1 00:00:00,100 --> 00:00:02,800 Welcome to the Joseph Carlson show on today's episode, 2 00:00:02,900 --> 00:00:05,600 Microsoft buys the video game maker Bethesda. 3 00:00:05,800 --> 00:00:08,900 They make games like Fallout Elder of the Scrolls and doom. 4 00:00:09,100 --> 00:00:12,600 This to me is a pretty big push for Microsoft to go into gaming. 5 00:00:12,600 --> 00:00:15,300 We know that they have the Xbox. They're already pretty big into 6 00:00:15,300 --> 00:00:18,000 gaming but they're just going further and further into the 7 00:00:18,000 --> 00:00:20,500 gaming scene. I think that this is a good move 8 00:00:20,500 --> 00:00:22,300 for Microsoft. So I'm going to be talking about 9 00:00:22,300 --> 00:00:24,300 this deal. We also have news to epic games 10 00:00:24,300 --> 00:00:28,100 has joined Spotify as well as other companies, like match that 11 00:00:28,100 --> 00:00:31,000 make Kinder. They've all Joined together and 12 00:00:31,000 --> 00:00:34,000 formed a coalition, the Coalition for app fairness. 13 00:00:34,000 --> 00:00:38,200 So they're seeking legal and Regulatory ways of addressing 14 00:00:38,200 --> 00:00:41,200 apples cax that they have for the App Store. 15 00:00:41,200 --> 00:00:44,500 That's what they call it. Right, the 30% Apple digital 16 00:00:44,500 --> 00:00:47,400 text. So this is a bigger push to put 17 00:00:47,400 --> 00:00:49,500 pressure on Apple to change their policies. 18 00:00:49,700 --> 00:00:51,900 I'm going to be sharing my thoughts on this and then we 19 00:00:51,900 --> 00:00:54,300 have Nicola in the news. Of course, Trevor Milton. 20 00:00:54,600 --> 00:00:58,400 He resigned last Sunday. He definitely voluntarily 21 00:00:58,400 --> 00:01:00,600 resigned. He definitely I wasn't fired 22 00:01:00,600 --> 00:01:03,100 from the company. In order to try to salvage this 23 00:01:03,100 --> 00:01:05,700 deal with GM and Nicola, that's not what happened. 24 00:01:05,800 --> 00:01:09,100 He voluntarily resigned. He also deleted his Instagram 25 00:01:09,100 --> 00:01:11,000 and Twitter. They're being investigated by 26 00:01:11,000 --> 00:01:14,300 the SEC and the doj. So a lot of news regarding 27 00:01:14,300 --> 00:01:16,200 Nicola. I want to check on that as well. 28 00:01:16,500 --> 00:01:19,000 And then we have a portfolio update of my passive income 29 00:01:19,000 --> 00:01:22,400 portfolio, On Em, on finance. It's been a pretty rough week. 30 00:01:22,400 --> 00:01:25,600 I go to the one week view, we're down about five thousand dollars 31 00:01:25,600 --> 00:01:28,800 in the past five days. So that's a pretty, pretty bad 32 00:01:28,800 --> 00:01:31,300 week in terms of the Kitt, I'm going to share some thoughts on 33 00:01:31,300 --> 00:01:33,700 this and specific. I'm going to share why this 34 00:01:33,700 --> 00:01:37,100 doesn't concern me at all, why I have zero concerns when things 35 00:01:37,100 --> 00:01:39,800 like this happen in the market, I'll be sharing a few tips of 36 00:01:39,800 --> 00:01:42,700 what I think will make it so that you can invest, completely 37 00:01:42,700 --> 00:01:44,900 stress-free. You can put money in the market 38 00:01:45,100 --> 00:01:48,200 and you have zero stress doing so so I'll be sharing tips on 39 00:01:48,200 --> 00:01:50,100 how to do that. Now, before we get into any of 40 00:01:50,100 --> 00:01:52,800 this, I have to mention, I do have a patreon to help support 41 00:01:52,800 --> 00:01:54,900 the channel. So I don't have to do ads every 42 00:01:54,900 --> 00:01:57,300 five minutes of the video. The patreon unlocks a lot of 43 00:01:57,300 --> 00:01:59,400 benefits like a Discord Investment Group. 44 00:02:00,000 --> 00:02:02,800 Episodes of The jalsa, Carlson show a dividend tracking 45 00:02:02,800 --> 00:02:04,600 website, as well as a bunch of other things. 46 00:02:04,600 --> 00:02:06,800 So you can try that out for free. 47 00:02:06,800 --> 00:02:08,600 There's a link in the description if you want to join 48 00:02:08,600 --> 00:02:09,199 it. Okay. 49 00:02:09,199 --> 00:02:11,900 The first thing I want to jump into I think is pretty big news. 50 00:02:12,100 --> 00:02:14,000 This week. It was announced at Microsoft 51 00:02:14,000 --> 00:02:16,200 bought Bethesda. They really bought a company 52 00:02:16,200 --> 00:02:19,500 called zenimax, which sounds like some type of pill. 53 00:02:19,500 --> 00:02:22,200 It sounds like a Healthcare company zenimax, but really 54 00:02:22,200 --> 00:02:25,600 zenimax. Media is the owner of Bethesda. 55 00:02:25,700 --> 00:02:28,000 So Microsoft bought the entire company. 56 00:02:28,300 --> 00:02:31,600 The the creator of Fallout Elder of the Scrolls and doom. 57 00:02:31,600 --> 00:02:35,400 A lot of these really big beloved games by Gamers and now 58 00:02:35,400 --> 00:02:38,400 Microsoft owns them. This is, I think, part of 59 00:02:38,400 --> 00:02:41,700 Microsoft's, greater push into gaming, they see gaming as a 60 00:02:41,700 --> 00:02:44,900 growing field, Microsoft wants to own a big part of that. 61 00:02:44,900 --> 00:02:46,700 And so they've been trying to do a lot of things. 62 00:02:46,800 --> 00:02:50,000 Their last attempt was was coming out with mixer, which was 63 00:02:50,000 --> 00:02:52,700 going to compete with twitch that didn't work out. 64 00:02:52,700 --> 00:02:54,000 So they made an attempt. There. 65 00:02:54,000 --> 00:02:56,000 It didn't work out there doing the next thing. 66 00:02:56,000 --> 00:02:59,100 Now, they're buying different game, making companies and I 67 00:02:59,100 --> 00:03:02,600 think that this is a Smart move Microsoft will soon be releasing 68 00:03:02,600 --> 00:03:06,500 the Xbox series X for 500 bucks. It's going to be the same price 69 00:03:06,500 --> 00:03:09,700 as the Sony PlayStation. And the big difference is is 70 00:03:09,700 --> 00:03:12,500 that Microsoft is actually releasing I think in terms of 71 00:03:12,500 --> 00:03:15,700 the specs, it's a more powerful machine than the Sony 72 00:03:15,700 --> 00:03:18,400 PlayStation. So, it's more powerful. 73 00:03:18,500 --> 00:03:22,400 But the downside is, is the exclusive games for the Xbox are 74 00:03:22,400 --> 00:03:25,000 pretty weak compared to the exclusive games for the 75 00:03:25,000 --> 00:03:27,400 PlayStation. So the PlayStation has a big 76 00:03:27,400 --> 00:03:30,900 Advantage. So Microsoft buying De well, 77 00:03:30,900 --> 00:03:32,200 that changes things a little bit. 78 00:03:32,200 --> 00:03:33,900 Now. They own a really big game 79 00:03:33,900 --> 00:03:35,400 studio. So this is definitely going to 80 00:03:35,408 --> 00:03:37,200 be something that helps out Xbox sales. 81 00:03:37,300 --> 00:03:40,300 So I think the big push for buying this was specifically to 82 00:03:40,300 --> 00:03:42,800 have great exclusive games. I think that was the reason they 83 00:03:42,800 --> 00:03:44,400 did it. Here is Phil Spencer. 84 00:03:44,400 --> 00:03:47,200 He's the head of Xbox at Microsoft and he's asked a few 85 00:03:47,200 --> 00:03:49,100 questions about this acquisition. 86 00:03:49,400 --> 00:03:51,700 One of them is just, how does this play into your overall 87 00:03:51,700 --> 00:03:52,900 strategy? Yeah. 88 00:03:53,000 --> 00:03:56,200 I mean, Gamers love great games. You just mentioned. 89 00:03:56,200 --> 00:03:59,800 We've got the Xbox consoles going on, pre-order tomorrow for 90 00:04:00,000 --> 00:04:02,400 Next Generation. Just last week. 91 00:04:02,400 --> 00:04:04,900 We added Game, Pass Cloud streaming. 92 00:04:04,900 --> 00:04:08,100 So people can play this game pass Library, across all of 93 00:04:08,100 --> 00:04:11,500 their phones, Android phones out there and then obviously game 94 00:04:11,500 --> 00:04:13,600 paths, which is the largest game content. 95 00:04:13,600 --> 00:04:16,300 Subscription out. There are 15 million subscribers 96 00:04:16,300 --> 00:04:18,899 and growing. So getting to work with zenimax 97 00:04:18,899 --> 00:04:21,800 to bring their amazing collection of games to game 98 00:04:21,800 --> 00:04:23,400 passes. Just an incredible opportunity 99 00:04:23,400 --> 00:04:25,100 for us. See what he does. 100 00:04:25,100 --> 00:04:27,500 He doesn't Focus specifically on the Xbox. 101 00:04:27,700 --> 00:04:31,300 Microsoft strategy is no. Longer to be completely 102 00:04:31,500 --> 00:04:33,600 device-specific. They don't want to be just a 103 00:04:33,608 --> 00:04:36,500 gaming company for the Xbox or for just phones. 104 00:04:36,900 --> 00:04:40,400 They want to basically build out a cloud gaming platform and then 105 00:04:40,400 --> 00:04:43,100 have it so that you can play that on whatever type of device 106 00:04:43,100 --> 00:04:46,100 you want. The Xbox is offered as kind of a 107 00:04:46,108 --> 00:04:48,100 loss leader. They're basically building these 108 00:04:48,100 --> 00:04:50,900 five hundred dollar gaming machines that I think cost 109 00:04:50,900 --> 00:04:54,000 probably more than 500 dollars to actually manufacture and 110 00:04:54,000 --> 00:04:57,000 distribute and they're getting people into their ecosystem. 111 00:04:57,300 --> 00:04:59,000 So again, they can sell their services. 112 00:04:59,300 --> 00:05:02,300 There's a Theme among every great company. 113 00:05:02,300 --> 00:05:04,200 Right now. You might notice this. 114 00:05:04,200 --> 00:05:06,700 It's something I've tried to point out over and over again. 115 00:05:06,900 --> 00:05:10,100 The reason that I think Disney's multiple is going to expand 116 00:05:10,400 --> 00:05:14,000 subscription Services. The reason that Netflix has done 117 00:05:14,000 --> 00:05:17,500 so, well subscription Services. The reason to Amazon has done so 118 00:05:17,500 --> 00:05:20,400 well because of their Amazon Prime subscription service 119 00:05:20,700 --> 00:05:22,900 Microsoft is a service based company. 120 00:05:23,200 --> 00:05:25,300 They definitely want to do the same thing with gaming. 121 00:05:25,600 --> 00:05:28,100 This is their next push into doing that if they don't have 122 00:05:28,100 --> 00:05:31,000 the exclusive titles, they I can't draw people into their 123 00:05:31,000 --> 00:05:33,800 platform, like Sony has been able to now, the next question 124 00:05:33,800 --> 00:05:36,600 is more of a financial one. He asks, what are they going to 125 00:05:36,600 --> 00:05:38,900 do with zenimax? What is Microsoft going to do 126 00:05:38,900 --> 00:05:40,700 with this company? After purchasing them? 127 00:05:40,800 --> 00:05:43,700 Are they going to change any of how its operating, or they going 128 00:05:43,700 --> 00:05:47,500 to just let them do their thing? Our plan is to leave it alone. 129 00:05:47,500 --> 00:05:50,300 I mean, zenimax has an amazing track record of building great 130 00:05:50,300 --> 00:05:52,500 games. Our goal is to make zenimax. 131 00:05:52,500 --> 00:05:55,200 The best zenimax. They can be working individually 132 00:05:55,200 --> 00:05:59,000 with their Studios on the great platform technology that we have 133 00:05:59,000 --> 00:06:02,300 getting their There's feedback into the things that we need to 134 00:06:02,300 --> 00:06:04,400 go build. That's just a critical flywheel 135 00:06:04,400 --> 00:06:06,500 for us. Innovating is the feedback of 136 00:06:06,500 --> 00:06:08,600 the world's best creators on our platforms. 137 00:06:08,900 --> 00:06:11,700 Now, I'll tell you that this is the answer that, every company 138 00:06:11,700 --> 00:06:14,100 gives when they acquire a smaller company. 139 00:06:14,200 --> 00:06:16,400 They always say that they're never going to shake things up. 140 00:06:16,400 --> 00:06:19,600 They're never going to go and and make different cuts to the 141 00:06:19,600 --> 00:06:21,900 company. But usually they do end up doing 142 00:06:21,900 --> 00:06:23,100 that. That's not something they're 143 00:06:23,100 --> 00:06:24,200 going to announce. They're not going to say. 144 00:06:24,400 --> 00:06:26,300 Yeah, we do plan on firing a bunch of people and 145 00:06:26,300 --> 00:06:29,200 restructuring different Departments of the company, but 146 00:06:29,300 --> 00:06:31,200 eventually They usually end up doing that. 147 00:06:31,200 --> 00:06:35,600 So I hope that Microsoft does keep Bethesda kind of the way it 148 00:06:35,600 --> 00:06:37,000 is. I think most the times when a 149 00:06:37,008 --> 00:06:38,800 bigger company, acquires a smaller one. 150 00:06:39,200 --> 00:06:42,400 They make the mistake of trying to run the smaller one and the 151 00:06:42,400 --> 00:06:46,000 same way that the bigger one runs and usually it's better 152 00:06:46,000 --> 00:06:48,700 just to leave the smaller company to run how it has been 153 00:06:48,700 --> 00:06:50,600 and what's made it successful in the first place. 154 00:06:50,700 --> 00:06:53,500 The next question is asked, is about Apple and their policy 155 00:06:53,500 --> 00:06:55,800 with cloud gaming. Apple has confirmed over and 156 00:06:55,800 --> 00:06:58,800 over again, that every single app that gets pushed to the App 157 00:06:58,800 --> 00:07:01,200 Store needs. Go through their guidelines. 158 00:07:01,200 --> 00:07:04,500 They need to check it for security issues for quality and 159 00:07:04,500 --> 00:07:06,600 make sure it's going through their guidelines. 160 00:07:06,800 --> 00:07:10,100 And when you have cloud gaming, you can actually push updates 161 00:07:10,300 --> 00:07:13,300 through the app without it, going through apples guidelines. 162 00:07:13,300 --> 00:07:15,500 So Apple saying that doesn't really work with us. 163 00:07:15,500 --> 00:07:18,000 We can't have cloud gaming. And the way that you're trying 164 00:07:18,000 --> 00:07:20,700 to do it tell me about the gaming ecosystems. 165 00:07:21,000 --> 00:07:24,700 Overall, Microsoft has spoken out against the way that Apple 166 00:07:24,700 --> 00:07:28,700 controls its App Store on those lines, but how is that really 167 00:07:28,700 --> 00:07:31,300 different from the purse? Percentage that console makers 168 00:07:31,300 --> 00:07:33,000 take on games on their platforms. 169 00:07:33,600 --> 00:07:37,000 When you get large-scale General platform General compute 170 00:07:37,000 --> 00:07:40,500 platforms, like mobile phones. People should have access to the 171 00:07:40,500 --> 00:07:43,100 great content and services that are out there and we remain 172 00:07:43,100 --> 00:07:45,200 committed to that. There are over three billion 173 00:07:45,200 --> 00:07:47,000 people who play video games today. 174 00:07:47,000 --> 00:07:50,300 Many of them play on phones, and we're committed to Bringing game 175 00:07:50,300 --> 00:07:53,300 passed to all mobile phones out there, including Apple phones 176 00:07:53,500 --> 00:07:55,900 will continue the conversations, and I'm sure we'll be able to 177 00:07:55,907 --> 00:07:58,300 get to some resolution. So there, he gives kind of a 178 00:07:58,300 --> 00:07:59,700 generic answer. He really doesn't address. 179 00:07:59,900 --> 00:08:03,500 What he was asked, he says well phones are generic use their 180 00:08:03,500 --> 00:08:06,500 more generic use than an Xbox, but that doesn't really address 181 00:08:06,500 --> 00:08:10,600 why Microsoft is okay charging people 30% to be on their device 182 00:08:10,800 --> 00:08:13,100 and they're saying the Apple shouldn't be able to do the same 183 00:08:13,100 --> 00:08:16,000 thing that Apple shouldn't be able to charge 30% to be on 184 00:08:16,000 --> 00:08:18,100 their device. Our biggest issue is in a 185 00:08:18,108 --> 00:08:20,500 financial issue. Our biggest issue is that cloud 186 00:08:20,500 --> 00:08:24,500 game streaming apps are actually not allowed in the way that game 187 00:08:24,500 --> 00:08:26,300 passes built for other platforms. 188 00:08:26,300 --> 00:08:29,900 So for us, this is about Gamers having great access to The 189 00:08:29,900 --> 00:08:32,799 content from the Creator's, they love on the devices. 190 00:08:32,799 --> 00:08:35,700 They own play the games that you want with the community that you 191 00:08:35,700 --> 00:08:37,900 want to play on the devices that you have. 192 00:08:37,900 --> 00:08:39,799 That's our goal. So he says, they're not worried 193 00:08:39,799 --> 00:08:43,400 about the thirty percent fee. In fact, Microsoft and epic 194 00:08:43,400 --> 00:08:45,800 games have completely different concerns about this. 195 00:08:46,000 --> 00:08:50,300 Epic games is entirely focused on that 30 percent fee. 196 00:08:50,500 --> 00:08:52,400 They have some other asks as well. 197 00:08:52,600 --> 00:08:55,200 They want to be able to have their own, you know their own 198 00:08:55,200 --> 00:08:58,700 app store on Apple devices, but they're mostly worried about 199 00:08:58,700 --> 00:09:00,600 paying 30%. Apple, they say that. 200 00:09:00,600 --> 00:09:03,100 That's anti-competitive. Microsoft doesn't really care 201 00:09:03,100 --> 00:09:05,800 about that thirty percent fee. I'm sure they do a little, but 202 00:09:05,800 --> 00:09:08,900 their biggest focus is getting cloud gaming. 203 00:09:08,900 --> 00:09:11,700 And the way that they imagine it on the iPhone, which apples 204 00:09:11,700 --> 00:09:13,200 currently sing. That doesn't really work with 205 00:09:13,200 --> 00:09:16,100 how we vet our apps. Now, I have Microsoft as one of 206 00:09:16,100 --> 00:09:20,100 my for tech companies Microsoft is a pretty good dividend tech 207 00:09:20,100 --> 00:09:21,500 company. You're looking for a company 208 00:09:21,500 --> 00:09:24,600 that has substantial growth. It's in the text fair and it's a 209 00:09:24,608 --> 00:09:26,900 dividend pair. Microsoft is a very good one 210 00:09:26,900 --> 00:09:29,000 that fits within that mold over the last 10 years. 211 00:09:29,000 --> 00:09:33,400 Microsoft has Had a 14.6% compound annual growth rate with 212 00:09:33,400 --> 00:09:35,800 their dividend. So that is a pretty rapid 213 00:09:35,800 --> 00:09:38,400 dividend growth over a 10-year period and they've done that 214 00:09:38,400 --> 00:09:40,900 while keeping their payout ratio study the entire time. 215 00:09:40,900 --> 00:09:43,100 So they're rapidly growing their dividend. 216 00:09:43,100 --> 00:09:46,000 They're keeping their payout ratio study and the company has 217 00:09:46,000 --> 00:09:48,700 a lot of growth as well. So this company just checks a 218 00:09:48,700 --> 00:09:51,600 lot of boxes that I like and the continual move into gaming, I 219 00:09:51,600 --> 00:09:54,500 think is very good. I think gaming is just getting 220 00:09:54,500 --> 00:09:56,400 started. A lot of people think, well, 221 00:09:56,400 --> 00:09:58,600 it's already so big already, so many people game. 222 00:09:58,800 --> 00:10:02,100 I think it will just get Bigger and bigger gaming is such a big 223 00:10:02,100 --> 00:10:04,000 industry. It's hard to pinpoint which 224 00:10:04,000 --> 00:10:06,200 companies are really going to take advantage of it the most 225 00:10:06,400 --> 00:10:08,000 but I think Microsoft is a pretty good bet. 226 00:10:08,000 --> 00:10:11,900 They have a lot of advantages. Already the 7.5 billion dollars 227 00:10:11,900 --> 00:10:13,900 in my opinion is money very well spent. 228 00:10:14,000 --> 00:10:15,900 I think that they'll get a very good return on that. 229 00:10:16,100 --> 00:10:19,000 I'm glad that Microsoft did deals like this rather than 230 00:10:19,000 --> 00:10:21,900 doing The Tick-Tock deal because I think what that deal, they may 231 00:10:21,900 --> 00:10:24,300 have overpaid for something that may have not fit well with the 232 00:10:24,300 --> 00:10:26,300 company, but this deal I'm very happy about. 233 00:10:26,300 --> 00:10:28,300 It makes me more bullish on Microsoft. 234 00:10:28,700 --> 00:10:29,200 Okay. Next. 235 00:10:29,200 --> 00:10:31,000 I want to talk. About Nikola specifically, 236 00:10:31,000 --> 00:10:33,400 Trevor, Milton. We know that last Sunday, 237 00:10:33,400 --> 00:10:35,800 evening. He voluntarily resigned. 238 00:10:35,800 --> 00:10:39,200 He said you just didn't want to bring the company down with 239 00:10:39,200 --> 00:10:40,600 them. So, he went to the board and 240 00:10:40,600 --> 00:10:43,100 said, You know, guys, I just want to step down. 241 00:10:43,200 --> 00:10:45,300 I don't think I want to play a role in this company anymore. 242 00:10:45,500 --> 00:10:48,100 I just want to do what's best and step down for the company. 243 00:10:48,300 --> 00:10:51,300 You definitely wasn't fired. They definitely didn't force him 244 00:10:51,300 --> 00:10:54,700 out of the company to salvage. This deal with GM and Nicola. 245 00:10:54,700 --> 00:10:56,300 I'm sure that's not what happened. 246 00:10:56,600 --> 00:10:59,100 He voluntarily resigned from the company. 247 00:10:59,200 --> 00:11:02,500 Now, He didn't just resign but he resigned with a golden 248 00:11:02,500 --> 00:11:04,000 parachute. So he jumped out of that 249 00:11:04,000 --> 00:11:06,600 crashing plane with a golden parachute worth billions of 250 00:11:06,600 --> 00:11:08,600 dollars. Now, he's presumed lie in his 32 251 00:11:08,600 --> 00:11:12,800 million dollar Ranch hiding away from the SEC and doj that are 252 00:11:12,800 --> 00:11:16,300 both investigating Nicola and Trevor Milton for continually 253 00:11:16,300 --> 00:11:19,400 making fraudulent claims. So that might be what he's doing 254 00:11:19,400 --> 00:11:22,100 right now, but he's also found time to delete both his 255 00:11:22,100 --> 00:11:24,600 Instagram account and his Twitter account. 256 00:11:24,600 --> 00:11:27,500 Which, at this point. I think it was probably a good 257 00:11:27,500 --> 00:11:29,000 idea from to delete his Twitter account. 258 00:11:29,000 --> 00:11:31,100 Basically his Twitter account right now. 259 00:11:31,300 --> 00:11:34,500 Acts as an Evidence, log of all the different fraudulent claims 260 00:11:34,500 --> 00:11:36,000 that he's made up until this point. 261 00:11:36,000 --> 00:11:38,200 So getting rid of that, that's probably a good thing. 262 00:11:38,500 --> 00:11:42,300 But I think there's a good chance that there's backups of 263 00:11:42,300 --> 00:11:44,700 his Twitter feed made. I'm guessing that people have 264 00:11:44,700 --> 00:11:46,900 access to that. So I don't think this actually 265 00:11:46,900 --> 00:11:50,000 erases it from the internet. Now as you can imagine with the 266 00:11:50,000 --> 00:11:52,400 leader of the company. Now stepping down deleting all 267 00:11:52,400 --> 00:11:55,400 of his social media presence and basically trying to erase 268 00:11:55,400 --> 00:11:58,500 himself from the face of the Earth with that happening as 269 00:11:58,500 --> 00:12:01,500 well as the company being. Exposed for repeatedly, making 270 00:12:01,600 --> 00:12:04,100 fraudulent claims about their technology and misleading 271 00:12:04,100 --> 00:12:06,400 statements and producing deceptive videos. 272 00:12:06,800 --> 00:12:10,500 The stock price has not reacted well, to this since its peak. 273 00:12:10,500 --> 00:12:14,600 It's currently down about 75%. That's a pretty significant 274 00:12:14,600 --> 00:12:16,800 drop. Now, I made a joke about this. 275 00:12:17,000 --> 00:12:21,400 I did a tweet where I tweeted out Nicholas stock in motion and 276 00:12:21,400 --> 00:12:23,900 I highlighted from the top of this hill to the bottom of this 277 00:12:23,900 --> 00:12:26,000 hill. So I was referencing the Nicola 278 00:12:26,000 --> 00:12:28,500 one video where they rolled the truck down a hill. 279 00:12:28,900 --> 00:12:31,000 I just want to highlight at one of the responses, though. 280 00:12:31,000 --> 00:12:32,900 It was so good. This is from Aris. 281 00:12:32,900 --> 00:12:36,700 He said, fix the camera angle for you and he tilted the image 282 00:12:36,700 --> 00:12:39,400 to make it look like it was horizontal and I just really 283 00:12:39,400 --> 00:12:42,700 appreciate that response. Good on you Marius, but in all 284 00:12:42,700 --> 00:12:46,100 seriousness, this has been a complete disaster for everybody 285 00:12:46,100 --> 00:12:47,800 involved in this stock. So far. 286 00:12:48,000 --> 00:12:50,700 The investors that were duped into buying the stock based off 287 00:12:50,700 --> 00:12:52,700 of deceptive videos and false pretenses. 288 00:12:52,900 --> 00:12:54,800 Now, they're losing money. And of course, they're upset 289 00:12:54,800 --> 00:12:56,400 about this. They have every right to be 290 00:12:56,400 --> 00:12:59,200 upset about this. So Nicola, that's not only under 291 00:12:59,200 --> 00:13:01,700 investigation. Shin-bi, the SEC and the doj 292 00:13:01,800 --> 00:13:05,400 also has three lawsuits that are class action lawsuits against 293 00:13:05,400 --> 00:13:07,700 investors. That feel like they were duped 294 00:13:07,700 --> 00:13:10,700 investing into this company. So that's going on with it as 295 00:13:10,700 --> 00:13:12,300 well. Now, with all of this happening. 296 00:13:12,300 --> 00:13:15,600 It's also halted talks with other deals at Nicola had going 297 00:13:15,600 --> 00:13:19,400 on one with BP. BP was in talks with helping 298 00:13:19,400 --> 00:13:21,700 Nicola form. These hydrogen refueling 299 00:13:21,700 --> 00:13:25,100 stations and that deals getting close to being scrapped at this 300 00:13:25,100 --> 00:13:27,000 point. So this has been an unmitigated 301 00:13:27,000 --> 00:13:29,100 disaster and even with all of this news. 302 00:13:29,700 --> 00:13:33,100 Is still one company holding Nicola together. 303 00:13:33,100 --> 00:13:35,500 At this point. There's one last thread that's 304 00:13:35,500 --> 00:13:38,100 holding Nicola together. And it's GM. 305 00:13:38,300 --> 00:13:42,400 GM has been very stubborn and admitting that they got into 306 00:13:42,400 --> 00:13:45,400 this deal without doing the proper research from Bloomberg 307 00:13:45,400 --> 00:13:49,000 at notes, that GM has lots of lawyers, accountants managers 308 00:13:49,000 --> 00:13:51,900 analysts and engineers. And basically, they have all 309 00:13:51,900 --> 00:13:53,500 these smart people working at this company. 310 00:13:53,700 --> 00:13:55,900 Why wouldn't they be able to see who they're going into business? 311 00:13:55,900 --> 00:13:57,300 With why wouldn't they be able to see? 312 00:13:57,300 --> 00:13:59,600 That? Nicola was highly deceptive? 313 00:13:59,800 --> 00:14:01,800 It would cause all this problems for the company. 314 00:14:01,900 --> 00:14:05,500 Well, on asked about this, Mary Barra, the CEO of GM said that 315 00:14:05,500 --> 00:14:08,600 they did appropriate diligence. That's what they said, 316 00:14:08,600 --> 00:14:11,100 appropriate diligence. What does that mean? 317 00:14:11,100 --> 00:14:14,100 Appropriate diligence when she was pushed on, exactly what that 318 00:14:14,100 --> 00:14:16,500 means. She said, quote thorough review 319 00:14:16,500 --> 00:14:19,000 of business legal and Technical matters. 320 00:14:19,500 --> 00:14:21,800 That's what she said. A thorough review of the legal 321 00:14:22,200 --> 00:14:24,600 Technical and business matters. Okay. 322 00:14:24,600 --> 00:14:26,900 So, my question for Mary, Barra would be. 323 00:14:27,400 --> 00:14:31,100 Did you know that that Nicola Video was bogus. 324 00:14:31,300 --> 00:14:34,000 Did you know that before the Hindenburg report? 325 00:14:34,000 --> 00:14:36,200 I'm assuming that GM didn't have a clue. 326 00:14:36,200 --> 00:14:39,200 I know they have lots of smart engineers and analysts and 327 00:14:39,300 --> 00:14:42,600 researchers, but that's what deception does it deceives 328 00:14:42,600 --> 00:14:45,700 people that are even smart people that video was highly 329 00:14:45,700 --> 00:14:48,300 deceptive. I know lots of Engineers that 330 00:14:48,300 --> 00:14:50,900 could look at that and unless they were specifically looking 331 00:14:50,900 --> 00:14:52,800 at it through a very critical lens. 332 00:14:52,900 --> 00:14:54,900 They probably wouldn't have known that that truck wasn't 333 00:14:54,900 --> 00:14:56,900 driving. They filmed in a very specific 334 00:14:56,900 --> 00:15:01,300 way to create an illusion. So I think that GM got into this 335 00:15:01,300 --> 00:15:04,500 deal without realizing that they had this many issues you're 336 00:15:04,500 --> 00:15:07,000 going to be dealing with that nickel is going to be exposed 337 00:15:07,000 --> 00:15:10,200 for all this deception. And I think at this point, GM is 338 00:15:10,200 --> 00:15:11,900 just trying to not give up this deal. 339 00:15:12,000 --> 00:15:15,200 They're trying to salvage it in any way possible because of how 340 00:15:15,200 --> 00:15:18,600 one-sided the deal was with Nicola, Nicola gave up a bunch 341 00:15:18,600 --> 00:15:20,700 of different things. GM practically gave up. 342 00:15:20,700 --> 00:15:21,900 Nothing. All that. 343 00:15:21,900 --> 00:15:24,700 GM gave up was a little bit of their reputation. 344 00:15:24,800 --> 00:15:26,400 They just went into business with Nicolas. 345 00:15:26,400 --> 00:15:28,900 So that's what GM gave up financially. 346 00:15:28,900 --> 00:15:30,400 They have everything. The game from it. 347 00:15:30,400 --> 00:15:34,200 So I think that firing Trevor Milton, which is what happened. 348 00:15:34,200 --> 00:15:37,300 He was fired from this company. I think the reason that GM and 349 00:15:37,300 --> 00:15:40,700 Nicola did that was to try to salvage this deal. 350 00:15:40,900 --> 00:15:42,300 They still want to make this deal work. 351 00:15:42,300 --> 00:15:44,100 They still want to make it so they can go into business 352 00:15:44,100 --> 00:15:47,400 together and maybe getting rid of Trevor Milton will solve some 353 00:15:47,400 --> 00:15:51,100 of their problems, maybe some of the criticisms of Nicola and all 354 00:15:51,100 --> 00:15:54,100 the deceptive past. It will all follow Trevor Milton 355 00:15:54,100 --> 00:15:56,300 to his Ranch. I doubt that's what's going to 356 00:15:56,300 --> 00:15:57,900 happen. But I think that's what they're 357 00:15:57,900 --> 00:16:01,000 trying to accomplish here now. I think I will mention as a word 358 00:16:01,000 --> 00:16:02,900 of caution. I know, there's a lot of people 359 00:16:02,900 --> 00:16:05,200 that are short this stock, and there's some people that might 360 00:16:05,200 --> 00:16:07,900 be saying, well, what Trevor Milton gun, I might jump into 361 00:16:07,900 --> 00:16:10,300 the stock now, because maybe it has a better future. 362 00:16:10,400 --> 00:16:13,100 Maybe they'll just receive like a fine or something. 363 00:16:13,100 --> 00:16:15,500 From the SEC. They can pay the fine and then 364 00:16:15,500 --> 00:16:18,600 they'll move on with this partnership with GM that could 365 00:16:18,600 --> 00:16:20,400 happen. Maybe that can happen. 366 00:16:20,400 --> 00:16:23,600 And the stock price will Trend back upwards, but a word of 367 00:16:23,600 --> 00:16:26,600 caution. I think that, if GM does end up 368 00:16:26,600 --> 00:16:30,400 dumping Nicola, I think this stock plummets, It's like you 369 00:16:30,400 --> 00:16:33,700 have not seen before. I think the last thread holding 370 00:16:33,700 --> 00:16:38,000 Nicola together is GM. If they lose GM, it's game over 371 00:16:38,000 --> 00:16:40,300 for Nicola. So, that's my word of caution. 372 00:16:40,500 --> 00:16:43,700 If you're investing in the stock, be careful, if they bail 373 00:16:43,700 --> 00:16:46,400 on this deal with GM, because if that happens, I think it will be 374 00:16:46,400 --> 00:16:47,900 complete. Destruction for Nicola. 375 00:16:48,300 --> 00:16:50,200 Now one last thing. I'll mention I did a poll on my 376 00:16:50,200 --> 00:16:52,100 YouTube page. You'll see these in the home 377 00:16:52,100 --> 00:16:54,000 screen of your YouTube. If you're subscribed to the 378 00:16:54,000 --> 00:16:57,400 channel That red button underneath this video, but the 379 00:16:57,400 --> 00:16:59,500 question was, Will Trevor Milton face. 380 00:16:59,700 --> 00:17:03,900 Mental charges and I had over 5,000 votes, 68 percent of them 381 00:17:03,900 --> 00:17:08,200 said, yes, 32% set know. So this is a lot of people that 382 00:17:08,200 --> 00:17:10,000 believe that he's going to face criminal charges. 383 00:17:10,000 --> 00:17:12,900 Now, if I had to put myself in one of these buckets, after 384 00:17:12,900 --> 00:17:17,300 looking at the evidence of how misleading I believe Nicola was 385 00:17:17,300 --> 00:17:20,099 in so many different instances. I think there's a very good 386 00:17:20,099 --> 00:17:23,500 chance that either the doj or the SEC will bring charges 387 00:17:23,500 --> 00:17:25,400 against him. They did the same things with 388 00:17:25,400 --> 00:17:27,599 Elizabeth Holmes. They charged her, and I don't 389 00:17:27,599 --> 00:17:29,300 see too much of a difference here. 390 00:17:29,400 --> 00:17:33,300 I Think that a lot of investors were misled by false statements 391 00:17:33,300 --> 00:17:36,200 about their technology so I could see them. 392 00:17:36,200 --> 00:17:38,100 Absolutely. Bringing criminal charges to 393 00:17:38,100 --> 00:17:41,100 Trevor Milton or Nicola. Is it a guarantee? 394 00:17:41,400 --> 00:17:43,700 No, it's no guarantee that they will, but I think there's 395 00:17:43,700 --> 00:17:46,400 definitely a case for it. Okay, the last bit of news, I 396 00:17:46,408 --> 00:17:49,600 wanted to go over, was some breaking news that Fortnight 397 00:17:49,600 --> 00:17:52,400 maker epic games as well as Spotify. 398 00:17:52,400 --> 00:17:55,300 And then the owner of Kinder which is match group. 399 00:17:55,500 --> 00:17:57,900 These companies have got together and they formed a 400 00:17:57,908 --> 00:18:02,200 coalition called the Shin for app fairness, the Coalition for 401 00:18:02,200 --> 00:18:05,500 app fairness a non-profit registered in Washington made. 402 00:18:05,500 --> 00:18:08,500 Its public debut. Thursday, saying most app stores 403 00:18:08,500 --> 00:18:11,600 collect excessive commissions from software developers on 404 00:18:11,600 --> 00:18:15,200 users, digital purchases and stifle competition by giving 405 00:18:15,200 --> 00:18:18,200 unfair advantages to their own products and services. 406 00:18:18,600 --> 00:18:22,300 Obviously, the big company, they're targeting care is Apple. 407 00:18:22,500 --> 00:18:26,100 Now, this coalition to me takes a much more serious tone than 408 00:18:26,100 --> 00:18:28,800 what epic games is done. Epic games has done a lot of 409 00:18:28,900 --> 00:18:29,800 shenanigans. Ends. 410 00:18:29,800 --> 00:18:31,200 This is the way that you described it. 411 00:18:31,300 --> 00:18:34,700 They have done backdoor access to their own payment system in 412 00:18:34,700 --> 00:18:36,200 the App Store. They've launched. 413 00:18:36,200 --> 00:18:38,000 Social media campaigns that are silly. 414 00:18:38,000 --> 00:18:40,700 They've done what Apple describes is belligerent 415 00:18:40,700 --> 00:18:44,500 tweeting. So, this type of antics the epic 416 00:18:44,500 --> 00:18:47,100 games is done, I think, is kind of painted the whole movement 417 00:18:47,100 --> 00:18:50,200 and a bad light, but coming out with this Coalition, I think, 418 00:18:50,200 --> 00:18:52,800 does it in a more serious tone? The Coalition released a 419 00:18:52,808 --> 00:18:55,800 statement that says, quote, the gatekeeper platforms that 420 00:18:55,800 --> 00:18:58,600 operate these app stores must not abuse, the control they 421 00:18:58,600 --> 00:19:01,600 enjoy and Must adhere to oversight to ensure their 422 00:19:01,600 --> 00:19:05,200 behavior promotes a competitive market and provides consumers 423 00:19:05,200 --> 00:19:07,700 with Equitable choice. So a statements like that. 424 00:19:07,700 --> 00:19:10,200 You can see they're obviously trying to take a more 425 00:19:10,200 --> 00:19:12,400 professional tone. This isn't the same type of 426 00:19:12,400 --> 00:19:14,900 statement that you've seen epic games and Spotify do 427 00:19:14,900 --> 00:19:17,300 independently. Now, apple is a specifically 428 00:19:17,300 --> 00:19:19,100 about this. They said that they declined to 429 00:19:19,100 --> 00:19:22,100 comment on the coalition's creation and separately. 430 00:19:22,100 --> 00:19:25,300 The company on Thursday said it would be updating its web pages 431 00:19:25,400 --> 00:19:28,400 to better illustrate the benefits of the App Store. 432 00:19:28,700 --> 00:19:32,500 So this is Apple's defense. They're basically saying we're 433 00:19:32,500 --> 00:19:34,700 going to just come out with a bunch of research, showing how 434 00:19:34,700 --> 00:19:37,200 beneficial our app store is. And that's the way that we're 435 00:19:37,200 --> 00:19:40,800 going to kind of address these claims because the Coalition and 436 00:19:40,800 --> 00:19:43,100 all these people are trying to paint one side of it and we're 437 00:19:43,100 --> 00:19:44,800 going to try to illustrate our side of it. 438 00:19:44,800 --> 00:19:46,600 Now. I've had some time over the past 439 00:19:46,700 --> 00:19:49,400 month or so just to kind of look at this issue. 440 00:19:49,400 --> 00:19:52,500 The whole Apple competing with all these different categories 441 00:19:52,800 --> 00:19:55,800 Apple coming out with their apple one bundle that basically 442 00:19:55,800 --> 00:19:58,400 disadvantages all these different companies because of 443 00:19:58,400 --> 00:20:01,800 their pricing power with it. It does make me question, how 444 00:20:01,800 --> 00:20:04,400 much of an advantage? These companies have over other 445 00:20:04,400 --> 00:20:06,300 companies. It's pretty incredible. 446 00:20:06,500 --> 00:20:09,800 They can come and compete and basically, every category you 447 00:20:09,800 --> 00:20:13,400 can dream of they compete in content and digital news, they 448 00:20:13,400 --> 00:20:16,900 compete in movie and TV shows, so they're in movie productions. 449 00:20:17,100 --> 00:20:18,600 Like, I've mentioned there a health company. 450 00:20:18,600 --> 00:20:21,800 Now, Apple has the Apple watch, which is the most widely 451 00:20:21,800 --> 00:20:24,500 distributed Healthcare device, and then they're coming out with 452 00:20:24,500 --> 00:20:27,000 apple Fitness Plus. So now they're in Fitness and 453 00:20:27,000 --> 00:20:29,400 then they have apple music. So they're in the music's. 454 00:20:29,600 --> 00:20:30,900 Fear as well. And then they have apple 455 00:20:30,900 --> 00:20:32,500 podcast. So they're doing that as well. 456 00:20:32,800 --> 00:20:35,600 They can basically compete in everything and apples, not alone 457 00:20:35,600 --> 00:20:37,700 in this. This is all the big thing stocks 458 00:20:38,000 --> 00:20:42,100 Amazon announced recently in the past week that they're coming 459 00:20:42,100 --> 00:20:44,900 out with the echelon Prime bike for five hundred dollars. 460 00:20:45,200 --> 00:20:48,500 It's a Peloton knock off now, just the announcement of this, 461 00:20:48,700 --> 00:20:51,600 the Amazon was entering into what Peloton was doing. 462 00:20:51,900 --> 00:20:54,900 Dropped Peloton stock 5% that day. 463 00:20:55,200 --> 00:20:57,900 Just with Amazon saying we're coming out with a knock off of 464 00:20:57,900 --> 00:20:59,400 your bike. That's the power. 465 00:20:59,600 --> 00:21:03,000 Amazon has. Now this specific example turned 466 00:21:03,000 --> 00:21:06,000 out to be completely false Echelon basically said that they 467 00:21:06,000 --> 00:21:08,300 had a deal with Amazon that didn't exist. 468 00:21:08,400 --> 00:21:11,800 Amazon said it didn't build the prime bike and it tells Echelon 469 00:21:11,800 --> 00:21:14,100 to stop selling it. So it's kind of a funny 470 00:21:14,100 --> 00:21:18,300 situation but it shows the power of this, the stock went down 5% 471 00:21:18,300 --> 00:21:21,000 when Amazon announced that it was coming out with a bike and 472 00:21:21,000 --> 00:21:24,000 then it jumped back up like nine percent the next day after it 473 00:21:24,000 --> 00:21:26,800 was revealed that Echelon really had no agreement with Amazon, 474 00:21:26,900 --> 00:21:29,300 but the examples clear this shows what these companies can 475 00:21:29,300 --> 00:21:31,500 do. Do they can basically compete in 476 00:21:31,500 --> 00:21:34,700 any category they want and any other company that's trying to 477 00:21:34,700 --> 00:21:37,300 make progress. They look at them as basically 478 00:21:37,300 --> 00:21:39,400 beta testers. Like, does this type of thing 479 00:21:39,400 --> 00:21:41,400 work out? If it does, we're either going 480 00:21:41,400 --> 00:21:44,100 to buy it or we're going to build out the same thing and use 481 00:21:44,100 --> 00:21:47,500 our massive resources, and our ecosystem to gain a massive 482 00:21:47,500 --> 00:21:49,400 advantage. In 2019. 483 00:21:49,400 --> 00:21:51,500 Steve Wozniak, who was one of the original? 484 00:21:51,500 --> 00:21:54,300 Founders of Apple was asked specifically about this issue, 485 00:21:54,300 --> 00:21:58,100 about big companies, like apple and Amazon and Facebook being 486 00:21:58,100 --> 00:21:59,400 able to use their already enormous. 487 00:21:59,500 --> 00:22:01,700 Advantage to move into other categories. 488 00:22:01,700 --> 00:22:05,800 So easily a company that has a strong presence in one market, 489 00:22:05,800 --> 00:22:09,300 using that presence to grow. Another Market is sort of 490 00:22:09,300 --> 00:22:10,800 unfair. The example that I used to use 491 00:22:10,808 --> 00:22:14,800 long ago was well, if you owned, if you owned all the gas 492 00:22:14,800 --> 00:22:18,100 stations and then you said we're converting the nozzles of all of 493 00:22:18,100 --> 00:22:20,200 our guests stations and they will only work with a new car 494 00:22:20,200 --> 00:22:23,700 that we're coming out with that. Would just be unfair. 495 00:22:23,700 --> 00:22:26,500 That would be, you know, using using your power in one market 496 00:22:26,500 --> 00:22:29,900 to subsume another and we see this all over the The place. 497 00:22:29,900 --> 00:22:33,100 I mean just apps that are come standard with products like 498 00:22:33,100 --> 00:22:35,700 phones, you know, do that to an extent. 499 00:22:35,700 --> 00:22:38,900 So I think that's a fair example, if somebody owned all 500 00:22:38,900 --> 00:22:42,700 the gas stations and then they created a proprietary unique 501 00:22:42,700 --> 00:22:44,400 nozzle. The only worked with a car that 502 00:22:44,400 --> 00:22:47,000 they're also releasing. That would be pretty unfair. 503 00:22:47,100 --> 00:22:50,000 I think Regulators would go after that very quickly, but you 504 00:22:50,008 --> 00:22:53,700 have apple coming out with apple music that uniquely works with 505 00:22:53,700 --> 00:22:56,300 apple Fitness Plus. So those are kind of coupled 506 00:22:56,300 --> 00:22:59,400 together and then they bundle all their services together. 507 00:22:59,600 --> 00:23:01,600 They make them so that they're more heavily integrated with 508 00:23:01,600 --> 00:23:04,500 their products and other third-party software and it's 509 00:23:04,500 --> 00:23:07,100 very difficult for other companies to compete with. 510 00:23:07,200 --> 00:23:10,000 It's also a more nuanced and complicated to the point where 511 00:23:10,000 --> 00:23:13,300 Congress has a difficult time, even understanding what's going 512 00:23:13,300 --> 00:23:15,600 on and how many advantages that Apple has. 513 00:23:15,800 --> 00:23:18,500 So at this point, it's too early to tell if Apple's going to 514 00:23:18,500 --> 00:23:22,700 receive any type of government intervention or regulation, but 515 00:23:22,700 --> 00:23:25,600 I think they eventually will, I think apples so big and so 516 00:23:25,600 --> 00:23:28,800 powerful that the government's going to be forced to step in at 517 00:23:28,800 --> 00:23:30,700 some point. Another, it's only a matter of 518 00:23:30,700 --> 00:23:32,400 time. But even so that doesn't concern 519 00:23:32,400 --> 00:23:34,100 me. I think Apple will find ways to 520 00:23:34,100 --> 00:23:36,800 make a lot of money. Even if the government does come 521 00:23:36,800 --> 00:23:38,300 in and do some type of Regulation. 522 00:23:38,700 --> 00:23:41,600 The stock has been trading down. It's about 18 percent down from 523 00:23:41,600 --> 00:23:44,000 its high. I bought Apple at an average 524 00:23:44,000 --> 00:23:46,800 price of $90 per share. So that's my average price on 525 00:23:46,800 --> 00:23:49,600 it. I'm still up like 21 percent at 526 00:23:49,600 --> 00:23:51,600 one point. I was up 48 percent. 527 00:23:51,600 --> 00:23:55,200 So that was when it hit the high right now, I'm up 21%. 528 00:23:55,500 --> 00:23:58,100 I still am very bullish on this stock, long term. 529 00:23:58,200 --> 00:24:01,000 I think to Apples going to do really Good long term if there 530 00:24:01,000 --> 00:24:03,500 is any government intervention, will see how that affects this 531 00:24:03,500 --> 00:24:05,600 talk. But right now apple is holding 532 00:24:05,600 --> 00:24:08,200 their ground, okay? Time for a portfolio update 533 00:24:08,200 --> 00:24:10,900 before I jump into questions. This is my passive income 534 00:24:10,900 --> 00:24:13,100 portfolio. It's on a brokerage called M1 535 00:24:13,100 --> 00:24:16,700 finance that you can sign up for this link in the description. 536 00:24:16,900 --> 00:24:20,100 There's also a link to be able to view all my Holdings and the 537 00:24:20,100 --> 00:24:21,600 current allocation of the portfolio. 538 00:24:21,600 --> 00:24:23,500 So I have that updated. There's a link in the 539 00:24:23,500 --> 00:24:24,900 description if you want to look at that. 540 00:24:25,300 --> 00:24:29,200 I want to go over the last week or so because my gains have gone 541 00:24:29,200 --> 00:24:30,800 down. Quite a bit as I'm sure most 542 00:24:30,800 --> 00:24:33,500 people have as the market has gone down a lot. 543 00:24:33,500 --> 00:24:36,000 September has not been a good month for the market. 544 00:24:36,000 --> 00:24:38,900 Now, at one point. We were about 16 thousand 545 00:24:38,900 --> 00:24:40,400 dollars in the green. Right now. 546 00:24:40,400 --> 00:24:42,600 We're just hovering around eight thousand dollars in the green, 547 00:24:42,900 --> 00:24:46,900 which means over the past week. It's dropped four thousand three 548 00:24:46,900 --> 00:24:49,700 hundred dollars and then over the past month. 549 00:24:49,900 --> 00:24:54,300 It's dropped $6800. So a lot of losses over the past 550 00:24:54,300 --> 00:24:57,000 month. I want to just explain real 551 00:24:57,000 --> 00:24:59,300 briefly, why I'm not concerned about this at all. 552 00:24:59,500 --> 00:25:03,100 Okay, so I have no stress about this, knowing xiety. 553 00:25:03,300 --> 00:25:05,900 It doesn't concern me. The market could continue to go 554 00:25:05,900 --> 00:25:08,400 down and down and down and it wouldn't be something I'm 555 00:25:08,400 --> 00:25:10,400 concerned about. And there's a couple reasons, 556 00:25:10,400 --> 00:25:13,200 why, the first reason of why I'm not concerned at all. 557 00:25:13,300 --> 00:25:16,000 When we have Market sell-offs is because I have a savings. 558 00:25:16,300 --> 00:25:19,400 That is the most basic reason why I have a savings if the 559 00:25:19,400 --> 00:25:22,000 market sells off. So what it doesn't change my 560 00:25:22,000 --> 00:25:24,000 life at all? Just means I have to wait it out 561 00:25:24,000 --> 00:25:27,000 a little bit longer. So if the portfolio enters into 562 00:25:27,000 --> 00:25:29,900 the red or if some of these companies sell off, it doesn't 563 00:25:29,900 --> 00:25:32,800 really matter. I have a savings if I lose my 564 00:25:32,800 --> 00:25:34,400 job or something like that happens. 565 00:25:34,800 --> 00:25:36,900 It doesn't really matter because I have a savings. 566 00:25:36,900 --> 00:25:40,000 So, the first thing I recommend if you're having stress 567 00:25:40,000 --> 00:25:42,900 investing, if you're stressing out about losing money in the 568 00:25:42,900 --> 00:25:46,000 market, build up a savings, you should be building up your 569 00:25:46,000 --> 00:25:49,400 Investments and your savings. There's people like Dave Ramsey 570 00:25:49,400 --> 00:25:52,300 that recommend like three months of savings and I think that's a 571 00:25:52,300 --> 00:25:54,500 pretty good recommendation. So that's the thing. 572 00:25:54,500 --> 00:25:57,700 Number one, build up a savings. The second reason why I can 573 00:25:57,700 --> 00:26:00,900 invest stress-free. Of what the market is doing is 574 00:26:00,900 --> 00:26:04,700 because I'm not using leverage. Leverage is when you use margin 575 00:26:04,700 --> 00:26:06,600 to invest in. So when you're you're taking a 576 00:26:06,600 --> 00:26:09,600 loan, you're basically taking someone else's money and you're 577 00:26:09,600 --> 00:26:12,100 throwing that into the stock market trying to make money with 578 00:26:12,100 --> 00:26:14,100 their money. That's one form of Leverage. 579 00:26:14,200 --> 00:26:17,400 Another is using call options and puts different tools like 580 00:26:17,400 --> 00:26:19,300 that. The introduce a lot more risk 581 00:26:19,300 --> 00:26:22,000 and they introduced a lot bigger potential to lose money. 582 00:26:22,000 --> 00:26:26,200 There's a recent survey that 43 percent of retail investors are 583 00:26:26,200 --> 00:26:30,600 trading with leverage 43%. I think this is a mistake for 584 00:26:30,600 --> 00:26:32,800 almost everybody that's using leverage. 585 00:26:32,800 --> 00:26:35,700 There's some different examples of people that might have 586 00:26:35,900 --> 00:26:39,400 specific strategies that are okay, for the huge majority. 587 00:26:39,400 --> 00:26:42,500 I think it's a mistake. The bullishness has pushed some 588 00:26:42,500 --> 00:26:45,700 retail investors into the world of Leverage forty-three percent 589 00:26:45,700 --> 00:26:47,100 of retail. Investors said that they are 590 00:26:47,100 --> 00:26:51,500 using options margin or both these strategies amplify gains, 591 00:26:51,700 --> 00:26:55,100 but they also magnify losses, which expose an investor to 592 00:26:55,100 --> 00:26:59,300 significant downside risk. Significant downside risk here. 593 00:26:59,500 --> 00:27:01,400 Investors that have been using leverage. 594 00:27:01,700 --> 00:27:05,600 This one lost. 96 percent of his account which was six thousand 595 00:27:05,600 --> 00:27:07,800 five hundred dollars. He said that he was doing really 596 00:27:07,800 --> 00:27:10,500 good until September started because the market started to 597 00:27:10,508 --> 00:27:12,600 Trend downwards. He was using leverage. 598 00:27:12,700 --> 00:27:14,500 So he lost basically his entire account. 599 00:27:14,600 --> 00:27:17,500 Here's an account of someone that did call options on Tesla's 600 00:27:17,500 --> 00:27:19,400 battery day. He lost ninety seven thousand 601 00:27:19,400 --> 00:27:22,000 dollars in one day because of that trade, here's another user 602 00:27:22,000 --> 00:27:24,900 that bet again, call options on Tesla's battery day. 603 00:27:25,100 --> 00:27:26,800 He lost. What is it? 604 00:27:26,800 --> 00:27:31,200 Five six thousand dollars? Yeah, 6,000. 88% of his account 605 00:27:31,200 --> 00:27:33,600 in one day and of course, there's virtually endless 606 00:27:33,600 --> 00:27:35,700 examples of this. Here's another user that lost 607 00:27:35,700 --> 00:27:39,100 forty thousand dollars in one day 71% of his account. 608 00:27:39,200 --> 00:27:41,500 Again using leverage, the biggest thing that you have on 609 00:27:41,500 --> 00:27:43,500 your side when you're investing is time. 610 00:27:43,800 --> 00:27:46,400 If companies go down in price like we're seeing over the past 611 00:27:46,400 --> 00:27:48,500 two weeks. If you're just invested with 612 00:27:48,500 --> 00:27:50,600 your own money, you can wait it out. 613 00:27:50,700 --> 00:27:54,100 You have time on your side. That's a huge benefit when you 614 00:27:54,100 --> 00:27:58,600 use leverage and you use call options and puts that enters a 615 00:27:58,600 --> 00:28:01,300 time constraint. That's a whole new level of risk 616 00:28:01,300 --> 00:28:03,100 that you're entering involuntarily. 617 00:28:03,100 --> 00:28:06,000 So I don't want that type of risk, in my portfolio. 618 00:28:06,100 --> 00:28:07,400 I don't want that type of stress. 619 00:28:07,700 --> 00:28:10,200 So, I just avoid it altogether. The last piece of advice, of 620 00:28:10,200 --> 00:28:12,500 course, is to know what you own the Peter Lynch advice. 621 00:28:12,800 --> 00:28:14,900 If you buy a bunch of random companies that you really have 622 00:28:14,900 --> 00:28:17,300 no clue of what they're doing. It's going to be harder for you, 623 00:28:17,300 --> 00:28:19,000 to hang on to them during a downturn. 624 00:28:19,300 --> 00:28:22,200 If you've done a lot of research and you're very familiar and 625 00:28:22,200 --> 00:28:25,000 comfortable with the companies that you own, it'll be far 626 00:28:25,000 --> 00:28:26,900 easier to hang on to him during a downturn. 627 00:28:26,900 --> 00:28:29,200 So I look at the companies I have and I know them pretty 628 00:28:29,200 --> 00:28:30,200 well. Well, I've done a lot of 629 00:28:30,200 --> 00:28:33,500 research on on all of them, especially my top Holdings. 630 00:28:33,500 --> 00:28:36,400 So I have no problems holding these companies into a downturn. 631 00:28:36,400 --> 00:28:39,900 So these three things, combined it basically protects me from 632 00:28:39,900 --> 00:28:42,600 having any amount of stress investing, if the market 633 00:28:42,600 --> 00:28:44,700 continues to Trend down, that's okay. 634 00:28:44,700 --> 00:28:47,000 I'll hold onto the companies. I know I'm really well. 635 00:28:47,100 --> 00:28:49,600 I'm not using leverage. I have no time constraints. 636 00:28:49,800 --> 00:28:51,700 I can wait this out for a very long time. 637 00:28:51,700 --> 00:28:53,700 So, in the meantime, I'm going to continue to buy companies. 638 00:28:53,700 --> 00:28:56,400 I think are good deal. Okay, let's get to some emails 639 00:28:56,400 --> 00:28:58,400 to email. Address is Joseph at Joseph 640 00:28:58,400 --> 00:29:02,500 Carlson show.com That's a Joseph at Joseph Carlson show.com., You 641 00:29:02,500 --> 00:29:05,700 can email me any question or anything on your mind and I'll 642 00:29:05,700 --> 00:29:08,500 put it on the episode. This one is from Joe. 643 00:29:08,500 --> 00:29:11,000 He says, Joseph you love your Disney and especially their 644 00:29:11,000 --> 00:29:14,200 streaming service growth. I have Disney Plus for free for 645 00:29:14,200 --> 00:29:16,800 one year. Thanks to my, Verizon Unlimited 646 00:29:16,800 --> 00:29:19,600 Plan perks. With this expiring late fall. 647 00:29:19,600 --> 00:29:22,600 I'll be canceling. Disney plus, is this a concern 648 00:29:22,600 --> 00:29:24,700 for Disney? How many subscribers will this 649 00:29:24,700 --> 00:29:25,900 affect? Okay, Joe. 650 00:29:25,900 --> 00:29:28,400 I don't think that this is something to be very concerned 651 00:29:28,400 --> 00:29:30,700 about. If you look at every single 652 00:29:30,700 --> 00:29:34,000 successful streaming service, whether it's Netflix Disney Plus 653 00:29:34,200 --> 00:29:36,600 or even Apple TV, plus all of them. 654 00:29:36,700 --> 00:29:39,700 They give away their streaming service for free or at very 655 00:29:39,700 --> 00:29:42,800 subsidized cost to get new customers introduced to it. 656 00:29:43,100 --> 00:29:45,900 It's hard to get customer engagement into your platform. 657 00:29:46,100 --> 00:29:47,800 So a lot of people give trial periods. 658 00:29:48,000 --> 00:29:51,400 Apple TV plus is doing that. If you buy an Apple device, 659 00:29:51,600 --> 00:29:54,200 they're giving you a year. Free of Apple TV plus. 660 00:29:54,400 --> 00:29:58,200 Now, why would Apple do that to make it a habitual thing to make 661 00:29:58,200 --> 00:30:00,200 it part of your life, so, That year is up. 662 00:30:00,300 --> 00:30:03,400 You're already so used to getting the Apple TV + that you 663 00:30:03,400 --> 00:30:07,600 just continue to pay for it. So they all do this and it's one 664 00:30:07,600 --> 00:30:10,200 of the advantages of having such a scalable business. 665 00:30:10,500 --> 00:30:12,600 They can offer you Disney Plus for a year. 666 00:30:12,600 --> 00:30:14,700 And it really cost Disney nothing to do that. 667 00:30:14,900 --> 00:30:18,000 It really doesn't add much expense to them and there's a 668 00:30:18,008 --> 00:30:20,800 good chance that a big portion of the people they give it away 669 00:30:20,800 --> 00:30:24,200 to for free. A big portion will stay you say 670 00:30:24,200 --> 00:30:25,700 that you're not that might be true. 671 00:30:25,700 --> 00:30:28,400 You might cancel it. As soon as the trials up, there 672 00:30:28,400 --> 00:30:30,500 might be some time. And maybe Disney will come out 673 00:30:30,500 --> 00:30:33,600 with some series that appeal to you in between now and when your 674 00:30:33,600 --> 00:30:37,300 trials up, so that could happen. But even assuming that you do 675 00:30:37,300 --> 00:30:39,400 cancel and Disney plus trials up. 676 00:30:39,800 --> 00:30:42,200 There's going to be a huge portion of customers that don't, 677 00:30:42,600 --> 00:30:45,500 there's never one hundred percent of people that stay 678 00:30:45,500 --> 00:30:47,900 after trial. I would assume that Disney plus 679 00:30:47,900 --> 00:30:51,100 a similar, they're going to give away a year free to millions of 680 00:30:51,100 --> 00:30:54,700 people and they'll have like 60 to 70 percent of those people. 681 00:30:54,700 --> 00:30:58,200 Stay beyond the first year and they gained all those customers 682 00:30:58,500 --> 00:31:00,100 at essentially know. Cost to them. 683 00:31:00,100 --> 00:31:03,200 So I think it's a very effective strategy as long as the drop-off 684 00:31:03,200 --> 00:31:05,900 isn't too significant. I think that it will continually 685 00:31:05,900 --> 00:31:09,400 be a net gain for Disney. I think the long-term viability 686 00:31:09,400 --> 00:31:12,800 of Disney plus is going to be determined on how many good 687 00:31:12,800 --> 00:31:15,700 series they can come out with how many buzzworthy series. 688 00:31:15,900 --> 00:31:18,800 There's different TV series that they might be okay, but they 689 00:31:18,800 --> 00:31:21,200 don't have any Buzz. Nobody talks about them, and 690 00:31:21,200 --> 00:31:23,900 then their series that people talk a lot about Game of Thrones 691 00:31:23,900 --> 00:31:27,700 was a huge buzzworthy Series. So when you get those type of 692 00:31:27,700 --> 00:31:29,200 series, your service is going to do. 693 00:31:29,300 --> 00:31:32,300 Do really well as a result. The Mandalorian was a series 694 00:31:32,300 --> 00:31:34,700 that had a lot of Buzz. So the second season of that, I 695 00:31:34,700 --> 00:31:36,800 think will create more interest for Disney. 696 00:31:37,600 --> 00:31:40,100 They can't rely on their current Library. 697 00:31:40,400 --> 00:31:43,100 A lot of people are are finding out while I've watched most of 698 00:31:43,100 --> 00:31:45,700 the things that Disney has created already. 699 00:31:46,000 --> 00:31:49,300 So they need to come out with, with new series, new things like 700 00:31:49,300 --> 00:31:51,100 the Mandalorian. That create a lot of Buzz. 701 00:31:51,300 --> 00:31:53,500 They need to come out with Marvel and Avenger spinoff 702 00:31:53,500 --> 00:31:55,100 series, and different things like that. 703 00:31:55,100 --> 00:31:56,700 If they're able to continue to keep Buzz. 704 00:31:56,900 --> 00:31:59,800 I think the service will keep growing like crazy and As 12 705 00:31:59,800 --> 00:32:01,800 months ago. I decided that I needed to start 706 00:32:01,800 --> 00:32:05,200 managing my money in a smarter way and have it work better for 707 00:32:05,200 --> 00:32:06,500 me. Ever since. 708 00:32:06,500 --> 00:32:08,400 I've spent a lot of time, researching learning about the 709 00:32:08,408 --> 00:32:11,600 stock market and even how to Value individual companies. 710 00:32:11,600 --> 00:32:14,800 I feel like I'm just starting to build a decent portfolio with a 711 00:32:14,800 --> 00:32:17,800 mix of, both active and passive elements, and was feeling 712 00:32:17,800 --> 00:32:19,700 confident. I'm on the right path. 713 00:32:19,700 --> 00:32:21,800 I'm now interested in trading and plan on holding for the 714 00:32:21,800 --> 00:32:24,300 long-term. Now, my partner has said to me 715 00:32:24,500 --> 00:32:27,000 that the only way to build wealth is through owning 716 00:32:27,000 --> 00:32:29,200 property. I'm going to get nowhere. 717 00:32:29,300 --> 00:32:32,100 With the stock market, I'm completely wasting my time. 718 00:32:32,300 --> 00:32:35,100 This is totally taken the wind out of my sails and I feel like 719 00:32:35,100 --> 00:32:37,500 a failure. I know nothing about property 720 00:32:37,500 --> 00:32:40,000 how to manage it or where I would even buy. 721 00:32:40,300 --> 00:32:43,300 What are your thoughts on shares versus properties for Building 722 00:32:43,300 --> 00:32:45,000 Wealth. Am I wasting my time with 723 00:32:45,000 --> 00:32:46,700 shares? Well Andy, there's a couple 724 00:32:46,700 --> 00:32:49,700 problems with what your friend they're saying if he or she is 725 00:32:49,700 --> 00:32:53,400 saying that the only way to build wealth, let me get that. 726 00:32:53,400 --> 00:32:55,400 Straight. The only way to build a lot of 727 00:32:55,400 --> 00:32:57,400 wealth is through owning property. 728 00:32:58,000 --> 00:33:01,700 What do they think of? The fact that basically every 729 00:33:01,700 --> 00:33:05,500 super wealthy person in America, owns companies. 730 00:33:05,800 --> 00:33:09,200 They own stocks, simply put stocks are just a form of owning 731 00:33:09,200 --> 00:33:11,400 companies. You have people like Jeff Bezos. 732 00:33:11,400 --> 00:33:15,200 That owns a lot of Amazon stock. You have Mark Zuckerberg that 733 00:33:15,200 --> 00:33:18,000 owns a lot of Facebook, you know, people that own a lot of 734 00:33:18,000 --> 00:33:20,200 Apple people that own. A lot of Microsoft. 735 00:33:20,400 --> 00:33:22,000 These are the wealthy people in America. 736 00:33:22,300 --> 00:33:25,500 We have Elon Musk that just became wealthy by guess what? 737 00:33:25,500 --> 00:33:29,200 Owning a lot of Tesla stock. That's basically the list. 738 00:33:29,400 --> 00:33:31,500 Of all the richest people in the world. 739 00:33:31,500 --> 00:33:35,200 They own a lot of companies land does generate wealth over time. 740 00:33:35,200 --> 00:33:37,800 So I don't think that buying a lot of land and building a 741 00:33:37,800 --> 00:33:41,500 property on it or just buying a rental, is a bad idea. 742 00:33:41,500 --> 00:33:43,000 I think that's a pretty good investment. 743 00:33:43,000 --> 00:33:45,700 So I'm not saying that real estate is a bad investment. 744 00:33:45,900 --> 00:33:48,600 I think it's a pretty phenomenal investment for Building Wealth, 745 00:33:48,900 --> 00:33:52,000 but saying that the only way to build wealth is through owning 746 00:33:52,000 --> 00:33:54,200 property is completely ridiculous. 747 00:33:54,400 --> 00:33:57,700 They just need to look at any of the richest people in the world. 748 00:33:57,900 --> 00:34:01,400 The top 100. Or the top 500 and every single 749 00:34:01,400 --> 00:34:03,000 one of them will have something in common. 750 00:34:03,300 --> 00:34:06,100 They own a lot of stocks. They run companies, they own 751 00:34:06,100 --> 00:34:09,699 shares in companies. So I would not listen to your 752 00:34:09,699 --> 00:34:12,000 friend there on this piece of advice. 753 00:34:12,300 --> 00:34:15,000 I do think that owning real estate is a good thing to do. 754 00:34:15,100 --> 00:34:18,000 Maybe you can add that into your portfolio down the road, but 755 00:34:18,000 --> 00:34:20,500 don't get discouraged about buying productive companies. 756 00:34:20,500 --> 00:34:22,900 Historically speaking. There's never been a better 757 00:34:22,900 --> 00:34:24,500 investment. Okay? 758 00:34:24,500 --> 00:34:26,300 Well, on that note, I'm going to end this episode there. 759 00:34:26,300 --> 00:34:27,900 I appreciate all of you for tuning in. 760 00:34:27,900 --> 00:34:29,199 I'll try to have another episode. 761 00:34:29,300 --> 00:34:31,900 Out this weekend, and I will talk to you guys soon.