Welcome to the Joseph Carlson show on today's episode,
Microsoft buys the video game maker Bethesda.
They make games like Fallout Elder of the Scrolls and doom.
This to me is a pretty big push for Microsoft to go into gaming.
We know that they have the Xbox. They're already pretty big into
gaming but they're just going further and further into the
gaming scene. I think that this is a good move
for Microsoft. So I'm going to be talking about
this deal. We also have news to epic games
has joined Spotify as well as other companies, like match that
make Kinder. They've all Joined together and
formed a coalition, the Coalition for app fairness.
So they're seeking legal and Regulatory ways of addressing
apples cax that they have for the App Store.
That's what they call it. Right, the 30% Apple digital
text. So this is a bigger push to put
pressure on Apple to change their policies.
I'm going to be sharing my thoughts on this and then we
have Nicola in the news. Of course, Trevor Milton.
He resigned last Sunday. He definitely voluntarily
resigned. He definitely I wasn't fired
from the company. In order to try to salvage this
deal with GM and Nicola, that's not what happened.
He voluntarily resigned. He also deleted his Instagram
and Twitter. They're being investigated by
the SEC and the doj. So a lot of news regarding
Nicola. I want to check on that as well.
And then we have a portfolio update of my passive income
portfolio, On Em, on finance. It's been a pretty rough week.
I go to the one week view, we're down about five thousand dollars
in the past five days. So that's a pretty, pretty bad
week in terms of the Kitt, I'm going to share some thoughts on
this and specific. I'm going to share why this
doesn't concern me at all, why I have zero concerns when things
like this happen in the market, I'll be sharing a few tips of
what I think will make it so that you can invest, completely
stress-free. You can put money in the market
and you have zero stress doing so so I'll be sharing tips on
how to do that. Now, before we get into any of
this, I have to mention, I do have a patreon to help support
the channel. So I don't have to do ads every
five minutes of the video. The patreon unlocks a lot of
benefits like a Discord Investment Group.
Episodes of The jalsa, Carlson show a dividend tracking
website, as well as a bunch of other things.
So you can try that out for free.
There's a link in the description if you want to join
it. Okay.
The first thing I want to jump into I think is pretty big news.
This week. It was announced at Microsoft
bought Bethesda. They really bought a company
called zenimax, which sounds like some type of pill.
It sounds like a Healthcare company zenimax, but really
zenimax. Media is the owner of Bethesda.
So Microsoft bought the entire company.
The the creator of Fallout Elder of the Scrolls and doom.
A lot of these really big beloved games by Gamers and now
Microsoft owns them. This is, I think, part of
Microsoft's, greater push into gaming, they see gaming as a
growing field, Microsoft wants to own a big part of that.
And so they've been trying to do a lot of things.
Their last attempt was was coming out with mixer, which was
going to compete with twitch that didn't work out.
So they made an attempt. There.
It didn't work out there doing the next thing.
Now, they're buying different game, making companies and I
think that this is a Smart move Microsoft will soon be releasing
the Xbox series X for 500 bucks. It's going to be the same price
as the Sony PlayStation. And the big difference is is
that Microsoft is actually releasing I think in terms of
the specs, it's a more powerful machine than the Sony
PlayStation. So, it's more powerful.
But the downside is, is the exclusive games for the Xbox are
pretty weak compared to the exclusive games for the
PlayStation. So the PlayStation has a big
Advantage. So Microsoft buying De well,
that changes things a little bit.
Now. They own a really big game
studio. So this is definitely going to
be something that helps out Xbox sales.
So I think the big push for buying this was specifically to
have great exclusive games. I think that was the reason they
did it. Here is Phil Spencer.
He's the head of Xbox at Microsoft and he's asked a few
questions about this acquisition.
One of them is just, how does this play into your overall
strategy? Yeah.
I mean, Gamers love great games. You just mentioned.
We've got the Xbox consoles going on, pre-order tomorrow for
Next Generation. Just last week.
We added Game, Pass Cloud streaming.
So people can play this game pass Library, across all of
their phones, Android phones out there and then obviously game
paths, which is the largest game content.
Subscription out. There are 15 million subscribers
and growing. So getting to work with zenimax
to bring their amazing collection of games to game
passes. Just an incredible opportunity
for us. See what he does.
He doesn't Focus specifically on the Xbox.
Microsoft strategy is no. Longer to be completely
device-specific. They don't want to be just a
gaming company for the Xbox or for just phones.
They want to basically build out a cloud gaming platform and then
have it so that you can play that on whatever type of device
you want. The Xbox is offered as kind of a
loss leader. They're basically building these
five hundred dollar gaming machines that I think cost
probably more than 500 dollars to actually manufacture and
distribute and they're getting people into their ecosystem.
So again, they can sell their services.
There's a Theme among every great company.
Right now. You might notice this.
It's something I've tried to point out over and over again.
The reason that I think Disney's multiple is going to expand
subscription Services. The reason that Netflix has done
so, well subscription Services. The reason to Amazon has done so
well because of their Amazon Prime subscription service
Microsoft is a service based company.
They definitely want to do the same thing with gaming.
This is their next push into doing that if they don't have
the exclusive titles, they I can't draw people into their
platform, like Sony has been able to now, the next question
is more of a financial one. He asks, what are they going to
do with zenimax? What is Microsoft going to do
with this company? After purchasing them?
Are they going to change any of how its operating, or they going
to just let them do their thing? Our plan is to leave it alone.
I mean, zenimax has an amazing track record of building great
games. Our goal is to make zenimax.
The best zenimax. They can be working individually
with their Studios on the great platform technology that we have
getting their There's feedback into the things that we need to
go build. That's just a critical flywheel
for us. Innovating is the feedback of
the world's best creators on our platforms.
Now, I'll tell you that this is the answer that, every company
gives when they acquire a smaller company.
They always say that they're never going to shake things up.
They're never going to go and and make different cuts to the
company. But usually they do end up doing
that. That's not something they're
going to announce. They're not going to say.
Yeah, we do plan on firing a bunch of people and
restructuring different Departments of the company, but
eventually They usually end up doing that.
So I hope that Microsoft does keep Bethesda kind of the way it
is. I think most the times when a
bigger company, acquires a smaller one.
They make the mistake of trying to run the smaller one and the
same way that the bigger one runs and usually it's better
just to leave the smaller company to run how it has been
and what's made it successful in the first place.
The next question is asked, is about Apple and their policy
with cloud gaming. Apple has confirmed over and
over again, that every single app that gets pushed to the App
Store needs. Go through their guidelines.
They need to check it for security issues for quality and
make sure it's going through their guidelines.
And when you have cloud gaming, you can actually push updates
through the app without it, going through apples guidelines.
So Apple saying that doesn't really work with us.
We can't have cloud gaming. And the way that you're trying
to do it tell me about the gaming ecosystems.
Overall, Microsoft has spoken out against the way that Apple
controls its App Store on those lines, but how is that really
different from the purse? Percentage that console makers
take on games on their platforms.
When you get large-scale General platform General compute
platforms, like mobile phones. People should have access to the
great content and services that are out there and we remain
committed to that. There are over three billion
people who play video games today.
Many of them play on phones, and we're committed to Bringing game
passed to all mobile phones out there, including Apple phones
will continue the conversations, and I'm sure we'll be able to
get to some resolution. So there, he gives kind of a
generic answer. He really doesn't address.
What he was asked, he says well phones are generic use their
more generic use than an Xbox, but that doesn't really address
why Microsoft is okay charging people 30% to be on their device
and they're saying the Apple shouldn't be able to do the same
thing that Apple shouldn't be able to charge 30% to be on
their device. Our biggest issue is in a
financial issue. Our biggest issue is that cloud
game streaming apps are actually not allowed in the way that game
passes built for other platforms.
So for us, this is about Gamers having great access to The
content from the Creator's, they love on the devices.
They own play the games that you want with the community that you
want to play on the devices that you have.
That's our goal. So he says, they're not worried
about the thirty percent fee. In fact, Microsoft and epic
games have completely different concerns about this.
Epic games is entirely focused on that 30 percent fee.
They have some other asks as well.
They want to be able to have their own, you know their own
app store on Apple devices, but they're mostly worried about
paying 30%. Apple, they say that.
That's anti-competitive. Microsoft doesn't really care
about that thirty percent fee. I'm sure they do a little, but
their biggest focus is getting cloud gaming.
And the way that they imagine it on the iPhone, which apples
currently sing. That doesn't really work with
how we vet our apps. Now, I have Microsoft as one of
my for tech companies Microsoft is a pretty good dividend tech
company. You're looking for a company
that has substantial growth. It's in the text fair and it's a
dividend pair. Microsoft is a very good one
that fits within that mold over the last 10 years.
Microsoft has Had a 14.6% compound annual growth rate with
their dividend. So that is a pretty rapid
dividend growth over a 10-year period and they've done that
while keeping their payout ratio study the entire time.
So they're rapidly growing their dividend.
They're keeping their payout ratio study and the company has
a lot of growth as well. So this company just checks a
lot of boxes that I like and the continual move into gaming, I
think is very good. I think gaming is just getting
started. A lot of people think, well,
it's already so big already, so many people game.
I think it will just get Bigger and bigger gaming is such a big
industry. It's hard to pinpoint which
companies are really going to take advantage of it the most
but I think Microsoft is a pretty good bet.
They have a lot of advantages. Already the 7.5 billion dollars
in my opinion is money very well spent.
I think that they'll get a very good return on that.
I'm glad that Microsoft did deals like this rather than
doing The Tick-Tock deal because I think what that deal, they may
have overpaid for something that may have not fit well with the
company, but this deal I'm very happy about.
It makes me more bullish on Microsoft.
Okay. Next.
I want to talk. About Nikola specifically,
Trevor, Milton. We know that last Sunday,
evening. He voluntarily resigned.
He said you just didn't want to bring the company down with
them. So, he went to the board and
said, You know, guys, I just want to step down.
I don't think I want to play a role in this company anymore.
I just want to do what's best and step down for the company.
You definitely wasn't fired. They definitely didn't force him
out of the company to salvage. This deal with GM and Nicola.
I'm sure that's not what happened.
He voluntarily resigned from the company.
Now, He didn't just resign but he resigned with a golden
parachute. So he jumped out of that
crashing plane with a golden parachute worth billions of
dollars. Now, he's presumed lie in his 32
million dollar Ranch hiding away from the SEC and doj that are
both investigating Nicola and Trevor Milton for continually
making fraudulent claims. So that might be what he's doing
right now, but he's also found time to delete both his
Instagram account and his Twitter account.
Which, at this point. I think it was probably a good
idea from to delete his Twitter account.
Basically his Twitter account right now.
Acts as an Evidence, log of all the different fraudulent claims
that he's made up until this point.
So getting rid of that, that's probably a good thing.
But I think there's a good chance that there's backups of
his Twitter feed made. I'm guessing that people have
access to that. So I don't think this actually
erases it from the internet. Now as you can imagine with the
leader of the company. Now stepping down deleting all
of his social media presence and basically trying to erase
himself from the face of the Earth with that happening as
well as the company being. Exposed for repeatedly, making
fraudulent claims about their technology and misleading
statements and producing deceptive videos.
The stock price has not reacted well, to this since its peak.
It's currently down about 75%. That's a pretty significant
drop. Now, I made a joke about this.
I did a tweet where I tweeted out Nicholas stock in motion and
I highlighted from the top of this hill to the bottom of this
hill. So I was referencing the Nicola
one video where they rolled the truck down a hill.
I just want to highlight at one of the responses, though.
It was so good. This is from Aris.
He said, fix the camera angle for you and he tilted the image
to make it look like it was horizontal and I just really
appreciate that response. Good on you Marius, but in all
seriousness, this has been a complete disaster for everybody
involved in this stock. So far.
The investors that were duped into buying the stock based off
of deceptive videos and false pretenses.
Now, they're losing money. And of course, they're upset
about this. They have every right to be
upset about this. So Nicola, that's not only under
investigation. Shin-bi, the SEC and the doj
also has three lawsuits that are class action lawsuits against
investors. That feel like they were duped
investing into this company. So that's going on with it as
well. Now, with all of this happening.
It's also halted talks with other deals at Nicola had going
on one with BP. BP was in talks with helping
Nicola form. These hydrogen refueling
stations and that deals getting close to being scrapped at this
point. So this has been an unmitigated
disaster and even with all of this news.
Is still one company holding Nicola together.
At this point. There's one last thread that's
holding Nicola together. And it's GM.
GM has been very stubborn and admitting that they got into
this deal without doing the proper research from Bloomberg
at notes, that GM has lots of lawyers, accountants managers
analysts and engineers. And basically, they have all
these smart people working at this company.
Why wouldn't they be able to see who they're going into business?
With why wouldn't they be able to see?
That? Nicola was highly deceptive?
It would cause all this problems for the company.
Well, on asked about this, Mary Barra, the CEO of GM said that
they did appropriate diligence. That's what they said,
appropriate diligence. What does that mean?
Appropriate diligence when she was pushed on, exactly what that
means. She said, quote thorough review
of business legal and Technical matters.
That's what she said. A thorough review of the legal
Technical and business matters. Okay.
So, my question for Mary, Barra would be.
Did you know that that Nicola Video was bogus.
Did you know that before the Hindenburg report?
I'm assuming that GM didn't have a clue.
I know they have lots of smart engineers and analysts and
researchers, but that's what deception does it deceives
people that are even smart people that video was highly
deceptive. I know lots of Engineers that
could look at that and unless they were specifically looking
at it through a very critical lens.
They probably wouldn't have known that that truck wasn't
driving. They filmed in a very specific
way to create an illusion. So I think that GM got into this
deal without realizing that they had this many issues you're
going to be dealing with that nickel is going to be exposed
for all this deception. And I think at this point, GM is
just trying to not give up this deal.
They're trying to salvage it in any way possible because of how
one-sided the deal was with Nicola, Nicola gave up a bunch
of different things. GM practically gave up.
Nothing. All that.
GM gave up was a little bit of their reputation.
They just went into business with Nicolas.
So that's what GM gave up financially.
They have everything. The game from it.
So I think that firing Trevor Milton, which is what happened.
He was fired from this company. I think the reason that GM and
Nicola did that was to try to salvage this deal.
They still want to make this deal work.
They still want to make it so they can go into business
together and maybe getting rid of Trevor Milton will solve some
of their problems, maybe some of the criticisms of Nicola and all
the deceptive past. It will all follow Trevor Milton
to his Ranch. I doubt that's what's going to
happen. But I think that's what they're
trying to accomplish here now. I think I will mention as a word
of caution. I know, there's a lot of people
that are short this stock, and there's some people that might
be saying, well, what Trevor Milton gun, I might jump into
the stock now, because maybe it has a better future.
Maybe they'll just receive like a fine or something.
From the SEC. They can pay the fine and then
they'll move on with this partnership with GM that could
happen. Maybe that can happen.
And the stock price will Trend back upwards, but a word of
caution. I think that, if GM does end up
dumping Nicola, I think this stock plummets, It's like you
have not seen before. I think the last thread holding
Nicola together is GM. If they lose GM, it's game over
for Nicola. So, that's my word of caution.
If you're investing in the stock, be careful, if they bail
on this deal with GM, because if that happens, I think it will be
complete. Destruction for Nicola.
Now one last thing. I'll mention I did a poll on my
YouTube page. You'll see these in the home
screen of your YouTube. If you're subscribed to the
channel That red button underneath this video, but the
question was, Will Trevor Milton face.
Mental charges and I had over 5,000 votes, 68 percent of them
said, yes, 32% set know. So this is a lot of people that
believe that he's going to face criminal charges.
Now, if I had to put myself in one of these buckets, after
looking at the evidence of how misleading I believe Nicola was
in so many different instances. I think there's a very good
chance that either the doj or the SEC will bring charges
against him. They did the same things with
Elizabeth Holmes. They charged her, and I don't
see too much of a difference here.
I Think that a lot of investors were misled by false statements
about their technology so I could see them.
Absolutely. Bringing criminal charges to
Trevor Milton or Nicola. Is it a guarantee?
No, it's no guarantee that they will, but I think there's
definitely a case for it. Okay, the last bit of news, I
wanted to go over, was some breaking news that Fortnight
maker epic games as well as Spotify.
And then the owner of Kinder which is match group.
These companies have got together and they formed a
coalition called the Shin for app fairness, the Coalition for
app fairness a non-profit registered in Washington made.
Its public debut. Thursday, saying most app stores
collect excessive commissions from software developers on
users, digital purchases and stifle competition by giving
unfair advantages to their own products and services.
Obviously, the big company, they're targeting care is Apple.
Now, this coalition to me takes a much more serious tone than
what epic games is done. Epic games has done a lot of
shenanigans. Ends.
This is the way that you described it.
They have done backdoor access to their own payment system in
the App Store. They've launched.
Social media campaigns that are silly.
They've done what Apple describes is belligerent
tweeting. So, this type of antics the epic
games is done, I think, is kind of painted the whole movement
and a bad light, but coming out with this Coalition, I think,
does it in a more serious tone? The Coalition released a
statement that says, quote, the gatekeeper platforms that
operate these app stores must not abuse, the control they
enjoy and Must adhere to oversight to ensure their
behavior promotes a competitive market and provides consumers
with Equitable choice. So a statements like that.
You can see they're obviously trying to take a more
professional tone. This isn't the same type of
statement that you've seen epic games and Spotify do
independently. Now, apple is a specifically
about this. They said that they declined to
comment on the coalition's creation and separately.
The company on Thursday said it would be updating its web pages
to better illustrate the benefits of the App Store.
So this is Apple's defense. They're basically saying we're
going to just come out with a bunch of research, showing how
beneficial our app store is. And that's the way that we're
going to kind of address these claims because the Coalition and
all these people are trying to paint one side of it and we're
going to try to illustrate our side of it.
Now. I've had some time over the past
month or so just to kind of look at this issue.
The whole Apple competing with all these different categories
Apple coming out with their apple one bundle that basically
disadvantages all these different companies because of
their pricing power with it. It does make me question, how
much of an advantage? These companies have over other
companies. It's pretty incredible.
They can come and compete and basically, every category you
can dream of they compete in content and digital news, they
compete in movie and TV shows, so they're in movie productions.
Like, I've mentioned there a health company.
Now, Apple has the Apple watch, which is the most widely
distributed Healthcare device, and then they're coming out with
apple Fitness Plus. So now they're in Fitness and
then they have apple music. So they're in the music's.
Fear as well. And then they have apple
podcast. So they're doing that as well.
They can basically compete in everything and apples, not alone
in this. This is all the big thing stocks
Amazon announced recently in the past week that they're coming
out with the echelon Prime bike for five hundred dollars.
It's a Peloton knock off now, just the announcement of this,
the Amazon was entering into what Peloton was doing.
Dropped Peloton stock 5% that day.
Just with Amazon saying we're coming out with a knock off of
your bike. That's the power.
Amazon has. Now this specific example turned
out to be completely false Echelon basically said that they
had a deal with Amazon that didn't exist.
Amazon said it didn't build the prime bike and it tells Echelon
to stop selling it. So it's kind of a funny
situation but it shows the power of this, the stock went down 5%
when Amazon announced that it was coming out with a bike and
then it jumped back up like nine percent the next day after it
was revealed that Echelon really had no agreement with Amazon,
but the examples clear this shows what these companies can
do. Do they can basically compete in
any category they want and any other company that's trying to
make progress. They look at them as basically
beta testers. Like, does this type of thing
work out? If it does, we're either going
to buy it or we're going to build out the same thing and use
our massive resources, and our ecosystem to gain a massive
advantage. In 2019.
Steve Wozniak, who was one of the original?
Founders of Apple was asked specifically about this issue,
about big companies, like apple and Amazon and Facebook being
able to use their already enormous.
Advantage to move into other categories.
So easily a company that has a strong presence in one market,
using that presence to grow. Another Market is sort of
unfair. The example that I used to use
long ago was well, if you owned, if you owned all the gas
stations and then you said we're converting the nozzles of all of
our guests stations and they will only work with a new car
that we're coming out with that. Would just be unfair.
That would be, you know, using using your power in one market
to subsume another and we see this all over the The place.
I mean just apps that are come standard with products like
phones, you know, do that to an extent.
So I think that's a fair example, if somebody owned all
the gas stations and then they created a proprietary unique
nozzle. The only worked with a car that
they're also releasing. That would be pretty unfair.
I think Regulators would go after that very quickly, but you
have apple coming out with apple music that uniquely works with
apple Fitness Plus. So those are kind of coupled
together and then they bundle all their services together.
They make them so that they're more heavily integrated with
their products and other third-party software and it's
very difficult for other companies to compete with.
It's also a more nuanced and complicated to the point where
Congress has a difficult time, even understanding what's going
on and how many advantages that Apple has.
So at this point, it's too early to tell if Apple's going to
receive any type of government intervention or regulation, but
I think they eventually will, I think apples so big and so
powerful that the government's going to be forced to step in at
some point. Another, it's only a matter of
time. But even so that doesn't concern
me. I think Apple will find ways to
make a lot of money. Even if the government does come
in and do some type of Regulation.
The stock has been trading down. It's about 18 percent down from
its high. I bought Apple at an average
price of $90 per share. So that's my average price on
it. I'm still up like 21 percent at
one point. I was up 48 percent.
So that was when it hit the high right now, I'm up 21%.
I still am very bullish on this stock, long term.
I think to Apples going to do really Good long term if there
is any government intervention, will see how that affects this
talk. But right now apple is holding
their ground, okay? Time for a portfolio update
before I jump into questions. This is my passive income
portfolio. It's on a brokerage called M1
finance that you can sign up for this link in the description.
There's also a link to be able to view all my Holdings and the
current allocation of the portfolio.
So I have that updated. There's a link in the
description if you want to look at that.
I want to go over the last week or so because my gains have gone
down. Quite a bit as I'm sure most
people have as the market has gone down a lot.
September has not been a good month for the market.
Now, at one point. We were about 16 thousand
dollars in the green. Right now.
We're just hovering around eight thousand dollars in the green,
which means over the past week. It's dropped four thousand three
hundred dollars and then over the past month.
It's dropped $6800. So a lot of losses over the past
month. I want to just explain real
briefly, why I'm not concerned about this at all.
Okay, so I have no stress about this, knowing xiety.
It doesn't concern me. The market could continue to go
down and down and down and it wouldn't be something I'm
concerned about. And there's a couple reasons,
why, the first reason of why I'm not concerned at all.
When we have Market sell-offs is because I have a savings.
That is the most basic reason why I have a savings if the
market sells off. So what it doesn't change my
life at all? Just means I have to wait it out
a little bit longer. So if the portfolio enters into
the red or if some of these companies sell off, it doesn't
really matter. I have a savings if I lose my
job or something like that happens.
It doesn't really matter because I have a savings.
So, the first thing I recommend if you're having stress
investing, if you're stressing out about losing money in the
market, build up a savings, you should be building up your
Investments and your savings. There's people like Dave Ramsey
that recommend like three months of savings and I think that's a
pretty good recommendation. So that's the thing.
Number one, build up a savings. The second reason why I can
invest stress-free. Of what the market is doing is
because I'm not using leverage. Leverage is when you use margin
to invest in. So when you're you're taking a
loan, you're basically taking someone else's money and you're
throwing that into the stock market trying to make money with
their money. That's one form of Leverage.
Another is using call options and puts different tools like
that. The introduce a lot more risk
and they introduced a lot bigger potential to lose money.
There's a recent survey that 43 percent of retail investors are
trading with leverage 43%. I think this is a mistake for
almost everybody that's using leverage.
There's some different examples of people that might have
specific strategies that are okay, for the huge majority.
I think it's a mistake. The bullishness has pushed some
retail investors into the world of Leverage forty-three percent
of retail. Investors said that they are
using options margin or both these strategies amplify gains,
but they also magnify losses, which expose an investor to
significant downside risk. Significant downside risk here.
Investors that have been using leverage.
This one lost. 96 percent of his account which was six thousand
five hundred dollars. He said that he was doing really
good until September started because the market started to
Trend downwards. He was using leverage.
So he lost basically his entire account.
Here's an account of someone that did call options on Tesla's
battery day. He lost ninety seven thousand
dollars in one day because of that trade, here's another user
that bet again, call options on Tesla's battery day.
He lost. What is it?
Five six thousand dollars? Yeah, 6,000. 88% of his account
in one day and of course, there's virtually endless
examples of this. Here's another user that lost
forty thousand dollars in one day 71% of his account.
Again using leverage, the biggest thing that you have on
your side when you're investing is time.
If companies go down in price like we're seeing over the past
two weeks. If you're just invested with
your own money, you can wait it out.
You have time on your side. That's a huge benefit when you
use leverage and you use call options and puts that enters a
time constraint. That's a whole new level of risk
that you're entering involuntarily.
So I don't want that type of risk, in my portfolio.
I don't want that type of stress.
So, I just avoid it altogether. The last piece of advice, of
course, is to know what you own the Peter Lynch advice.
If you buy a bunch of random companies that you really have
no clue of what they're doing. It's going to be harder for you,
to hang on to them during a downturn.
If you've done a lot of research and you're very familiar and
comfortable with the companies that you own, it'll be far
easier to hang on to him during a downturn.
So I look at the companies I have and I know them pretty
well. Well, I've done a lot of
research on on all of them, especially my top Holdings.
So I have no problems holding these companies into a downturn.
So these three things, combined it basically protects me from
having any amount of stress investing, if the market
continues to Trend down, that's okay.
I'll hold onto the companies. I know I'm really well.
I'm not using leverage. I have no time constraints.
I can wait this out for a very long time.
So, in the meantime, I'm going to continue to buy companies.
I think are good deal. Okay, let's get to some emails
to email. Address is Joseph at Joseph
Carlson show.com That's a Joseph at Joseph Carlson show.com., You
can email me any question or anything on your mind and I'll
put it on the episode. This one is from Joe.
He says, Joseph you love your Disney and especially their
streaming service growth. I have Disney Plus for free for
one year. Thanks to my, Verizon Unlimited
Plan perks. With this expiring late fall.
I'll be canceling. Disney plus, is this a concern
for Disney? How many subscribers will this
affect? Okay, Joe.
I don't think that this is something to be very concerned
about. If you look at every single
successful streaming service, whether it's Netflix Disney Plus
or even Apple TV, plus all of them.
They give away their streaming service for free or at very
subsidized cost to get new customers introduced to it.
It's hard to get customer engagement into your platform.
So a lot of people give trial periods.
Apple TV plus is doing that. If you buy an Apple device,
they're giving you a year. Free of Apple TV plus.
Now, why would Apple do that to make it a habitual thing to make
it part of your life, so, That year is up.
You're already so used to getting the Apple TV + that you
just continue to pay for it. So they all do this and it's one
of the advantages of having such a scalable business.
They can offer you Disney Plus for a year.
And it really cost Disney nothing to do that.
It really doesn't add much expense to them and there's a
good chance that a big portion of the people they give it away
to for free. A big portion will stay you say
that you're not that might be true.
You might cancel it. As soon as the trials up, there
might be some time. And maybe Disney will come out
with some series that appeal to you in between now and when your
trials up, so that could happen. But even assuming that you do
cancel and Disney plus trials up.
There's going to be a huge portion of customers that don't,
there's never one hundred percent of people that stay
after trial. I would assume that Disney plus
a similar, they're going to give away a year free to millions of
people and they'll have like 60 to 70 percent of those people.
Stay beyond the first year and they gained all those customers
at essentially know. Cost to them.
So I think it's a very effective strategy as long as the drop-off
isn't too significant. I think that it will continually
be a net gain for Disney. I think the long-term viability
of Disney plus is going to be determined on how many good
series they can come out with how many buzzworthy series.
There's different TV series that they might be okay, but they
don't have any Buzz. Nobody talks about them, and
then their series that people talk a lot about Game of Thrones
was a huge buzzworthy Series. So when you get those type of
series, your service is going to do.
Do really well as a result. The Mandalorian was a series
that had a lot of Buzz. So the second season of that, I
think will create more interest for Disney.
They can't rely on their current Library.
A lot of people are are finding out while I've watched most of
the things that Disney has created already.
So they need to come out with, with new series, new things like
the Mandalorian. That create a lot of Buzz.
They need to come out with Marvel and Avenger spinoff
series, and different things like that.
If they're able to continue to keep Buzz.
I think the service will keep growing like crazy and As 12
months ago. I decided that I needed to start
managing my money in a smarter way and have it work better for
me. Ever since.
I've spent a lot of time, researching learning about the
stock market and even how to Value individual companies.
I feel like I'm just starting to build a decent portfolio with a
mix of, both active and passive elements, and was feeling
confident. I'm on the right path.
I'm now interested in trading and plan on holding for the
long-term. Now, my partner has said to me
that the only way to build wealth is through owning
property. I'm going to get nowhere.
With the stock market, I'm completely wasting my time.
This is totally taken the wind out of my sails and I feel like
a failure. I know nothing about property
how to manage it or where I would even buy.
What are your thoughts on shares versus properties for Building
Wealth. Am I wasting my time with
shares? Well Andy, there's a couple
problems with what your friend they're saying if he or she is
saying that the only way to build wealth, let me get that.
Straight. The only way to build a lot of
wealth is through owning property.
What do they think of? The fact that basically every
super wealthy person in America, owns companies.
They own stocks, simply put stocks are just a form of owning
companies. You have people like Jeff Bezos.
That owns a lot of Amazon stock. You have Mark Zuckerberg that
owns a lot of Facebook, you know, people that own a lot of
Apple people that own. A lot of Microsoft.
These are the wealthy people in America.
We have Elon Musk that just became wealthy by guess what?
Owning a lot of Tesla stock. That's basically the list.
Of all the richest people in the world.
They own a lot of companies land does generate wealth over time.
So I don't think that buying a lot of land and building a
property on it or just buying a rental, is a bad idea.
I think that's a pretty good investment.
So I'm not saying that real estate is a bad investment.
I think it's a pretty phenomenal investment for Building Wealth,
but saying that the only way to build wealth is through owning
property is completely ridiculous.
They just need to look at any of the richest people in the world.
The top 100. Or the top 500 and every single
one of them will have something in common.
They own a lot of stocks. They run companies, they own
shares in companies. So I would not listen to your
friend there on this piece of advice.
I do think that owning real estate is a good thing to do.
Maybe you can add that into your portfolio down the road, but
don't get discouraged about buying productive companies.
Historically speaking. There's never been a better
investment. Okay?
Well, on that note, I'm going to end this episode there.
I appreciate all of you for tuning in.
I'll try to have another episode.
Out this weekend, and I will talk to you guys soon.