1 00:00:00,000 --> 00:00:03,500 everyone would love to have a monster dividend portfolio, one 2 00:00:03,500 --> 00:00:06,700 that spits out huge dividends day after day thousands and 3 00:00:06,700 --> 00:00:10,200 thousands of dollars a portfolio of businesses that produces so 4 00:00:10,200 --> 00:00:14,200 much income every single week, every month that you can live 5 00:00:14,200 --> 00:00:17,800 off of it, it completely subsidizes and replaces your 6 00:00:17,800 --> 00:00:21,100 active income dividends after all our passive income, it's 7 00:00:21,100 --> 00:00:24,000 money that you make without having to lift a finger, you 8 00:00:24,000 --> 00:00:27,200 have to do the initial upfront work, you have to buy the 9 00:00:27,200 --> 00:00:31,100 investment, but once you've done that yourself, Set you earn 10 00:00:31,100 --> 00:00:34,300 passive income via dividend. This is not only what my entire 11 00:00:34,300 --> 00:00:38,000 portfolio centered around, but it's also my ultimate goal to 12 00:00:38,000 --> 00:00:42,000 get to the point where I'm no longer reliant on active work. 13 00:00:42,200 --> 00:00:45,200 We're working is an opportunity. It's a choice. 14 00:00:45,500 --> 00:00:48,500 It's not a requirement. That is the goal of passive 15 00:00:48,500 --> 00:00:50,000 income. Now, I've been building this 16 00:00:50,000 --> 00:00:52,600 portfolio publicly for some time. 17 00:00:52,600 --> 00:00:55,700 I do it under public scrutiny, you can see the changes that I 18 00:00:55,700 --> 00:00:57,400 make. You can see the buys that I do 19 00:00:57,400 --> 00:01:00,600 and you can see the cells that I make, but in this episode So I'd 20 00:01:00,600 --> 00:01:03,300 like to do something a bit different than show you just the 21 00:01:03,300 --> 00:01:05,000 most recent trades. I'm making. 22 00:01:05,400 --> 00:01:09,300 I'd rather show you the lessons that I've learned in building a 23 00:01:09,300 --> 00:01:12,700 monster dividend portfolio over the past four years. 24 00:01:12,800 --> 00:01:15,200 I want to go over what I think. Are the biggest mistakes that 25 00:01:15,200 --> 00:01:17,800 divot investors are making what I think are the biggest things 26 00:01:17,800 --> 00:01:21,000 they should be focusing on and how I believe investors today 27 00:01:21,000 --> 00:01:23,600 can get to their goals as fast as possible. 28 00:01:23,700 --> 00:01:24,900 So this is going to be a good one. 29 00:01:24,900 --> 00:01:28,000 We're going to be going over five years of investing and 30 00:01:28,000 --> 00:01:31,000 summarizing my best lessons. In this episode. 31 00:01:31,000 --> 00:01:33,100 Now of course we have some other news to get to as well. 32 00:01:33,200 --> 00:01:37,400 Mark Zuckerberg is on the Move meta has released their initial 33 00:01:37,400 --> 00:01:41,300 plans to compete with Twitter. So metas doing what they do 34 00:01:41,300 --> 00:01:44,200 historically which is copy, other social media competitors. 35 00:01:44,500 --> 00:01:46,400 And they do this very effectively. 36 00:01:46,600 --> 00:01:50,200 I'll be giving you my opinion on this Twitter copycat and on the 37 00:01:50,200 --> 00:01:52,900 subject of meta. And Mark Zuckerberg, we get a 38 00:01:52,908 --> 00:01:56,100 see in detail. What Mark Zuckerberg, initial 39 00:01:56,100 --> 00:01:59,800 response was of the Vision Pro. I have a lot of thoughts. 40 00:02:00,100 --> 00:02:02,700 So we'll be going into this as well, and then it's Friday, the 41 00:02:02,700 --> 00:02:06,500 day where we turn to tick, tock to get the best tips on finance 42 00:02:06,500 --> 00:02:09,900 and investing. And this tip is specifically on 43 00:02:09,900 --> 00:02:12,900 house hacking. This is the all-time best house 44 00:02:12,900 --> 00:02:15,500 hacking hack ever. So, we'll be looking at this and 45 00:02:15,508 --> 00:02:18,300 I'll be giving my reaction here at the end of this episode. 46 00:02:18,400 --> 00:02:20,900 So, as always, if you like this type of content, if you like the 47 00:02:20,900 --> 00:02:23,200 transparency, we have hair. Make sure to thumbs up the 48 00:02:23,200 --> 00:02:24,700 video. Subscribe to the channel. 49 00:02:24,800 --> 00:02:26,900 Now, let's go ahead and Jump Right In first of all, we'll 50 00:02:26,900 --> 00:02:29,700 start off with building a monster dividend portfolio. 51 00:02:29,900 --> 00:02:33,200 This is something that I've been trying to work on for 5 years 52 00:02:33,200 --> 00:02:35,600 now. I've been focusing my portfolio 53 00:02:35,900 --> 00:02:38,900 around building up, passive income that's Remain the 54 00:02:38,900 --> 00:02:42,500 ultimate end goal of this portfolio and while doing that 55 00:02:42,500 --> 00:02:45,000 over the past five years and having the opportunity to run a 56 00:02:45,000 --> 00:02:48,300 YouTube channel and spending an incredible amount of time 57 00:02:48,300 --> 00:02:51,600 studying investing, I've been able to see a lot of things that 58 00:02:51,600 --> 00:02:54,800 work at a lot of things that don't work when trying to do 59 00:02:54,800 --> 00:02:57,000 this. So what I hope to do is is 60 00:02:57,000 --> 00:02:59,700 basically share everything that I've learned along the way. 61 00:03:00,000 --> 00:03:03,300 I want to start off with the basics when we're building a 62 00:03:03,300 --> 00:03:07,200 monster dividend portfolio. There's three basic ways that 63 00:03:07,200 --> 00:03:09,800 this works, three basic ways, that it compounds. 64 00:03:10,000 --> 00:03:12,400 And I've gone over this in previous video so I'll just go 65 00:03:12,400 --> 00:03:14,100 over it. Briefly, first of all, we buy 66 00:03:14,100 --> 00:03:15,500 into companies that pay a dividend. 67 00:03:15,600 --> 00:03:19,000 This is the first way that we grow a dividend portfolio and 68 00:03:19,000 --> 00:03:23,100 along with number one here, I would say that an important step 69 00:03:23,400 --> 00:03:26,000 is having a consistent income to begin with. 70 00:03:26,200 --> 00:03:30,400 You can't leap over to passive income without having Having an 71 00:03:30,400 --> 00:03:32,600 active income. So you need to have a stable 72 00:03:32,600 --> 00:03:34,500 job. You need to have a stable income 73 00:03:34,500 --> 00:03:36,400 and you need to have your budgeting down. 74 00:03:36,600 --> 00:03:40,200 So you have money every single week to add to your portfolio. 75 00:03:40,500 --> 00:03:43,300 But once you have that money, you need to start putting it to 76 00:03:43,300 --> 00:03:48,000 work and put it to work as soon. And as frequent as you can step, 77 00:03:48,000 --> 00:03:51,200 one by companies that pay a dividend that pays you the 78 00:03:51,200 --> 00:03:54,200 initial dividend yield. The initial dividend yield is 79 00:03:54,200 --> 00:03:57,700 what gets the ball rolling. You have money flowing into your 80 00:03:57,700 --> 00:04:00,700 account. For example, in this Folio I've 81 00:04:00,700 --> 00:04:03,800 earned a total of twenty one thousand five hundred and 82 00:04:03,800 --> 00:04:05,200 ninety-four. Dollars in dividends. 83 00:04:05,300 --> 00:04:07,400 These have been growing the entire time that I've been 84 00:04:07,400 --> 00:04:10,200 investing. This number always goes up, it 85 00:04:10,200 --> 00:04:12,700 never goes down. Companies are always paying me? 86 00:04:12,700 --> 00:04:15,000 Dividends step two is pretty basic. 87 00:04:15,000 --> 00:04:18,100 We reinvest the dividend once a company pays you out. 88 00:04:18,100 --> 00:04:20,800 Cash flow. Use it to buy other companies 89 00:04:20,800 --> 00:04:23,500 that you consider to be high return opportunities. 90 00:04:23,800 --> 00:04:26,900 So as you have money, flowing in every single week, and every 91 00:04:26,900 --> 00:04:29,800 month in dividend payments, look through your portfolio. 92 00:04:29,900 --> 00:04:33,100 Oh and see which ones are offering the best opportunity at 93 00:04:33,100 --> 00:04:35,500 a given time. My way of doing this is I use 94 00:04:35,500 --> 00:04:38,400 something called the dip finder. It's a tool that I've built. 95 00:04:38,500 --> 00:04:41,200 We're basically just shows which companies are in a dip at a 96 00:04:41,207 --> 00:04:43,400 given time. I can select different time. 97 00:04:43,400 --> 00:04:46,700 Metrics are like last month, and I can see which companies are 98 00:04:46,700 --> 00:04:49,600 doing really well, and which companies are struggling a bit. 99 00:04:49,800 --> 00:04:51,500 These are all of my core Holdings. 100 00:04:51,800 --> 00:04:54,900 So, when I select, the last month, I can see right here that 101 00:04:54,900 --> 00:04:58,700 Canadian Pacific, MasterCard and Vici are in the red. 102 00:04:58,700 --> 00:05:02,500 They've gone down over The past 30 days, SP Global on the other 103 00:05:02,500 --> 00:05:04,300 hand has gone on a pretty good run. 104 00:05:04,600 --> 00:05:08,100 Microsoft is doing great, apples doing great Costco's doing good, 105 00:05:08,200 --> 00:05:11,400 Texas Roadhouse is doing good. So, these companies that are up 106 00:05:11,400 --> 00:05:14,500 a lot over the past 30 days, I'm going to avoid. 107 00:05:14,700 --> 00:05:17,900 I'll just let them continue to run and then I'll buy the 108 00:05:17,900 --> 00:05:20,300 companies that I think are really good that have gone down 109 00:05:20,300 --> 00:05:23,900 in value and guess what? Just a couple days ago, I bought 110 00:05:23,900 --> 00:05:26,200 more VG. I bought more because it's 111 00:05:26,200 --> 00:05:28,700 trading down and I think it offers Great Value. 112 00:05:28,800 --> 00:05:31,500 This is me following know, Prior to taking the dividends that I'm 113 00:05:31,500 --> 00:05:33,800 paid. And reinvesting it into the best 114 00:05:33,800 --> 00:05:37,000 high return opportunity. Then we have number three. 115 00:05:37,400 --> 00:05:40,100 The company growing the dividend over time. 116 00:05:40,100 --> 00:05:43,200 So this changes the criteria in which we choose companies to 117 00:05:43,200 --> 00:05:46,000 invest in, we don't only want companies that pay a dividend. 118 00:05:46,100 --> 00:05:50,200 We want companies that pay a growing dividend and by growing, 119 00:05:50,200 --> 00:05:53,200 I mean growing beyond the rate of inflation, we can take a 120 00:05:53,207 --> 00:05:55,200 Verizon as a counter example here. 121 00:05:55,400 --> 00:05:58,800 This company does pay a dividend and the dividend is technically 122 00:05:58,800 --> 00:06:00,600 growing. It's been Rolling by two point 123 00:06:00,600 --> 00:06:03,500 three, nine percent. But unfortunately inflation has 124 00:06:03,500 --> 00:06:05,600 been above two point three, nine percent. 125 00:06:05,600 --> 00:06:07,800 Even if we were really charitable and said that 126 00:06:07,800 --> 00:06:11,600 inflation was only two percent, this dividend is flat, it's 127 00:06:11,600 --> 00:06:15,000 really not growing at all. The dividend payment adjusted 128 00:06:15,000 --> 00:06:18,900 for inflation is the exact same today than it was a decade ago. 129 00:06:18,900 --> 00:06:22,000 So while Verizon pays a dividend it does not pay a growing 130 00:06:22,000 --> 00:06:24,100 dividend. On the other hand, every single 131 00:06:24,100 --> 00:06:28,100 company within my portfolio, every one of them, pays not only 132 00:06:28,100 --> 00:06:30,400 a steady dividend, they pay a a growing dividend. 133 00:06:30,400 --> 00:06:34,000 I can take spe Global. For example, SP Global pays a 134 00:06:34,000 --> 00:06:36,100 consistent growing dividend and it has done. 135 00:06:36,100 --> 00:06:39,000 So for years and the dividend is growing far above the rate of 136 00:06:39,000 --> 00:06:41,700 inflation at 12%. MasterCard pays a very 137 00:06:41,700 --> 00:06:45,400 consistent dividend and it's growing at a very rapid rate 25% 138 00:06:45,400 --> 00:06:47,400 per year. And like I said, this is the 139 00:06:47,407 --> 00:06:51,000 same for every company into it Apple, Microsoft Vici, Texas, 140 00:06:51,000 --> 00:06:53,000 Roadhouse, Costco, so on and so forth. 141 00:06:53,000 --> 00:06:56,600 All of them pay consistent and growing dividends and that step 142 00:06:56,600 --> 00:06:59,800 3 and these are the three basic steps of building a monster. 143 00:06:59,900 --> 00:07:02,400 Dividend portfolio. You buy companies that pay a 144 00:07:02,400 --> 00:07:05,500 dividend, you reinvest that money from the dividends back 145 00:07:05,500 --> 00:07:07,900 into companies that pay dividends and it grows your 146 00:07:07,900 --> 00:07:10,400 dividend income. And then importantly, you try to 147 00:07:10,400 --> 00:07:13,900 focus on companies that not only pay a consistent dividend, but 148 00:07:13,900 --> 00:07:17,200 they pay a growing dividend far above the rate of inflation. 149 00:07:17,600 --> 00:07:20,500 All of these three together are really powerful. 150 00:07:20,600 --> 00:07:23,700 The compounding effect they have is almost magical. 151 00:07:24,100 --> 00:07:27,400 In fact I'm reading this book that's an in-depth study on 152 00:07:27,400 --> 00:07:29,400 Buffett's life called the snowball. 153 00:07:29,800 --> 00:07:32,700 And it extensively goes through his entire history. 154 00:07:33,000 --> 00:07:35,300 And one of the things that points out is that he's 155 00:07:35,300 --> 00:07:38,700 basically a dividend growth investor throughout his entire 156 00:07:38,700 --> 00:07:42,400 life, especially his early life, he was always accumulating 157 00:07:42,400 --> 00:07:47,100 stakes in companies that paid him excess cash flow Buffett, 158 00:07:47,100 --> 00:07:51,600 use that excess cash flow to buy more companies that paid growing 159 00:07:51,600 --> 00:07:55,300 amounts of excess cash flow. That is literally the snowball. 160 00:07:55,300 --> 00:07:57,200 It's Buffett's investing strategy. 161 00:07:57,400 --> 00:08:00,800 The reason that Berkshire doesn't pay a And is because 162 00:08:00,800 --> 00:08:04,400 Buffett is playing the role of the investor reinvesting. 163 00:08:04,400 --> 00:08:08,300 The cash flows but otherwise he's running the company in the 164 00:08:08,308 --> 00:08:10,800 exact same way as a dividend growth investor. 165 00:08:10,800 --> 00:08:14,800 Buying good companies that pay excess cash reinvesting that 166 00:08:14,808 --> 00:08:18,200 cash to buy more companies and focusing on companies that can 167 00:08:18,200 --> 00:08:20,600 really grow that cash pile over time. 168 00:08:20,600 --> 00:08:24,600 The magical effect of this is a strong compounding Snowball 169 00:08:24,600 --> 00:08:26,300 Effect. Now that seems simple enough, 170 00:08:26,300 --> 00:08:29,800 but even given those instructions, what I notice is 171 00:08:29,800 --> 00:08:33,400 Is a lot of dividend investors. Make some very critical errors 172 00:08:33,400 --> 00:08:36,299 and that's where I want to go over where dividend investors 173 00:08:36,299 --> 00:08:38,400 are failing where they're falling short. 174 00:08:38,700 --> 00:08:41,900 And when I give these critiques a lot of these criticisms are 175 00:08:41,900 --> 00:08:46,100 basically criticizing myself. Five years ago, I was making a 176 00:08:46,100 --> 00:08:49,600 lot of these same mistakes that I've since corrected. 177 00:08:49,700 --> 00:08:51,100 So let me go ahead and go through them. 178 00:08:51,600 --> 00:08:54,000 The first thing that I'd say that dividend investors make a 179 00:08:54,000 --> 00:08:57,100 mistake on is the focus on starting yield. 180 00:08:57,300 --> 00:08:59,700 The starting yield is what the company's yield is. 181 00:08:59,900 --> 00:09:03,700 Right now, today, that is the main focus of a lot of dividend 182 00:09:03,700 --> 00:09:06,100 investors. They seek companies that will 183 00:09:06,100 --> 00:09:09,700 instantly give them a high starting yield, and a lot of 184 00:09:09,708 --> 00:09:12,600 companies have a high starting yield are not the best 185 00:09:12,600 --> 00:09:14,500 companies. We can look at a lot of 186 00:09:14,500 --> 00:09:17,000 different examples here, we can look at Verizon again. 187 00:09:17,000 --> 00:09:20,100 As an example of this, this is a company that Learners investors 188 00:09:20,100 --> 00:09:24,200 in with a very high, starting dividend yield, a yield of 7.3 189 00:09:24,200 --> 00:09:26,200 one percent. So you may look at this and 190 00:09:26,200 --> 00:09:31,200 think, wow, I buy $100 of this and I get 7 Dollars and 31 cents 191 00:09:31,200 --> 00:09:34,300 back every single year. That's pretty good. 192 00:09:34,300 --> 00:09:38,200 That's a much higher yield than then a company like MasterCard. 193 00:09:38,400 --> 00:09:41,000 So Verizon is the better bet. I'm getting more cash flow 194 00:09:41,000 --> 00:09:44,300 through owning this company the temptation to buy into companies 195 00:09:44,300 --> 00:09:47,500 with these very Hefty starting yields, without looking at the 196 00:09:47,500 --> 00:09:51,200 fundamental drivers of the company leads to lots of under 197 00:09:51,200 --> 00:09:54,300 performance. Verizon has been a horrible 198 00:09:54,300 --> 00:09:58,700 company to own going down, 28 percent over the past five years 199 00:09:59,000 --> 00:10:02,300 in the past. Ten years, even with dividends 200 00:10:02,300 --> 00:10:05,200 this companies, basically given no returns. 201 00:10:05,600 --> 00:10:08,300 So that's seven percent juicy starting yield. 202 00:10:08,300 --> 00:10:12,000 You're getting has given you absolutely no returns over the 203 00:10:12,000 --> 00:10:15,400 past 10 years as the rest of the market has raised up. 204 00:10:15,500 --> 00:10:18,100 And why is that well for one, Verizon really hasn't grown 205 00:10:18,100 --> 00:10:20,000 Revenue that much in the past. 10 years. 206 00:10:20,200 --> 00:10:23,300 The cash flows look very similar over the past 20 years. 207 00:10:23,400 --> 00:10:25,600 They've been diluting shareholders as well to finance 208 00:10:25,600 --> 00:10:28,900 their operations and they have a breathtaking amount of debt. 209 00:10:28,900 --> 00:10:31,900 The amount of debt is Is literally over 100 billion 210 00:10:31,900 --> 00:10:34,000 dollars. So this giant Telecom company, 211 00:10:34,000 --> 00:10:37,100 that's luring investors in is really nothing more than a value 212 00:10:37,100 --> 00:10:39,700 trap. The company has caught investors 213 00:10:39,900 --> 00:10:43,500 and kept them there in a company that's producing zero returns 214 00:10:43,500 --> 00:10:46,600 over extended periods of time. And this isn't the only one to 215 00:10:46,600 --> 00:10:49,000 do this. We have Investments like AT&T, 216 00:10:49,200 --> 00:10:51,000 this is one investment that I was in. 217 00:10:51,000 --> 00:10:54,900 I barely eked out a return on this company by simply luckily 218 00:10:54,900 --> 00:10:58,700 timing the buy and sell of it. But overall 18, he was not an 219 00:10:58,700 --> 00:11:02,000 attractive investment. What really lured me into AT&T 220 00:11:02,000 --> 00:11:05,200 was the same thing that lured. Many other investors into this 221 00:11:05,200 --> 00:11:07,600 company. The starting dividend yield of 222 00:11:07,600 --> 00:11:12,300 nearly seven percent the high very high starting yield that 223 00:11:12,300 --> 00:11:15,700 was so it's just so tempting to buy into companies where you 224 00:11:15,700 --> 00:11:18,700 think you're going to get paid back that much every single 225 00:11:18,700 --> 00:11:22,200 year, what it really turns out to be where you're waiting 226 00:11:22,200 --> 00:11:25,400 around hoping that the company will at least maintain its value 227 00:11:25,600 --> 00:11:29,600 while it pays out this cash flow and the case of Verizon and AT&T 228 00:11:29,700 --> 00:11:32,800 AT&T the company's fundamentals are very poor. 229 00:11:32,800 --> 00:11:36,400 The competitive Dynamics are very poor, the profitability, 230 00:11:36,400 --> 00:11:39,600 the balance sheet are very poor, and the Investments, as a 231 00:11:39,608 --> 00:11:44,400 result, stumble AT&T is down 41 percent over the past decade. 232 00:11:44,400 --> 00:11:47,400 And they recently just slash their dividend to half of what 233 00:11:47,400 --> 00:11:48,800 it used to be. Making it. 234 00:11:48,800 --> 00:11:51,400 So that even the people that were in this company, for the 235 00:11:51,400 --> 00:11:54,200 dividend are not getting their payday anymore. 236 00:11:54,200 --> 00:11:57,400 So the number one mistake here is crucial to avoid for every 237 00:11:57,400 --> 00:12:01,600 investor don't focus on. The starting yield if your major 238 00:12:01,600 --> 00:12:04,900 focus is finding companies with high starting yields, most of 239 00:12:04,900 --> 00:12:08,600 those companies are Pathways their roads down to companies 240 00:12:08,600 --> 00:12:13,100 that are many cases value traps. In fact, I would argue that the 241 00:12:13,100 --> 00:12:16,500 higher the starting yield, the more likely the company is to 242 00:12:16,500 --> 00:12:19,200 become a value trap. It's not the case in every 243 00:12:19,200 --> 00:12:21,500 company. Some companies do have that 244 00:12:21,500 --> 00:12:24,500 magical mix of a high starting yield while still being an 245 00:12:24,500 --> 00:12:28,200 attractive Growth Company. But in most cases, High starting 246 00:12:28,200 --> 00:12:29,900 yields mean value trap. Soooo. 247 00:12:30,000 --> 00:12:32,600 Ironically, one of the things that I get criticized the most 248 00:12:32,600 --> 00:12:36,400 on my channel is that I'm a dividend investor that focuses, 249 00:12:36,400 --> 00:12:39,500 too much on companies with low. Starting yields, I recently 250 00:12:39,500 --> 00:12:43,700 bought into SP Global, SP Global only has a point. 95 percent 251 00:12:43,700 --> 00:12:47,900 starting yield, very low, this isn't any AT&T or Verizon? 252 00:12:47,900 --> 00:12:51,600 I also bought into Master card. MasterCard, has even a lower 253 00:12:51,600 --> 00:12:55,400 starting yield Point 61 percent. No, not all companies that I buy 254 00:12:55,400 --> 00:12:57,200 have very low. Starting yields, some of them 255 00:12:57,200 --> 00:12:59,300 are a bit higher in the restaurant category. 256 00:12:59,800 --> 00:13:02,300 Roadhouse was a company that I bought the at the time, I was 257 00:13:02,300 --> 00:13:05,400 buying, it had a two point, five percent starting dividend yield. 258 00:13:05,400 --> 00:13:09,300 This one has a decent yield but it's still no Verizon or AT&T 259 00:13:09,300 --> 00:13:12,200 but either way a lot of my companies have a lower starting 260 00:13:12,200 --> 00:13:15,600 yields than most dividend investors and this is done 261 00:13:15,600 --> 00:13:18,200 intentionally. The companies that I'm focusing 262 00:13:18,200 --> 00:13:22,400 on are not value traps, they're not companies that have flat 263 00:13:22,400 --> 00:13:26,200 risky or low growth dividends they are companies that have the 264 00:13:26,200 --> 00:13:29,900 economic capability to grow their dividends at very Rapid 265 00:13:29,900 --> 00:13:32,200 rates. While Texas, Roadhouse only has 266 00:13:32,200 --> 00:13:34,800 a starting dividend. Yield of 2%, that's nowhere. 267 00:13:34,800 --> 00:13:38,700 Close to Verizon or AT&T. It has something different than 268 00:13:38,700 --> 00:13:41,300 Verizon or AT&T the dividends growing. 269 00:13:41,400 --> 00:13:45,500 And it's growing at a very, very fast rate back in. 2011, the 270 00:13:45,500 --> 00:13:49,100 dividend was only eight pennies per share, eight cents per 271 00:13:49,100 --> 00:13:50,600 share. And then, the most recent 272 00:13:50,600 --> 00:13:55,700 dividend, 10 years later is 55 cents per share, it's compounded 273 00:13:55,800 --> 00:13:59,600 at an annualized rate of 16.4% per year. 274 00:14:00,300 --> 00:14:04,100 So the dividends for five times bigger than it was a decade ago, 275 00:14:04,300 --> 00:14:07,400 four or five times bigger. That means that the investors 276 00:14:07,400 --> 00:14:11,700 that bought 10 years ago. Now have a yield on cost of over 277 00:14:11,700 --> 00:14:15,200 eight percent higher than the Verizon or AT&T dividend. 278 00:14:15,300 --> 00:14:17,900 And while they've had that incredible dividend growth four 279 00:14:17,900 --> 00:14:21,000 or five Xing their dividend payment, they've also had 280 00:14:21,000 --> 00:14:26,500 massive capital appreciation 347 percent so investors in Texas 281 00:14:26,500 --> 00:14:29,300 Roadhouse are sitting much more pretty than the investors and 282 00:14:29,700 --> 00:14:33,700 Xander AT&T the ones that were suckered in to the high starting 283 00:14:33,700 --> 00:14:36,600 yields have flat dividend payments or ones that are being 284 00:14:36,600 --> 00:14:39,500 cut companies that haven't made any gains. 285 00:14:39,500 --> 00:14:42,500 And they overall have total returns that are negative. 286 00:14:42,700 --> 00:14:45,600 The investors it instead focused on companies that can grow their 287 00:14:45,600 --> 00:14:47,600 dividend. Payment have a dividend payment, 288 00:14:47,600 --> 00:14:51,100 that's four or five times what it was 10 years ago and gains 289 00:14:51,100 --> 00:14:54,000 and capital appreciation that are 350%. 290 00:14:54,000 --> 00:14:57,800 The evidence routinely favors companies that focus on dividend 291 00:14:57,800 --> 00:14:59,600 growth, not companies that Focus. 292 00:14:59,700 --> 00:15:02,700 Sun-hi starting yields, we can take MasterCard as another 293 00:15:02,700 --> 00:15:04,700 example. This is one that a lot of 294 00:15:04,700 --> 00:15:07,600 dividend investors will criticized for having a very low 295 00:15:07,600 --> 00:15:12,800 starting yield only Point 61 percent, it seems insignificant 296 00:15:12,800 --> 00:15:15,000 at first look. But when you consider the actual 297 00:15:15,000 --> 00:15:17,500 growth of the dividend over time, it puts things into 298 00:15:17,500 --> 00:15:21,300 context back in 2011. The dividend payment was two 299 00:15:21,300 --> 00:15:24,800 pennies per share over the past five years, like, Texas 300 00:15:24,800 --> 00:15:26,100 Roadhouse. They've been growing the 301 00:15:26,100 --> 00:15:30,300 dividend at around 18 percent per year when you Compound. 302 00:15:30,300 --> 00:15:34,500 Something even at a low starting base at 20% per year. 303 00:15:34,800 --> 00:15:38,300 The growth is astronomical. That compounding turns a very 304 00:15:38,300 --> 00:15:40,900 low, starting yield into a very high dividend payment. 305 00:15:40,900 --> 00:15:44,300 In a short amount of time going from two pennies to half a 306 00:15:44,308 --> 00:15:47,200 dollar in 10 years. What this reminds me of is the 307 00:15:47,200 --> 00:15:50,600 experiments with Children of delayed gratification whether 308 00:15:50,600 --> 00:15:54,200 they can wait a minute to get a marshmallow or two marshmallows, 309 00:15:54,200 --> 00:15:56,700 a couple minutes later, the kids that were willing to delay 310 00:15:56,700 --> 00:15:59,400 gratification a little bit longer had overall better. 311 00:15:59,700 --> 00:16:01,700 Burns. I think as investors we get 312 00:16:01,700 --> 00:16:04,500 tested in the same way, are you really needing that high 313 00:16:04,500 --> 00:16:07,800 starting yield right now today? Or can you delay that 314 00:16:07,800 --> 00:16:10,800 gratification a little bit invest in, very good companies, 315 00:16:10,800 --> 00:16:13,500 will 5x your dividend payment, over the next 10 years. 316 00:16:13,700 --> 00:16:17,000 Give you capital appreciation and a boosted amount of income 317 00:16:17,000 --> 00:16:19,000 at the same time the way Ted judge. 318 00:16:19,000 --> 00:16:22,100 If a company is able to pay you a growing dividend over. 319 00:16:22,100 --> 00:16:25,200 The next decade is all about the financials of the company. 320 00:16:25,300 --> 00:16:28,500 If you use qual trim.com as an example, to look at a company, 321 00:16:28,700 --> 00:16:31,600 we have Texas here, Road House. How do I judge of Texas 322 00:16:31,600 --> 00:16:34,100 Roadhouse can pay me a growing dividend over time? 323 00:16:34,400 --> 00:16:35,900 Well, there's a couple important things I can. 324 00:16:35,900 --> 00:16:39,400 Look at first of all, is the growth profile of the company. 325 00:16:39,700 --> 00:16:42,500 We look at the revenue. Growth is the revenue growing on 326 00:16:42,500 --> 00:16:45,300 a consistent basis above the rate of inflation. 327 00:16:45,500 --> 00:16:49,200 In the case of Texas Roadhouse, that is a yes and it's growing 328 00:16:49,200 --> 00:16:51,700 organically not through Acquisitions. 329 00:16:52,000 --> 00:16:55,700 So it's growing every single year year over year at twelve 330 00:16:55,700 --> 00:16:59,500 point five six percent without doing major acquisitions. 331 00:16:59,700 --> 00:17:01,400 Next thing that we look at is the free cash flow. 332 00:17:01,400 --> 00:17:04,500 Growth of the company in the case of Texas Roadhouse, is this 333 00:17:04,500 --> 00:17:06,700 growing on a semi consistent basis? 334 00:17:07,000 --> 00:17:09,200 Yes, it is. In fact, it's growing at a very 335 00:17:09,200 --> 00:17:13,400 fast speed 15 percent over the past 10 years, the cash flows 336 00:17:13,599 --> 00:17:16,099 are the initial thing. The company has to pay the 337 00:17:16,099 --> 00:17:18,000 dividend. So if the free cash flow is not 338 00:17:18,000 --> 00:17:21,300 growing and the dividend is growing, that just means that 339 00:17:21,300 --> 00:17:23,900 the company's paying you a higher percentage of their free 340 00:17:23,900 --> 00:17:27,400 cash flow and eventually, they cannot maintain that they'll 341 00:17:27,400 --> 00:17:29,500 have to cut it like they did with it. 342 00:17:29,600 --> 00:17:32,900 Until wild Texas Roadhouse is growing the free cash flow over 343 00:17:32,900 --> 00:17:36,100 time leading to a fast. Growing dividend companies like 344 00:17:36,100 --> 00:17:38,400 Intel had cash flows that were shrinking. 345 00:17:38,400 --> 00:17:40,300 They were flat for a long period of time. 346 00:17:40,300 --> 00:17:43,900 Then they went down and so did the dividend the dividend 347 00:17:43,900 --> 00:17:46,700 follows the cash flows. If the cash flows grow very 348 00:17:46,700 --> 00:17:48,400 fast, the dividend will grow fast. 349 00:17:48,400 --> 00:17:51,300 If the cash flows shrink, the dividend will shrink. 350 00:17:51,300 --> 00:17:54,100 So back to Texas Roadhouse. We look at the cash flows. 351 00:17:54,100 --> 00:17:55,800 We look at the net income growth. 352 00:17:55,800 --> 00:17:57,300 We look at the earnings per share growth. 353 00:17:57,300 --> 00:18:01,000 This is a good growth profile. It gives me confidence that this 354 00:18:01,000 --> 00:18:05,300 company has a long history. They have the recipe of growth, 355 00:18:05,300 --> 00:18:08,300 the management has been able to do this on a consistent basis 356 00:18:08,600 --> 00:18:11,800 and aside from a lot of things, you hair past results in 357 00:18:11,800 --> 00:18:15,000 specific, companies is oftentimes indicated of of 358 00:18:15,000 --> 00:18:17,500 future results, especially if the same situation and 359 00:18:17,500 --> 00:18:20,100 environment exists. Nothing has really changed 360 00:18:20,100 --> 00:18:22,700 competitively in terms of Texas Roadhouse. 361 00:18:22,800 --> 00:18:25,300 So I expect similar levels of growth in the future. 362 00:18:25,500 --> 00:18:29,400 And then finally, the balance sheet is a huge indicator of a 363 00:18:29,400 --> 00:18:31,200 country's. Company's ability to pay future 364 00:18:31,200 --> 00:18:33,700 dividends. In the case of Texas Roadhouse, 365 00:18:34,100 --> 00:18:36,300 we can take a look at their cash and debt. 366 00:18:36,500 --> 00:18:38,700 They have more cash than debt right now. 367 00:18:39,000 --> 00:18:42,300 In fact, last quarter, Texas Roadhouse paid off the remainder 368 00:18:42,300 --> 00:18:46,000 of all of their long-term debt. So they have zero long-term 369 00:18:46,000 --> 00:18:47,500 debt. The only thing they have in 370 00:18:47,500 --> 00:18:50,500 terms of liabilities is their Capital leases which are 371 00:18:50,500 --> 00:18:53,800 basically rental payments on their restaurants, but this is 372 00:18:53,800 --> 00:18:57,000 it, they have a lot of cash, they have no long-term debt 373 00:18:57,000 --> 00:19:00,900 which gives them an incredible amount of The in their Capital 374 00:19:00,900 --> 00:19:04,000 allocation so not only do I have incredible confidence that this 375 00:19:04,000 --> 00:19:05,800 company can continue to pay a dividend. 376 00:19:06,000 --> 00:19:08,900 I have lots of confidence that they can grow at a continually 377 00:19:08,900 --> 00:19:12,200 attractive rate and this all comes down to the financials and 378 00:19:12,200 --> 00:19:15,800 economics of a company invest in companies that are paying a 379 00:19:15,808 --> 00:19:19,200 dividend that have growing revenues cash flows, net income 380 00:19:19,300 --> 00:19:22,500 earnings per share companies that have declining share count 381 00:19:22,600 --> 00:19:25,100 and strong balance sheets. Those are ones that will be able 382 00:19:25,100 --> 00:19:27,600 to continually pay growing dividends in the future. 383 00:19:27,700 --> 00:19:30,600 So I believe David investors would be Well, served to stop 384 00:19:30,600 --> 00:19:34,200 focusing, their efforts so much on high starting guilds instead, 385 00:19:34,200 --> 00:19:37,300 focus on companies that have everything in place to have, 386 00:19:37,300 --> 00:19:40,600 strong organic dividend growth for a long period of time in the 387 00:19:40,600 --> 00:19:42,800 future companies that can do this. 388 00:19:42,800 --> 00:19:46,600 Have great economics, good competitive Dynamics companies 389 00:19:46,600 --> 00:19:48,300 that have very strong balance sheets. 390 00:19:48,600 --> 00:19:51,800 These are ones that lead to Alpha 2 out performance. 391 00:19:52,000 --> 00:19:54,600 These are the strong dividend companies that pay year after 392 00:19:54,600 --> 00:19:57,800 year, after year, the ones that have the high starting yields, 393 00:19:57,800 --> 00:20:01,400 the ones that are value traps, they Often lead investors down 394 00:20:01,400 --> 00:20:04,300 the worst route where they're stuck in a company where the 395 00:20:04,300 --> 00:20:07,400 only reason they own, it is a dividend and they eventually 396 00:20:07,400 --> 00:20:09,200 capitulate and end up selling it. 397 00:20:09,300 --> 00:20:11,000 We've all been in those companies at one point or 398 00:20:11,000 --> 00:20:13,400 another, so it's time to focus on better companies. 399 00:20:13,500 --> 00:20:16,100 Now, the next big mistake that I see a lot of different investors 400 00:20:16,100 --> 00:20:20,700 making is over diversification. Now diversification is not all 401 00:20:20,700 --> 00:20:23,900 bad, I don't think you should be all inning a single company. 402 00:20:23,900 --> 00:20:27,100 That is overall, very risky. There's two different types of 403 00:20:27,100 --> 00:20:30,600 basic risks in the stock market. There's Specific risk. 404 00:20:30,600 --> 00:20:34,200 What are specific to a company, meaning the management team. 405 00:20:34,500 --> 00:20:38,000 The chance, the company does fraud the chance to company, 406 00:20:38,000 --> 00:20:40,100 gets out competed by a different company. 407 00:20:40,300 --> 00:20:44,300 Those are all specific risks to a specific company, but then 408 00:20:44,300 --> 00:20:47,800 there's systemic risk. Systematic risk is the risk of 409 00:20:47,800 --> 00:20:52,100 the overall World economy. Things like pandemics things, 410 00:20:52,100 --> 00:20:55,600 like Wars things, like famine. These are systemic risks that we 411 00:20:55,600 --> 00:20:59,400 really can't diversify away from so diversification. 412 00:20:59,500 --> 00:21:02,900 Is an opportunity for us to lower the amount of risk of 413 00:21:02,900 --> 00:21:07,200 specific risks, specific to any singular company, but the data 414 00:21:07,200 --> 00:21:10,400 shows empirically that. Once you have over seven to 10 415 00:21:10,400 --> 00:21:13,500 different companies, the specific risk is basically 416 00:21:13,500 --> 00:21:15,700 Diversified away to the max extent. 417 00:21:15,700 --> 00:21:20,900 It's mostly gone at that point and Beyond then layering on more 418 00:21:20,900 --> 00:21:24,600 and more companies can companies, 15 companies, 20 419 00:21:24,600 --> 00:21:29,100 companies, 25, 30, 35 40 45, you're getting no more. 420 00:21:29,500 --> 00:21:32,900 If it's of reduced risk at that point all you're doing is 421 00:21:32,900 --> 00:21:35,800 cluttering a portfolio. Full of tons of different 422 00:21:35,800 --> 00:21:39,100 companies without the benefit of any measurable risk reduction. 423 00:21:39,100 --> 00:21:42,000 Not only are you not really getting any additional benefit 424 00:21:42,000 --> 00:21:44,900 of reducing specific risk. But you're also getting the 425 00:21:44,900 --> 00:21:48,900 downside of having an overly complex portfolio of a group of 426 00:21:48,900 --> 00:21:51,700 companies that you can't possibly pay attention to 427 00:21:51,900 --> 00:21:54,400 extensively. So you're making individual 428 00:21:54,400 --> 00:21:57,100 Investments but you're spreading them out across so many 429 00:21:57,100 --> 00:21:59,400 companies that you really can't keep up. 430 00:21:59,600 --> 00:22:03,700 All of them in my portfolio, I've tried to mimic it where I'm 431 00:22:03,700 --> 00:22:05,700 getting the most bang for my buck. 432 00:22:05,900 --> 00:22:10,300 I have ten core positions SP Global MasterCard into it 433 00:22:10,300 --> 00:22:14,200 Microsoft and Apple. That's 5vg, Costco Texas, 434 00:22:14,200 --> 00:22:17,900 Roadhouse Canadian Pacific and Union Pacific right at ten core 435 00:22:17,900 --> 00:22:20,200 positions. I'm getting the maximum benefit 436 00:22:20,200 --> 00:22:23,000 of reducing specific risk. I'm right in that nice. 437 00:22:23,000 --> 00:22:26,000 Part of the curve there, but I also don't have so many 438 00:22:26,000 --> 00:22:29,400 companies that I can't possibly keep track of them I can. 439 00:22:29,500 --> 00:22:32,600 Keep track of 10 companies so I do believe in being Diversified 440 00:22:32,600 --> 00:22:36,600 but not being over Diversified at a lot of portfolios, I see 441 00:22:36,600 --> 00:22:39,700 from dividend vestries, our portfolios with 50 different 442 00:22:39,700 --> 00:22:41,900 companies. So many companies that half the 443 00:22:41,900 --> 00:22:43,900 time. I think these investors can't 444 00:22:43,900 --> 00:22:45,800 even remember the amount of companies they have in their 445 00:22:45,800 --> 00:22:48,200 portfolios. If you're doing that, you're 446 00:22:48,200 --> 00:22:51,600 just lazily investing putting money into dozens and dozens of 447 00:22:51,600 --> 00:22:54,200 companies without properly doing research on them. 448 00:22:54,200 --> 00:22:57,800 And then finally, the last thing that I see a lot of dividend 449 00:22:57,800 --> 00:23:02,000 investors doing that I think is Mistake is investing into bad 450 00:23:02,000 --> 00:23:04,800 Industries, bad companies and bad Industries. 451 00:23:05,100 --> 00:23:06,800 Now this can come off as a very harsh. 452 00:23:06,800 --> 00:23:09,800 Criticism me saying that these are bad companies but this is 453 00:23:09,800 --> 00:23:11,900 just my opinion. I do think a lot of the 454 00:23:11,900 --> 00:23:15,000 Investments That dividend investors by are in companies 455 00:23:15,000 --> 00:23:17,900 that are a lot of Industrials their Capital intensive. 456 00:23:17,900 --> 00:23:21,400 They're overly complex, a lot of these industries are incredibly 457 00:23:21,400 --> 00:23:25,800 difficult to operate it and I've made this same mistake before. 458 00:23:26,100 --> 00:23:28,700 So when I'm criticizing other people's Investments, I'm 459 00:23:28,700 --> 00:23:31,400 criticizing. My previous Investments as well. 460 00:23:31,400 --> 00:23:33,900 I used to own three hundred dollars of Boeing. 461 00:23:33,900 --> 00:23:36,200 It was one of my first Investments, I viewed the 462 00:23:36,200 --> 00:23:39,900 company as this big duopoly with Airbus, it was just one of the 463 00:23:39,900 --> 00:23:42,900 big companies that seemed like, it was unbeatable to me. 464 00:23:42,900 --> 00:23:45,500 But what I quickly learned is, that Boeing is an incredibly 465 00:23:45,500 --> 00:23:48,400 complex company. It has an entire chain of events 466 00:23:48,400 --> 00:23:51,500 that has to happen. Huge manufacturing processes 467 00:23:51,700 --> 00:23:55,900 tons of quality assurance tons of liability potential lawsuits. 468 00:23:56,100 --> 00:23:59,400 Long-term contracts, the amount of complexity in this business 469 00:23:59,600 --> 00:24:03,000 Is incredible running, it would be trying to run a small 470 00:24:03,000 --> 00:24:04,400 country. So, Boeing's, one of these 471 00:24:04,400 --> 00:24:07,600 companies, it's incredibly complex difficult to understand 472 00:24:07,700 --> 00:24:11,300 very Capital intensive, and has tons of various risk factors 473 00:24:11,300 --> 00:24:14,000 that investors can't properly put into their analysis. 474 00:24:14,300 --> 00:24:16,800 There's no way you can accurately quantify the amount 475 00:24:16,800 --> 00:24:19,100 of risk in this company. And I see the same thing with a 476 00:24:19,108 --> 00:24:22,300 lot of other industries that I considered a not be the greatest 477 00:24:22,300 --> 00:24:25,500 Industries to invest in Intel being an example of how 478 00:24:25,500 --> 00:24:29,100 unpredictable it is to be a chip maker and videos leading the 479 00:24:29,100 --> 00:24:31,000 race. Right now and videos what's 480 00:24:31,000 --> 00:24:34,900 drawing everybody's attention. But in tell what's King not too 481 00:24:34,900 --> 00:24:39,300 long ago they controlled the world with chips and now how far 482 00:24:39,300 --> 00:24:41,800 they've fallen and I see so many investors getting drawn into 483 00:24:41,800 --> 00:24:44,900 these companies 3M. Another company having a high 484 00:24:44,900 --> 00:24:47,800 dividend yield that's been one. That's so far, has been a value 485 00:24:47,800 --> 00:24:51,500 trap for a long period of time down nine percent over the past 486 00:24:51,500 --> 00:24:53,100 10 years. The companies that I've been 487 00:24:53,100 --> 00:24:56,200 gravitating to and I've been trying to urge investors to 488 00:24:56,200 --> 00:24:59,400 gravitate to are ones that are more simple and have it. 489 00:24:59,500 --> 00:25:02,100 An onyx that are better for longer periods of time. 490 00:25:02,300 --> 00:25:06,300 SP Global shares, a monopoly between them and Moody's. 491 00:25:06,300 --> 00:25:09,700 Both companies benefit mutually, I've been bullish on Microsoft 492 00:25:09,700 --> 00:25:12,200 for a long period of time. A company that has great 493 00:25:12,200 --> 00:25:15,700 competitive Dynamics by virtue of its massive, monopolistic 494 00:25:15,700 --> 00:25:19,300 mode, even Costco's a company that seemingly more expensive, 495 00:25:19,300 --> 00:25:22,400 but it's more predictable and it has a more simple business model 496 00:25:22,400 --> 00:25:25,200 that's easier to operate and easier to execute. 497 00:25:25,200 --> 00:25:27,600 It's much easier to open up a new warehouse and sell some 498 00:25:27,600 --> 00:25:29,400 memberships than it is to try to. 499 00:25:29,500 --> 00:25:33,000 Create the next big aircraft. So my final piece of advice for 500 00:25:33,000 --> 00:25:36,400 dividend investors is to focus on industries that are overall. 501 00:25:36,400 --> 00:25:39,100 Good Industries, where everybody's winning in that 502 00:25:39,100 --> 00:25:41,700 industry where you're fishing in a good Pond. 503 00:25:41,800 --> 00:25:44,900 Not trying to pick winners. Among the losers focus on 504 00:25:44,900 --> 00:25:48,700 companies that aren't Capital intensive or overly complex ones 505 00:25:48,700 --> 00:25:52,100 that are simple and predictable. If we do this I think we'll have 506 00:25:52,100 --> 00:25:55,000 better returns overall and I think that dividend investing 507 00:25:55,000 --> 00:25:56,600 will be looked at more favorably. 508 00:25:56,600 --> 00:25:59,900 Overall, it won't be so associated with buying Boeing 509 00:25:59,900 --> 00:26:03,100 complex companies that are many cases value traps. 510 00:26:03,300 --> 00:26:05,600 This is what I've been doing with my portfolio. 511 00:26:05,600 --> 00:26:08,700 It's the strategy that I've been merging over to and I think it 512 00:26:08,700 --> 00:26:12,100 more closely mimics and aligns with what Warren Buffett did his 513 00:26:12,100 --> 00:26:15,400 entire career, especially his early career focusing. 514 00:26:15,400 --> 00:26:18,600 On companies that not only paid him cash loads but they had 515 00:26:18,600 --> 00:26:22,300 strong organic growth profiles. That would pay him growing cash 516 00:26:22,300 --> 00:26:25,300 flows in the future and then reinvesting those cash flows 517 00:26:25,300 --> 00:26:28,200 into other good opportunities. So that's my thoughts overall on 518 00:26:28,200 --> 00:26:31,000 this issue and my biggest Advice of what I've learned over the 519 00:26:31,000 --> 00:26:33,200 past five years. Let me know what you think. 520 00:26:33,200 --> 00:26:34,700 If you disagree. That's fine. 521 00:26:34,900 --> 00:26:37,400 But let me know, either way, I'd be happy to discuss in the 522 00:26:37,408 --> 00:26:39,700 comments. Now, moving on we have some big 523 00:26:39,700 --> 00:26:43,000 news from Mark Zuckerberg, making some big moves. 524 00:26:43,000 --> 00:26:47,200 He's now competing directly with Twitter meta, has unveiled two 525 00:26:47,200 --> 00:26:50,000 employees, a standalone app at plans to launch through 526 00:26:50,000 --> 00:26:51,700 Instagram to compete with Twitter. 527 00:26:52,100 --> 00:26:55,700 Now it's interesting wordage. There they say it's a standalone 528 00:26:55,700 --> 00:26:58,600 app but they're going to launch it through Instagram. 529 00:26:58,800 --> 00:27:00,800 We'll get to what That means in a minute here. 530 00:27:01,200 --> 00:27:04,800 They say that this was revealed by Chris Cox, the chief product 531 00:27:04,800 --> 00:27:08,700 officer Cox told employees that meta has heard from creators and 532 00:27:08,700 --> 00:27:11,600 public figures. Who want a quote sanely run 533 00:27:11,600 --> 00:27:13,800 platform. The people that I think want a 534 00:27:13,800 --> 00:27:18,800 sale iRun platform are a lot of. I think politicians that don't 535 00:27:18,800 --> 00:27:21,800 like the Elan is running Twitter, they don't like that. 536 00:27:21,800 --> 00:27:24,400 He's running the platform. It's a highly political thing. 537 00:27:24,400 --> 00:27:27,000 So people have very, very strong views on Ilan. 538 00:27:27,200 --> 00:27:29,700 Some people don't like them if they don't like Him. 539 00:27:29,700 --> 00:27:32,100 They don't want to support the platform so they want an 540 00:27:32,100 --> 00:27:34,700 alternative. Those people are the one that 541 00:27:34,700 --> 00:27:37,100 are saying that elon's, not saying he's not running the 542 00:27:37,100 --> 00:27:40,700 company saying lie, so they want an alternative and met as their 543 00:27:40,700 --> 00:27:43,200 to the rescue. The company is in talks to have 544 00:27:43,200 --> 00:27:46,600 people such as Oprah Winfrey, and Dali Lama commit to using 545 00:27:46,600 --> 00:27:48,600 the app. Adding that meta hopes to launch 546 00:27:48,600 --> 00:27:50,900 it. Quote as soon as we can, and the 547 00:27:50,900 --> 00:27:54,600 app is internally codenamed, project 92, a person. 548 00:27:54,600 --> 00:27:57,800 Familiar with the software said, why they named it that I have no 549 00:27:57,800 --> 00:28:01,500 clue, it sounds kind of Cool. But we don't know anything about 550 00:28:01,500 --> 00:28:03,400 the name there. So we don't have much details on 551 00:28:03,400 --> 00:28:05,200 this. But let me make a very early 552 00:28:05,200 --> 00:28:08,000 judgment here based on the history that I've studied with 553 00:28:08,000 --> 00:28:10,800 meta. This is what they're best at. 554 00:28:11,000 --> 00:28:12,700 This is right in their wheelhouse. 555 00:28:12,700 --> 00:28:15,300 This is what they consider to be their super power. 556 00:28:15,300 --> 00:28:18,700 They can take different features from different social media, 557 00:28:18,900 --> 00:28:21,000 they can integrate it or rebuild it. 558 00:28:21,200 --> 00:28:24,500 And then they can push major usage and engagement on. 559 00:28:24,500 --> 00:28:28,200 It Mehta has proven their ability to do this over and over 560 00:28:28,200 --> 00:28:31,000 and over again. Reels and stories were features 561 00:28:31,000 --> 00:28:32,800 that they took from different platforms. 562 00:28:32,900 --> 00:28:35,500 They integrated it onto an existing platform, to great 563 00:28:35,500 --> 00:28:37,300 success. But this is a bit of a more 564 00:28:37,300 --> 00:28:40,000 aggressive challenge. They're not only trying to just 565 00:28:40,000 --> 00:28:42,500 integrate a new feature. They're trying to completely 566 00:28:42,500 --> 00:28:45,900 replicate Twitter and do it better and build it to a 567 00:28:45,900 --> 00:28:50,000 successful platform. So this is what they're good at, 568 00:28:50,000 --> 00:28:52,100 but I think this is a bit more aggressive. 569 00:28:52,100 --> 00:28:55,700 I think it's a bit more risky, but I'm still going to side on 570 00:28:55,700 --> 00:28:57,700 the side of meta. I think they'll be able to pull 571 00:28:57,700 --> 00:28:59,300 this off. I think they'll be able to push 572 00:28:59,500 --> 00:29:02,800 Major engagement and usage on the Twitter competitor. 573 00:29:03,000 --> 00:29:06,100 And the reason being is that they've proven again, that 574 00:29:06,100 --> 00:29:09,100 they're incredibly good at this, what they're doing is they're 575 00:29:09,100 --> 00:29:12,400 launching it through Instagram. So what I assume they're going 576 00:29:12,400 --> 00:29:14,500 to be doing with this, is there going to be using your 577 00:29:14,500 --> 00:29:16,800 information? You've already given them on 578 00:29:16,800 --> 00:29:20,800 Instagram to Auto populate accounts on this new Twitter, 579 00:29:20,800 --> 00:29:23,300 competitor. Now that you have your account 580 00:29:23,300 --> 00:29:26,800 already made you already have the onboarding process done. 581 00:29:27,000 --> 00:29:29,300 All you have to do is just log in and open it up. 582 00:29:29,400 --> 00:29:31,200 Up. You have your Twitter copy 583 00:29:31,200 --> 00:29:33,700 account? Some meta is removing all the 584 00:29:33,700 --> 00:29:36,300 friction by using all the information. 585 00:29:36,300 --> 00:29:40,300 They already have to bridge. The gap between Instagram and 586 00:29:40,300 --> 00:29:43,300 the Twitter competitor if they did it that way, that would be a 587 00:29:43,300 --> 00:29:46,400 brilliant move by meta and make the chances of success even 588 00:29:46,400 --> 00:29:48,300 greater for this. So we don't know if this is 589 00:29:48,300 --> 00:29:51,100 going to be ultimately successful so far, but if I was 590 00:29:51,100 --> 00:29:53,500 a meta investor I would be pretty bullish on this. 591 00:29:53,500 --> 00:29:56,400 I do think it's something that's going to be a likely success. 592 00:29:56,400 --> 00:29:59,900 Now, on the same subject of meta and Mark Zuckerberg We get to 593 00:29:59,900 --> 00:30:04,200 see his initial first public reaction to the Apple Vision Pro 594 00:30:04,200 --> 00:30:06,000 headset. A little bit of background 595 00:30:06,000 --> 00:30:08,100 between Mark Zuckerberg and apple. 596 00:30:08,400 --> 00:30:12,100 Mark Zuckerberg is very calm, and he's very level-headed in 597 00:30:12,100 --> 00:30:14,400 the way that he talks about Apple and the way that he talks 598 00:30:14,400 --> 00:30:17,900 about Tim Cook, but I believe strongly the underneath, this 599 00:30:17,900 --> 00:30:21,700 very calm demeanor, there is a certain hatred that he has for 600 00:30:21,700 --> 00:30:23,400 Apple. I don't think that he only 601 00:30:23,400 --> 00:30:26,100 dislikes the company and has a friendly competition with him. 602 00:30:26,300 --> 00:30:28,200 I think he has utter disdain for them. 603 00:30:28,500 --> 00:30:31,600 Apple has Been bullying meta mercilessly. 604 00:30:31,700 --> 00:30:35,100 Doing add changes doing things that hurt his business and take 605 00:30:35,100 --> 00:30:38,900 billions of dollars out of his company, his employees and his 606 00:30:38,900 --> 00:30:40,800 wallet. And he doesn't like that. 607 00:30:40,800 --> 00:30:43,500 Mark Zuckerberg is incredibly competitive, he shown that in 608 00:30:43,500 --> 00:30:45,800 both his personal life and his business life. 609 00:30:45,900 --> 00:30:49,500 He doesn't like being beholden to Apple in order to circumvent 610 00:30:49,500 --> 00:30:51,400 apple and their App Store policies. 611 00:30:51,700 --> 00:30:55,200 Mark Zuckerberg has been looking for ways to go around the 612 00:30:55,200 --> 00:30:59,200 hardware Monopoly that Apple has and his way of doing that is not 613 00:30:59,400 --> 00:31:03,200 The phone, not through the laptop but through the headset 614 00:31:03,300 --> 00:31:05,800 he believes that this is the next generation of computing. 615 00:31:06,000 --> 00:31:08,800 He's come out with the Oculus. He's made massive investments 616 00:31:08,800 --> 00:31:13,300 into this category and hopes to have his own physical platform 617 00:31:13,500 --> 00:31:16,400 where he no longer has to operate through Apple's App 618 00:31:16,400 --> 00:31:19,900 Store Monopoly, but then we have apple releasing The Vision Pro 619 00:31:20,300 --> 00:31:22,500 in my estimation. I think that Apple did what they 620 00:31:22,500 --> 00:31:24,600 do best. They came out with a premium 621 00:31:24,600 --> 00:31:28,400 item as higher. Resolution lower latency has 622 00:31:28,400 --> 00:31:30,000 very good specs. It's very good. 623 00:31:30,000 --> 00:31:33,600 Build quality and overall seems like a highly polished device. 624 00:31:33,800 --> 00:31:37,400 It comes in at a more expensive price point and that's the major 625 00:31:37,400 --> 00:31:39,700 Focus. But here we have the 626 00:31:39,700 --> 00:31:44,300 head-to-head battle between meta and Oculus in all of his various 627 00:31:44,300 --> 00:31:46,500 headsets and the Apple Vision Pro. 628 00:31:46,600 --> 00:31:49,800 Here's what Zuckerberg said, in his initial reaction, seeing the 629 00:31:49,800 --> 00:31:52,900 Vision Pro release a few high-level thoughts. 630 00:31:52,900 --> 00:32:00,000 I mean first you know, I do think that this is A certain 631 00:32:00,000 --> 00:32:03,900 level of validation for the category, right? 632 00:32:03,900 --> 00:32:07,800 Where, you know, we were the primary folks out there before 633 00:32:07,800 --> 00:32:12,000 saying hey, I think that this virtual reality augmented 634 00:32:12,000 --> 00:32:14,300 reality mixed reality. This is going to be a big part 635 00:32:14,300 --> 00:32:20,700 of the next Computing platform. I think having Apple come in and 636 00:32:20,700 --> 00:32:27,300 share that vision We'll make a lot of people who are fans of 637 00:32:27,300 --> 00:32:30,300 their products really consider that. 638 00:32:31,600 --> 00:32:34,500 And then, the first one that he makes is one of product and 639 00:32:34,500 --> 00:32:39,200 category validation by Apple entering, in to the a, our VR 640 00:32:39,200 --> 00:32:42,500 headset game. They have thus validated that 641 00:32:42,500 --> 00:32:44,900 category of product is being a valid product. 642 00:32:45,200 --> 00:32:48,500 And that logic seems simple. I think this is a very good. 643 00:32:48,500 --> 00:32:51,300 Go to reaction by Mark Zuckerberg. 644 00:32:51,600 --> 00:32:54,900 The problem is, this is the reaction that literally, every 645 00:32:55,100 --> 00:32:59,400 CEO says, when Apple steps into their category and competes 646 00:32:59,400 --> 00:33:02,700 directly with them, take, for example, when Apple stepped into 647 00:33:02,700 --> 00:33:06,600 fitness, they offer a fitness service called Fitness Plus, 648 00:33:07,000 --> 00:33:08,900 Peloton, was already in this game. 649 00:33:08,900 --> 00:33:11,700 They're the biggest ones by far in this category. 650 00:33:12,000 --> 00:33:15,900 The Peloton CEO was one of optimism saying that it's quote, 651 00:33:16,100 --> 00:33:19,300 quite a legitimization of Fitness content. 652 00:33:19,300 --> 00:33:23,500 That is the big headline their apple entering into the category 653 00:33:23,500 --> 00:33:26,500 is a good thing. It Is this Fitness content and 654 00:33:26,500 --> 00:33:29,500 its overall going to lead to Greater sales for Peloton, but 655 00:33:29,500 --> 00:33:32,400 the stock price since this was posted for Peloton is down 656 00:33:32,400 --> 00:33:37,000 around 70% and there's no evidence whatsoever that Apple 657 00:33:37,000 --> 00:33:40,600 entering in to Fitness. Content has helped Peloton 658 00:33:40,700 --> 00:33:43,200 whatsoever. All it's done, is created a 659 00:33:43,200 --> 00:33:46,500 massive competitor to something that they uniquely owned, 660 00:33:46,900 --> 00:33:49,600 companies should be able to legitimize their own products 661 00:33:49,600 --> 00:33:53,200 without having the biggest, most powerful company in the world 662 00:33:53,300 --> 00:33:56,100 compete directly with them. When Apple Competed with Amazon 663 00:33:56,100 --> 00:33:58,200 with the fire phone. It didn't help them and it 664 00:33:58,200 --> 00:34:00,400 certainly didn't help the zoom when they competed with 665 00:34:00,400 --> 00:34:04,200 Microsoft when Apple steps in and competes headfirst with a 666 00:34:04,200 --> 00:34:07,900 separate company saying it. Legitimizes a category is a nice 667 00:34:07,900 --> 00:34:10,600 thing to say but I don't see a lot of evidence that that's the 668 00:34:10,600 --> 00:34:12,300 case. The next thing that he moves on 669 00:34:12,300 --> 00:34:15,699 to is the big price point, really consider that. 670 00:34:17,100 --> 00:34:23,000 And then of course the thirty five hundred dollar price you 671 00:34:23,000 --> 00:34:24,800 know on the one hand to get it forward. 672 00:34:24,800 --> 00:34:27,000 All the If they're trying to pack in there on the other hand, 673 00:34:27,000 --> 00:34:30,000 a lot of people aren't going to find that to be affordable. 674 00:34:30,500 --> 00:34:34,100 Apples headset. At $3500 is unaffordable way too 675 00:34:34,100 --> 00:34:37,199 expensive for most people. This reminds me a little bit of 676 00:34:37,199 --> 00:34:39,600 Steve Ballmer being asked about the iPhone. 677 00:34:39,900 --> 00:34:43,000 They let me ask you about the iPhone and the Zune. 678 00:34:43,000 --> 00:34:47,699 If I may Zoom was getting some traction, then Steve Jobs goes 679 00:34:47,699 --> 00:34:50,000 to macworld and he pulls out this iPhone. 680 00:34:50,199 --> 00:34:54,900 What was your first reaction when you saw that $500? 681 00:34:55,199 --> 00:34:58,400 The first thing that comes out of his mouth and criticism of 682 00:34:58,400 --> 00:35:02,300 Apple being a legitimate competitor to Microsoft was five 683 00:35:02,300 --> 00:35:07,200 hundred dollars at the time. That was extremely expensive for 684 00:35:07,200 --> 00:35:11,000 phone far more expensive than any competitor or any existing 685 00:35:11,000 --> 00:35:14,200 phone on the market. And apple was likewise scoffed 686 00:35:14,200 --> 00:35:17,400 at and mocked for being way too expensive and far Out Of Reach 687 00:35:17,400 --> 00:35:19,500 of other people. Now, Mark Zuckerberg doesn't say 688 00:35:19,500 --> 00:35:22,600 this with as mocking of a tone but the concern is very similar. 689 00:35:22,800 --> 00:35:25,900 So I think there's a chance that that them Again, actually 690 00:35:25,900 --> 00:35:29,200 increases demand for the overall space. 691 00:35:29,200 --> 00:35:32,800 That Quest 3 is actually the primary beneficiary of that. 692 00:35:33,000 --> 00:35:36,700 Because a lot of the people who might say, Hey, you know, this, 693 00:35:37,600 --> 00:35:40,500 like I'm going to give another consideration to this or, you 694 00:35:40,500 --> 00:35:43,300 know, now I understand maybe what mixed reality is more. 695 00:35:43,600 --> 00:35:47,000 An inquest 3 is the best one on the market that I can that I can 696 00:35:47,000 --> 00:35:49,700 afford and it's great. Also, right? 697 00:35:49,700 --> 00:35:52,500 It's, I think that's and, you know, in our own way. 698 00:35:52,500 --> 00:35:54,700 I think we're in there. A lot of features that we have 699 00:35:54,700 --> 00:35:57,900 where we We're leading on, maybe in a way, the Vision Pro will 700 00:35:57,900 --> 00:36:02,000 create more demand for meta, but I don't typically see that the 701 00:36:02,000 --> 00:36:05,400 case throughout history, when people want an Apple device, 702 00:36:05,400 --> 00:36:09,400 they don't say you, I want an iPad but the iPads a little too 703 00:36:09,400 --> 00:36:11,500 expensive. So I'm going to go get a Kindle. 704 00:36:11,500 --> 00:36:13,900 I'm going to go get, I'm gonna go get a Fire tablet. 705 00:36:13,900 --> 00:36:17,100 That's not often the case. There's always a secondary 706 00:36:17,100 --> 00:36:19,600 Market, maybe that will happen in some cases. 707 00:36:19,600 --> 00:36:23,600 But in most cases, when real users want to pay for a real 708 00:36:23,600 --> 00:36:26,800 device, they get the That they want, they have different ways 709 00:36:26,800 --> 00:36:29,400 of financing different ways of saving different ways of paying 710 00:36:29,400 --> 00:36:31,800 for it. If someone really wants to get 711 00:36:31,800 --> 00:36:34,000 an iPhone, they're going to find a way to get it. 712 00:36:34,000 --> 00:36:36,400 And then obviously over time, the companies are just focused 713 00:36:36,400 --> 00:36:39,100 on somewhat different things, right? 714 00:36:39,100 --> 00:36:45,000 Apple has always, you know, I think focused on building really 715 00:36:45,000 --> 00:36:52,000 kind of high-end things, whereas our Focus has been on it's just 716 00:36:52,000 --> 00:36:54,800 we've a more democratic ethos. We want to build things that are 717 00:36:55,000 --> 00:36:59,800 Are accessible to a wider. Number of people, we've sold 718 00:36:59,800 --> 00:37:02,100 tens of millions of quest devices. 719 00:37:04,900 --> 00:37:07,900 My understanding just based on rumors I don't have any special 720 00:37:07,900 --> 00:37:10,800 knowledge on this is that apple is building about 1 million of 721 00:37:10,800 --> 00:37:14,700 their of their device, right? So the next thing he brings up 722 00:37:14,700 --> 00:37:19,000 is one of accessibility. His company is building stuff. 723 00:37:19,100 --> 00:37:21,800 That's accessible by many, many people, it's not priced out of 724 00:37:21,808 --> 00:37:24,000 them. This is another argument that 725 00:37:24,000 --> 00:37:26,800 looking at the data, it falls flat. 726 00:37:27,000 --> 00:37:30,900 He's painting apple as this company that only sells premium 727 00:37:30,900 --> 00:37:34,300 devices to only a very small number of users apples. 728 00:37:34,300 --> 00:37:36,200 And All base. Over the past seven years has 729 00:37:36,200 --> 00:37:40,100 estimated Lee doubled from 1 billion installed devices to 730 00:37:40,100 --> 00:37:42,800 over 2 billion installed devices. 731 00:37:42,900 --> 00:37:45,000 If Apple's devices are so undemocratic. 732 00:37:45,000 --> 00:37:48,300 And so inaccessible, then why do they have an installed base of 733 00:37:48,300 --> 00:37:52,400 devices that exceeds 2 billion that doesn't stack up? 734 00:37:52,400 --> 00:37:55,700 Obviously, lots of people are able to get apples devices. 735 00:37:55,700 --> 00:37:58,600 Lots of people from various income levels, we kind of come 736 00:37:58,600 --> 00:38:01,500 at it from different places. We're very focused on social 737 00:38:01,500 --> 00:38:07,600 interaction, communication. Being more active rights as 738 00:38:07,600 --> 00:38:12,200 Fitness, there's gaming, there are those things now whereas I 739 00:38:12,207 --> 00:38:16,500 think a lot of the use cases that you saw in and apples 740 00:38:16,500 --> 00:38:20,700 launch material were more around people sitting, you know, people 741 00:38:20,700 --> 00:38:24,400 looking at screens which are great I think that you will 742 00:38:24,400 --> 00:38:27,200 replace your laptop over time with with a with a headset. 743 00:38:27,200 --> 00:38:31,300 But but I think in terms of kind of how the different use cases 744 00:38:31,300 --> 00:38:34,200 that the companies are going after and they're there. 745 00:38:34,500 --> 00:38:36,900 They're a bit different for for where we are right now. 746 00:38:37,000 --> 00:38:39,700 This is another reaction that I think is a little soft. 747 00:38:39,700 --> 00:38:42,400 I think it's a bit weak. He's trying to paint apples 748 00:38:42,400 --> 00:38:46,400 devices, being antisocial and his devices being very, very 749 00:38:46,400 --> 00:38:48,400 social. But when we looked at the actual 750 00:38:48,400 --> 00:38:51,500 presentation, there's not much distinction in terms of social 751 00:38:51,500 --> 00:38:54,700 capability, Apple demonstrated, plenty of social apps with 752 00:38:54,700 --> 00:38:59,200 FaceTime 3D videoing, looking at a wall of people and friends and 753 00:38:59,200 --> 00:39:02,100 real time, there's lots of this type of thing of them, standing 754 00:39:02,100 --> 00:39:04,300 up and being active as they're working, and a big thing. 755 00:39:04,500 --> 00:39:06,700 To keep in mind is the hardware and device. 756 00:39:06,700 --> 00:39:10,400 Capability is just the product that's able to launch the apps. 757 00:39:10,500 --> 00:39:13,900 The app Builders will get into the Vision Pro now and build, 758 00:39:13,900 --> 00:39:17,700 many social apps, I anticipate that on the Vision Pro on 759 00:39:17,700 --> 00:39:21,500 Apple's devices, there will be just as many social capabilities 760 00:39:21,500 --> 00:39:24,500 as there are on metas. Now overall, I like the fact 761 00:39:24,500 --> 00:39:26,400 that Mark Zuckerberg will sit down and speak. 762 00:39:26,400 --> 00:39:29,400 So candidly about his reaction and about his goals and 763 00:39:29,400 --> 00:39:31,200 Ambitions. I think it's good that he's 764 00:39:31,200 --> 00:39:34,800 competing with happel, but if I have to pick the overall, Or of, 765 00:39:34,800 --> 00:39:36,800 who I think would dominate this Market. 766 00:39:37,100 --> 00:39:40,600 My vote still stands with apple. I think they'll have much bigger 767 00:39:40,600 --> 00:39:43,800 market, share of the overall, economics of this device 768 00:39:43,800 --> 00:39:47,400 category, similar with how they do with the tablet, with the 769 00:39:47,400 --> 00:39:51,200 MacBook, with the phone with the are pods with every other 770 00:39:51,200 --> 00:39:52,700 device, category that they're in. 771 00:39:53,000 --> 00:39:56,000 I see no big distinction with headsets now. 772 00:39:56,000 --> 00:39:58,400 Finally, we get to the most important part of the show, this 773 00:39:58,400 --> 00:40:01,300 is where we get our best tips, our best advice financially, 774 00:40:01,600 --> 00:40:04,400 this is what on the best house hacking tip ever, which comes 775 00:40:04,500 --> 00:40:07,400 He's at a very important time because right now it's difficult 776 00:40:07,400 --> 00:40:09,300 to get into homes. They're very expensive. 777 00:40:09,500 --> 00:40:11,700 This person right here, has a solution for it. 778 00:40:11,700 --> 00:40:15,700 People are always complaining about how expensive housing as 779 00:40:15,700 --> 00:40:17,300 they say. It's so unaffordable, they can't 780 00:40:17,300 --> 00:40:20,500 afford it. 20% down is just as too much for them. 781 00:40:20,600 --> 00:40:23,100 I think they're just making excuses in my opinion, but let 782 00:40:23,100 --> 00:40:26,700 me tell you what, how much is a 20% down payment on a 1 million 783 00:40:26,700 --> 00:40:30,700 dollar house? Two hundred thousand dollars, 784 00:40:30,800 --> 00:40:33,200 two hundred thousand. Okay, let me ask you this. 785 00:40:33,700 --> 00:40:37,300 How many kidneys do you have to? Alright, that caught me off 786 00:40:37,300 --> 00:40:38,100 guard. They're a little bit. 787 00:40:38,100 --> 00:40:41,500 He went from, what is the down payment on a million-dollar 788 00:40:41,500 --> 00:40:43,200 home? A 20% down payment? 789 00:40:43,300 --> 00:40:45,400 And now we're talking about, I think I heard kidneys. 790 00:40:45,600 --> 00:40:50,100 How many kidneys do you have? We went from house hacking to 791 00:40:50,100 --> 00:40:52,900 now human biology. Let's go ahead and keep 792 00:40:52,900 --> 00:40:55,200 listening here. I think I know what direction 793 00:40:55,200 --> 00:40:58,600 he's going but let's let's take a look now. 794 00:40:58,600 --> 00:41:01,800 How many kids? Is, does the average person need 795 00:41:01,900 --> 00:41:06,300 to survive? One. 796 00:41:08,600 --> 00:41:11,600 How much do you think that you could sell a kidney for in the 797 00:41:11,600 --> 00:41:17,400 black market today? 250 300 350 will say to you take 798 00:41:17,400 --> 00:41:19,900 your kid and you sell it 200. I thought this is a house 799 00:41:19,900 --> 00:41:22,100 hacking tip, not a human hacking tip. 800 00:41:22,200 --> 00:41:25,700 He's saying that you can hock your kidney on the black market 801 00:41:25,700 --> 00:41:28,900 for a quarter million. Now I have no way of verifying 802 00:41:28,900 --> 00:41:30,900 this. I have not looked into the price 803 00:41:30,900 --> 00:41:34,000 of a kidney maybe this is correct. 804 00:41:34,000 --> 00:41:35,900 That's a lot of money. Two hundred fifty thousand 805 00:41:35,900 --> 00:41:39,700 dollars but I'd still rather have my Kidneys and instead of 806 00:41:39,700 --> 00:41:42,200 trying to do some type of illegal surgery. 807 00:41:42,700 --> 00:41:45,100 But regardless let's just assume for a minute. 808 00:41:45,100 --> 00:41:48,200 This is accurate information, fifty thousand dollars take that 809 00:41:48,200 --> 00:41:50,300 50 thousand dollars, you put it in your pocket, you don't even 810 00:41:50,300 --> 00:41:51,800 look at it. You take that two hundred 811 00:41:51,800 --> 00:41:54,600 thousand dollars, you put it on a down payment on a 1 million 812 00:41:54,600 --> 00:41:58,300 dollar house. You rent that house for three 813 00:41:58,300 --> 00:42:00,700 years. Three years. 814 00:42:01,600 --> 00:42:03,900 You make your money back you by your kidney back. 815 00:42:04,000 --> 00:42:05,800 You reinsert it back into your body. 816 00:42:05,900 --> 00:42:12,400 Now what now you have two kidneys and And you have a 1 817 00:42:12,400 --> 00:42:15,000 million dollar asset. I don't know what to say, I 818 00:42:15,000 --> 00:42:17,800 normally am critical of these type of tick-tocks. 819 00:42:17,800 --> 00:42:20,600 I think that some of them are a little silly but this one's 820 00:42:20,600 --> 00:42:23,300 pretty genius. I must admit you only have to 821 00:42:23,300 --> 00:42:27,700 risk death twice by taking your kidney and selling it on the 822 00:42:27,700 --> 00:42:30,000 black market. A surgery that I can't imagine 823 00:42:30,000 --> 00:42:33,100 being done with the best doctors or surgeons, but then you also 824 00:42:33,100 --> 00:42:36,300 have to reinsert it back into your body and reconnect it, 825 00:42:36,700 --> 00:42:39,600 which I can't imagine as well as being a great surgery. 826 00:42:39,800 --> 00:42:42,800 And by the way, I I think surgeries are somewhat expensive 827 00:42:42,800 --> 00:42:46,500 so out of that 250,000 dollars. Some of it's probably going to 828 00:42:46,500 --> 00:42:48,500 the surgeon or whoever's doing the surgery. 829 00:42:48,900 --> 00:42:52,200 It seems like he may be leaving out a few details there but 830 00:42:52,200 --> 00:42:54,400 there we have it, the most extreme house, hacking tip I've 831 00:42:54,400 --> 00:42:56,500 ever heard. That's all for this episode. 832 00:42:56,600 --> 00:42:58,400 Have a great weekend. I'll see you in the next one.