Chit Chat Stocks - China Trouble & Facebook E-Commerce

Episode Date: May 26, 2020

In our last episode before our leave of absence we discuss the Holding foreign Companies Accountable Act (1:30) and Facebook entering the world of e-commerce (8:30). For the Current State of Fintwit (14:30) this week we discussed the idea of an endless work from home environment, and what it means for tech companies. On the 2nd half of the show, as always, we have our Hot Water (19:00) & FMK (25:00). We also have a special Option Kings segment (30:00) where we address the put and call options that we currently hold, and we cap things off discussing the 5 things we've learned since starting Chit Chat Money (35:00).  --- Support this podcast: https://anchor.fm/chit-chat-money/support Learn more about your ad choices. Visit megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome to Chit Chat Money. Today is Tuesday, May 26th. We have no interview today. It is our last show before our break. We're expecting to be back around August, September timeframe. So for anyone that doesn't know, and hopefully the person I'm working for doesn't care that I say this, I'm going and interning for the Motley Fool and Brett is hiking from Mexico to Canada. so yeah because of both of those reasons we just thought it would be best to stop the show for three four months and then come right back to it so we hope that you continue to follow us and we'll let you know when stuff comes back out brett might not have internet um he might be in the woods so uh i'll still probably be on twitter a little bit here and there but this is our last episode until august september time frame yeah are we doing another fundamental analysis show right for thursday is that the last one or are we just going to end it with this i guess we're discussing this yeah i'm thinking this is the last one all right well that's good sounds good to me

we ended with spotify uh for the last fa very you know one close to our heart so if you go listen to that one that one's fun but yeah last one until august or you know yeah yeah and so what is your story for the week it is facebook shops so big news out of palo alto the zuck went on a live stream and announced that they're going to help small businesses easily find customers online through Facebook, Instagram, and all their apps. So it's very interesting development. Okay. And I am talking about the holding foreign companies accountable act. It was all over Twitter this week and basically in the news. And it's sort of targeted at China and we'll talk about that. And then on the second half, well, as always, we have current state of FinTwit. And on

the second half, instead of anecdotal evidence, we're going to go with the five things we've learned since starting the podcast um so we both have our own little list there then as always we have our hot water uh and fuck marry kill let's go all right welcome in i'll kick things off this week the united states senate approved the holding foreign companies accountable act it was a bill um it was approved without any objection still needs to pass through the house of representatives i think it will uh if i'm guessing um but yeah big political analyst here right the end result the end result of this legislation is that non-us companies that fail to meet certain criteria could be barred from trading on u.s stock exchanges that's the big headline that was the news

The act will prohibit companies from being listed on U.S. securities exchanges if the company has failed to comply with the Public Company Accounting Oversight Board's audits for three years in a row. And they're like a purview of the SEC, and it's a group, the Public Company Accounting Oversight Board, and they're basically ensuring that the audits and that the financial statements are correct. And so if you have not been complying with their regulations for three years in a row, you can be removed from the U.S. securities exchanges. The bill would also force public companies to disclose whether they are owned by a foreign government. This is obviously aimed at China, right? Yes, yeah. China and other nations. I mean, there could just other ones that have a history of bad acting, but mainly the most

newsy part of this is definitely the Chinese companies in light of the Luckin Coffee scandal and the other scandals where people are just making up revenue over the past few months here. Yeah. And so the goal is essentially, or the senators that were discussing it were basically saying they have come to America, accessed our capital, and a lot of them are faking revenue or faking some financial statements and but they're getting capital from americans and so they're at the end of the day they have to comply with the same rules and regulations that american companies do it's

not like they are bullying these companies in any way it's not like they have extra audits or any processes they're just yeah this seems fair yeah if you're going to list on you can list in different countries this isn't the only place you can list but if you want to list in new york you have to follow the same rules and comply with the sec gap standards stuff like that it's honestly surprising to me that this like that they don't have to do that already yeah yeah i thought this should have been put into place at the start when i mean i guess things weren't as global back in the day but when the accounting standards came in in the 30s and 40s you would have thought that they would have talked about foreign entities but maybe when globalization picked up in the 80s and

90s they would have talked about that but i mean now is the best time if any you know today is better than tomorrow and as of right now the chinese communist party does not allow the public company accounting oversight board or the pcaob to inspect audits of companies listed in china or hong kong so and do you know if that is a international organization or if that's a u.s organization i believe it's a u.s organization because i it's under the uh under the sec sec so i would guess okay is the sec international i mean no no that's united states so yeah okay but they obviously are looking at a lot of international companies yep financial statements um but china has warned that audit plans will drive companies away from the u.s exchanges which

okay we'll talk about that in a second uh baidu who is sort of the google of china that's what people have called them, has publicly considered delisting from the NASDAQ with their CEO saying, for a good company, there are many choices of destinations for listing, not limited to the US. Okay. So then why did you list in the US? Yeah. I mean, look, yeah, you can list anywhere. I mean, you can list London, you can list Hong Kong, you can list Shanghai, but I mean, you can even list australia if you really wanted to but that i mean the big investors can go invest basically anywhere but if you want to invest in the u.s and all they're saying is you have to tell the truth why would you leave them because if you're leaving that just kind of implies that you

may not be telling the truth right yeah and they're if their thing is like well we don't need the u.s then it's like then don't list here you didn't need to list if you don't need to list here then don't list here like exactly yeah they're not forcing companies to list here but they do want the largest pool of capital in the world which is the united states investors and alibaba has said that they're okay with the audits they see no reason why that shouldn't happen i mean that's the right approach yeah nothing nothing big red flags from alibaba specifically we are both kind of skeptical on their numbers since they're so large and consistently growing but i mean nothing really bad there's no obvious evidence there except for some big

activist investors when they have their ipo and they have all those uh foreign entities they have like 5 000 subsidiaries which are very hard to follow so that's kind of an indicator that there could be some wrongdoing there but there's no obvious evidence is fail is failing to subject yourself to like audits or fair play rules basically submission like uh i don't know i don't know there could be more reasons for someone to do this but i think it's a definite red flag Like doesn't, okay, they threatened to leave after being told, hey, we're just going to check that you're telling the truth. Like that tells you everything you need to know, doesn't it?

Yeah, I wouldn't invest in a company that threatens to leave just off the off chance that you have that big loss where if someone isn't telling the truth, then there's like a, what, you know, huge chance that you have an 80% loss of your capital, which can just be devastating. and what surprises me is that there are like u.s investors out there on twitter or just investors in these companies that are like saying that that's fine that they should be able to delist but it's like don't you like don't you think that that's a tell that they are like all right no don't check our books all right you don't get that chance if yeah we're in agreement on this yeah

i don't know it seems crazy to me but that was announced this week has to pass through the house of representatives um and hopefully it does we both support the bill i guess um but yeah what's your story okay facebook shops so a week ago i think it was probably six days ago because like a day after our last show aired mark zuckerberg announced on a facebook live that they have a new product called facebook shops which will easily easily allow businesses to list their products on facebook instagram all the different stories products they have and then through ads as well so you can you know go buy products through that again here we i asked this last show are we underestimating the zuck as a ceo he seems like he's heading into his prime right now

and they're doing a lot of things that seem very very interesting yeah i'm starting to take the approach of josh wolf mentioned this on some podcasts or maybe it was a real vision interview but it's one of his companies that they invested that lux invested in like sold the facebook and the person that was selling to facebook basically said bill gates was viewed as a tyrant when he started now he's viewed as like the great philanthropist so is it that unrealistic that zuckerberg could be there one day i don't think it is they already have the chan zuckerberg initiative um and like there's sort of this tyrant image of zuckerberg but if he wants to be ambitious and he wants to give you know africans access to the internet and all that stuff like there's no

problem for me there so yeah i think we are we are sort of underestimating him because we view him sort of in a negative light yeah i think that's just the territory of being the ceo or founder of a company when you're in like your early 30s i think you're just gonna be ignorant like if we were starting something like this you know we're if we were in charge of a company of that size it's just bound to be that so once he heads hope you know this is just optimistic but hopefully once he heads into his 40s or late 30s he gets a better world view more bill gates in which would be nice to have someone else like that in the world yeah let's talk more about shops okay so it's not on whatsapp yet but apparently they are coming later with that which would be huge for

international things so the difference between this and what companies have been doing before because you've seen you know ads and stuff like that for products on facebook and instagram that's a lot of what they have is before you had to upload everything separately but now you can upload your entire catalog to facebook or whatever the interface you do to upload it and then it will go everywhere so that seems very nice and very easy for a small business to do in like a day or even half a day, save a lot of people time. As a note, small and medium sized businesses make up the majority of the 8 million advertisers on Facebook. So it seems like the people that are already using the platform would be a user of this. Zuck said that their business model is ads

though. So they're not paying or charging for this. They're letting people do it for free, but they think they will make it up by an increase in ad demand. Do you believe that that can happen? I think they might see the increase in ad demand. Not right now, maybe, but over time, I think this will boost ad demand. Do I think it'll stay free forever? Probably not. And you're going to talk about this transactions part of Facebook. And I think that will play into why it won't be free. Because if they can start to monetize that besides advertisements, why wouldn't they? right so yeah right now the transactions aren't going through facebook so say you see it on instagram you still have to go through the site so one more click over to the small businesses site or yes it couldn't it could be a large business it could be easily be like target or something so completing the transactions whatever that is that's still in beta where everything is enclosed on the facebook platform so you can guess that that will be rolled out asap so that's and

i said that as well that's gonna come out soon some people are using it but it's on a limited basis just because I believe it's a little harder to scale to the billions of users. Initially, though, I think this could help Shopify because it's going to send people to Shopify stores that aren't going to go to Amazon instead because it's going to help people discover more small businesses online, which is probably a good thing. But if Facebook is successful, who do you think the winners and losers are long-term? Because I think initially, it's going to help Etsy and Shopify, but in the long-term, I would be a little nervous that eventually facebook starts encroaching on their turf

yeah it's it's tough for me to see a closed system for facebook where it's super successful and and we talked about this we we had sort of a i forget what it was there's a meeting but we talked about this where there was a pinterest developer on twitter that basically said social commerce doesn't work because you can't just throw a buy button on products that take like mental time to buy and so for me even if i see an ad that's effective like let's say i there's like this 60 shirt or 60 shoes or something like that and i want to buy it for me i'm going to contemplate that decision go to the website and buy it there like i think it's almost better to have shopify come in there and just let this boost ad demand maybe maybe i i don't know i

I think buying directly from Instagram, I guess I don't even use the platform, but I think it could be interesting, but it's not really that hard for it to have someone click over to another website. Right. Okay. Well, current state of FinTwit then. Do you want to go first? Sure.

So I was going to put that Chinese thing. So I guess I have a headline right here. So the headline was, yeah, like we talked about before, China warns audit plans will drive companies from US exchanges. Couldn't have a bigger red flag, but here's another one. I saw a viral tweet. this is one is not serious at all so that every time the rapper little yadi drops an album the market actually sells off and it's pretty direct like a few days after the market sells off next

album is dropping may 29th so beware within the next week or so we're going to see the market tank again guaranteed see that yeah correlation does not equal causality yeah technical analysis at its finest can't see how yeah any of that would be wrong all right any other ones nothing else for fintwit um so permanent work from home was a topic that was discussed a lot on twitter this week and so i don't know if i know these companies said you can either work from home forever or till the end of the year but uh shopify facebook spotify twitter square i know jack dorsey said both for twitter and square they can work remotely forever it it's it there's something that bugs me about that and maybe it's maybe it's at the corporate level it works because your systems

are so automated and like you know you're you're file sharing and basically you're working on your own the whole time anyways but at a startup level when you're innovating when you're growing when small decisions end up making a huge chunk of revenue. I just think it's better to be in the same room. There's definitely positives. Yeah. There's definitely positives. I think the flexibility is just what people realize should have been enabled all along where if someone wants to work from home, maybe for just one day at a time or just randomly, or maybe go into the office three days a week. I think that's great, but permanently working from home for everyone and forcing people to do that, which I don't think anyone is,

is there's probably some downsides there. Yeah, and I put a poll on Twitter that was basically, if you're building a company, would you care if every, like, would you be fine with every single person working remotely? Like, you don't know. And I think it was like 70% or something like that said, no, they'd not be okay with that. Yeah, it depends heavily what business it is.

Yeah, I guess that's fair. The other thing was Facebook said, and at first I didn't think that much of this, facebook said compensation will be altered based on cost of living if if someone decides to work remotely and live somewhere else and so i was like all right whatever that that kind of makes sense but competitive like salaries they're not going to be able to get good employees right no no yeah that does not make sense uh the yeah i think it should all be just on talent like that that doesn't make sense whatsoever like if you've got a high-end developer and he decides he wants to

go work from austin texas and you're like all right well i'm gonna cut your salary in half then what's to stop some the next silicon valley or next big tech company from saying all right we'll pay your current salary go work in texas we don't care yeah i think that's clearly not gonna work all right well that's that's it for uh current state of fin twit for me um do we have anything else before? No, we're going to take the break, right? And then no interview and we'll head right into the second half. Okay. Quick break. Here you go. you all right welcome back we have our hot water we have an option kings um that we have to discuss

so it's been a while update for update for the summer plan for the summer right right and then we have fuck marry kill and then we have the five things we learned since starting the podcast so let's kick things off with hot water i only have two okay i have three it's not a really big week because we try to keep it non-coronavirus related so it's really tough with to find these anymore yeah so the first one that i have here this week nasa scientists detected evidence of a parallel universe where time runs backwards so my question is in this parallel universe what are your three largest holdings that's a good question first off this wasn't that was just a clickbaity headline it technically wasn't true they just found a particle that is not explained by the laws of physics yet

which is in itself exciting but i guess not as news grabbing the three stocks i'd own in a universe where time runs backwards that just means i want to own stocks that go down the most right yeah i i was thinking parallel universe just stocks that you hated the most so i guess stocks yeah that's similar i i don't i mean i guess i don't tesla i don't it's really tough because a lot of the companies that have we're gonna fail are like failing right now and the stocks don't reflect that

because I probably would have said Macy's and JCPenney but they're already beat down a ton maybe I would own Boeing maybe but it seems like they're too big to fail that just it's not gonna happen they're not gonna collapse

it's just the government won't let that happen I'm really struggling here I don't know would you do any based on valuation oh no because who knows like i think shopify is overvalued it's clearly overvalued but it might stay overvalued for the next five years yeah you know what uber uber i think uber is a good one uber and lyft maybe that brings up a good point yeah i don't like either of those business models dan mcmurtry talked about this before which was he said we don't usually short on valuation yeah i think that's a good idea because

the whole markets can remain irrational longer than you can remain solvent a lot of that has to do with valuation but shorting based on sort of game theory and you know companies that you think aren't going to survive or the the industry and the business model that's sort of feels like it would be a more profitable path yeah yeah you don't want to short just purely on valuation if the business is good you want to short when the business is bad and going to get worse okay second hot water this week netflix is in hot water for me because this week they pulled possibly the biggest humble brag pr stunt that i've seen in a long time they they obviously put this out in the public that they are going to ask customers that aren't that active if they'd like

to cancel their accounts nothing materially positive can come from that so it's no i think i think you're completely wrong on this i think it's great i think it's great they want to be the exact opposite of a cable company they want to be the easiest to use they want to make it super easy to hop onto the subscription and hop off this is fantastic this is a great move i'm being serious okay long term yeah i actually do think it is a good move long term but materially not like you can't gain anything from that unless there's a massive boost in accounts immediately because people are like oh they'll just tell me if i'm not using it but i think it's more likely that you're going to get a lot of people that are like oh shit i forgot i was paying this i think people

forget that all netflix cares about is getting users and making it super easy for them that's really all they care about that's why they don't run ads that's why they do shit like this that's all they care about because that's what's worked in the past so yeah either way that was a major humble brag um it was yeah yeah yeah what are your hot waters this week okay the state of washington because they lost hundreds of million dollars hundreds of millions to a nigerian fraud ring because of unemployment claims people have been just i bet it's been the inspection thing has been really low there turns out that the email schemes have finally worked out someone in the washington state offices got caught from that nigerian prince you know it's finally paying

off that's really going to help for them i'm not going to mention who but i know people that directly like their names were directly used in this kind of thing oh people were what do you mean so they these nigerian whatever this nigerian group pretended to be people in washington oh and file for unemployment so yeah it was like it was it didn't really affect them i guess that much not at all yeah you really just have to call in and be like yeah i'm not unemployed but it like how do you how do you not figure this out because there's probably companies out there that weren't publicly firing anyone and they're like man why are this all these unemployed people yeah i don't know it's a whole mess whole mess big waste of money keep going okay tech investors here's a

headline silicon valley is going crazy for clubhouse a social media app with 1500 users that's already worth 100 million dollars they must have a hell of a our arpu what is it i don't know i don't know what it is i've heard seen someone mention it before but seriously 1500 users and 100 million dollar valuation the lifetime value of that customer has to be what five hundred thousand dollars yeah that's just that you said 1500 1500 yeah i don't i didn't bet it i didn't so it might not be true it's just in the headline but it must like isn't it but i've taught i've heard people talk about it so i'm surprised that it's getting this much publicity with 1500 users yeah because it's all vcs yeah we're just going to keep investing in it all right next one okay

last one uh i'm putting the classic question is the market overvalued uh as in hot water because the ratio of growth to value is officially the highest it's ever been outside of 1999 and 2000. Yeah. Well, it's crazy to me that people do not think that that's, they really don't. They just gloss that over now. They really don't think it matters. So now you're going to be in that value crowd, right? Because you are long small cap value now. Yeah. I guess in my Roth IRA, I'm going to buy up my plan is to buy up a good amount of that for my roth ira still just individual stocks in my individual portfolio but yeah roth ira adding a lot of the viov which is small cap value etf let me give you a hypothetical hypothetical hypothetical all right hypothetical growth

outperforms value for the next 10 years again longer value or are you like it depends up on the fight and you're just like i'll just invest in the growth companies i don't know they can go on longer as you can see that the the growth versus value has was worse in 1999 2000 so it can always get worse all right if you look over periods of 30 years i don't know we'll see though who knows i'm not i'm not not nearly an expert on that i have to definitely read up more quick option king segment so we have and we've talked about this before anyone that doesn't know we have this joint portfolio where we basically podcast revenue we buy originally it was speculative weekly options on like earnings weeks but which actually worked surprisingly yeah but we stopped

doing that and we're sort of trying to do more thesis driven options still out way out of the money usually um sort of unrealistic but low priced what do we have what do we currently have as far as options we have two first one is the one we talk about quite a bit the tesla put it is for january 15th 2021 and is 150 and crazily the stock has been i mean doing like really well um I think we bought it when it was around $650,000, $675,000, and it's now up to, what, $800,000 or something. It's been around there for the last few weeks. The put option is up 57% for us, which doesn't make any sense.

It was up a ton when the market was tanking, but that one's crazy. We plan on holding that until what, if it passes $3,000 worth, which would mean that the option contract is worth $30, which is like 10x from here. we would plan on selling it and let if it comes back down below that right yeah so basically if the option goes above 3 000 we're going to let it keep going until 5 000 so if it was worth 50 and we'd sell if it goes above 3 000 comes back down we're just going to sell right where it's at wherever it is um but yeah it's interesting stock the stock is up i want to say like 20

percent since we bought the puts. And it's been three months. Yeah. So time matters a lot. So it's weird. Yeah. Fifty something percent. So it's that's, you know, the options market doesn't always correlate with the stock itself. And then our other one is Stitch Fix. Do you want to talk about how you sort of parceled those out? Yeah. So we timed this one again, got a little lucky. We timed this one really well, bought those in March and we have $30 call, $33 call, $35 dollar call and a 40 dollar call uh we have four of the 40s 233s 335s 230s kind of just random just whatever they were cut they cost uh and you know the 30 one is getting pretty close the stitch fix price is at about 23 so we need a little bit more i mean it's already gotten i don't know we

don't need that much more to get there but it's kind of like it's still pretty far uh but we plan on selling the $30 call if it nets us a 700% gain, which again, these have done very, very well because if it gets up to there, the stock price will probably be around $30, $32 a share, depending on the timing, if it's a little later down the road. And again, I should note that these expire at the same time, January 15th, 2021. So if we do that, that'll cover our cost basis and we'd probably make like 200 on these and then we'd also want to just keep the 33 ones the 35 ones and the 40 ones to see how good they can get because it seems like stitch fix has gotten a lot of momentum and the thesis on them was correct during the spring here they're getting

a little momentum with uh the store closures and you know people having to go online and stuff we'll see what happens during the earnings report but who knows you know we're pretty excited about that one and think if stitch fix does well the upside there is tremendous honestly yeah and this is our chance for our first hundred bagger i'd say and on the 10 cent calls the 40 dollar ones yeah i mean they're up it's so far 17 baggers so and i mean it's it's gonna probably grow faster the closer it gets to 40 so yeah sign up for our newsletter you know right 100 uh for 100 bagger in six months you know i mean yeah let's see jim grant yeah that's pretty impressive no big deal but i i almost think it sets a bad precedent like we walked into the casino and won the lottery the

first time and now we're and we we still haven't sold so it's a little precarious because the options if say a bad earnings reports comes out with stitch fix a lot of that appreciation just go out the window and down to zero so it's very risky and this is no way that we've actually had these return yet it's just on the right path okay with facebook announcing that they are joining the e-commerce space my theme for fuck marry kill this week is e-commerce so facebook shopify and wix wow wix that's interesting i don't know anything about wix's valuation or market cap or really their business model i think it's sort of like wordpress right or maybe different but Is that e-commerce?

Let's try Wayfair. How about that, Wayfair? Okay, well, I'll kill Wayfair. I just don't like it as the business model doesn't seem great. What's the other one, Etsy and Shopify? Shopify and Facebook. Oh, so Shopify, Facebook, Wayfair. Marrying Facebook, way more steady.

Fuck Shopify, I guess, but I really don't like Shopify or Wayfair as an investment. Those valuation numbers are just not great, and Wayfair does not have a good business model. facebook if they continue their success and the you know the government doesn't crack down on them they don't get all these fines i think it's really really undervalued if they perform like the business wise it's it's kind of unreal that they're at some the valuation they used they were valued at like a 16 times ebitda multiple at one point in the last year which is insane for a company growing their revenues at 20 with that type of moat yeah and they i mean they continue

to execute and maybe they'll be getting some cost-cutting benefits from paying the uh remote employees yeah true they're all going to move to southeast asia so they don't have to say that they only have 20 000 a year to be their head of software okay um i guess i i agree with all those i don't like i mean i like the business models i like the business model for shopify i'd probably marry facebook don't know enough about wayfair and then shopify i mean shopify is just valued at like it's all valuation and you know what i saw a thing today motley fool everyone keeps going like well you would have had good returns if you bought amazon in 2001 or whatever and it's like okay when the motley fool bought amazon in 1998 seven like 1997 it was trading at a price to sales

of like 13 or 15 not yeah and it was like a fraction of the size like one percent of the size of of shopify right now oh yeah yeah those comparisons are not apt although if you were early on shopify the valuation was a lot better it's just it's just gotten way too ahead of itself I don't know how people aren't seeing that. There was a tweet from that. It's like Eloise Senator. It's an anonymous account. She's like, what is the Shopify?

Is that like 69 times 2034 earnings or something like that? And she said, if you swap out Microsoft's financials with Shopify's and you discount it back, they're kind of cheap right now or something like that. Yeah, that was a fantastic tweet. All right. um five five things we've learned since starting the podcast got a few sentimental ones a few actual actually helpful tips um so you want to kind of alternate on these yeah sure we just alternate okay first one uh first of all i probably learned the most through interviews

i'd say so everyone kind of wants everyone wants to be able to tell their story and so people are far more receptive to talking than you'd think most of our interviews just came from us to dm investors that we admired so you know don't don't don't be afraid to do that uh people are way more receptive that to that than you'd imagine definitely yeah i'd agree all right my first one is in from now to back then investing is a lot harder than you think initially within the first it takes about a year or two for you to realize oh i can't just read this google article and then be a great investor yeah and there's there is that learning curve that we've talked about where initially you're like oh this is really easy i mean i could outperform like no problem but

then there then it's a steep learning curve because you come back down to earth when you're wrong and at some point you will be wrong yeah or when you just i don't know there's plenty of things that make you realize that yeah um second one for me don't act like you know more than you do um i've been i've done this before but it gets you in kind of a sticky situation you don't want to be you don't want to pretend that you know something you don't so just be curious um and ask questions of people that do especially like if you're on twitter don't talk out of your realm it's i mean it's good to learn but don't act like you know it just be curious and ask questions Yeah, saying I don't know is a really easy way to be courageous and humble.

Yeah. All right. Number two for you. Okay. Two, news outlets are not what you should be using for research. That is just efficient knowledge. CNBC, everyone's watching. You're reading all the same articles. You're not going to get an edge. And I just think that's wasted information for investors. Okay. Yeah. I kind of agree more. I spend way too much time. I used to listen to the noise, watch cnbc yeah don't listen to the noise that's right right um so my third one here we've interviewed a fair amount of business owners and people that have done well or been successful in successful businesses um and so that the one thing i learned is that there's no grand plan at

the start like no one sets out to be the master company like even bezos with amazon i don't think he was starting it and thinking like oh i'm gonna you know we're gonna start aws like they're not thinking about that it's just people are doing something that they like that that customers find valuable and they're solving one problem at a time and over time it turns into a good business so don't when when there's small businesses that have like massive total addressable markets because they plan to like casper they're going to like master the sleep economy like you want businesses that provide value and solve simple things and like one example for us is we interviewed the ex chief revenue officer at twitch a long time ago and there was

no way that they were planning to be bought out by amazon for like a billion dollars that i'm i'm sure they were just building a platform for gamers to watch other gamers or for an audience to watch gamers and they enjoyed what they were doing like it serves value it's simple just look for companies that do that yeah then you can be a yeah great investor right there uh all right my next one if you talk about tesla people are talking about tesla in a negative light people get very very angry yeah it's like the it's like the politics of finance no it's not it's well certain pockets that people obviously know about now but the polarizing effect of politics but for finance yeah but i wouldn't say all politics is polarizing just certain national

parts yeah i mean but if you know the bear versus bull feels like it gets into the same sort of feeling you get when you're on political twitter and it's like democrats versus republicans yeah all right whatever i just i don't agree with that but the it's just for certain parts of that debate it's like the tesla is like the president you know the presidential stuff yeah it's tough to it is definitely a tough topic to talk about and it's something that you gotta like definitely do your research on because well yeah i don't think it's tough to talk about but people you gotta have some thick skin right um my third one here is super cliche but it's like being persistent is actually super valuable so for like the six first six months maybe the first

year of this podcast we were basically talking to ourselves um yeah about like 60 listeners yeah we have a like a decent audience now it's picked up a lot and for i'd say after like the first six months i was kind of like all right maybe we should stop and you said uh most podcasts don't make it past like five months or something like that and after we got past the five six month pump started to put a little more effort into it we started to see that that uh the benefits so yeah yeah and we got better which i think helped as well yeah and maybe uh invest in a mic yeah yeah well yeah definitely helped getting the 150 mics okay what's yours all right fourth one zoom is just infinitely better than skype and it's what you should be using to record remotely

yeah agreed 100 that one's not really investing related but right for me number five the last one is right write a lot i don't do it enough i really only write for the sub stack but it really helps with clarity in terms of your own thoughts even if you like write an article and don't even even if you don't publish it like just write it get your thoughts on paper it helps and especially with your own portfolio because then you can kind of look at your own portfolio and go, hmm, this is something I don't like. This is something I can change

where if you didn't write about it, you might not learn that. So start there, start writing about like your own portfolio and what you're doing and then build out and talk about like the individual businesses and start to do that. I think it helps a lot to write. Yeah, if you don't want to write publicly, that's fine.

You can do it privately. It is very easy to do publicly online. So if you want to do that, But yeah, writing about each company in your portfolio really helps you understand it more because you have to do the research right with clarity, stuff like that. Okay. Last one for you. Okay.

Yeah, this one is not investing related either, but maybe it is. But consistent and reliable output of the show was probably the most important thing because I get mad at other shows that don't do stuff consistently. And I listen to a lot of shows that are reliable. Yeah, for sure. I think we went every Tuesday, Thursday, Sunday for the last year, almost a year and a half now. I think we had maybe one or two weeks where we were off

or it wasn't exactly the same ever since we started the fundamental analysis stuff. Yeah, that definitely helps. If you're starting podcasts, there's plenty of tips for you. just ask people if they want to be on dm them on twitter that helps a lot twitter's like perfect for that um get a decent mic because that helps a ton and then just be consistent with it yeah consistency the best part yeah and and if i guess for investing related the thing i learned about is getting on twitter you don't even have to tweet but i learned a ton and it's also very entertaining so there's funny parts of financial twitter where people make fun of stuff but you can

also interact with the like i can comment on a tweet from jim chanos or cliff asness and they'll actually respond which is amazing like they're two of the goats right there right yeah being being on twitter whether you're just there to read other people like just follow investors that you admire um and you'll find more investors that you admire through twitter and you get to basically copy all their ideas i do recommend putting out your own thoughts because you're going to get feedback at worst you'll learn um and at best people will recognize that you have valuable thoughts and they'll also start to follow you and it's just uh it's definitely it's a big value add i would pay 15 20 bucks a month for it if it was subscription so i saw someone say that it was

someone who wasn't uh forget the the handle but it was they said that they'd pay 100 bucks a month for twitter i think it's that valuable i don't know about 100 but yeah that seems a little much especially with our uh payment abilities but yeah right okay well that's gonna do it then that is our last episode before august slash september um so hopefully well i'll be done by august so if you maybe yeah maybe you might be able to get some interviews in then or something and i might be a little later if you walk faster though you could get yeah yeah yeah that's all i'm gonna be thinking is walking fast so i can get the show back okay um well that is going to do it like follow review um if you're on apple podcast spotify wherever you are um just leave us some

feedback it really helps we aren't financial advisors anything we say or discuss here on chitchat money is not formal advice or recommendation also feel free to give us emails we've been getting a lot of emails the past few weeks from listeners that are saying thank you guys uh that are saying thank you to us and it kind of encourage us encourages us to get more interviews for when we come back and you know just provide more value to them so and show uh take our suggestions for fundamental analysis shows yep and it's chit chat money podcast at gmail.com thank you guys for listening we'll see you in four months

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