Motley Fool Money - Motley Fool Money: 09 02 2011

Episode Date: September 2, 2011

Clark Howard shares financial tips with his latest book Living Large In Lean Times. Motley Fool co-founder & CEO Tom Gardner talks about the legacy of Steve Jobs and offers a few stocks on his radar. Plus, our analysts discuss the latest economic news, DOJ blocking the AT&T/T-Mobile deal, Amazon’s upcoming tablet launch and Starz walking away from Netflix. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Yes, you too. We've got bestselling author and financial radio host Clark Howard with some tips on how to make your money go farther. We've got the latest on AT&T, Netflix, and more. But we begin with the big macro. Unemployment is holding steady at 9.1%. And for the first time... Yeah, is that good or bad? Do we clap for that or not?

He made it so cheering. It seems like it should be good news. And yet, for the first time in nearly a year, no increase in net jobs. Ron Gross, that's not good. I feel like this is a trend, Chris. Every week we kind of say, hmm, things don't look good. And this is no exception, unfortunately. Economists, we're looking for 75,000 jobs created. We created none. That is obviously bad. The real unemployment rate, which is a number that troubles me, is 16.2%. That 9% is a little bit understated, a little bit misleading even. So it remains concerning. And we've got to put people back to work in this country. Ron needs to cheer up because after all, we could revise that number down. It'll be worse next time we look at it.

The more accurate it gets. So I could be relatively. It could be worse. At least no new jobs created means no new jobs destroyed, right? It's still zero. But there's actually some decent news this week, I thought, as well, although it buried under all the other headlines. As usual, one was that chain store sales were up pretty strongly. Yeah, we've got a little bit of back to school.

But given what happened with the hurricane, that could have been a lot worse. So a 4% increase there is pretty decent news. and we had some good car sales. So it's good and bad. Don't worry too much, people. Come on. The auto sales were a little surprising when you consider the month started

with the stock market dropping the way it did and ended with a hurricane, basically shutting down the East Coast. I thought the same thing about the chain store sales. And consumer confidence was at a low we hadn't seen since sort of like the height of the financial panic. So this goes to show you as I turned to shaking my head to colleagues.

It said, even if you know the news, you may really not know what's going on. This week, the U.S. Justice Department and blocked AT&T's proposed $39 billion merger with T-Mobile USA. James, were you surprised by this? I was not. I mean, we can't blame AT&T for trying, but the DOJ can. Basically, this deal would give AT&T 70% of the wireless market,

so obviously potentially the ability to overcharge people as well as put them on the AT&T network, which is no fun as anyone who's had AT&T knows. It doesn't seem likely to go through, bottom line, because not only is the DOJ against this, but even if AT&T somehow won against the DOJ, which is not likely, they would have to go against the FCC, which at least so far has not said anything positive about this. So it looks like it's a dead deal. Ron? What I love is James wasn't surprised about this, but it appears AT&T was.

Yes. Because as recent as August 30th, they thought this was going through. And they failed to put forth a good, compelling argument how this would not be anti-competitive and how it would not raise consumer prices. And the DOJ was just like, you know what, guys, if you're not going to try, then we're done. I think it's pretty clear. If you're on AT&Ts, I've been for years, the services, me, the prices keep going up. Taking out the low-cost competition is not going to help things for the consumer in this country.

We're supposed to sort of cheer for businesses in this room usually, but I'm happy to cheer for consumers in the DOJ in this one and say, eh. So where does this go from here to make this deal happen? Are they going to have to promise to sell off some of T-Mobile's assets? I think they're going to give up and pay the fee. Yeah, in theory they could, but I think they'll give up. I agree with Seth. It's $3.3 billion, I think, plus some spectrum. Great.

They're going to have to jack up our rates anyway. AT&T and all the others are still undercharging for the broadband data. I mean, they're going to have to raise rates on that. But regardless of the deal, that would have made the deal look even worse, I think. Costco founder and longtime CEO, Jim Sinigal, announced. He is stepping down at the end of the year. Ron, we were talking about this on Market Foolery, our daily podcast the other day. You're genuinely upset by this.

I'm a little bit bummed. I have always viewed Mr. Senegal as one of the finest CEOs. Yes, he deserves Mr. Right there. That's all we need. One of the finest CEOs in America. Certainly one of the finest merchants in America. And Costco is a wonderful company.

And he really cared about not only his customers, but also his employees, as shareholders. And it's a shame to see him go. You know, things don't last forever. The good thing is that his legacy, will remain. What he has put in place permeates that company. And I'm not concerned at all about the company or the stock. It's a shame to see him go. Stars announced it has ended contract renewal discussions with Netflix. Ron, Netflix is a stock that has crushed the market over the past decade. And yet, shares were down

close to 10 percent Friday morning after this news broke. Yeah, this is really interesting. So for listeners that are not familiar with Stars, think it's It's part of Liberty Media, and it really represents the Sony and the Disney content that Netflix offers. And mostly we're streaming is what we're talking about, really, when we say the loss of content is somewhat significant. 8% of their content, but it's going down. It'll probably be like 5% or 6% next quarter, and then it will go away. Is this the beginning of this war between Netflix and its content providers where the content people want more money?

Netflix has to worry about how much they pay. It'll be interesting to see if this is the first salvo in that argument. Salvo. But, you know, Netflix says we're going to take the money that we're saving on that deal. We'll put it towards other content. This certainly isn't going to, you know, 5% of our content going away is certainly not the end of our business model. Could be in so nice over there. Now, if you do the numbers on this, it's interesting.

The rumor is they were asking for 10 times what they had before, which was 30 million a year. So you say, well, they want 300 million a year for 8% of what Netflix is showing. okay, let's knock that back to 200 and say maybe that's reasonable, multiply it times 12 to get to 100, you know, assuming, okay, this is what Netflix should pay all of its content providers. Pretty soon you're up at $3 billion a year. Netflix doesn't have revenues that huge. If this is the direction costs are going, they're going to be a bunch of very unhappy Netflix shareholders at some point in the future. So is that what shareholders should be watching? Because as Ron alluded to... They're not going to... If you're in Netflix right now, you're a cheerleader. And that's why you're there.

But analysts in general and Wall Street are always been focused on content acquisitions costs going up. That's the bare case. Right. And this is one of the first examples of a disagreement when it comes to pricing. So CEO, Reid Hastings, whatever his next movie is on content, that's what you think analysts on Wall Street will be looking for. Yeah.

Now, you know, he's a smart guy. He's built a wonderful company that has a great product that we're probably all subscribers of. But he needs a magic hat right now. Right. It doesn't mean that, you know, all great people. businesses go through growing pains, and he's going to have to work through this. And finally, there have been rumors about this for a while.

But late last week, the New York Post reported that Amazon does plan to release its own tablet computer in late September or early October, selling, quote, for hundreds less than the iPad. Seth, Jason? I thought this was something that would never happen. The more I've read about it, the more it makes some sense. I can see the market, if they can sell this thing for $250, $300 and make up the loss, which would probably be on selling content, it might make some sense,

and they might actually be able to take a bite out of Apple's dominance in this market. What fun. Oh, did I? You didn't even be so. That makes it even more special. I think this is actually probably the worst news for the Nook, which we've been discussing. They're selling a lot of nooks these days.

Barnes & Noble. Barnes & Noble is, and it's kind of helping them out, but I'm not sure that there's room for that many different e-readers, and if Amazon has a full-color tablet that can do what the color nook is doing, that might be the end of that. This is like an iPad, closer to an iPad than a Nook, right? Absolutely. But it would be a reader. It would be an e-reader, and it would have, you know,

the Nook has already got similar battery life to a tablet because it runs an LCD screen and everything else. It would have all the disadvantages of a tablet, but with none of the advantages, because it doesn't do the other stuff. So it won't, I can't do a spreadsheet or internet browsing or limited ability, wow. Just a few seconds left

for Labor Day weekend. Book recommendation, says? You're a Kindle guy. The Game of Thrones series is My Gill. pleasure right now. James? Any parents out there, Mike, like the book called Setting Limits, How to Raise Responsible Independent Children by Providing Clear Boundaries. It's a pretty solid read. It sounds a lot harder than just putting my kid in front of a TV. Ron?

Wow, for you nerds out there who haven't had a chance yet, revisit the Lord of the Rings trilogy. That is a good trilogy. All right, Seth Jason, James Early, Ron Gross, guys. Thanks for being here. Thank you, Chris. Coming up, Motley Fool co-founder Tom Gardner shares a few stocks that are on his radar. Stay right here. This is Motley Fool Money. Welcome back to Motley Fool Money. I'm Chris Hill. The Motley Fool was founded as a monthly newsletter back in 1993 by Tom and David Gardner. That monthly newsletter is gone, but today in its place, the Motley Fool has more than 250 employees, a suite of premium membership services, an asset management division and offices in the United States, Australia, and London, where co-founder and CEO Tom Gardner joins me now. Tom, how are things at Fool UK? Everything is outstanding here.

And we've got about a dozen employees here in the UK, and we've had a great week. We are wrapping up a pretty wild summer for investors and a particularly volatile August. So I want to get your thoughts on stocks in a moment. But before that, two major CEOs have stepped down in the last week, and I wanted to get your thoughts on their legacies and any business lessons you've taken from them. and I'll start with Steve Jobs, CEO of Apple. Well, he's obviously the most visionary leader of our time, possibly, certainly one of the greatest visionary leaders

in American history from a creative and commercial standpoint. That is both good and bad news for Apple's shareholders, just because obviously the company has had such reliance on his genius. And that leaves some questions about the future for Apple. I don't think it leaves many questions about the immediate future for Apple, because it's such a well-run company with a collection of products that are unmatched,

and a great platform and a wonderful financial balance sheet and financial performance by the company. So I don't see anything immediately upsetting about Apple. But I just would say about Steve Jobs, his life story is filled with so many great lessons, and I feel so badly for him that health has taken him away from the things that he's shown so much love for in his life, both in his first and Apple and his second.

And he's built one of the great organizations in American history. And by the way, interestingly, he actually, I think, has more value from a ownership standpoint in Disney than he does in Apple, the result of having started Pixar and sold it to Disney. I may be wrong about that, but I believe that's the case. But the reason I say that is very, very few people have ever created so much value at different organizations as Steve Jobs, although it's right that he's, He's so associated with Apple, and of course, everyone wishes Steve Jobs the best in recovering.

And the other business leader, Jim Senegal from Costco, we've actually had the pleasure of having Jim Senegal visit our office here in Alexandria, Virginia. When you think about his legacy and any business lessons you've taken from him, what do you think about? Well, I think he's competed against the most aggressive competitor in probably in almost any industry. Maybe the most aggressive competitor in the world today is Walmart. They're aggressive on price. They're aggressive with anyone who competes with them in the retail marketplace. They're aggressive with their suppliers. They do so in a very successful way.

I don't mean to use the word aggressive in a negative way. But to have built Costco in that context is just a reminder of how brilliant Jim Senegal is. I mean, he's the creator and founder. He had previously worked at, Club and started his own business. He stayed with it since the founding, worked well past the time that he needed any money. Same thing with Steve Jobs. This is why I love founder-led companies because you don't see in the CEO somebody who's trying to negotiate their compensation package all

the time and worried about what they're making next year. They're trying to fulfill a mission with their organization and that ends up rewarding shareholders more than the short-term focused profit-hungry business. And I'd say that, you know, between Costco and Apple, I definitely think a safer investment going forward is Costco because of the way that business operates. It's not a business that has tremendous demands and innovation from one quarter to the next. They've got a great model in place. And, you know, just the, we were talking before going on the air about how Jim Sinigal appeared at the bottom of the press release about ratings. I mean, it's not even the big announcement at Costco, and he doesn't want it to be

the big announcement. And I think Costco is built in the Jim Collins world is built to last. I I think this is a company that is going to be around and thriving for decades after its CEO and founder Jim Senegal stepped down. And he has always said that he's made decisions at that company with, as absurd as it might sound, with the idea of whether it will optimize the results for everyone involved at Costco 20 to 50 years forward. So he's a super long-term thinker in a world of super short-term thinkers. And I think that that methodology and his principles are going to last. Now, early next year will mark the 10-year anniversary of Motley Fool's Stock Advisor. I mentioned the premium membership services.

This is the flagship service here at the Fool that you and your brother David run. You've both had an incredible run with your stock recommendations, just really crushing the market over the past decade. With that in mind, as we head into the fall after this particularly volatile August, what are a couple of stocks that are on your radar right now? Well, first of all, I have to say that my brother David has had a simply unbelievable run. I have to acknowledge that I'm in second place. I didn't want to get into specific numbers comparing you to, but... Thank you.

Thank you. There are three horses on the track and Stock Advisor in all of our services. There are three horses in the track and Stock Advisor. There's David. There's me, and there's the S&P 500. We always make it clear to everyone how we're doing against the market. And each one of our picks is tracked against the market. So you can see our winners and our losers.

They won't hide from them. They're all up online. Full community talking about them 24-7. And in David's case, the average pick is up 128% in the 10-year period. The S&P is up 14%. I'm up 67%. So I feel great about my returns, but I'm reminded that they're not as great as Dave's. But I believe in the companies that I'm going to mention right now as great long-term investments that will beat the market. We've talked about one of them, which is Costco. I think Costco's a great investment now. I think it will continue to be the case, and I think any investor would do well whenever the market gets hit to just go in and buy more shares of Costco. Every time you get a little price discount that's macro in nature, take it on a great business like Costco. Second company I'll mention is Coach.

I think Coach is extremely well-run by Lou Frankfurt. That's been a great stock, and I think Coach has so much opportunity in Asia, and they're a very well-run company, and I like this consumer-facing brand in this business. And the last one that I'll mention is Berkshire. Berkshire is cheaper almost than it's ever been. And I understand there are concerns about Buffett and succession. And, of course, they had the S&P downgrade of Berkshire. And that has taken its toll on the valuation of the business.

But I think there is a collection of great businesses here. And I think this is a very, very fine investment from this point in time over the next five years. I will say that I expect Buffett to live for quite a long time from here. and when that time comes that he's no longer running the business and he said he's going to keep running it five years after his death when that time comes i am going to be looking very closely at who they've selected and the decisions that that person is making uh if we take costco apple and berkshire and compare them i i would submit to you that apple and berkshire have more strategic demands on those businesses apple and technology the change is dramatic facebook hardly existed you know that that long ago google didn't exist i mean these companies grow up and 10 years and are the largest companies in the world. And that means that they can be replaced by upstarts. So that would be Apple one be the most strategically challenged. Berkshire, number two, you can say they have great businesses they do.

You can say they're well run, they are. But there's a mind at the head of that company that's finding the next business to acquire and integrating it into the overall Berkshire family. And I want to make sure that that person who's following up Buffett is doing just as well as Warren did. And I would say, I have said that I'd like to see him name that CEO. now and act as a stronghand chairman at Berkshire. But Costco, I mean, I love Jim Sinigal so much. I love him enough to say that they, I don't think they'll miss him. I mean, that sounds harsh, but that's the biggest praise I can give to a public market CEO, that you have done such a

great job that the whole company is ready to thrive with the system that you set up in place. If I had one criticism or one worry, it's the tendency to turn and pick your chief operating officer as your next CEO. I do like to see the visionary take over these companies, but in Costco's case, I think it'll be seamless, and that's a great operating business that will be served well by its chief operating officer. All right. To get more stock ideas from Tom, you can go to Stocksto-watch.fool.com. You'll get six stocks from Tom and David Gardner that they think you should be watching. You'll also get more information on how you can become a member of Motley Fool's Advisor.

That's Stocksto-Watch.fool.com. Tom Gardner, co-founder, CEO of the Motley Fool. Thanks for joining us. Get home safe from Fool, UK. Thanks for having me on. Up next, financial tech. Tips from best-selling author and radio host, Clark Howard. This is Motley Fool Money. Broadcasting from Full Global Headquarters in Alexandria, Virginia, this is Motley Fool Money. I'm Chris Hill, and you can call our next guest a lot of things, including cheap.

Clark Howard is heard every day on more than 200 radio stations across North America on the Clark Howard Radio Show. It's got a television show on the HLN Network, a website, and he is the author of, multiple bestsellers. His latest is Clark Howard's Living Large in Lean Times. Clark, thanks for being here. Thank you so much for having me, and I wish we weren't in lean times in America. I join you in that thought. What is something that someone can do in the next week, the next month, and the next year to improve their finances? Let's go short term to longer term. Well, short term, every time a bill comes in over the next week, see if you can take a scalpel to it. I think that that is the area where almost immediately there's low-hanging fruit.

You take all the technology bills that people might have for pay television, for cell phone, if they still have a home phone, high-speed internet. Any of these bills are bills that we just pay by rote. and it is amazing how much money you can reduce those costs that have just been keeping on in your life. And right now, in pay television, more than any of the other areas with monthly bills, you can reduce your costs by easily a third right now. So typical person may be paying a grand a year for pay television. You should be able to pick up $300 or $400 in savings. bam, just like that, because subscriptions are weak right now for the two satellite players,

for the cable company, and if your local phone company offers television, they're all hurting, and all they have is the ability to steal customers from each other. You call the other three players versus who you're using right now, find out their best deal, call back who you're with, and it will shock you the bargains. you'll be offered. Now, Clark, you made your initial fortune in the travel agency business. So let's talk travel. Give me a couple of tips for getting the best deal on a plane ticket. Well, the first key rule would travel. And I know when I say this, people think I'm kidding. But the first rule of travel is you never pick your destination first. The way travel works with the

cycle of sales, you wait for the bargains that pop up. up and then you figure out why you want to go there. And the reason that's not a joke is if you think about if you ever watch a site like Travel Zoo or Air Guerrilla or any of those, day after day, they have these deals that pop up that are like, you've got to be kidding me. You can go to this place and that place to the other place for like no money. And so if you instead allow the deal to drive your vacation, you will end up seeing the whole world at a fraction of the cost. And I've been to every continent except Antarctica, and that has been my guide all along. In fact, once a year, I take my staff on a reward trip, wherever in the world goes on sale.

And we went to South Africa earlier this year. We went to China two years ago. Last year we went to Hawaii. and it's just wherever the bargain is, that's where we pack our bags and go to. And if people will reorient that thinking towards the bargain first, what you pay for travel will drop by more than half. On the hotels, I have the hardest time getting people to go through the steps that will save you big money on hotels.

But the price line ads, they're actually true. All that hype was Shatner? The bargains booking on Priceline are off the charts. I've been traveling around the country on Book Tour, and my publisher has given me something they never allow anybody else to do. They've given me the right to book my own travel, because they know I'm going to save them so much money. And my next hotel I booked on Priceline, I booked for 42 a night.

That is one smart publisher. Is that too much 42 a night? No, no. Just wanted to make sure I wasn't overspending because I started my bid at 35 and got turned down and got turned down at 39 and ended up at 42. You're not in some creepy roadside motel out of a horror movie, though, are you? No, I'm at an airport hotel that the reviews on TripAdvisor are pretty good. You're listening to Motley Full Money? My guest is Clark Howard, author of the new book, Clark Howard's Living Large in Lean Times. All right, let's talk about a few of the other savings tips that are in the book.

Let's start with don't go for the extended warranty. Oh, man. You know, it's an emotional thing. You're at the electronic store. You're buying the new flat screen. And I love all the lingo the salespeople have been taught. You know, don't you want to protect your investment? Well, let me tell you, the Motley Fool is all about investing.

Buying a flat screen television, that is not an investment. That is spending. And it's an emotional person. purchase and buying the extended warranty with it is the biggest waste of your dough you could ever do. One thing, Consumer Reports has found that the flat screen televisions are unbelievably reliable. I mean, just incredibly reliable with a failure rate that has been tiny, tiny, tiny. So why would you insure something that is a rapidly depreciating thing anyway? if you bought a TV two years ago, you could buy a TV better today for a third the money.

And second, you only ever ensure something that you can't afford to fix or replace. Another tip you have deals with a company that we're big fans of here at the Motley Fool, and that's Costco. And you say, if you're at Costco, look for prices that end in 97. That's right. What's the magical power of 97? Well, Costco is an internal thing. marks items with 97 cents that are things they're closing out, that they're clearing out, and they've marked down below Costco's hard cost in that item.

The maximum any item can be marked up in Costco is 14% on brand names, 15% on their private label, Kirkland's signature. So if you see it on 97, they're taking a hit. You're getting the savings. The funny thing is it used to end in 77 cents. And I wrote about that in a prior book, and they got upset with me for talking about it. So they changed it to 97. And I talked to the CEO, and he said they've given up.

They know that whatever they change it to, I'll talk about that too. Oh, and Sam's Club does it a different way. Sam's Club does anything that ends in a penny. So 41 cents, 91 cents, 71 cents, anything like that is the equivalent of a markdown at Sam's Club. You know, I've had the chance to interview Jim Sinigal, the CEO of Costco, and I really wish I had, I don't know, been to fly on the wall for that conversation between the two of you. Well, he's a great guy. He doesn't quite get me, but he's a great, great guy. And he really does have that spirit that I hope survives his retirement, which is that everything they focus on, everything is the employee and the member. And the stockholders, interestingly enough, the stockholders come in third place in that mix, and that's always upset Wall Street. In fact, Wall Street refers to Costco cynically as the world's largest co-op.

But the truth is that people know that Costco has integrity, they trust it, and over time they've grown and grown and grown and ultimately been a good investment for stockholders in spite of the fact that the stockholders come in third. Another savings tip from your book, Reuse Disposable Razors. Yeah, I'm on the same razor since March. It's a 17-cent razor. And all you do is you dry the razor after you use it each time because the only thing that degrades the razor is moisture, not the act of shaving. My last razor lasted a year.

And I had a photo shoot this morning, and the makeup artist knew I did this with the razors. And she says that this razor's done. Her opinion was, I wasn't going to make it a year with this one. This one's only going to make it, what, five months or whatever, that I needed to bail on it. But I'm not quite ready to give up on it. I'm kind of in pain just thinking about this. I mean, I think I trade out my razor every couple of weeks.

Yeah, and you're probably using one of those way overpriced multi-blade razors, right? Yes, I am. All right. So try it my way. This is like an intervention. Dry that blade for each time after you use it. Just dry it with the towel. Okay. See if you don't stretch that two weeks to four or six without any nicks or cuts.

I bet you that I'm going to save you money because where I pay 17 cents for a blade, you're throwing away $3 a blade and I feel really bad for you. Yeah, but I'm not cutting myself like I'm sure you are. I do not. As soon as I hit the point that I'm going to nick or cut, that blade's done. Now, that may take seven or eight months for that to happen, but at that point, I'll give up on that blade. More with Clark Howard right after this.

You're listening to Motley Full Money. You're listening to Motley Full Money talking with Clark Howard. His latest book is Living Large in Lean Times. it is already a New York Times bestseller. I know there are a lot of mistakes that we all make when it comes to personal finance, and clearly I'm making one with my expenditures in the realm of shaving. But what do you think is the single biggest mistake? Cars.

Really? Running away from the pack. You know, it would be like having a Kentucky Derby where the first horse wins by 30 lanes. Because cars are the second biggest expense in our lives after housing, and we tire out of a car before the car wears out. And cars are incredibly expensive part of our lives. If you think of it, when you buy a new car, the typical person cycles out of that car after it's three, four years old.

Many times, they're not even done with the loan on the car they took out. And so it's like flushing money down the toilet every single month. if someone can change the cycle and keep a car longer and the ultimate goal would be with a new car, keep it 10 years, you totally change your long-term financial future. What do you do for yourself with cars? Do you own a really old car? Do you lease? Well, I, did you just cuss at me? Are we allowed to cuss?

I think I heard the word lease. We do not, in polite company, use that word. Wow, the next time I'm at the Howard household, I will keep my tongue in check. Yeah, we're going to wash your mouth out with soap on that one. But I'll tell you, the people who do lease are doing a giant favor for the next buyer. My thing is I like to buy used cars. My wife and I, we have very different values in cars. I have an old Zion XB and a Prius.

and my wife, my Prius, I converted into a plug-in hybrid, so it's a battery-powered car completely. My wife, though, likes really, really fancy cars, but she buys them when they're three years old after somebody's lease them. And so the first buyer covers half or more of the lease, the person leases it at first, covers half or more of the value of the vehicle. My wife picks them up for a song. What's one piece of advice for managing money in a relationship when maybe you and your significant other aren't necessarily on the same page? Well, what you do is whatever she wants is what you do. That's the key rule for any man. The compromise you do is 90% her direction.

No, just kidding. But only partially kidding. That's not a bad way to go, actually. as a general operating principle. Well, it took me to my second marriage to understand that. And that is not Clark smart to have the expense of the heartache and the expense of having to cycle through like that. But the thing is, when you deal with a couple where the values are different, it can really tear at the fabric of a marriage.

And even more, if a couple is living together, you can blow it. the entire relationship apart when the couple is on different pages about money. And the worst thing is when a couple goes into the silence dome about money, where he's having his thoughts, she's having her thoughts, and they're not talking. So I find the key is you have to have the conversations, not a conversation, but a couple has to talk through what's important to them. The comprehensive compromise is not that you get your partner to give up what's important to him or her. The important part is that you make the compromises where you can each have at least some of what you want, but that you reach your common goals.

And I believe the way you do that is you as a couple sit down and write, what are your long-term goals? What is it that each of you hope to accomplish in 10 years? What is it you hope to accomplish in 30? And when you see that the goals, as you look longer term, tend to come much closer together, you're able to back in to how you handle money day to day. You're listening to Motley Full Money? I guest is Clark Howard, author of the new bestselling book.

Clark Howard's Living Large in Lean Times. Before we wrap up with a round of buy-seller hold, I have to ask, if Clark Howard, Dave Ramsey, and Susie Ormond go out to dinner, who's picking up the check? Oh, always me. Always you? Always me. Because then I would make sure, since I was picking up the check, I would make sure that we went to a very affordable restaurant. Hopefully one that I've got a coupon for.

Fantastic. But, you know, I would ride, let's say we were in New York, I'd arrive on the subway and they'd each arrive by limo. That's the difference. All right. Let's wrap up with a ride of buy-seller hold. This company recently announced a rate hike that made headlines. Buy seller hold, the future of Netflix. Hold on Netflix.

Am I allowed to say anything about them? Absolutely. Netflix is a fantastic company, and for the most part, has enjoyed a monopoly on what they do. They've alienated longtime loyal customers with how ham-handedly they handled the big rate increase, and they've opened up space for competitors to come in. That's why it's a hold, even though I love the company. Some investors are anticipating this company's IPO, buy-seller hold, the business of Groupon. Sell.

Really? Yeah, the best days of Groupon are in the rearview mirror. Come on, Clark, it's a daily deal site. This is right up your alley. Yeah, but what do they have that's unique? They don't have uniqueness. and first mover advantage work for them for a while, but at the valuations that Groupon is hoping for, I think it's an absolute sell, and those people were crazy to not take the $6 billion

from Google. I wanted to call them that day and say, take the money, take the money. Buy seller hold, debit cards. Sell, sell, sell. Debit cards are great. Garbage. I call them the piece of trash, fake Visa and Fake MasterCard. They're poison for your pocketbook. You don't have good consumer protections with them. Either use credit cards or use cash. Don't sugarcoat it, Clark. Tell me what you really think.

I'm sorry. You want to be more opinionated on that? And finally, buy-seller hold a movie based on the life and extreme savings of Clark Howard. Sell, nobody wants to watch that. Really? Nah, pretty dull guy. There are many, many, much more interesting people than I am. Look, we've got multiple Transformers movies. I'm pretty sure we could make a movie about the life and extreme savings of Clark County.

I don't know. Let's say on the same night, a movie about the Kardashians opened and I opened. And you know how you might have a 14-screen multiplex? They put the little art film on the little screen, and then they take as many of them as they need for the others. It would be Kardashians 13 and me in the little art room screen. Who do you think your wife would like to see cast as you in this mythical Clark Howard movie? Oh, absolutely, without question, Jerry Seinfeld.

When I walk around New York, he and I look enough alike that I get all these head turns. Do you ever get asked for an autograph and just sign it, Jerry Seinfeld? I had the worst thing happen. This couple came up to me and said Seinfeld, and I just I said, no, I'm sorry. I'm not him. And so I'm still shopping. And then they come back and they start screaming at me. It would have been a perfect thing in a Seinfeld episode.

They're screaming and yelling at me that they know I'm Seinfeld and I'm the rudest guy ever that I'm trying to pretend I'm not. So that would be who my wife would want to play my part. The book is Clark Howard's Living Large and Lean Times. It is already number three on the New York Times bestseller list. Get a copy. it will change your life for the better. Clark Howard, thank you so much for being here.

Thanks. Have a great day. 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 hear. That's it for this edition of Motley Fool Money. Thanks to our guest this week, author, radio and TV host Clark Howard, and Motley Fool co-founder and CEO Tom Gardner. Our engineer and producer this week is Steve Broido.

Matt Greer is on vacation. He will be back next next. week. I'm Chris Hill. Thanks for listening. We'll see you next time.