Welcome back everyone today on the Joseph Carlson Show.
We all know that the markets have been going up higher and
higher in 2025, with the biggest theme driving the market being
artificial intelligence. Throughout this investment theme
of AI, it's driven the market, The S&P 500 up 13% in 2025
alone. The QQQ is up a staggering 17%.
And as investors, we're always looking for the most predictable
winners. In this episode, I'll be
outlining 5 companies, 5 AI stocks that I believe will
continue to win over for the next 5 years.
Now of course we have a lot of news to get into.
Speaking of AI, Open AI just announced another deal, another
deal this time with Broadcom. The Co founder of the company,
in similar fashion to previous deals just recently has gone on
to CNBC and explained how big the story is for this company,
how much demand they really have, how fast they need to
grow. We have Tom Lee making his
appearance giving more optimism. He also is bullish on NVIDIA and
he compares the valuation of NVIDIA to Walmart and Costco.
This is a theme that we've seen over and over again.
It's becoming more common for investors that are investing in
AI disruptive tech companies to compare those valuations of the
stalwarts like Costco and Walmart.
We'll be going over why this is a completely flawed comparison
and we should stop making it. The former CEO of Intel believes
that we are in an AI bubble, but Howard Marks, the guy that
predicts bubbles, says that this frenzy isn't a bubble, at least
yet. We'll be looking at that.
And then we have our fail of the week, which in this case is an
individual instructing people on X to risk it all that in your
20s, you need to take on maximum amount of risk.
And then very soon after he ends up losing all of his money,
which is $3.4 million, We'll be taking a look at this
predictable outcome of risking it all.
So we have a lot to get to in this episode.
And we kick things off with looking at five companies that
will continue to lead in this AI market.
The first one's, Google. This is a company that I believe
just has it all. It has the low downside and high
up side. When I look at Google, of
course, it's not the same deal today that it was earlier this
year. It's not lost on me that
Google's up 32% in the past three months.
So investors may look at this and say, Joseph, you've missed
Google. It's up a lot this year, it's up
27%. Why would you invest in Google
Now when you could have bought it a couple months ago?
And while that's true, we don't always have all the money to
deploy 3 months ago. In some cases, we're just
working our jobs. We're making new money, we have
new paychecks, And so now we have time to deploy our capital
and we need to look at the best options.
When I do that, I look at Google as right now, one of the best
options. I believe it's a top five
options for investors to buy today.
Although the price and the valuation has expanded, it's
still low and it's meaningfully lower than the intrinsic value
of this company or one that possesses the qualities and
diversification and earnings power of this company.
Google today trades at a 23 Ford PE ratio.
The thing that I always remind investors when looking at Google
of why I like this stock still today so much is because of the
assets they own. Everyone's focused on Google
Search, and I understand why that's a huge portion of the
company, but Google Search is fine.
Not only is it fine, but it continues to grow double digits.
It continues to expand. You can also see that it's
technologically just far more advanced.
You can search anything and it's just as powerful as an open AI
search. Google AI mode is incredibly
strong. AI Overviews is incredibly fast
and useful. Google Search is better today
than it's ever been before and it makes it so it has lower
churn to competitors like Chachi PT.
But even if we were to get rid of Google Search, we have Google
Cloud. It's the second fastest growing
cloud. It's growing incredibly fast and
continues to compound. They're adding on more and more
unicorns for companies that are about a billion dollar valuation
that are still private. They're using Google Cloud
because it's integrated with Gemini.
It's integrated with all the DeepMind products.
You have subscriptions, which can't be understated from
Google. Google's transition their
company from primarily an ad company now to growing a
substantial subscription business.
They have the Google One subscription and they have
YouTube Premium. YouTube Premium is one of the
best value propositions of any subscription and these
subscriptions alone are a $44 billion revenue segment.
Outside of the subscription, with YouTube Premium you also
have YouTube, just the ad portion of it growing 12 to 13%
per year. The revenue will likely be about
double, maybe about 70% higher. In five years, YouTube will be
likely worth a trillion dollars in market cap all by itself.
In five years, just Google Cloud and YouTube in and of themselves
are fantastic businesses. But you add on deep mind, you
add on Gemini, you add on Google search, and you have a company
that's worth far more than its trading for today.
I believe that Google is about $100 undervalued today.
So if you can buy this company below $340, I think it's a buy.
I own $87,000 of this company in the passive income portfolio.
I own another $52,000 of Google in the Story Fund, and this
company is going to continue to be one of my biggest winners.
Now we get to #2 of these AI companies that I believe will
continue to compound and lead the market over the next five
years. And this one's Amazon.
This is another one that I believe is just a low hanging
fruit, meaning it's the easiest to pick.
It's the ones that are the easiest to buy.
Amazon trading at 220 dollars is another case where investors may
have anchoring bias. Anchoring bias is when you look
at the price of the stock and you look at where it was
previously and you say, well, I could have bought it right
there, so I don't want to buy it right here.
And in this case, I believe that Amazon is deserving of more
exposure today than it was even at the beginning of this year.
The company's bigger, the company's stronger, and they're
investing aggressively. And when I look at Amazon, I
believe it has a lot of downside protection.
First of all, when we look at the long term trends of this
company, this is one that it's grown as a compounding machine
for decade after decade. Still today it's growing 11%
revenue year over year. When we break that down by
segment, we can see which parts of the company are growing the
most important high margin portions of the company are
growing far faster than the lower margin, less important
parts. Key to Amazon is AWS with an
estimated 4 + 1,000,000 customers.
It won't grow at these lumpy rates where it has huge quarters
like Oracle or Microsoft, but it will grow at a continual
compounded rate, 20 plus percent for a long period of time.
And there are reports that are suggesting that Amazon's AWS
growth will actually accelerate over the next year.
It won't decelerate. Amazon will continue to be an AI
leader over the next five years. They're building up their
specific deal with Anthropic and more cloud providers.
They have their massive sprawling retail business, which
lends more advertisement. They have a huge third party
seller business. They're the biggest in
logistics. They're figuring out humanoid
robots, along with Tesla and other companies.
They have Amazon Prime Video, which is about the second
biggest streaming video website. Now, this company has a massive
subscription business with over 300 million people subscribe to
Prime, one of the lowest churn subscriptions.
They're infusing artificial intelligence with sports as
well. And all of this, this entire
company is selling at one of the cheapest valuations it's been
throughout its history. Amazon is a buy today, and it's
a company that I believe will continue to be a buy under $300
per share. Now #3 of companies that will
continue to lead in this AI revolution is ASML.
This is one that's had a great year, and it's now trading at a
29 Ford PE ratio. Another thing that we need to
look at with ASML is that this company's earnings are coming up
in 2 days, October 15th, we'll get Asml's earnings on the
Qualtrm earnings calendar. We can see this Wednesday before
market open. We have Asml's earnings.
Now we can look at what to watch for.
When I look at the different various things to look at with
ASML, of course, there's a situation with China and the
constant export restrictions. There's geopolitical tariff and
macro uncertainties. This is going to be one of the
key things that we need to watch out dealt with this earnings
because ASML always has commentary on what could happen,
what might happen. The last quarter the CEO said
that based on tariffs and export restrictions, we may not even
grow next year. If we have the harshest outcome,
if we have a really bad outcome. And just to mentioning that
caused a huge sell off in the stock, it's still down 10%.
So geopolitical tariff and macro uncertainties maybe a big role
in how the stock trades once the earnings call happened.
But underneath all of this, the reason that I believe ASML will
continue to grow in compound over the next five years at a
very constant and predictable rate is this point right here,
the install base management and service growth.
When we look at the most predictable revenue lines of
ASML, this one is it. Management is expecting the
install base management revenue to grow more than 20% in 2025
with ongoing momentum and services as the tool base
expands. Virtually every machine that
ASML has ever sold throughout its entire history is still in
operation today. And all of those machines need
to be serviced by ASML. So as they continually sell more
and more machines, they are in effect growing their install
base management because every additional machine needs to be
serviced. And so this will continue to
grow over time. This is a company that I believe
will continue to compound above 15% over the next five years.
I think that you could safely buy it under $1000 and expect
positive returns. But note that there could be a
lot of volatility after every quarter.
If you're the type of investor to be shaken out of a company
because it drops 10 or 15% after quarterly report, this may not
be the one to own for you. But ASML is as solid as it gets,
and it will continue to grow. And #4 we get to Netflix.
This is one that obviously I have a history with.
I'm a big investor in Netflix. I love the company.
I own $140,000 of the stock, 85,000 of that being gains.
Even though I've done well on Netflix and I could just end on
a high note. I could sell the company, say it
was a successful investment, wash my hands from it, and then
go on to the next investment. That's not typically what
investors should do in these type of situations because it's
rare that a company like Netflix comes around the corner.
There's simply just not a lot of Netflix's.
There are a lot of streaming services, but not a lot of ones
at the scale or success or economics of Netflix.
Now, this is a company that, even though it's not as direct
of an AI company as an NVIDIA or Palantir or even a Google or
Amazon, I believe that Netflix is an AI company and I've made
entire videos dedicated to just proving that theory out.
AI companies are not just ones creating the models, but they're
the ones that are in the best situation to be able to leverage
artificial intelligence. Think about it in terms of
leverage. If a company can take a tool
that someone else made and they can use it 1000 times more
powerfully than even the company that made it, that company's
using leverage. And Netflix has all the leverage
in the world with artificial intelligence.
Netflix has so many use cases for artificial intelligence that
they actually have to reassure their partners that they're not
going to use too much AI because they could do so much with their
company. They have entire write ups going
over the ways that they're using artificial intelligence in
content production, that they're not trying to get rid of
original storytelling writers or actors, But in fact they're
trying to enhance the production, invest more into it,
make it better, make things look more real and make the stories
more authentic and make it so people can focus on the more
authentic parts of the story rather than the low end stuff
that can be generated through artificial intelligence.
Think about all the different things that they can do
leveraging artificial intelligence to help speed up
the content creation of the company.
Netflix is already built out an AI search, so you can go in the
the app and just say, I'm looking for something that's
kind of like this and it will and it will use AI to recommend
you specific TV shows. It's going to be able to use AI
to catalog, to auto dub different content to make it
easier to find. Of course, they're using
artificial intelligence to try to present the best shows to you
at the best given time. This is an extension of machine
learning, which they've been in for a while, but this is going
to enhance these type of capabilities.
They can use AI to do analysis on which shows are getting the
most retention, watch time depletion rates, which ones are
the best investments, the ROI they can leverage, all of this
within their product. It is the most tech focused,
concentrated tech talent company that's in media today with the
largest scale. So this is a company that I
believe has tremendous growth ahead of it.
Now, the big counterpoint for Netflix is that the valuation
has gotten quite high. It's up to a 40 PE ratio.
But anytime we look at valuation, we have to match it
with growth rate and predictability of growth.
Even though the valuation is high, the growth rate's also
extremely high and the predictability of growth is
quite high as well. Netflix's earnings per share
grow at 50 plus percent for the past couple of years.
In fact, for the past five years, it's grown above 31%.
So while it trades at a higher PE ratio than some other
companies, look at the earnings per share growth rate, it's
likely growing twice to three times as fast as every other
company you're comparing it to. When we look at predictability
of growth, we can see that Netflix is a highly diverse
revenue generative company and every area that they go into,
they're crawling across planet Earth.
And at this point, I believe they're simply unstoppable.
Their lead is insurmountable. Other streaming services can't
catch them. Even news that streaming
services like Paramount are trying to buy Warner Brothers
Discovery, Even if they combine together, they're still going to
be much smaller than Netflix. This is a company that even
boycotts millions of people following Elon Musk can't even
affect the stock for more than a couple days.
It's at a much higher price than a boycott only a week ago.
Netflix is a company that's geographically diverse, has
hundreds of millions of customers, has pricing power,
has 15% revenue growth, and it's operating margins are ticking up
every single year. It's a company that's already
incredibly cash flow generative, making $8.5 billion in free cash
flow in the trailing 12 months. Netflix's management team
internally said that they can get the company to a trillion
dollar market cap if they continue to execute.
They're going to double the revenue, triple the profits, and
gain 100 million subscribers at the same time, while having fast
growing ad profits as well. If the bare case that you can
rely on at this point is at the PE ratios of 40, if that's the
only thing you can point out about this company, that it just
has a high PE, it's a little bit higher than most companies.
That is an incredibly weak bear case.
Every other aspect of this company internally shows that it
is going higher. The stock will be higher in the
next 5 years, substantially higher.
Now, there's some people that have suggested the bear case for
Netflix is the content. In terms of content, Netflix
actually has some of the best content in the world on their
service all the time. We've gone through this over and
over again. Squid Game brought in a whole
new category of content. We have shows like Wednesday
that are mega hits. We had Demon Hunters, which was
a mega hit on Netflix just recently.
Later this year we have Stranger Things, the conclusion of this
series, which reports are now saying that every episode will
be an hour and a half to two hours long with a production
budget of 50 to 60 million per episode.
These are movie length, movie quality episodes every episode.
For the conclusion of the series, they're releasing this
final season in three different stages.
The first stage is late November, then we have the next
stage on Christmas Day. Then we have the final stage,
December 31st. Netflix is owning the holiday
season. The times that people are around
with their families, gathering around in the living room,
spending downtime while it's cold outside, they're going to
be watching Netflix. I have yet to hear a good bear
case for this company. Even people that complain about
the price of the service saying it's too expensive.
Netflix has an $8 per month plan.
There's no streaming service that offers as much content for
a cheaper plan #5 is a more controversial pick.
And I'm aware that many people are not along for the ride and
they disagree with me on this company, but it's Duolingo.
It's a company that I've talked about before, but I just want to
go over the case of it as we're getting closer to their next
earnings. And as a lot of people have made
a lot of assumptions and a lot of decisions already with
Duolingo, the first thing I want you to do when looking at this
company is to just keep an open mind for a minute.
Just erase some preconceived notions and keep an open mind.
One of the first things people do when you talk about Duolingo
as a real serious investment, especially one that's an AI
investment, is they roll their eyes and they say it's nothing
more than a little app. They kind of denigrate it and
they downplay it. They make it little bit lesser
by saying it's just an app. Like why would you want to
invest so much in a in a tiny app?
Like if you really just back up and think about where Meta makes
their money, they make it from the Facebook app and they make
it from Instagram as an app. This company's basically 2 apps.
Now, I'm not trying to denigrate Meta.
It is an incredibly powerful company.
I'm just outlining a point here that this company's primary way
of people accessing it is from 2 apps.
Google, the majority of its web traffic comes from mobile, and
it comes from mobile apps. Many companies that are massive
companies are just apps. That's all they are.
In fact, one of the things that Duolingo CEO that did was so
smart is he actually started things off as an app.
He didn't start web first. He started app first
specifically because he thought that was a more viral way of
growing the company. He thought it had more demand.
And that's part of the reason that Duolingo has been so
successful is specifically because it's just an app.
That's one of the things that I think is an erroneous argument,
an erroneous way of looking at the company.
Of course, Duolingo is an app, but so are so many huge
companies. Another criticism all address
for Duolingo is that this company really doesn't own
anything unique. It's easy to replicate what
they're doing. And in fact, Duolingo is more of
justice, a ChatGPT wrapper, like it's just using ChatGPT and
Chachi BT really has the real power.
That's how you do the Duolingo Max where you talk with the AI.
All of that is in fact through Chachi BT.
So for example, we have this leaked report.
This is unconfirmed, but Open AI hasn't denied it.
So we can assume for now that it's likely accurate.
And it shows the top 30 customers of Open AI through
their API. So these are ones that are using
the the Open AI service by their API.
And the very top of it is Duolingo.
It's the number one company that's using open a eyes
technology. Now, the criticism here is that
that's just evidence that Duolingo owns nothing unique.
They're simply just using other people's technology.
They're putting it into an app form and that's all that they
can offer. And that's somewhat true, but
that misses the point of what makes a powerful company.
Another company that works in similar fashion is 1 called
Spotify. Spotify could be called a simple
wrapper for Universal Music Group, a company that just takes
other people's stuff. Universal Music Group all their
music, and they put it into an A.
That's basically all Spotify does, but yet it's a massive
company in the process. And even in this scenario,
Spotify's much more dependent on Universal Music Group than
Duolingo is on Open AI. It's much easier for Duolingo to
switch out from Open AI to Gemini to Anthropic or any other
AI model. The users on their end would
likely not know the difference. So Duolingo has far more
flexibility in which service provider it uses for its AI.
And Duolingo controls the most important part, which is the
touch point with the customer, the user experience.
What this proves is that Duolingo is leveraging
artificial intelligence far more than other companies.
In fact, any other company that's a customer of open AI,
they're literally at the very top of the list of using this
technology and distributing it at scale.
Now, of course, the bear case for this company, for anybody
that does some shorthand research on it, they'll point to
the high PE ratio. But just as I said, in the case
of Netflix having their 40 PE with Duolingo's 75 PE ratio, PE
ratios should. Be given in context of growth
and predictability, Duolingo grew their earnings per share by
73% year over year last quarter. It's gone from essentially in
the deep red in 2022 now to producing 2 1/2 dollars of
earnings per share. With massive explosive growth
and earnings per share, you get higher PE ratios.
In terms of predictability, we can look at the subscription
revenue growth of the company, which is growing at 47% year
over year. This will likely continue to
grow as Duolingo is becoming better at converting their daily
active users to paid subscribers.
The paid subscribers are growing above 30 and they'll likely grow
around that 30 over the next couple of quarters.
When we look at Duolingo's growth, it is subscription
based, reoccurring over time. The revenue continues to grow as
they engage with more people and convert more customers.
I understand that this company, especially this stock is far
less of a consensus than other companies that I've looked at.
And I believe there is more risk inherent in Duolingo than the
other names that I've mentioned. So I've sized my position
appropriate for that. But I do believe this company
could represent one of the best investments over the next five
years and I believe that it's a buy under $400.00 per share.
Now moving on, we have a lot of news to get to.
First of all, Broadcom's up 10% today.
This is on news that Open AI announced a multi billion dollar
partnership with Broadcom to Co design and deploy 10 gigawatts
of custom AI accelerators. Haven't we heard this type of
thing before? Doesn't it sound like Deja Vu,
like we're just tearing the same thing except with a different
stock? It seems like every day, every
day now Open AI is just announcing another deal with
another company, another strategic partnership, another
Co design, another thing where they go on TV and they say how
good this is for the future. In fact, investors today are
basically playing whack a mole of trying to pick which company
will have the next deal with Open AI, which one's going to
surge up 10% with one of these news headlines.
And of course with each of these deals we have the Co founder of
Open AI going on to CNBC explaining why they're doing
this deal. You've announced big deals with
the AMD, You announced a very big deal with NVIDIA.
Why do you need still one more deal?
Well, first of all, thanks for having me back.
The way I'd think about this is we need way more compute power
than we are still on trajectory to build.
And so I think that there's a whole industry that still needs
to be created in terms of how to have both the power and the
computational power available to power the AI revolution that we
see coming. And so part of what we're
looking for here, part of what we've been working with Charlie
and his team on is how to actually build chips that are
customized for specific workloads so that we can take
our knowledge of how to build the AI models and combine it
with the best possible way of implementing that into silicon.
This is another deal of strategic cooperation between
these companies and Broadcom continues to move up even after
having an amazing past five years.
It's one of these companies that continues to be in all the right
places at the right time. Now, while all that's going on
with Broadcom and Open AI being excited about this AI move, we
have the former CEO of Intel saying that we're clearly in a
bubble. Yeah.
And, you know, are we in an AI bubble?
Of course, right. You know, we were of course
bubble, you know, of course we are.
I mean, you know, we're hyped, we're accelerating.
We're putting enormous leverage into the system.
You know, that said, I don't see it ending for several years.
You know, I do think we have, you know, an industry shift to
AI, as Jensen has talked about. And I agree with this, you know,
that businesses are yet to really start materially
benefiting from it. You know, we're displacing all
of the Internet and the, you know, service provider
industries as we think about it today.
We have a long way to go. What's the sound?
Of course, in an AI bubble, he thinks that we're in one, but
we're going to go further in this bubble for at least the
next couple of years. Howard Marks takes a different
approach, but his overall view is similar.
He says his response to date has been that valuations are high,
but not crazy. So Howard Marks believes that
investors are showing some sort of discretion, even though
valuations are high and it's not quite a bubble.
Tom Lee is not only not worried about a bubble, but he thinks
investors should continue to be optimistic and continue to
invest in the biggest AI names in the world.
Why invest should stay pretty constructive on the USI mean JP
Morgan, the biggest and one of the and the most powerful bank
in the world, is investing a trillion and a half dollars into
the US into things that are going to strengthen sort of US
advantages, you know, critically important areas.
And at a time when the US is dominating AI and of course now
we have this big tailwind is as blockchain is an initiative that
Wall Street is building products on.
So I think there's a lot of reasons for investors to stay
optimistic. And I know there's a lot of talk
about bubbles, but I think the thing I would just continue to
point out is NVIDIA trades at around 27 times forward
earnings. It's still, on a PE basis,
cheaper than Walmart and Costco, which traded around 47 and 34
times forward earnings. He addresses the concern of the
bubble but points to evidence saying it's not a bubble because
it's cheaper than Costco and Walmart.
Tom Lee's not the only one doing this.
I've seen this comparison over and over again with people
comparing a given AI stock to Costco and Walmart.
Costco is a different company than most companies.
Costco has a level of predictability, reliability,
durability, and visibility into its earnings that surpasses
virtually every other company on planet Earth.
NVIDIA, of course, trades at a lower valuation on a forward
earnings basis than Costco, and while that may look like it's
cheaper, that again doesn't tell the whole story.
NVIDIA has proven that there is far less visibility into the
future earnings in Costco. And by visibility, that means
the ability to accurately predict what future earnings
will look like. So for example, if we look at
NVIDIA and we look at the revenue growth, this is what the
revenue growth looks like. Could you have predicted what
this revenue would look like to even a reasonable degree or even
somewhat accurate five years ago?
So back in 2020, did you know that Nvidia's revenue would go
up 10X in a number of years? Back in 2022, did you have any
clue that Nvidia's revenue would go up 7X?
Of course you didn't. Well, if you did, you would be
filthy rich. But 99% of investors did not
because it was highly unpredictable.
In fact, the investors that held NVIDIA beforehand, probably
themselves, could accurately say that they didn't predict that it
would grow this fast. It was a little unexpected.
Costco's revenue, by contrast, is highly predictable.
And although it's gone through stages of slightly faster growth
and slightly slower growth, it's also grown at a much more steady
compounded rate for decades of time.
There's no incredible outlier disruptive technology that spurs
the growth of Costco. So what investors in part are
paying for is Costco's visibility into future revenues
and future earnings. And this goes to the point that
if you are not able to accurately predict the growth in
revenue five years ago from NVIDIA, what makes you believe
that you'll be able to accurately predict the demand
that NVIDIA will have in the next five years?
What makes you know that NVIDIA will have the same demand they
have now? That AMD and other competitors
won't take a bigger share of the pie?
That the big tech companies, the cloud computing companies, the
hyperscalers that make up the majority of this revenue won't
be able to replace a significant portion of their spend of NVIDIA
on their own TP us or their own custom made chips.
It's very difficult to predict the earnings and future revenue
growth of an NVIDIA. It's very easy to predict the
future earnings growth and revenue of Costco because of the
products they sell and the industries they operate in.
Costco's selling low margin beef, chicken, milk and eggs.
Nvidia's selling Blackwell chips, the biggest chips in the
world, the biggest GPU's in the world, the most powerful ones of
the time. What has more longevity to it?
Which one is more predictable between those two segments of
product? Which one is more likely to be
disrupted over the next 20 years?
Milk, eggs, beef and chicken, or the latest and greatest GPU?
Now moving on, we finally get to our fail of the week.
In this case it comes from X, so we have LA Brain here.
He says if you are 18 or in your 20s, this is the greatest piece
of advice I can ever give. Risk it all.
These are the only years you can lose everything you have with
minor consequences. When you're older you'll have so
many more responsibilities, taking care of a family, paying
off loans, buying a house. You won't be able to afford high
risks like you can now. I started this whole meme coin
journey by depositing all the money I had to my name and
buying meme coins with it. I quickly lost it all but
instead of quitting there I took my entire student loan $9000 and
deposited it into phantom and traded it all the way back up to
30,000 before losing it all again.
I was left with $70 in my phantom wallet, but again I was
not ready to give it up and I turned that $70.00 into 1000,
then 10,000, then 100,000 and it's only been up from there.
I was able to risk everything I had because I knew even if I
lost everything I would still have a bed to sleep on, a home
to live in, food to eat, family and friends.
So there you have his advice. If you're young, just be
careless with your money. Risk it all and even if you lose
it multiple times over and over again, at least you have like a,
a place to, to sleep, at least you have a bed and you still
have friends, even though if you lose it all, you have no money.
So that was the advice that LA Brain shared with all of us.
The risk it all, even if you lose everything, it's not a big
deal because you'll make it back.
Now, just recently, and this is a lot more recent than that past
post, this was as of last Friday when the Trump tariff tweet went
out. A lot of cryptos actually went
down as a result. There's a big crypto sell off
and a lot of accounts were highly leveraged in crypto.
The more leveraged, the more dramatic the swings.
We have La Braine here giving us an update.
He says. I spent three years showing up
every single day 24/7. I sacrificed everything from
friends and family and health. I literally put up sweat, blood
and tears into this and in a matter of seconds, everything is
gone. I have nothing to show for my
work and I will never get that time back.
And here we have an image of his TNL, his profit and loss of
-3,482,000 dollars, 717. So we have him losing about 3
1/2 million dollars in a single day.
And not only that, what he said before, you know, if you're
young, you can risk everything. You'll have your family,
friends, you know, you'll, you'll be able to get everything
back. He doesn't seem to have the same
optimism and go get him attitude after this most recent set back.
In fact, he now says he lost his health, he lost his friends and
his family and all of his time. So he basically lost everything
in a single day. And he did so by following his
own advice, by risking it all. This is something that we can
talk about and laugh at, but I noticed more and more people
doing this in an attempt to skip the line and get rich as fast as
possible with the least amount of work as possible, with the
least amount of patience or discipline or effort and
protecting what you actually have.
People are engaging in degenerate behavior, leveraging
up as much as they can in a straight out attempt to gamble
their way to financial success. And in every case, it starts off
with optimism and what you can gain, and it ends in tears,
losing hundreds of thousands if not millions of dollars in a
matter of minutes. And this is what happens when
people invest in speculative things with a lot of leverage.
The truth is that investors do not need to risk it all at any
point in their life, nor should they.
Even if you are young, the attitude of risking at all means
that you can be careless with money.
That money doesn't matter when you're younger, in your 20s.
And that's precisely when money matters the most.
When making money and compounding matters the most,
because compounding works with time.
The money that you make in excess of your living expenses
in your 20s can be invested in index funds or growth funds.
That money can safely and predictably be compounded for
long periods of time. Money intelligently invested
early on in life can turn to fortunes later in life with
discipline and patience. But if you exercise no patience,
if you try to get rich fast, If you play the game of gambling,
ultimately you're going to lose it.
And that is why LA Brain here is the fail of the week.
Now that'll be it for this episode.
See in the next one.