Welcome back, everybody. Thanks for joining and this
episode. I want to talk a little bit less
about news. We're going to put news to the
side for a little bit and I want to talk about my portfolio and
specifically the opportunities that I see that lie ahead with
different Industries and different sectors.
I've been making changes to my portfolio.
I've been selling completely out of some Industries.
I no longer have any oil companies.
This is something that I mentioned a couple weeks back
and I've decided to sell out of it and on the other side.
I've been putting a lot of money into other Industries.
In other sectors, and I want to go over that specifically.
I want to discuss the stock picking checklist.
This is something that I just put together and it's an outline
of my decisions when I'm making these changes, when I'm
deciding, which companies to invest in.
So we're going to be going through the stock picking
checklist specifically, we're going to give the example of
streaming. I think that video streaming is
a misunderstood sector. I don't think that investors
really appreciate the potential growth and the companies that
are aligned to take advantage of That growth.
So we're going to be talking about this in my Holdings.
I have a couple of the top Holdings being streaming.
Companies apple has a streaming service, but they're very small
player in this industry. We have Disney that I think is a
massive player in the streaming industry.
I think they're the second-best aside from Netflix.
And then AT&T I would say is in third place.
So we're going to be going over streaming and talking about
Disney and AT&T. We also have an interview with
the CEO of Warner media that I want to go through.
He talks about Out what he thinks the direction is of HBO
Max what they're trying to accomplish with it, and their
performance compared to Disney plus.
So I think it's a pretty enlightening interview.
We're going to look at this and talk about this industry
overall. And then, of course, I will be
responding to some of your comments and emails at the end
of the episode. So we'll get to that as well.
Okay. Now, first of all, let's jump
into the portfolio. This is my primary account.
It is my passive income portfolio.
And the goal of this is always been to show you investing and
what it really is. And what I mean by that is As I
show you every single week week by week.
What happens with this portfolio?
I don't know. What's going to happen.
Sometimes we lose money. Sometimes we gain money.
I've had episodes where this very portfolio has been in the
red by like ten thousand dollars.
So it's been through good times. It's been through bad times
during March. When we had the real effects of
the coronavirus weigh in on investors.
This was in the red by quite a bit.
But over the past few months, we've made significant gains and
we're back in the green now. In fact in the past 30 days were
up seven. Eight hundred dollars.
So it's been a pretty good month in the past. 90 days are up, 15
thousand dollars. We regained a lot of the losses
in the past 90 days. We went from the red back into
the green. So that's how quickly things can
change. Now, with this portfolio.
I've been making significant changes to it.
And I've been making some adjustments to the way that I
view investing. And the way that I pick
companies to invest in. I think that if you're unwilling
to make any adjustments to the way that you view Investments,
as you learn and experience new things, Things you're not going
to have a good time. Investing.
What I'm trying to do is use the things that I've learned over
the past two years, to try to adjust my portfolio to be a much
stronger portfolio for the future and I want to talk about
that. I sold out of the energy sector.
I have companies that produce energy their utility companies,
but by the energy sector, I mean, I sold out of oil
companies. I held two of them which were
Chevron and ExxonMobil. And the reason that I sold these
companies are part of what I'm going to go over in this
episode. People do not think it was a
good idea for me to sell these companies.
In fact, I received emails where people explain that.
I'm selling them at the wrong time, that they'll appreciate
over the next couple years as the demand for oil goes back up.
So let's go ahead and look at one of those emails as an
example. This one's from Nicholas.
He's from Quebec Canada. He says hi Joseph firstly thank
you for your channel, which helps normal people understand
investment World better and the last episode 107 you read a post
that said oil companies are thing of the past that they will
slowly fade away. Way, I think that in the long
term, it is true. But in the medium term due to
the cut investments in research of new oil fields.
It is very likely that there is a strong Peak because of the
demand that remains strong. And the supply that will have
collapsed. Many companies in this sector
among others in the USA are bankrupt or very close to it.
It's almost certain that within two to three years.
The shares of big oil companies will experience a dramatic rise,
the two companies that you own will come back to the positive
and even give you a good return. Then Might be a good time to
think about selling them but not before taking advantage of their
price recovery. I don't have a crystal ball, but
it seems very premature to get rid of your companies and suffer
a significant loss in the process.
Have a nice day necklace. Okay.
So this is an example of what I'm talking about.
Nicholas here makes very good points.
In fact, I agree with him on everything.
He's saying he's basically saying that right now the price
of oil is so low that it's bankrupting a lot of the smaller
companies, so they're not going to be in business anymore.
And when the price comes back up of oil, the companies will take
the Lion's Share of the profit will be the very big companies,
like Exxon Mobil and Chevron. That's a decent thought process.
That's a decent investing philosophy.
I actually agree with all of that, but I sold these companies
anyways, because of one specific thing that I'm putting more
focus on and that is part of the first line.
He says, in this email. He says, you write a post that
said, oil companies are a thing of the past that they will
slowly fade away. And he says that, I think that
The long term, it is true. That's the part that I'm
focusing on the long term. The reason that I sold out of
oil companies is because of the way that I'm trying to
reposition my portfolio. I'm trying to reposition it for
the long term. And what I want to do to go
through the process of this, I want to go to the stock picking
checklist where I can outline my thought process on this.
The first thing that I'm asking myself, when I'm picking a stock
to invest in is, is it in a growing industry.
This is the first question. An industry is the first thing
that I'm looking at is the industry overall.
A growing industry. You can look at examples of
industries that are not growing oil is one of them energy by oil
is not a growing industry. That doesn't mean the price
won't come up with oil and that those companies will become more
valuable. It means that overall, the
direction that our economy is going, the direction that
countries are trying to go. The way that capital is being
allocated and investing everybody's wanting to move out
of oil. That's just something that's
Inevitably true eventually over time.
Oil is going to be an industry that continually is in decline
because that's the direction that the world is going.
This doesn't mean that Exxon Mobil and Chevron are bad
Investments necessarily you could invest like, Nicholas, put
the money in there. Wait, two or three years in the
price of oil might come up with demand, and he might make money
on those, but I think that's a very difficult way to invest
when you're investing in declining Industries.
Not only do you have to pick the best It's within those
Industries, but you have to have Investments that outperform,
their overall industry as the industries in Decline.
You're picking the companies that are accelerating, that's
very difficult to do. It's almost like trying to swim
upstream. You have everything working
against you. So I don't really want to do
that. Even if Chevron and ExxonMobil
are good Investments there in declining Industries.
And so I don't see them having a lot of the support of having
oil, grow 10. Or 15 times in size over the
next 10 or 20 years. So the first question I'm asking
myself is, is the industry growing if the answer's?
No, then it's unlikely that I'm going to want to invest in that
company. Now we can ask ourselves what
industries are growing, which ones are actually going to get a
lot bigger over the next 10 or 20 years.
I could name a few off the top of my head.
I think that cashless payments is a growing industry.
You have visa and MasterCard that are picking up fintech
companies. I think they're going to benefit
from that. So I own.
Visa and MasterCard in my portfolio, but there's another
industry that I think is massively growing and I don't
think investors appreciate the size of growth that will have
over the next 10 years. That is video streaming video
streaming is a growing industry. A massively, massively growing
industry. It's better than cable TV.
In every single way, every single way.
It's on demand. It's much cheaper for the amount
of content that you get. You can download it to your
device. It's and watch it anytime
offline. You have the, the ability to
watch shows and binge watch them.
You don't have any advertisements with them.
It's more lean, you can take it on multiple devices video.
Streaming is so much better than traditional cable TV, that it's
incredible. There's still people using
traditional cable TV, the fact that there's tens of millions of
people currently viewing it in the old format is really crazy
right now. Video streaming is better,
consumers are using this and this industry is going to be
benefiting from that. Now the question is when you
identify an industry, like video streaming that is growing, you
have to ask yourself. What companies are going to
benefit from this. This is the second point on my
checklist. What companies will benefit if
you look at video streaming and you say well this is a growing
industry. I realize that Joseph, you know,
obviously there's there's millions of people signing up
for these different streaming platforms, but trying to pick
which one's going to be, the winner is going to be very
difficult. Because we have all these
different competitors. We have Amazon with Amazon,
Prime we have apple with Apple TV plus we have Disney plus and
Hulu and YouTube TV, and we even have other companies that are
kind of video streaming but not really like YouTube.
They do, you know, content creators make their own videos,
but that's not the same thing as Netflix.
So we have all these different companies.
The question is, which ones will benefit with video streaming.
I think the in this industry, there's going to be two
companies that will benefit the most Those are Netflix and
Disney. Netflix is the clear leader with
180 million subscribers and it's still growing rapidly.
Disney's in second place with 60 million subscribers.
I think that these two companies are in the best position to take
advantage of this growing industry.
And then in third place, we have HBO with 36 million subscribers.
Two of my biggest Holdings are Disney and AT&T the owns HBO.
Now, the reason that I really am bullish on these companies is
because of their stream. Services.
Now, you might look at these numbers 180 million, 60 million
36 million and then all the other different streaming
competitors. You might say, Joseph, it's good
and all that this industry is growing, but there's already a
lot of people subscribe to these Services.
How much growth are you really expecting?
Isn't it becoming a little bit saturated?
Are you really going to eke out that much more growth with these
type of services. Let's go ahead and take a look
at that. There are about three point.
One, two, three point two billion people that have an
interest. Internet connection devices, to
be able to stream, excluding the countries of China and Russia.
That is the the context that I'm looking at this with compared to
3.1 billion 180 million, 60 million, that is a tiny fraction
of the addressable Market. A tiny fraction.
Now, I'm not saying every single one of these 3.1 billion are
going to sign up for Disney or Netflix, but it goes without
saying that the potential Market here is multiples multiples
because Her than it currently is these companies have tremendous
amounts of opportunity here, and I don't think investors fully
appreciate that. When you look at something like
Netflix with 180 million subscribers investors, have
continually been saying it's overpriced.
They are going to slow down with their subscribers.
They're not slowing down with their subscribers.
They have an enormous Head Start.
I think that Netflix will continue to dominate and
streaming. I think that Disney is uniquely
positioned to be an extremely good value.
Proposition right now because unlike Netflix, Disney is
misunderstood. Everybody understands Netflix.
They say this is a streaming service.
It's one of the most simple brands that exist.
They do one thing and they do it really.
Well. Disney does a lot of different
things. It is a stock that's harder to
look at even though it's a recognizable, brand people have
a harder time doing analysis on the stock, I go and I read
through articles on Seeking Alpha and different places and I
look at the type of analysis they're doing and they're Sickly
just looking at the next three months.
How much money does he's going to lose?
Because of coronavirus. This is such a misunderstood way
of looking at this stock. This company is a streaming
Powerhouse. The leaders of it has said that
streaming is going to be the primary focus of this company.
They have ESP n plus the currently has over 8 million
subscribers. They have Hulu.
The currently has over 30 million subscribers, and then
they have Disney plus that currently has over 60 million.
Fibers. They have multiple streaming
services and Disney plus is one that I think has tremendous
value at $6 a month and the amount of content and the
additional series that they're going to be adding to the
service. The rate of growth has already
been impressive and the subscribers that they've already
gained allow them to push more content onto the service at a
cheaper price per subscriber. So, Disney is the one that I see
the biggest opportunity. It is the most misunderstood
company investors do not Realize that this company is
transitioning from an old capital intensive, High fixed
cost Park and Resort business to now, Aileen Tech production
company streaming company. That's what Disney is right now
and I don't think investors fully realized that the
potential Market is enormous. The industry is growing and will
be multiples bigger than it currently.
Is today in five or ten years, the companies that will benefit
from this are the ones that already have a head start.
If you try to get into the streaming game without having a
head start, you have to have an incredible amount of capital.
You have to be a company that already is massive.
The only ones that can even start to get into this industry
without already having the head start, our companies like apple
and Amazon and they will try to buy their way into it.
The ones that already have the lead have a significant
Advantage because the price per subscriber for their content
becomes cheaper. Think about this.
You buy one Movie for 100 million dollars and you have 180
million subscribers. You're only paying so much per
subscriber for that movie. If you buy one movie that's 100
million dollars, but you have five subscribers.
You just paid twenty million dollars per subscriber for that
movie. That's the advantage that
Netflix has. They already have the subscriber
base. The advantage that Disney has is
they already have the content, it's all they need to do is go
and sell it. The advantage that comes.
Companies like apple and Amazon have is, they have money, but
they are so far behind they'll try to push their way into it,
but I don't think that that's a successful strategy.
Is a companies that already have the content or they already have
the subscribers. Those are the ones that are
going to benefit the most and I do think that this industry is a
universally loved industry. Everybody loves entertainment.
So it's not something that goes away.
It's not something that's just this commodity that comes and
goes entertainment. Something that's going to be
around forever and all 3.1 billion people do enjoy
entertainment. Everybody enjoys entertainment.
It's Universal. So I see the industry growing.
I see the companies that will take advantage of it.
What is the third thing that I look at?
The third thing I look at is, is it simple?
I ask myself, is the company. I'm investing in a simple easy
to understand business model. Is that what it is?
If it's a very complex difficult to understand business model.
I probably shouldn't be investing in it.
It what I'm looking for is Simplicity in the business model
with Disney. It does have some other segments
of its business. It has the parks and Resorts,
but overall, they are simplifying, their business
model a lot. They're making it so that they
are just going to be a Powerhouse streaming company.
That's very simple. They produce content to put on
their streaming service that makes it so that they gain
subscribers those additional subscribers fund additional
content and that Circle just goes in circles.
Over and over again, more content, more subscribers, more
content, more subscribers. And when you gain more
subscribers and makes the additional content cheaper,
that's exactly what Netflix has been doing.
They have a clear lead in this, but I think Disney will be a
good Contender. So I look at the business model.
It's very simple. When I look at companies that
I've done well with historically, they likewise have
been basically, simple companies.
Apple, I think is relatively simple.
You just look at the products. They sell and you go.
Well, people like these products and services.
And they're probably going to be around in the future.
It's a growing industry. Simple investment, MasterCard,
and Visa. There's less cash in the world.
It continues to go into decline, more people are using cashless
forms of payment. They're paying with credit
cards. They're paying with phones and
MasterCard. And Visa are companies that will
probably take advantage of that because all they do, is they
ensure payments. That's all they do.
They process payments, Microsoft, likewise a company
that's very simple Office Products that people use to
communicate at work. Very simple company and
consumers. All of these are very obvious
household names that everybody uses almost on a daily basis.
We have Disney which I already described I think is a simple
business model Pepsi makes drinks and snacks.
Costco has one of the most boring easy to understand
business models. They build these warehouses
where they sell stuff, and they have a subscription.
That's it. Then we have Comcast Home,
Depot, Target and Nike all household names.
I'm in the green on every single one of these Holdings.
So so the places that I've made the most money have been
following this advice. It's been investing in
industries that are growing. It's been trying to find the
companies that will take advantage of that growth.
The most the companies that are in the best position, and then
it's companies that have simple business models.
The ones that really have an easy-to-understand simple
business model, that reinforces itself, as it continues to go, I
think are the ones that are going to be the biggest
beneficiaries of it. So that's over all the
direction. I've been going with my Flio,
like I've said many times before, I want this portfolio to
be a growing stream of Revenue. I look at it as an additional
stream of Revenue outside of my job.
In order, for these companies to pay dividends to their
shareholders. They need a gain, massive market
share. They need to be well,
established. They need to be in growing
Industries. So that's the direction I'm
going. And I think the more that I do
this, I think that they'll be able to pay shareholders, a lot
of money in the years to come. If you pick the right companies
that gain huge market, share, they'll be able to return.
Turn value to shareholders in the forms of dividends in the
future. So that's what I plan on doing
with the portfolio. You can let me know your
feedback if you're interested in looking at this and seeing the
precise allocations of every single holding.
I'm going to go ahead and update this and put the link in the
description. So it'll say something like my
main portfolio. You click on that link.
It will open it up and then, you can look at every single company
and every single holding. Now on the snow of the streaming
Wars between Netflix Disney and AT&T, or HBO.
Max Lerner media. CEO, Jason kilar did an
interview with CNBC and he was asked, directly a couple.
I think pretty tough questions. I was actually impressed with
the questions. He was asked, they basically
said, look, we have all these streaming services.
HBO Max is growing seemingly pretty slow.
It's only gained a couple like a million or so subscribers a
month. What you have to say about this
is HBO falling behind in the streaming War.
Keep my Disney is a hundred-year surgically, precise brand with
regards to families. With kids under the ages of
nine, generally speaking. So they did exactly what they
should have done. And kudos to them.
Ours is a very different journey I argue in success.
Art, is a bigger outcome because we are really going after, all
members of the family, and all individuals.
Now. I like Jason's response here.
He's saying kudos to them, Disney has been doing really
well, and just for context with that Disney has been growing at
somewhere around five million subscribers a month.
While HBO, Max has been growing got like, 1 million subscribers
a month. So Disney has been crushing them
and growth and I know that HBO Max is a higher price point,
right? It's 15 dollars instead of six.
I don't think that matters that much right.
Now. The amount of subscribers is way
more valuable Disney has substantial pricing power.
Once they get 100 million, 200 million, 300, 400 million
subscribers. They will be able to price their
service up and up and up Netflix showed that they can do that.
They originally started at like seven dollars a month and now
they're twelve dollars a month. So You can do the exact same
thing. The amount of subscribers is way
more powerful than the current price that subscribers are
paying. So he recognizes that Disney has
been crushing them with the amount of subscriber growth.
But he says that Disney is a surgically precise brand by
that. He means they are
family-oriented content. You're not going to find
gratuitous violence and nudity and profane language on Disney.
Plus. That works to Disney's
Advantage. Because parents can say, look
here is the catalog pick whatever you want kids.
You don't have to worry about them.
I'm stumbling their way into a series.
You don't want them to watch. So, Disney has executed with
their brand extremely well, but he says it the ultimate outcome
is much bigger with HBO because they have broader a pill.
They have shows that appeal to more people.
He continues on referring to Disney as a surgically precise
service. I think he's almost trying to
pigeonhole Disney and to being just this service for children.
Ours is a very different Journey.
I'd argue in success. Art is a bigger outcome because
we are really going out. After all, members of the
family, and all individuals, and so the opportunity is bigger,
but it does mean that our journey is going to be different
because we don't have a hundred year, surgically precise brand
around families, specifically with kids under the age of nine.
So he says that Disney plus is more family-oriented content,
especially children. The target age being nine is
what he says. I definitely don't agree with
that. I think that Disney Plus for
sure. Is more family friendly, but
they also have shows like the Mandalorian and that was a show
that had broad appeal across every age demographic.
I think that they'll have Mandalorian season 2, they'll
have an Obi-Wan Kenobi series. They have a ton of Marvel
spin-offs that people of all ages.
Usually enjoy those shows. When you look at the movies,
they sell the tickets to everybody of every different
age. So Disney, I think has the
advantage of both being family friendly, but also having
content that appeals to a wide range of Ages.
So I think there's significant advantage to Disney their HBO.
Max does have family. Only friendly content.
They have a section on it. That's just for kids and it's
all family friendly, but I think as a brand HBO's known as more
of the mature content nitty-gritty, that is not really
family friendly. So they kind of suffer from the
opposite effect. I think HBO has branded
themselves as not being quite as much for families.
Something that AT&T has done in the past is poorly, executed
their products. They have good products like
HBO, but then they confuse the customer.
They offer HBO now and HBO Go and then they have HBO.
Oh Max, this is something that has caused confusion.
You can even look at Google search as a people asking, what
is even the difference between HBO now and HBO GO like, what
does it even mean? This is what he's responding to.
I think, in hindsight a mistake, which is, we did have a number
of brands in the market that were ultimately confusing, which
is HBO now. And HBO GO, we have sunsetted
those brands in those services. So now we are left with rightly.
So HBO Max and HBO, so, it's a much simpler proposition for
consumers. So he says, Is getting rid of
HBO Go and HBO now, but they still have HBO and HBO Max as
two different things you can sign up for, I wish that they
would follow the lead of other companies have done.
This successfully, Disney has Disney, plus there's no Disney
plus, and then Disney plus Max. There's just one service.
It's very simple and customers Minds.
So, this is something that AT&T continually struggles with is
keeping things, simple making, it easy for customers to
understand, they have good products, but they They, they
really complicate things unnecessarily.
So they're moving in the right direction, getting rid of HBO Go
and HBO now I think is good. But I wish they would just
combine HBO and Max into one product.
That would make it so easy for consumers.
The last thing that he gets asked is what are you doing to
gain an edge over the competitors you have Netflix,
which has the lead you have Disney plus, which is growing
really fast. You have these other services
she mentions peacock as a free streaming service, you know,
there's YouTube. There's all these other
competitors. What is Doing to gain an edge
over all these. Many competitors quality is the
answer. We want people when they think
of HBO Max, when they think of all the things that they can get
from HBO Max, we want people to think that while these stories
there A Cut Above, and that really plays into the Legacy in
the history of HBO quality. That's the biggest distinction
that HBO has over its competitors.
While Netflix has done the shotgun approach, just blasting
content everywhere and hoping that some of its really good.
Some of it, not so, Good, but people find things to watch HBO
is more focused on having less content, but higher quality.
And I definitely don't think that he's lying about that.
Some of the new trailers that they're releasing look
absolutely incredible in terms of their production quality.
Here's one that's a TV series by Ridley.
Scott the HBO Max's releasing. This one's called Raised by
Wolves. I watch this trailer just a
couple days ago and you just have to see it.
First little pig, little pig. This looks trippy, looks kind of
weird. The production quality looks
incredible. I have no clue what's going on
in this trailer. But I'm very much intrigued by
it, if HBO, is going to do this and hire people, like Ridley
Scott, that's done Gladiator. And alien to do TV series on
their platform. I definitely think there's an
audience for this. If they do the strategy of
having the highest quality content, the highest quality
Productions that, you look at HBO and you think of their brand
as just the best content, not focusing on what Netflix is
doing or they have thousands of shows.
Some of them very good, but some of them not so good.
HBO needs to just focus on being the best and I think if they do
that, there's certainly a story there.
I think that's a good strategy to do.
So, we'll see how this plays out but it does seem like Jason is
telling the truth when they're focusing on making their series
the best series. Okay, now moving on from that.
Let's get to some emails. Joseph at Joseph Carlson
show.com is the email address. Josephat Joseph Carlson show.
You can also follow me on Instagram and message me there,
or on Twitter. I checked those as well, the
first ones from Alex Alex has, hey, Joseph.
Would love to get your thoughts on, Simon Property.
Possibly making a deal with Amazon to turn Sears and
JCPenney locations into fulfillment centers.
How do you think it changes the business model?
How does it impact the cash flow?
Would you be a fan of this move? Love the videos and can't wait
for more Alex. Well, Alex, I did read that
news. Basically.
What's going on right now? If you haven't heard, is that
Amazon has been in talks with Simon Property, which was one of
the largest small REITs in the country, they have over.
Hundreds of miles across the u.s.
And Amazon has been talking to them to have the idea of
turning. Some of their JC Penney
locations in Sears locations, the big spots in the mall and to
these Amazon distribution centers.
And the more I read about this, the more it made sense, Amazon
is trying to get quicker deliveries.
That's their goal to get items to you very quickly, same day if
they can. Well, that creates a logistics
problem. Basically, they need to have
distribution centers in the middle of Highly dense.
Areas, and as it turns out malls are in the middle of Highly
dense areas. In fact, they're right dead
center of most of them and they're close to freeways.
So it makes sense to Amazon. Would look at malls and say,
hey, these might turn out. Well, they're struggling to fill
their locations. What if we just rent it out?
One of the Sears and made that like a little mini Distribution
Center. What they would do is they would
look for items that are commonly ordered in that geographic area.
And then they would fill that distribution center with those
commonly ordered items. That way people can get the
things that they want very quickly.
Now. I don't know what's going to
materialize from this. I don't know what Simon
properties going to do, if they're going to make any
agreements. I actually see this as a viable
thing to have happen. I know that in terms of leasing
out the malls, Amazon would probably barter with them to get
very low prices. So they're not going to be
making a ton of money, but more importantly than that, they'll
have their place is filled with tenants that are actually paying
rent. Right now.
Simon properties not collecting rent for A lot of their outlets
in their malls. So just having them filled with
the tenets that has endless Pockets.
That can pay rent would be a win-win for Simon.
They wouldn't be losing money. And that would be good for them
until they can build back up demand and tell her over the
coronavirus. Simon Property needs to fill
these malls with renters that can pay rent.
And Amazon, certainly fits that description.
So, I think it would be a good thing for both of them.
Amazon would get extremely cheap rent and a centralized area that
they can use to distribute products and Property would be
able to survive until demand comes back with malls.
And I think that eventually it will come back.
I've seen locally some models that are doing very well.
If I go by them, the parking lot is completely packed and I've
never viewed malls as just a mall.
I view them. As real estate.
They are real estate locations. They can be used for whatever
whatever they want. They can be used for Amazon
Fulfillment centers. They can be used for business
and Commercial renting, they can be used for restaurants.
I see a lot of malls. Increasingly becoming just this
Hub of restaurants that people go to Central to the city.
So I am still after all this time.
I still have Simon Property in my portfolio.
I just think that there's so many different ways that they
can use the opportunities. I don't plan on selling this
company at a loss because I do think it will retain its value
and I still think that malls are going to be something in the
future people like to get outside, they like to do some
shopping and if they're not doing the same type of shopping,
I think that the malls will evolve they'll fill Centers, to
be more of a kind of Lifestyle experience place, where you can
walk around go to restaurants, see different shows and that
type of thing. So, I think there's still a lot
of opportunity for Miles. I really haven't given up on
them yet. But I do see this deal with
Amazon. Potentially being a good thing
for both of them. Right now.
Dan says, hey Joseph, love the show and I've been listening /
watching for over a year. Now.
I have a couple questions regarding finance, companies.
I see that you really like JP Morgan, but would like to see
what your thoughts are on Aflac. They seem to be undervalued
currently and could have potentially huge upside.
Currently. I have a decent portion of my
portfolio in a small cap bank and would like to diversify this
sector a bit especially with it being down so much and seemingly
under valued as a whole, just looking for, what your opinion
is. Keep up the great work.
Well, Dan Aflac is one of the companies that I actually sold
out of recently. So I no longer hold a flag at my
portfolio. What I did was I just looked
over the company and I was asking myself these questions,
is this company in a Growing industry is the company itself
has potential to grow quite a bit.
I I look at those two questions and a flag has 70% of their
business in Japan, which Japan has a pretty stagnant economy
and a pretty stagnant population.
They really don't have much growth in their population.
And Aflac is an insurance company that relies on more
people to ensure and they have 70% of their business in a
country that has no growth. So that's a huge limiting factor
for a flag. Back.
And then the 30% that they have in other countries are competing
with insurance companies that have significant advantages of
scale over Aflac. So although I don't think it's a
Bad Company 2 own. I think it will do fine in the
future. I just don't see a ton of
potential with it. It's just kind of this company
that will be around, but I see that.
The growth is extremely limited with a flex.
So for that reason, I took the proceeds of the sale and I put
it in j.p. Morgan, which has investment
portions of their bank. They have And take portions of
it. They have a much bigger
opportunity to grow in the future, I believe.
So, that's the reason that I took money out of a flak and I
put it into Bank of America and JP Morgan.
I just see a lot more potential upside but there's a little bit
more risk, I'd say to the banks. So you just have to decide
between the two. We have a question from another
Dan. He says, hi Joseph.
Your show is great. Keep up the good work.
I appreciate that Dan. He says, also, I was wondering
on your opinion, on the Intel stock to me.
It looks like quite Stay strong dividend stock.
However, it could be that I'm missing something kind regards.
Well, then this is a good question.
I have seen Intel as a stock passed around the Discord quite
a bit. Some people discussing investing
in it. I personally probably will not
be investing in Intel for the same reason that I don't invest
in most Hardware tech companies. I see them as very difficult
Investments to get right. Basically, apple is the only
exception to this that I've made.
And the reason why is, because I view apple, as I've said many
times as More of a software company that a hardware company.
I think their phones are great Hardware, but the cohesion with
their hardware and their software is the final product
with Intel. I look at them as just a chip
maker. They are a hardware tech
company. That's all they do is they make
Hardware. So that's not a category.
I really like to invest in the same reason.
I don't invest in broadcom or Qualcomm or Western Digital or
Seagate any of these Hardware companies.
I just don't like investing them because I think it's such.
A difficult business with the software company, you can gain
subscriptions. You can gain Customer Loyalty,
you have companies like apple that they have brand loyalty.
They have an enormous amount of subscription income.
Their products are very sticky. You have other software
companies like visa and MasterCard.
A lot of people consider these Financial companies.
I consider them text software companies Visa has been gobbling
up, fintech companies left and right.
They recently bought plaid which is a software company, so, I
like investing in that side of things, the software for it has
more residual, reliable income with Hardware companies.
If they get anything really wrong, they can lose a lot of
business really quickly, like you look at Intel and one of
their biggest customers. Apple said, we're going to make
our own silicon so we don't need you anymore for that.
An intelligence goes. Okay, we can't do really
anything about it. So I don't plan on investing in
until. I'm not saying that it's a bad
investment. It might go up in price quite a
bit after this video. I'm not saying that it won't.
I just don't like to invest in Hardware companies.
It's not an industry that I think is easy to invest in and
it's not an industry. I understand really well.
All right. Well with that question I'm
going to end this episode there. I appreciate everybody that
likes the video, subscribe and share it with friends.
It helps out the YouTube algorithm that mysterious
algorithm. So I appreciate everybody that
does that and I will talk with you guys next time.