. And we'll be looking at all ten 18 00:00:46,800 --> 00:00:50,280 of them, going over the thesis, giving updates on them and why I 19 00:00:50,280 --> 00:00:52,760 own many of these companies in My Portfolio today. 20 00:00:52,880 --> 00:00:55,880 And before we jump into the 10 stocks, I first want to just 21 00:00:55,880 --> 00:00:58,680 take a look at the portfolio. As you know, many of the 22 00:00:58,680 --> 00:01:01,520 companies that I talk about, I'm not just talking. 23 00:01:01,520 --> 00:01:03,960 These aren't just words. I'm actually backing them by my 24 00:01:03,960 --> 00:01:06,400 actions. Many of them I invest into. 25 00:01:06,680 --> 00:01:09,520 A lot of the thesis is that I share are ones that I hold for 26 00:01:09,520 --> 00:01:12,840 my own companies, and what we have here is just a massive day 27 00:01:12,840 --> 00:01:14,960 in the portfolio. If we look at what's happened 28 00:01:14,960 --> 00:01:18,160 just today, we can filter it by the one day, and this one's up 29 00:01:18,160 --> 00:01:25,600 2.7% on the day. Massive return, $25,600 today. 30 00:01:25,960 --> 00:01:28,880 That's just in a single day. Now, why are these stocks up 31 00:01:28,880 --> 00:01:30,680 today? Well, there's a lot of various 32 00:01:30,680 --> 00:01:32,240 reasons. We'll be going over many of them 33 00:01:32,280 --> 00:01:34,920 throughout the episode. But now we've reached an all 34 00:01:34,920 --> 00:01:39,720 time high with the passive income portfolio, $975,000 in 35 00:01:39,720 --> 00:01:42,600 total, 401,000 of that being gains. 36 00:01:42,800 --> 00:01:45,920 That's an all time high in the total portfolio value and an all 37 00:01:45,920 --> 00:01:48,960 time high in the gains. So massive start to the year. 38 00:01:48,960 --> 00:01:50,800 This is also a big day for the story fund. 39 00:01:50,800 --> 00:01:55,920 We're up to around $406,000 in total value, $149,000 in gains. 40 00:01:56,280 --> 00:02:00,000 If I look at the one day on this, this is up another 2% on 41 00:02:00,000 --> 00:02:04,800 the day, $7800. So massive day in both 42 00:02:04,800 --> 00:02:06,800 portfolios. Now you may be wondering why are 43 00:02:06,800 --> 00:02:08,919 these stocks going up today, especially the ones in My 44 00:02:08,919 --> 00:02:11,280 Portfolio. And this is really how investing 45 00:02:11,280 --> 00:02:13,240 works. You get to decide which stocks 46 00:02:13,240 --> 00:02:15,160 to buy. You get to decide to hold them. 47 00:02:15,400 --> 00:02:17,280 You don't get to decide when they go up. 48 00:02:17,480 --> 00:02:20,480 But if you buy high quality compounding machines, they will 49 00:02:20,480 --> 00:02:22,320 eventually go up. That's what earnings growth 50 00:02:22,320 --> 00:02:23,680 does. That's what free cash flow per 51 00:02:23,680 --> 00:02:26,720 share growth does. So what I see in My Portfolio is 52 00:02:26,720 --> 00:02:29,400 holding on to compounding machines and then certain 53 00:02:29,400 --> 00:02:32,520 catalysts come along that push these companies higher. 54 00:02:32,600 --> 00:02:35,160 Now as we jump into this, I want to highlight ten companies that 55 00:02:35,160 --> 00:02:37,560 I really believe everybody should consider having these in 56 00:02:37,560 --> 00:02:40,280 their portfolio. And I'll start off today with 57 00:02:40,280 --> 00:02:43,680 one of them, which is ASML. We're looking at ASML and it's 58 00:02:43,680 --> 00:02:49,440 up 5.66% today. It's up to 1229 dollars. 59 00:02:50,040 --> 00:02:53,160 Now, ASML is a company that I've covered for over a year. 60 00:02:53,280 --> 00:02:57,040 In fact, I covered it right at the beginning of 2025 S just 61 00:02:57,040 --> 00:02:59,920 over a year and it's a company that's done incredibly well. 62 00:03:00,240 --> 00:03:03,240 When I look at this stock performance, we're up already 63 00:03:03,400 --> 00:03:07,240 this year like 6 to 10%. When we go back one year, we're 64 00:03:07,240 --> 00:03:11,520 up 60.5%. An incredible year by this 65 00:03:11,520 --> 00:03:13,320 company. This is one that I was pounding 66 00:03:13,320 --> 00:03:15,840 the table on below $700.00 per share. 67 00:03:16,120 --> 00:03:18,000 So if you're a follower of the channel, you'll know that. 68 00:03:18,360 --> 00:03:20,840 But I still believe that ASML has upside. 69 00:03:21,080 --> 00:03:24,320 And the reason why is because this company is an undisputed 70 00:03:24,320 --> 00:03:27,480 monopoly. There is no second place when 71 00:03:27,480 --> 00:03:29,640 they're on the podium. There's no second and third, 72 00:03:29,640 --> 00:03:33,560 there's no silver and bronze. There's just ASML on that podium 73 00:03:33,920 --> 00:03:36,920 that is unique in the world of business with different 74 00:03:37,160 --> 00:03:39,160 companies. There's usually a duopoly or 75 00:03:39,160 --> 00:03:42,400 oligopoly, meaning that there's two companies or three sharing a 76 00:03:42,400 --> 00:03:46,240 monopoly with ASML, They're the only ones sharing this monopoly. 77 00:03:46,280 --> 00:03:49,320 There's literally no one else. Now, ASML is up so much today 78 00:03:49,320 --> 00:03:51,680 for a couple different reasons and none of these reasons will 79 00:03:51,680 --> 00:03:53,520 be new to followers of this channel. 80 00:03:54,080 --> 00:03:55,680 One of them is that there is news here. 81 00:03:55,680 --> 00:03:59,080 We have Qualtrum brief which shows us recent events happening 82 00:03:59,080 --> 00:04:01,480 with each company. So that you're informed, Alethia 83 00:04:01,480 --> 00:04:04,040 Capital upgraded ASML from a cell. 84 00:04:04,040 --> 00:04:07,240 So they had this company at a cell, which was for sure an 85 00:04:07,280 --> 00:04:10,280 incorrect rating on the stock. So they got that wrong, but 86 00:04:10,280 --> 00:04:12,640 they're changing their opinion and sentiment on it, which many 87 00:04:12,640 --> 00:04:15,480 analysts do. And they they upgraded from a 88 00:04:15,480 --> 00:04:18,399 cell to a buy and lifted its price target to a Street high 89 00:04:18,720 --> 00:04:23,520 $1500 per share from 7:50. So their price target on the 90 00:04:23,520 --> 00:04:27,440 stock went from 7:50 to 1500. They cited sharply higher 91 00:04:27,440 --> 00:04:32,080 earnings estimates for 2026 and 2027 or expanded capacity and 92 00:04:32,080 --> 00:04:36,600 strong EUV and DUV demand, especially from DRAM makers and 93 00:04:36,600 --> 00:04:39,680 Chinese customers. The call highlights exceptions 94 00:04:39,840 --> 00:04:42,320 for continued tightness and pricing power in ASM. 95 00:04:42,320 --> 00:04:46,320 LS EUV franchise positions the stock as a top semiconductor 96 00:04:46,320 --> 00:04:50,440 equipment pick into 2026. That looks very good. 97 00:04:50,800 --> 00:04:53,680 So right there we have this analyst upgrade doubling their 98 00:04:53,680 --> 00:04:56,520 price target. Now the stock is up five, five 99 00:04:56,520 --> 00:05:02,320 percent, 6% today, another $65 and we're already about up 6 to 100 00:05:02,320 --> 00:05:04,560 10% this year. And I believe that this bullish 101 00:05:04,600 --> 00:05:07,200 analyst rating was only part of the reason that the stock is up 102 00:05:07,200 --> 00:05:09,840 6% today. Another big aspect of it is a 103 00:05:09,840 --> 00:05:13,640 video that was made this is by a YouTube called Veritasium. 104 00:05:13,640 --> 00:05:15,680 It's a great channel, highly recommend it. 105 00:05:16,240 --> 00:05:20,200 And Veritasium here has a video that's called The Ridiculous 106 00:05:20,200 --> 00:05:22,680 Engineering of the World's Most Important Machine. 107 00:05:23,080 --> 00:05:26,160 This entire video, the whole thing goes over it. 108 00:05:26,160 --> 00:05:29,720 It goes over ASML and basically just ASML. 109 00:05:29,880 --> 00:05:32,520 It has a bit of history that's not directly related to the 110 00:05:32,520 --> 00:05:35,880 modern ASML, but what it really shows is the whole timeline of 111 00:05:35,880 --> 00:05:39,640 events to create this company, everything that needed to happen 112 00:05:40,080 --> 00:05:44,040 now. This video has 10,800,000 views, 113 00:05:44,720 --> 00:05:50,480 10 million views, and it's a 54 minute video on ASML and the 114 00:05:50,480 --> 00:05:53,520 brilliant engineering behind it. And again, if you haven't seen 115 00:05:53,520 --> 00:05:55,320 this video, I highly recommend it. 116 00:05:55,560 --> 00:05:58,320 I think it's a great video that really illustrates how 117 00:05:58,320 --> 00:06:01,760 incredible ASM LS technology is. Some of the comments on this 118 00:06:01,760 --> 00:06:04,680 video even highlight that after seeing what they've created, 119 00:06:04,880 --> 00:06:07,320 $400 million sounds cheap for it. 120 00:06:07,640 --> 00:06:10,320 It sounds inexpensive, like once you actually realize what they 121 00:06:10,320 --> 00:06:13,080 went through to make this technology, how nobody else can 122 00:06:13,080 --> 00:06:16,000 really replicate it, how even state funded governments with 123 00:06:16,000 --> 00:06:19,120 billions of dollars like China can't replicate what they've 124 00:06:19,120 --> 00:06:21,440 created, $400 million sounds cheap. 125 00:06:21,960 --> 00:06:24,960 That's what this does is it explains it in a more full way 126 00:06:24,960 --> 00:06:27,720 than we've seen before. And once it gets 10 million 127 00:06:27,720 --> 00:06:31,040 views, some of these people are investors viewing this video. 128 00:06:31,240 --> 00:06:34,040 A portion of them are a portion of them are hedge funds and Wall 129 00:06:34,040 --> 00:06:37,400 Street that have never seen the technology and how incredible it 130 00:06:37,400 --> 00:06:40,840 is, how how wide mode it is. And so this is real due 131 00:06:40,840 --> 00:06:43,680 diligence on the company. It's real qualitative research 132 00:06:43,680 --> 00:06:45,720 on what you're buying. So a big part of the reason that 133 00:06:45,720 --> 00:06:49,080 this stock is up so much today is not only this bullish analyst 134 00:06:49,080 --> 00:06:52,040 target, but also that video being released and going viral 135 00:06:52,240 --> 00:06:55,920 illustrating the incredible technology behind ASMLASML is 136 00:06:55,920 --> 00:06:58,200 still an incredible company. And although you can haggle 137 00:06:58,200 --> 00:07:00,320 behind the valuation and say that it's getting a little bit 138 00:07:00,320 --> 00:07:03,240 more expensive, I think that misses the force from the trees 139 00:07:03,520 --> 00:07:05,960 with these type of companies that have no second place. 140 00:07:05,960 --> 00:07:08,960 They have no third place. There is no silver and bronze 141 00:07:08,960 --> 00:07:11,600 player in this category. I think this is a type of 142 00:07:11,600 --> 00:07:13,280 company that you want to own a piece of. 143 00:07:13,520 --> 00:07:16,080 You want to own some of it. Going into the next 10 years, 144 00:07:16,360 --> 00:07:18,720 we're going into a phase where there's going to be a lot of fab 145 00:07:18,720 --> 00:07:22,640 creation, lot of semiconductor activity, a lot of specialized 146 00:07:22,640 --> 00:07:25,240 chips being made. And I believe that ASML remains 147 00:07:25,240 --> 00:07:27,480 one of the top picks in this category. 148 00:07:27,480 --> 00:07:30,080 It's such a good pick to get exposure to this with no 149 00:07:30,080 --> 00:07:32,680 competition. Now #2 We have another company 150 00:07:32,680 --> 00:07:34,520 that I've held in My Portfolio for some time. 151 00:07:34,920 --> 00:07:37,160 It's Amazon. And this is one that has been 152 00:07:37,160 --> 00:07:40,240 the laggard of the Mac 7. Amazon has hasn't kept up with 153 00:07:40,240 --> 00:07:42,920 the likes of Google. Google is a huge winner in My 154 00:07:42,920 --> 00:07:45,640 Portfolio. In 2025, it was the company that 155 00:07:45,640 --> 00:07:48,760 I primarily focused on. I made so much content about. 156 00:07:48,960 --> 00:07:51,840 I talked about chat, BT and Google and the dynamics of that 157 00:07:51,840 --> 00:07:54,560 race. And I'm shifting over from 158 00:07:54,560 --> 00:07:58,240 Google Now to Amazon because I believe that there's a lot of 159 00:07:58,240 --> 00:08:02,040 upside in this stock. Amazon's a company that has just 160 00:08:02,040 --> 00:08:04,640 not gotten the bid that I believe it deserves. 161 00:08:05,000 --> 00:08:08,600 It is an incredibly powerful, multifaceted company that really 162 00:08:08,600 --> 00:08:11,760 has incredible numbers. Now, I've owned Amazon long 163 00:08:11,760 --> 00:08:14,520 before I've been following Mark Mahaney, but Mark Mahaney's 164 00:08:14,520 --> 00:08:17,200 someone that has been routinely bullish on this company and he 165 00:08:17,200 --> 00:08:20,240 recently reiterated his outperform rating on the stock. 166 00:08:20,640 --> 00:08:26,040 Amazon today trades at $232.00. He believes that it's worth $100 167 00:08:26,040 --> 00:08:28,720 more, so his price target is 335. 168 00:08:28,720 --> 00:08:31,280 Mark Mahaney has recently said, and this is the statement that 169 00:08:31,280 --> 00:08:34,720 he gave Amazon in the wake of our deep dive analysis into 170 00:08:34,720 --> 00:08:37,000 Rufus. Amazon's AI power shopping 171 00:08:37,000 --> 00:08:41,280 assistant is a full throttled agentic commerce that may not be 172 00:08:41,280 --> 00:08:44,120 quite ready for prime time, but it's coming very soon. 173 00:08:44,120 --> 00:08:47,360 First, a McKenzie survey of 2000 respondents found that shopping 174 00:08:47,360 --> 00:08:50,840 advice was the second most common use of a Gen. 175 00:08:50,960 --> 00:08:52,920 AI agents like Gemini and ChatGPT. 176 00:08:52,960 --> 00:08:56,160 Second, Amazon has disclosed that more than 250 million 177 00:08:56,160 --> 00:09:01,120 customers used Rufus in 2025, generating an incremental $10 178 00:09:01,120 --> 00:09:04,360 billion in GMV. And 3rd, Rufus was actually 179 00:09:04,360 --> 00:09:07,920 smart and personalized enough to remind me that my wife loves 180 00:09:07,920 --> 00:09:11,840 dark chocolate and to include it in a recent birthday gift 181 00:09:11,880 --> 00:09:13,680 package I was putting together for her. 182 00:09:13,680 --> 00:09:16,400 He has all these, you know, he has a personal anecdote, which 183 00:09:16,480 --> 00:09:20,000 again is an anecdote, but he's also backing that with multiple 184 00:09:20,000 --> 00:09:22,520 points of broader data. So we have like survey data. 185 00:09:22,720 --> 00:09:24,680 We have data released directly from Amazon. 186 00:09:24,920 --> 00:09:28,560 Then we have an anecdote further reinforcing that .2 key points 187 00:09:28,560 --> 00:09:31,520 of agentic acceleration. First, just like the arrival of 188 00:09:31,520 --> 00:09:34,240 the smartphones and the mobile Internet material expanded the 189 00:09:34,240 --> 00:09:37,400 Tam of the online retail, we also believe that agentic 190 00:09:37,400 --> 00:09:41,560 commerce can and will do so. Amazon disclosed in November 191 00:09:41,560 --> 00:09:44,440 that customers using Rufus during a shopping journey were 192 00:09:44,440 --> 00:09:47,280 60% more likely to complete a purchase. 193 00:09:47,560 --> 00:09:49,760 That's a very powerful conversion boost. 194 00:09:50,400 --> 00:09:54,280 You looking at ROAI return on AI? 195 00:09:54,600 --> 00:09:57,320 Here it is. And all of this is before full 196 00:09:57,320 --> 00:10:00,360 awareness of Rufus that has been reached and before the full 197 00:10:00,360 --> 00:10:04,440 rollout of agentic features like autobuy, predicting, bundling 198 00:10:04,480 --> 00:10:07,920 and surely others. Our analysis suggests that Rufus 199 00:10:07,920 --> 00:10:11,160 and Agentic Commerce could boost Amazon's retail GMV by as much 200 00:10:11,160 --> 00:10:13,480 as $56 billion. So that's powerful. 201 00:10:13,480 --> 00:10:16,640 Now it's actually aiding in conversion from completion of 202 00:10:16,640 --> 00:10:19,600 sales, which is one of the biggest metrics that you look at 203 00:10:19,600 --> 00:10:21,400 if you're running any online retail business. 204 00:10:21,400 --> 00:10:24,760 And it continues on saying. And 2nd, just as Jenna AI has 205 00:10:24,760 --> 00:10:28,840 served to boost Google search revenue, so too we believe that 206 00:10:28,840 --> 00:10:32,160 Rufus can create more, not less, opportunities for Amazon 207 00:10:32,160 --> 00:10:34,560 Sponsored Products and Sponsored Brands ad revenue. 208 00:10:35,080 --> 00:10:38,240 The logic is straightforward. As agentic shopping helps guide 209 00:10:38,240 --> 00:10:41,080 and extract greater intent, it becomes more valuable to 210 00:10:41,080 --> 00:10:42,960 marketers. We estimate that agentic 211 00:10:42,960 --> 00:10:46,520 commerce could boost Amazon's ad revenue by as much as 4 billion 212 00:10:46,800 --> 00:10:50,640 or 3% by 2028. We believe strongly that market 213 00:10:50,640 --> 00:10:53,920 fares over Agentic Commerce's impact on Amazon's ad revenue 214 00:10:54,120 --> 00:10:57,480 completely missed the point, adding up the agentic impact. 215 00:10:57,800 --> 00:11:01,200 Admittedly, our estimates are speculative, but all in, we 216 00:11:01,200 --> 00:11:04,760 estimate that Agentic Commerce can boost Amazon's 2028 total 217 00:11:04,760 --> 00:11:09,800 revenue revenue by up to $31 billion or 3%, and it's 2028 218 00:11:09,800 --> 00:11:14,280 total operating income by up to 6.8 billion or 4.6%. 219 00:11:14,320 --> 00:11:17,480 This thesis from Evercore ISI or Mark Mahaney, I believe, is a 220 00:11:17,480 --> 00:11:19,840 lot more powerful or deep of a thesis than it looks on the 221 00:11:19,840 --> 00:11:22,280 surface. They're not just saying that 222 00:11:22,280 --> 00:11:24,640 Gen. AI is going to help Amazon, but 223 00:11:24,640 --> 00:11:27,120 they're actually saying the exact opposite of what most 224 00:11:27,120 --> 00:11:29,840 analysts are concerned about. Part of the reason that Amazon 225 00:11:29,840 --> 00:11:32,680 trades at a low valuation, part of the reason that it's just not 226 00:11:32,680 --> 00:11:35,560 done well compared to the rest of the Mac 7, is because 227 00:11:35,560 --> 00:11:38,680 investors are concerned about the potential impact of 228 00:11:38,920 --> 00:11:41,880 generative AI and agentic shopping on Amazon. 229 00:11:42,320 --> 00:11:43,760 Maybe it levels the playing field. 230 00:11:44,080 --> 00:11:46,040 Maybe it makes it so Amazon doesn't have as big of an 231 00:11:46,040 --> 00:11:48,000 advantage. Well, they're arguing the exact 232 00:11:48,000 --> 00:11:50,000 opposite. They're not only saying will it 233 00:11:50,000 --> 00:11:52,960 not level the playing field, it's going to uniquely benefit 234 00:11:53,000 --> 00:11:54,720 Amazon. They're going to grow much 235 00:11:54,720 --> 00:11:58,280 faster than the rest of the industry as a result of 236 00:11:58,280 --> 00:12:00,480 generative AI and agentic shopping. 237 00:12:00,600 --> 00:12:03,400 Very few companies have the infrastructure to pull this off 238 00:12:03,400 --> 00:12:06,960 in the way that Amazon does with their AWS business to support 239 00:12:06,960 --> 00:12:09,000 and implement Gen. AI throughout all of their 240 00:12:09,200 --> 00:12:11,760 company and all of their products and with the tech 241 00:12:11,760 --> 00:12:13,160 talent to be able to build this out. 242 00:12:13,560 --> 00:12:16,920 So Amazon is a company that could materially outperform 243 00:12:16,920 --> 00:12:19,720 expectations this year going into 2026. 244 00:12:19,720 --> 00:12:21,400 I feel very good about my position. 245 00:12:21,480 --> 00:12:23,880 Now as we continue moving on, we're again searching for the 246 00:12:23,880 --> 00:12:26,720 widest mode, best compounding machines on planet Earth. 247 00:12:27,000 --> 00:12:29,080 Companies that have such wide modes, they're virtually 248 00:12:29,080 --> 00:12:31,680 indestructible. And the next two that we'll talk 249 00:12:31,680 --> 00:12:34,440 about, I'll group them together because they're very similar and 250 00:12:34,440 --> 00:12:36,320 they also happen to be two companies that are in My 251 00:12:36,320 --> 00:12:38,360 Portfolio. Remember that a lot of these 252 00:12:38,360 --> 00:12:40,520 companies that I believe are the best in the world are ones that 253 00:12:40,520 --> 00:12:42,760 I own. So again, I'm not just telling 254 00:12:42,760 --> 00:12:44,600 you about this. These are ones that I have real 255 00:12:44,600 --> 00:12:48,160 money behind. These are S&P Global and 256 00:12:48,160 --> 00:12:52,240 Moody's, 2 of what are the most powerful duopolistic companies 257 00:12:52,240 --> 00:12:55,440 on planet Earth. Now, if we look at Moody's and 258 00:12:55,600 --> 00:12:57,480 S&B Global, they're both up huge today. 259 00:12:57,480 --> 00:13:02,040 S&B Global's up 4.46%. Moody's is up even more, another 260 00:13:02,040 --> 00:13:04,600 6.2% today. That's part of the reason My 261 00:13:04,600 --> 00:13:06,520 Portfolio has really shot up today. 262 00:13:06,840 --> 00:13:09,320 When I look at my position in these companies, we can look in 263 00:13:09,320 --> 00:13:12,600 the financial category and we have S&P Global right here. 264 00:13:12,720 --> 00:13:16,880 It's a $118,000 position with $37,000 in gains. 265 00:13:17,280 --> 00:13:19,320 That's not the only place that I hold this company. 266 00:13:19,600 --> 00:13:23,400 I also hold it in the Story Fund is a smaller position, 23,000 267 00:13:23,640 --> 00:13:26,040 with $7000 in gains. So when you combine that 268 00:13:26,040 --> 00:13:28,320 together, I hold a lot of this company. 269 00:13:28,600 --> 00:13:31,600 It's one of my most significant bets because I believe, again, 270 00:13:31,600 --> 00:13:34,440 it's such a powerful stock. It is indestructible. 271 00:13:35,000 --> 00:13:37,640 Then we also have Moody's. I bought a lot of Moody's as 272 00:13:37,640 --> 00:13:40,000 well. This is a $62,000 position and 273 00:13:40,000 --> 00:13:43,520 it's in the green over $15,000. When you look at S&P Global and 274 00:13:43,520 --> 00:13:47,000 Moody's, these aren't national businesses that only really work 275 00:13:47,000 --> 00:13:49,360 within the US. They are global businesses. 276 00:13:49,640 --> 00:13:53,120 They become the standard language protocol of how there's 277 00:13:53,120 --> 00:13:55,720 trust throughout all different nations and all different 278 00:13:55,720 --> 00:13:59,480 businesses in issuing debt. Anytime a company issues debt 279 00:13:59,760 --> 00:14:02,320 and they want someone else to trust that they can repay that 280 00:14:02,320 --> 00:14:06,120 debt, they issuing, they get it rated by either S&P Global or by 281 00:14:06,120 --> 00:14:08,360 Moody's or in many cases by both. 282 00:14:08,680 --> 00:14:11,400 Because if they don't, if they say we don't want to pay S&P 283 00:14:11,400 --> 00:14:13,560 Global, we don't want to pay Moody's, we don't want to get 284 00:14:13,560 --> 00:14:17,240 our debt rated, they'll actually pay more as a response of that 285 00:14:17,240 --> 00:14:19,640 because other people won't trust their debt. 286 00:14:20,000 --> 00:14:23,760 Other ETFs and institutions and banks will not buy their debt, 287 00:14:23,920 --> 00:14:27,280 causing the interest rate on that debt to go up or the fact 288 00:14:27,280 --> 00:14:30,400 that those companies issuing it have to pay more as a result. 289 00:14:30,880 --> 00:14:33,880 So S&B Global and Moody's are what's called a natural 290 00:14:33,880 --> 00:14:37,280 monopoly, meaning that the dynamics of the market create a 291 00:14:37,280 --> 00:14:39,120 monopoly. It's not something where they 292 00:14:39,120 --> 00:14:41,920 have to force their product upon other companies. 293 00:14:42,320 --> 00:14:44,360 It's not like the Apple App Store where they capture 294 00:14:44,360 --> 00:14:47,960 customers and they force pricing With S&B Global and Moody's 295 00:14:48,200 --> 00:14:51,080 companies come to them, they, they get on their knees, they 296 00:14:51,080 --> 00:14:53,280 bow down and they say, please give us a good rating. 297 00:14:53,480 --> 00:14:56,120 We'll do anything for it. Let us be friends. 298 00:14:56,120 --> 00:14:58,120 We'll we'll meet with you. We'll have the CEO fly to your 299 00:14:58,120 --> 00:15:00,280 business. We'll do anything for a good 300 00:15:00,280 --> 00:15:02,840 rating because that saves us a fortune. 301 00:15:02,840 --> 00:15:05,800 S&P Global and Moody's sit at the very top of the food chain. 302 00:15:06,240 --> 00:15:08,200 Other companies come begging to them. 303 00:15:08,440 --> 00:15:11,280 With S&P Global, they come begging for two reasons, to get 304 00:15:11,280 --> 00:15:14,000 a good rating with a low interest rate and to get 305 00:15:14,000 --> 00:15:18,200 included in the S&P 500, the most prestige index that exists. 306 00:15:18,680 --> 00:15:22,280 So this company has multiple aspects of it that really put it 307 00:15:22,280 --> 00:15:24,760 above most companies. And I believe these two 308 00:15:24,760 --> 00:15:27,560 companies are ones that should be looked at by every serious 309 00:15:27,560 --> 00:15:29,920 investor. They're almost layups. 310 00:15:29,920 --> 00:15:32,560 They're like the easiest companies to invest in and make 311 00:15:32,560 --> 00:15:34,840 gains on. Now they're both up big today. 312 00:15:34,920 --> 00:15:38,000 So you may say I don't want to invest in them now, but I 313 00:15:38,000 --> 00:15:40,480 believe there's a lot more to come with these companies. 314 00:15:40,480 --> 00:15:42,600 One of the big reasons that they're up today is because of 315 00:15:42,600 --> 00:15:45,000 an upgrade from an analyst firm called Stifle. 316 00:15:45,000 --> 00:15:47,840 They upgraded Moody's from a hold to a buy. 317 00:15:48,320 --> 00:15:50,720 The reason why is they basically said that when they're doing a 318 00:15:50,720 --> 00:15:54,080 lot of market analysis on the debt markets, there's been a lot 319 00:15:54,080 --> 00:15:56,960 of companies that haven't issued debt because they're waiting on 320 00:15:56,960 --> 00:15:59,360 the sidelines and in fact, stifle that gave them this 321 00:15:59,360 --> 00:16:02,080 bullish rating today said that they believe there's going to be 322 00:16:02,080 --> 00:16:05,560 a massive wave of debt issuance in 2026. 323 00:16:06,000 --> 00:16:09,800 Like we've hit this debt wall. Lots of companies are up and 324 00:16:09,800 --> 00:16:13,200 they're due to renew their debt. They have to take out new debt. 325 00:16:13,440 --> 00:16:16,160 And again, whenever they do that, they have to pass through 326 00:16:16,160 --> 00:16:18,560 the toll booth of S&P Global and Moody's. 327 00:16:18,560 --> 00:16:21,600 So S&P Global and Moody's, a way that you can visualize this is 328 00:16:21,600 --> 00:16:23,600 they're the toll booth that sits on this bridge. 329 00:16:24,040 --> 00:16:25,840 Then you have cars on either side of it. 330 00:16:26,080 --> 00:16:28,720 Every time they pass, they pay S&P Global and Moody's their 331 00:16:28,720 --> 00:16:30,880 fee. There's a lot of cars that have 332 00:16:30,880 --> 00:16:33,400 been waiting on one side of the bridge for interest rates to 333 00:16:33,400 --> 00:16:35,120 come down. They're piling up. 334 00:16:35,120 --> 00:16:36,800 There's like a huge traffic jam there. 335 00:16:37,160 --> 00:16:39,320 And this year, they believe that all those cars are going to 336 00:16:39,320 --> 00:16:41,200 start driving through and they're going to have to pay 337 00:16:41,200 --> 00:16:44,000 that toll. So right now is a good time to 338 00:16:44,000 --> 00:16:47,000 buy the stock, not because it's going up, but because of what's 339 00:16:47,000 --> 00:16:49,800 going to happen in the future. The other reason the S&P Global 340 00:16:49,800 --> 00:16:52,320 and Moody's are up big today is because of macro events. 341 00:16:52,440 --> 00:16:55,720 And we have some macro events that recently happened. the US 342 00:16:55,720 --> 00:16:58,640 government flew in with Delta Force and they captured Nicolas 343 00:16:58,640 --> 00:17:00,400 Maduro. They extracted him from 344 00:17:00,400 --> 00:17:03,040 Venezuela and they're holding him on charges of drug crimes 345 00:17:03,040 --> 00:17:06,079 and other various crimes. Now, this is news that everybody 346 00:17:06,079 --> 00:17:08,680 has an opinion on. Some people like what happened. 347 00:17:08,680 --> 00:17:10,000 Some people don't like what happened. 348 00:17:10,000 --> 00:17:12,400 Some people like certain aspects of it and don't like certain 349 00:17:12,400 --> 00:17:14,280 aspects of it. It's a thing that everyone has 350 00:17:14,280 --> 00:17:16,960 an opinion on. So regardless of your opinion on 351 00:17:16,960 --> 00:17:19,119 whether or not the US government should have done that or what 352 00:17:19,119 --> 00:17:21,400 should have happened, it did happen. 353 00:17:21,680 --> 00:17:24,000 And the reality is that investors are looking at 354 00:17:24,000 --> 00:17:28,040 Venezuela now as an economy that could be restructured and have a 355 00:17:28,040 --> 00:17:30,280 more normalized capitalistic structure. 356 00:17:30,680 --> 00:17:34,120 If that happens, they will issue more sovereign debt. 357 00:17:34,400 --> 00:17:36,240 They'll do that almost immediately. 358 00:17:36,320 --> 00:17:39,080 And S&P Global Moody's don't just rate corporate debt, they 359 00:17:39,080 --> 00:17:42,400 rate sovereign debt as well. Any credible sovereign debt 360 00:17:42,400 --> 00:17:45,360 that's being issued will have to go through S&P Global, Moody's. 361 00:17:45,880 --> 00:17:48,680 If the Venezuelan government starts to issue billions of 362 00:17:48,680 --> 00:17:51,480 dollars worth of bonds and government debt, they're going 363 00:17:51,480 --> 00:17:53,200 to be rated by SME Global and Moody's. 364 00:17:53,200 --> 00:17:54,520 They'll make a lot of money that way. 365 00:17:54,880 --> 00:17:57,480 And you can see that there's market activity actually backing 366 00:17:57,480 --> 00:18:00,320 this point already. Venezuelan bonds are already 367 00:18:00,320 --> 00:18:02,960 rallying based on the anticipation of a more 368 00:18:02,960 --> 00:18:06,120 normalized economy. There is a common thing amongst 369 00:18:06,120 --> 00:18:09,200 global economies, debt is a secular trend. 370 00:18:09,480 --> 00:18:13,040 Companies and governments and everyone else in between, they 371 00:18:13,040 --> 00:18:15,800 need debt to grow. That's one of the biggest 372 00:18:15,880 --> 00:18:19,120 aspects of growth ahead and these companies remain a bigger, 373 00:18:19,240 --> 00:18:23,440 more embedded, deeper Moat company every time debt issuance 374 00:18:23,440 --> 00:18:25,520 grows throughout the world. Now as we look at the best 375 00:18:25,520 --> 00:18:27,760 companies in the world with the widest moats and most 376 00:18:27,760 --> 00:18:30,920 indestructible business models, there's another two that I have 377 00:18:30,920 --> 00:18:33,160 to highlight and they're two companies that you are familiar 378 00:18:33,160 --> 00:18:36,680 with Visa and MasterCard. These are both ones that every 379 00:18:36,680 --> 00:18:38,440 compounding investor should look at. 380 00:18:38,800 --> 00:18:42,120 Even though the market has already seen these companies and 381 00:18:42,320 --> 00:18:44,440 maybe it feels like you don't have any special edge. 382 00:18:44,760 --> 00:18:47,640 These are two companies that will likely still outperform the 383 00:18:47,640 --> 00:18:51,400 broader index over the next 5 to 10 years because investors do 384 00:18:51,400 --> 00:18:54,240 miss the broader trends with Visa MasterCard. 385 00:18:54,360 --> 00:18:57,160 Visa MasterCard share duopoly across credit payments and 386 00:18:57,160 --> 00:18:59,680 digital transactions. They offer immense value through 387 00:18:59,680 --> 00:19:02,880 a multi sided network. With a normal network, each 388 00:19:02,880 --> 00:19:04,480 party offers value to each other. 389 00:19:04,480 --> 00:19:05,720 That's what we do on a phone call. 390 00:19:05,880 --> 00:19:08,600 You have two people on it. Each one offers value to the 391 00:19:08,600 --> 00:19:10,440 other one. If one of you drops off, then 392 00:19:10,440 --> 00:19:13,600 that network has no value. With Visa and MasterCard, they 393 00:19:13,600 --> 00:19:16,720 offer a multi sided network that's deeply complex and it 394 00:19:16,720 --> 00:19:18,600 works with exponential value creation. 395 00:19:18,600 --> 00:19:20,960 This is why it's impossible to remake these companies. 396 00:19:21,360 --> 00:19:24,960 For example, every single customer, every new customer 397 00:19:24,960 --> 00:19:28,080 that signs up for Visa or MasterCard, they become 398 00:19:28,160 --> 00:19:31,560 exponentially more valuable to a merchant. 399 00:19:31,800 --> 00:19:34,400 And every single new merchant that signs up for Visa, 400 00:19:34,400 --> 00:19:37,320 MasterCard becomes exponentially more valuable to all the 401 00:19:37,320 --> 00:19:40,200 customers. So you see this self reinforcing 402 00:19:40,200 --> 00:19:42,600 issue here. It becomes a chicken and the egg 403 00:19:42,600 --> 00:19:44,640 problem. All these customers, the 404 00:19:44,640 --> 00:19:47,600 billions of people using their network make it so that they're 405 00:19:47,600 --> 00:19:49,400 incredibly powerful customer base. 406 00:19:49,760 --> 00:19:51,840 And then you have all the merchants using it, which make 407 00:19:51,840 --> 00:19:54,440 it an incredibly powerful merchant base for the customers. 408 00:19:54,920 --> 00:19:57,640 No other company can start this chicken and egg problem. 409 00:19:57,840 --> 00:20:00,440 They'd rather just use the networks that already exist. 410 00:20:00,840 --> 00:20:04,360 The attempts to bypass them also are not going to have as big of 411 00:20:04,360 --> 00:20:07,000 an impact on Visa MasterCard as many investors believe. 412 00:20:07,000 --> 00:20:08,640 For example. Visa's network is already so 413 00:20:08,640 --> 00:20:12,800 massive at this point it it is at a point where it's literally 414 00:20:12,800 --> 00:20:16,280 unbreakable. We look at it and they have 3.4 415 00:20:16,280 --> 00:20:19,600 billion debit cards. They have 1.5 billion credit 416 00:20:19,600 --> 00:20:21,640 cards. And this continues to grow year 417 00:20:21,640 --> 00:20:24,960 after year with MasterCard, they don't have nearly as big of a 418 00:20:24,960 --> 00:20:28,840 network as Visa, but they do have a large network, 3.32 419 00:20:28,840 --> 00:20:31,200 billion Mastercards. MasterCard has a higher 420 00:20:31,200 --> 00:20:32,600 percentage of these being credit cards. 421 00:20:32,600 --> 00:20:35,240 And you can also see the organic growth over long periods of 422 00:20:35,240 --> 00:20:37,200 time. As time goes on, more 423 00:20:37,200 --> 00:20:40,280 Mastercards get issued because again, all these merchants 424 00:20:40,320 --> 00:20:42,200 become very valuable to the customers. 425 00:20:42,480 --> 00:20:45,000 All these customers become very valuable to the merchants. 426 00:20:45,000 --> 00:20:48,080 Now, when choosing to invest between Visa or MasterCard, this 427 00:20:48,080 --> 00:20:50,680 is where you can kind of choose your own path, so to to speak. 428 00:20:51,000 --> 00:20:53,080 For example, with the Visa, there are different things to 429 00:20:53,080 --> 00:20:55,520 consider. Visa is a company that's more 430 00:20:55,520 --> 00:20:57,960 concentrated on the network itself. 431 00:20:58,200 --> 00:21:01,600 The Visa rails, they're going for just broad scale. 432 00:21:01,600 --> 00:21:04,200 They want to be everywhere with every transaction. 433 00:21:04,520 --> 00:21:07,800 So they're focusing entirely on growing their network, 434 00:21:07,800 --> 00:21:10,560 solidifying their network. They're not as big into the 435 00:21:10,560 --> 00:21:13,440 other services. And although Visa does have a 436 00:21:13,440 --> 00:21:16,240 value added service segment on this chart, we can see it right 437 00:21:16,240 --> 00:21:17,720 here, which is the other category. 438 00:21:18,320 --> 00:21:21,400 It's a very small category of the overall services that Visa 439 00:21:21,400 --> 00:21:24,080 provides. If you're going for share scale, 440 00:21:24,280 --> 00:21:28,200 broad size, and a company that's reliant mostly on its native 441 00:21:28,240 --> 00:21:30,240 rails, then you would invest in Visa. 442 00:21:30,320 --> 00:21:32,000 MasterCard has a different approach. 443 00:21:32,280 --> 00:21:35,200 MasterCard long ago realized that they could never scale 444 00:21:35,200 --> 00:21:38,520 their network bigger than Visas. Visa has just simply one at that 445 00:21:38,520 --> 00:21:40,400 game. So instead of trying to focus 446 00:21:40,400 --> 00:21:43,600 solely on their rails and their network, they actually became a 447 00:21:43,600 --> 00:21:46,320 bit more agnostic to their network in general. 448 00:21:46,360 --> 00:21:49,360 They leaned into what's called a value add service business where 449 00:21:49,360 --> 00:21:52,000 they focus on transactions, whether or not those 450 00:21:52,000 --> 00:21:55,040 transactions happen on their network or off their network. 451 00:21:55,080 --> 00:21:58,080 MasterCard believes fully that they don't know what rail will 452 00:21:58,080 --> 00:22:00,600 succeed over the long period, but they do know that every 453 00:22:00,600 --> 00:22:04,000 single transaction is centered around trust, is centered around 454 00:22:04,000 --> 00:22:06,720 fraud prevention, is centered around knowing your customer. 455 00:22:06,720 --> 00:22:08,840 And these are tools that they've developed where they can help 456 00:22:08,920 --> 00:22:11,960 any type of transaction, whether it happens on the MasterCard 457 00:22:11,960 --> 00:22:14,480 rail or whether happens on a governmental rail. 458 00:22:14,520 --> 00:22:18,400 The product that MasterCard really sells is trust, trust in 459 00:22:18,400 --> 00:22:20,400 transactions. And that's something that is 460 00:22:20,400 --> 00:22:23,120 widely applicable to any transaction throughout the 461 00:22:23,120 --> 00:22:25,840 world. So MasterCard is more of a pick 462 00:22:25,840 --> 00:22:29,000 if you're less focused on the rails itself, if you're less 463 00:22:29,000 --> 00:22:32,200 focused on the share volume of transactions and you're more 464 00:22:32,200 --> 00:22:34,640 focused on a company that's trying to sell trust and become 465 00:22:34,640 --> 00:22:38,200 agnostic and becoming multi rail, meaning that MasterCard is 466 00:22:38,200 --> 00:22:40,800 working with companies that do government payments, that do 467 00:22:40,800 --> 00:22:43,600 stable coins, that do everything and they have a much bigger 468 00:22:43,600 --> 00:22:46,280 value added service business. For me personally, I like 469 00:22:46,280 --> 00:22:47,920 Mastercard's approach a little bit more. 470 00:22:48,160 --> 00:22:51,240 I think both are great and both are super wide mode, but I've 471 00:22:51,240 --> 00:22:53,680 put my eggs in the MasterCard basket. 472 00:22:53,680 --> 00:22:57,680 I have $192,000 position here. It's my biggest position by far. 473 00:22:57,880 --> 00:23:01,840 It's only $43,000 in the green so far, but I see further steady 474 00:23:01,840 --> 00:23:05,160 growth ahead for MasterCard. I recently did a deep dive into 475 00:23:05,160 --> 00:23:07,800 MasterCard as an exclusive video as part of the Qualtrum 476 00:23:07,800 --> 00:23:10,280 membership. It's around an hour long. 477 00:23:10,280 --> 00:23:13,080 It's called the thesis, the hidden bowl case of MasterCard, 478 00:23:13,120 --> 00:23:16,240 where I go through far more in depth about what Mastercard's 479 00:23:16,240 --> 00:23:19,360 transition in their business actually is and how we can look 480 00:23:19,360 --> 00:23:22,320 at it as investors. The feedback on these exclusive 481 00:23:22,320 --> 00:23:25,280 videos where I can dive in a bit deeper has so far been very 482 00:23:25,280 --> 00:23:27,000 positive. Some people in the community 483 00:23:27,000 --> 00:23:29,320 have said that they're halfway through the video and it's 484 00:23:29,320 --> 00:23:32,000 already in their top ten favorite videos of all time. 485 00:23:32,320 --> 00:23:35,040 So if you want to see more on this, if you want to see videos 486 00:23:35,040 --> 00:23:38,000 that don't quite fit well within the YouTube category publicly, 487 00:23:38,000 --> 00:23:40,320 then you can join the private community through qualtrum.com 488 00:23:40,320 --> 00:23:42,040 and you get access to a lot more content. 489 00:23:42,200 --> 00:23:44,920 Now next on the list of the most powerful monopolistic companies 490 00:23:44,920 --> 00:23:49,160 in the world, we have GE Aerospace, which is one that 491 00:23:49,160 --> 00:23:51,680 we've talked about a little bit. This is an investment that I 492 00:23:51,680 --> 00:23:53,640 believe Chris Hohn has popularized. 493 00:23:53,960 --> 00:23:57,440 Chris Hohn is a very disciplined value investor. 494 00:23:57,440 --> 00:24:00,360 He only invests in what he considers are strong companies. 495 00:24:00,800 --> 00:24:03,360 Now, his list of strong companies mirrors many of the 496 00:24:03,360 --> 00:24:05,520 ones that we've talked about today, many of the ones that are 497 00:24:05,520 --> 00:24:08,480 like the rails, the networks that you do payments on, many 498 00:24:08,480 --> 00:24:10,520 companies that have moats that are indestructible. 499 00:24:10,520 --> 00:24:14,400 But GE is a company that many high quality investors didn't 500 00:24:14,400 --> 00:24:17,240 fully realize how good the quality of this company actually 501 00:24:17,240 --> 00:24:20,400 is until Chris Hohn again popularized it, had it in the 502 00:24:20,400 --> 00:24:23,760 portfolio, and of course the staggeringly good performance 503 00:24:23,920 --> 00:24:25,520 helped out with getting attention. 504 00:24:25,800 --> 00:24:30,200 We have GE as a company that's up 476% over the last five 505 00:24:30,200 --> 00:24:32,120 years. In just the past year, it's up 506 00:24:32,240 --> 00:24:34,920 89%. That grabs attention. 507 00:24:35,120 --> 00:24:36,600 What is going on with this company? 508 00:24:36,600 --> 00:24:39,880 And this is where we break down a lot of misconceptions about 509 00:24:39,880 --> 00:24:42,080 these companies. For example, if you're looking 510 00:24:42,080 --> 00:24:45,640 at GE, you may just remember it as GE, the company that makes 511 00:24:45,640 --> 00:24:48,440 the washing machines and the refrigerators, and they might 512 00:24:48,440 --> 00:24:50,320 make some like plain parts as well. 513 00:24:50,440 --> 00:24:52,680 And why would you want to invest in a company that's creating 514 00:24:52,680 --> 00:24:54,240 washing machines and refrigerators? 515 00:24:54,400 --> 00:24:56,080 Those are the worst companies to invest in. 516 00:24:56,720 --> 00:24:59,200 But GE shifted from that business plan. 517 00:24:59,400 --> 00:25:03,000 They spun off everything else, and they created GE Aerospace. 518 00:25:03,120 --> 00:25:05,640 But even after the company restructured into only the 519 00:25:05,640 --> 00:25:09,400 assets that build aerospace parts, GE Aerospace, it's still 520 00:25:09,400 --> 00:25:12,160 a company that's widely misunderstood by analysts and 521 00:25:12,160 --> 00:25:14,600 investors. Many analysts look at GE, and 522 00:25:14,600 --> 00:25:17,920 they say, yeah, it's a company that builds aerospace parts. 523 00:25:17,920 --> 00:25:20,640 And the bull case for it is that travel's recovering. 524 00:25:20,640 --> 00:25:22,160 There's going to be more planes in the sky. 525 00:25:22,760 --> 00:25:24,120 That completely misses the point. 526 00:25:24,200 --> 00:25:27,120 The thesis on GE is not that travel's recovering. 527 00:25:27,360 --> 00:25:30,800 The thesis for this company is that it is a monopoly royalty on 528 00:25:30,800 --> 00:25:33,680 global GDP masquerading as a factory. 529 00:25:34,160 --> 00:25:36,840 People are missing the forest from the trees with GE. 530 00:25:36,880 --> 00:25:39,920 In essence, it possesses the Holy Grail of investing, a 531 00:25:39,920 --> 00:25:42,760 company that has monopolistic dominance over its aftermarket 532 00:25:42,760 --> 00:25:44,880 sales. It has regulated products that 533 00:25:44,880 --> 00:25:47,640 have to be required to be purchased by manufacturer like 534 00:25:47,640 --> 00:25:51,000 GE, and it possesses such high barriers to entry that literally 535 00:25:51,000 --> 00:25:53,760 no other company has entered into its space in the past 50 536 00:25:53,760 --> 00:25:55,680 years. This is part of the reason that 537 00:25:55,680 --> 00:25:57,800 Chris Hoehn looks for this type of company. 538 00:25:58,200 --> 00:26:03,240 It is an obvious outcome. GE is essentially embedded by 539 00:26:03,240 --> 00:26:06,760 the government when it creates a plane engine or a turbo engine, 540 00:26:06,960 --> 00:26:08,600 which again are so difficult to create. 541 00:26:08,880 --> 00:26:11,600 No company has even entered into this category for the past 50 542 00:26:11,600 --> 00:26:14,040 years. So GE is making these or putting 543 00:26:14,040 --> 00:26:16,400 them on planes. When they put them on planes, 544 00:26:16,400 --> 00:26:18,760 there's service, there's parts that need to be replaced. 545 00:26:19,160 --> 00:26:22,040 Can the plane go to any different company? 546 00:26:22,360 --> 00:26:24,440 Can they say even though we bought the engine from GE, we're 547 00:26:24,440 --> 00:26:26,240 going to get the part from this manufacturer? 548 00:26:26,240 --> 00:26:29,080 This one they can't. The government will not allow 549 00:26:29,080 --> 00:26:30,600 it. You have to get the approved 550 00:26:30,600 --> 00:26:34,480 parts purely from GE, the manufacturer of the engine. 551 00:26:35,040 --> 00:26:37,840 So they have an aftermarket monopoly on everything they 552 00:26:37,840 --> 00:26:41,200 sell, very similar to the dynamics that you see with ASML. 553 00:26:41,440 --> 00:26:44,120 They sell the big EUV machine. They have an aftermarket 554 00:26:44,120 --> 00:26:46,520 monopoly on that machine. They're the only one that can 555 00:26:46,520 --> 00:26:48,240 service it. As they install more plane 556 00:26:48,240 --> 00:26:52,040 engines, their install base increases, that high margin 557 00:26:52,040 --> 00:26:55,000 service revenue increases. They have essentially infinite 558 00:26:55,000 --> 00:26:57,320 pricing power on the aftermarket sales. 559 00:26:57,400 --> 00:27:00,880 So GE is an obvious winner. It has predictability, it has 560 00:27:00,880 --> 00:27:02,440 incredibly high barriers to entry. 561 00:27:02,640 --> 00:27:05,600 It has a Moat that's defined by physics, not just by network 562 00:27:05,600 --> 00:27:08,120 effects or by different government mandates. 563 00:27:08,280 --> 00:27:10,920 It's very difficult to even enter into this category. 564 00:27:10,920 --> 00:27:13,960 Then you back that by management that's very much investor 565 00:27:13,960 --> 00:27:15,880 aligned. They're trying to bump this 566 00:27:15,880 --> 00:27:18,040 stock up as well. They're using it to create 567 00:27:18,040 --> 00:27:19,640 enormous gains for the shareholder. 568 00:27:20,160 --> 00:27:22,480 It is a perfect storm. Again, it's the Holy Grail of an 569 00:27:22,480 --> 00:27:24,160 investment. It's almost everything that you 570 00:27:24,160 --> 00:27:26,200 could look for. I've become very interested in 571 00:27:26,200 --> 00:27:28,440 this company and have continued to research it more and more. 572 00:27:28,760 --> 00:27:31,960 Many of my best investments are from learning about investors 573 00:27:31,960 --> 00:27:34,920 like Chris Hohn, what they see in the company and then doing 574 00:27:34,920 --> 00:27:37,800 deeper dive research on these investments so that I can build 575 00:27:37,800 --> 00:27:41,000 conviction in them as well. When I look at GEI believe it 576 00:27:41,000 --> 00:27:44,800 does possess very similar moats, very similar investment thesis 577 00:27:44,800 --> 00:27:47,800 to the likes of ASML. For me, this is 1 to strongly 578 00:27:47,800 --> 00:27:50,920 consider going into 2026. Now we've already gone through 7 579 00:27:50,920 --> 00:27:53,560 and we have three more companies that I believe again are the 580 00:27:53,560 --> 00:27:56,680 best in the world. And this next one I become very 581 00:27:56,680 --> 00:27:59,200 interested in as I've learned more about the semiconductor 582 00:27:59,200 --> 00:28:01,600 industry and I've been picking and choosing and seeing which 583 00:28:01,600 --> 00:28:03,720 companies I believe are the best within that industry. 584 00:28:04,200 --> 00:28:07,440 One of them sticks out as an increasingly powerful, dominant 585 00:28:07,800 --> 00:28:10,480 and critically important company to the global economy. 586 00:28:10,800 --> 00:28:15,400 That company is TSM. Now, it may seem obvious, you 587 00:28:15,400 --> 00:28:18,160 know, everybody knows about TSM. They know it's a great company. 588 00:28:18,640 --> 00:28:21,840 But a lot of things, again, even with these companies, are still 589 00:28:21,840 --> 00:28:25,760 not obvious to most investors because it wasn't obvious to me 590 00:28:25,760 --> 00:28:28,520 at first sight. I've always viewed TSM as a 591 00:28:28,520 --> 00:28:31,360 great company. They make chips, but it's one of 592 00:28:31,360 --> 00:28:34,520 those hardware companies that's cyclical, that you can't really 593 00:28:34,520 --> 00:28:36,600 rely on. It goes through booms and busts. 594 00:28:37,120 --> 00:28:40,200 And I believe that that thesis, my previous view of the company, 595 00:28:40,600 --> 00:28:42,800 is essentially dead. It's just wrong. 596 00:28:43,240 --> 00:28:46,120 TSM is no longer a cyclical hardware company. 597 00:28:46,120 --> 00:28:47,720 That's an outdated view of this stock. 598 00:28:48,120 --> 00:28:50,840 When we look at the stock, though, it's still being priced 599 00:28:50,920 --> 00:28:53,600 that way. It's being priced today at a 22 600 00:28:53,600 --> 00:28:57,000 to 26 Ford PE. Why is TSM being priced at such 601 00:28:57,000 --> 00:28:58,960 a low earnings multiple? If it's such an important 602 00:28:58,960 --> 00:29:01,320 company, we'll get investors view it as a cyclical 603 00:29:01,320 --> 00:29:04,640 semiconductor company, one that you can't really rely on for 604 00:29:04,640 --> 00:29:07,160 solid earnings performance on an ongoing basis. 605 00:29:07,320 --> 00:29:10,680 Now, if that view is wrong, what is the correct view of TSM? 606 00:29:10,840 --> 00:29:14,640 It is turned into a global utility monopoly on compute, 607 00:29:15,120 --> 00:29:18,680 meaning everything that we do with compute, every computer, 608 00:29:18,680 --> 00:29:22,640 every smartphone, every smart car, every refrigerator with a 609 00:29:22,640 --> 00:29:26,320 chip in it, every TV that comes with chips in it, every single 610 00:29:26,320 --> 00:29:30,400 thing that we're doing with compute has to pass through TSM. 611 00:29:30,880 --> 00:29:34,360 And this is again, a structural advantage that TSM has developed 612 00:29:34,360 --> 00:29:37,080 over the past decade that other companies don't have. 613 00:29:37,440 --> 00:29:39,360 It's a structural advantage with physics. 614 00:29:39,760 --> 00:29:42,200 This is what I'm starting to believe is one of the biggest 615 00:29:42,200 --> 00:29:44,840 moats in the market. We have moats of network 616 00:29:44,840 --> 00:29:47,440 effects, which are companies like Facebook and Google and 617 00:29:47,520 --> 00:29:50,280 Visa, MasterCard. Those are great network effect 618 00:29:50,320 --> 00:29:52,520 companies. We have companies with mandated 619 00:29:52,520 --> 00:29:55,160 monopolies. We have ones like S&P Global and 620 00:29:55,160 --> 00:29:57,680 Moody's, but then we also have companies that I believe have a 621 00:29:57,680 --> 00:30:00,880 physics monopoly. These are the ones like ASML, 622 00:30:00,880 --> 00:30:03,320 the ones like GE and now we have TSM. 623 00:30:03,640 --> 00:30:06,240 And I believe that the physics monopoly along with their 624 00:30:06,240 --> 00:30:09,920 network effects on top of it create an incredibly powerful 625 00:30:09,920 --> 00:30:12,080 Moat. And it's a Moat and a toll booth 626 00:30:12,400 --> 00:30:16,280 on a product or service that's becoming more consistent and 627 00:30:16,280 --> 00:30:19,400 less cyclical, which is demand for compute. 628 00:30:19,800 --> 00:30:23,120 Demand for compute has become not a thing that we want at 629 00:30:23,120 --> 00:30:25,760 certain points or another. It's a thing the world needs all 630 00:30:25,760 --> 00:30:28,160 the time. The truth is with TSM is that 631 00:30:28,160 --> 00:30:31,960 they have so-called competitors with Intel and Samsung that are 632 00:30:31,960 --> 00:30:34,040 in the same category. And you might hear that they're 633 00:30:34,040 --> 00:30:37,000 making these high end chips as well, but you can consider them 634 00:30:37,080 --> 00:30:39,880 as more of a theoretical competitor than an actual 635 00:30:39,880 --> 00:30:43,680 competitor to TSM right now. They cannot create the same 636 00:30:43,720 --> 00:30:45,520 fabs, they can't create the same chips. 637 00:30:45,520 --> 00:30:47,480 They don't have the science, they don't have the technology, 638 00:30:47,680 --> 00:30:49,360 they don't have the manufacturing capability. 639 00:30:49,680 --> 00:30:54,040 TSM is in a league of its own. So when TSM creates the highest 640 00:30:54,040 --> 00:30:56,600 end chips, they have unmitigated pricing power. 641 00:30:56,920 --> 00:30:59,880 They don't have the downward pricing power pressure of these 642 00:30:59,880 --> 00:31:02,760 competitors because these competitors can't create the 643 00:31:02,760 --> 00:31:06,040 same chips. So TSM in the most important 644 00:31:06,040 --> 00:31:10,080 segment of its business is a monopoly, not a duopoly, not an 645 00:31:10,080 --> 00:31:12,160 oligopoly. They are a full on monopoly. 646 00:31:12,200 --> 00:31:14,600 They're also critically important to global GDP. 647 00:31:14,960 --> 00:31:16,920 And this is a point that I want to stress because again, when we 648 00:31:16,920 --> 00:31:20,640 look at TSM, you'll notice that for such a critical company, it 649 00:31:20,640 --> 00:31:25,160 trades at this PE ratio between a 22 to 26, right? 650 00:31:25,160 --> 00:31:28,640 We can say it's around a 24. That is on a really low end. 651 00:31:29,000 --> 00:31:32,080 We have companies all over the place that have higher P ES than 652 00:31:32,080 --> 00:31:34,840 this. Why does TSM trade at such a 653 00:31:34,840 --> 00:31:38,360 discount based on how critically important and how fast and how 654 00:31:38,360 --> 00:31:42,880 profitable the company is? Why is this stock not $500 per 655 00:31:42,880 --> 00:31:45,160 share? Well, there's one big factor of 656 00:31:45,160 --> 00:31:48,880 why TSM is not $500 per share, and that is because of the risk 657 00:31:48,880 --> 00:31:53,160 of a Chinese invasion on Taiwan. This is geopolitical risk, and 658 00:31:53,160 --> 00:31:56,040 investors are always cautious and nervous about geopolitical 659 00:31:56,040 --> 00:31:59,040 risk. There are reports that China is 660 00:31:59,040 --> 00:32:01,720 posturing around this. They're kind of flexing their 661 00:32:01,720 --> 00:32:03,880 muscles. They're making moves that make 662 00:32:03,880 --> 00:32:05,880 it seem like they want to invade Taiwan. 663 00:32:06,480 --> 00:32:08,600 And so the risk is something that every investor has to 664 00:32:08,600 --> 00:32:10,720 concern themselves with. In fact, when we look at why 665 00:32:10,720 --> 00:32:14,480 Warren Buffett bought TSM and then sold out of it, he didn't 666 00:32:14,480 --> 00:32:17,280 outright name China. But without directly naming 667 00:32:17,280 --> 00:32:20,120 China, he basically said he was worried about a Chinese 668 00:32:20,120 --> 00:32:22,840 invasion. So that is a risk that exists 669 00:32:22,920 --> 00:32:26,280 with investing in TSM, but I believe that it's worth the 670 00:32:26,280 --> 00:32:28,240 risk. I believe that, first of all, 671 00:32:28,520 --> 00:32:31,120 TSM is becoming more globally diversified. 672 00:32:31,280 --> 00:32:32,960 They're opening up in more locations. 673 00:32:32,960 --> 00:32:35,480 They're geologically diversifying away from just 674 00:32:35,480 --> 00:32:37,320 Taiwan. But another thing that I believe 675 00:32:37,320 --> 00:32:39,760 is that Taiwan is critically important to the US. 676 00:32:40,040 --> 00:32:42,160 It's critically important to all of Europe. 677 00:32:42,560 --> 00:32:44,360 And I believe that China knows that. 678 00:32:44,640 --> 00:32:47,240 When we look at what China's basing its decisions on, they 679 00:32:47,240 --> 00:32:50,080 want to see the reaction of what would happen if they made 680 00:32:50,080 --> 00:32:52,000 certain decisions and if it's really worth it. 681 00:32:52,520 --> 00:32:55,360 And China would know that the US would be heavily involved. 682 00:32:55,360 --> 00:32:58,160 In fact, it would probably lead to a direct confrontation. 683 00:32:58,440 --> 00:33:01,320 If they decided to invade Taiwan, that would be something 684 00:33:01,320 --> 00:33:04,640 that the US would get directly involved in, and Europe likely 685 00:33:04,640 --> 00:33:07,920 as well because if China controlled direct manufacturing 686 00:33:07,920 --> 00:33:11,160 of the heist and chips, that's obviously a big problem for the 687 00:33:11,160 --> 00:33:13,920 rest of the West. So when I look at this, I think 688 00:33:13,920 --> 00:33:17,160 there is a risk, There's always a risk of geopolitical concerns 689 00:33:17,440 --> 00:33:21,400 with investing in a company that has its base, its headquarters 690 00:33:21,400 --> 00:33:24,320 so close to China. But I also believe the risk is 691 00:33:24,320 --> 00:33:27,160 worth it in this case. For me, this is a company that's 692 00:33:27,160 --> 00:33:31,960 being priced downwards at $325 per share when it should more 693 00:33:31,960 --> 00:33:35,560 appropriately trade at around $500 per share based on its 694 00:33:35,560 --> 00:33:37,760 quality and the fact that it's a monopoly. 695 00:33:37,920 --> 00:33:39,560 Now moving down the list, we have two more. 696 00:33:39,880 --> 00:33:43,120 One of them is called Synopsis. And like many of the companies 697 00:33:43,120 --> 00:33:45,920 that we've discussed, I've looked at these companies as the 698 00:33:45,920 --> 00:33:47,600 best in the world. These aren't your average 699 00:33:47,600 --> 00:33:49,240 companies. I told you they they weren't 700 00:33:49,240 --> 00:33:51,080 going to be your average companies when we first started 701 00:33:51,080 --> 00:33:53,520 this video. And as you can see, if we've 702 00:33:53,560 --> 00:33:56,040 followed along, these are not your average companies. 703 00:33:56,040 --> 00:33:57,480 These are literally the best in the world. 704 00:33:57,840 --> 00:34:00,160 And I believe that synopsis is no different. 705 00:34:00,400 --> 00:34:02,920 It very much belongs to be in this category. 706 00:34:02,920 --> 00:34:05,560 In the discussion, as I was looking through the whole 707 00:34:05,560 --> 00:34:08,600 semiconductor supply chain, all the different companies, there's 708 00:34:08,760 --> 00:34:11,480 thousands, 10s of thousands involved in this process. 709 00:34:11,760 --> 00:34:15,760 There are a handful that play critical roles that without 710 00:34:15,760 --> 00:34:18,480 them, everything else would break, and Synopsis is certainly 711 00:34:18,480 --> 00:34:20,000 one of them. Now, if you haven't heard of 712 00:34:20,000 --> 00:34:22,320 this company before, because I haven't talked about it on my 713 00:34:22,320 --> 00:34:26,199 channel up until now, Synopsis plays a more critical role in 714 00:34:26,199 --> 00:34:30,080 software than any other aspect. For example, whatever company 715 00:34:30,080 --> 00:34:32,960 you're talking about, at the very bottom of the the chain you 716 00:34:32,960 --> 00:34:36,960 have companies like Google, Amazon, NVIDIA, AMD. 717 00:34:37,239 --> 00:34:39,239 All these companies design chips, right? 718 00:34:39,239 --> 00:34:42,480 So they make their own designs and then they send them over to 719 00:34:42,480 --> 00:34:45,440 TSM to create. Well, before TSM can actually 720 00:34:45,440 --> 00:34:48,920 create these chips, the chips actually have to be drawn and 721 00:34:48,920 --> 00:34:50,719 they have to be. They have to have the software 722 00:34:50,719 --> 00:34:53,159 to actually make it so that you can take those designs and put 723 00:34:53,159 --> 00:34:57,240 it into a manufacturing process. The software to do that is 724 00:34:57,240 --> 00:34:59,880 Synopsis. It's their company supplying all 725 00:34:59,880 --> 00:35:02,440 the software. Now Synopsis over the past 10 726 00:35:02,440 --> 00:35:04,840 years has done a lot of deal making. 727 00:35:04,840 --> 00:35:07,080 They've done a lot of acquisitions to make it so that 728 00:35:07,080 --> 00:35:09,360 they're not just like a supplier of the software or playing a 729 00:35:09,360 --> 00:35:10,480 part of it. Now. 730 00:35:10,480 --> 00:35:14,000 They're like the entire operating software of the entire 731 00:35:14,160 --> 00:35:16,800 chip design process. Now, providing the software to 732 00:35:16,800 --> 00:35:21,080 make these chips and design them for the manufacturing process is 733 00:35:21,120 --> 00:35:23,960 obviously complex. I mean, it sounds complex, but 734 00:35:23,960 --> 00:35:26,880 it's about 1000 times more complex than you could possibly 735 00:35:26,880 --> 00:35:29,600 conceive. And the complexity is where the 736 00:35:29,600 --> 00:35:32,640 pricing power comes in. Remember that the companies that 737 00:35:32,640 --> 00:35:36,040 really have the biggest moats, the ones that really have 738 00:35:36,040 --> 00:35:39,360 dominant leads when it comes to physics and software, are 739 00:35:39,360 --> 00:35:41,920 complexity. The reason that FML has such a 740 00:35:41,920 --> 00:35:44,920 masterful Moat, the reason that it's one-of-a-kind, is because 741 00:35:44,920 --> 00:35:47,360 it's so complex with physics that nobody else can make it. 742 00:35:47,640 --> 00:35:50,200 The same thing for GE making these plane engines. 743 00:35:50,440 --> 00:35:52,400 There's only one or two companies that can actually do 744 00:35:52,400 --> 00:35:54,120 it. No other entrance for the next 745 00:35:54,120 --> 00:35:56,160 50 years. This company creates software 746 00:35:56,160 --> 00:35:59,760 that's so highly complex, so deeply embedded, it's taken so 747 00:35:59,760 --> 00:36:03,160 much time to get to where they are that nobody else wants to do 748 00:36:03,160 --> 00:36:05,240 this. Essentially no one else is 749 00:36:05,240 --> 00:36:07,920 willing to even compete with them because they just throw up 750 00:36:07,920 --> 00:36:09,920 their hands and they say that we don't have a chance. 751 00:36:09,920 --> 00:36:13,160 The Synopsis software, this essential software of taking 752 00:36:13,160 --> 00:36:15,840 these designs from Apple and NVIDIA, creating digital 753 00:36:15,840 --> 00:36:18,400 blueprints that can work within the physical reality of the 754 00:36:18,400 --> 00:36:22,560 manufacturing process is entirely unique to Synopsis and 755 00:36:22,560 --> 00:36:24,640 it's essential. And when they create these 756 00:36:24,640 --> 00:36:26,920 digital blueprints, they also IP them. 757 00:36:26,920 --> 00:36:30,040 So it becomes part of their their IP that they can kind of 758 00:36:30,040 --> 00:36:32,200 create royalties out of overtime as well. 759 00:36:32,440 --> 00:36:35,920 So they own an immense amount of blueprints and digital IP that 760 00:36:35,920 --> 00:36:39,040 they're still making money on of many chips that are being sold 761 00:36:39,080 --> 00:36:40,480 all throughout the world and created. 762 00:36:40,920 --> 00:36:44,280 So this is a business that is incredibly lucrative, has 763 00:36:44,280 --> 00:36:48,160 incredibly good fundamentals, has very little competition ever 764 00:36:48,160 --> 00:36:50,760 coming for in the future because it's so complex. 765 00:36:50,880 --> 00:36:52,800 They've recently done an acquisition that further 766 00:36:52,800 --> 00:36:56,560 entrenches their monopolistic position and we see very fast 767 00:36:56,560 --> 00:36:58,760 growth from them in the future. In fact, when we look at the 768 00:36:58,760 --> 00:37:02,720 revenue growth, it's a very fast growing company, 15% plus. 769 00:37:02,960 --> 00:37:05,320 You can see that over the next 10 years it's likely to grow 770 00:37:05,320 --> 00:37:07,680 further. One of the things that aids this 771 00:37:07,680 --> 00:37:10,320 company in the future is complexity. 772 00:37:10,680 --> 00:37:13,760 As the chip manufacturing process in the physics of it 773 00:37:14,000 --> 00:37:18,200 become exponentially more complex, not linearly, but 774 00:37:18,320 --> 00:37:21,120 exponentially more complex going down to nanometers. 775 00:37:21,400 --> 00:37:24,960 Atoms are the limit now, and Synopsis has to create software 776 00:37:24,960 --> 00:37:26,640 that that works around these limitations. 777 00:37:26,960 --> 00:37:30,440 So the software being created is exponentially more complex than 778 00:37:30,440 --> 00:37:32,960 it has ever been before. The chance of them being 779 00:37:32,960 --> 00:37:36,280 replaced or circumvented is incredibly difficult. 780 00:37:36,560 --> 00:37:38,600 So when you're buying this company, you are buying a 781 00:37:38,680 --> 00:37:42,240 certified monopolistic compounder, one that you can buy 782 00:37:42,240 --> 00:37:46,640 into overtime, hold it for 10 years, watch the valuation go up 783 00:37:46,640 --> 00:37:49,080 and down a little bit, and watch the ebbs and flows of the 784 00:37:49,080 --> 00:37:50,640 company. But you know you're going to 785 00:37:50,640 --> 00:37:53,000 have a company that's going to be around very strong in 10 786 00:37:53,000 --> 00:37:56,280 years and it will certainly be much bigger in 10 years. 787 00:37:56,360 --> 00:37:59,440 Now finally we get to the end stock here, one that I saved for 788 00:37:59,440 --> 00:38:01,400 the last, which is a personal holding of mine. 789 00:38:01,680 --> 00:38:05,400 Everyone will will know this. It's Netflix and I included on 790 00:38:05,400 --> 00:38:07,720 this list because I believe it's a company when you're looking at 791 00:38:07,720 --> 00:38:11,320 2026 that's traded down a bit, it's given you some room to buy 792 00:38:11,320 --> 00:38:13,280 into it. So we have right here that the 793 00:38:13,280 --> 00:38:17,360 stock went up to around 129. Now it's down to around $90.00 794 00:38:17,360 --> 00:38:19,480 per share. Many investors say I'm going to 795 00:38:19,480 --> 00:38:22,160 wait around for a dip on a high quality company and I believe 796 00:38:22,160 --> 00:38:25,280 this is an opportunity. Now when we look at Netflix, the 797 00:38:25,280 --> 00:38:28,360 bull case here, like everybody knows Netflix is a big company 798 00:38:28,360 --> 00:38:29,720 and they're the leader in streaming. 799 00:38:29,800 --> 00:38:32,680 But when I look at Netflix and the bull case of it, it's 800 00:38:32,680 --> 00:38:34,960 remained largely the same for the past three years. 801 00:38:35,240 --> 00:38:37,320 The bull case really hasn't changed that much. 802 00:38:37,440 --> 00:38:40,400 A couple years ago, I came to the strong conclusion that 803 00:38:40,400 --> 00:38:43,880 Netflix has reached escape velocity with its subscriber 804 00:38:43,880 --> 00:38:46,000 scale. The subscriber scale is just 805 00:38:46,000 --> 00:38:48,200 simply unmatched. They won the game. 806 00:38:48,440 --> 00:38:52,000 They are not only the leader leader in subscribers, but this 807 00:38:52,000 --> 00:38:55,240 gives them a unit economic advantage that no one else can 808 00:38:55,240 --> 00:38:58,400 possibly compete with. Just consider the actual 809 00:38:58,400 --> 00:39:01,760 economics of the situation. With Netflix having over 300 810 00:39:01,760 --> 00:39:04,280 million subscribers. We can compare that to the likes 811 00:39:04,280 --> 00:39:06,640 of a Paramount Plus. Let's just do A4 instance here. 812 00:39:07,320 --> 00:39:11,720 If each of these companies spent $1 billion on content, how much 813 00:39:11,720 --> 00:39:15,480 would that cost them to amortize that content spend across their 814 00:39:15,480 --> 00:39:19,560 subscriber base? For Netflix, every $1 billion 815 00:39:19,560 --> 00:39:23,640 they spend, they would spend $3.31 per sub. 816 00:39:23,720 --> 00:39:28,720 So as a Netflix subscriber, you're paying $3.31 for a 817 00:39:28,720 --> 00:39:30,200 billion dollars worth of content. 818 00:39:30,480 --> 00:39:35,680 If you're a Paramount Plus subscriber, you're paying $12.64 819 00:39:36,040 --> 00:39:39,480 for $1 billion worth of content because Paramount Plus doesn't 820 00:39:39,480 --> 00:39:42,120 have as many subscribers to amortize and spread their 821 00:39:42,120 --> 00:39:44,800 content costs across. So this gives the Netflix 822 00:39:44,800 --> 00:39:47,320 customer a vastly better value proposition. 823 00:39:47,520 --> 00:39:50,880 It gives Netflix unmatched unit economics which they can exploit 824 00:39:50,880 --> 00:39:53,480 to continue with their escape velocity. 825 00:39:53,480 --> 00:39:57,080 The unique dynamic with Netflix is the bigger the company gets, 826 00:39:57,320 --> 00:40:00,480 the more inevitable it gets that it will continue to get bigger. 827 00:40:00,800 --> 00:40:03,920 That is the flywheel in motion. Most companies when they get 828 00:40:03,920 --> 00:40:06,600 bigger, it becomes a guessing game of whether or not they can 829 00:40:06,600 --> 00:40:09,760 continue to grow again in this. Case, as they get bigger, it's 830 00:40:09,760 --> 00:40:11,560 more likely that they'll continue to grow. 831 00:40:12,000 --> 00:40:14,760 The price for content goes down, the value proposition goes up 832 00:40:14,760 --> 00:40:17,400 and makes other streamers services, by contrast, more 833 00:40:17,400 --> 00:40:19,600 expensive in relation to Netflix. 834 00:40:19,680 --> 00:40:22,520 So I hold a huge stake in this company already, but I continue 835 00:40:22,520 --> 00:40:25,760 to be excited about it in 2026. And I've actually recently 836 00:40:25,760 --> 00:40:28,280 bought more Netflix over just the past couple of months. 837 00:40:28,280 --> 00:40:30,360 These 10 companies are phenomenally strong. 838 00:40:30,400 --> 00:40:32,240 They're worth considering for any investor. 839 00:40:32,240 --> 00:40:34,280 I hope you enjoyed the little insight on these. 840 00:40:34,480 --> 00:40:37,360 If you want to see more content, exclusive episodes, deeper dives 841 00:40:37,360 --> 00:40:40,200 into these companies, as well as get access to qualtrim.com, 842 00:40:40,200 --> 00:40:43,200 which is software specifically created for long term, 843 00:40:43,280 --> 00:40:46,120 fundamentally driven value investors, make sure to join our 844 00:40:46,120 --> 00:40:49,240 community here at qualtrim.com. That's all for this one. 845 00:40:49,480 --> 00:40:50,200 See you in the next one.