The Canadian Investor - Investing in your circle of competence with Mitch & Jake

Episode Date: October 18, 2021

In this episode of The Canadian Investor, Braden sits down with two lads from the east coast to discuss investing in your circle of competence, EQ Bank, home builders and building a portfolio when you are young. After a relaxing 2 weeks off, Braden and Simon are back to recording regular episodes 2x per week this week. See omnystudio.com/listener for privacy information.

Welcome back into the show. This is the Canadian Investor Podcast, made possible by our friends and show sponsor, EQ Bank, which helps Canadians make bank with high interest and no fees on everyday banking. We also love their savings and investment products like GICs, which offer some of the best rates on the market. I personally, and I know Simone as well, is using the GICs, which offer some of the best rates on the market. I personally, and I know Simone as well, is using the GICs on a regular basis to set money aside for personal income taxes in April of every year. Their GICs are perfect because the interest rate is guaranteed, and I know I won't be able to touch that money until I need it for tax time. Whether you're looking to set some money aside for a rainy day or a big purchase is

coming through the pipeline or simply want to lower the risk of your overall investment portfolio, EQ Bank's GICs are a great option. The best thing about EQ Bank is that it is so easy to use. You can open an account and buy a GIC online in minutes. Take advantage of some of the best rates on the market today at eqbank.ca forward slash GIC. Again, eqbank.ca forward slash GIC. Live from the great white north, this is the Canadian investor where you take control of your own portfolio and gain the confidence you need to succeed in the markets. Hosted by Brayden Dennis and Simon Belanger. The Canadian Investor Podcast. Today is Wednesday, September 22nd. We have another interview today. Today we have Mitch and Jake from the Money Under the Mattress podcast, two young Canadian lads as well.

We were talking before recording, you guys are from New Brunswick. So thanks for coming out from the East Coast. Do you guys want to just introduce yourselves? And then perhaps after each of you introduce yourself, give the lowdown on what a pivotal moment was when you started down the finance rabbit hole and managing money for yourself. Mitch, do you on what a pivotal moment was when you started down the finance rabbit hole and managing money for yourself. Mitch, do you want to start with you? Yeah. Well, I just want to thank you for having Jake and I on. Definitely an honor. We've been longtime listeners of the Canadian Investors Podcast, so we really appreciate it. But yeah, so my name is Mitchell. I'm a part host or co-host of Money Under the Mattress Podcast.

I'm a part host or a co-host of Money Under the Mattress podcast. I've started investing when I was about 13 or 14 years old. I started off in some mutual funds just under my father's name. And then as soon as college happened, then I started getting interested more in the stock market and picking stocks and having a more like Warren Buffett style approach to investing. So I started reading up more on him. And then I guess technically here we are and Jake and I now have a podcast. And I mean, we were friends throughout high school, went to the same high school, and then we went to the same college. And now we're here with the investing podcast. Nice. So you guys are lifelong buddies and then now doing this podcast

together. That's cool. Jake, how about you? Yeah. So I'd also like to thank you for having us on Braden. So I think I started investing about five years ago. Back then I invested in mutual funds as well. And then about two and a half years ago, around the same time as Mitch, we started picking our own stocks, reading up Joel Greenblatt, Warren Buffett, a couple of other super investors, started getting into it. Around that time too, we met a buddy at our school. He was a big options trader. He was doing pretty well at the time. He tried to explain to Mitch and I how the options side of things worked and kind of his strategy. And it was kind of went over our heads because we just started learning about value investing and stuff. And we was kind of went over our heads because we just started learning about value

investing and stuff. And we kind of were more attracted to that side of things rather than the option side of things. He went on to do pretty well during the pandemic with all the volatility. We did not bad ourselves with the value investing side of things. But yeah, it was pretty interesting there a couple of years back during school I learned about options, but also learned about the value investing side of things. Nice. So this buddy, he came to you with the classic trading mentality. What is your first reaction to, I'm a young guy myself, a little bit older than you guys, but this is really common, you see this quite a bit is, hey, I've been messing around in the stock market. I've been trading options or I've been day trading stocks. And I think a lot of people got into it. The amount of discount brokerage accounts that were opened in 2020 was mind

bending. So the Wealthsimples and the Quest Trades, they all benefited from that. But at the end of the day, I mean, it is a good thing. What do you say to those folks who are trying to go down that day trading route and how do you walk them back to, hey, it can be much more simple than that. And the more simple than that version of this is actually a lot more profitable and can be repeatable and proven. So what is your quick reaction to that, Jake? Yeah, it's hard, right? Because I mean, the first guy that we met that was doing that actually does pretty well at it. We were kind of shocked at it. But for most people, I'd say definitely don't try that. If you're going to try that, maybe just set aside some play money. But I definitely try to pick another strategy,

whether it be value investing or index funds, just something more long-term, more of a proven strategy. Yeah. And that's a good answer. It's not that you can't make money doing those strategies. It's just that these are complex instruments and not what you should be doing the first second you open a brokerage account. Yet, if you look at option volume and the amount of accounts trading options within the first month of them being open, the results are quite staggering. So I guess it's just know what you're getting into. And yeah, I think that that's well put. All right. So let's start a conversation on your investing styles. How would you concisely define them to someone in just a few sentences? How about you, Mitch? In a few sentences, me and Jacob talked about this in

the past. It's hard to condense everything into a few sentences, obviously, but we would say is that we take the top investors that we do like, and we take their strategies or their best aspects, and we try to put them into, I guess, a combination and make it kind of our own type of style of investing. So our style technically is started off as value investing. But at the same time, not every investment that we have made is a value investment. We're always considering price on almost every investment that we have made, but we're also looking at the actual growth opportunities as well as the actual fundamentals of the business. And it's not just a sitting rock, I guess, to put it into a metaphor that you're just hoping that it goes out. Nice. So you're looking at a lot of 13Fs

with these super investors, I would assume. Yeah. That's when we started off investing. We just looked at a lot of 13Fs, took a lot of, I guess, inspiration from guys like Monish Pabrai, Lee Liu, obviously Warren Buffett, Charlie Munger, and the likes of those guys, and then put it into our own style. And now we're just kind of looking at great businesses, putting them on a checklist, and then just watching those, or I guess watch this and then just watching those and waiting for a reasonable price. Fair enough. How about you, Jake? Yeah, I say I'm pretty similar because I mean, Mitch do a lot of talking together about

investments. But I'd like to add maybe that I wouldn't say we're complete cloners of the 13Fs. We kind of like to clone the ideas behind the why more. That's the correct way to use them. So I'm glad you brought that up. Yeah. We'll comb through the 13Fs every time it comes out there. And then we'll pick the ones that kind of make sense to us. And then we'll do some more research before investing in it.

We don't just blind copy it. I also like looking at companies that have been successful in the past. And then if I see a company that's starting out, it's kind of cloning the way they run it and it's in the same industry. I'll also look into that. Something like currently I'm kind of looking

at a home builder called DreamFinders Homes and it uses option contracts to buy lots of land. The CEO kind of cloning NVR the way that home builder did things. So I kind of look for copycats in a way. Some of these companies are following in the footsteps of others. How many of these roll-up strategies are now the Berkshire of something, the Berkshire of tech, the Berkshire of insert industry X. And I mean, as cheesy as it may seem, it works, right? A lot of these strategies do work. So Simon and I have been hosting this podcast, as you know, for over

100 episodes. We have a somewhat similar investing strategy in the grain scheme of things. We compare notes. I've learned so much from him and he's learned from some of my ideas. Yet we often, and very do, and this is very healthy, come to different conclusions quite often. Both can be correct, which is great. And that's perfectly normal. But as podcasts show house yourselves and buddies, you guys have been friends for a long time. What do you not see eye to eye on a particular stock or a certain strategy? Maybe you guys just agree on everything, but where would you say it differs a little bit, Mitch? Me and Jake are smiling at each other right now.

Yeah. You guys are grinning ear to ear right now. Sounds like there might be one that's a hot take. Yeah. So, I mean, right now we're pretty well in the same boat on most things for most of our investments. Is there anything that we're not in together, Jake? I'm in Alimentation. You're not. Yeah, true. Alimentation, CouchTard. Oh, yeah.

CouchTard. Yeah, yeah. ATB. Yeah, exactly. And I'm not saying it's not like a bad company at all or anything like that. It's just that I don't know if I got in. Jake got in at a better price than I would have right now. So, and I have been in them in the past.

But no, there's a few companies that I've gotten into that Jake has not gotten onto. And then there's a few companies that Jake's gotten into I haven't. And usually what will happen is a year passes and then we both have the same realization of, oh, I should have gotten into it or I should not have gotten into it. So yeah, I mean, we haven't directly got into too many conflict with saying like, okay, this is a great business that is going over the metaphor of home plate. But no, what would you say, Jake? There's not many businesses that you're looking at that I'm like, oh, no. And then I'm like, I tell you my thesis on it. And then you're like, no, I still think it's a really good business. As do-it-yourself investors, we want to keep our fees

low. That's why Simone and I have been using Questrade as our online broker for so many years now. Questrade is Canada's number one rated online broker by MoneySense. And with them, you can buy all North American ETFs, not just a few select ones, all commission-free, so that you can choose the ETFs that you want. And they charge no annual RRSP or TFSA account fees. They have an award-winning customer service team with real people that are ready to help if you have questions along the way. As a customer myself, I've been impressed with Questrade's customer service. Whenever I call or email, every support rep is very knowledgeable and they get exactly what I need done quickly.

Switch for free today and keep more of your money. Visit questrade.com for details. That is questrade.com. Here on the show, we talk about companies with strong two-sided networks make for the best products. I'm going to spend this coming February and March in an Airbnb in South Florida for a combination of work and vacation and realized, hey, my place could be a great Airbnb while I'm away. Since it's just going to be sitting empty, it could make some extra income. But there are still so many people who don't even think about hosting on Airbnb or think it's a lot of work to get started. But now it is easier than ever with Airbnb's new co-host network. You can

hire a local quality co-host to take care of your home and guests. It's a win-win since you make some extra money hosting on Airbnb, but can still focus on enjoying your time away. Find a co-host at airbnb.ca forward slash host. That is airbnb.ca forward slash host. When we first started out, you were really obsessed with the price to book ratio. And like, I kind of like kept saying like, no, like that's not like what we're trying to do here. And then I was also kind of, you kind of got me into the whole net side of things. And then I

grew out of that. And it was just like, at the start, I found we like disagreed a lot more than we do now. I feel like now we're kind of on the same track, but I'll shoot some investment ideas at Mitch and he'll knock me down. And I think that's really good. Yeah. You guys have your own little committee. So that's cool. No, that's good, man. It's good to have people to bounce these ideas off of that you at least know in person too. And I think that when it comes to money, money is such a taboo topic for some strange reason. I've never understood that. Obviously, as a podcast host, I've never really thought it was difficult to talk about, but a lot of people do. So a lot of people who might listen to this

podcast might even listen to your podcast, don't talk about money you are investing to anyone that they know in real life. So that's nice that you do have that, but it's also nice that these podcasts do exist. So I think we live in a golden age of information. So you guys are based out of the East Coast. Are there some Canadian coasts? I know we just talked about Couchetard that excite you at this current level. And I don't mean like, yeah, I own them, but you think even if you weren't in Canada, that you would pitch to a US investor, say it's like Canadian only listed. Something here that you think is really exciting and interesting out of Canada. Jake and I are both in this.

It's a company that we've owned for a little while now. It's called Actable Bank, EQ Bank. You might see a lot of ads on them. If you watch YouTube or anything like that, they're always posted. I've owned shares for years, by the way. Yeah, I think that's how we kind of met. We talked about EQ Bank at the start a little bit. But yeah, Equitable Group or EQ Bank, EQB,

we've owned that for a little bit over a year now, Jake, would you say? I was a little longer. It was during the pandemic that I bought originally, but I kept adding along the whole way there. Yeah. And we just think that they have a strong competitive advantage over the big six, just based on the interest rates that they're giving, as well as the access is very accessible, user-friendly base. So that would be the one Canadian stock that I would pitch to a US investor. What about you, Jay?

So I work for one of the big six banks and I kind of have like an insight into how like things kind of work there. I'm not like saying I'm an expert or anything on it, but I kind of see how annoyed some of the customers can be over certain things. And then I look at something like an EQ bank. I think it's an awesome bank. There's no brick and mortar. You guys like the product.

Love the product. I like the management. And I just see it going more that way in the future. So they have a pretty big- Just completely digital. Yeah. Yeah. When's the last time you stepped in a branch? Only when shit goes south, you got to go there, right? Yeah. I'm guessing you're familiar with Peter Lynch.

Of course. We had a Peter Lynch style to it. So if you read the book, one up on Wall Street, when he talks about how his wife, I believe, was the one that found lags, was like the lagging company or paying company, I forget exactly what it was. And it was a very similar approach that me and Jake both loved EQ Bank. And then one day Jake said, I wonder if they have a stock. We looked more into it. It happened to be public. And we said, this is selling cheaper than all the big six banks right now. It still is to this day, I believe, on a PE ratio, I guess. And we just liked that they had strong growth potentials. The growth in deposits has been exceptional.

Yeah. Really? Especially the digital deposits, 100%. I kind of fluked my way into owning the stock. I think I was telling you, Mitch, my cost basis on it is like 34 bucks or something. Yeah. Yeah. So I am not a special situations investor at all. I've invested in one special situation and it's the EQ Bank. If you guys are familiar, I think it was 2017, I would have entered it. Home Capital Group got the lifeline from Warren Buffett. There was all kinds of issues.

Stock fell 50%, 55% in the matter of a week. And so did their biggest competitor, EQB. And this was at the time where EQB was a very similar business, a non-prime lender, very attached to the Canadian real estate market. And they're building this digital bank on the side. So I figured there's no way their biggest competitor who is completely not affected by this whatsoever should be trading 55% lower in the matter of a week. It was a hell of a trade, but I just kind of fluked into my way into that. And this goes down to, there was this narrative developing about the digital bank. This is actually a pretty good business. I hardly knew anything about the business when I bought it. I got to be honest with you. But it goes down to

that, why sell it? I mean, don't sell things you just don't have to. Let them compound. So I haven't bought another share since. And I mean, check what the stock is at today. I mean, it's been an incredible performer. So I'm glad you brought that one up. And I mean, what is it like 3 billion in market cap? Less than that? It's two something. It's two something right now. I think it has some room to run for sure. Yeah. So I mean, there's little opportunities that come up that, I mean, you just go for it. So, okay. Glad you brought that one up. All right. So, you guys are smart for doing the podcast. I obviously think podcasts are amazing and you guys are learning from smart people because

your podcast is primarily like an interview style, correct? Yes, exactly. Yeah. We kind of bring on, our guys are a lot smarter than us. So we get to sit down and talk to people. I guess the brilliance of Twitter pretty well for an hour. And then we get to post it and have the likes of other people want to listen. So you guys are like hyper-scaling your knowledge, just being a sponge. I think that's smart. What was the best piece of advice or perhaps investing wisdom given to you from this experience on all the guests that have come across? And if you can't narrow it down to one, maybe two, we'll start with you, Jake. I wouldn't say it's particular advice. Having all these different people on and seeing how

each single one of them has their own expertise in different industries was really cool. And it kind of got me into the realization that maybe stick to one or two industries and not try to go into a bunch of different ones. So it was kind of like I heard a lot of great things from a lot of great people on a podcast. but I kind of took away from those podcasts was that stick to the industries you understand, because hearing how they did in certain industries and the ones that they knew the best was the best they actually did performance-wise. So I think that's what I kind of took away from the whole experience so far. Right. So kind of just staying in your lane, not casting as wide of a net. Before we go to you, Mitch, what is your stance on, say you're not an expert in cloud computing? Are you then trying to learn as much as you can behind the scenes before you can

really think of any of them as investable ideas? How are you thinking about something like that? I probably wouldn't invest in a cloud company that just does cloud. If it was something like an Amazon where it had cloud and e-commerce and other types of businesses, I would invest in something like that if I understood the other types of businesses. Or like an Alibaba where they have e-commerce along with the cloud side of things. But just a company that does straight cloud, I probably wouldn't invest because my circle of competence around cloud is not as good as it could be. Okay. Fair enough. So like with Amazon, for instance, you're getting this like probably deeply discounted cloud business with buying Amazon and having kind of a call option on the cloud by owning Amazon. That's the way I think about AWS

anyways. And you rip that thing apart into a separate entity and it's worth a trillion bucks in a few years. It doesn't take much to get there in terms of valuation. How about you, Mitch? How are you thinking about this? And what was the potentially best piece of advice or wisdom that you've got from interviewing all these smart people? Yeah. I mean, we've had some extremely smart people come on that have given us a lot of advice. So it's pretty hard to narrow down to like the best piece of advice, but I find, yeah,

like to just kind of bounce off Jake's ideas. I like, you learn very quickly. What is your circle of competence when you're trying to interview somebody? So like, we'll have somebody come on. We've had guys talking about the tobacco industry all the way to like a

person that worked for a big tech company and talks all about cloud and AWS. So trying to prepare questions and understand a business or an industry a couple days in advance, then you'll understand very quickly whether or not that is your circle of competence. And if it's something that's even an interest to you. So I found that's been very helpful. And yeah, definitely to narrow down on only a few industries. That's all you really need to you. So I found that's been very helpful. And yeah, definitely to narrow down on only a few industries. That's all you really need to know. Like a guy like Francisco Oliveira, if you're familiar with him, he just looks at media businesses. That's all he looks at. And he's done very well for himself. I've learned from that is I don't need to know financials. I don't need

to know financials. And then like another couple of industries, if I just wanted to learn just financials, that's totally fine. And If I just wanted to learn just financials, that's totally fine. And there's a lot of pitches that can come by that I don't need to swing at that are full industries. I just got to wait for just one good business that I definitely understand. That's been the most helpful thing that I've learned. And then just DMing back and forth between different individuals that we've had on the podcast has been very helpful. But yeah, it's definitely pretty hard to narrow down to one specific piece of advice, other than just a couple of guys have said, stick to six or seven businesses that you really enjoy

and has a long history. Learn from them and see what other businesses are cloning from those six or seven top businesses. Okay. Yeah. So there's a similar theme that's sticking out. And potentially, it's from a similar theme of the guys that have been on the podcast so far is stick to a more narrow search for great businesses and don't worry about the ones you might miss. I could probably learn something about that, but I think it's just my personality to be just infinitely curious about other industries. And again, that brings up another point, right? That's what I'm comfortable with and it sounds like versus what you guys are comfortable with. And that's really what's important here is that you're going to have

the best results if you execute the strategy that works for you. Even if you guys are like, me and you are invested in completely different companies, we can both absolutely crush the index on a long-term performance basis by investing in the thing that makes sense to you and the one that you're actually going to be able to repeat. Because repeatability is everything when it comes to long-term success. All right. So let's hit the drawing board with some high conviction ideas. We'll

start with you, Mitch. I'll throw one out there that I've done quite a bit of research on. I've done a write-up on. It's Boston Omaha Corporation. Definitely been exciting today, especially it's up. What is it? Like 17% Jake? Yeah. It's up 17% today. Up 17% today. It's up like 20 something last couple of days. Yeah. So it's not,'s i'm not sure exactly i'm guessing just a big fund is starting to kind of maybe possibly get into them pitch me like a five year old because i don't know the name at all by the way perfect okay so hypothetically if you're five you might know warren buffett um so warren buffett's grandnephew is actually a co-ceo of

this company uh alex rozak so that kind of piqued our interest immediately. They're called Boston Omaha Corporation, hence the name. One of them's from Boston. The other one's from Omaha. And actually, Warren Buffett's great nephew is the one from Boston, actually. That's ironic. Yeah. And so they're very similar to a Berkshire.

I call them the younger Berkshire on my sub stack. They own a few businesses. One of them's a big advertising. So billboard, there's static billboard, and then there's also dynamic billboard. I believe they're called the moving ones. So they own that. They partially own a company called DFH that Jake's already talked about, which is a home builder, which they use option contracts to use home building. So if anybody's familiar with something like that would be, what's the home builder? Sorry, that used option contracts, Jake. NVR. I was going to pitch that after DreamFinders. Yeah. So they partially, they own, is it 10% stake, Jake?

I'm not sure if it's 10% exactly, but it's about 110 million or so. Yeah. They own quite a bit of DFH, which uses office and contracts just for the actual home building. It's a conglomerate, small Berkshire type of holding company, even some family ties. What's the growth profile look like so far on just top line? I'm not actually sure the full numbers on that. Right now, they're in very early growth stages. So they just turned profitable as of last like couple quarters they're growing the top line yes well it's it's not as like easy as like it having one like reportable segment like it has

some like operating businesses and then it also has like a decent sized stake in dream finders homes and it has a couple other investments like that but they got hit half decently hard during covid because not a lot of people were paying for advertisement and stuff and they were kind of budgeting down there. Going forward... People weren't driving. So they're not going to see billboards. Exactly. And then the surety bonds. They also own a surety insurance business. Sorry to cut you off, sir, Jake. They own a surety insurance business. So in other words, what surety is, is insurance for contractors.

So they don't default on if you're halfway through building, let's say if you're rebuilding a roof, then the contractor can't just leave halfway through and then you have half a roof. So that's exactly what surety insurance is. So you get money either way, technically speaking, because they pay a premium as well as if they have to take the loan out for the actual surety, the contractor needs the money. If they do default, then they'll have to pay back that actual surety loan. As do-it-yourself investors, we want to keep our fees low. That's why Simone and I have been using Questrade as our online broker for so many years now. Questrade is Canada's number one rated online broker by MoneySense. And with them, you can buy all North American ETFs, not just a few

select ones, all commission-free so that you can choose the ETFs that you want. And they charge no annual RRSP or TFSA account fees. They have an award-winning customer service team with real people that are ready to help if you have questions along the way. As a customer myself, I've been impressed with Questrade's customer service. Whenever I call or email, every support rep is very knowledgeable and they get exactly what I need done quickly. Switch for free today and keep more of your money. Visit questrade.com for details. That is questrade.com. Here on the show, we talk about companies with strong two-sided networks make for the best products. I'm going to spend this coming February and March in an Airbnb in

South Florida for a combination of work and vacation and realized, hey, my place could be a great Airbnb while I'm away. Since it's just going to be sitting empty, it could make some extra income. But there are still so many people who don't even think about hosting on Airbnb or think it's a lot of work to get started. But now it is easier than ever with Airbnb's new co-host network. You can hire a local quality co-host to take care of your home and guests. It's a win-win since you make some extra money hosting on Airbnb, but can still focus on enjoying your time away. Find a co-host at airbnb.ca forward slash host. That is airbnb.ca forward slash host. Got it. Jake, how about you? You got a home builder for us?

Yeah, I got DreamFinders Homes. I got a really small position so far. It's kind of just a starter and I'm still kind of in the midst of doing research. But basically what it is, is back in 08, the CEO, Patrick Zabulski, I think I might have butchered his name there. But what happened was back in 08, he kind of got caught in that crisis there, the financial crisis. And he was thinking to himself, like, I want to find a way so I don't get killed on something like this again. So he studied NVR, which is a pretty big home builder in the States there that uses option contracts for the land. And basically, he studied that business and kind of copycatted it. And then they started off with like one house and then kind of built its way up and DreamFinders Homes. And now they're doing, they did about a billion,

I believe or so in revenue last year. But what had happened was how good on my radar was back in 2017, Boston, Omaha made a purchase for 10 million in them. And then their stake grew after the IPO in late 2020, grew to 110 million. So they 11x'd it in three years. So it kind of got on my radar. And I had read more about NVR in the past because it was a pretty famous VIC write-up, but then I got digging into it. I read it a bit more. I realized that when they use option contracts on the land and don't actually outright own the land itself, they can get higher inventory turnover, which will lead to higher returns on capital. They also recently just partnered with Boston Omaha's fiber optic company.

And they're going to be starting a partnership where the fiber optic company from Boston Omaha is going to be wiring up the houses there. So they all have fiber optic cables in them because a lot of times the homeowners by the houses are shocked when they go to move into their houses and there's no fiber optic internet for them. So it's kind of like a cool deal there. But yeah, I'm kind of in the early works of potentially maybe doing a write-up on it. But yeah, pretty excited about it. You guys are quite into this connection between what's going on with Boston Omaha group and potentially some companies that they're invested in and that

it sounds like are also publicly listed. Yeah. Since Boston Omaha initially invested them in 2017, all the way up until their, whatever the valuation is now of 110 million. It's IPO'd last year. DFH did. Got it. All right. Moving on. What do you think is the single most important personality trait that makes a good investor? We'll start with you, Mitch. I guess technically just being rational. That would probably be the number one I'd say is being rational and understanding what you don't know. Don't be scared to be like, I don't understand cloud computing and really waste a

bunch of time when it's something that you really won't understand. I mean, obviously you can learn up on it, have fun with it. I'm reading up 10Ks on businesses I'll never invest in, but it's just to learn from. I'd say the number one personality trait would just be staying rational. Good answer. How about you, Jake? I remember reading in the Nomad Partnership letters from Nick Sleep. I think it was Bill Miller in there talks about, or he writes up about Bill Miller, I believe it is, talks about how there's like three advantages in investing. There can be like the informational, the analytical, or the behavioral. And he said that the informational tends to be pretty hard to come by because usually it's like insider trading. And then the analytical, sometimes it

can happen, but most times you're not probably going to outsmart someone because there's a lot of eyes probably looking at things. But then there's the behavioral thing where no matter how smart you are, if you don't have the behavioral side of things, you probably won't end up being that good at picking stocks for the long run. So I think it's the behavioral side of things. Yeah. And I think that that's a good point to bring up, right? When it comes to analytics, I'm an engineer myself. I'm good with numbers. I'm good at the analytics. It helps me paint a story that I think is important about each company. But at the end of the day, I don't think of it as a huge, particularly large edge in the information age when basically efficient market hypothesis would say that everyone already has all that analytics right at their fingertips.

And it's getting more easy for that analytics and data to be right there available for you, which is a very good pitch on stratosphereinvesting.com. That is where it is so easy to find 10-year financial statements, metrics, ratios, analyst reports, you name it, right there for you. You bring up a good point, right? Because that stuff's important and you have to know it and you have to have that in your arsenal and you have to know the numbers. But at the end of the day, it's really going to come down to when March 2020 rolls around again. And it will. I mean, we've seen, it might not be a pandemic, but it will always be the next thing that stirs up the market, creates volatility, and honestly just creates fear. And that's when opportunities arise is when the entire market is selling off. And there's really

no confusion around what's happening when the entire market sells off. It's not like an individual holding that's selling off, that's creating fear. Is there something I don't know? When it's the whole market, it makes it really easy to just say to yourself, how can I act rationally? So I think that's a good answer. All right, Jake, do you want to give us a handoff on your podcast? Yeah. So my Twitter handle is at buyinghibernate or underscore buyinghibernate. What about you, Mitch? Yeah, my Twitter handle is Mitch Jensen underscore. You can basically find us at Money Under the Mattress. We're on Apple Podcasts, Spotify.

We have an Instagram account, Money Under the Mattress. Yep. Yeah, we also do visual just over on YouTube. Beautiful. Thank you so much for listening to another episode of the Canadian Investor Podcast. We're coming at you with that two episodes per week, Monday mornings, Thursday mornings. We're mixing in interviews and the usual programming with Simon and I talking about investing concepts, individual companies with a Canadian spin, of course. So thanks so much for

coming on the show, guys. Appreciate it. Well, thank you very much for having us on. Thank you. The Canadian Investor Podcast should not be taken as investment or financial advice. Brayden and Simone may own securities or assets mentioned on this podcast. Always make sure to do your own research and due diligence before making investment or financial decisions.