The Canadian Investor - Saving More to Invest More and Intuit

Episode Date: July 11, 2022

In this release of the Canadian Investor Podcast, we cover the following topics: Braden goes over why Intuit is a great business Simon goes over ways to manage the rise in costs in our daily lives and potentially have more money to invest We finish the episode by looking at how Canada’s GDP has evolved in the last 6 decades compared to the rest of the world. Tickers of stocks discussed: INTU Check out our portfolio by going to Jointci.com Our Website Canadian Investor Podcast Twitter: @cdn_investing Simon’s twitter: @Fiat_Iceberg Braden’s twitter: @BradoCapital Sign up to Stratosphere for free 🚀 our platform for self-directed stock investing research. Register for EQ Bank, the seamless digital banking experience with better rates and no nonsense.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. How we doing?

Today is July 7th, 2022. My name is Brayden Dennis, as always joined by the great Simon Belanger. Simon, we got some good stuff on the slate today. It is the end of an absolute content marathon today. We are talking Intuit. I'm going to do a little shallow dive on Intuit. You're going to talk about some personal finance stuff when inflation's eating your lunch, no pun intended.

And then I'm going to talk about Canada versus world GDP, seeing how we have matched up on the global scale over the past like 40-ish years to the day it goes back. How are you doing, buddy? How are you feeling today? I'm feeling good. Just excited, yeah, to be done with our recording marathon. It's been fun, but it's been a lot of work. So it'll be nice to have a little time to decompress a little bit of each on our side. I'm going to be drinking wine in Portugal and chilling out. It's going to be wonderful. Let's get right into the content today. So I'm going to start with Intuit, ticker I-N-T-U. It is a US listed stock. I'm going to go through a breakdown of what they do. As you know, it's kind of a shallow dive. I tend to do these every once in a while, and I think people like them. So it's fun to learn about new businesses if you're not familiar with

it. Let's get into it. Is that good? Is that good? That's my little drum roll or whatever. Yeah. Yeah. Oh, God. I'm not even, I'm pulling out the dad jokes before you. Okay. All right. Sounds good.

Actually, before you get started, I feel like what percentage of the population do you think has interacted with one of their software whether they're business owners whether it's on a personal basis that's something i'd be interested in knowing like the canadian population well now that they acquired mailchimp since i would venture and say a hundred percent of people have been sent an email from that platform well yeah i yeah, I'm going to say, okay, let me rephrase that more like have purchased their products. Okay. Like a TurboTax, QuickBooks, Mint, Credit Karma. Well, QuickBooks is quite dominant in the field and so is TurboTax, more so less. I'm quite bullish on QuickBooks and it's their flagship product. It's their largest by revenue segment. It's growing really fast, although it's their flagship product. It's their largest by revenue segment.

It's growing really fast, although everything's growing really fast. It's a good question. Like so many people have interacted with this stuff. If not, almost I would venture and say most small businesses definitely have. Yeah. Yeah. Like we've used obviously QuickBooks and it works very well. I think it's a very intuitive software. You don't need to be like an accountant and years of experience to be able to know how it works. You definitely need a base, I would say, but still it's very easy and interconnects with everything. Yeah. And I'm going to talk about those competitive advantages, not to mention like the support is so good. If you have a problem, you just like do the little chat box,

you enter in your number and someone instantly calls you. Oh, really? Okay. How nice. That is a breath of fresh air. And not someone like who like may or may not know the platform so well and like some offshore worker.

It's like someone like legitimately local being like, hey, and I know everything about the Canadian tax code and stuff that's very important for a Canadian business too, right? They have this insane customer service across the world who are local to help you with the issue. So it's cool. All right, let's get Intuit. I'm double dipping on my joke here. So Intuit continues to seek new ways to seamlessly integrate their products. It is TurboTax, QuickBooks, Mint, Credit Karma, and MailChimp. Those are the five big logos underneath their brand. And each product standalone is growing at very strong double-digit growth rates. And this probably justifies the valuation.

You know, it's quite an expensive stock. And this is off the back of a huge, like over 30% drawdown with the rest of tech. Today, it trades at 43 times earnings. Sorry, that's 43 times fiscal year earnings. So there's some growth projections built into that. Total revenues grew on their latest quarter print 35%. And that was now including the MailChimp acquisition. If you back that out, it's 29%. So still almost 30%

growth across the TurboTax, QuickBook, Mint, and Credit Karma segments if you back out the new acquisition. We're not talking about just some slow growth name here. That's pretty impressive. Their flagship product, QuickBooks. Man, the other products are cool and whatever, but if they spun that off, I would be a shareholder. It is the largest segment, and so you could probably just justify it enough to get long into it if you want it to get long QuickBooks. But if they spun that off, I would be like, all right, I'm in. They have massive market share, easy to use platform, many business owners. And it's just insane how dominant the platform is. I use QuickBooks for Stratosphere. We use QuickBooks for the podcast. And there's a nice moat with SMBs

and integrations with accounting firms. Because say, for me, I don't do my year-end tax and my year-end accounting, but I do all of my bookkeeping and keep track of my transactions all year long in QuickBooks. And that's nice because whether I did want to do it myself or outsource bookkeeping, and then year end do my like professional accounting, they are all well equipped and very familiar with QuickBooks online. So like it is the de facto for SMBs, but also the professional accounting community, which is really a nice network effect that's quite hard to reproduce. So there's that ecosystem network effect, which is nice. There's really beautiful integrations between the products, like whether it's the

mint personal finance platform or, or you doing your, your accounting and QuickBooks, they just have this integrations mode across all these other platforms and all the financial services that exist out there. So like, you know, when you're setting it up, you set up with the credit card, set up with our bank, all the transactions come in. Like, I think you, did you do it? It took you like one click, right? And I've done it too. Yeah. Yeah. Yeah. I did it. And I definitely, there's a few things I wasn't sure. And that's what I was going to add earlier when you said their customer support. What I found was really good is on YouTube, they actually have videos for almost everything, but they also have videos for Canadian businesses, UK businesses, US.

It really helps you because it'll be slightly different, right? Especially when you get into the tax section where it'll calculate your sales tax and things like that obviously it'll vary from country to country or even provinces to provinces if we think about quebec here in canada so no i found it very very easy to use and the stuff i wasn't able to figure out i was able to quickly find some tutorial from them on YouTube. Now there's a lot of switching costs and just beauty of the platform having it in one place too as well because all my employees get paid on QuickBooks. So it is also a payroll software, which is nice to have it in the same thing that's tracking all your expenses, right? Like that's just a nice thing to have. And so that's a really, really

key part of the product. And again, like you speak of that and, you know, there's nuance between each country. Like if I have to file a record of employment, that is with Service Canada, right? Like that's a different system than if I'm a US employer or employer in Portugal, where I'm going to be very soon. And I clearly keep talking about it. You can tell I'm excited. where I'm going to be very soon. And I clearly keep talking about it. You can tell I'm excited. Like, you know what I mean? Like there's nuance to this and they have that covered and that's hard to compete with. It really is. Yeah. And for those, I actually set record of employment and obviously I have an HR background, so I don't know that quite well. So for those of you are not familiar, basically whenever there's a change in employment, it could be an employee, you know, leaving the job or being let go, going on maternity or parental leave. You have to send record of employment, which is an overview of the earnings over the past year to Service Canada, because some employees may be eligible to certain employment insurance benefits. It could also be an employee if you don't have benefits with your business, they're sick, so they can get a record of employment and they can get sick leave benefits from Service Canada.

So that's why it's really critical to have that as a business because it is a legislative requirement. Yeah, that's good. Right. And now you're introducing that kind of like regulatory stuff too. It adds complexity and like a bit of a defensible position for the company. All right. They have lots of pricing power because I used to pay like two months ago or three months ago, I used to pay $2 per employee, per active employee on top of the like monthly fee. Now it's four. They just doubled it. What am I going to do? Like, it's

like, it just is what it is, right? Like it's just some cost that I'm going to soak and it is pricing power and they can just keep kind of doing that, right? Like I like these companies that have levers to pull with their existing customer base. It's just such an advantage to have, right? I talked about the onboarding and support. It's just really good. Like it's just high quality. And this is not, there's like some giant QuickBooks commercial,

although it sounds like it, they have their different services here. And from an investor perspective, I'm just thinking about getting long. Like we did a report for Stratosphere and just looking at the metrics, it's so good. And so market cap, $113 billion, which is pretty expensive. Trades at 45 times trailing price to earnings, almost nine times price to sales. Earnings per share has grown 20% year over year. Sales grown over 15%.

Crystal clean balance sheet, net cash generates lots of cash, wonderful software margins. You can expect gross margins over 80%. It pays a dividend. One of those rare tech companies that pay dividends. It's a small dividend, but it's one of those nice recurring revenue type companies that can afford it. And they grow it. Their dividend looks identical to Microsoft's. It's very small, but grows very aggressively. And SaaS recurring type business. So it's very like for like from a dividend perspective. Stocks on a drawdown. It was really expensive.

And it's not a cheap stock today, but at forward earnings, I think you can justify it. And it's not like it's gonna be slowing down anytime soon. I don't see that happening. And I like these types of software businesses that dominate a professional or at least pro consumer market. They dominate this SMB area. The products are excellent. And so I think doing more work on the company, I think I was critical of the MailChimp acquisition. I'm like, why are they paying

10 billion for this marketing platform? But who are their customers? It is SMBs who are running email marketing. And so from that perspective, it's worth a lot more maybe to Intuit than a standalone with MailChimp. And so, yeah, I think it's an interesting company, man. Yeah, I remember you were critical. You were actually quite critical

of the acquisition when it happened. But when did that close? You remember? It would have been, I think it closed in Q4 of last year, but I could be making it. Here, I'll tell you right now, MailChimp, Intuit, deal. They completed the acquisition, yeah, yeah, November of last year. Yeah, I think it must have been announced like in the summer, around this time last year, I think, or maybe a bit more late summer. Yeah. And now when you go on MailChimp.com, it's like into its little logos above it, right? Yeah, it's cool. This is a beautiful landing page. This is just really well done. I have a real appreciation for nice looking websites. This is a good looking one. So yeah, that's the primer on the company. I don't own it. I think sometimes maybe I should. It's just a lot of good things going for it. Again, this is just a very shallow dive into the company.

And there's obviously more to discuss. But things look good. Yeah. No, I mean, I knew they had some nice growth. And honestly, I didn't think they'd be affected by some of the, you know, lackluster results we've seen in the tech world in the past six months to a year, just because, you know, it's very sticky, like you said, short of having a massive recession where businesses close left, right and center. I don't think they should see too much of headwinds going forward.

I don't think they should see too much of headwinds going forward. Again, it's not impossible that they see growth slowing down, but I think it would take a pretty bad recession for them to see that. And then they still have other products like TurboTax where, you know, even where if we're in this recession, people will still need to follow taxes. I was talking with Adrian and he wrote the report for Stratosphere on Intuit. And he's like, man, I'm having a really tough time coming up with a bear case. I just see more of the same for this company and I'm continuing to grow. It's so sticky. Of course, there's risk with every company and probably maybe the valuation stands highest at the list of how do I not make money on this thing? But from a business perspective, it's rock solid. Yeah. No, I think I agree with that.

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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. Let is Airbnb.ca forward slash host. Let's get into your segment here. This is top of mind for a lot of people, right? You're looking and you're like, I used to have this many dollars at the end of the month to invest and to do whatever. And I don't have as much anymore, maybe because my gas and my food and my everything's so expensive so what are you doing to kind of combat that with your in your in your life and I I'm happy to chime in on here I've been doing some stuff as well it's dude it's actually very noticeable yeah yeah it's definitely noticeable and the reason I wanted to talk about that is

because we've talked in the past you know know, you know, get some extra income in and it's not always something that's easy for everyone. You know, people may have families, they just may not have a lot of time or if they try to get that extra income, they may need, you know, they have kids, they have to get additional expenses for daycare and stuff like that. So I think finding ways to just save a little bit of money can go a long way because we do talk a lot about returns and trying to beat the markets and that's all nice and dandy. But one of the biggest things you can do to boost your, you know, the money that you'll have for your end game, whether it's retirement, whether it's another goal, is just being able to invest

more. I think, you know, I think that's really important. You know, returns are great trying to, you know, double your money in 10 years. That's great. But if you have a bigger base to work on, it's going to go even a longer way. Now, totally agree. Yeah, I wanted to start with a little kind of story because I went like we talked about in a recent recording. So I went to the casino recently and it's on the Quebec side here in Ottawa is the one that's run by the Quebec government it's called Casino de la Clermont and I was on a table and I started to talking with one of the dealers which of course they rotate and I asked him like why is there only seven poker tables open on a Saturday night when there used to be 14 to 15 tables open on Fridays and Saturdays because you know people get pretty tipsy they go to a show in the theater

and then after it's done around 10 30 11 they want to jump on the poker table and just gamble a little bit so he told me and that will probably not come as a surprise that tons of dealers ended up quitting during the pandemic and never return and they're still trying to fill those spots so those labor shortages they are seeing it as well and he then said something really interesting he started talking about inflation unprompted i didn't tell him i did a podcast or anything like that awesome and then so good said that because of that a lot of people just don't want to work unless they make $25 an hour. And I had a look on the job poster of the casino side and the job starts at $18 an hour and the minimum wage in Quebec is $14.25. So granted, you also get tips, but that's variable. So you know, inflation is a problem when

your poker dealer is actually talking about it. Like I didn't even chime in. I just let him talk because I just was curious to hear what he would be saying. And I don't think he was way off with his assessment, though. People are seeing costs rise and it's a competitive labor market so if they can't get a wage in their eyes that's worthwhile they'll find a job that will pay more or you know i know sometimes people may try to get social assist and then get some money on the side to kind of supplement that i don't know obviously just speculating here, but I think it was just interesting to hear him talk, get his perspective. Clearly, he didn't have like a super big knowledge of inflation, but just getting that I thought was fascinating. I look at like $18 an hour for a casino, like for a dealer. And for some reason, like some of these people are so pro.

I'm like, oh, these guys must make more than that. But that seems kind of low to me. Yeah, well, it's a range. It's a range. So it starts at 18. Yeah, it's 18. so pro i'm like oh these guys must make more than that but that seems kind of low to me yeah well it's a range it's a range so it starts at 18 yeah it's 18 and i think the poster said it topped out at 28 i think if you got a lot of experience and every once in a while someone's winning big and they just like throw you some like huge chip yeah like that that helps it quite a bit as well yeah and it's pretty customary in poker when you win a hand that's somewhat significant, you tip the dealer as well.

So they and blackjack, you know, that'll happen too. But, you know, I thought it was really interesting. And then, of course, as everyone know, the official CPI figures in May, well, overall costs increased 7.7% and gas increased 48%, food 8.8 and shelter 7.4 so these are the official metrics and of course i know everyone is affected in different ways here by increases depending on you know what they do in their everyday life and i think the story that the dealer was telling me definitely reflects that and i mentioned those three categories because chances are, you know, these will be touching you on some level. It might not be the same for you compared

to me, Brayden. It might not be the same for us compared to our listeners, but it will obviously be affecting you because, you know, you have to eat, you have to have shelter and gas. I mean, I think there's some way to go around it, but for some people, it might be a bit more difficult. For me, it's easy. I eat dirt and ramen Monday to Friday, and then I did a 24-hour fast on Tuesday. No, all jokes aside, this is noticeable at the grocery store. Exactly. So I'll do the three main categories I talked about. After each category, I'll give you a chance to chime in if maybe you have some other tips that you've put in place. But for food, of course, everyone's been feeling this. Some food item may be cheaper in certain part of the country, of course, but as a

general rule, the more your food travels, the more likely it will have increase in cost since the price of diesel has gone way up and the price of fuel in general. So first thing I would say, consider eating out less or ordering food less often because that's a luxury. I love ordering food myself and I love going out to eat, especially after multiple lockdowns where we were two years without much opportunity to go out to eat. But it's more expensive than making food at home. So you can just save by you know maybe not cutting completely out but maybe reducing the amount of time you order food or you go out to eat the second one is just eat vegetables and fruits that are in season and just haven't traveled as

long in terms of distances to get to where you are and you might need to change what you eat a little bit on a seasonal basis but some produce will be less expensive than others depending on the season if you're willing to be flexible here you can definitely save money consider frozen the real trick is to go through the self-checkout and everything's bananas yeah on that i mean i know the grocery store near here oftentimes they'll have fruits and vegetables off because they've been there for a while. So if you're looking to eat them pretty quickly, you can save on that. The good old 50% off enjoy tonight sticker.

Yeah, exactly. That's my bread and butter baby right there. Yeah. And another one here is considering frozen fruit and veggies. So I'm not a fan of frozen veggies, but I've done this with frozen fruit. We always have a bag in our freezer. It's not as fresh. I get it, but I still, you know, I still enjoy them. It does the job for me. I still get my antioxidants and stuff like that. And then the most important, the one that I think people can really, really save on is eat what you buy. So I looked up some figures and on average, about 30 to 40 percent of

the food that is bought is actually thrown out. So simply eating what you buy will go an extremely long way to save you money. And I think that's something well, that's something we've been trying to do. And I think we've been improving on it we still throw out some stuff sometimes because we just forget it's in the fridge and it's like in the back and then it's like oh yeah that life happens yeah exactly that was white it's not supposed to be green now but we definitely broccoli is brown i don't know about that but essentially what we do is we just try to go to the grocery store a bit more often for us it's walkables so we don't have that extra cost of gas and we try to go a bit more often and just buy what

we'll be eating the next few days and then that reduces the likelihood that we won't eat it yeah i love this this is good this is a lot of other benefits here just like health wise i feel like across the board in your next segment too as well. Yeah, exactly. So gas, that's definitely, you know, it may be more applicable here to some than others. Of course, depending on where you live, you may not have much wiggle room. So if you live in a large city in Canada, public transit, I know we complain about it, but it's probably, you know, pretty good. I live in Ottawa and although fares have increased this year, they increased 2.5%. So it's much lower than the gas increase. The other thing that you could do if you public transit is not necessarily an option is consider carpooling when going to

work or going to events with other people and consider alternate modes of transportation. I know you talked about that, how you like biking, but look into cycling. I mean, this will definitely improve your health if you're not that active. Even if you factor in the cost of a kind of not-too-expensive bike, the current prices of gas,

you'll probably make that up pretty quickly, and of course, you'll get a good workout. Dude, I don't anymore because I work from home. I used to commute via bicycle and I don't know, it's more of a weather thing, but it's also like in the back of my mind for a fuel thing, I've been biking across the city. Like, man, it's so much faster and you get a good workout while it's nice out this is the season man keep the car keys at home get on the bicycle it's a beautiful thing it actually the endorphins when i bike it just makes you just feel so good and it's easy on your joints too yeah but i'm preaching to the choir i

know you're a cyclist yeah exactly so i love cycling i have a mountain bike but also a road bike so i will do both and i definitely use it from time to time for commute because obviously I work from home most of the time. So that commute is pretty easy when I just have to get up and go to my desk. Just do a cycle around the block. Okay, I'm home. I'm ready to go. 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. The last one here is just shelter, right? So everyone needs a place to live in. And of course,

you know, this, there might be some things that can apply more to some than others. But first thing I would say, consider getting a roommate or renting one of your spare rooms if you have an extra one. Another idea here would be... This is assuming you're like, like on your own. Yeah, obviously. Exactly.

But, you know, you could... See, well, I'm going to get you a roommate. You, your wife, the new baby. It's going to be great. Yeah. I mean, but you could have, you know, couples that have a two bedroom that you're like, you know what? We can make it work with just one bedroom for us and have a roommate, someone we know like there's it could happen. Another idea here would be to rent a house with multiple friends or family members to reduce the cost. You rent a whole house, several rooms, and then you split the cost. I know people that have done that in the past.

The other one, consider moving in with a roommate versus having a one-bedroom apartment on your own. Usually, you'll pay less for a two-bedroom apartment divided into two than a one-bedroom solo. And are you working from home? And is your employer flexible on your work location? I think that's really appropriate for right now, because if you are, then think about moving to an area that's less expensive, especially if you're solely a remote worker. I know a lot of employers now will basically give you the choice of where you want to work. It might just be within Canada. Some employers may give you the flexibility even in several countries.

But you could be really strategic, especially if you don't have a family, you're single or you're just a couple and you're both open to it. It can really make a big difference in the long term here. Man, I so back that because I don't know why. Like, I think I want to for this winter, just go live in like Costa Rica and just like live an awesome life. And it's so much cheaper. And then come back for when it's awesome up here in Muskoka. Like, I totally get why people do that.

It's awesome up here in Muskoka. Like I totally get why people do that. And I'm really debating that for this winter, not only from a personal finance perspective, but like it's nice there, man. It looks pretty nice there. Maybe I'll be doing the podcast from Costa Rica in the winter. Let's see what happens. Hey, that'd be sweet.

But all these things, I mean, if you can even reduce your expenses and are able to get an extra just $50 a month to invest. I just crunched a few numbers just to see the difference it could make if you're looking to save for retirement and say you have 30 years in front of you. And I gave different types of returns just to show that you don't necessarily need to have like 15% annual returns. need to have like 15% annual returns. It makes a big difference even if you just have the 5% and you get that extra $50 every month. So 5% annual returns over 30 years is $41,613. 7.5 is $67,372. And 10% annual returns is $113,024. So over how long of compounding was the period? 30 years, but that's just 50 bucks a month. So even imagine if someone like saves an extra 100 or $200 and then they just take that money and they invest that it can really make a huge

difference. You know, some of these tips, especially in the food section, I think it's pretty realistic to be able to save $50 right there. If you just don't throw out what you eat, you really eat everything you buy. You kind of cut down a little bit on going out to a restaurant or something like that. Say you go out to a restaurant once a week. I mean, you cut that down to once every two weeks. You're probably saving close to a hundred bucks just right there. I got one. I got a good one.

Go ahead. One thing that came out of the barbershops being closed is my girlfriend cuts my hair. I didn't want to say anything, but now that you're mentioning it. Dude, your hair sucks. you used to have a fresh cut what's going on you know what it's great is it as good as what my barber used to do almost i mean my haircut's pretty simple like it's not like yeah yeah i mean it's it's the buzzer on the side and then the hair that the flow scissors on top and then it's been a busy day i look kind of crazy right now but you like it's 40 like 45 to get your hair cut as a guy these days like it's

almost 50 bucks with tip if you're in toronto yeah exactly i think it's about the same in ottawa now so it's not cheap i mean i went that route but my wife is not a fan of cutting cutting my hair yeah she doesn't enjoy it so i've been back to the barber well there you go and so what i did this is our deal i was like this is going straight into the date fund okay like it's like 50 a month or like i think i was getting my haircut like every five six weeks yeah so like call it every month sure i know a lot of people like a lot of guys get their haircut like three weeks yeah i think a lot of guys like every five six weeks yeah so like call it every month sure i know a lot of people like a lot of guys get their haircut like three weeks yeah i think a lot of guys like every three weeks yeah it's nice because it's just right in the house too so it's like quick quick i don't have

to go do it anyways from a money perspective that just goes straight in the date fund that's like dinner every month like i'm out for dinner yeah you know like although 50 bucks yeah although there's this awesome pasta place we love that's across the street it's like 20 bucks each and that's the so there you go that's like the whole i mean not it doesn't include the wine but you get where i'm going with this is that that's 50 bucks a month right there and so whether you invest it or just like offsets fun stuff there are things you can do i used to make a spreadsheet i don't update it anymore i should update it of just like all my little projects that i do to save money and i would like track them over time and then i would do what you do

i'd like back test it and see like yeah if i just put this in the sp for the next 50 years what would happen and you need that kind of context to motivate you like what could this be because if you don't if you don't think about that you're just like yeah it's 50 bucks who cares you know yeah and i think the most important is just cutting stuff that you know don't cut stuff if you like that coffee at starbucks and it really makes you happy like every day to grab that five dollar coffee you know and gets you out of the and gets you out of the house, really how you have a great feeling doing it, that's fine. I think you should keep that in your life. Try to find something where you cut it out and it's like, yeah, no big deal. Actually, why didn't I cut that out sooner

type of deal, right? And there's other things, but those are the kind of big expenses that a lot of people just don't have a choice. But being able to make the right choices there can can go a long way. I love it. Let's round out today with Canada versus the world in terms of GDP per capita. So this metric is gross domestic product per capita, a.k.a. like per person in the population. So it's measuring how like, I don't know, from an efficiency perspective, like how efficient the country is and like economic producing GDP. So is that a fair assessment?

Yeah, yeah. And GDP is basically just a sum of all the economic activity and transactions going on. I think that's probably the easiest way to put it. Yeah. And I thought that, and again, this is just one data source. It's going back to the 60s in this data set. I think it's a pretty good data set too. And it's just tracking the world index GDP. You can do it for each country, you can do it for Canada. And I thought that Canada would be far ahead of the world on a long view because of how resource rich we are, just in general. I feel like we're a very productive country given our size. If you look at our population

versus a comparative, look at Russia, right? An efficiency perspective, when we were doing the research, how much is Russia going to affect the world economy? It's like, wait, they have a tiny GDP. What the heck is that about? And so I checked this out for Canada and we just barely blag. We were neck and neck, right in line up until the mid 2010s. And there was a big disparity start building around 2014, 2015. It has to do with us probably not using all of our resources the way we could, but I'm just speculating at this point. And so hopefully this kind of reverses and we catch back up. It looks like we're trying to catch back up, but I was surprised at this data. Yeah. I mean, it's hard for me to say.

I feel like some countries may be like skewing it up, like the US, for example. On a per capita basis. Yeah, on a per capita basis. And then, you know. Because it's not total GDP, right? No, exactly. So I feel like you probably have a few countries that are way above the norm, skewing it up.

And then, you know, Canada kind of looks a bit worse when you take that into account. Could also be that we're a heavy services industry along with natural resources. We don't have a lot of manufacturing compared to other countries. It could be that. I don't know exactly how they measure productivity. So I'm just guessing here. Yeah. No, I need to. But the data here since back to the 60s is 2,000.

What would that be? It's percentage. 2.17,000. Yeah, it's increasing productivity since the 1960s. Yeah. So how much it's- 2.65 tos. Yeah. So how much it's- 2.65 to 2.17. K, 1,000.

K, 1,000 percentage points. So it's obviously a huge number because it's a long period of time. Simon, that is the episode. I'm getting here in the background, the support person to add our new show onto our distribution platform. Literally, I'm getting the notification right now as you all have been multitasking here behind the scenes. And that's a good segue because we are coming out with the show just less than a week away, right? Yeah, exactly. The Real Estate Investor Podcast. Yeah. The Canadian Real Estate Investor. Yeah. So this will be out- Monday.

Will be, yeah, listening to this. We're recording on Thursday the 7 Yeah. So this will be out. One day. We'll be, yeah, listening to this. We're recording on Thursday the 7th. So you'll be listening to this on the 11th. Yeah. If I, yeah, on the 11th, that'll be out. And then the next. So tomorrow. So it'd be tomorrow, the 12th.

Yeah, yeah. So tomorrow the 12th, we have a new show coming out. The Canadian real estate investor with Dan and Nick. You guys will definitely like him and you'll actually have an intro to them on the 14th where we'll do a little segment, Brayden and I, and then you'll get a full episode on our feed just to get to know Dan and Nick. Yeah, baby. Yeah, it's going to be dope. So a couple of days away, you get to hear them on our show and us banter for a couple of minutes before that too, as always, because you guys love our banter. We don't take the goofy money that people are taking from companies to promote their company on the internet.

Like these junior mining companies that are paying podcasters and bloggers to promote their show. That is absolute garbage. We would never do that. And so, you know, we can support the show via ads as we do and through the Patreon at joinTCI.com. You get our monthly portfolio updates. Stratosphere.io just launched key performance indicators for hundreds of US companies and some of the large cap Canadian companies like the banks, like the railroads, like the Shopify's, the constellations, those ones. And those key performance indicators give you a clear context of the business.

It's a wonderful thing. And I get it. The pricing for that is quite a bit. It's not for everyone. It's not for self-directed investors per se. But if you're a pro investor, if you're an analyst, if you're working as an analyst, you need this stratosphere. Question for you.

Do you have KPIs for phase drive? Oh, phase drive. Yeah, we're tracking KPpis fraud yeah yeah we're tracking fraudulent moves that they do per day we're tracking regulation breaches no they're i think they're gonna be done pretty soon i saw i was i just mentioned them because i saw one of their famous news release that they're expanding into tex their business. Yeah. Yeah. Just trying to lose more money. Yeah. It's a race to lose as much money as possible. That's how businesses are run, right? That's what you're supposed to do, right? Exactly. Just keep the success.

Incinerate money as possible, as fast as possible. Okay. Thanks for listening, guys. We do release shows on Mondays and Thursdays. So we will see you in a few days. Take care. Bye-bye. release shows on Mondays and Thursdays. So we will see you in a few days. Take care. Bye-bye. 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.