Motley Fool Money - David Gardner on Intriguing Stocks and the Fool Foundation

Episode Date: April 1, 2022

The U.S. economy added 1.7 million jobs in the 1st quarter of 2022. Meanwhile, the stock market gave investors a negative quarter for the first time in two years. (0:30) Emily Flippen and Tim Beyers discuss the relative strength of the economy, as well as: - Booking Holdings CEO Glenn Fogel's prediction for summer travel - Baidu being added to the SEC's list of stocks potentially facing delisting - Chewy's struggles in its latest quarter - Brand growth continuing in the hard seltzer market - The latest from Lululemon, FedEx, and Five Below (19:00) David Gardner, co-founder of The Motley Fool, shares advice for investors rattled by recent underperformance in the market, a few Rule Breaker stocks he believes look attractive at their current prices, and the launch of The Motley Fool Foundation. (36:30) Tim and Emily share two stocks on their radar: Jamf Holding and Rover Group. To be part of The Motley Fool Foundation, join us here - www.foolfoundation.org Stocks discussed: BKNG, BIDU, CHWY, LULU, FDX, FIVE, SAM, BUD, Z, TTD, NFLX, AXON, NVDA, JAMF, ROVR Host: Chris Hill Guests: Emily Flippen, Tim Beyers, David Gardner Engineer: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Hi everyone, I'm Charlie Cox. Join us on Disney Plus as we talk with the cast and crew of Marvel Television's Daredevil Born Again. What haven't you gotten to do as Daredevil? Being the Avengers. Charlie and Vincent came to play. I get emotional when I think about it. One of the great finale of any episode we've ever done. We are going to play Truth or Daredevil.

What? Oh, boy. Fantastic. You guys go hard, man. Daredevil Born Again, official podcast Tuesdays, and stream season two of Marvel Television's Daredevil Born Again on Disney Plus. for investors, we'll get you ready for the second quarter with a look at the overall economy and a few stock ideas from David Gardner. Motley Fool Money starts now.

Money. That's why they call it money. The best thing. Global headquarters. This is Motley Fool Money. It's the Motley Full Money Radio show. I'm Chris Hill and I'm joined by Motley Full Senior Analyst Emily Flippen and Tim Byers. Good to see you both. Hey, Chris. Hey, fully caffeinated, ready to go. So, you've got the latest headlines from Wall Street. Motley Fool co-founder, David Gardner, is our guest. As always, we get a couple of stocks on our radar. But we begin with the big macro.

The U.S. economy added 431,000 jobs in March. For the first quarter of the year, that comes to 1.7 million jobs being added, which is a nice counterbalance to the stock market, having its first negative quarter in two years. Emily, we've talked before about stocks falling, particularly with the NASDAQ down 10% year to date, but the underpinnings of the U.S. economy look strong. There's a lot of fear, I think, that both investors and consumers are feeling in this market, and that, as you mentioned, is totally justified. We're coming off some extremely rough months for equity investors, the worst ones since the pandemic. We have reports out today that the yield curve is also inverting, which has historically been a sign of a potential recession for investors.

And we're also fighting things like a war in the Ukraine, like inflation that has grown out of control. And so there's a lot of, I think, just uncertainty and fear in the market today. So it's nice to see a job to report out that is showing that the sky isn't falling, at least not yet. So the best advice, I think, investors and consumers, just as people we can take, is to really not panic in this type of situation. You can be cognizant of the risks that exist out there, and they certainly are out there. But don't overemphasize any one point. For instance, the yield curve inverting, typically a sign of a recession. The good news is that the economic data, all pointing in one direction where the yield curve is reporting in another.

So this is just one of dozens of different economic indicators you can use to gauge the health of the economy. And more importantly, the yield curve inversions don't predict an imminent recession, right? It could be tomorrow, it could be three years from now. now. So don't over-emphasize any of these one points. The worst thing that you as an investor can do is panic and pull money out of the market. Yeah, Tim, I know some people really focus on the yield curve. I prefer to focus on the fact that we just had our 11th straight month of at least 400,000 jobs being added to the economy. Yeah, and it's great. I would say the only caution is it's great that we have more Americans employed. That's a wonderful thing. That's a wonderful thing.

thing. Costs are going up. They're going up across the board. The forecast I'm seeing for inflation, the next inflation report that we get will be 8.2%. That is really high. The grocery bills are higher. Gas is materially higher. Things are good-ish. And so Emily's right. Don't panic, but things are good-ish. So it's a good time to be cautious. And I think it's a good time to be thoughtful. So if you're investing, investing great stocks, be, you know, go in it with your eyes wide open. But I wouldn't say we've turned the corner, but I would say things are looking better. The rise in inflation is not causing a slowdown in leisure travel, at least according to booking holding CEO Glenn Fogle. In an interview this week, Fogel said, quote,

when you have two years of people not traveling the way they want and you have a lot of savings built up in that time period, prices can be really high and people are saying, I don't care, I just want to travel. Tim, if he's right, it probably means good things for travel-related stocks. He might be right. Does that not sound to you like a pull forward though? Because in the same interview, he said the prices are not going down any time soon. So if you want to book your travel, book it now, which was a really interesting way of using economic data to pitch your company and to buy from your company. It was really interesting. Look, he's probably right. February data shows that travel spending was down 6% below 2019 levels. We are back near the pandemic peak

of travel. He's probably right. But again, things are getting more expensive. If things are going to continue to get more expensive from a travel perspective, maybe we're going to see a short-term bump here and things start moderating in the back half of the year. Feels a little bit like a pull forward. I don't think this necessarily Chris gets me sold on booking holdings for the long term, even though I do like that company more than I like. like most others, but I don't think this is one where you have a flashing buy signal on booking or really any travel company. You can add Baidu to the SEC's growing list of Chinese stocks traded in the US that could

be delisted. The SEC now requires that American regulators be able to review three years' worth of financial audits. Emily, Baidu is the dominant search engine in China. If you're a shareholder, How concerned should you be? You should be cautiously concerned, but not overly so. And I say this not as a shareholder of Baidu, but as a shareholder of numerous other Chinese businesses that will be or have been added to this list by the SEC. What I will say to start off is, don't panic if you have a Chinese company like Baidu that is added to this list.

It's not anything that that company did in particular to be added. All Chinese listed businesses will be added to the list whenever they file their annual report reports. the 20F. So Baidu amongst a handful of others released theirs this week, so they were subsequently added to the SEC's list. So this will happen for every Chinese company sooner or later. Now the big question is, okay, now that we're adding to this provisional list, we're saying we're moving forward with delisting Chinese companies that don't allow the PCAOB to have access to their financial statements, what happened to the shareholders. The good news is that it takes about three years to go from being added to the list to actually being delisted. So it

In 2024 is the earliest we'd see any delistings of Chinese businesses. So don't freak out quite yet. And more importantly, look at the relationships and as they develop between China and the US. So I'm a little bit, I would say, cautious about the idea that this is a problem that is going to be resolved. In my opinion, the only way that this gets resolved is if China makes a substantial change in their stance allows the PCAOB to have access to the financial statements of listed

companies. I don't see that happening, even though there are reports out today that apparently the Chinese government is mulling over this possibility. But even if we do get to the point of seeing Chinese companies delisted from the US, US shareholders should be able to transfer their holdings to the Hong Kong shares when that happened. So ensure that any Chinese companies you hold are dual listed both in the US and in Hong Kong. Chewy's loss in the fourth quarter was wider than expected and shares of the online pet products retailer fell more than 15% as a result. Tim Chewy is not a profitable business. The stock is

close to a two-year low. You think this is a buying opportunity? Or is this not the time to be buying unprofitable companies? Well, two things can be true at the same time, Chris. I mean, first thing, no one is going. I mean, I guess you could stop feeding your furry friend, but you're probably not going to. And at the same time, you know, not all unprofitable companies are equal. And I would say, I'll venture a guess here that Emily's going to agree with me on this one. Chewy is a very high quality company here. It may be unprofitable. It may be facing some short-term tailwinds. And let's be clear, supply chain issues are plaguing Chewy. They do import a lot of what they need to sell their own private label product, which

which is important for Chui's growth and their profit margins. So supply chain issues do plague them, but they are investing heavily. They have a leader in Sumit Singh, who is a logistics expert, and that's the guy you want right now in this position. So yeah, things are a little rough right now for Chui, but let's remember that even in the middle of some of what we're seeing from Chui, they still are generating increasing amounts of spending. from their loyal customer base. They're now up to $430 annually per their active customers. That was up a few points year over year. And it's been consistent. They continue to generate more from their existing customers. So, yeah, I really do like Chewy here, Chris.

Emily, you want to make a counterpoint or are you in line with what Tim saying? I'm completely in line with Tim. I think a lot of the challenges that Chewy is facing today are very short term in nature. Go into them with your office. open, but I think if you're investing for the long term, a lot of the issues we're saying today pretty rapidly deteriorate in the future. And I will say, to Tim's point, I am much more likely to let myself starve than this furry creature curled up on my lap. So I can't imagine their demand waning anytime soon. If listeners want to get ready for this next segment, pull on some yoga pants and grab

a heart seltzer. You're not listening to those other shows. You're listening to Motley Fool money. As always, people on the program may have interest in the stocks they talk about and The Motley Fool may have formal recommendations for or against, so don't buy ourselves stocks based solely on what you care. Welcome back to Motley Fool Money. Chris Hill here with Tim Byers and Emily Flippen. Lulu Lemon's fourth quarter profits were higher than Wall Street was expecting. The athletic apparel maker also announced a $1 billion stock buyback plan.

Shares of Lululemon up 14 percent this week, Emily. You can slip on your tights and cozy on up to this stock because Lululemon is really proving that it's much more than just a one-off athleisure brand. It was a really good quarter for them, both in terms of revenue and earnings, both beat expectations. On top of that, the business issued a billion dollar stock repurchase program, which is another way they can return value to shareholders. And then on top of that, they actually raised guidance, right? Issued guidance that was better than expected over the course of the next year as well. So this is surprising to a lot of investors because a lot of the issues that we've talked about previously,

the show, labor costs, inflation, supply chain issues, we're expected to hit LULULUMMIT a bit more heavily. Unlike some of these other retail brands, especially direct to consumer retail brands, because Lulimint has such a premium price point, they're able to eat those increased freight costs, oil costs, those things. They eat them a bit easier than other retailers do. And on top of this, even with these headwinds, Lululemin is releasing a lot of new products, right? They came out with their footwear line recently, which is selling out rapidly because of the excitement for this release, years in the making. We see them venturing into other areas.

We've talked about their mirror push, right? That kind of digital fitness experience, in-house fitness experience. While it hasn't quite lived up in terms of revenue, it does speak to the brand building that Lululemon is reaching towards. So I think when you take the full picture into view, right, when you look at the same store sales, which are up 22 percent in the most recent quarter. All signs are pointing well for Lululemon. Real quick, Emily, are you surprised by the increase in the guidance?

Because we're in an environment where companies are going out of their way to be very cautious with guidance. My hunch is executives at Lululemon really feel like they can deliver because there's no incentive to raise guidance like this unless you can. It's really surprising to see it. But I can say when I looked at the numbers, I could see why. And I think part of their raising and guidance has to do with the, I guess, releasing a bit of the pandemic environment. If you look at their store-based comps, those are up over 30% in the most recent quarter. And despite how much digital traffic Lou Lumin gets, there are still a fair number of sales that are made just through foot traffic into their stores. I think management is betting on that rebounding in the next quarter.

It's hard to imagine FedEx without Fred Smith as CEO. And that's because Fred Smith has been the only CEO since he started the company in 1971. But this week, FedEx announced Smith will step down later this spring. President and Chief Operating Officer Raj Subramanium will take over the corner office. Tim, for all of his success, I still feel like Fred Smith is underrated in part because he basically created this industry. Right. And he is, you know, I'll give you an unusual. piece of trivia here about Fred Smith. He shares something with Elon Musk. Bet you didn't see that one coming. He has appeared as the CEO of his company in a Hollywood

movie in Castaway, right? And Elon Musk appeared as CEO of Tesla in Iron Man 2. So go figure. Fred Smith, Elon Musk separated at birth, but not really. No, I mean, it's been 50 years. It's been roughly 50 years here. So he steps down and he steps down with the company in a very good position, Chris. And I do really like this. Logistics has become a massive business ever since we started to figure out that we were going to need more stuff delivered to us. That's been really good for Amazon, certainly. But it's also been very good for FedEx here.

Let me just give you a quick couple of numbers here, Chris. So, May 2020, FedEx was generating on an annualized basis about $69 billion of revenue. Fast forward to close of the fiscal year of May 2021, $84 billion. Over the trailing 12 months, $92 billion. This is a company that is in a much better position than I thought they would be. And all credit to Fred Smith on this, he's really earned this. And I do like that he's handing the reins to Raj Subramanium. who has been with the company since 1991, Raj has already been essentially by the board,

named CEO-elect. He will continue to be on the board. He'll be president and CEO. He was the chief operating officer. That title is being subsumed. They're not going to fill that position. They're going to let him do the job. And again, he's been with this company since 1991, very well positioned, very solid executive,

been kind of grown up, I would say, at FedEx. So they've got one of their own here. Sad to see Fred go, but I think the succession plan makes sense, Chris. Five below's revenue in the fourth quarter grew by double digits. Profits came in higher than expected, but shares of the discount retailer were all over the place before ending the week basically flat, Emily. It's almost as if Wall Street can't make up its mind about five below. What do you think? Well, Wall Street can't make up its mind if it's evaluating five below over the short term or the long term.

Because if you're looking over the short term, I agree there are some massive challenges to this business. The real problem came out in the guidance over the next quarter, right? For revenue growth of flat to negative 2 percent earnings were also revised downwards. That's why you had that immediate reaction from the market that was like, oh, gosh, things aren't looking great here. Plus we have the fears over all the headwinds that we've already talked about. However, when you look over the long term, things actually look a lot better for five below.

The stames or sales during the holiday season were up nearly 8 percent, and that was on top of last year's 10 percent increase. Total comms are up more than 3 percent. That led to that double digit revenue growth that you just mentioned, Chris. I think management has been really disciplined about their expansion plans, very clear about expectations for demand over the long term. So yes, very challenging over the short term, very promising over the long term. As hot as the hard-seltzer market was in 2020, that's how much it cooled off in 2021.

We saw it in the second half of last year when Boston beer company stopped, felt 25% in a single day after disappointing quarterly results that were due to weak sales of hard seltzer. And yet, more brands are on the way. This week, Mickalob introduced four new types of hard seltzer made with coconut water, Tim. I know that you and I are not really the target demo for this product, but am I wrong in thinking the market is saturated? I mean, this, someone needs to explain to me. Maybe it's just because I'm just get off my lawn guy, but somebody needs to explain to me the allure of these seltzers. You know what this feels like to me, Chris? I'm probably wrong here. Emily's going to tell me I'm wrong.

sure of it, but this feels to me like Coke with coffee. Why do you need that? So, Emily, tell me why I need this. Well, because beer is just gross, Tim, and I'm happy. The world is finally recognizing that beer is no good. If you're going to have a drink into the summer months, you want to crack open, a nice, refreshing seltzer, however you may define that. I don't think this is a bad idea at all. And now it comes with coconut water, so presumably that's more healthy. Kim Byers, Emily Flippin, we'll see you later in the show.

Because there ain't no law. Up next, Motley Fool co-founder, Chief Rule Breaker, David Gardner. So stay right here. You're listening to Motley Fool Money. I'm Chris Hill. David Gardner is the co-founder, co-chairman of the board, and the chief rulebreaker here at the Motley Fool. He joins me now from Washington, D.C.

Thanks for being here. Hey, Chris. So the last year, the last 12th, the last 12th of the last 12th, the last 12th of the last 12th, months, not a great time for gross stocks. You and I have been investing long enough that we have seen downturns before. I'm wondering, though, if you think there's anything different about the last 12 months for gross stocks? Or is this just typical of what we've seen in the past? Sometimes stocks as a group get overheated and they need to come down. I actually don't really use the phrase growth stock, Chris. I've never really liked

value stock, growth stocks. So I, but, but we, we don't really use the phrase growth stock. So I, but, When I think about, you know, world-changing companies, the disruptors, the rule breakers, yes, it has been a real year of underperformance. It is unusual because the stock market, last I looked, was up 20 percentage plus last year for the S&P 500, but I sure wasn't. And so I think that it's worth reflecting that a lot of the companies that were beautifully positioned as digital winners just before COVID, they were doing great, were accelerated with their operations and their products and services, their success through COVID.

They were digital players. And so I think it overheated. And I think that in retrospect, once stocks are trading not just for 10 or 30 times sales, but 50 or 100 times sales, the market's not going to tolerate that for very long. And so I think that type of company specifically, again, we're still looking at a market that's been up over the last year by most indices. if you just look back, you're going to see that my kinds of stocks and the rule breaker service are probably underperform, but I'm okay with that. I mean, I like winning every year, but I recognize

that one year and three, the market itself drops, and certainly at least one year and three, I'm going to underperform here or there. But we overshot so much in 2020 and 2021, a portion of it, that most of us are still way ahead of where we were three or five years ago with this approach. Absolutely. Although, there are a lot of new investors who came into the market when the pandemic hit. What's your advice for newer investors who maybe just started a year or two ago? Maybe they're seeing similar underperformance in some of their rule breaker type stocks. What advice do you have for folks like that? Yeah, well, I want them to feel encouraged. In fact, I dedicated a rule breaker investing

podcast to that just in the middle of last month. It's called Market Got You Down. So if you want to hear me coach you over more like 45 minutes instead of five or 10 minutes, I'm right there. But one of the things I pointed out is you'll often hear really frustrating, I'd say discouraging stats like, you know, Chris, if you had bought the market at that point, it took you 18 years to get back to even. And you'll hear those kinds of stats, especially times now. It doesn't sound great when you're a new investor. But what is always being missed by that kind of analysis is somebody has picked the very best, top-topiest day. And then they're looking and waiting for the industries to get back to that day years later. You and I, I hope, are investing every two weeks,

every month through those 18 years. Let me assure you, you are way, way ahead of where you started after an 18-year period, even if it took the market a while to get back to where it once was. because we're investing all the way through. So what often happens at times of troughs, which we've kind of just lived through for a lot of these stocks, and I realize if you've just started investing, a lot of us have, it hurts to be down 30 or 50%, but you're also now keep buying, as I've said, along with Dory from Finding Nemo,

just keep swimming. You're now buying great companies like the Trade Desk or Zillow at half where they were, or third down from where they were six or 12 months ago. That is great news. These are great companies in it to win it for the long term. You're going to be a winner over the long term, but you have to just keep swimming. It is one of those natural reactions that so many of us had when we started out investing. It's painful to see your stocks go down. And you really have to fight that urge to get out

of the market. And let's face it, there are people who start investing in stocks. They have a bad experience, they leave the market, they never go back when really it's probably the biggest mistake you could make is to just pull out and just say, I'm out of this. Because it's hard to see the long term when in the short time you've been an investor, your stocks are in the red. Yeah, I guess a lot of what helps us is education and knowledge. And I'm not a deeply knowledgeable student of the markets. I'm an English major, but I can tell you this. I know some important stats like the stock market historically has gone up 9 to 10% annualized per year. If you look at that graphically, if you're a visual learner, it looks like lower

left to upper right over any meaningful period of time. So if your period of time has just been that you started in the last 10 months, I feel for you, I haven't enjoyed the last 10 months very much for a lot of my stocks either. Netflix is my biggest holding. It's well down from where it was 10 months ago. With that said, just take it. a look outside of your own reality at reality reality and check it out. Outside of our own echo chambers, you're going to see that the stock market performs over time. You're going to be so grateful that you even got started. In fact, if you're investing for the next 30, 50 years, you probably won't even remember where the Dow was when you got started investing. So I just

think it's so important to realize that there's a tailwind. It's called American capitalism. It's called the stock market. You should be a part owner of it your whole life long. So much of the talk in the financial media, and media in general recently has been around things like inflation and the Federal Reserve raising interest rates. Do things like that ever factor into your investing decision making? Or do you focus solely on the business and the opportunities ahead for a given company? If you're an intellectually curious person, I think so many people live. listening to us right now, so many of our employees at The Fool, we are. We're interested in what's

happening in society. And we also come from a place of humility. I'm not here to say that what happened last time is going to happen this same time, the same way again. I think that there are a lot of Black Swans out there. I certainly wasn't predicting a European war this year. So I don't spend a lot of time trying to prognosticate. What I do try to work on is my mindset and thinking about what really matters. So I've tried to use phrases throughout the course of my life like, I've made a lifetime commitment to the stock market. I hope you. I think you have to, Chris. I think a lot of people who've been around the fool for years have done so. It'd been rewarded for that. And so it helps you look past brief periods in time, financial crises, dot bomb crashes, high inflation in the

70s or in the 20s, and all kinds of different shenanigans that have occurred from Enron right through to luck and coffee. I mean, there are always going to be these kinds of bad stories and bad actors, sometimes not even ill-motivated, just not great at what they were trying to do. And we'll be invested in some of them. But I think, at least for me, I feel great comfort in not worrying too much about what the Fed's going to do, making guesses about the Fed. I guess I could have driven myself insane over the 55 years of my life being a Fed watcher, a Fed prognosticator. I haven't. I'm much more focused on the companies, the products and services, the real players out there in the field who are every day serving up something that I want to buy, whether it's a Tesla

or why not, Chris, men's yoga pants from Lulu Lemon. I mean, all of these are products, not just that are great, best in class, and that's where I try to stay focused, but these are companies. They're outstanding companies that you can become part owner of through the miracle of the stock market. So I just stay so much more focused, I guess, on the company. companies themselves and what they're doing, I don't worry too much about macro events. It's going to be good, it's going to be bad, different macro times, but you know what? We're not about the macro. I'm not invested in the Fed. I'm invested in NVIDIA. Last question on stock investing. Like you, I try to stay as focused on businesses as I can.

But every once in a while, particularly recently, I find myself focusing on stock price in this regard. of these businesses have had their stock prices knock down so much that in my own personal investing life, I've looked at certain businesses and said, wait a minute, if you're going to offer me shares of this company at that price, I'm going to buy shares at that price. You've mentioned a few of your holdings. Is there anything recently, whether it's one of your holdings or not that you look at and you think, boy, that seems like a great opportunity to get into a business with a bright future at a lower price than it's been at in the past. I think there are any number of those. I almost don't want to call one out because then it'll

sound like, this is the stock. This is the stock that David says to buy. I really, I look broadly across so many different companies. I mean, I like Zillow, for example. Zillow, it looks like a fallen star because they made a mistake. They started trying to buy real estate using their own algorithms, which wasn't working so well for them. And the company got crushed. The stock is down 50% since just June of last year, right? So here we are, nine months later. I think it's a great company. I think it's beautifully positioned for the future. It's a digital player that a lot of people consult on a daily basis to check the seems like ever-increasing home prices in our country today. So I think Zillow is an example of like a fallen rule breaker that's interesting to me.

But, you know, I mentioned the trade desk earlier. I think the trade desk is a brilliantly managed business. So the trade desk is around 70 today. It was about 110 in right around Thanksgiving of last year. So four months ago. So there we are, a stock that's basically down well more than 30% in just a few months that I think is really well positioned. That has been a great performer for so many Motleyful rule breaker type investors for years and years now. And here you are with a 30% sale. Axon Enterprise, another company that I think is really well positioned. Police body cameras, Hazers. They're basically outfitting law enforcement with non-lethal solutions that are transparent. That's what the world wants and needs. There's really no Pepsi to their Coke. These are all examples of

widely disparate companies, and I could present a lot more. But if you're using Motley Fool services, if you're paying attention to what we're telling you and stockiviser rule breakers, everlasting stocks, and all of the different services that we offer, and you just continue to be consistent and be an actor, not a guesser. And be positive in the face of a lot of negativity. I think you're going to be well rewarded as you always have been. Some of the headlines over the last six to 12 months from the stock market have been about CEOs riding off into the sunset after successful careers. We've talked many times on the show about how CEO succession is tough to pull off well. I'm mindful of the fact that the final four is this weekend. I think it's safe to say that the

College basketball tournament is both your and my favorite sporting event in America. We agree. And it seems like the parallel there is for head coach succession is tough to pull off well. Your alma mater, University of North Carolina, Roy Williams, a Hall of Fame coach, stepped down last year. Hubert Davis, who played for UNC, played in the NBA and was an assistant coach at Carolina, becomes a head coach. And in his first season, he's got his team to the final four. how delighted are you with the early success of Hubert Davis? Well, I'm very, I'm delighted.

I'm delighted, especially because I think Hubert is such a person of character. And that's what I'm going to see in the world. That's what leaders, to me, that's what great leaders are. They're people of very high character. And, you know, part of character is being ambitious and is achieving and succeeding. It's not just being honest all the time or being a nice guy who gets clapped on the back. I think it's about performing and winning. Anybody who's a fan of North Carolina basketball, which is probably a real minority of people,

hearing me right now, so I won't go on long. But anybody who has seen a lot of ups and downs in this season, it reminds me the stock market. But if you just stay and you keep buying, you know, I often think college basketball teams are great reminders of the power of brand. I mean, Duke and North Carolina are going to play an historic game on Saturday night. They're Duke and North Carolina. And they've built up their reputations through winning, through great players over the years. And they're kind of great brands and brand names. And that's really how I invest. as well. I'm looking for the lead Huskies. I'm looking for the winners out there. I'm just, I'm delighted for Hubert that he's done that. I think it's too early, really to judge him

and the succession. One year, not even a full year, isn't enough. But I hope three to five years from now that he's thriving and that we're all thinking what a great job Roy Williams did handing off the program along with the athletic director to an alum who at every stage of his career, including being a kid playing basketball, was told he probably wasn't good enough. for whatever he was about to embark upon. And literally every time at every stage, including not even being initially offered a scholarship to play at North Carolina, Hubert surprised everybody with his ability. And so I think it's happening once again. Last thing, and then I'll let you go. We're coming into April, a special month for the

Motley Fool, not just because of April Fool's Day, but also because it's financial literacy month. And that's near and dear to our hearts and the mission of our company. And on Friday, Friday, we announced something that you've been heavily involved in leading. The Motley Fool Foundation. Can you explain for folks listening the foundation and its mission? Yeah, the foundation is after financial freedom for all. We're trying to solve the whole equation. I think a lot of people who benefited for the Motley Fool, a lot of people hearing us right now, who've received advice from the Fool. These are typically people who have capital in some way, shape or form, and that's why they're listening, because they've got savings, and they're thinking,

how do I make that grow? Well, a lot of us also feel a little bit like we've gotten hit upside the head by the market at different points here over the last year. And that's always disappointing, but what's even more disappointing, and I think important to recognize is that two-thirds of Americans are not financially healthy. They are either financially vulnerable at the lowest level or financially coping. So really, two-thirds of Americans kind of feel how you and I feel about I'm going to have fun here, Chris, in quotes. You said, growth stocks. You know, that's how a lot of people feel every day about their money and their finances. And so I think the Motley Fool and my talented brother, our CEO, Tom Gardner, recognize that it's time for us to look out further,

widen the campfire, the glow of our campfire, not just inviting in people who already have money. Let's try to solve the equation for everybody. So we have an opportunity, I think, especially because of digital, we're now no longer an animal. We're now no longer an animal. a log, but a digital world. There are a lot of powerful factors, more empathy than ever today that I think are making it possible for us to really imagine the possibilities of a United States of America where everybody has an opportunity to be financially free. We're a scrappy startup. That's what the Motley Fool Foundation is, but we have a huge asset that a lot of startups don't have. We have the Motley Fool membership base over one million people who've kind of grown

up with us and prospered with us over the course of time. And a lot of them are generous, people who are looking for ways to do for others what in some senses we've done for them. So we say, consider paying it forward. So we're excited about the foundation. It does launch today, April Fool's Day, appropriately enough. But it's really the beginning of the rest of our lives at the foundation on the board chair. Our wonderful executive director, Jennifer, Janaro, Oxley, and team. Chris, you've been helping us out there.

There are so many fools volunteering already to help out the foundation. It's an exciting time for folks looking for. more information, just go to FoolFoundation.org and you can sign up to be part of the journey for financial freedom for all. David Gardner, good luck to your Tar Hills. Thanks for being here. We'll need it. Thank you, Chris, Fool on. Coming up, Emily Flippin and Tim Beyer's return with a couple of stocks on their radar. Stay right here. This is Motley Fool Money. Welcome back to Motley Full Money. Chris Hill here with Tim Byers and Emily Flippin. Just a couple

minutes. Let's get to the stocks on our radar. Our man behind the glass, Rick Engel is going to hit you with a question. Tim Byers, you're up. Up first, what are you looking at this week? So I'm looking at JAMF, JAMF Holdings, which is a strange name, and it's in about a 20-year-old Minnesota company, Rick, tickers J-A-M-F. Here's the idea. If you believe there's going to be more Apple in companies, you want JANF because JAMF orchestrates and manages those devices, and we use it here at the Fool.

Companies growing over 30 percent, its backlog is growing over 40 percent. One of those undiscovered gems, Rick, that nobody knows about, but they should know about. Rick, question about Jamp Holdings? Yeah, I think of Apple as being kind of the consumer device, but PCs being more the business device. Is that changing? It is changing, Rick. The Apple in the enterprise movement has been on the up for several years now, and with the launch of the M1 chip, you're going to see a lot more companies using a lot more max at desks either in the office or in the virtual world. So yeah, a lot more Macs in the enterprise,

a lot more business for JAMF. Emily Flippin, what are you looking at? I'm looking at Rover Group. The ticker is ROVR. They're the largest online marketplace for pet care services. They connect pet caregivers to pet parents. So if you wouldn't need a dog walker or someone to sit for you, definitely consider this company. They're operating cash flow positive, growing pretty rapidly and led by a really interesting, interesting founder and CEO. Rick, question about Rover Group? Yeah, isn't that what neighborhood kids are for? What's happening to our neighborhoods, Emily? More than 90% of the market is friends and family, so they do need that to change in the future to be successful. Rick,

what do you want to add to your watch list? Well, I like the name Rover better than Jamp. So I'll go with the dogs. Yeah, I think I think Jav might need a rebrand to go along with their business. You gotta love, you gotta love a company that has a terrible name, but a great business. Undiscovered, Rick. Okay, I'm probably wrong, but you know. Tim Byers, Emily Flipett. Thanks for being here. Thanks, Chris. That's going to do it for this week's Motley Fool Money. The show's Mixed by Rick Engdahl. I'm Chris Hill. We'll see you next time.