1 00:00:00,080 --> 00:00:02,000 Welcome back everyone. Today on the Joseph Carlson 2 00:00:02,000 --> 00:00:05,080 Show. I just bought another $5000 of 3 00:00:05,080 --> 00:00:07,120 this company. I'll give you a hint, it's 4 00:00:07,120 --> 00:00:10,520 between Amazon and Google, one of these two. 5 00:00:10,640 --> 00:00:12,840 Obviously I'm very bullish on both of these companies. 6 00:00:12,840 --> 00:00:15,600 I'll be going over both of them for a bit and explaining why I'm 7 00:00:15,600 --> 00:00:18,680 adding more to this position. We also have news NVIDIA hit a 8 00:00:18,760 --> 00:00:21,800 $4 trillion market cap, The first company to do it. 9 00:00:21,840 --> 00:00:24,800 Terry Smith from Fundsmith released his six month update 10 00:00:25,200 --> 00:00:28,160 and it doesn't look good. His fund is still struggling. 11 00:00:28,400 --> 00:00:31,000 He, of course, is a high quality growth investor. 12 00:00:31,000 --> 00:00:34,840 What is going wrong to have the Fundsmith portfolio continually 13 00:00:34,840 --> 00:00:36,600 underperform? And then we have some big news 14 00:00:36,600 --> 00:00:39,560 in the credit market. FICO now has a new competitor, 15 00:00:39,560 --> 00:00:43,120 which is Vantage Score. FICO is now down 15% year to 16 00:00:43,120 --> 00:00:45,040 date. The stock is a mess right now. 17 00:00:45,040 --> 00:00:47,360 We'll be going over it. Waymo is now giving rides to 18 00:00:47,360 --> 00:00:50,760 teenagers and testing out trying to expand in New York City. 19 00:00:50,760 --> 00:00:53,760 And we have Sam Altman answering questions on the side of the 20 00:00:53,760 --> 00:00:56,040 road with some killer sunglasses. 21 00:00:56,360 --> 00:00:57,560 We'll be looking at that as well. 22 00:00:57,720 --> 00:01:00,320 Now to start things off, we jump into the latest buy here, the 23 00:01:00,320 --> 00:01:03,760 company that I've added another $5000 to in My Portfolio. 24 00:01:03,880 --> 00:01:07,080 And I said it was between Google and Amazon. 25 00:01:07,120 --> 00:01:09,480 These are two companies that I've spoken about over and over 26 00:01:09,480 --> 00:01:12,440 again over the past year or so because I believe they're two of 27 00:01:12,440 --> 00:01:15,160 the most well risk adjusted returns in the market. 28 00:01:15,520 --> 00:01:17,400 Now, what do I mean by risk adjusted? 29 00:01:17,760 --> 00:01:20,800 Well, there are companies that offer more potential upside than 30 00:01:20,800 --> 00:01:23,520 Amazon and Google. In fact, there's many of them in 31 00:01:23,520 --> 00:01:25,520 the market. There's companies like Hims and 32 00:01:25,520 --> 00:01:28,600 Hers, the healthcare company trying to redefine this 33 00:01:28,600 --> 00:01:30,600 industry. There's companies like Shark 34 00:01:30,600 --> 00:01:33,800 Ninja, always innovating, creating new products, growing 35 00:01:33,800 --> 00:01:35,480 much faster than their competition. 36 00:01:35,840 --> 00:01:38,840 There's even ones like Crocs. Crocs is a company that's grown 37 00:01:38,840 --> 00:01:41,720 its revenue tremendously over the years and it's had great 38 00:01:41,720 --> 00:01:43,600 success. While it's true that companies 39 00:01:43,600 --> 00:01:46,960 like this have the potential to outperform a Google or Amazon 40 00:01:46,960 --> 00:01:50,200 over the next 5, the issue is the predictability of these 41 00:01:50,200 --> 00:01:52,000 companies, The relative downside. 42 00:01:52,040 --> 00:01:55,880 They are far less predictable than a company like Amazon and 43 00:01:55,880 --> 00:01:57,440 Google. And if you're investing just a 44 00:01:57,440 --> 00:02:01,040 couple $1000, that may not seem like a big deal when you're 45 00:02:01,040 --> 00:02:03,920 putting 10s of thousands of dollars into an investment. 46 00:02:03,920 --> 00:02:06,560 It's important for me to have a high degree of predictability. 47 00:02:06,600 --> 00:02:09,160 I want to know that I'll make money on every single company 48 00:02:09,160 --> 00:02:12,000 that I'll buy, or at the very least that I have an incredibly 49 00:02:12,000 --> 00:02:15,280 high chance of making money. What Amazon and Google offer is 50 00:02:15,280 --> 00:02:18,960 not the highest rewards possible in the market, but incredibly 51 00:02:18,960 --> 00:02:22,320 good risk adjusted rewards. They are both growing quickly 52 00:02:22,400 --> 00:02:24,360 and they're highly predictable companies. 53 00:02:24,360 --> 00:02:26,640 And between the two companies, today I've decided to buy 54 00:02:26,640 --> 00:02:28,080 Google. Amazon, I believe, has 55 00:02:28,080 --> 00:02:31,520 incredible durability and long term potential, so having a 56 00:02:31,520 --> 00:02:33,400 large position in this company is fine. 57 00:02:33,680 --> 00:02:37,160 But when I look at Google over the next three to six months, I 58 00:02:37,160 --> 00:02:39,600 could see a lot change. The reason I believe that Google 59 00:02:39,600 --> 00:02:43,040 could move up quickly in the short term is because right now 60 00:02:43,040 --> 00:02:44,520 I believe the company's mispriced. 61 00:02:44,520 --> 00:02:46,880 I think it's undervalued. It's an exceptional company 62 00:02:46,880 --> 00:02:49,480 trading at an 18 to 19 Ford PE ratio. 63 00:02:49,480 --> 00:02:51,800 Based on the fundamentals, Google's being priced with a lot 64 00:02:51,800 --> 00:02:53,960 of risk. Now, some people will argue, and 65 00:02:53,960 --> 00:02:56,680 I believe that this is one of the worst arguments of any 66 00:02:56,680 --> 00:03:00,680 analyst, is they'll argue that Google can't be mispriced 67 00:03:00,920 --> 00:03:03,800 because it's such a big company. There's already so many people 68 00:03:03,800 --> 00:03:06,240 looking at it, there's already so many analysts covering it. 69 00:03:06,600 --> 00:03:09,040 How could it be mispriced? Wouldn't the efficient market 70 00:03:09,040 --> 00:03:12,000 kick in? Would it, after all, everybody 71 00:03:12,000 --> 00:03:15,560 knowing about Google's business cause it to be efficiently and 72 00:03:15,560 --> 00:03:18,000 accurately priced? Let's go ahead and just observe 73 00:03:18,000 --> 00:03:21,200 that theory in action. Just a few years ago, one of the 74 00:03:21,200 --> 00:03:23,720 biggest winners in My Portfolio is Netflix. 75 00:03:24,080 --> 00:03:28,040 It's a $147,000 position, the majority of that being gains 76 00:03:28,240 --> 00:03:30,480 $91,000 in the green on this stock. 77 00:03:30,480 --> 00:03:35,200 Looking at the case of Netflix, this company dropped 74% in just 78 00:03:35,200 --> 00:03:38,080 a few months because it missed 1,000,000 subscribers. 79 00:03:38,520 --> 00:03:41,960 It lost 1,000,000 subscribers along its growth, going from 80 00:03:41,960 --> 00:03:46,040 around $700.00 per share, down below $200 per share. 81 00:03:46,440 --> 00:03:50,120 Now the company has recovered all the way up to around $1300 82 00:03:50,120 --> 00:03:53,480 per share, going up five to six X from the Lowe's. 83 00:03:54,000 --> 00:03:57,800 Now this is a company that looks like investors don't know how to 84 00:03:57,800 --> 00:03:59,840 price it. They didn't know what it was 85 00:03:59,840 --> 00:04:02,760 worth in 2022. In fact, when we look at some of 86 00:04:02,760 --> 00:04:05,400 the content of some of the biggest channels, some of the 87 00:04:05,480 --> 00:04:09,920 the biggest media personalities in 2022, this is what it looked 88 00:04:09,920 --> 00:04:12,440 like. We have from Cold Fusion a video 89 00:04:12,440 --> 00:04:17,839 that got 1.8 million views. This video was a 13 minute essay 90 00:04:18,040 --> 00:04:21,600 on why Netflix screwed up, how the companies devastated, how 91 00:04:21,600 --> 00:04:25,840 everything has gone wrong. It was the fall of Netflix that 92 00:04:25,840 --> 00:04:29,400 got 1.8 million views and that was during a time period where 93 00:04:29,400 --> 00:04:33,280 Netflix was $180 per share. We have another one here from a 94 00:04:33,280 --> 00:04:36,680 very popular channel, the company man, Netflix, the rise 95 00:04:36,680 --> 00:04:38,720 and fall. We have another one, The rise 96 00:04:38,720 --> 00:04:41,040 and fall of Netflix. These are three videos going 97 00:04:41,040 --> 00:04:44,040 over the destruction of this company, how it's now being out 98 00:04:44,040 --> 00:04:46,880 competed, how there's more streaming services than ever, 99 00:04:47,160 --> 00:04:49,840 how competition came in and disrupted their business model, 100 00:04:50,040 --> 00:04:53,640 how they raise prices too much, how they offended customers with 101 00:04:53,640 --> 00:04:55,080 their password sharing crackdown. 102 00:04:55,520 --> 00:04:58,800 You can watch all of them and they go over a very grim picture 103 00:04:58,800 --> 00:05:02,680 of the company. While ironically, this was the 104 00:05:02,760 --> 00:05:05,960 best time to be buying a Netflix stock, where the general 105 00:05:05,960 --> 00:05:10,000 consensus of the media and consumers that know the company 106 00:05:10,000 --> 00:05:13,600 in depth was the most negative was the best time to be buying 107 00:05:13,600 --> 00:05:15,800 the company. So we know that just a couple 108 00:05:15,800 --> 00:05:17,960 years ago they got Netflix wrong. 109 00:05:18,160 --> 00:05:20,800 The general media, the consensus, the consumers, all 110 00:05:20,800 --> 00:05:23,760 the big personalities misunderstood Netflix to a 111 00:05:23,760 --> 00:05:26,320 dramatic degree. And that was Netflix, which is a 112 00:05:26,320 --> 00:05:29,400 very well known, easy to understand company by the 113 00:05:29,400 --> 00:05:33,000 consumer, or so they thought. Really, Netflix was a lot more 114 00:05:33,000 --> 00:05:35,120 difficult to understand than people realized. 115 00:05:35,440 --> 00:05:37,600 And I would argue the same from Google. 116 00:05:37,600 --> 00:05:40,760 Google has a more complex set of assets than Netflix. 117 00:05:41,200 --> 00:05:43,520 Netflix is a very straightforward subscription 118 00:05:43,520 --> 00:05:46,440 company. Google owns YouTube, Waymo, they 119 00:05:46,440 --> 00:05:49,560 have Google Cloud, they have all these office type of they have a 120 00:05:49,560 --> 00:05:51,400 bunch of cloud hosting and applications. 121 00:05:51,680 --> 00:05:53,880 They have a bunch of Longshot bets in different companies. 122 00:05:54,160 --> 00:05:56,200 And of course they have their search engine and their AI 123 00:05:56,200 --> 00:05:58,520 models. Google's a far more complex, 124 00:05:58,520 --> 00:06:01,680 difficult company to understand than one like Netflix. 125 00:06:02,040 --> 00:06:05,560 So if there's a chance that investors can misunderstand a 126 00:06:05,560 --> 00:06:08,480 company, I believe there's a strong possibility that they're 127 00:06:08,480 --> 00:06:11,520 still getting Google wrong, even though it's right before our 128 00:06:11,520 --> 00:06:13,560 eyes. If we look at some examples of 129 00:06:13,560 --> 00:06:17,200 this, some of the things I see currently about Google are very 130 00:06:17,200 --> 00:06:21,080 reminiscent of what we saw a year or two ago about Netflix. 131 00:06:21,200 --> 00:06:24,280 Now, this is a smaller you tuber, 37,000 views. 132 00:06:24,280 --> 00:06:26,720 Not bad, but it's not a major one. 133 00:06:27,120 --> 00:06:30,480 Here we have a major one Mr. who's the boss gets millions of 134 00:06:30,480 --> 00:06:32,800 views. Why Google search is falling 135 00:06:32,800 --> 00:06:38,120 apart. 4.4 million views only eight months ago and then in the 136 00:06:38,120 --> 00:06:42,760 biggest text possible, it sucks with devil bullhorns on top of 137 00:06:42,760 --> 00:06:45,120 the Google logo and then it looks like blood on it. 138 00:06:45,240 --> 00:06:47,640 This is about as bad of a look as you can get as a company. 139 00:06:47,640 --> 00:06:50,800 It looks like something's going deeply, deeply wrong with 140 00:06:50,800 --> 00:06:53,120 Google. Then we have once the biggest 141 00:06:53,120 --> 00:06:57,240 channel on YouTube, the most subscribed at one point which is 142 00:06:57,280 --> 00:07:00,360 PewDiePie and him saying I'm done with Google. 143 00:07:00,800 --> 00:07:05,000 Crossing out YouTube in this video is a 23 minute video going 144 00:07:05,000 --> 00:07:08,240 over instructions on how to change your default search 145 00:07:08,240 --> 00:07:11,560 engine from Google to DuckDuckGo and other various search 146 00:07:11,560 --> 00:07:15,120 engines, going on about how Google invades your privacy, how 147 00:07:15,120 --> 00:07:18,560 bad the Google service is, how the Google search is no longer 148 00:07:18,560 --> 00:07:21,080 as good as it used to be, and so on and so forth. 149 00:07:21,280 --> 00:07:24,320 There's major publications continually talking about how 150 00:07:24,320 --> 00:07:27,360 Google search is on its end of life, its last breath. 151 00:07:27,440 --> 00:07:29,600 Google as you know it is slowly dying. 152 00:07:29,880 --> 00:07:32,560 The search engine is having a midlife crisis, and now that's 153 00:07:32,560 --> 00:07:34,560 your problem. This one's by Vox. 154 00:07:34,720 --> 00:07:37,600 So we have a company that has broad negative media coverage by 155 00:07:37,920 --> 00:07:40,800 almost every mainstream publication as well as even 156 00:07:41,080 --> 00:07:43,440 online creators than the general public. 157 00:07:43,720 --> 00:07:46,440 Most people are under the impression that Google search is 158 00:07:46,440 --> 00:07:49,560 dying, but most people don't read earnings reports. 159 00:07:49,640 --> 00:07:52,080 One of the most difficult parts of being an investor is to be 160 00:07:52,080 --> 00:07:55,600 able to look at the data to make good judgments on the actual 161 00:07:55,600 --> 00:07:58,640 information and not just buy into whatever the prevailing 162 00:07:58,640 --> 00:08:01,000 sentiment is. We know right now the prevailing 163 00:08:01,000 --> 00:08:02,960 sentiment is that Google search is dying. 164 00:08:03,400 --> 00:08:06,440 But when we look at the data and we look at how it's growing over 165 00:08:06,440 --> 00:08:10,600 time, Google search is growing 12% year over year. 166 00:08:11,240 --> 00:08:14,080 In fact, it continues to grow virtually every quarter. 167 00:08:14,440 --> 00:08:18,880 It slowed down a little bit in Q4 of 2022 to Q1 of 2023. 168 00:08:19,280 --> 00:08:21,760 So there is a a little bit of a slow down there, but it 169 00:08:21,760 --> 00:08:24,720 continued to grow over time. Google leadership also noted 170 00:08:24,720 --> 00:08:28,000 that it's not just ad volume increasing or ad rates 171 00:08:28,000 --> 00:08:30,880 increasing, it's also the amount of users. 172 00:08:30,880 --> 00:08:33,039 There's more users and there's more queries. 173 00:08:33,400 --> 00:08:35,880 They're searching more, they're engaging more with it. 174 00:08:36,240 --> 00:08:39,760 So the product is growing in the number of users, the amount that 175 00:08:39,760 --> 00:08:43,000 users frequent the search engine, the types of ways they 176 00:08:43,000 --> 00:08:47,800 search and in the ad rates, all combining to a nice 12% growth 177 00:08:48,160 --> 00:08:53,360 on a business already doing over $150 billion, now it's doing 178 00:08:53,360 --> 00:08:55,920 $200 billion in the last 12 months. 179 00:08:55,960 --> 00:08:58,840 This is a fast growing business for a dying business. 180 00:08:58,840 --> 00:09:00,720 Do we see the death in the numbers? 181 00:09:01,160 --> 00:09:02,960 Well, maybe it's just right around the corner. 182 00:09:03,080 --> 00:09:05,320 Well, that's what the narrative is, that the death of Google 183 00:09:05,320 --> 00:09:08,040 hasn't happened yet, but it's right around the corner. 184 00:09:08,080 --> 00:09:09,600 You know what happens with those narratives? 185 00:09:09,600 --> 00:09:12,200 Well, one of two things. Either the narrative really 186 00:09:12,200 --> 00:09:14,360 plays out and Google search does die. 187 00:09:14,440 --> 00:09:17,320 It's right around the corner. And then Google search starts to 188 00:09:17,320 --> 00:09:19,840 slow down. The revenue stops growing, and 189 00:09:19,840 --> 00:09:22,360 then it starts to shrink. Management has to come out and 190 00:09:22,360 --> 00:09:25,560 say that the volume of search is going down and the bears would 191 00:09:25,560 --> 00:09:28,280 be proven right in that case. And on the other side, there's 192 00:09:28,280 --> 00:09:30,160 another narrative that has to play out. 193 00:09:30,320 --> 00:09:32,360 We can look again at the example of Netflix. 194 00:09:32,960 --> 00:09:35,480 When the narrative was that Netflix's growth was done, 195 00:09:35,720 --> 00:09:38,440 that's when the stock went down 75%. 196 00:09:38,760 --> 00:09:41,120 And if you can believe it, it was because of these quarters 197 00:09:41,120 --> 00:09:43,840 right here. We had right there a quarter 198 00:09:43,840 --> 00:09:46,880 where Netflix had 221.6 million subscribers. 199 00:09:47,200 --> 00:09:50,800 It went to 220.6. The narrative became that 200 00:09:50,800 --> 00:09:53,080 Netflix was dying. But when Netflix started to grow 201 00:09:53,080 --> 00:09:56,960 again, even past where they just lost their subscribers past this 202 00:09:56,960 --> 00:10:00,120 quarter, Netflix stock did not react right away. 203 00:10:00,760 --> 00:10:05,000 In fact, in Q4 of 2022, Netflix was still at around $200 per 204 00:10:05,000 --> 00:10:06,920 share. Now, I do not believe that 205 00:10:06,920 --> 00:10:10,440 Google's at the same value that Netflix was back in 2022. 206 00:10:10,480 --> 00:10:13,520 I don't think it's that extreme, but I would say that I think 207 00:10:13,520 --> 00:10:16,440 that Google will prove out this theory over time. 208 00:10:16,440 --> 00:10:19,480 Over time, as it grows, the bear case will be minimized. 209 00:10:19,720 --> 00:10:22,840 The stock could be RE rated to a much higher multiple, and the 210 00:10:22,840 --> 00:10:25,760 combination of a RE rating multiple plus earnings per share 211 00:10:25,760 --> 00:10:29,280 growth equates to enormous gains in a stock where stock can go up 212 00:10:29,280 --> 00:10:33,720 203050 100% from its current share price. 213 00:10:33,720 --> 00:10:37,240 This narrative that Google search is in dire trouble is an 214 00:10:37,240 --> 00:10:39,800 ingrained narrative in media right now. 215 00:10:40,120 --> 00:10:43,280 It takes time to uproot and disprove these narratives. 216 00:10:43,360 --> 00:10:45,720 When we look at Google search, I believe it has to continue 217 00:10:45,720 --> 00:10:48,840 growing for at least two to three more quarters for this 218 00:10:48,840 --> 00:10:52,240 narrative to fully die out. We need another full year of 219 00:10:52,240 --> 00:10:55,120 growth and then I think this narrative will be dead. 220 00:10:55,400 --> 00:10:57,840 Google stock will be materially rated higher. 221 00:10:57,840 --> 00:11:01,200 So the bull case of Google is the death of this narrative, 222 00:11:01,200 --> 00:11:02,880 which is the death of Google search. 223 00:11:03,120 --> 00:11:06,080 When that narrative dies, this company could re rate back to 224 00:11:06,080 --> 00:11:11,040 A22PE25 PE ratio. It'd go from 180 to around 225 00:11:11,040 --> 00:11:14,000 2/22/30. We could see that happen in a 226 00:11:14,000 --> 00:11:16,600 short amount of time if we continually get good quarters. 227 00:11:17,280 --> 00:11:19,320 But there's always the downside in every company. 228 00:11:19,320 --> 00:11:22,160 What if we are wrong on Google? What if the search business does 229 00:11:22,160 --> 00:11:26,080 get pressured by ChatGPT? What if the bears are right in 230 00:11:26,080 --> 00:11:27,760 that regard? Well, this is where I believe 231 00:11:27,760 --> 00:11:30,680 the risk side of the risk adjusted returns kicks in. 232 00:11:31,200 --> 00:11:33,200 When I look at the downside of Google, there's a couple things 233 00:11:33,200 --> 00:11:34,680 that gives me a little bit of confidence. 234 00:11:34,720 --> 00:11:37,800 One of them is that it's already trading at a relatively low PE 235 00:11:37,800 --> 00:11:40,000 ratio. Can the multiples go lower? 236 00:11:40,080 --> 00:11:44,680 Sure, it could go down to a 13 or a 12 PE ratio, but there is a 237 00:11:44,680 --> 00:11:47,400 valuation floor for Google. The other part of this risk 238 00:11:47,400 --> 00:11:50,200 adjusted return is looking at the different businesses that 239 00:11:50,200 --> 00:11:52,320 Google's in. For example, if we just look at 240 00:11:52,320 --> 00:11:54,600 two different lines of business, and these are ones that I 241 00:11:54,600 --> 00:11:57,720 continually highlight that seem like they're being entirely 242 00:11:57,720 --> 00:12:01,120 ignored, and the valuation of Google is YouTube and Google 243 00:12:01,280 --> 00:12:04,680 Cloud combined growth of 21% per year. 244 00:12:04,840 --> 00:12:07,840 It could be worth slightly more than Netflix, which Netflix is 245 00:12:07,840 --> 00:12:10,640 currently worth over $500 billion. 246 00:12:10,840 --> 00:12:13,920 It's growing its share time of TV faster than any streaming 247 00:12:13,920 --> 00:12:15,960 company. So Google right now trades at 248 00:12:15,960 --> 00:12:18,840 around a $2.1 trillion market cap. 249 00:12:19,240 --> 00:12:23,160 And just this aspect of the company could be worth 50% of it 250 00:12:23,280 --> 00:12:26,000 in a couple years. Then we have Google Cloud, which 251 00:12:26,000 --> 00:12:29,360 does more revenue than YouTube and it's growing faster than 252 00:12:29,360 --> 00:12:31,480 YouTube. If YouTube's worth maybe 6, $100 253 00:12:31,480 --> 00:12:36,720 billion, Google Cloud is likely worth 7 hundred, $800 billion At 254 00:12:36,720 --> 00:12:39,960 this point in time. I believe just these two assets 255 00:12:39,960 --> 00:12:43,920 alone could be worth the entire market cap of Google in less 256 00:12:43,920 --> 00:12:46,800 than five years. Meaning that even if the death 257 00:12:46,800 --> 00:12:50,760 of Google search is true to an alarming extent, far more than 258 00:12:50,760 --> 00:12:53,880 anyone's predicting, where literally nobody uses Google 259 00:12:53,880 --> 00:12:57,000 search ever again, these two businesses in and of themselves 260 00:12:57,000 --> 00:12:59,680 could support Google stock price in five years. 261 00:12:59,760 --> 00:13:02,360 So that's why I continue to buy this this company and I talk 262 00:13:02,360 --> 00:13:04,840 about it frequently. Some people say that I mentioned 263 00:13:04,840 --> 00:13:07,920 the same group of companies over and over again, and I do that 264 00:13:07,920 --> 00:13:10,280 because I believe they're currently a good buy. 265 00:13:10,680 --> 00:13:14,120 I believe Google, Amazon, Equifax, that these companies 266 00:13:14,120 --> 00:13:17,520 are sound buys right now in an otherwise increasingly expensive 267 00:13:17,520 --> 00:13:19,480 market. And I did the same thing during 268 00:13:19,480 --> 00:13:21,480 Netflix. Lots of people over the years 269 00:13:21,480 --> 00:13:23,920 complained that I talked too much about Netflix. 270 00:13:24,040 --> 00:13:26,720 I made video after video about this company because I was 271 00:13:26,720 --> 00:13:29,440 convinced it was value. I believe the same thing about 272 00:13:29,440 --> 00:13:32,200 Google today, and I'll continue to make videos about it until I 273 00:13:32,200 --> 00:13:34,280 believe otherwise. Now that we've gone over that, 274 00:13:34,280 --> 00:13:35,720 let's go ahead and jump into some news. 275 00:13:35,800 --> 00:13:39,760 We have NVIDIA hitting a $4 trillion market cap, and it's 276 00:13:39,760 --> 00:13:43,520 the first company to ever do so. Nvidia's growth has made it more 277 00:13:43,520 --> 00:13:45,280 valuable than all of these companies. 278 00:13:45,400 --> 00:13:48,400 It's the world's most valuable company, surpassing Microsoft 279 00:13:48,400 --> 00:13:51,000 and Apple. Now they're doing this while 280 00:13:51,000 --> 00:13:54,240 having the Chinese market largely closed off to them. 281 00:13:54,240 --> 00:13:56,840 We're handicapping NVIDIA, and they're still the biggest 282 00:13:56,840 --> 00:13:59,520 company in the world. This is just incredible again to 283 00:13:59,520 --> 00:14:03,120 see now the stock, this is at the $4 trillion market cap, the 284 00:14:03,120 --> 00:14:06,160 company's up 18% year to date and the other companies that it 285 00:14:06,160 --> 00:14:08,240 surpassed are also not doing too poorly. 286 00:14:08,560 --> 00:14:11,320 Microsoft just passed $500 per share. 287 00:14:11,320 --> 00:14:14,760 NVIDIA has potential to grow faster, but I still believe it's 288 00:14:14,760 --> 00:14:18,640 less reliable or predictable than Microsoft just by virtue of 289 00:14:18,640 --> 00:14:20,960 their subscription revenue. And moving on, we also get to 290 00:14:20,960 --> 00:14:24,400 the news that Fund Smith with Terry Smith as its leader 291 00:14:24,680 --> 00:14:27,160 released their semi annual performance review. 292 00:14:27,160 --> 00:14:30,240 This is their six month update and this shows a fund that's 293 00:14:30,240 --> 00:14:32,640 continually struggling and this time they had a lot of 294 00:14:32,640 --> 00:14:35,280 challenges they're facing. The Fundsmith equity portfolio 295 00:14:35,280 --> 00:14:40,400 is down 1.9% year to date. Their benchmark is up .1%. 296 00:14:40,520 --> 00:14:43,200 Now, keep in mind that Fundsmith does benchmark themselves 297 00:14:43,200 --> 00:14:46,720 against the MSI World Index. They use that as the index 298 00:14:46,720 --> 00:14:49,000 because they're invested in international stocks as well as 299 00:14:49,080 --> 00:14:51,120 U.S. stocks. But it's important to note that 300 00:14:51,120 --> 00:14:56,200 the MSCI World Index has underperformed both the S&P 500 301 00:14:56,240 --> 00:14:59,440 and the QQQ. So this performance is not great 302 00:14:59,440 --> 00:15:03,320 by the looks of it. And this comes after years of 303 00:15:03,320 --> 00:15:05,960 underperformance from Terry Smith's Fundsmith. 304 00:15:06,240 --> 00:15:09,040 For the past few years, he's made a series of mistakes. 305 00:15:09,120 --> 00:15:12,080 The stocks that have done the most poorly is Novo Nordisk and 306 00:15:12,200 --> 00:15:14,720 Louis Vuitton. These stocks have both detracted 307 00:15:14,720 --> 00:15:17,720 from their top winners. He says that Novo Nordisk alone 308 00:15:17,720 --> 00:15:20,200 accounted for almost all the underperformance during this 309 00:15:20,200 --> 00:15:22,640 period. Its ability to snatch defeat 310 00:15:22,640 --> 00:15:25,800 from the jaws of victory in respect to its leadership in 311 00:15:25,800 --> 00:15:28,120 weight loss drugs continues to be remarkable. 312 00:15:28,440 --> 00:15:31,880 Its inability to deal with the US legal and regulatory systems 313 00:15:31,880 --> 00:15:34,920 approach to its success would be interesting to observe from a 314 00:15:34,920 --> 00:15:37,520 safe distance. He does not have kind remarks 315 00:15:37,520 --> 00:15:41,280 for Novo Nordisk, another Danish medical company, Coloplast. 316 00:15:41,360 --> 00:15:43,680 Coloplast was a company whose revenue growth rate was 317 00:15:43,680 --> 00:15:46,120 metronomic. Probably not coincidentally, 318 00:15:46,320 --> 00:15:48,720 following two major acquisitions, it had encountered 319 00:15:48,720 --> 00:15:50,560 a series of operational failures. 320 00:15:50,720 --> 00:15:54,360 So Terry Smith is blaming these two companies and operational 321 00:15:54,360 --> 00:15:58,800 complexities, as well as this company, Novo Nordisk snatching 322 00:15:58,800 --> 00:16:01,640 defeat from the jaws of victory. It seems like he's trying to 323 00:16:01,640 --> 00:16:04,680 throw the blame on the companies, which is fine. 324 00:16:04,680 --> 00:16:07,360 You can highlight how companies have underperformed and what 325 00:16:07,360 --> 00:16:10,040 went wrong with the company, but he is the one that chose to 326 00:16:10,040 --> 00:16:12,760 invest in these companies, ones that are in the Pharmaceutical 327 00:16:12,760 --> 00:16:16,160 industry, which is notably difficult to make predictable 328 00:16:16,160 --> 00:16:18,680 investments in. This is precisely the reason 329 00:16:18,680 --> 00:16:21,600 that I avoid these very companies in My Portfolio. 330 00:16:22,040 --> 00:16:24,920 Although the numbers can look good, the products can look 331 00:16:24,920 --> 00:16:27,120 great and well needed with lots of demand. 332 00:16:27,640 --> 00:16:29,800 They have incredible operational complexity. 333 00:16:30,040 --> 00:16:32,360 They have lots of red tape with regulations. 334 00:16:32,640 --> 00:16:35,680 They have lots of lawsuit risk. There's lots of acquisitions. 335 00:16:35,880 --> 00:16:38,560 There's so many moving variables that it's very difficult to have 336 00:16:38,560 --> 00:16:41,640 any degree of predictability. So the very things he's 337 00:16:41,640 --> 00:16:44,720 complaining about with these companies in particular was also 338 00:16:44,720 --> 00:16:47,680 his choice to invest in this industry and take on these 339 00:16:47,680 --> 00:16:49,360 risks. Now, one thing where he has 340 00:16:49,360 --> 00:16:52,480 probably a better excuse here is the US dollar. 341 00:16:52,560 --> 00:16:54,680 The majority of companies we invest in are based in the 342 00:16:54,680 --> 00:16:57,280 United States. They report the US dollar and 343 00:16:57,280 --> 00:16:59,720 more importantly have the majority of their revenues in 344 00:16:59,720 --> 00:17:02,880 this currency. Therefore, the move in the pound 345 00:17:02,880 --> 00:17:06,240 versus the US dollar exchange rate from 1.25 at the beginning 346 00:17:06,240 --> 00:17:11,160 of the year to 1.37 at the end of June, a 9% depreciation has 347 00:17:11,160 --> 00:17:13,280 had a major effect. This can be seen in the fact 348 00:17:13,280 --> 00:17:17,680 that our U.S. dollar denominated fund was up by 6.3% in the first 349 00:17:17,680 --> 00:17:20,280 half of 2025. Now, it's good to let investors 350 00:17:20,280 --> 00:17:23,680 know how the changes in currency are impacting your performance, 351 00:17:23,680 --> 00:17:25,760 and it's certainly doing this in the negative this way. 352 00:17:25,960 --> 00:17:29,080 But it's also important to realize that Fundsmith has been 353 00:17:29,080 --> 00:17:32,000 on the other side of this for the better part of a decade. 354 00:17:32,400 --> 00:17:35,240 For the past 10 years, the US dollar has been incredibly 355 00:17:35,240 --> 00:17:37,800 strong, which is amplified Fundsmith's returns. 356 00:17:38,320 --> 00:17:41,000 So he's highlighting that it's a problem now, but they didn't 357 00:17:41,000 --> 00:17:43,480 highlight it quite as much over the past 10 years when the US 358 00:17:43,480 --> 00:17:47,200 dollar was working for them. Another eyebrow raising thing is 359 00:17:47,280 --> 00:17:50,040 the continual decisions that fund Smith's making. 360 00:17:50,360 --> 00:17:52,080 And this is where I'll be a little bit more critical of 361 00:17:52,080 --> 00:17:54,360 Terry Smith here. He says during the period we 362 00:17:54,360 --> 00:17:57,960 began accumulating stakes in Zoetis, the animal health 363 00:17:57,960 --> 00:18:00,000 company. Now, I know nothing about that 364 00:18:00,000 --> 00:18:03,840 company, but the other one here I do know something about, which 365 00:18:03,840 --> 00:18:06,520 is Intuit. Well, just a couple years ago, 366 00:18:06,520 --> 00:18:08,840 Fun Smith had a lot to say about Intuit. 367 00:18:08,920 --> 00:18:12,440 In December of 2022, Fun Smith noted that they're selling out 368 00:18:12,440 --> 00:18:13,400 of Intuit. So Fun. 369 00:18:13,400 --> 00:18:17,480 Smith sold into it when it was trading at a price of $387. 370 00:18:17,960 --> 00:18:20,480 Now Terry Smith is buying back into the company at roughly 371 00:18:20,480 --> 00:18:22,360 double the share price that they had sold it. 372 00:18:22,400 --> 00:18:25,320 Now I don't think it's the worst thing ever to buy back into a 373 00:18:25,320 --> 00:18:28,160 stock that you were previously bearish on, but I don't think 374 00:18:28,160 --> 00:18:30,240 this is also the best moves from Fundsmith. 375 00:18:30,280 --> 00:18:33,680 I continually see a trend of mismanagement of key positions 376 00:18:33,680 --> 00:18:35,240 hurting their long term performance. 377 00:18:35,400 --> 00:18:38,080 Intuit's fundamentals were incredibly strong at the time 378 00:18:38,080 --> 00:18:40,400 they sold the company. Their panic over the accounting 379 00:18:40,400 --> 00:18:43,120 of stock based compensation causing them to exit the 380 00:18:43,120 --> 00:18:45,520 position was not a good metric to sell off. 381 00:18:45,520 --> 00:18:48,240 So hopefully Fundsmith will turn this around over time, but so 382 00:18:48,240 --> 00:18:50,280 far I see them continuing to struggle. 383 00:18:50,440 --> 00:18:53,400 Now moving on, we get to some new developments in the world of 384 00:18:53,400 --> 00:18:55,480 credit scoring and home mortgages. 385 00:18:55,480 --> 00:18:58,920 Lenders can now use the Vantage Score 4 Point O model or the 386 00:18:58,920 --> 00:19:02,080 FICO 10T model when issuing loans that get sold to Fannie 387 00:19:02,080 --> 00:19:04,000 and Freddie, according to their regulator. 388 00:19:04,000 --> 00:19:07,760 The two mortgage giants package loans into bonds that get sold 389 00:19:07,760 --> 00:19:11,080 to investors with government backing, and their underwriting 390 00:19:11,080 --> 00:19:14,680 models are widely used in the $13 trillion mortgage market. 391 00:19:15,120 --> 00:19:19,400 Now the FHFA, which is the regulatory body of this, their 392 00:19:19,400 --> 00:19:22,560 decision reverses a plan that would have required both FICO 393 00:19:22,720 --> 00:19:24,880 and a Vantage score on every loan. 394 00:19:24,880 --> 00:19:27,560 That proposal drew push back from lenders over the cost and 395 00:19:27,560 --> 00:19:30,520 complexity. Previously, only FICO scores 396 00:19:30,520 --> 00:19:32,920 were accepted. It says that unlike traditional 397 00:19:32,920 --> 00:19:37,200 FICO models, the Vantage score 4 point O incorporates alternative 398 00:19:37,200 --> 00:19:40,560 data such as rent, utility, telecom, payment history. 399 00:19:40,600 --> 00:19:43,800 Now, FICO stock has been decimated after this change. 400 00:19:44,080 --> 00:19:47,560 The stock was down around 15 to 17% yesterday. 401 00:19:47,960 --> 00:19:52,880 So we saw a big move down yesterday from around $1870 down 402 00:19:52,880 --> 00:19:56,880 to 1700, and now it's dropping further to 1593. 403 00:19:57,120 --> 00:20:00,080 We have another 6 1/2 percent move down and the reason why is 404 00:20:00,080 --> 00:20:02,560 because this is a very big mandate from the government. 405 00:20:02,880 --> 00:20:06,000 Allowing access to other scoring models, particularly the Vantage 406 00:20:06,000 --> 00:20:09,640 score makes it so FICO has a potential competitor when 407 00:20:09,640 --> 00:20:11,200 looking at these important mortgages. 408 00:20:11,200 --> 00:20:14,960 We know this is a big negative for FICO and a win for Vanish 409 00:20:14,960 --> 00:20:17,840 score, but we don't know the extent most analysts. 410 00:20:18,000 --> 00:20:21,360 Say it isn't clear that FICO will lose its dominant position 411 00:20:21,360 --> 00:20:24,400 in the mortgage market, and I think it's very unlikely they'll 412 00:20:24,400 --> 00:20:26,920 lose their dominant position. If anything, they'll lose a 413 00:20:26,920 --> 00:20:28,800 couple percentage points of market share. 414 00:20:29,320 --> 00:20:33,000 It's very difficult to see how this plays out, but my guess is 415 00:20:33,000 --> 00:20:36,120 over the upcoming quarters when we see what FICO reports that 416 00:20:36,120 --> 00:20:38,680 they'll still put up incredibly strong numbers, I believe we'll 417 00:20:38,680 --> 00:20:40,200 see a notable rebound in the stock. 418 00:20:40,320 --> 00:20:41,640 Now we move on to another news story. 419 00:20:41,640 --> 00:20:44,800 Here we have more Google News. This time it's Waymo specific. 420 00:20:45,080 --> 00:20:48,200 Waymo is offering accounts for teenagers to ride in their 421 00:20:48,200 --> 00:20:50,440 driverless cars. Waymo announced on Tuesday that 422 00:20:50,440 --> 00:20:54,000 it's offering accounts for teens 14 to 17, starting in Phoenix. 423 00:20:54,240 --> 00:20:56,440 I didn't know this, but previously users were required 424 00:20:56,440 --> 00:20:59,240 to be at least 18 years old to sign up for a Waymo account. 425 00:20:59,280 --> 00:21:02,200 I guess that makes sense. They want just adults trying out 426 00:21:02,200 --> 00:21:04,320 their new product. But it also shows that Waymo is 427 00:21:04,320 --> 00:21:06,080 not even being fully utilized right now. 428 00:21:06,400 --> 00:21:09,160 They're missing out an entire demographic, which is teenagers, 429 00:21:09,640 --> 00:21:11,360 and they they say that they're going to customize the 430 00:21:11,360 --> 00:21:14,520 experience specifically for teenagers, saying Waymo will 431 00:21:14,520 --> 00:21:18,080 offer specifically trained rider support agents during rides 432 00:21:18,080 --> 00:21:20,920 hailed by teens and Lupin parents if needed. 433 00:21:21,200 --> 00:21:23,920 Teens can also share their trip status with their parents for 434 00:21:23,920 --> 00:21:27,080 real time updates on their progress, and parents receive a 435 00:21:27,200 --> 00:21:29,320 ride receipt. This may seem odd at first, but 436 00:21:29,320 --> 00:21:31,840 I think it makes a lot of sense given the different choices. 437 00:21:32,240 --> 00:21:35,280 If a parent is choosing between having their teenager take a 438 00:21:35,280 --> 00:21:39,760 ride in an Uber with a random other human adult that you don't 439 00:21:39,760 --> 00:21:41,840 know anything about, you don't know their history, you don't 440 00:21:41,840 --> 00:21:44,400 know which one's going to pick them up other than their Uber 441 00:21:44,400 --> 00:21:48,200 star rating, sending your your kid off your teenager in that 442 00:21:48,200 --> 00:21:51,320 situation seems far less favorable than sending them off 443 00:21:51,320 --> 00:21:53,760 in a way MO where you know no one else is going to be in the 444 00:21:53,760 --> 00:21:56,160 vehicle. The teenager will be completely 445 00:21:56,160 --> 00:22:00,080 alone and the safety record of the vehicle is much better than 446 00:22:00,080 --> 00:22:03,640 the average of a human driver. Then you add on that all the 447 00:22:03,640 --> 00:22:06,440 different controls they have here with status updates, 448 00:22:06,720 --> 00:22:10,000 specific software that tells the parents where they are in the 449 00:22:10,000 --> 00:22:12,120 vehicle. It seems far more favorable than 450 00:22:12,120 --> 00:22:14,600 other forms of transportation. I bet a lot of parents would 451 00:22:14,600 --> 00:22:17,320 prefer this over having their teenagers drive themselves. 452 00:22:17,440 --> 00:22:19,600 Now, another thing to look at here in terms of the business 453 00:22:19,600 --> 00:22:22,560 side is Waymo is expanding its total addressable market. 454 00:22:22,840 --> 00:22:26,680 If they now allow teenagers below 18 to enter into vehicles 455 00:22:26,680 --> 00:22:29,600 and they have have these special software for it, this opens up a 456 00:22:29,600 --> 00:22:32,400 whole new category of rider. And this may be a really good 457 00:22:32,400 --> 00:22:36,040 category for Waymo. A lot of teenagers in particular 458 00:22:36,040 --> 00:22:38,800 may not have driving licenses. They may not have cars 459 00:22:38,800 --> 00:22:40,880 themselves. A lot of them can't afford 460 00:22:40,880 --> 00:22:42,520 insurance. They haven't gotten around to 461 00:22:42,520 --> 00:22:44,920 getting a driver's license, especially if they're younger 462 00:22:44,920 --> 00:22:47,240 than 16. They can't even get a driver's 463 00:22:47,240 --> 00:22:50,360 license in most states. So having autonomous ride 464 00:22:50,360 --> 00:22:52,960 hailing may be their only form of transportation. 465 00:22:53,360 --> 00:22:56,280 The fact that it's safer than them driving themselves is just 466 00:22:56,280 --> 00:22:58,400 an added bonus. So this may actually be a 467 00:22:58,400 --> 00:23:01,720 significant use case for Waymo. Not only are they expanding 468 00:23:01,720 --> 00:23:04,480 geographically in different cities, but they're expanding 469 00:23:04,480 --> 00:23:06,840 within their cities the total addressable market. 470 00:23:06,840 --> 00:23:09,680 When we look at what else Waymo's doing, they're now one 471 00:23:09,680 --> 00:23:12,280 step closer to New York City. They're doing testing in New 472 00:23:12,280 --> 00:23:15,000 York to try to convince regulators that they can make it 473 00:23:15,000 --> 00:23:17,240 work. Waymo's first self driving taxis 474 00:23:17,240 --> 00:23:19,880 arrived in New York City this week to begin collecting data 475 00:23:19,880 --> 00:23:23,000 with a human behind the wheel as a company seeks a permit for 476 00:23:23,000 --> 00:23:25,600 autonomous testing. They plan to gather data as its 477 00:23:25,600 --> 00:23:29,120 cars are driven manually through the city, an initial step into 478 00:23:29,120 --> 00:23:31,520 one of the largest ride hailing markets in the US. 479 00:23:31,840 --> 00:23:34,200 Waymo applied for a testing permit from New York City 480 00:23:34,360 --> 00:23:36,040 Department of Transportation in June. 481 00:23:36,160 --> 00:23:38,320 I believe Waymo will be operating in New York City in 482 00:23:38,320 --> 00:23:40,360 the future. That is a massive market that 483 00:23:40,360 --> 00:23:43,240 they can capitalize on. Now in terms of the testing, 484 00:23:43,440 --> 00:23:46,600 this is another thing that Tesla investors have continually 485 00:23:46,600 --> 00:23:49,160 brought up that Waymo has to map cities. 486 00:23:49,160 --> 00:23:52,200 They have to map them, and that's apparently a big 487 00:23:52,200 --> 00:23:54,480 limitation of Waymo compared to Tesla. 488 00:23:54,480 --> 00:23:57,240 Then we look at some of the biggest bulls on Tesla online 489 00:23:57,600 --> 00:24:00,800 and they say that Tesla's out in full force tonight validating 490 00:24:00,800 --> 00:24:04,440 parts of downtown Austin. They're getting ready to expand. 491 00:24:04,520 --> 00:24:07,400 Here's the video shown of Tesla's validating these new 492 00:24:07,400 --> 00:24:10,320 areas. If we look at it right there in 493 00:24:10,320 --> 00:24:13,720 freeze, the Tesla has something mounted on top of it. 494 00:24:14,040 --> 00:24:16,680 In this case, it's a, a Lidar system. 495 00:24:17,280 --> 00:24:21,000 So Tesla before they enter an area, they have to drive a 496 00:24:21,000 --> 00:24:23,640 vehicle around and that's a human driver and they're driving 497 00:24:23,640 --> 00:24:27,480 the vehicle around with a huge LIDAR system sticking up 6 feet 498 00:24:27,480 --> 00:24:31,720 in the air validating the area. Now this is what Tesla investors 499 00:24:31,720 --> 00:24:34,760 do in this case. They don't call it mapping, they 500 00:24:34,760 --> 00:24:37,320 call it validating. No, they're, they're not mapping 501 00:24:37,320 --> 00:24:39,800 the area out. You can't call it the same term 502 00:24:40,000 --> 00:24:43,360 because then that would sound like they're doing exactly what 503 00:24:43,360 --> 00:24:46,680 Waymo's doing, what Tesla's doing with their big Lidar 504 00:24:46,680 --> 00:24:50,280 cameras, driving around predefined areas before they can 505 00:24:50,280 --> 00:24:54,240 actually operate in them. They are doing validating, not 506 00:24:54,240 --> 00:24:56,320 mapping. Of course, this is a distinction 507 00:24:56,320 --> 00:24:58,520 without difference. Tesla has to go through 508 00:24:58,800 --> 00:25:02,120 virtually the exact same steps before opening a new area as 509 00:25:02,120 --> 00:25:05,320 Waymo, just like they're geofenced like Waymo. 510 00:25:05,600 --> 00:25:08,720 They are expanding in the very same way that Waymo's expanding, 511 00:25:08,720 --> 00:25:11,400 but they're five years behind doing a fraction of the rides. 512 00:25:11,560 --> 00:25:14,960 Now finally, we get into this interview, which if you're 513 00:25:14,960 --> 00:25:17,960 listening to the the podcast version of this show, this is 514 00:25:17,960 --> 00:25:19,120 one thing. You might want to watch the 515 00:25:19,120 --> 00:25:22,360 video because it's it's difficult to explain what this 516 00:25:22,360 --> 00:25:24,120 interview feels like when you're watching it. 517 00:25:24,360 --> 00:25:28,040 The sunglasses that Sam Altman's wearing and just overall the 518 00:25:28,040 --> 00:25:30,200 aesthetic of the interview. It's it's interesting. 519 00:25:30,360 --> 00:25:33,120 It feels like I'm watching a scene out of the office. 520 00:25:33,120 --> 00:25:34,680 That's kind of the vibe I get from this. 521 00:25:34,840 --> 00:25:37,360 And Sam Altman seems to be caught off guard. 522 00:25:37,360 --> 00:25:40,200 He's asked a few questions here and I like the answers that he 523 00:25:40,200 --> 00:25:41,600 gives. The first one's about Mark 524 00:25:41,600 --> 00:25:44,280 Zuckerberg stealing a lot of Meta's best employees. 525 00:25:44,480 --> 00:25:46,520 Here's the way that he reacts to this question. 526 00:25:46,800 --> 00:25:49,040 How are you feeling about the battle for talent with Mark 527 00:25:49,080 --> 00:25:54,520 Zuckerberg and Meta? After being asked about how he 528 00:25:54,520 --> 00:25:58,120 feels that Mark Zuckerberg gutted a lot of his company, 529 00:25:58,120 --> 00:26:01,520 taking some of the top talent, he shrugs his shoulders and says 530 00:26:01,680 --> 00:26:05,480 fine, good. I have a feeling that he doesn't 531 00:26:05,480 --> 00:26:09,200 feel so fine about that. He's really not so happy that he 532 00:26:09,200 --> 00:26:11,000 lost a lot of his best employees to Meta. 533 00:26:11,120 --> 00:26:13,800 The next thing he's asked about is the new political party made 534 00:26:13,800 --> 00:26:15,480 by Elon Musk, the American Party. 535 00:26:15,720 --> 00:26:16,960 Here's his reaction to it. But. 536 00:26:17,320 --> 00:26:19,160 Could you donate to the American Party perhaps? 537 00:26:19,200 --> 00:26:22,000 I I literally other than those words, you just said everything 538 00:26:22,000 --> 00:26:24,440 I know about the party. I want to make of Elon's bust up 539 00:26:24,440 --> 00:26:26,000 with Trump. He must be finding that quite 540 00:26:26,000 --> 00:26:28,200 funny watching from the side. Elon bust up with everybody. 541 00:26:28,200 --> 00:26:29,680 I mean, come, I like it. That's what he does. 542 00:26:30,280 --> 00:26:31,320 And how's your relationship with? 543 00:26:31,760 --> 00:26:35,200 Him How do you think? What are the? 544 00:26:35,480 --> 00:26:37,760 Topics you're most interested in talking about here today. 545 00:26:37,920 --> 00:26:42,560 AI he's asked what he thinks of Elon Musk and Trump breaking up 546 00:26:42,560 --> 00:26:44,680 and he says that he breaks up with everyone. 547 00:26:44,840 --> 00:26:48,320 He's asked what his relationship is with Elon Musk and he says, 548 00:26:48,320 --> 00:26:51,240 what do you think? And Sam Alton's right here. 549 00:26:51,280 --> 00:26:54,840 I think Elon Musk, I don't know if it's his intention, but he 550 00:26:54,840 --> 00:26:57,800 seems like he's, he has a goal of making enemies with almost 551 00:26:57,800 --> 00:27:00,440 everyone. He's in combat mode all the 552 00:27:00,440 --> 00:27:03,000 time, but maybe sometimes a little too much to his own 553 00:27:03,000 --> 00:27:06,720 detriment, burning bridges with every business leader, every 554 00:27:06,720 --> 00:27:08,600 political leader. And you can see the same thing 555 00:27:08,600 --> 00:27:11,600 with Sam Altman. Sam Altman has been at odds with 556 00:27:11,600 --> 00:27:14,560 Elon Musk ever since Open AI took off. 557 00:27:14,640 --> 00:27:16,760 The last thing I'd highlight from this is something that I 558 00:27:16,760 --> 00:27:20,200 think is important. We had speculation when Joni 559 00:27:20,200 --> 00:27:23,760 I've joined Open AI that they were working on eyewear, 560 00:27:24,000 --> 00:27:27,120 specifically eyewear that has integrations with video, 561 00:27:27,320 --> 00:27:31,080 integrations with AI. And he's asked here offhand if 562 00:27:31,080 --> 00:27:33,200 those glasses he's wearing are smart glasses. 563 00:27:34,360 --> 00:27:38,760 All right, I wish I had more smart glasses or no glasses. 564 00:27:38,760 --> 00:27:40,040 Absolutely not. I don't like smart glasses. 565 00:27:40,040 --> 00:27:41,960 Can you give any hints about what your hardware is going? 566 00:27:41,960 --> 00:27:44,280 To be that, No, but it's going. To be great now, he said. 567 00:27:44,280 --> 00:27:46,480 He's not giving any hints of what the hardware is going to be 568 00:27:46,480 --> 00:27:49,720 about, but he just gave 1. He says that he doesn't like 569 00:27:49,720 --> 00:27:52,160 smart glasses, so we just eliminated one piece of 570 00:27:52,160 --> 00:27:54,640 speculation. Open AI is probably not working 571 00:27:54,640 --> 00:27:55,880 on smart glasses. Now. 572 00:27:55,880 --> 00:27:58,640 That's all for this episode. Hope you enjoyed seeing the next 573 00:27:58,640 --> 00:27:58,920 one.