Money Rehab with Nicole Lapin - Which Stocks Investor Josh Brown Is Bullish and Bearish On

Episode Date: September 6, 2024

In the second part of Nicole and Josh's conversation, they play a lightning round game of Bullish and Bearish, where Josh shares which buzzy stocks he believes in — and doesn't. But first, Nicole and Josh talk about their strategy to weather, and even root for, market corrections. To find Josh's awesome new book, "You Weren't Supposed to See That," click here: https://www.downtownjoshbrown.com/p/dont-tell-business-isnt-personal All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Public Investing, Inc., member FINRA & SIPC. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Brokerage services for alternative assets are offered by Dalmore Group, LLC, member FINRA & SIPC. Brokerage services for treasury accounts offering 6-month T-Bills are offered by Jiko Securities, Inc., member FINRA & SIPC. Banking services are offered by Jiko Bank, a division of Mid-Central National Bank. Securities investments: Not FDIC Insured; No Bank Guarantee; May Lose Value.  Brokerage services for Regulation A securities are offered through Dalmore Group, LLC, member FINRA & SIPC. Risks at public.com/disclosures/alts-risk-and-conflict-of-interest-disclosure See public.com/#disclosures-main for more information.

I love hosting on Airbnb. It's a great way to bring in some extra cash. But I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your reservations, messaging your guests, giving support at the property, or even create your listing for you. I always want to

line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble, so I don't end up making time to make my house look guest-friendly. I guess that's the best way to put it. But I'm matching with a co-host so I can still make that extra cash while also making it easy on myself. Find a co-host at airbnb.com slash host. One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a Chime checking account with features like no

maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime feels like progress. Banking services and debit card provided by the Bancorp Bank N.A. or Stride Bank N.A.

Members FDIC. SpotMe eligibility requirements and overdraft limits apply. Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Yesterday, you heard the first part of my conversation with Josh Brown, who runs Ritholtz Wealth Management and is one of my favorite investors out there. If you missed that conversation, I would really recommend going back and listening to it because his take on what's happening in the markets right now and what he thinks the Fed will do actually made me tweak

some of my own investing strategy for the short term. So it is a really helpful conversation. Please add it to your queue. But today you're going to hear about what stocks Josh has picked or passed on and Warren Buffett's latest moves decoded. Here's part two. In your new book, you weren't supposed to see that, which is awesome, by the way. I have a copy of it. Can I hold it up? Yeah, of course. So this is the book. It's so pretty. Yeah. Great. Yeah. The logo is the warning label. Parental advisory. Wasn't this on all of your first CDs that you bought? Am I aging us? Am I dating us? Look, the idea behind the book is I did the reformed broker blog for 15 years. I wrote

about the markets almost daily. And I was writing during some of the most calamitous times that any of us have ever seen. I was writing during Madoff. I was writing during Lehman. I was writing during the TARP vote and the recovery in 2009 and the gold rally of 2010 and the European crisis in 2011, 2012 and the downgrade of the US Treasury, and the Facebook IPO. I have been the person chronicling all of this, COVID, the lockdowns, the reopen, LOL. It's me. I'm the person. So I said, what are the most important things that I learned from being in the moment, doing these things, being live at a lot of these events, knowing the people involved behind the scenes, like what can I bring to the table that the

average investor or the professional investor will be like, oh, wow, I never thought of it that way. So we picked some of these eras. It's like my Taylor Swift eras thing, but we picked some of these moments. We went back into what I was saying. And then I brought these things up into the present. Here was the aftermath of that. And here's what I learned. So I had a lot of fun revisiting and doing the book. And I recorded an audio version too. So I know there's a podcast for people that would prefer to listen rather than read. What would you do if I told you you could have 20 more hours of this voice? Don't tempt me with a good time. But anyway, that's the book.

Mazel Tov. It's amazing. And in the book you do a great job going through the exact steps that you take during market corrections like the one we saw. Can you walk us through what that is for you? Yeah. So this last one, there was like no time because this lasted like 24 hours. But I'm glad you

brought that up. One of the chapters is my playbook for a run in the mill market correction. And I say run in the mill with a little bit of ironic emphasis because when you're going through a market correction, you never think it's run in the mill. You always think it's like, oh my God, this is weird. This is wrong. This is like the precursor or something much worse. Of course, it's human nature. I do too. So one of the things that I've done, and I need these kinds of psychological tricks. Some people

don't. I do. One of the things that I've implemented, and somebody taught me this a million years ago, I like to make a list of stocks that I've always felt I missed out on. And I always wished I owned, always wished I had in my portfolio, but I just, I say, man, I missed that. So everybody could think of some stocks right now that, look at what Netflix, Netflix has just gone from 100 to 700 in the last three years. Luke Gromen, Think about how many people are like, oh my God, it was so obvious. I pay Netflix $20 a month. So does everyone else. They never will stop. How did they not buy that stock at 120? Okay. So come up with a list of those,

five, 10, maybe it's Berkshire Hathaway. How do I not own this? Maybe it's Nvidia. Hathaway? How do I not own this? Maybe it's Nvidia. And when we're in one of those corrections, what I want you to do is put in a buy limit order on those stocks. And you can be scientific with it. You can look at prices based on a certain valuation, or you could say, where was this trading three years ago? Or you can say, where is the 200-day moving average? But come up with an absurd price for those stocks where you would never expect to see it again, like within reason. You're not going to buy Apple at a dollar, no offense. And if you can, we have bigger problems. But come up with- Yeah, but say to yourself, you know what? If this thing falls 20%, I'm buying it.

You need to put those orders in to your brokerage app, whether it's Schwab, Fidelity, Robinhood, Public, whatever, with a GTC tag, good till canceled. That's right. So basically, and some firms will time you out. Like some firms, it'll be 90 days and then it automatically goes away. But if you have a buy limit on, let's take Netflix. If you say, I don't give a shit what's going on. If that stock gets to 550, I want in. Okay. Buy limit at 550 GTC. And then a weird thing happens. As the market's selling off, And then a weird thing happens. As the market's selling off, you start saying to yourself, ooh, I might actually end up with Netflix. Like, right? You almost start to root for the market to fall.

It's weird because the rest of your portfolio is getting hammered. But you're focused on this one trade that you want to see happen. And I swear to God, it's so weird. It will absolutely get you through that moment without doing anything panicky. It's so funny because I did this. I only did this recently, but I did it before I read it in your book. And that's how I knew the market was freaking out on Monday and that Monday a few weeks ago, because I put these buy limit orders in for I think it was Netflix, Amazon, Nvidia, like some tech shit that I just missed out on, like at lower prices. And then I just started getting alerts from my Schwab

that they were put through. And I was like, what's happening? That's how I knew. Nicole, Nicole, great minds. I know, right? I didn't even realize that that was your whole jam. Good till counseled by limit orders. My beef with those are, and I've been using this strategy before I even knew you wrote about it, is that you have to have this cash in your account for when it's executed. So that cash can't be used for anything else. So the question is, is it better to keep that cash tied up? Let's say you have a thousand bucks and you're like, okay, I'm putting in these, I missed out on Netflix, GTC buy limit orders, and maybe I'll get it on the cheap. Maybe I'll

get it for 600 bucks or whatever. But would that 600 bucks be better used buying S&P 500 index funds? Yeah, I think that's a really great point, Nicole. I think what people should be doing is segmenting their money. And if you're doing things opportunistically in individual stocks, I'm going to go ahead and assume that you've already got the baseline of your core portfolio set up. You're fully invested. You're mostly index funds. There's an asset allocation. There's an annual rebalance. And that's not what I'm talking about. So this is something else. This is a brokerage account. And this is really only for people that have gotten to the level of savings and have the interest to watch markets and know individual stocks.

Nobody needs to do what we're talking about. This is really more a trick for people that they are following the market, they are actively investing, and this is money that is separate from their 401k, their IRA, and the stuff that they've largely automated and with good reason. So I think it's a really important distinction. I'm glad you brought it up. This is not what people should be doing with their first $2,000 in the market. That's really something that you want to be much less active and much more diversified with. So this is fun money. And this is like a psychological strategy for those. Well, it's fun if it works. It has the potential to be fun.

And yeah, if it doesn't, you're missing out on some opportunity costs that you could have put your money into something else, but fine. But basically you're doing this as someone who is heavily invested in the basics, has your version of all weather portfolio. I don't know if I can say that. I don't know if Dalio is like trademark that or whatever, but whatever your rock solid portfolio strategy is, this is in addition to that. So you don't go cuckoo crazy when the financial media does. For people who are substantially invested via index funds and they've got their asset allocation, they've got other money and they use it for the stock market and they're paying attention.

For those people, this is a great trick to make sure you don't lose sight of the fact that you're in this for the long term. And it's a way to not fall into despair while the market is correcting 5%, 10%, 15%, 20%, but to actually give yourself a useful distraction. And if this fits with your persona and you need that distraction, it works really well. And before you know it, the correction will have passed. Hopefully, it's not a full-blown bear market. Maybe you bought some new stocks.

Maybe you didn't. But the important thing is, you didn't allow the emotions of the day to jar you out of your longer term portfolio, which of course, we don't want you to mess with during a correction at all. Glad you said that. You also say in your new book that your first rule of corrections is to quote, shut the fuck up. Yeah. Honestly, it might be too much talking, quote, shut the fuck up. Yeah. Honestly, it might be too much talking. Not me, but everyone else.

One of the issues with it's not look, social media and the connectedness of the Internet and everybody having a voice. OK, it sounds great in theory and practice. It's a nightmare. A lot of people should be just talking less in general in bull markets and bear markets. But in a correction, I really don't want you, for your own benefit, you like everybody, I really don't want you engaging in pessimism and negative loser talk and doing woe is me and scaring other people and letting your mood about what's happening in your account affect others. Control yourself. Act like an adult. If you look at the history of stock

market corrections, number one, we get a 10% drawdown almost every year, like clockwork. We get something worse than that every three years. And there's no schedule. So you can go three years with no real volatility, and then you could have the next three years be some of the most volatile years of all time. No one's going to tell you in advance, and no one's going to ring the all clear bell when it ends. So what you shouldn't be doing in those moments is infecting others with your negativity and trying to scare people out of their investments. And I think if you were refrained from that kind of thing, you're probably better off for your own good. So I want you to comport yourself. It's a really great word. The

British use that word. The Americans don't use it enough. Probably explains a lot about the difference between our two cultures, right? Comport yourself. Pick yourself up off the ground. Bust yourself off and get constructive. Okay, we're in a bear market. Now what? The right answer is probably not spewing bullshit all over Twitter. That's probably should not be in your top 10 things of what you should be doing right now. Yes, you can yell bollocks on your own time. By the way, when I was at CNBC and we had a control room in London, I said bollocks on the air. I didn't realize that it was really bad across the really, really bad. They were not stoked about it. I don't know.

They don't, I guess they have like their equivalent of the FTC, but they were not stoked about it. Look, there's a bear market once every seven years. There's a crash once every 12 years. And it always, always recovers. Always. So far. So far. Yeah.

Yeah. And if it doesn't, again, we have, we have bigger zombie apocalypse issues to worry about than what's happening with Apple stock. But the shut the fuck up idea is generally something I agree with. I don't think that anyone should be Debbie Downer or Negative Nancy or whatever else, usually anytime, but especially not during a correction. However, what about if you're about to retire or you're already retired?

Then you don't have this nice, cushy time horizon. That's a great point. The question is, is it a surprise retirement or is it something that you've been planning for for a long time? And if the answer is the latter, and I hope it is, you're probably not fully exposed to the stock market. Wait, what's a surprise retirement? I don't know.

Wait, I retire tomorrow. Oh my God. That's not going to be the situation for most people. So one of the things that you're doing with your asset allocation as you draw closer to retirement, and if you're working with a financial planner, this will be done on at least an annual basis, is you're reviewing.

What is your cost of living? What are the things that we've been saving for? What do they cost now? What will they cost in five years, in 10 years? And this is a little bit of a different environment than what we were in for 15 years. It used to be, you basically had no choice, but to be very overweight equities, which by the way, worked out well because there was no return whatsoever in bonds. In fact, if inflation was 2% and you were earning 1% in a 10-year treasury, you were actually losing money every year. So nominally, you were earning 1%, but in reality, in inflation-adjusted terms, you were losing 1% a year. So bonds weren't really a serious option

for people, treasury bonds. That's not the case right now. And I know we're going to have a Fed rate cut in September, and we'll probably have some more after that. But my God, you are getting paid on both sides of a 60-40 portfolio today. And so if you're close to retirement, you do not need as much equity risk as what you might've needed 10 years ago. So the point of the portfolio, let's not lose sight of why we invest. We know one thing for certain, things are going to cost a lot more in two decades than they're going to cost today. Here's another thing we know. We don't know this for every single individual person, but we know this for the populace at large. People are living longer and will spend more time not working within their lifespan than any generation prior.

So the actuarial tables are pretty clear about this. If you make it to 65 in the United States, you're a female. I think you have a one in three shot of making it to 95. You could conceivably have three full decades without an income. So you have to take risk. The question is, when do you want the risk, now or later? You obviously want it now. You want it sooner. You still need to shut the fuck up. Even if you are, you ask me, what happens to somebody that's in retirement? You still need to shut the fuck up and stay invested because we don't know what your lifespan is going to be, but we definitely don't

want to run out of money. We would rather tolerate volatility today than lack of funds tomorrow. This is obvious, obvious stuff. So one of the things financial planners do very well is I think they give clients a sense of different scenarios and they look at things like lifespan, medical history of a family, and they look at inflation rates and they look at different scenarios. Where might you retire to? Do we think it's the mountains and the lakes? Do we think it's the beach? Do we think it's you're staying right where you are with a lot more European vacations?

What is the cost of these things? What are we willing to sacrifice if we were to accept lower risk and lower returns in the portfolio? Oh, we're not willing to sacrifice? Okay. Well, then here is the volatility you're going to have to live with, with a 60-40, 70-30 equity to bond mix. You got to make these decisions with a planner, with an advisor. And this is the nature of the work that we do. But either way, talking, loser talk, do. But either way, talking loser talk in a moment that's scary and anxious and nerve wracking,

it might feel good for a minute, but it's definitely not going to change the reality around you and it ain't going to help. So we try to stay positive. There's not a time or a place for loser talk. I don't, that's not how I roll. I'm not into it. In your book, you also say, though, that swinging to cash is equally crazy. Why? I mean, Buffett just sold a lot recently. Apple, Bank of America. Do you think he's nuts? No. When we talk about the things that Buffett is doing, let's be very clear. He's running an insurance company. The insurance company has liabilities. He's doing what's called asset liability matching. The assets are cash. He's not a mutual fund manager. It's definitely not his own personal money.

Cash coming in in the form of Geico car insurance premiums people are literally sending their premiums to the insurance subsidiaries at Berkshire Berkshire's corporate Treasury is sweeping up that cash and investing it a lot of it is in T bills they are the largest holder of T bills in the world believe they currently hold more T bills thanills than the Federal Reserve. It's a fun fact for you as of last month. But they're also one of the largest holders of stocks. And what Berkshire is doing with its stock, bonds, and cash have nothing to do with what 99.99% of people are doing with their own retirement.

This is not Warren Buffett's 401k. He's not expressing a market view every time he sells or buys a stock. He's not making a macro call. It's a function of matching the future liabilities of the insurance company with the current assets on their balance sheet today. And every insurance company does this. Berkshire just does it better than anyone, more colorfully, and writes really fun letters. But you are not an insurance company, Nicole. Neither am I. The letters are fun. He's always fun. And they make great headlines because he's tax prepping. He's probably also retirement planning. But the fear when people see those headlines is that he's recession prepping. So do you think that part is not true?

CEO, but he wrote the letter. And that's 1963, maybe I want to say. So it's, I don't know, it's 61 years ago. He has never, ever made a recession call. He doesn't believe in people that do. And he certainly doesn't use his portfolio to express an economic forecast. It is not the way that Warren Buffett invests. He's focused on the investments themselves and whether or not he's paying a fair price relative to the fundamentals of those investments. And of course, when markets are extremely expensive, he will find less things to buy. And it is true that he has had trouble putting a lot of cash to work when he can get 5% risk-free in six-month T-bills. So the hurdle is 5%. The hurdle is not zero anymore. So it's hard. He has to say, is this investment better or worse, given the amount of

potential risk, than the 5% I can earn for no risk? And for the most part, the answer is no, which is why he's building up cash. The other thing that they'll do, but that's not a recession call, I think is what I'm trying to say. And by the way, he owns a railroad. Can you think of a more cyclical business that is susceptible to recession than a railroad? Probably not. He's been a huge shareholder. At one point, he was the largest shareholder in every airline up until the pandemic. And then he was forced to sell so that they could get government loans to stay in business. He's taking a railroad, though. No, but like railroad for. He owns Burlington, Burlington, northern Santa Fe. It's the it's

the second largest railroad in the country. That's So if he thinks a recession is coming or not, he doesn't sell the railroad, right? No, Warren B. doesn't do loser talk. That's right. And he certainly does not consider himself to be a capable economic forecaster. His partner, Charlie Munger, RIP, would laugh at people who called recessions or called for this S&P price target or that. They don't operate on that basis. They don't. They're both really jolly dudes. Last question on Berkshire, they just hit a trillion dollar valuation. If you could boil down their success to one factor, what would you say? Probably patience and temperament. those two things go hand in hand.

One of my favorite Warren Buffett quotes is that this has nothing to do with being smart. Basically said that IQ is not the thing. Everybody on Wall Street is smart. So this is not a game where the guy with 130 IQ beats the guy with 100 IQ. This is about temperament and what you do in different market environments and how you behave and how you act. I don't think that anyone should expect this of themselves to run into a burning building with your wallet open. That's not human nature, but having the right temperament is really the reason why they have investments since the 1960s, like American Express and Coca-Cola and things that have compounded at absurd rates. And some of the wholly owned insurance businesses, they've

been able to do that while others haven't. So it's patience and temperament are probably the two most important things here. It's not to take away from their intelligence or their timing or their good fortune or all of these other elements that are part of the stew, but that's the underlying premise is to be patient and to be temperate and not to freak out and not to do extreme things. And they practice what they preach. They write about this and then they act. They walk it like they talk it. And they've been doing that for longer than anyone else. What was the British word?

They comport. They comport like fuck. They're the most comported. If you go back and read their letters from 2008 and 2011 and 1987 and all these like tremendously volatile periods of time, they remain hella comported like throughout those periods. It really doesn't change. And that's a testament to like this supernatural ability they have. But I think it should be inspiring to the people listening to us that they can practice a version of that and they could be more like the greatest of all time. Hella comported. You want to play a game?

I always want to play games. Hold on to your wallets. Money Rehab will be right back. I love hosting on Airbnb. It's a great way to bring in some extra cash. But I totally get it that it might sound overwhelming to start or even too complicated if, say, you want to put your summer home in Maine on Airbnb, but you live full time in San Francisco and you can't go to Maine every time you need to change sheets for your guests or something like that. If thoughts like these have been holding you back, I have great news for you. If thoughts like these have been holding you back, I have great news for you. Airbnb has launched a co-host network, which is a network of high-quality local co-hosts with Airbnb experience that can take care of your home and your guests. Co-hosts can do what you don't have time for, like managing your reservations, messaging your guests, giving support at the property, or even create your listing for you.

I always want to line up a reservation for my house when I'm traveling for work, but sometimes I just don't get around to it because getting ready to travel always feels like a scramble, so I don't end up making time to make my house look guest-friendly. I guess that's the best way to put it. But I'm matching with a co-host, so I can still make that extra cash while also making it easy on myself. Find a co-host at airbnb.com slash host. One of the most stressful periods of my life was when I was in credit card debt. I got to a point where I just knew that I had to get it under control for my financial future and also for my mental health. We've all hit a point where we've realized it was time to make some serious money moves. So take control of your finances by using a Chime checking account with features like no maintenance fees, fee-free overdraft up to $200, or getting paid up to two days early with direct deposit. Learn more at Chime.com slash MNN. When you check out

Chime, you'll see that you can overdraft up to $200 with no fees. If you're an OG listener, you know about my infamous $35 overdraft fee that I got from buying a $7 latte and how I am still very fired up about it. If I had Chime back then, that wouldn't even be a story. Make your fall finances a little greener by working toward your financial goals with Chime. Open your account in just two minutes at Chime.com slash MNN. That's Chime.com slash MNN. Chime. Feels like progress. Banking services and debit card provided by the Bank Corp Bank NA or Stride Bank NA. Members FDIC. SpotMe eligibility requirements and overdraft limits apply.

Boosts are available to eligible Chime members enrolled in SpotMe and are subject to monthly limits. Terms and conditions apply. Go to Chime.com slash disclosures for details. And now for some more money rehab. All right. Our game is called Bullish or Bearish. I say a thing and you say whether you're bullish or bearish. Cool?

Let's go. Microsoft. Bullish. Wait, is there a neutral? No. Have to commit. No. Okay.

It's not. No. Bullish. Oracle. Bullish. N to commit. No. Okay. It's not. No. Bullish. Oracle. Bullish. NVIDIA. Bullish. Alphabet.

Very bullish. There's a DOJ inquiry. Should we be bullish? Yeah, well, those will come and go. Meta. Bearish. Wow. I think Meta is making a lot of money in very questionable ways that are going to start to be

questioned and i have personal experience with this i currently have an attorney drafting a cease and desist letter which i'm sure no one at meta will read but they are facilitating day and night stock and crypto frauds allowing people to use my name and likeness all over the platform. And this is happening with a lot of people, not just me, but account impersonations and these WhatsApp chat rooms that people are being lured into. And it's really gross. And we've been reporting these things.

We've been asking our followers to report these things. And nothing happens. It keeps going. There was a new wave of them yesterday, 11 new ads with my picture on it. And we've been telling people like in every platform. So anyway, Meta is allowing this on a global scale. There's an Australian mining magnate who is currently suing them in US jurisdiction for exactly this. And Meta tried to get the lawsuit thrown out and the court said,

no, this is actually going to go forward. And so I think you're going to start to see this availability of anyone to just buy ads on their platform and say anything. I think you're going to start to see that really come under the microscope and some reforms there. They're reporting billions of dollars in profits every quarter, record profits. The reason why is they're under-investing in the safety and privacy of their users. And I know this has been going on for a long time, but it's getting more disgusting and I am not bullish on any platform that allows their users to be abused this way. You still love some Instagram. Yeah, I love the site. I love the service. I just wish they would police it, but they show very

little interest in policing it. And look, I don't know when the rubber is going to meet the road, and this will all of a sudden become like a real problem for them. Again, it's been going on for a long time and they've gotten away with it. But just because they have doesn't mean they always will. So I can't say that I'm bullish on a platform that allows their users to be beaten up like this. QQQ. Bullish. So the NASDAQ 100.

Yeah, bullish. NDAQ. Very bullish. So NASDAQ,. Bullish. So the NASDAQ 100. Yeah, bullish. NDAQ. Very bullish. So NASDAQ, not the index. That's a stock that I own personally. I like the exchange business right now. I think what's coming next, Nicole, for the country is a return to what we do best, which is capital formation. capital formation. We had an epic bubble in junky IPOs and SPACs that culminated with a big crash at the end of 2021. That's about three years ago. I think a lot of people have licked their wounds.

They've taken their losses. They've learned from their mistakes. We need to get back to IPOs and listing young promising companies on our exchanges. And I think that's what's coming next. As weights come down, the environment for underwritings and new listings will become more hospitable. And NASDAQ, NDAQ, which is the publicly traded company that owns the NASDAQ exchange, will be one of the primary beneficiaries in my opinion.

So the potential new Texas stock exchange? The jury's still out. Not 100% sure that they'll be able to attract enough listings to become a viable place, but it would be cool if it worked out. I don't see why New York City should have a physical stranglehold on all listings. If you go back just 30 years ago, we had the Pacific Exchange. We had the Philadelphia Exchange. In New York, there was the Amex and the NYSE, not just the New York and the NASDAQ. So we had regional exchanges. There became more of a desire for liquidity, and so everything started to gravitate toward just a few of them. But I feel like in the internet age and the decentralized age, maybe it's time to unbundle some of the hegemony and allow for some regional stuff to happen. It would be really interesting, and I'm paying attention. I'm watching. Hegemony is a good word.

Yeah. Warner Brothers, you bought it under $8. Yes. I sold it under $8. I sold it in the sevens. They lost the NBA contract. The bet was everyone expects them to lose the NBA contract. What if they somehow keep it? What would that do for the stock? I think the stock probably would have went to 10 or 11, which percentage-wise would have been 20, 30%. Didn't work out that way. Didn't lose money, didn't make money. Wait, you bought it at eight and you sold it at seven? Yeah. So bearish. Well, it doesn't always work. You can't be right about everything, but it wasn't that big of a deal. Apple.

Bullish. I've owned the stock forever. I don't sell it. I think it's just like a must-own part of a core portfolio. The good news for most people, if they own an index fund, they have a lot of Apple. It's almost in every index. It's a Dow stock. It's a NASDAQ 100 stock. It's a dividend payer. It's a buyback story. It's tech. Everyone owns it. It's the Dow stock. It's a NASDAQ 100 stock. It's a dividend payer. It's a buyback story. It's tech. Everyone owns it. It's the most widely held stock in the world with good reason. Uber.

Uber is my biggest personal position of all the stocks that I own. This is the stock I own the most of. I still think it's misunderstood how important being the hub of all mobility, whether it's for meals or people or products or things. And that's really where they are. So you're talking about having demand capacity in every potential vertical. It's already on Uber. So for example, they did a deal with Cruise last week, which is General Motors, autonomous vehicle, autonomous taxi service sort of thing. Where are they going to get users from? Well, they're going to get users by putting their autonomous vehicles on the Uber app. Uber has the demand. It's already there.

So I feel like they are going to sit at the center of this just unbelievable revolution in transportation. And it's really Uber and no one. Lyft is a shell of its former self. And Uber has the drivers, they have the users, and they've got the algorithms that connect these two things profitably. And I think the stock's going much higher. Sweet green. Just bought it. Very new to the story. I love that it's like a hidden robotics play inside of a salad counter. I think if people look at the three stores that they have almost fully automated, and they look at how they understand this concept of the human labor being most of the cost of producing a bowl of salad. And they can clearly draw a line to profits in the future for a company like Sweetgreen,

which effectively can turn some of its highest traffic stores into a one big giant vending machine. They've got a machine that's capable of making 500 salads an hour. And it's a kiosk ordering system. And you basically need somebody there to sweep up the floor. And the technology being so powerful that it might be worth something to other chains that might want to figure out how to automate their stores. Because when you think about quick service, whether it's smoothies or salads or burritos or burgers or pizza, there are a lot of things that really don't require as much human labor as they used to. And Sweetgreen could end up being a vendor of technology to a lot

of these other companies. So it's an interesting story. I don't have a lot of it, but I think it's a good way to get exposure to the robotics theme. Bitcoin. Bullish, but let me qualify the bullish. I don't know anything. Like everybody else, I own some Bitcoin stuff. I'm invested in a few crypto startups. My guess is as good as anyone else's. I have no idea where that's going. I almost own it as a hedge against my own, against my own, like how opinionated I tend to be. This is like the one thing where I'm saying,

you know what? I think it's nonsense, but everyone else seems to disagree. So I'll just own some. And thank God I did that. I bought my first Bitcoin at 3000. And I wrote about it on the reform broker in 2017. And I'm still there. And it's gone up a lot. But I really have no edge on anyone else. I'm just guessing like I think most people are. Starbucks.

Bullish, but I think I missed it. I should have been buying it in the 60s and 70s. And they announced the greatest CEO in the world and I wasn't there. Preston Pyshko 05.00 Trey Lockerbie 05.00 Ryan Nicol who came from Chipotle. Preston Pyshko 05.00 I think they found the perfect person to come in and clean it up, but the stock just went up 25 points. So I might have missed it.

Trey Lockerbie 05.00 So Chipotle, now that they don't have the magic of the CEO. Preston Pyshko 05.00 No position. I don't really like the food i don't like cold food do you it's always not cold food it's ice cold it's cold within two seconds because it's never really hot so whether i like it or not doesn't mean it's a good or a bad investment i forgot where we got how we got here oh bullish or bullish or bearish? Bearish. They also did some automated stuff when Nicole was there. All right, let's move on.

Ooh, automated cold food. Listen, it's not my shit. Like, it's not my thing. All right, fine. Got it. Bearish. Amazon. Both.

I think Amazon has really not gotten enough credit for all of the things they've done to make AWS the fastest growing cloud provider. They've not gotten enough credit for how incredibly efficient delivery has become. And the stock really hasn't done much back to 2020, 2021. It's still in this hangover from the pandemic period. And I think by now it should be above 200. So I'm bullish. I own it. I think it's going higher. The Trade Desk.

Bullish. I think as people learn the story of what Trade Desk has built, and its importance to connected TV, having there be this ad-supported tier on Disney, on Netflix, on all these services, and the Trade Desk's technology connecting the right viewer with the right commercial. It's a two-way market. Everybody wins. The TV viewer gets a relevant commercial, not a waste of time. The streaming platform gets revenue, and the Trade Desk sits in the middle of that transaction. And I think it's one of these things where it's a, it's something other than meta and alphabet. So there's like this advertising oligopoly between basically Instagram, YouTube, and

nobody else can really become like this third competing platform. I think the TV in your home armed with the trade desk is probably the best candidate to become the third big advertising platform. Intel. Barish. Live Nation. Another DOJ story. Bullish. Is DOJ inquiry like a badge of honor? They've already been through this. Are people going to not like live music? No. Are people going to stop going to shows? No.

Is this the company that makes the most money as a result of that activity? Yes. Can you find them? Sure. Can you force them to separate one part of their business or another? It's unlikely. I guess it's possible. But I think ultimately they'll end up paying fines. They'll make some promises. And in the

aftermath of that, people will still want to go to concerts and Live Nation is the best provider to that type of entertainment. McDonald's. Bullish. I don't own it, but technically the stock looks great. And I think there's a reason why. They've gotten very good at adjusting to what the consumer wants at any given time. Right now, the consumer is looking for value. They have pivoted and they are providing value. So it's- Is their food hot? The food's much hotter on average than what you would get from Chipotle.

Fun fact, Chipotle was once owned by McDonald's. Yeah. I know that. Some people might not know that. They spun it out into its own separate average than what you would get from chipotle fun fact chipotle was once owned by mcdonald's yeah i know that some people might not know that they spun it out into its own separate company i think they had to in order for it to really develop into what it became i don't think they could have kept it and had i mean it would have been cold otherwise freezing crowd strike long i've been in the stocks since basically since came public. That's not the game. It's bullish or bearish. Bullish.

CrowdStrike obviously was in the news all summer, not for great reasons, but these things happened. I think we're going to get some sense of how much money they're going to have to pay to customers to make them whole, what the penalties and fines may potentially be and then everyone will move on they are still the best provider of cyber security protection for governments fortune 500 etc importantly this was not like a boeing building a faulty plane there's nothing faulty about the cyber security that crowd strike I mean, they did just tank the economy for a day. Flights got canceled all across the country.

It was a huge issue and it cost people a lot of money. And I think that's reflected in how much the stock went down. The stock was cut in half from a tie. So it's not as though like everyone glossed over it. It was a huge deal, but we saw that already in the stock so now what happens next i know you just bought paypal so why are you bullish there i did i don't know if i'm bullish there i bought it i bought it technically the stock is breaking out it's making a new 52-week high it's been a really long time since we've been able to say that there have been

some developments in the payment space that i think take some of the pressure off of PayPal. This stock has just been absolutely mangled from the pandemic era. So I have a pretty tight stop loss. And if the trade goes against me, I'll be out relatively quickly. But the story here is they have a new CEO. He's been making fundamental improvements to the actual product. And Apple has just announced that they are willing to open up their NFC chip, near field communication chip to other providers of tap to

pay. So right now you can tap your iPhone and it'll default to Apple pay. What if it could default to Venmo? A lot of people would use that. So that's like a potential positive. And if you look at the news flow, they've been signing a lot of deals and a lot of new things, most specifically Fastlane, which is like their product for third-party checkout. They've got some traction there. So there's a lot that could go right. The stock price has been bombed out, but it's more of a trade for me than a long-term investment. All right. Which stock did I miss or what up-and-coming tech stock are you bullish on? Oh, that's an interesting question. I think the one that I would mention, but I would tell people

be very careful. Don't think this is like a blue chip stock. But there's a company called Samsara, which went public in 2021. It came along with all these junky money losing companies, and it got thrown in with them. But it's actually a very successful company that is at the forefront of AI for industrial use. for industrial use. So they have contracts with transportation companies, construction companies, warehouses, all of these types of companies have a lot of equipment, a lot of moving equipment, like forklifts and buses and trucks. All of that equipment is outfitted with sensors and cameras, is outfitted with sensors and cameras, and all of that equipment is ingesting data from its surroundings. Samsara is ingesting that data for these companies, figuring out ways they could use it to improve safety, to improve efficiency, to make sure that all of their equipment is in the right place where it belongs, what are the conditions that the equipment is working in, et cetera. So it's a robotics play. It's an

infrastructure play and it's tech. It sits at the nexus of those three things and it's fairly undiscovered. It's got a small market cap. I would not say it's cheap. I would not say it's low risk. I don't own a ton of it, but it's a really interesting story. I don't think people should run out and buy it, but I think people should maybe try to learn something about it and maybe go through the investor relations page on their site, watch a few presentations.

So that's a story that not a lot of people know about, but I have become fascinated with. All right, so we end our episodes by asking our guests, as you know, for a tip that listeners can take straight to the bank. What's one last investing tip that you'll leave money rehabbers with today? Oh, okay. I like this. This is somewhat self-serving, but hire a financial advisor. It's cool to be independent and it's cool to like be curious and want to learn all about everything but the reality is you only live once and most of your time should not be spent obsessing over every twist and turn in the stock market or what's the highest interest rate i can get on my cash or

blah blah blah blah if you have somebody who's in your corner who is a fiduciary who is certified to do financial planning work and who really cares about you and gets to know your situation and your family. It's an incredible thing. And it's really something that I think people wait until they're in their 50s, 60s, and start really thinking about retirement. But in today's day and age, it should be earlier. You should be making good decisions for yourself, even in an early stage. You probably don't need that much advice in your 20s and your 30s. Maybe you need more encouragement than advice, but whatever. There are people out there willing to work with you. There are technologically driven solutions that make it cost effective for really good advisors

to onboard you regardless of your level of savings. I would highly recommend you investigate that. It may not be for you, but what if it is? It could change your life. Meeting the right person who has great answers for things to do with leasing cars and taking out mortgages and choosing credit cards. If you really meet that person who becomes your financial coach, it's incredible. It gives you a huge advantage. So I know it's self-serving because I run a firm in the advisory space, but honestly, like the modern advisor can really make a huge difference in your life at any stage. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.

Money Rehab's executive producer is Morgan Lavoie. Our researcher is Emily Holmes. Do you need some money rehab? And let's be honest, we all do. So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make. Thank you.