1 00:00:00,300 --> 00:00:02,400 Welcome back, everybody. Thanks for joining and this 2 00:00:02,400 --> 00:00:04,400 episode. I want to talk a little bit less 3 00:00:04,400 --> 00:00:05,900 about news. We're going to put news to the 4 00:00:05,900 --> 00:00:09,100 side for a little bit and I want to talk about my portfolio and 5 00:00:09,100 --> 00:00:13,000 specifically the opportunities that I see that lie ahead with 6 00:00:13,000 --> 00:00:14,900 different Industries and different sectors. 7 00:00:15,300 --> 00:00:17,200 I've been making changes to my portfolio. 8 00:00:17,300 --> 00:00:19,200 I've been selling completely out of some Industries. 9 00:00:19,200 --> 00:00:21,600 I no longer have any oil companies. 10 00:00:21,900 --> 00:00:24,000 This is something that I mentioned a couple weeks back 11 00:00:24,200 --> 00:00:27,800 and I've decided to sell out of it and on the other side. 12 00:00:27,800 --> 00:00:30,000 I've been putting a lot of money into other Industries. 13 00:00:30,100 --> 00:00:33,700 In other sectors, and I want to go over that specifically. 14 00:00:33,700 --> 00:00:37,200 I want to discuss the stock picking checklist. 15 00:00:37,200 --> 00:00:40,000 This is something that I just put together and it's an outline 16 00:00:40,000 --> 00:00:42,800 of my decisions when I'm making these changes, when I'm 17 00:00:42,800 --> 00:00:44,800 deciding, which companies to invest in. 18 00:00:44,800 --> 00:00:46,900 So we're going to be going through the stock picking 19 00:00:46,900 --> 00:00:49,700 checklist specifically, we're going to give the example of 20 00:00:49,700 --> 00:00:52,400 streaming. I think that video streaming is 21 00:00:52,400 --> 00:00:55,700 a misunderstood sector. I don't think that investors 22 00:00:55,700 --> 00:00:58,700 really appreciate the potential growth and the companies that 23 00:00:58,700 --> 00:01:00,500 are aligned to take advantage of That growth. 24 00:01:00,500 --> 00:01:03,500 So we're going to be talking about this in my Holdings. 25 00:01:03,700 --> 00:01:05,800 I have a couple of the top Holdings being streaming. 26 00:01:05,800 --> 00:01:09,300 Companies apple has a streaming service, but they're very small 27 00:01:09,300 --> 00:01:12,800 player in this industry. We have Disney that I think is a 28 00:01:12,808 --> 00:01:15,300 massive player in the streaming industry. 29 00:01:15,600 --> 00:01:18,100 I think they're the second-best aside from Netflix. 30 00:01:18,500 --> 00:01:21,500 And then AT&T I would say is in third place. 31 00:01:21,700 --> 00:01:24,000 So we're going to be going over streaming and talking about 32 00:01:24,000 --> 00:01:26,700 Disney and AT&T. We also have an interview with 33 00:01:26,700 --> 00:01:29,200 the CEO of Warner media that I want to go through. 34 00:01:29,400 --> 00:01:32,400 He talks about Out what he thinks the direction is of HBO 35 00:01:32,400 --> 00:01:35,200 Max what they're trying to accomplish with it, and their 36 00:01:35,200 --> 00:01:37,100 performance compared to Disney plus. 37 00:01:37,100 --> 00:01:39,300 So I think it's a pretty enlightening interview. 38 00:01:39,300 --> 00:01:41,700 We're going to look at this and talk about this industry 39 00:01:41,700 --> 00:01:43,400 overall. And then, of course, I will be 40 00:01:43,400 --> 00:01:45,700 responding to some of your comments and emails at the end 41 00:01:45,700 --> 00:01:47,900 of the episode. So we'll get to that as well. 42 00:01:48,000 --> 00:01:49,300 Okay. Now, first of all, let's jump 43 00:01:49,300 --> 00:01:52,000 into the portfolio. This is my primary account. 44 00:01:52,200 --> 00:01:54,200 It is my passive income portfolio. 45 00:01:54,600 --> 00:01:58,100 And the goal of this is always been to show you investing and 46 00:01:58,100 --> 00:02:00,200 what it really is. And what I mean by that is As I 47 00:02:00,200 --> 00:02:02,700 show you every single week week by week. 48 00:02:02,700 --> 00:02:04,200 What happens with this portfolio? 49 00:02:04,200 --> 00:02:05,400 I don't know. What's going to happen. 50 00:02:05,500 --> 00:02:07,700 Sometimes we lose money. Sometimes we gain money. 51 00:02:07,900 --> 00:02:11,200 I've had episodes where this very portfolio has been in the 52 00:02:11,200 --> 00:02:12,900 red by like ten thousand dollars. 53 00:02:13,200 --> 00:02:16,200 So it's been through good times. It's been through bad times 54 00:02:16,500 --> 00:02:18,700 during March. When we had the real effects of 55 00:02:18,700 --> 00:02:20,500 the coronavirus weigh in on investors. 56 00:02:20,600 --> 00:02:22,100 This was in the red by quite a bit. 57 00:02:22,500 --> 00:02:25,900 But over the past few months, we've made significant gains and 58 00:02:25,900 --> 00:02:29,200 we're back in the green now. In fact in the past 30 days were 59 00:02:29,200 --> 00:02:31,000 up seven. Eight hundred dollars. 60 00:02:31,000 --> 00:02:34,900 So it's been a pretty good month in the past. 90 days are up, 15 61 00:02:34,900 --> 00:02:38,100 thousand dollars. We regained a lot of the losses 62 00:02:38,300 --> 00:02:41,200 in the past 90 days. We went from the red back into 63 00:02:41,200 --> 00:02:43,200 the green. So that's how quickly things can 64 00:02:43,200 --> 00:02:45,800 change. Now, with this portfolio. 65 00:02:45,800 --> 00:02:47,900 I've been making significant changes to it. 66 00:02:48,100 --> 00:02:51,400 And I've been making some adjustments to the way that I 67 00:02:51,400 --> 00:02:53,200 view investing. And the way that I pick 68 00:02:53,200 --> 00:02:55,400 companies to invest in. I think that if you're unwilling 69 00:02:55,400 --> 00:02:58,200 to make any adjustments to the way that you view Investments, 70 00:02:58,500 --> 00:03:01,000 as you learn and experience new things, Things you're not going 71 00:03:01,000 --> 00:03:02,200 to have a good time. Investing. 72 00:03:02,400 --> 00:03:05,200 What I'm trying to do is use the things that I've learned over 73 00:03:05,200 --> 00:03:08,800 the past two years, to try to adjust my portfolio to be a much 74 00:03:08,800 --> 00:03:11,900 stronger portfolio for the future and I want to talk about 75 00:03:11,900 --> 00:03:14,500 that. I sold out of the energy sector. 76 00:03:14,600 --> 00:03:17,500 I have companies that produce energy their utility companies, 77 00:03:17,800 --> 00:03:20,100 but by the energy sector, I mean, I sold out of oil 78 00:03:20,100 --> 00:03:22,500 companies. I held two of them which were 79 00:03:22,500 --> 00:03:26,300 Chevron and ExxonMobil. And the reason that I sold these 80 00:03:26,300 --> 00:03:28,800 companies are part of what I'm going to go over in this 81 00:03:28,800 --> 00:03:31,500 episode. People do not think it was a 82 00:03:31,508 --> 00:03:33,400 good idea for me to sell these companies. 83 00:03:33,500 --> 00:03:36,200 In fact, I received emails where people explain that. 84 00:03:36,200 --> 00:03:39,300 I'm selling them at the wrong time, that they'll appreciate 85 00:03:39,300 --> 00:03:43,000 over the next couple years as the demand for oil goes back up. 86 00:03:43,000 --> 00:03:45,200 So let's go ahead and look at one of those emails as an 87 00:03:45,200 --> 00:03:46,900 example. This one's from Nicholas. 88 00:03:46,900 --> 00:03:50,200 He's from Quebec Canada. He says hi Joseph firstly thank 89 00:03:50,200 --> 00:03:52,200 you for your channel, which helps normal people understand 90 00:03:52,200 --> 00:03:56,700 investment World better and the last episode 107 you read a post 91 00:03:56,700 --> 00:03:59,100 that said oil companies are thing of the past that they will 92 00:03:59,100 --> 00:04:01,400 slowly fade away. Way, I think that in the long 93 00:04:01,400 --> 00:04:04,200 term, it is true. But in the medium term due to 94 00:04:04,200 --> 00:04:06,900 the cut investments in research of new oil fields. 95 00:04:07,200 --> 00:04:10,400 It is very likely that there is a strong Peak because of the 96 00:04:10,400 --> 00:04:12,500 demand that remains strong. And the supply that will have 97 00:04:12,500 --> 00:04:15,100 collapsed. Many companies in this sector 98 00:04:15,100 --> 00:04:18,500 among others in the USA are bankrupt or very close to it. 99 00:04:18,700 --> 00:04:20,800 It's almost certain that within two to three years. 100 00:04:20,800 --> 00:04:23,900 The shares of big oil companies will experience a dramatic rise, 101 00:04:24,200 --> 00:04:27,400 the two companies that you own will come back to the positive 102 00:04:27,500 --> 00:04:30,900 and even give you a good return. Then Might be a good time to 103 00:04:30,900 --> 00:04:34,000 think about selling them but not before taking advantage of their 104 00:04:34,000 --> 00:04:36,400 price recovery. I don't have a crystal ball, but 105 00:04:36,400 --> 00:04:39,600 it seems very premature to get rid of your companies and suffer 106 00:04:39,600 --> 00:04:41,500 a significant loss in the process. 107 00:04:41,800 --> 00:04:44,000 Have a nice day necklace. Okay. 108 00:04:44,000 --> 00:04:46,000 So this is an example of what I'm talking about. 109 00:04:46,200 --> 00:04:48,700 Nicholas here makes very good points. 110 00:04:48,700 --> 00:04:50,300 In fact, I agree with him on everything. 111 00:04:50,300 --> 00:04:53,300 He's saying he's basically saying that right now the price 112 00:04:53,300 --> 00:04:56,700 of oil is so low that it's bankrupting a lot of the smaller 113 00:04:56,700 --> 00:04:59,600 companies, so they're not going to be in business anymore. 114 00:04:59,900 --> 00:05:03,000 And when the price comes back up of oil, the companies will take 115 00:05:03,000 --> 00:05:05,800 the Lion's Share of the profit will be the very big companies, 116 00:05:05,900 --> 00:05:10,300 like Exxon Mobil and Chevron. That's a decent thought process. 117 00:05:10,400 --> 00:05:12,100 That's a decent investing philosophy. 118 00:05:12,200 --> 00:05:15,200 I actually agree with all of that, but I sold these companies 119 00:05:15,200 --> 00:05:19,300 anyways, because of one specific thing that I'm putting more 120 00:05:19,300 --> 00:05:21,500 focus on and that is part of the first line. 121 00:05:21,500 --> 00:05:23,800 He says, in this email. He says, you write a post that 122 00:05:23,800 --> 00:05:26,900 said, oil companies are a thing of the past that they will 123 00:05:26,900 --> 00:05:29,800 slowly fade away. And he says that, I think that 124 00:05:30,000 --> 00:05:33,500 The long term, it is true. That's the part that I'm 125 00:05:33,500 --> 00:05:37,300 focusing on the long term. The reason that I sold out of 126 00:05:37,300 --> 00:05:40,400 oil companies is because of the way that I'm trying to 127 00:05:40,400 --> 00:05:43,700 reposition my portfolio. I'm trying to reposition it for 128 00:05:43,700 --> 00:05:46,200 the long term. And what I want to do to go 129 00:05:46,200 --> 00:05:48,900 through the process of this, I want to go to the stock picking 130 00:05:48,900 --> 00:05:51,500 checklist where I can outline my thought process on this. 131 00:05:51,600 --> 00:05:54,800 The first thing that I'm asking myself, when I'm picking a stock 132 00:05:54,800 --> 00:05:58,200 to invest in is, is it in a growing industry. 133 00:05:58,400 --> 00:06:01,300 This is the first question. An industry is the first thing 134 00:06:01,300 --> 00:06:04,300 that I'm looking at is the industry overall. 135 00:06:04,300 --> 00:06:07,000 A growing industry. You can look at examples of 136 00:06:07,000 --> 00:06:11,700 industries that are not growing oil is one of them energy by oil 137 00:06:11,700 --> 00:06:14,500 is not a growing industry. That doesn't mean the price 138 00:06:14,500 --> 00:06:17,000 won't come up with oil and that those companies will become more 139 00:06:17,000 --> 00:06:19,000 valuable. It means that overall, the 140 00:06:19,000 --> 00:06:21,300 direction that our economy is going, the direction that 141 00:06:21,400 --> 00:06:24,400 countries are trying to go. The way that capital is being 142 00:06:24,400 --> 00:06:27,600 allocated and investing everybody's wanting to move out 143 00:06:27,600 --> 00:06:29,800 of oil. That's just something that's 144 00:06:30,000 --> 00:06:32,900 Inevitably true eventually over time. 145 00:06:33,200 --> 00:06:37,400 Oil is going to be an industry that continually is in decline 146 00:06:37,500 --> 00:06:39,800 because that's the direction that the world is going. 147 00:06:40,400 --> 00:06:43,400 This doesn't mean that Exxon Mobil and Chevron are bad 148 00:06:43,400 --> 00:06:46,700 Investments necessarily you could invest like, Nicholas, put 149 00:06:46,700 --> 00:06:48,900 the money in there. Wait, two or three years in the 150 00:06:48,900 --> 00:06:51,600 price of oil might come up with demand, and he might make money 151 00:06:51,600 --> 00:06:54,700 on those, but I think that's a very difficult way to invest 152 00:06:55,000 --> 00:06:57,100 when you're investing in declining Industries. 153 00:06:57,400 --> 00:07:00,600 Not only do you have to pick the best It's within those 154 00:07:00,600 --> 00:07:04,700 Industries, but you have to have Investments that outperform, 155 00:07:04,800 --> 00:07:08,200 their overall industry as the industries in Decline. 156 00:07:08,300 --> 00:07:11,800 You're picking the companies that are accelerating, that's 157 00:07:11,800 --> 00:07:14,900 very difficult to do. It's almost like trying to swim 158 00:07:15,000 --> 00:07:17,100 upstream. You have everything working 159 00:07:17,100 --> 00:07:19,500 against you. So I don't really want to do 160 00:07:19,500 --> 00:07:21,800 that. Even if Chevron and ExxonMobil 161 00:07:21,800 --> 00:07:24,600 are good Investments there in declining Industries. 162 00:07:24,800 --> 00:07:28,300 And so I don't see them having a lot of the support of having 163 00:07:28,300 --> 00:07:31,800 oil, grow 10. Or 15 times in size over the 164 00:07:31,800 --> 00:07:35,000 next 10 or 20 years. So the first question I'm asking 165 00:07:35,000 --> 00:07:37,900 myself is, is the industry growing if the answer's? 166 00:07:37,900 --> 00:07:41,000 No, then it's unlikely that I'm going to want to invest in that 167 00:07:41,000 --> 00:07:42,900 company. Now we can ask ourselves what 168 00:07:42,900 --> 00:07:45,600 industries are growing, which ones are actually going to get a 169 00:07:45,600 --> 00:07:47,700 lot bigger over the next 10 or 20 years. 170 00:07:48,000 --> 00:07:49,900 I could name a few off the top of my head. 171 00:07:50,200 --> 00:07:53,400 I think that cashless payments is a growing industry. 172 00:07:53,700 --> 00:07:56,800 You have visa and MasterCard that are picking up fintech 173 00:07:56,800 --> 00:07:58,700 companies. I think they're going to benefit 174 00:07:58,700 --> 00:07:59,800 from that. So I own. 175 00:07:59,900 --> 00:08:02,800 Visa and MasterCard in my portfolio, but there's another 176 00:08:02,800 --> 00:08:05,500 industry that I think is massively growing and I don't 177 00:08:05,500 --> 00:08:08,300 think investors appreciate the size of growth that will have 178 00:08:08,300 --> 00:08:12,200 over the next 10 years. That is video streaming video 179 00:08:12,200 --> 00:08:17,400 streaming is a growing industry. A massively, massively growing 180 00:08:17,400 --> 00:08:20,800 industry. It's better than cable TV. 181 00:08:21,100 --> 00:08:23,900 In every single way, every single way. 182 00:08:24,200 --> 00:08:27,000 It's on demand. It's much cheaper for the amount 183 00:08:27,000 --> 00:08:29,600 of content that you get. You can download it to your 184 00:08:29,600 --> 00:08:30,700 device. It's and watch it anytime 185 00:08:30,700 --> 00:08:34,200 offline. You have the, the ability to 186 00:08:34,200 --> 00:08:36,100 watch shows and binge watch them. 187 00:08:36,100 --> 00:08:38,400 You don't have any advertisements with them. 188 00:08:38,400 --> 00:08:42,200 It's more lean, you can take it on multiple devices video. 189 00:08:42,200 --> 00:08:46,800 Streaming is so much better than traditional cable TV, that it's 190 00:08:46,800 --> 00:08:48,800 incredible. There's still people using 191 00:08:48,800 --> 00:08:52,500 traditional cable TV, the fact that there's tens of millions of 192 00:08:52,500 --> 00:08:56,700 people currently viewing it in the old format is really crazy 193 00:08:56,700 --> 00:08:58,500 right now. Video streaming is better, 194 00:08:58,500 --> 00:09:02,200 consumers are using this and this industry is going to be 195 00:09:02,200 --> 00:09:05,500 benefiting from that. Now the question is when you 196 00:09:05,500 --> 00:09:09,500 identify an industry, like video streaming that is growing, you 197 00:09:09,500 --> 00:09:11,900 have to ask yourself. What companies are going to 198 00:09:11,900 --> 00:09:15,000 benefit from this. This is the second point on my 199 00:09:15,000 --> 00:09:18,100 checklist. What companies will benefit if 200 00:09:18,100 --> 00:09:20,500 you look at video streaming and you say well this is a growing 201 00:09:20,500 --> 00:09:22,700 industry. I realize that Joseph, you know, 202 00:09:22,700 --> 00:09:24,800 obviously there's there's millions of people signing up 203 00:09:24,800 --> 00:09:27,700 for these different streaming platforms, but trying to pick 204 00:09:27,700 --> 00:09:29,400 which one's going to be, the winner is going to be very 205 00:09:29,400 --> 00:09:30,700 difficult. Because we have all these 206 00:09:30,700 --> 00:09:32,900 different competitors. We have Amazon with Amazon, 207 00:09:32,900 --> 00:09:36,100 Prime we have apple with Apple TV plus we have Disney plus and 208 00:09:36,100 --> 00:09:39,200 Hulu and YouTube TV, and we even have other companies that are 209 00:09:39,200 --> 00:09:42,300 kind of video streaming but not really like YouTube. 210 00:09:42,700 --> 00:09:45,700 They do, you know, content creators make their own videos, 211 00:09:45,900 --> 00:09:47,400 but that's not the same thing as Netflix. 212 00:09:47,700 --> 00:09:49,400 So we have all these different companies. 213 00:09:49,700 --> 00:09:54,000 The question is, which ones will benefit with video streaming. 214 00:09:54,000 --> 00:09:57,500 I think the in this industry, there's going to be two 215 00:09:57,500 --> 00:10:01,300 companies that will benefit the most Those are Netflix and 216 00:10:01,300 --> 00:10:04,400 Disney. Netflix is the clear leader with 217 00:10:04,400 --> 00:10:08,200 180 million subscribers and it's still growing rapidly. 218 00:10:08,500 --> 00:10:11,900 Disney's in second place with 60 million subscribers. 219 00:10:12,200 --> 00:10:16,100 I think that these two companies are in the best position to take 220 00:10:16,100 --> 00:10:18,300 advantage of this growing industry. 221 00:10:18,400 --> 00:10:22,000 And then in third place, we have HBO with 36 million subscribers. 222 00:10:22,400 --> 00:10:26,400 Two of my biggest Holdings are Disney and AT&T the owns HBO. 223 00:10:26,400 --> 00:10:28,900 Now, the reason that I really am bullish on these companies is 224 00:10:28,900 --> 00:10:30,500 because of their stream. Services. 225 00:10:31,000 --> 00:10:34,100 Now, you might look at these numbers 180 million, 60 million 226 00:10:34,300 --> 00:10:37,200 36 million and then all the other different streaming 227 00:10:37,200 --> 00:10:39,800 competitors. You might say, Joseph, it's good 228 00:10:39,800 --> 00:10:42,600 and all that this industry is growing, but there's already a 229 00:10:42,600 --> 00:10:44,800 lot of people subscribe to these Services. 230 00:10:44,800 --> 00:10:46,700 How much growth are you really expecting? 231 00:10:46,900 --> 00:10:49,200 Isn't it becoming a little bit saturated? 232 00:10:49,300 --> 00:10:51,800 Are you really going to eke out that much more growth with these 233 00:10:51,800 --> 00:10:54,200 type of services. Let's go ahead and take a look 234 00:10:54,200 --> 00:10:56,600 at that. There are about three point. 235 00:10:56,600 --> 00:10:59,600 One, two, three point two billion people that have an 236 00:10:59,600 --> 00:11:01,900 interest. Internet connection devices, to 237 00:11:01,900 --> 00:11:05,700 be able to stream, excluding the countries of China and Russia. 238 00:11:05,700 --> 00:11:09,800 That is the the context that I'm looking at this with compared to 239 00:11:09,800 --> 00:11:14,500 3.1 billion 180 million, 60 million, that is a tiny fraction 240 00:11:14,500 --> 00:11:18,300 of the addressable Market. A tiny fraction. 241 00:11:18,300 --> 00:11:22,400 Now, I'm not saying every single one of these 3.1 billion are 242 00:11:22,400 --> 00:11:25,300 going to sign up for Disney or Netflix, but it goes without 243 00:11:25,300 --> 00:11:29,700 saying that the potential Market here is multiples multiples 244 00:11:29,700 --> 00:11:33,300 because Her than it currently is these companies have tremendous 245 00:11:33,300 --> 00:11:36,100 amounts of opportunity here, and I don't think investors fully 246 00:11:36,100 --> 00:11:38,700 appreciate that. When you look at something like 247 00:11:38,800 --> 00:11:42,100 Netflix with 180 million subscribers investors, have 248 00:11:42,100 --> 00:11:45,100 continually been saying it's overpriced. 249 00:11:45,100 --> 00:11:47,300 They are going to slow down with their subscribers. 250 00:11:47,500 --> 00:11:49,300 They're not slowing down with their subscribers. 251 00:11:49,400 --> 00:11:51,400 They have an enormous Head Start. 252 00:11:51,500 --> 00:11:54,200 I think that Netflix will continue to dominate and 253 00:11:54,200 --> 00:11:57,300 streaming. I think that Disney is uniquely 254 00:11:57,300 --> 00:11:59,700 positioned to be an extremely good value. 255 00:11:59,800 --> 00:12:03,300 Proposition right now because unlike Netflix, Disney is 256 00:12:03,300 --> 00:12:06,300 misunderstood. Everybody understands Netflix. 257 00:12:06,300 --> 00:12:07,900 They say this is a streaming service. 258 00:12:08,100 --> 00:12:10,500 It's one of the most simple brands that exist. 259 00:12:10,500 --> 00:12:12,500 They do one thing and they do it really. 260 00:12:12,500 --> 00:12:14,900 Well. Disney does a lot of different 261 00:12:14,900 --> 00:12:17,100 things. It is a stock that's harder to 262 00:12:17,100 --> 00:12:19,800 look at even though it's a recognizable, brand people have 263 00:12:19,800 --> 00:12:23,000 a harder time doing analysis on the stock, I go and I read 264 00:12:23,000 --> 00:12:27,400 through articles on Seeking Alpha and different places and I 265 00:12:27,400 --> 00:12:30,200 look at the type of analysis they're doing and they're Sickly 266 00:12:30,200 --> 00:12:33,100 just looking at the next three months. 267 00:12:33,100 --> 00:12:34,600 How much money does he's going to lose? 268 00:12:34,600 --> 00:12:38,100 Because of coronavirus. This is such a misunderstood way 269 00:12:38,100 --> 00:12:41,800 of looking at this stock. This company is a streaming 270 00:12:41,800 --> 00:12:45,100 Powerhouse. The leaders of it has said that 271 00:12:45,100 --> 00:12:48,600 streaming is going to be the primary focus of this company. 272 00:12:48,600 --> 00:12:51,700 They have ESP n plus the currently has over 8 million 273 00:12:51,700 --> 00:12:53,600 subscribers. They have Hulu. 274 00:12:53,600 --> 00:12:56,600 The currently has over 30 million subscribers, and then 275 00:12:56,600 --> 00:12:59,400 they have Disney plus that currently has over 60 million. 276 00:12:59,800 --> 00:13:01,700 Fibers. They have multiple streaming 277 00:13:01,700 --> 00:13:05,900 services and Disney plus is one that I think has tremendous 278 00:13:05,900 --> 00:13:09,700 value at $6 a month and the amount of content and the 279 00:13:09,700 --> 00:13:11,800 additional series that they're going to be adding to the 280 00:13:11,800 --> 00:13:14,000 service. The rate of growth has already 281 00:13:14,000 --> 00:13:16,400 been impressive and the subscribers that they've already 282 00:13:16,400 --> 00:13:20,800 gained allow them to push more content onto the service at a 283 00:13:20,808 --> 00:13:24,600 cheaper price per subscriber. So, Disney is the one that I see 284 00:13:24,800 --> 00:13:28,000 the biggest opportunity. It is the most misunderstood 285 00:13:28,000 --> 00:13:30,900 company investors do not Realize that this company is 286 00:13:30,900 --> 00:13:35,400 transitioning from an old capital intensive, High fixed 287 00:13:35,400 --> 00:13:40,500 cost Park and Resort business to now, Aileen Tech production 288 00:13:40,500 --> 00:13:44,200 company streaming company. That's what Disney is right now 289 00:13:44,400 --> 00:13:47,000 and I don't think investors fully realized that the 290 00:13:47,000 --> 00:13:51,000 potential Market is enormous. The industry is growing and will 291 00:13:51,000 --> 00:13:52,700 be multiples bigger than it currently. 292 00:13:52,700 --> 00:13:56,800 Is today in five or ten years, the companies that will benefit 293 00:13:56,800 --> 00:13:59,600 from this are the ones that already have a head start. 294 00:13:59,900 --> 00:14:03,400 If you try to get into the streaming game without having a 295 00:14:03,408 --> 00:14:07,300 head start, you have to have an incredible amount of capital. 296 00:14:07,500 --> 00:14:10,700 You have to be a company that already is massive. 297 00:14:10,800 --> 00:14:13,700 The only ones that can even start to get into this industry 298 00:14:14,000 --> 00:14:17,000 without already having the head start, our companies like apple 299 00:14:17,000 --> 00:14:20,300 and Amazon and they will try to buy their way into it. 300 00:14:20,700 --> 00:14:23,600 The ones that already have the lead have a significant 301 00:14:23,600 --> 00:14:28,000 Advantage because the price per subscriber for their content 302 00:14:28,000 --> 00:14:29,700 becomes cheaper. Think about this. 303 00:14:29,800 --> 00:14:34,100 You buy one Movie for 100 million dollars and you have 180 304 00:14:34,100 --> 00:14:37,400 million subscribers. You're only paying so much per 305 00:14:37,400 --> 00:14:41,900 subscriber for that movie. If you buy one movie that's 100 306 00:14:41,900 --> 00:14:44,500 million dollars, but you have five subscribers. 307 00:14:44,900 --> 00:14:48,700 You just paid twenty million dollars per subscriber for that 308 00:14:48,700 --> 00:14:50,600 movie. That's the advantage that 309 00:14:50,600 --> 00:14:53,000 Netflix has. They already have the subscriber 310 00:14:53,000 --> 00:14:55,400 base. The advantage that Disney has is 311 00:14:55,400 --> 00:14:57,800 they already have the content, it's all they need to do is go 312 00:14:57,800 --> 00:14:59,600 and sell it. The advantage that comes. 313 00:14:59,700 --> 00:15:03,800 Companies like apple and Amazon have is, they have money, but 314 00:15:03,800 --> 00:15:07,300 they are so far behind they'll try to push their way into it, 315 00:15:07,500 --> 00:15:09,700 but I don't think that that's a successful strategy. 316 00:15:09,900 --> 00:15:12,900 Is a companies that already have the content or they already have 317 00:15:12,900 --> 00:15:14,700 the subscribers. Those are the ones that are 318 00:15:14,708 --> 00:15:19,100 going to benefit the most and I do think that this industry is a 319 00:15:19,100 --> 00:15:23,200 universally loved industry. Everybody loves entertainment. 320 00:15:23,400 --> 00:15:25,800 So it's not something that goes away. 321 00:15:25,900 --> 00:15:28,400 It's not something that's just this commodity that comes and 322 00:15:28,400 --> 00:15:30,700 goes entertainment. Something that's going to be 323 00:15:30,700 --> 00:15:34,800 around forever and all 3.1 billion people do enjoy 324 00:15:34,800 --> 00:15:37,000 entertainment. Everybody enjoys entertainment. 325 00:15:37,000 --> 00:15:40,200 It's Universal. So I see the industry growing. 326 00:15:40,400 --> 00:15:42,600 I see the companies that will take advantage of it. 327 00:15:42,700 --> 00:15:44,200 What is the third thing that I look at? 328 00:15:44,700 --> 00:15:47,100 The third thing I look at is, is it simple? 329 00:15:47,400 --> 00:15:51,500 I ask myself, is the company. I'm investing in a simple easy 330 00:15:51,500 --> 00:15:54,200 to understand business model. Is that what it is? 331 00:15:54,400 --> 00:15:57,300 If it's a very complex difficult to understand business model. 332 00:15:57,700 --> 00:15:59,600 I probably shouldn't be investing in it. 333 00:15:59,700 --> 00:16:03,900 It what I'm looking for is Simplicity in the business model 334 00:16:04,200 --> 00:16:06,600 with Disney. It does have some other segments 335 00:16:06,600 --> 00:16:08,700 of its business. It has the parks and Resorts, 336 00:16:09,000 --> 00:16:11,100 but overall, they are simplifying, their business 337 00:16:11,100 --> 00:16:13,300 model a lot. They're making it so that they 338 00:16:13,300 --> 00:16:16,600 are just going to be a Powerhouse streaming company. 339 00:16:16,900 --> 00:16:20,100 That's very simple. They produce content to put on 340 00:16:20,100 --> 00:16:22,500 their streaming service that makes it so that they gain 341 00:16:22,500 --> 00:16:26,300 subscribers those additional subscribers fund additional 342 00:16:26,300 --> 00:16:29,500 content and that Circle just goes in circles. 343 00:16:29,800 --> 00:16:32,800 Over and over again, more content, more subscribers, more 344 00:16:32,800 --> 00:16:35,400 content, more subscribers. And when you gain more 345 00:16:35,400 --> 00:16:38,200 subscribers and makes the additional content cheaper, 346 00:16:38,400 --> 00:16:40,300 that's exactly what Netflix has been doing. 347 00:16:40,600 --> 00:16:43,200 They have a clear lead in this, but I think Disney will be a 348 00:16:43,200 --> 00:16:45,900 good Contender. So I look at the business model. 349 00:16:46,100 --> 00:16:48,600 It's very simple. When I look at companies that 350 00:16:48,600 --> 00:16:51,600 I've done well with historically, they likewise have 351 00:16:51,600 --> 00:16:53,700 been basically, simple companies. 352 00:16:53,900 --> 00:16:55,400 Apple, I think is relatively simple. 353 00:16:55,400 --> 00:16:57,100 You just look at the products. They sell and you go. 354 00:16:57,300 --> 00:16:59,300 Well, people like these products and services. 355 00:16:59,700 --> 00:17:01,300 And they're probably going to be around in the future. 356 00:17:01,300 --> 00:17:04,400 It's a growing industry. Simple investment, MasterCard, 357 00:17:04,400 --> 00:17:07,599 and Visa. There's less cash in the world. 358 00:17:07,599 --> 00:17:11,099 It continues to go into decline, more people are using cashless 359 00:17:11,099 --> 00:17:12,900 forms of payment. They're paying with credit 360 00:17:12,900 --> 00:17:15,099 cards. They're paying with phones and 361 00:17:15,099 --> 00:17:17,300 MasterCard. And Visa are companies that will 362 00:17:17,300 --> 00:17:20,200 probably take advantage of that because all they do, is they 363 00:17:20,200 --> 00:17:22,099 ensure payments. That's all they do. 364 00:17:22,099 --> 00:17:25,500 They process payments, Microsoft, likewise a company 365 00:17:25,500 --> 00:17:28,200 that's very simple Office Products that people use to 366 00:17:28,200 --> 00:17:31,100 communicate at work. Very simple company and 367 00:17:31,100 --> 00:17:33,900 consumers. All of these are very obvious 368 00:17:33,900 --> 00:17:37,300 household names that everybody uses almost on a daily basis. 369 00:17:37,600 --> 00:17:40,200 We have Disney which I already described I think is a simple 370 00:17:40,200 --> 00:17:43,600 business model Pepsi makes drinks and snacks. 371 00:17:43,600 --> 00:17:46,900 Costco has one of the most boring easy to understand 372 00:17:46,900 --> 00:17:49,000 business models. They build these warehouses 373 00:17:49,000 --> 00:17:51,000 where they sell stuff, and they have a subscription. 374 00:17:51,200 --> 00:17:53,100 That's it. Then we have Comcast Home, 375 00:17:53,100 --> 00:17:56,700 Depot, Target and Nike all household names. 376 00:17:56,800 --> 00:17:59,200 I'm in the green on every single one of these Holdings. 377 00:17:59,300 --> 00:18:02,400 So so the places that I've made the most money have been 378 00:18:02,400 --> 00:18:04,700 following this advice. It's been investing in 379 00:18:04,700 --> 00:18:07,100 industries that are growing. It's been trying to find the 380 00:18:07,100 --> 00:18:10,400 companies that will take advantage of that growth. 381 00:18:10,400 --> 00:18:13,600 The most the companies that are in the best position, and then 382 00:18:13,600 --> 00:18:16,000 it's companies that have simple business models. 383 00:18:16,300 --> 00:18:19,800 The ones that really have an easy-to-understand simple 384 00:18:19,800 --> 00:18:24,100 business model, that reinforces itself, as it continues to go, I 385 00:18:24,100 --> 00:18:25,600 think are the ones that are going to be the biggest 386 00:18:25,600 --> 00:18:28,100 beneficiaries of it. So that's over all the 387 00:18:28,100 --> 00:18:30,200 direction. I've been going with my Flio, 388 00:18:30,600 --> 00:18:33,900 like I've said many times before, I want this portfolio to 389 00:18:33,900 --> 00:18:37,800 be a growing stream of Revenue. I look at it as an additional 390 00:18:37,800 --> 00:18:39,700 stream of Revenue outside of my job. 391 00:18:39,800 --> 00:18:42,000 In order, for these companies to pay dividends to their 392 00:18:42,000 --> 00:18:44,400 shareholders. They need a gain, massive market 393 00:18:44,400 --> 00:18:45,600 share. They need to be well, 394 00:18:45,600 --> 00:18:47,400 established. They need to be in growing 395 00:18:47,400 --> 00:18:49,600 Industries. So that's the direction I'm 396 00:18:49,600 --> 00:18:51,200 going. And I think the more that I do 397 00:18:51,200 --> 00:18:54,400 this, I think that they'll be able to pay shareholders, a lot 398 00:18:54,400 --> 00:18:57,300 of money in the years to come. If you pick the right companies 399 00:18:57,300 --> 00:18:59,600 that gain huge market, share, they'll be able to return. 400 00:18:59,700 --> 00:19:02,300 Turn value to shareholders in the forms of dividends in the 401 00:19:02,300 --> 00:19:04,400 future. So that's what I plan on doing 402 00:19:04,400 --> 00:19:06,100 with the portfolio. You can let me know your 403 00:19:06,100 --> 00:19:09,100 feedback if you're interested in looking at this and seeing the 404 00:19:09,100 --> 00:19:11,700 precise allocations of every single holding. 405 00:19:12,000 --> 00:19:14,300 I'm going to go ahead and update this and put the link in the 406 00:19:14,308 --> 00:19:17,100 description. So it'll say something like my 407 00:19:17,100 --> 00:19:19,200 main portfolio. You click on that link. 408 00:19:19,300 --> 00:19:21,800 It will open it up and then, you can look at every single company 409 00:19:22,100 --> 00:19:24,900 and every single holding. Now on the snow of the streaming 410 00:19:24,900 --> 00:19:29,600 Wars between Netflix Disney and AT&T, or HBO. 411 00:19:29,700 --> 00:19:33,000 Max Lerner media. CEO, Jason kilar did an 412 00:19:33,000 --> 00:19:36,900 interview with CNBC and he was asked, directly a couple. 413 00:19:37,000 --> 00:19:39,100 I think pretty tough questions. I was actually impressed with 414 00:19:39,100 --> 00:19:40,700 the questions. He was asked, they basically 415 00:19:40,700 --> 00:19:43,000 said, look, we have all these streaming services. 416 00:19:43,300 --> 00:19:46,400 HBO Max is growing seemingly pretty slow. 417 00:19:46,400 --> 00:19:49,500 It's only gained a couple like a million or so subscribers a 418 00:19:49,500 --> 00:19:51,200 month. What you have to say about this 419 00:19:51,400 --> 00:19:53,700 is HBO falling behind in the streaming War. 420 00:19:53,800 --> 00:19:58,200 Keep my Disney is a hundred-year surgically, precise brand with 421 00:19:58,200 --> 00:20:00,900 regards to families. With kids under the ages of 422 00:20:00,900 --> 00:20:04,500 nine, generally speaking. So they did exactly what they 423 00:20:04,500 --> 00:20:06,100 should have done. And kudos to them. 424 00:20:06,400 --> 00:20:09,600 Ours is a very different journey I argue in success. 425 00:20:09,600 --> 00:20:13,300 Art, is a bigger outcome because we are really going after, all 426 00:20:13,300 --> 00:20:16,000 members of the family, and all individuals. 427 00:20:16,600 --> 00:20:18,200 Now. I like Jason's response here. 428 00:20:18,200 --> 00:20:20,700 He's saying kudos to them, Disney has been doing really 429 00:20:20,700 --> 00:20:24,800 well, and just for context with that Disney has been growing at 430 00:20:24,800 --> 00:20:27,100 somewhere around five million subscribers a month. 431 00:20:27,300 --> 00:20:31,100 While HBO, Max has been growing got like, 1 million subscribers 432 00:20:31,100 --> 00:20:33,200 a month. So Disney has been crushing them 433 00:20:33,200 --> 00:20:36,600 and growth and I know that HBO Max is a higher price point, 434 00:20:36,600 --> 00:20:38,400 right? It's 15 dollars instead of six. 435 00:20:38,800 --> 00:20:40,200 I don't think that matters that much right. 436 00:20:40,200 --> 00:20:42,400 Now. The amount of subscribers is way 437 00:20:42,400 --> 00:20:45,300 more valuable Disney has substantial pricing power. 438 00:20:45,500 --> 00:20:49,700 Once they get 100 million, 200 million, 300, 400 million 439 00:20:49,700 --> 00:20:51,900 subscribers. They will be able to price their 440 00:20:51,900 --> 00:20:55,700 service up and up and up Netflix showed that they can do that. 441 00:20:55,700 --> 00:20:58,300 They originally started at like seven dollars a month and now 442 00:20:58,300 --> 00:21:00,700 they're twelve dollars a month. So You can do the exact same 443 00:21:00,700 --> 00:21:02,800 thing. The amount of subscribers is way 444 00:21:02,800 --> 00:21:05,800 more powerful than the current price that subscribers are 445 00:21:05,800 --> 00:21:08,500 paying. So he recognizes that Disney has 446 00:21:08,500 --> 00:21:11,400 been crushing them with the amount of subscriber growth. 447 00:21:11,600 --> 00:21:15,000 But he says that Disney is a surgically precise brand by 448 00:21:15,000 --> 00:21:16,300 that. He means they are 449 00:21:16,300 --> 00:21:18,900 family-oriented content. You're not going to find 450 00:21:19,000 --> 00:21:23,000 gratuitous violence and nudity and profane language on Disney. 451 00:21:23,000 --> 00:21:24,700 Plus. That works to Disney's 452 00:21:24,700 --> 00:21:26,500 Advantage. Because parents can say, look 453 00:21:26,600 --> 00:21:28,600 here is the catalog pick whatever you want kids. 454 00:21:28,700 --> 00:21:29,600 You don't have to worry about them. 455 00:21:29,700 --> 00:21:31,900 I'm stumbling their way into a series. 456 00:21:31,900 --> 00:21:35,000 You don't want them to watch. So, Disney has executed with 457 00:21:35,000 --> 00:21:38,700 their brand extremely well, but he says it the ultimate outcome 458 00:21:39,100 --> 00:21:42,600 is much bigger with HBO because they have broader a pill. 459 00:21:42,600 --> 00:21:44,300 They have shows that appeal to more people. 460 00:21:44,400 --> 00:21:48,000 He continues on referring to Disney as a surgically precise 461 00:21:48,000 --> 00:21:49,700 service. I think he's almost trying to 462 00:21:49,700 --> 00:21:53,200 pigeonhole Disney and to being just this service for children. 463 00:21:53,600 --> 00:21:55,200 Ours is a very different Journey. 464 00:21:55,500 --> 00:21:58,600 I'd argue in success. Art is a bigger outcome because 465 00:21:58,600 --> 00:22:01,000 we are really going out. After all, members of the 466 00:22:01,008 --> 00:22:06,100 family, and all individuals, and so the opportunity is bigger, 467 00:22:06,300 --> 00:22:08,600 but it does mean that our journey is going to be different 468 00:22:08,600 --> 00:22:12,000 because we don't have a hundred year, surgically precise brand 469 00:22:12,100 --> 00:22:15,300 around families, specifically with kids under the age of nine. 470 00:22:15,500 --> 00:22:19,200 So he says that Disney plus is more family-oriented content, 471 00:22:19,200 --> 00:22:22,200 especially children. The target age being nine is 472 00:22:22,200 --> 00:22:24,500 what he says. I definitely don't agree with 473 00:22:24,500 --> 00:22:25,900 that. I think that Disney Plus for 474 00:22:25,900 --> 00:22:28,100 sure. Is more family friendly, but 475 00:22:28,100 --> 00:22:31,100 they also have shows like the Mandalorian and that was a show 476 00:22:31,100 --> 00:22:33,800 that had broad appeal across every age demographic. 477 00:22:33,800 --> 00:22:36,200 I think that they'll have Mandalorian season 2, they'll 478 00:22:36,200 --> 00:22:39,000 have an Obi-Wan Kenobi series. They have a ton of Marvel 479 00:22:39,000 --> 00:22:41,400 spin-offs that people of all ages. 480 00:22:41,500 --> 00:22:43,800 Usually enjoy those shows. When you look at the movies, 481 00:22:44,000 --> 00:22:46,300 they sell the tickets to everybody of every different 482 00:22:46,300 --> 00:22:48,100 age. So Disney, I think has the 483 00:22:48,100 --> 00:22:51,500 advantage of both being family friendly, but also having 484 00:22:51,500 --> 00:22:54,400 content that appeals to a wide range of Ages. 485 00:22:54,700 --> 00:22:58,100 So I think there's significant advantage to Disney their HBO. 486 00:22:58,100 --> 00:23:01,000 Max does have family. Only friendly content. 487 00:23:01,100 --> 00:23:03,600 They have a section on it. That's just for kids and it's 488 00:23:03,600 --> 00:23:07,300 all family friendly, but I think as a brand HBO's known as more 489 00:23:07,300 --> 00:23:11,100 of the mature content nitty-gritty, that is not really 490 00:23:11,100 --> 00:23:13,100 family friendly. So they kind of suffer from the 491 00:23:13,100 --> 00:23:15,100 opposite effect. I think HBO has branded 492 00:23:15,100 --> 00:23:17,700 themselves as not being quite as much for families. 493 00:23:17,800 --> 00:23:21,200 Something that AT&T has done in the past is poorly, executed 494 00:23:21,300 --> 00:23:23,000 their products. They have good products like 495 00:23:23,000 --> 00:23:25,700 HBO, but then they confuse the customer. 496 00:23:25,700 --> 00:23:29,500 They offer HBO now and HBO Go and then they have HBO. 497 00:23:29,600 --> 00:23:32,100 Oh Max, this is something that has caused confusion. 498 00:23:32,100 --> 00:23:34,600 You can even look at Google search as a people asking, what 499 00:23:34,600 --> 00:23:37,800 is even the difference between HBO now and HBO GO like, what 500 00:23:37,800 --> 00:23:40,000 does it even mean? This is what he's responding to. 501 00:23:40,400 --> 00:23:43,600 I think, in hindsight a mistake, which is, we did have a number 502 00:23:43,600 --> 00:23:46,300 of brands in the market that were ultimately confusing, which 503 00:23:46,300 --> 00:23:49,300 is HBO now. And HBO GO, we have sunsetted 504 00:23:49,300 --> 00:23:53,600 those brands in those services. So now we are left with rightly. 505 00:23:53,600 --> 00:23:58,300 So HBO Max and HBO, so, it's a much simpler proposition for 506 00:23:58,300 --> 00:24:00,400 consumers. So he says, Is getting rid of 507 00:24:00,400 --> 00:24:05,700 HBO Go and HBO now, but they still have HBO and HBO Max as 508 00:24:05,700 --> 00:24:08,500 two different things you can sign up for, I wish that they 509 00:24:08,500 --> 00:24:10,700 would follow the lead of other companies have done. 510 00:24:10,700 --> 00:24:14,600 This successfully, Disney has Disney, plus there's no Disney 511 00:24:14,600 --> 00:24:17,900 plus, and then Disney plus Max. There's just one service. 512 00:24:17,900 --> 00:24:19,900 It's very simple and customers Minds. 513 00:24:19,900 --> 00:24:23,600 So, this is something that AT&T continually struggles with is 514 00:24:23,600 --> 00:24:27,000 keeping things, simple making, it easy for customers to 515 00:24:27,000 --> 00:24:30,200 understand, they have good products, but they They, they 516 00:24:30,200 --> 00:24:32,400 really complicate things unnecessarily. 517 00:24:32,500 --> 00:24:35,300 So they're moving in the right direction, getting rid of HBO Go 518 00:24:35,300 --> 00:24:37,800 and HBO now I think is good. But I wish they would just 519 00:24:37,800 --> 00:24:40,800 combine HBO and Max into one product. 520 00:24:40,800 --> 00:24:42,700 That would make it so easy for consumers. 521 00:24:42,900 --> 00:24:45,500 The last thing that he gets asked is what are you doing to 522 00:24:45,508 --> 00:24:48,200 gain an edge over the competitors you have Netflix, 523 00:24:48,200 --> 00:24:51,100 which has the lead you have Disney plus, which is growing 524 00:24:51,100 --> 00:24:53,000 really fast. You have these other services 525 00:24:53,000 --> 00:24:56,500 she mentions peacock as a free streaming service, you know, 526 00:24:56,500 --> 00:24:57,600 there's YouTube. There's all these other 527 00:24:57,600 --> 00:25:01,100 competitors. What is Doing to gain an edge 528 00:25:01,100 --> 00:25:04,000 over all these. Many competitors quality is the 529 00:25:04,000 --> 00:25:05,600 answer. We want people when they think 530 00:25:05,600 --> 00:25:08,200 of HBO Max, when they think of all the things that they can get 531 00:25:08,200 --> 00:25:12,400 from HBO Max, we want people to think that while these stories 532 00:25:12,400 --> 00:25:15,600 there A Cut Above, and that really plays into the Legacy in 533 00:25:15,600 --> 00:25:19,300 the history of HBO quality. That's the biggest distinction 534 00:25:19,300 --> 00:25:21,100 that HBO has over its competitors. 535 00:25:21,300 --> 00:25:25,100 While Netflix has done the shotgun approach, just blasting 536 00:25:25,100 --> 00:25:28,700 content everywhere and hoping that some of its really good. 537 00:25:28,700 --> 00:25:32,200 Some of it, not so, Good, but people find things to watch HBO 538 00:25:32,200 --> 00:25:35,400 is more focused on having less content, but higher quality. 539 00:25:35,500 --> 00:25:37,700 And I definitely don't think that he's lying about that. 540 00:25:37,700 --> 00:25:40,300 Some of the new trailers that they're releasing look 541 00:25:40,300 --> 00:25:43,300 absolutely incredible in terms of their production quality. 542 00:25:43,400 --> 00:25:45,900 Here's one that's a TV series by Ridley. 543 00:25:45,900 --> 00:25:49,000 Scott the HBO Max's releasing. This one's called Raised by 544 00:25:49,000 --> 00:25:50,600 Wolves. I watch this trailer just a 545 00:25:50,608 --> 00:25:53,900 couple days ago and you just have to see it. 546 00:25:59,600 --> 00:26:41,900 First little pig, little pig. This looks trippy, looks kind of 547 00:26:41,900 --> 00:26:44,200 weird. The production quality looks 548 00:26:44,200 --> 00:26:46,400 incredible. I have no clue what's going on 549 00:26:46,400 --> 00:26:48,600 in this trailer. But I'm very much intrigued by 550 00:26:48,600 --> 00:26:53,400 it, if HBO, is going to do this and hire people, like Ridley 551 00:26:53,400 --> 00:26:57,200 Scott, that's done Gladiator. And alien to do TV series on 552 00:26:57,200 --> 00:26:59,400 their platform. I definitely think there's an 553 00:26:59,400 --> 00:27:03,000 audience for this. If they do the strategy of 554 00:27:03,000 --> 00:27:06,100 having the highest quality content, the highest quality 555 00:27:06,100 --> 00:27:09,400 Productions that, you look at HBO and you think of their brand 556 00:27:09,700 --> 00:27:12,800 as just the best content, not focusing on what Netflix is 557 00:27:12,800 --> 00:27:14,900 doing or they have thousands of shows. 558 00:27:15,000 --> 00:27:17,000 Some of them very good, but some of them not so good. 559 00:27:17,400 --> 00:27:20,900 HBO needs to just focus on being the best and I think if they do 560 00:27:20,900 --> 00:27:22,900 that, there's certainly a story there. 561 00:27:23,000 --> 00:27:24,800 I think that's a good strategy to do. 562 00:27:24,800 --> 00:27:27,900 So, we'll see how this plays out but it does seem like Jason is 563 00:27:27,900 --> 00:27:30,900 telling the truth when they're focusing on making their series 564 00:27:30,900 --> 00:27:34,100 the best series. Okay, now moving on from that. 565 00:27:34,200 --> 00:27:36,700 Let's get to some emails. Joseph at Joseph Carlson 566 00:27:36,700 --> 00:27:40,200 show.com is the email address. Josephat Joseph Carlson show. 567 00:27:40,400 --> 00:27:43,000 You can also follow me on Instagram and message me there, 568 00:27:43,200 --> 00:27:45,800 or on Twitter. I checked those as well, the 569 00:27:45,800 --> 00:27:48,000 first ones from Alex Alex has, hey, Joseph. 570 00:27:48,000 --> 00:27:50,400 Would love to get your thoughts on, Simon Property. 571 00:27:50,700 --> 00:27:53,800 Possibly making a deal with Amazon to turn Sears and 572 00:27:53,800 --> 00:27:56,500 JCPenney locations into fulfillment centers. 573 00:27:56,800 --> 00:27:58,700 How do you think it changes the business model? 574 00:27:58,900 --> 00:28:00,800 How does it impact the cash flow? 575 00:28:01,100 --> 00:28:04,400 Would you be a fan of this move? Love the videos and can't wait 576 00:28:04,400 --> 00:28:07,500 for more Alex. Well, Alex, I did read that 577 00:28:07,500 --> 00:28:08,600 news. Basically. 578 00:28:08,600 --> 00:28:11,300 What's going on right now? If you haven't heard, is that 579 00:28:11,300 --> 00:28:14,500 Amazon has been in talks with Simon Property, which was one of 580 00:28:14,500 --> 00:28:17,000 the largest small REITs in the country, they have over. 581 00:28:17,100 --> 00:28:18,800 Hundreds of miles across the u.s. 582 00:28:19,300 --> 00:28:22,800 And Amazon has been talking to them to have the idea of 583 00:28:22,800 --> 00:28:25,100 turning. Some of their JC Penney 584 00:28:25,100 --> 00:28:29,100 locations in Sears locations, the big spots in the mall and to 585 00:28:29,100 --> 00:28:31,000 these Amazon distribution centers. 586 00:28:31,600 --> 00:28:34,200 And the more I read about this, the more it made sense, Amazon 587 00:28:34,200 --> 00:28:35,800 is trying to get quicker deliveries. 588 00:28:35,800 --> 00:28:39,100 That's their goal to get items to you very quickly, same day if 589 00:28:39,100 --> 00:28:41,500 they can. Well, that creates a logistics 590 00:28:41,500 --> 00:28:43,900 problem. Basically, they need to have 591 00:28:43,900 --> 00:28:47,000 distribution centers in the middle of Highly dense. 592 00:28:47,100 --> 00:28:50,900 Areas, and as it turns out malls are in the middle of Highly 593 00:28:50,900 --> 00:28:53,600 dense areas. In fact, they're right dead 594 00:28:53,600 --> 00:28:56,100 center of most of them and they're close to freeways. 595 00:28:56,200 --> 00:28:58,200 So it makes sense to Amazon. Would look at malls and say, 596 00:28:58,200 --> 00:29:01,100 hey, these might turn out. Well, they're struggling to fill 597 00:29:01,100 --> 00:29:03,500 their locations. What if we just rent it out? 598 00:29:03,500 --> 00:29:06,500 One of the Sears and made that like a little mini Distribution 599 00:29:06,500 --> 00:29:09,000 Center. What they would do is they would 600 00:29:09,000 --> 00:29:13,200 look for items that are commonly ordered in that geographic area. 601 00:29:13,300 --> 00:29:15,600 And then they would fill that distribution center with those 602 00:29:15,600 --> 00:29:18,000 commonly ordered items. That way people can get the 603 00:29:18,000 --> 00:29:19,800 things that they want very quickly. 604 00:29:20,300 --> 00:29:21,600 Now. I don't know what's going to 605 00:29:21,600 --> 00:29:23,500 materialize from this. I don't know what Simon 606 00:29:23,500 --> 00:29:25,400 properties going to do, if they're going to make any 607 00:29:25,400 --> 00:29:27,900 agreements. I actually see this as a viable 608 00:29:27,900 --> 00:29:31,700 thing to have happen. I know that in terms of leasing 609 00:29:31,700 --> 00:29:36,100 out the malls, Amazon would probably barter with them to get 610 00:29:36,200 --> 00:29:38,200 very low prices. So they're not going to be 611 00:29:38,200 --> 00:29:41,500 making a ton of money, but more importantly than that, they'll 612 00:29:41,500 --> 00:29:43,800 have their place is filled with tenants that are actually paying 613 00:29:43,800 --> 00:29:45,000 rent. Right now. 614 00:29:45,200 --> 00:29:48,400 Simon properties not collecting rent for A lot of their outlets 615 00:29:48,400 --> 00:29:50,700 in their malls. So just having them filled with 616 00:29:50,700 --> 00:29:52,500 the tenets that has endless Pockets. 617 00:29:52,500 --> 00:29:54,900 That can pay rent would be a win-win for Simon. 618 00:29:55,100 --> 00:29:57,700 They wouldn't be losing money. And that would be good for them 619 00:29:58,000 --> 00:30:00,800 until they can build back up demand and tell her over the 620 00:30:00,800 --> 00:30:03,500 coronavirus. Simon Property needs to fill 621 00:30:03,500 --> 00:30:05,800 these malls with renters that can pay rent. 622 00:30:05,800 --> 00:30:07,800 And Amazon, certainly fits that description. 623 00:30:07,800 --> 00:30:10,300 So, I think it would be a good thing for both of them. 624 00:30:10,500 --> 00:30:14,500 Amazon would get extremely cheap rent and a centralized area that 625 00:30:14,500 --> 00:30:17,600 they can use to distribute products and Property would be 626 00:30:17,608 --> 00:30:20,600 able to survive until demand comes back with malls. 627 00:30:20,600 --> 00:30:22,000 And I think that eventually it will come back. 628 00:30:22,500 --> 00:30:26,000 I've seen locally some models that are doing very well. 629 00:30:26,000 --> 00:30:29,500 If I go by them, the parking lot is completely packed and I've 630 00:30:29,500 --> 00:30:32,500 never viewed malls as just a mall. 631 00:30:32,600 --> 00:30:34,000 I view them. As real estate. 632 00:30:34,100 --> 00:30:37,400 They are real estate locations. They can be used for whatever 633 00:30:37,800 --> 00:30:40,200 whatever they want. They can be used for Amazon 634 00:30:40,200 --> 00:30:42,500 Fulfillment centers. They can be used for business 635 00:30:42,500 --> 00:30:45,300 and Commercial renting, they can be used for restaurants. 636 00:30:45,400 --> 00:30:48,600 I see a lot of malls. Increasingly becoming just this 637 00:30:48,600 --> 00:30:51,800 Hub of restaurants that people go to Central to the city. 638 00:30:52,100 --> 00:30:55,800 So I am still after all this time. 639 00:30:55,900 --> 00:30:58,300 I still have Simon Property in my portfolio. 640 00:30:58,600 --> 00:31:00,800 I just think that there's so many different ways that they 641 00:31:00,800 --> 00:31:03,100 can use the opportunities. I don't plan on selling this 642 00:31:03,100 --> 00:31:06,700 company at a loss because I do think it will retain its value 643 00:31:07,000 --> 00:31:09,100 and I still think that malls are going to be something in the 644 00:31:09,108 --> 00:31:12,000 future people like to get outside, they like to do some 645 00:31:12,000 --> 00:31:14,800 shopping and if they're not doing the same type of shopping, 646 00:31:14,800 --> 00:31:17,600 I think that the malls will evolve they'll fill Centers, to 647 00:31:17,600 --> 00:31:21,200 be more of a kind of Lifestyle experience place, where you can 648 00:31:21,200 --> 00:31:24,400 walk around go to restaurants, see different shows and that 649 00:31:24,400 --> 00:31:26,200 type of thing. So, I think there's still a lot 650 00:31:26,200 --> 00:31:29,100 of opportunity for Miles. I really haven't given up on 651 00:31:29,100 --> 00:31:30,700 them yet. But I do see this deal with 652 00:31:30,700 --> 00:31:32,800 Amazon. Potentially being a good thing 653 00:31:32,800 --> 00:31:33,800 for both of them. Right now. 654 00:31:34,200 --> 00:31:37,100 Dan says, hey Joseph, love the show and I've been listening / 655 00:31:37,100 --> 00:31:38,600 watching for over a year. Now. 656 00:31:38,800 --> 00:31:41,200 I have a couple questions regarding finance, companies. 657 00:31:41,400 --> 00:31:44,800 I see that you really like JP Morgan, but would like to see 658 00:31:44,800 --> 00:31:48,200 what your thoughts are on Aflac. They seem to be undervalued 659 00:31:48,200 --> 00:31:50,700 currently and could have potentially huge upside. 660 00:31:50,900 --> 00:31:52,300 Currently. I have a decent portion of my 661 00:31:52,300 --> 00:31:56,400 portfolio in a small cap bank and would like to diversify this 662 00:31:56,400 --> 00:32:00,000 sector a bit especially with it being down so much and seemingly 663 00:32:00,000 --> 00:32:02,800 under valued as a whole, just looking for, what your opinion 664 00:32:02,800 --> 00:32:04,000 is. Keep up the great work. 665 00:32:04,400 --> 00:32:07,100 Well, Dan Aflac is one of the companies that I actually sold 666 00:32:07,100 --> 00:32:09,600 out of recently. So I no longer hold a flag at my 667 00:32:09,600 --> 00:32:11,900 portfolio. What I did was I just looked 668 00:32:11,900 --> 00:32:14,600 over the company and I was asking myself these questions, 669 00:32:15,100 --> 00:32:20,000 is this company in a Growing industry is the company itself 670 00:32:20,000 --> 00:32:21,700 has potential to grow quite a bit. 671 00:32:22,300 --> 00:32:26,000 I I look at those two questions and a flag has 70% of their 672 00:32:26,000 --> 00:32:30,700 business in Japan, which Japan has a pretty stagnant economy 673 00:32:30,700 --> 00:32:32,600 and a pretty stagnant population. 674 00:32:32,900 --> 00:32:34,800 They really don't have much growth in their population. 675 00:32:34,900 --> 00:32:37,900 And Aflac is an insurance company that relies on more 676 00:32:37,900 --> 00:32:41,300 people to ensure and they have 70% of their business in a 677 00:32:41,308 --> 00:32:46,000 country that has no growth. So that's a huge limiting factor 678 00:32:46,000 --> 00:32:47,200 for a flag. Back. 679 00:32:47,200 --> 00:32:50,900 And then the 30% that they have in other countries are competing 680 00:32:50,900 --> 00:32:53,300 with insurance companies that have significant advantages of 681 00:32:53,300 --> 00:32:57,000 scale over Aflac. So although I don't think it's a 682 00:32:57,400 --> 00:32:59,600 Bad Company 2 own. I think it will do fine in the 683 00:32:59,600 --> 00:33:01,800 future. I just don't see a ton of 684 00:33:01,800 --> 00:33:04,000 potential with it. It's just kind of this company 685 00:33:04,000 --> 00:33:05,900 that will be around, but I see that. 686 00:33:05,900 --> 00:33:08,500 The growth is extremely limited with a flex. 687 00:33:08,500 --> 00:33:12,100 So for that reason, I took the proceeds of the sale and I put 688 00:33:12,100 --> 00:33:15,000 it in j.p. Morgan, which has investment 689 00:33:15,000 --> 00:33:18,000 portions of their bank. They have And take portions of 690 00:33:18,000 --> 00:33:19,800 it. They have a much bigger 691 00:33:19,800 --> 00:33:22,200 opportunity to grow in the future, I believe. 692 00:33:22,200 --> 00:33:25,100 So, that's the reason that I took money out of a flak and I 693 00:33:25,100 --> 00:33:27,300 put it into Bank of America and JP Morgan. 694 00:33:27,600 --> 00:33:31,600 I just see a lot more potential upside but there's a little bit 695 00:33:31,600 --> 00:33:34,100 more risk, I'd say to the banks. So you just have to decide 696 00:33:34,100 --> 00:33:36,200 between the two. We have a question from another 697 00:33:36,200 --> 00:33:38,100 Dan. He says, hi Joseph. 698 00:33:38,200 --> 00:33:39,800 Your show is great. Keep up the good work. 699 00:33:40,100 --> 00:33:43,500 I appreciate that Dan. He says, also, I was wondering 700 00:33:43,500 --> 00:33:45,900 on your opinion, on the Intel stock to me. 701 00:33:45,900 --> 00:33:48,400 It looks like quite Stay strong dividend stock. 702 00:33:48,400 --> 00:33:51,300 However, it could be that I'm missing something kind regards. 703 00:33:51,700 --> 00:33:53,000 Well, then this is a good question. 704 00:33:53,000 --> 00:33:56,100 I have seen Intel as a stock passed around the Discord quite 705 00:33:56,100 --> 00:33:58,000 a bit. Some people discussing investing 706 00:33:58,000 --> 00:34:00,300 in it. I personally probably will not 707 00:34:00,300 --> 00:34:03,100 be investing in Intel for the same reason that I don't invest 708 00:34:03,100 --> 00:34:07,500 in most Hardware tech companies. I see them as very difficult 709 00:34:07,500 --> 00:34:11,100 Investments to get right. Basically, apple is the only 710 00:34:11,100 --> 00:34:12,800 exception to this that I've made. 711 00:34:12,900 --> 00:34:15,900 And the reason why is, because I view apple, as I've said many 712 00:34:15,900 --> 00:34:19,600 times as More of a software company that a hardware company. 713 00:34:19,900 --> 00:34:23,199 I think their phones are great Hardware, but the cohesion with 714 00:34:23,199 --> 00:34:25,500 their hardware and their software is the final product 715 00:34:25,800 --> 00:34:28,100 with Intel. I look at them as just a chip 716 00:34:28,100 --> 00:34:30,199 maker. They are a hardware tech 717 00:34:30,199 --> 00:34:31,699 company. That's all they do is they make 718 00:34:31,699 --> 00:34:34,600 Hardware. So that's not a category. 719 00:34:34,600 --> 00:34:36,500 I really like to invest in the same reason. 720 00:34:36,500 --> 00:34:41,300 I don't invest in broadcom or Qualcomm or Western Digital or 721 00:34:41,300 --> 00:34:44,100 Seagate any of these Hardware companies. 722 00:34:44,400 --> 00:34:46,800 I just don't like investing them because I think it's such. 723 00:34:46,900 --> 00:34:50,699 A difficult business with the software company, you can gain 724 00:34:50,699 --> 00:34:53,699 subscriptions. You can gain Customer Loyalty, 725 00:34:53,900 --> 00:34:56,600 you have companies like apple that they have brand loyalty. 726 00:34:56,900 --> 00:34:59,300 They have an enormous amount of subscription income. 727 00:34:59,300 --> 00:35:03,000 Their products are very sticky. You have other software 728 00:35:03,000 --> 00:35:05,000 companies like visa and MasterCard. 729 00:35:05,000 --> 00:35:07,000 A lot of people consider these Financial companies. 730 00:35:07,300 --> 00:35:11,200 I consider them text software companies Visa has been gobbling 731 00:35:11,200 --> 00:35:13,300 up, fintech companies left and right. 732 00:35:13,600 --> 00:35:17,700 They recently bought plaid which is a software company, so, I 733 00:35:17,700 --> 00:35:20,500 like investing in that side of things, the software for it has 734 00:35:20,500 --> 00:35:23,800 more residual, reliable income with Hardware companies. 735 00:35:23,800 --> 00:35:27,000 If they get anything really wrong, they can lose a lot of 736 00:35:27,000 --> 00:35:30,300 business really quickly, like you look at Intel and one of 737 00:35:30,300 --> 00:35:32,900 their biggest customers. Apple said, we're going to make 738 00:35:32,900 --> 00:35:35,300 our own silicon so we don't need you anymore for that. 739 00:35:35,600 --> 00:35:37,700 An intelligence goes. Okay, we can't do really 740 00:35:37,700 --> 00:35:40,800 anything about it. So I don't plan on investing in 741 00:35:40,800 --> 00:35:42,800 until. I'm not saying that it's a bad 742 00:35:42,800 --> 00:35:44,800 investment. It might go up in price quite a 743 00:35:44,808 --> 00:35:47,600 bit after this video. I'm not saying that it won't. 744 00:35:47,900 --> 00:35:50,300 I just don't like to invest in Hardware companies. 745 00:35:50,600 --> 00:35:53,500 It's not an industry that I think is easy to invest in and 746 00:35:53,500 --> 00:35:55,700 it's not an industry. I understand really well. 747 00:35:56,400 --> 00:35:57,800 All right. Well with that question I'm 748 00:35:57,800 --> 00:36:00,500 going to end this episode there. I appreciate everybody that 749 00:36:00,700 --> 00:36:02,900 likes the video, subscribe and share it with friends. 750 00:36:02,900 --> 00:36:06,100 It helps out the YouTube algorithm that mysterious 751 00:36:06,100 --> 00:36:07,700 algorithm. So I appreciate everybody that 752 00:36:07,700 --> 00:36:10,300 does that and I will talk with you guys next time.