The Iced Coffee Hour - Confronting Jeremy Financial Education | Exposing His $1,000,000 Portfolio

Episode Date: October 28, 2020

Welcome back to the 21st ever episode of the iced coffee hour! Today we discuss important matters such as how to pick stocks, living in California, and we break some earth shattering news. Add Jeremy: Youtube: youtube.com/channel/UCnMn36GT_H0X-w5_ckLtlgQ Instagram: https://www.instagram.com/financialed... Add us on Instagram:  https://www.instagram.com/jlsselby https://www.instagram.com/gpstephan Send any voice submissions to [e-mail]  (10-15 seconds max) can be about anything- and we will respond in the next podcast! ENDING SOON: Get 2 Free Stocks on Webull when you deposit $100 - Each Stock NOW WORTH $8-$1600: https://tinyurl.com/yd9slfax Join the 2x weekly mentorship group: https://tinyurl.com/yaexko4o The Equipment used: https://tinyurl.com/y78py5g2 The YouTube Creator Academy:   Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF  For Podcast Inquiries, please contact [e-mail] TIMESTAMPS: 0:00 - Start here. 2:35 - Jeremy’s public stock account about to hit $1 million. 7:45 - “Easy to pronounce stock ticker symbols tend to perform better”. 10:02 - Starting an ETF. 17:34 How does Jeremy pick his stocks? 23:34 - Which company is the next “Tesla”? 26:30 - YouTube “Shark Tank” like show. 29:40 Celebrations for net worth milestones. 33:13 Special delivery. 34:10 Scarcity mentality. 39:45 - Jeremy’s expenses. 46:46 Stimulus talk. 59:34 - State taxes. 1:12:11 - Should you consider taxes when trading stocks? 1:18:57 - Federal tax loopholes. 1:23:59 - Options trading. 1:43:55 - What three stocks would Jeremy invest in with a $1 million budget? 1:44:53 - Graham moving to Vegas. 1:49:21 - Don’t start here. *Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available Learn more about your ad choices. Visit podcastchoices.com/adchoices

Well, holy smoke is this ain't no jokas. Welcome in to the iced coffee hour. I believe this is episode 21, and you gentlemen have made $6,200 so far. We have an epic episode for you guys, okay? We're going to talk about stocks. We're going to talk about investing. We're going to talk about stocks I like right now. I'm going to break some news in this video that is earth-shattering, okay?

It's actually not news about me. It's news about this guy right here, okay? This is massive news. And when I say massive, I'm talking about gargantuan. I'm talking about as big as a massive state, okay? Think about a massive state like California. That's what we're going to get into. This is going to be a big podcast.

We are going to beat Kevin's view count in this video. We're taking them down. Kevin, your dust. Let's get into this. Wow. Watch till the end. And enjoy. Oh, also, you're our first ever recurring guest.

Oh, congratulations. Thanks. Congratulations. Welcome. So with that said, enjoy the episode. Enjoy it. Thank you for coming on, Jeremy. Absolutely.

Thanks for having me again, guys. The last episode was amazing, man. It did so well. Until Kevin came on, your episode was the number one most viewed episode ever on the podcast because I think we were talking about investing, how beginners could invest, our best investment strategies, how to make a lot of money. And your business, that people don't. realize just how successful everything you're doing is and just the possibilities out there are insane.

Like I'm learning a lot from just these podcasts listening to you talk. Oh, I appreciate it. I'm just mad that Kevin beat me in views, I guess. Like, that just disappoints me. Now my day's ruined. I don't know if I could focus on this podcast. What do we have to do now? That's why Jeremy came back on.

Jeremy came back on just so we can get more views than Kevin, and then we're going to have Kevin come back on. And then what we're going to do is have you and Kevin live on the episode. Oh, wow. And then we just break the platform. It'll only be Kevin and Jeremy. We're not even going to be in it. Just them. Exactly.

Then we just break the platform. Just YouTube shuts down the next day. He can't handle that. Oh, gosh. Thank you for this iced coffee today, Graham, by the way. I didn't come with Starbucks today. So I appreciate this like last time. Oh, of course.

Make sure to smash the like button for that. It's always some good news. And for those of you who do not know, Jeremy has two YouTube channels, and he talks mainly about stock investing, more so long-term strategies than short-term strategies. And yeah, I mean, what else is there to? Yeah, so in your public account, so you have a public account where you basically show the stocks you're investing in, anybody could see it.

That's almost up to a million dollars right now. It's cruising, yeah. A lot of people think it's going to hit a million this year. I'm a little worried. Wow. Yeah, I don't know, man, because Tesla might kind of like start just kind of chilling for a while, and that's the biggest position in that account. But, yeah, I'm super thrilled with it. It's been a hell of a past couple years, I can tell you that.

What did you start off with in that account? That account started from zero. I started adding money in. We just started building, building, building. I got in a lot of good deals in like November, December of 2018. The market had a big dip in Q4 that year. I started building out, you know, Tesla heavier SkyWork Solutions, Facebook, started building those positions.

And then we just kept rolling into 2019. I got in some hot stocks like Elf. This year, it's been like Fizzy Get Dizzy, National Beverage Corporation. You know, we have nicknames for them all. And Planet 13 and a few others. And so that account, we've just been, we've been roar. And the only really bad stock we've had, unfortunately, was a CCL, which unfortunately, you know, with a once in a hundred year event, man, sometimes you got one of those bad stocks. I bought in Carnival at like $11.

Well done. It was like 10 or 11. It was like 9, 10 or 11. And I remember thinking, I put like, I think it was like 10,000, maybe it was 10, 15,000. And I think, here's just a bet. If I'm wrong, I'm wrong. If I'm right, then, hey, I'll make some money. off of this but I put in it one of the worst times and I think what is it at now 17?

Yeah I think well maybe 16 I don't know this specific price but yeah in cheesecake factory you got on it by the way Graham got me on a cheesecake factory and I've made you know like I think 40% on that stock. Yes. Thank you. I yeah I got in cheesecake factory I think it what price was I telling you at it was under 20. I think it was like 18. Yeah so I bought in just a big chunk.

I think 30 or 40,000 at 18 dollars and then when I saw it hit 30. I was like, what? But you know what? The reason, I started to notice this. When I invest in companies that I use myself, they always do well. Cheesecake Factory was one of those when I was telling you about this. I would go and get the Cheesecake Factory for takeout. And the line was crazy.

This is like the worst of the worst, like at the peak, the shutdown everything. The line for Cheesecake, like you would have to order an hour in advance. I'm thinking, I can't be the only one. Cheesecake Factory is good food, good prices. So I'm going to put my money where my mouth is. And that paid. for all the Cheesecake Factory of a lifetime. That's the way to do it.

That's the way to do it. Basically, every Tesla owner that I know, as soon as they got a Tesla, they started buying Tesla shares. Because they saw how good the product itself was, which I think is a pretty good strategy. You employ that strategy as well, right? Yeah.

Yeah. I mean, I buy into companies all the time that I actually use the products. And like the Cheesecake Factory, we go back to that one. I did the same thing. I would go to the Cheesecake Factory. It was busy. I would check out like North Italia,

another chain that they own. That was busy. And I'm like, I was right there with you. And I saw the financing they did. They raised like, I think it was 200 mil in April. And I was like, they're going to get through this fine. And sure enough, you know, here we are. And, you know, incredible gains.

But thank you for, for putting me on to that one. Absolutely. Another few docu-sign was a great one. Yeah. Dropbox. You forget how often you use it. Yeah. That's an up-and-comer.

That's going to be 20-21 through, I think, 2025. It's going to go on a nice time. Rocket Morgan. A lot of people are talking about that one. Yeah. So I invest in Rocket Mortgage recently. Okay. And I could see it because the loan demand right now is just crazy.

Yeah. And especially Rocket Mortgage, I'm seeing, so I have the mentorship group linked down below in the description. But lately, people are comparing the rates they're getting. Rocket Mortgage has consistently been the best rates for people. Consistently. Wow. And this is not just like one person in the group. It seems like multiple people now are like,

I went off the other person's recommendation. I went through Rocket Mortgage. They're going to be this crazy deal. So I think, and it usually will take a few months for this to start showing up, but I think we give it a few months. Yeah. Rocket mortgage is going to be great. Yeah, I mean, I've done a lot of thinking on that one.

The valuation's a bit high, but so the one part of me is I think they are killing it right now, and I think they're going to continue to kill it for like at least next year because everybody's refinancing like crazy, including we just refinanced on our house. recently because we got down to like 2.7 or 2.8%. And so from whatever, we were at 3.6 or whatever. And so I'm looking at that one, but what I'm worried about is I'm worried about when everybody gets done refinancing,

what does that look like for them? So that's kind of what I'm trying to judge because you're paying a hefty premium for the company, valuation-wise. And then it's like, how long does this insane demand they're going to have for the next six, 12 months? How does it keep up for two years, three years?

or are they good forever with the super high demand. That's true. How is Rocket Mortgage able to offer such low interest rates on their loans? Is it just because I'm guessing they don't have like a brick and mortar store? Low overhead. It's an interesting stock. Ticker symbol RKT, I think. Okay.

Yeah. Exactly. What do you think of the study that easy to pronounce ticker symbols tend to do better? Remember? Yeah, I don't know about that. I haven't seen the study specifically. There was a study that analyzed 30 to 40 years of return. and found that easy to remember and easy to spell ticker symbols like cake, for instance,

tend to outperform the broader market consistently. Yeah, and we could take one step further. What about companies that the name of the company is the same as the ticker, such as Zoom. Because Zoom is Zoom. Like the ticker symbol is the same as the company, Zoom, Zoom, Z-O-O-M. That's interesting. But then you also have Z-M. Zoom.

Oh, it's not Z. I thought it was, oh, no, that's the other one. That's right. That's the one that tricked everybody. That's right. Yep. I don't know if you guys heard about that story. What was it?

Everybody thought that was Zoom stock and they were invested in it like crazy. Oh gosh. And the stock went up like more than actual Zoom stock went up. People got so lucky on that. And there was another one. Ford. F-O-R-D is not Ford. Yeah, it's just F-R-R-D.

So people were buying Ford in anticipation of the Bronco coming out. instead of just so for it's a blip having nothing to do with this there's been a few of them what was the other oh bang did you hear about this

there was this okay so it came out it came out that like fang stocks are doing this crazy thing where fang stops are up like 80 90% so far and there's a company called bang

f a N-g and people were buying into that it went up like 200% in a few days bang just out of a mistake. Yeah, that's ridiculous. You see it being like a few dollars and it shoots up to $14 and then back down a few days

later when people realize the mistake. The real thing for you, those you, Facebook, Apple, Netflix, Google. It's like an acronym that's used out there in the stock market space a lot. That's ridiculous. Yeah. That whole story. Jeez. Do you guys know how companies lock in different ticker symbols?

I mean, you just have to go through the process. As long as it's available, usually you can get it approved as long as it's usually it's a four letters or less. So, yeah, as long as nobody else has it, you can pretty much claim it on whatever, you know, indice you go public on. Have you thought about starting an ETF? I'd noticed Kevin O'Leary had an ETF fund.

Ooh, that's tempting. O shares, we call them. We're looking into it. It's a possibility. It would be interesting. We're just, it's something we're looking into, but I don't know if we'll actually do it. Because I'm still not 100% sure on, like, you know,

what all illegal requirements are around that. And, you know, if you have, have something like that, can you come out publicly say I'm buying such and such stock if you have your own ETF? I don't know. It's something we're exploring. It's going to take a while, though. How would you make money with that?

I don't know. I don't know. Maybe there's a management fee or something, like an expense ratio. I think there's some sort of management fee you get off that, but I'm not 100% sure. So it's something we'll look into next year and try to see if. Yeah. I think a lot of people would be interested if I did come out with something like that. Of course.

Because your gains are crazy, too, right? Yeah, unfortunately. What's your average ROI since you started the public account? Public account. So, well, last year I know for sure we got a 91% return by Fidelity. But a lot of that was Tesla. I'm going to be the critic here. 100%.

Yeah, yeah. Yeah, 91% last year. One year rate of return we're at right now for the public, I think is 151% calculated by fidelity. But, yeah, like Tesla's been a beast. but almost all of our stocks have been really good. It's just Tesla's that, like, insane performer. Tesla's the one that's gone up.

I think we're up 800% now on Tesla. What would you say the return would be without Tesla? Without Tesla. That's been one of the biggest critiques that I've seen so far is that portfolio is led by Tesla. If it wasn't for Tesla. I would say probably more to like 40 to 50%, because maybe a little higher than that. One year ready to return, we're talking.

I think maybe even up to maybe 60%, because although Tesla's up massively, it was already going up a lot into this past year, and then Tesla represents about 300K of that portfolio out of about 800 something thousand. So I don't know, we'd have to do the math on it. It probably wouldn't be, I would say 40% to 60% when you're ready to return.

Got it. If I didn't even own at Tesla. Got it. So, yeah, so I mean, I'm thrilled about it. But yeah, you know, it's all about like one stock. can pretty much almost change your life. I mean, I've seen it with countless people. The amount of people we have in the six and seven figure club that got carried there because

the Tesla stock is ridiculous. One day you're negotiating with suppliers. The next, you're installing a shelf in the back room. Running a business means moving in many directions all the time. TD's new small business banking accounts are built for how your business moves. It's how we're making banking more human. I remember one guy I met a while ago, AMD. I think he was in your group.

Yeah, probably. Yeah. Yeah. Yeah, he was in your group and he put like, what, $200,000 into AMD. Remember that? Wow. But it was $15. Yeah.

And sold it at like 60. The crazy thing is if you go back five years ago, AMD was like $2, $3 a share. And now it's, I think, like $7. $70. Something like that. Imagine you load up you believe in it so much at $2, $3. And you're like, this company's got to come on a great comeback.

They got a new CEO. And, oh, gosh. But the thing is, like, if it goes from two to four, you know, a lot of people are going to sell. Yes. You know, like, I just doubled up my money. I'm getting out of this, you know. But respect to the people that have held.

That makes me wonder, too, how many people have held Bitcoin since it was worth, like, a dollar, 50 cents until now. Yeah. Because a lot of people say, oh, I had 200 Bitcoin back and then it didn't. But, yeah, that's a good point. A lot of people would sell. As soon as it doubles from, you know, you know, know a dollar to 30 you're like up better sell this every time i release a tesla video it's always like

that one or two comments of somebody saying you know tesla went up initially like 30 40 percent and they sold out and they was the biggest regret of their lives or their financial lives it happens all the time man because it's just like you you see you know it with stocks that's the thing is difficult you log in your account you go on your phone you're like i just made 30 percent in two weeks on the stock or three months and you're like this is ridiculous and next thing you know you're just feeling all emotional and you're like, I've got a lock in my profits. Let me let's just sell. How often do you sell shares in your accounts? Very rarely. Yeah, it's very rare. I mean, the only reasons for me to really sell is if I'm getting too over diversified,

where it's too many positions and I'm not getting my account focused, it's just like I'm all over the place, or if the company fundamentals change for the worst. I don't even usually sell even if I feel a company is super highly valued. For instance, Tesla. I still hold them. So in the public count, every single share of all those, you know, well, it was originally 150, then they split. So now I think it's like 750 shares. But it's gone up so much and I'm still not selling, even though I feel like Tesla stock is very expensive. I'm not selling Tesla just because like, like why would I sell it just because it's highly priced? That's all relative, right?

You know, we're filming this in Santa Monica and we could say, well, that house is highly priced. It's, well, somebody might pay that price. So, so yeah, it's. It's pretty rare that I'll sell positions. Nowadays, I'm just like Facebook Skyworks. I'm still holding every share I bought in those when I was buying back in 2018 in that account. I think I got 371 Facebook shares in that account, and I can't remember how many Skyworks. But yeah, it's just not worth getting rid of great assets, whether it's stocks, real estate, in my opinion, that are long-term investments here.

It's just like, why would you? What am I going to do? Put in cash? Cash is, you know, getting devalued every day. How many stocks do you like to have at a given point? So public account, I have 15 stocks, and that's about what I'm comfortable at. When it goes over a million, I might take it up to 20, but I really want to keep it under 20 because you get to a point where you just get too over-diversified, and you got to keep in mind.

You want to be diversified, but you want to have your money in the best positions possible. And so, you know, we have it sometimes where somebody will join the private group and we do like portfolio reviews where they can send me their portfolio. Sometimes these people will send me their portfolio, dude, and they'll have like, you know, 35,000 in their account, and they got 35 stocks. And it's like a thousand apiece. And it's like, you're all over the place, man. You should, if you're going to be, at that point, you might as well just buy an index fund.

If you want to be an individual stock picker, you need to be in your best positions. You know, those, you know, especially with that small amount of money, you might want to be in your five or ten biggest positions, your best positions that you love the most. That's where you're going to get the gains. That seems like the opposite of the Kevin O'Leary approach. Yeah, it probably is. So if you have $100,000, you should do $5,000. per and pick 20 different stocks. I think, though, in a situation where you have much less money, like $35,000 or $100,000,

there's only a certain threshold that you kind of need to surpass, like you said. If you had $1 million, you'd have 20 positions. But if you had like $50 million, you'd probably have like quite a bit more because then you start changing your priorities to capital president. Yeah, exactly. Once you get a ton of money, yeah, it's about not just growing your money, but keeping the money as well, 100%. But, I mean, when you're on the come up, you know, it's like I haven't known any of the money.

anybody in my life, you know, personally, who got truly rich, right, without being super into one thing, whether that was their business or a couple of real estate properties and it got them there or a few stocks that made them, you know, super successful. You know, so it's hard to be, you know, have your money all over the place. A lot of times the game changer for you is having your money in the five to ten best things you got going for you, in my personal opinion. So. How do you pick stocks? Sammo.

Gosh, that's at the end. How do you've got, Jeremy? Six hours later. We're on Park 2 at that point. Oh, gosh. I mean, the biggest thing at the end of the day, like, people always ask me, like, what's the biggest thing? It's the fundamentals of the business. It's by far, like, you can look at all the metrics, return on invested capital, return on equity, price of sales ratio, forward peas, trailing peas.

You can look at all these things, prices of sales, you know, you can look at so many different factors, but I can tell you it's always the business fundamentals. All right. But let me start here. year. What website do you go to first? Well, it depends on what you're looking for. I mean, you know, Yahoo Finance is still, you know, although it's gotten progressively worse over the years, Yahoo Finance is still pretty decent. Okay.

For like getting basic information about a company. So let's say you want to look into Apple stock, you know, you can type in Apple there, get their metrics and things like that. But of course, if you're new to the market, you're not even going to know what the metrics are, right? So, but I mean, the great thing nowadays is you have Google. So like, let's say you hear me say Ford P, right? ratio and you're like a forward p.e ratio what is that like like I don't think people quite get this like literally you can Google on your phone what is a forward PE ratio and it will be explained you exactly down to detail from like Investipedia right on Google we're going to get comments right now what's a forward PE ratio what is it what is it a forward P is basically looking at the next year but also a few months of earnings versus where that stock price is at right now it's one of the most important metrics I personally look at because as a as a forward looking investor I want to focus on where this company's going over the next year but also a few years.

you know several years out and uh yeah i mean the you know to get back like the business fundamentals so important like people way overlooked that all the time they want to get caught up into the metrics and all this company's cheap and things like that it's like if you can find a great company that has a decade of growth in front of them more than likely you're going to make an insane amount of money it's just as as simple as that basically um you know amazon i i looked into amazon my first time i think It was 2010, right? I loved the business model. Loved it.

I was like, this is brilliant. I looked at the valuation and I thought, that's too expensive. Amazon was like $50 to $100 a share back then. It's like, what, $3,000 now? That was stupid. You know what I mean? I should have been buying as many Amazon shares as possible

because I understood this business model is a game changer. So although it might look expensive, put the money in, man. Put the money in. So it all comes back to the CEO and the business fundamentals and where that company's going. going in competitive advantages they have in the market. What are the biggest red flags you see?

When you're evaluating a stock, you come across something. You're like, oh, no, this is a deal breaker. Really bad balance sheet. What does that mean? So, you know, the balance sheet is essentially the financial health of a company. You think about your own self and your own life, right? You have your own balance sheet. You have a certain amount of assets and liabilities, debts, things like that.

And, you know, obviously if you have too many debts, that's a bad thing, especially if they're bad debts. and I think balance sheet shows like the competence of the management team, I think is big. You know, if a balance sheet is really bad, let's say, for instance, and they're loaded up with debt, they have hardly any cash. It just means it's a mismanaged business and like, what the heck are they doing more than likely? So the balance sheet is honestly one of the biggest keys. Like that's going to drive the whole business.

Because if you don't have the money around in a business, how do you invest in the business? So you look for cash on a balance sheet? I'm looking for cash investments. And I'm also looking at what are their debts? short-term debts, long-term debts. I'm not really looking at their rent-related debts because they started accounting for that on balance sheets over the past year or two,

and I think that's kind of a mistake in my opinion, like long-term lease liabilities, but I'm looking for all the other debts, essentially. So, yeah, that's really big. You know, that's one of the red flags. Another red flag is if the CEO buys a yacht, like the GoPro CEO did. No, I mean, sometimes these management teams, you know,

they'll get really rich. You know, obviously you take a company public, you get really rich, and then you maybe get a little unfocused. So I think if you see a management team that is focusing their attentions on more leisure activities than business. Was that a diss towards Trevor Milton? That was, he bought, what, a $35 million ranch. Exactly. What do you think of that? They've been taking down.

Trevor Milton. Oh, Nicola. Yeah. Oh, yeah, he was a guy. Yeah. Now, allegedly, because I don't want to. get these videos taking it down. Allegedly they have now been removing videos

that show their truck going downhill. Allegedly. Wow. A few channels have complained about that. Yeah, the red flags for Nicola were there, that's why a lot of us were calling it out and people are like, oh, are you guys just, you guys

because I'm talking about the whole, like, almost everybody in the Tesla community, myself and a lot of the other most important YouTubers in the Tesla community, we're all calling that out because it was so a sketch, man. Like, the whole situation was so sketch. You want to talk about red flags?

It was just loaded with red flags. I thought Nicola was almost like a joke company because it was like Nikola Tesla. Yeah. It's just, it seemed like just a bad copycat of that. Yeah. But it goes to show you, that to me was like the most elaborate, I don't want to call it like a hoax. Yeah.

I don't want to call it a hoax. But it was one of the most elaborate plants that I've seen a long time. I mean, this guy made how much money he partnered would. He got a partnership with GM. Yeah. Who's now, I guess, looking into, they're re-evaluating that. Yeah. It's shocking.

Yeah, we'll see how it all turns out. But, yeah, I mean, you know, that was just a massive risk that honestly, you know, has paid off really poorly for most investors. You know, at peak, I think it was at $90, you know, Nicola. So, yeah. I mean, the thing is, you know, if we draw it back to, like, why are people even getting involved with Nikola stock? Why do they go up so much? Everybody wants a next Tesla. everybody wants the next Tesla man and they're so desperate for it so desperate for it so

what do you think has the potential to be the next Tesla well there are few companies out there I think I mean the stock I'm most excited about if we're thinking about growth over the next 10 years I would say you've probably planned 13 it's a risk like yeah it's a risk like Tesla was back in the day you know you're going to say that yeah yeah it is it's just there's nothing I can find better than that for the reward potential. Now, I can find more attractive risk rewards than plant 13 out there,

meaning you're balancing what are the chances you lose money in that stock over the next five years versus you make a double up, triple up, quadruple up with your money. But yeah, I can't really find any. I've looked, you know, at, you know, I look at stocks all day pretty much and I can't find anything that has that type of growth potential because you're talking about a company that basically has one massive store. They got a store opening up in Santa Ana in 2021. They had their little store in Vegas opening back up, which was making like five mil a quarter.

Like that's just a little store. And their brand's expansion, it's just like if they execute, man, that's going to be a multi-billion dollar company. What about Snowflake? Snowflakes got such a rich valuation on it now. I mean, it's incredibly, I mean, in the spectrum of like the richest valuations you can find or like the cheapest companies you can find, Snowflake is literally at the end of the richest companies you can find in terms of valuation being insane. It doesn't mean they can't fulfill that over time. But, yeah, I mean, the valuation has gotten pushed up so much because everybody's desperate to get in the next sales force or another one of those game changing companies.

That's what it seems like for me. Everyone just wants to get in like what's the next quick like money maker thing. And they're all like this big hive. Yes. A bees. It's just like, oh, let's go right here into that. And they pump it up. And then it's like, oh, what's that over there?

And they blow it up. Yes. And that's what it seems like these little spots of just, but if you time it, if you time it right, and that's what I think everyone's thinking. Yeah. Everyone has the same mentality like, oh, if I just time this right, everyone's going to bump it up and then I sell two days later. I think that's what happened to Snowflake.

Everyone thought that they were going to get in early, write it for a day or two, and then drop it. But all of that momentum in the beginning just shot it up and it did nothing but go down. Yeah, 100%. We were, you know, and it's even worse in like the VC space, we were chatting, Blake and I on like the ride over here from Vegas yesterday, and we was talking about it. He's like, would you ever do like a VC fund or something like that? And I was like, if it got way less competitive, maybe, but in a VC space, like, if you think what's going on

the public market is bad, like look to the venture capital space, man, because those guys are so desperate for the next Facebook or the next chime or whatever it is, they will push valuations up to whatever they need to just to try to get into the next maybe big thing. Like it doesn't matter almost what you launch. As long as it's some sort of ideas. and it's growing. It doesn't have to be even a business mall that makes sense for the most part. As long as you're growing users somehow, like these VC guys are desperate to put money in, man. It would be so much fun to try our own hosting of Shark Tank.

Just do our own thing. Could you imagine that? We could try it. Whoa. Seriously. And just, and get people who just don't, you know, don't have the other resources of getting themselves. Just, I'm talking like, I don't want to say kids, but like young adults who don't know where to turn. They watch YouTube videos.

They're like, I have this concept or this thing I'm working on. I just don't have the capital for it because I'm stuck at a full-time job. But if I leave that job, I can't pay my rent, but I need like 30 grand to get this off the ground and to support myself for a year. That would do so well. I like that. Like, maybe we should do that. We need to do that. Like a YouTube edition of it?

Yeah. But the thing is we don't want to copy Shark Tank like verbatim because then it's like, I just copy Shark Tank. But have a cool spin on things. Get like three of us, four of us together. and just the maximum would be like 50 grand. Well, and you're friends with Kevin O'Leary now so we can get him on the show too. Oh, geez. Mr. Wonderful.

Yeah. You know what we might have to just turn these off and on? You guys are both white. I know. What are the chances, man? But I think that would be fun. If you guys like that idea, just let us know down below in the description. I'll make that happen.

I think that would be a fun concept. Have the platform. I'm sure there are people with good ideas. Jack, you could screen through these and make sure they have like a legitimate business, how much money they need to just get the basics. You know what it would be? It would be like taking the phone calls on the second channel, except in person and they're pitching an idea.

That would be cool. But we have to, the hardest thing to execute on a plan like that is we're going to have to come out with a more epic music than Shark Tank has a do, do, do, do do do do do do, do do, do, do, do, do, bop, bop, bop, bop, bop. How can you beat that music? That's difficult, man. We can have a funny spin on things.

I don't know. Yeah. We'd have to make it different enough. If that's a concept you think is actually worthwhile, I would do that. Okay. That would be fun. We would allocate like $200 grand and do whatever it is and just be like, we're going to give away $200,000 or like invest $200,000 in certain people.

That's actually a concept I wanted to do for a long time, was being able to invest in a person. And I actually got this. So what my plan was, this was like 10 years ago, I wanted to be able to do something where like I like a specific. person and I could be like I'm going to give you a hundred grand and in return for that I'll get like 10% of how much money you make for the next like 20 years Yeah something like that whatever it is however much But it's so difficult to actually implement that because they can have write-offs and expenses and they buy like certain stuff to get their income down and

I thought that would be really interesting and then I got an offer this may have been two years ago I'm not sure if you showed me this jack the guy who wanted to invest in me he offered me what was a few hundred thousand dollars in exchange for like a portion of how much money I'm going to make in any venture I don't remember that yeah

this was like two years ago what percentage was I don't know I'm sure I could find it that was me that did that I don't know if you guys want to talk for a second I'm sure I could find it it's on yeah so what percentage of your public account is principal or how much is principal

I would say probably 300-ish, maybe a little over 300 of the 800 and whatever, it's at 60, is probably money I put in because we're profiting, you know, like, let's say I sold all the positions I have in there right now, where it would be 400 and I think 50K or somewhere around there roughly of profits I could take today. That's just pure profit. Never mind what I've taken over the past few years, which I took a good amount of profits in L.S. of cosmetics. I took a good amount of profits in cruisy-doozy, and I took a few other profits. So, yeah, I mean, we've definitely put in a good amount to build out those positions. And, like, my whole investing strategy is, like, putting yourself, before you can actually

get to investing, always have yourself in a position where you can put money in your accounts one to two times a month. So you're always able to take advantage of dips in the market. So you've got 300 grand about in principle in your public account. Something like that. Yeah. Maybe a little. little over 300, but yeah, somewhere around there. And do you still ever contribute to the principal? Yeah, I try to once a month, if not twice a month, every month. You know, I try to run that like I run any stock account, essentially, where I'm in a

position where at least once, twice, if possible, three times a month, you know, contribute some sort of money and just keep building and building and building. And what do you have in store for when you hit a million? Nothing, absolutely nothing. They're not going to do it. Come on. You have a celebration. Dude, that's good promotion. Do you have any celebrations when you hit milestones like that, like net worth milestones or stock market?

I used to. I used to. Yeah. I mean, I remember. What do you do when you hit a million? Let's talk about it. No, no, no, 100,000, $500,000 a million. What did you do? So, actually, $10,000, I remember I took my whole immediate family out to dinner. They didn't know what it was for, by the way, but I knew. I had hit $10,000 net worth. 100,000, I think I took I can't remember, but I know I took us all out Chippole.

And I know I took us all out when I hit 100K2. I didn't even do anything when I hit a million. Are you serious? I didn't do anything. No, yeah, I'm kind of disappointed. I don't know. Did you? I don't think you did.

You did? I've talked about it before. What'd you do? Yeah, I don't think I know the story either. Yeah, really? I mentioned it multiple times. So what I did when I hit the million It was, I think it was on like, it came on a perfect day

Like it was like a Friday, Thursday, Friday, Saturday Like one of those nights And I had a few friends And we got together for Happy Hour Sushi Didn't, I was the same way I didn't tell anybody what it was for But I'm like, let's grab sushi tonight That was it

So I got Happy Hour sushi I think I may have gotten like a Happy Hour beer Or something maybe I don't know But that's what I did Nice Yeah I do believe in like taking people out For when you hit milestones

and things like that But yeah, man, I didn't do anything when I hit a million. But you were at $10,000 net worth is when you took your family out to dinner or something. Yeah, I might even have done it at $1,000, to be honest. Like, we might have been a very affordable dinner, like $60. You know, maybe we all went for pizza and wings or something like that. When you hit $100 network. Could you imagine that?

You spent it all, and then you actually were down. Afterwards, it's negative. I would imagine if you spent like $100 on that dinner with your family at $10,000, you could have very well dipped below the $10,000. And then you have to celebrate again the next time you hit that. Oh, thank you, sir. I appreciate that. Guys, I had a special delivery come in just for Graham's podcast.

I didn't have time to stop there. And they post-mated this too, right? Yeah, postmates, Uber Eats or what? Postmates. How much was that? How much that cost? Five bucks. With postmates delivery?

Plus a postmates charge, so we're probably looking at $10, $14. Jeez. Why did you do that? You have a tip on top of that with tax? That's stupid, though. That's a $20 to do. You know what that is, though? That's FU money.

That's when you have so much money. Hey, hey, look at these guys. They use $20 bills as coasters. Who are they to preach? It's fake. It's got some writing right there. I don't know. $20.

That's FU money. I didn't pay for it. Blake paid for it. Thanks, Blake. Gosh. That is FU money. Blake doesn't have scarcity mentality, okay? Let's talk about scarcity mentality.

Okay, that's too deep of a subject. I like that mentality. You like... I don't like the mentality, but I appreciate discussions about it. Yeah, definitely. Okay, yeah, I mean, it's because scarcity mentality is interesting. I mean, I can understand, you know, and I had scarcity mentality. I would say until about, I want to say tell about 2013.

Yeah. I really did. Why? Why did you have scarcity of intelligence? Well, so, I mean, when I grew up, you know, especially in my younger years, we grew up in a rough area, you know, like on food stamps, things like that. So whereup the bat, I was kind of like in the like mindset of like, you know, you got to try to get everything you can and try to save everything possible. Also, I just started saving at a young age. I was always really good at saving.

So it wasn't like I went out and bought myself stuff all the time. I had a little safe as a kid, you know, even in like middle school. this little save that you open with the key and I keep like 500 bucks or whatever I had saved in there. And so I always kind of thought in that way. And then I never knew how to make a lot of money. So it was like I have a limited earning potential and I'm a natural saver. So it kind of leads you to more like a scarcity mentality. I think what kind of got me out of it is when I started having like exponential growth in the stock market.

So like 2012, 2013 and then 2014. And I think that started to lead me out of it. And then when I began my entrepreneurial journey as, you know, with the real estate marketing company, that's when I really got out of scarcity mentality. Because I was like, oh, I can make money for myself. I can start businesses. And then I just totally got out of that. So I still, like to this day, I saved the majority of my income. So I spend a lot too.

Don't get me wrong. But I still save the majority. But I have zero really like scarcity mentality nowadays around like earning potential and things like that. Like, you know, like now I'm super confident. Like if you said, you know, YouTube went away, everything went away, I'd be like, I'd just start another like million dollar business. I would just, you know, it's just like, it's nothing. Now, once you know how to make a lot of money, it's just so much easier to make a lot of money

because you understand how teams are built. You understand how to build people together. You have all these, like, resources. And so, like, as long as you have the knowledge in your brain, you can just go, it's no different than, imagine you go to the gym all the time and, like, you get yourself to a place where you can, like, bench press, let's say 300 pounds or whatever, right? even if you were to not work out for a long time, you're still going to be able to bench likely a lot more in the average person.

It's just like, you're just like, you know, you know how to do it. And once you get in the gym again, you start working out, that muscle memory is going to come back because you just, like, your body knows how to do it. And the same thing with your mind, but your mind I think is even more powerful. So like, like you, you know, if you, if you go, let's say everything went away, you would be able to start something, I guarantee you. And you'd be highly successful again.

I would be 100%. I wouldn't want to do that. I believe. Start over. Who does? That's the thing. I feel like I've worked hard. enough where I just, why risk it?

Why risk it? If I could cut back on, if I save, probably save $8. No, actually, I would save the entire, because I wouldn't even do that. So right off the bat, I'd save an extra $15. I remember working like two hours, working a whole hour making $15. So this to me is like an hour's worth. Would I rather have this for pretty much free or an hour's worth of my time to buy that? Yeah.

I can definitely understand that. Yeah. There are certain things now where I feel like it does make sense to try to buy your time back. So there are aspects of that that I do feel are worthwhile. Like I had Jack drive me one time so I could edit in the car. So that to me was a worthwhile expense because now that meant I can get an extra two hours of work and where my time was really well spent. So certain things like that I think are worth it. But this to me seems like an extravagance.

Extravagance. You already have a coffee. You already have a coffee, but my life wouldn't be that much better having this. I would say my life would actually be worse because I just don't like those. Okay, see, I... My quality of life would diminish.

My biggest weakness is food and drink. If you look at me, that's my biggest weakness. Come on, no, I agree. Okay. Me too. Yeah, yeah, that's my biggest weakness, man. I don't... I spend a little money on clothes,

but the only reason I spend money on clothes is simply for videos. I believe me, I don't need this. That's... This is probably... Let me guess. Let me guess. Let me guess.

Okay. It's not... It's not... OV... no. 80. No, no, no, no. It's, uh, you wear it all the time.

What's that one brand? You wear all the time. Oh, Kenzo? Kenzo. Yeah. The OVO hootie is probably about 150, 200. But you could resell this if it was new and still wrap for probably 300 today. Because they go fast.

Can I touch it? Is it like soft? Yeah. Yeah. And this is holographic. Yeah. I noticed it. Okay.

Okay. Okay. So, yeah. But I noticed it's hard. I don't care about clothes at all. Like, if you see me, like, in normal life, not in video life, I wear, like, basic $5 t-shirts. But people love, like, interesting looks and things like that.

So I'll wear, like, the OVO shirts and just, like, different stuff that I think is cool for videos. Because you make videos every day, and sometimes it gets boring, man. Like, if you just wear a plain shirt. I don't know. Maybe people don't care. Some people care. Some people don't care.

I find people like the plain shirts. I just like things without logos on them for the most part. That's smart. Yeah. don't give them any branding time I like that exactly I like that so how much better did that sip just make your life

oh my gosh it tastes is so sweet and beautiful so sweet and beautiful it tastes it like a $10 bill if you could drink on cheese did we talk about this the last time how much money you spend I think we did yeah but I don't know how much so you don't know you don't know how much I don't know how much we try to figure this how last time

do you ever look at your credit card statements and just see where to my money go. Do you ever look at the end of the month and be like this how much I spent? Yeah. I mean, well, no, I don't actually. Do you don't? No. Oh, yeah. You just have automatic payments on? Well, my wife handles all that. So yeah, she, she handles that that. She just sent me a text today. She's like, we just spent $2,000 on blah, blah, blah today. And I'm like, what do you mean you spent two then and blah, blah, blah? Yeah, well, like Facebook ads. She's like, we spent $2,000 just today on Facebook ads. She said, I'm talking like personal expenses. Yeah, personal expenses. Um, I mean, personal expenses, I would say 10 to 15K.

As of next year, it's probably going to go up to 25 to 30K. Okay, but what are those expenses consist of? Consist of. So right now, mortgage on the main Henderson house. We have the Arizona House, which is going to be finished getting built in November, actually. So next month, looking forward to that. That will be a mortgage of probably, I would guess, like, maybe like 2,500. It's not bad.

Yeah, something like that. The Model X is $1,000 a month. The Model 3 is, I think, $800 a month, I want to say. Yeah, the $700, $800. Okay. And then, you know, various other expenses, food, health care. I have kids, so obviously the health care is even more. And so, yeah, different things.

I mean, most of my money spent on business-related things. Like, business payroll is probably 50,000 every two weeks, I would say. Wow, $100,000 a month. How many people do you have working for? Probably 30. Yeah. 30. 30, like most indirect.

So most independent contractors. So they're paid like that commission or they paid hourly? Some are paid hourly. Some are paid hourly. Some are paid weekly. It depends. My coaches, we have like seven figure coaches in there, right? Because we have like coaching packages in the private

group. You know, those guys are all multi-millionaires. So, you know, and they work very high up at very, you know, popular tech companies. And so they're very, very expensive. Those are some of my most, like expensive people. So what do they do is like if somebody wants to upgrade. So we have the private group, obviously, which if you join the private group, you get all the curriculum, you get discord access, you get access to our forum, access to me. But these gentlemen are if you want one-on-one coaching experience. So you want somebody actually get on a call with you that is, exactly where you're trying to get like in life, you know,

multimillioner status. They can walk you through everything, which some people like that experience. Like, they really value that. Me, I can learn from a course. Like, do you just give me a course?

I'll learn. But I understand there's a segment of the population that would much rather have, you personally teach them something rather than you in a course form, just teach them. So you pay them to coach your people? Mm-hmm.

Yep, yep. Anybody that upgrades to those packages. Do they pay you and then you pay the coach? How does that work? Yeah, yeah. Yeah, if a client comes in, they want one-on-one coaching from somebody, you know, like one of those guys that's had a tremendous amount of success.

Then, you know, they pay for the program, essentially, and then I pay the coaches. So, but I pay the coaches like a set amount. And they're, like, some of the most, like, important people. So, yeah. What are the chances that someone goes around your back? They go to the coach saying, hey, let's cut out, Jeremy. Let's just do something on the side. I thought about that.

I think about all these things all the time. I mean, I don't think they would do that. that to me, you know, they're like really good guys. They, they, you know, I mean, they have so, you know, they're already so successful that it's like, it doesn't even make sense for them to try to go behind my back and create a bunch of drama and put a bad name and reputation out there and ruin a relationship or something like that. But I have thought about that before. I'm like, I could picture somebody trying to go around it or something like that.

Yeah. But yeah, that would just be messy, you know, so that wouldn't be good for anybody. But, yeah, I mean, you know, the payroll's, the payroll's no joke, man. That's $100,000. So you've got to be making many multiples of that. Yeah. Mm-hmm. Yeah.

Yeah, I would say so. I mean, you know, between YouTube and everything else, yeah, definitely. And then never mind that, like the stock accounts keep getting bigger and bigger and bigger. So when I make a profit, you know, it's bigger and bigger. The dividends are bigger and bigger. Do you worry if the market goes down, let's just say over the next few years? Mm-hmm. It's just every year goes down 10%, 10%, 10%, 10%.

Like multiple years in a row. How do you think that would impact your business? Well, it's interesting because we actually do better in a, what I found is we do quite a bit better in a downtrending market that's going down, which is opposite what I thought. But a lot of people want to buy in when the market's dipping. And so a lot of people have the mentality that I'm not going to, you know, like if you're buying into the group, it's because you think you're going to take stockmark investing super serious. And if you think you're going to take that and make that investment yourself and, you know, learn all that stuff, it's because, you know, you believe you're going to make a lot of money, right? And a lot of people are trained because they watch your videos, my videos, everybody's videos,

and they know buy the dip, buy the dip, buy the dip, it's something that's put out there all a time. So a lot of people actually, when the market's going up like crazy, they're like, ah, no, I'll stay away from that. Let me know when the next time the market dips, and then I'm going to get involved. My concern would be so far, I'd say since 2010, the dips that we've seen have not lasted longer than a few months. So a few months, a lot of people

will come in, buy in, and then it goes back up. And it reinforces by the dip, buy the dip, by the dip. I'm concerned what would happen if consistently we go through four or five years where every year is negative and people buy the dip. And then it drops another 8%. They buy

the dip and then it drops another 5%. They buy the dip 10%. Many years of that and they just get to a point where they're like, you know what, why am I going to keep investing? I keep losing a year after year after a year. Yeah. This might not be for me.

I could see that if kind of two scenarios played out. Like one, the government stops all sorts of stimulus and doesn't do any stimulus in the future and interest rates go up. I could see that. And if there aren't any special companies, like if the United States, we just stopped producing special companies, I could see that. It's a special companies where you really get the insane gains in the market. It's the Tesla.

It's the Google. It's the Apple. It's the Amazon. It's the AMD. It's the Nvidia. So if we get in a scenario where there's just no good stocks because all the companies are crap, then, yeah, that could definitely happen. But for my, the way I teach people, it's individual stocks.

So it's all about finding the great opportunity. So whether we're in a market that stagnates goes down, there's still going to be stocks that way outperform. And it's just about finding those stocks. That's a beautiful thing. If you're buying an index fund, that's a whole different story. What do you think of the stimulus? Do you think, I don't know if we want to talk about it? You know what you should talk about it?

We could talk about it. should be a stimulus. It's tough, man. I mean, this is the edgiest we've been. Yeah. Yeah. Do I think there should be stimulus.

So, I mean, part of me sees the overall economy as doing fairly decent. You know, we were out, you know, down there in Santa Monica last night,

and it was, you know, it was a lot of business going on. There was a lot of commerce. Um, but I don't think we're getting a full picture because people have such limited ways of spending money.

And so I'm wondering, you know, when we go to some of these places and let's say it's busy, maybe it's just because people have so much less to spend money on. Because, you know, think about it. You want to go to a concert. You can't do that right now.

The gyms are closed. Gyms are closed. You want to go to the Rams game. Can't do that. Think about the massive amount of just events and things like that that are just completely shut down right now. The convention business, the meeting up in person. I mean, when you start adding up, we probably do need another stimulus package.

I'll be honest. And then we really need a country to open up more and more in 21, I think. Otherwise, we can get into some trouble. You think it's warm in here? It's not too bad. I'm not like, oh, I'm dying. I'm fine. Why are you hot?

It's warm in here. Really? I don't think it's warm in here at all. We got a nice breeze. This is the same argument you guys had when Kevin was here. Yeah, I wanted to see another person thought it was warm in here. And so, you know, what do you think, Graham? Do you think there should be no stimulus?

So what are you thinking? I don't know, man. I think part of me just hates relying on the government for anything. And just expecting that they're going to help us out, I don't think is a good mindset to have. Because it could be, I mean, because then you're really relying on someone else. I think it's so much better to take things into your own hands initially.

I mean, if you get something great, but if not, I wouldn't rely on that. And I also think that some businesses, especially the ones that get these huge bail. I don't think that we should like teach them a lesson, but I think some of those big businesses that get these enormous bailouts, why are we supporting some of those business? Not all of them. I think some of them are good.

Yeah. And also I think just a lot of reckless spending overall. Yeah. That should be cut down. I can understand that point of view. But I think on the other, you know, if you want to go to the other side, there's also this whole, like, way of viewing it where imagine you have, you know, the local bar or club, you know, in Santa Mock or even restaurant, and they're telling you you have to be shut down or you are forced to be only at 50% occupancy.

But I'm talking about some of these huge, but like I get the airlines. What was an example. Now, I get why they did it for the airlines because they employ so many people. So by bailing them out, they've inadvertently bailed everyone else out as well. I'm not the small bit. Like, I think if the government forces you to shut down, they should compensate you for that. I think that's something that should be done. Yeah.

But I think the way it was done was such a mess. Yeah. But it was rushed. Yeah. The whole thing was rushed. But could have absolutely, I think, have been done better. I worry about stock. If you want to talk about what I worry about with stock prices, I worry about, you know, another stimulus and then stock price is shooting up a ton more.

Probably. You know, I mean, assets. Why would you worry about the stock prices shooting out? Because, I mean, a lot of these companies already have really rich valuations. I mean, there are some definitely good deals in the market, but there are a lot of companies, especially a lot of these big ones that already have, you know, these really high valuations. And if we put, if you just print another $2 trillion, just put it out there, a lot of that's going to end up in assets again. And I think real estate's probably going to keep going up.

And stocks will probably keep going up as well, especially when you talk about the low interest rate environment we're in. So yeah, it's a tough, you know, a whole situation because, you know, there's definitely people out there businesses that need the stimulus because they're being forced to be shut down or they literally just can't operate the same. But at the same time, a lot of that money just somehow ends up in, you know, the top's pockets and then the top puts it in stocks and real estate. Yeah. So, and then your dollars are devalued. So, you know, that money you got in your savings account is just, you know, being working. I just think we're going to have to pay for it in something else. You might get some money now up front, but you're going to pay it back through higher prices

elsewhere. You're just going to do it slowly. Yeah. What is it? What do they call it death by a thousand pricks? Yeah, a thousand cuts. That was it. Yeah, that's what I think it's going to be.

You might get your money now, but okay, with the price of a loaf of bread now is a dollar more. Price of going out is a little. little bit more. Your dollar buys you a little bit less. Stocks are a little bit more. It's a whole bunch of things that just you end up paying for it. It's true. Which makes your dollar is worth less and less. Right. I do agree. I've always thought like considering the current climate of everything, like with everything going on with the stimulus and everything being shut down,

there's no way that we're not going to pay for this in the future. Yeah. Because we really haven't. I mean, the dip, realistically, it didn't last very long whatsoever. And we've recovered and then some, you know? There's no way that we're not going to suffer any ramifications whatsoever from crazy. I think it's going to be taxes. I think all the tax rates are going to go up. But who wants to be the one to push that? That's the thing.

Because you all of a sudden, if you tell everybody you're going to raise a tax on everybody and not just the rich and it's everybody, all of a sudden people start saying, I don't know if I'm going to vote for you. So if you just say you're going to tax the rich, people are like, okay, that's fine. Some people are okay. As long as it's not me. As long as it's not me. But if you're talking about a blanket tax increase across the board, a lot of people, you know, regardless of what side of the aisle, you're on also and starts saying, hmm.

Well, you don't, you don't just raise the tax rate. You raise other little things as well so that the net turns out to be, it's maybe you don't raise the federal income tax, but you just, you tax the Medicare a little bit more. Social Security an extra 1%. You add in a little few extra things. You get rid of a few deductions or you complicate things in some way that people don't fully understand. Well, they're considering raising the California's state income tax highest tax bracket to like 16.3%. No, that didn't pass. Oh, it didn't pass.

Thankfully, no. Oh, gosh, no, no. Thankfully, thankfully, thankfully. So it's over. That's it. For now. It does not mean it cannot be reintroduced next year, which I think is probably going to happen. They're going to keep trying.

Yeah. But yeah, the wealth tax also did not pass. That would have been a whole mess in and of itself. That's impossible to pull off. I can't see them ever be in a wealth tax. How do you do that? It's just too messy. You're going to force everybody to sell assets constantly,

and it's just going to create, you can't do it. And if you do well tax, people with money are moving. I could see them getting rid of the capital gains tax rates for certain people. I could see them taxing that at ordinary income. I could see them also throwing in an investment tax. Think about it. If you invest your money, that means you have now almost discretionary income. and that is not an essential expense to invest,

not necessarily. I could see them throwing on a little tax on that. Don't give many ideas, man. I know, but that is a luxury to have the money left over to invest. I could see that because they could be looking at it as, you should go spend that $1,000 on a flat screen TV that a bunch of people are going to make money off of

rather than invest that money and it produces no jobs. Because if I put my money in a stock, it's not really producing any jobs. If I buy Apple stock, It's not helping any jobs. If I go buy, you know, $10,000 worth of, you know, iPhones, all of a sudden a lot of companies, you know, benefit from that, a lot of workers benefit from that, whether it's here in China or wherever.

Like, imagine that, like a half a percent investment tax. Imagine that. I do think, though, that, like, investing in big companies definitely helps the company, though, like giving them funding to continue their operations. Like, although it's like picking up a piece of trash. It doesn't seem like a big deal in the greater scheme of things. just picking up a little piece of trash on the ground. But if everyone were to do it, it definitely makes a difference.

It's like investing in a thing. But there's something called the velocity of money. Yeah. And it's what value your dollar has. So if you take a $20 bill and you spend it, that $20 has a velocity of a five. So for every $1 you spend, it gets recirculated five times. Like you spend it at the restaurant. They pay their worker with that.

The worker then goes and pays groceries at that. That then goes to the grocery store owner who then pays their rent with that. So it circulates five times. When you invest your money, it has a velocity of like one and a half to two. So for every $20 you invest, it's only getting circulated one or two times versus five times and you spend it. So they look at how much money is circulating throughout the economy and they see that as what they view is the health. That's what scared me in March and April because we've never shot off a velocity of money like that. And all of a sudden is just, I mean, not completely shot off velocity of money,

but in a way we've never done before. That's what freaked me on. I'm like, how do you get that back up and running and things like that? But I think, you know, having all that stimulus out there definitely. I would like to see is them giving tax deductions for spending your money. I think, here's the thing. I think they need to make it so appealing for you to spend your money that you decide to spend it instead of invest it. If they literally say that the average person can begin deducting their expenses, they take their

standard deduction of $12,000 a year. But then on top of that, they could deduct the money that they spent up to $2,000 a year on restaurants, up to $2,000 a year in discretionary spending. Imagine that. That's an interesting idea. People would love to do that. And here's the thing, too, even if they're in a low tax bracket, if they don't fully understand, we're talking about the average person.

A lot of people don't understand how that works. And they're just like, oh, it's a tax deduction. They don't know that them spending a dollar is only going to save them 10 cents on that dollar. Need a vehicle that isn't afraid to make a splash? That's the Volkswagen Taos. Capable and confident, the Volkswagen Taos is fit for everyday life. Nimble in traffic, agile and tight spots, and still spacious enough for weekend getaways.

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that is going to help with the businesses, which would then need to hire more people to then keep up with that demand. Because now imagine people spend 10% more. Everyone spends 10% more. Yeah, incentives are huge, man. I mean, that could, you know, I agree more people would spend a lot more money. I mean, you think about it in context of like, why do I not just keep all my money in a savings account? Because I'm incentivized to put my money in stocks real estate.

Stocks, real estate go up, have money in a savings account, it becomes worth less and less and less over time. And so I'm like, I don't want my dollars to put in stocks, buy real estate. And so I agree, if you're incentivized to do something just as a human, like you're going to do whatever is the best play for you. And if that's spending money, you're going to do it. I think that would help if any politicians are watching this right now. Seriously, offer a tax deduction for average people. Anybody can take it that reduces their taxable income from money they spent on non-essentials. Interesting.

Just entertainment, food, travel, cars. What else do you spend money? Stuff like that. Yeah. You know, give it to a little bit for the stock market. I think there should be, I know we have 401Ks, but just allow people in a taxable account to take some sort of upfront deduction.

Something small. They could write off 25% of what they invest. Something like that I think would help. Imagine if they took it one step further and they were like, if you buy from, let's say, furniture manufacturers that make furniture in the USA versus overseas, then on a sudden, you know, all those industries start to boom in a massive way. they would end up doing.

I'll tell you what they'll, instead of doing that, they'll put a tax on everything else not manufactured in the West. That's what they would do. That's what they would do. You're like, you got to pay a 10% tax on imported goods, but if you buy it here,

you don't do that. I don't know. Yeah. Something like that to, but anyway, I agree. I think that would be fantastic. Yeah.

They should do, they should be doing that. Yeah. Anything that's manufactured it. You got to run for office, Graham. Everyone wants it. I mean, what do you think about,

You know, since you're a California resident, like, what do you think about, you know, the California tax rates, the state tax rates? It's ridiculous, man. Honestly, I've started looking into, because I've never paid attention to the California tax ever in my entire life until about three years ago. Okay. They start paying attention to it. The amount of money that California wastes is just insane. It's so stupid. Just the frivolous spending.

And I don't get it. We should, California should, in terms of the tax revenue, be one of the most luxurious state, like the most prosperous state to live in, you would think that outside would be like gold sidewalks and just flowers, if you look at Beverly Hills, their city is run so meticulously. And then you look at other cities that are just, I don't know where the money goes. And I think it's just these outdated models and just the legislation. and the hoops everyone has to jump through

that by the time you get anything done, it costs 10 times more. Jack and I watched this video the other week about the $2 million bathroom. And it showed this bathroom that was $2 million to manufacture. And they say, how does this cost $2 million?

We built this other thing privately for what was it, $100,000, $150,000, privately, that's substantially better quality. But this bathroom built public. publicly cost $2 million. How does that happen? Well, I feel like there's money going behind.

Like, I don't want to say there's like these handshake deals of like, hey, we'll employ you if you do this. And you could jack up the rate. Yes, government contracts. Yes, government contracts. It's just because I feel like, and maybe I'm not educated enough on this to know what I'm talking about. But my understanding is that sometimes they have minimums. They have to spend to show that they're spending the money. So they spend it anyway.

They don't look, they're not, like, if a person says, like, I'm going to spend. spend my harder money on this, I'm going to negotiate that, I'm going to get the price down, I'm going to cut cost, and try to get the best value. But when you're a government doing this, it's like, let's just get it done. How much is that? Okay, fine, whatever. They just pay whatever. So I think what I would love to do or have done is for someone to really go through

the state's budget and figure out what's working, what's not working. Where are we spending money and where is it going? And figure out what can we cut back on? Where are we overspending? and we should have a surplus every I mean really you would think that we should have such a big surplus but now we're at a deficit where does it go two million dollar bathrooms yeah but but not only that but the homeless problem has been worsening and it's it's gotten so bad yeah in the last I would say the last two years and I think just the state isn't providing the assistance and the mental health facilities that should be out there yeah we also have a slowing growth So this past year, we had the lowest growth rate that we've ever had since like 1900.

Wow. Yeah. It's going to be, what if it's, what if it was to go negative? That's the, that's a big question. It's going to start going to. You think so. This last year had a net migration loss, negative. Oh, so it was, it's already gone.

Last year was negative in terms of migration into the, into Los Angeles County. Okay. But Los Angeles County birth rates increased to the point where we're still growing. But the migration into Los Angeles decreased for the first time. Wow. But it makes sense. Housing is so expensive. State tax rate is so expensive.

The whole city I think is deteriorating. Wow. And I've never said that. Like I grew up here. Yeah. 30 years, right? Yeah. And I would say the last three to four years

has gone worse and worse and worse. And then maybe what do you think? This whole pandemic is kind of like the knife, you know, finishing it off, putting in the coffin. I think it was already going downhill. Okay. And I think when people realize that they could work remotely, I think a lot of people are like, you know what, I'm going to leave.

Wow. And I think the state has potential to return back, but they really got to just get down where this money comes from. Because what they're doing now is like, okay, we don't have enough money. Let's jack up the tax rates. But meanwhile, that's driving people out, nothing is getting better. They're going to tax people more. They're going to have more to spend,

but they're still going to have the same problem. It's just overspending. It's lifestyle inflation on a state level. It's like someone making $60,000 living paycheck to paycheck. Then you're like, all I need is $80,000, give $80. Somehow they're still living paycheck to paycheck. Where does the money go? The state, I think, is doing the same thing.

And it's really sad to see. I was covering that on my channel recently in, like, San Francisco, like, they're talking about tents everywhere, man. And, you know, you come out of your place, there's needles on the ground, there's feces on the ground. Like, you, you know, and you live in, yeah, it's like, it's the same way here. I don't expect it to be so bad when I started spending more time here. I mean, it's gnarly. Yeah, it's insane.

You have Venice Beach where you have these two to $10 million houses, and 10 feet away, or sometimes in front of these houses are tents. Tense. There are people living in tents in front of a $10 million house. What the heck? Seriously. And it's, it's, you don't believe it until you see it. But there's not only this big wealth gap.

but the state does not have the resources or the facilities to assist these people and give them the proper care they need because that's really what it's about it's not about get the homeless people out from my house not in my backyard it's not about it's about making sure the resources are properly funded to take care of these people properly because right now they don't exist I don't know where the money is going yeah that's not only that also crime rates have been increasing dramatically yeah but also but but but but What's increased lately is that they're not...

My understanding is that they're taking former, like, felon charges and calling them misdemeeters because jails were being overcrowded with petty crime. So crime under $1,000, that would include narcotics, small theft, stuff like this. Wow. And previously, those people would go to jail. But jails were getting overcrowded. It was too expensive to fund the jails, all these people. So they said those are going to be...

misdemeanors and we're just going to almost stop enforcing those. Wow. And as of recently, they've been letting people out and also just not arresting people for little misdemeanors and stuff like that or maybe even more serious crimes because of the illness as well. So they've been really cautious about that. So since we've started experiencing the illness, there's also been a dramatic spike since then.

Right. And it makes sense. Like initially when you see that on the ballot, it's like, why would you put someone in jail? Let's just say that's going to cost $60,000 a year to put someone in jail. for a crime that was, let's say, 400 bucks. The numbers don't make sense.

So on the surface, people think, okay, fine. But what ends up happening is that those crimes become a lot more prevalent because they're not enforced. And those people don't get necessarily the resources that they would have to lead themselves to turn the lives around.

Like, I was reading stories online of drug usage of that whole thing. And some people were saying, listen, I was that person who, and it just doesn't apply to everybody, but somebody was saying, I was that person, I was buying drugs, I was on this path, going to jail was the best thing that happened to me because it forced me to confront that and enter into sobriety. Yeah.

And they're saying, if I never went to jail, I would have continued down that path. I could see that. And I think a lot of it is mental health related, and I think in the 70s is my understanding. A lot of those facilities were shut down. I don't know the reason. I don't know how much this costs,

but it's just something needs to be done. It's not getting done. Throwing more money at the problem is not going to help. I think the whole thing needs to be rebuilt from the ground up. Yeah, I mean, you know, driving over here, there's a guy that was walking down the street here, and he's like, and he's walking bare from it. It's just like he's like out of his mind.

I don't know if he was on something or it just has like mental issues, but like that person, you know, I, you know. What was the stat that I looked? I think it was 65% of homeless are mentally ill in Los Angeles. I read a study on this. I think another, it's like 15 or 20% narcotics. And I think there's a small portion of those people that are down on their luck. But those people are typically transient in that they're homeless for a short period of time

before they can get themselves back up and running. I just don't think the social services are good enough to help the people who really. really need help. Yeah. Oh, I agree. It's crazy, though. Everywhere you go, you see people like that. Everywhere you go.

My first week here, I was driving to Ralph's, and I saw a homeless person walking on a crosswalk, screaming at a palm fron. Pointing and screaming at a palm front, making a huge scene. I saw a homeless person walking downtown, and there was an old lady eating at, like, a restaurant with her family, and this homeless person's running back and forth on the street, stopping cars, and he walks over to this lady, puts his head. this close to her and just yells. Wow.

Nothing sensible just into her ear. And this is also during times where we have the illness. Yeah. And this person is like invading her personal space, yelling in her ear. It's just ridiculous. Well, that's the thing is that now families are feeling like they're not safe here. Yeah.

You get a lot of families, yeah. Who, is that, that lady's probably not going to go out again. No way. She's like, you know, she's going to be terrified to go out. She's like, I'm not going to. That was hard to see. And also like mornings now, I sometimes go surfing a once or twice a week. week. And when I go surfing, on the beach, homeless people are just like everywhere.

Wow. Just sleeping on the sand as well. Oh, kidding. Yeah, it's gotten really bad. And what I've been hearing as well is that, again, I don't have any definitive proof of this, but my understanding is that other states will take their homeless people here to California and to Los Angeles. That's been my understanding from what... Right? I don't know what other...

cities and states you can talk about. You mentioned to me, and I did some research on this, and I was curious, that you told me Las Vegas offers their homeless population a one-way ticket to anywhere they want. And a lot of it ends up in California. But I was researching this. A lot of other states do that as well.

Oh, wow. Yeah, and it is a thing. So I'm not the most educated on this. Yeah, I don't think any of us are. Yeah, so I don't want people to... One-way ticket to Los Angeles. So I don't want people to take this, like, For facts.

Right. Do you do your own research? I understand that we're all kind of just talking based off of experiences. From my limited. Yeah. But it's gotten a problem. Regardless, it has changed dramatically. I've lived in here my entire life in the last three years, I would say.

The last 12 months have been the most transformative. I've never seen it so bad before, ever. But why do you think they're all coming to Los Angeles if we have such bad programs and assistance? I think it's enforcement. I think it's because there's very, very yeah there's no enforcement good weather

yeah which is very important and safe yeah and also safety in numbers you're less likely to be singled out if you're in a group of thousands of other people there are communities like you walk and there will be hundreds of tents lined up and they're playing music

they're like having fun yeah no absolutely if I were homeless I would rather be in a group of other people like that it makes sense that yeah and not on my own somewhere with bad weather. So it makes sense why they would come here. I get it. But it is just sad because people shouldn't have to live like that.

They should have programs. We should have some kind of funding or at least redirect funding coming from. Who knows elsewhere. And you would think for the tax rates that all of us pay, that some of that would be going towards funding programs to help people like that. And it's not. I don't know where it's going. Jeez, that's intense, man.

Yeah, I don't know where it's. going either. That's a whole sketchy situation because it's not like the highways are perfect and the roads are all perfect. It's not like you can say, well, the construction's perfect here and our infrastructure is amazing. So it's, yeah. Let's talk a, let's talk about a little bit more about taxes. I have a question for Jeremy. Yeah. Did you watch the video that Graham did with Kevin O'Leary? I did, yeah. Okay, so Kevin said that one of the biggest mistakes that you can do is not sell to realize gains when you think a company could be. overvalued or something like that. A hundred percent,

disagree. I mean, there was a lot of things, most of that video I disagreed with him on, Kevin O'Leary. You know, I just have a different point of view. No, you don't,

I mean, when you own great assets, truly great assets, you don't sell them unless things have changed or you need the money to put in a better asset. Let me clarify this. I said to Kevin, Kevin said, why don't you sell some of these

and then re-diversify? And I said, I don't want to pay taxes because 50% of that is going to go to tax. So I may as well, instead of selling a stock for $200,

and paying half of that, it's the same thing as me waiting for the stock to go down to $100. I'd rather just not sell. So you're saying you'd rather not sell to not get that money taxed up front. Not even for tax. It's just like, where am I? If I have somewhere truly better put the money,

an asset that's better to put the money, I'll put it there. But why do I want to move that money to cash? Okay, let's just say I sell an asset, a stock of mine. The money goes to cash. Is that money better served in cash or that assets that's a great asset, right? If it's a truly great asset, it's way better over there than in cash. Cash is just like we talk about.

It's just going to be devalued more and more over time. They're going to keep printing. Like this isn't ending. Like the stimulus packages of the world will get bigger and bigger and bigger as time goes on. I mean, nowadays we're talking about $2 trillion stimulus package. You go back 30 years ago. You couldn't even fathom that. So imagine where we're going to be at 30 years.

It's going to be like a $20 trillion package and we're like, oh, that's just normal. You know, it's just it is what is. So unless you have somewhere better to put the money, why don't keep the money there? Let's see you own a real estate investment property, right? And it throws you off. It's a great asset. It usually appreciates, right? And it throws you off some rental income and things like that.

Why would you get rid of it? Unless you truly had a better property to put the money in, you had no cash. So you, you didn't believe in it anymore. It seems like you actually, at its core, you kind of agree with Kevin O'Leary. It's like, don't consider taxes when investing. Just kind of consider putting your money into good, solid companies that you believe in. It's not like, yeah. Like, let's say Tesla goes from $400 to $700.

Why don't that camera die again? Let's say it goes from $400 to $700, you wouldn't sell at a point where you felt like Tesla's overvalued. Well, you could make an argument that Tesla's overvalued today, and I'm not selling. But let's say it went to $400 to $1,000. Let's just say tomorrow. Tomorrow. Because of a tweet from Elon Musk that you knew probably is not sustainable. Yeah, maybe then, maybe, I mean, that would be.

so insane because then you're talking about a you know less than a $400 billion mark cap into you know was out $1 trillion then I might have to actually consider at that point because that would be so insane but I mean as long as it somewhat you know believable like like Tesla's out 1164p very high but you can I can see a way how Tesla grows into that over the next five years if Tesla's at a 300 Ford P I don't know it might be harder

or a thousand or something like that In selling at... Oh my God, Ramsey. What happened? Can't see. Oh, what the heck? Way up there. So, in selling the Tesla stock at $1,000,

you wouldn't even think about taxes. So that's the point I'm trying to get at. Is that Kevin would not think about taxes when selling or when doing something like that? Yeah, I will say, I do try to make my decisions based upon fundamental decisions other than taxes.

Taxes, I mean, I'll consider everything, when I go into a decision like that, but that's like the last thing I'm considering, essentially. Taxes is at the end, I'm considering first do I have somewhere better to put the money, is that really a smart decision, things like that? And then, and then we can worry

about, you know, taxes at the very end of the process. What do you think of taxes? What do I think of taxes? So, I mean, I'm thrilled with taxes. I think I pay a way lower rate than I should. I'm amazed at the whole tax system. You know, it really opened up my eyes when I actually got like a tax, you know, like a professional tax account a few years ago.

I remember, you know, people around me, especially my dad, he was like, oh, you know, once I started making, you know, really good money, he's like, you need to have a professional do this. Like, you need to stop doing it yourself on H-R block or whatever. And he's like, whatever you, you pay them, you're going to get one of the highest ROI's you'll get paying anybody. And I figured that out.

Like, I think the first year I used a professional tax person, I think was 2017, 17 or 18. And I can tell you, like, that very first year, I was like, what? There's all these deductions of this and that. There was things I wasn't even doing before that even know you could do. And then we got the tax cuts. The next year, I think it was 18, right? The new tax cuts went into the law.

The 18 and 19. Tax cuts and jobs act. Yes, that's what it was. And then, like, yeah, you know. So, yeah, it's amazing, man. I think, you know, and obviously I live in Las Vegas. which is no state income taxes. So, you know, I'm definitely, because you think about it, right?

I mean, imagine, let's say you make a million dollars a year and you have to pay, you know, let's say 5% of that to a state every year, right? So you have 50,000 less every year versus a state like I live in where you have to pay no state income taxes. You know, that 50,000 over a 10-year span, it's a half million. But it's a lot more when it's invested. And if you can get just at 8% return. which is very average, I'm definitely able to get a lot better than like 8% return.

Never mind if you amp your gains up to, let's say, 20% a year on average, then imagine if it's 30%. And if you can do that consistently for a decade or two, I mean, you're talking about a difference of millions, if not tens of millions of dollars. Yeah. So that's where I think that's where you really have to start considering taxes. I feel like the more money you get, the more you have to start considering taxes and figuring out, man, am I really making the best life decision by living in a place that, you know, that maybe takes a lot of your money.

So it's really key in the whole thing. And I can understand why some people even move out of the country. You know, I don't know if I would ever go that far. Puerto Rico. Yeah. The thing that the United States is smart, if you move out of the country and you want to not pay federal taxes, you have to revoke your U.S. citizenship.

So if you move out of country, you still have to pay taxes unless you revoke being a United States citizen. I think that's where they're intelligent. Otherwise, I think a lot more people would do it. Amazon presents Jeff versus Taco Truck Salsa, whether it's Verde, Roja, or the orange one. For Jeff, trying any salsa is like playing Russian roulette with a flamethrower. Luckily, Jeff saved with Amazon and stocked up on antacids, ginger tea, and milk.

Habaniero? More like habanier, yes. Save the everything. Every Day with Amazon. Yeah. There have been stories I've read online of people who revoked their citizenship and then spend less than 90 days in every country they travel to. And they just pay zero tax. They found some loophole.

I forget what it was called. They're just not a citizen of anywhere. What was it? Like the flag. It was like flag theory. I forget. It was like the five flag theory. It was something like where they would travel to different locations for no more than 90 days at a time and pay no tax.

Wow. Yeah. You can move to Monaco pay no tax. You know, I think Dubai, I think Dubai also, right? Yeah. Is it Cayman Islands? Wow, I didn't know that. I know, like, I'm pretty sure.

Monaco, Dubai. Monaco, the real estate's insane. I've actually looked into it before because I was like, you know, like this is many years ago. I was like, if I get to a point where I got $20 million in stocks, $50 million in stocks, which was like five, six years ago, it's looking into this. And I was thinking about it and I was like,

imagine you make $10 million in stocks and you have to pay, you know, whatever amount to the government. Let's say you take $10 million in profits, and then I was like, man, imagine a Monaco, you pay nothing. You can still do all the same trades. You know what I mean? You can do all your research. All you need is an internet connection to invest in stocks.

What are you talking about Kevin about, let's say you have the $10 million in stocks. In our last podcast we talked about, all you need to do is get a loan against your stocks and just spend the loan. And you'll never have to sell your stocks. Oh, that's true. Yeah, yeah.

So I didn't look further into it, but I was talking to my friend about that. And this is something that confused me a little bit. So if you take a loan against your stock portfolio, how would you pay back the loan without realizing the gains of selling off the appreciation of the stock? But keep in mind, you also, let's say you have $10 million in the stock market. You take out a $2 million loan. Now you got $2 million cash.

You could use some of that cash to continually pay back the loan. So your only net cost really there is just interest. Yeah, they charge you the interest. Yeah, but then you're still going to have to, like, I mean, you don't just take out million to put two million dollars back into it. Yes, you do because you're paying less in interest than you are in taxes. So let's say the interest is 5%, but your tax rate would be 20%. It makes sense to pay 5% in interest on that portfolio than 20% in tax. So you take out, let's say, 2 million, and then you invest like a million of that 2 million. And then with that money, you're...

No, or you could have cash, or let's say you could go and buy a house and the stocks produce dividends. There's a lot of ways you could pay that off. But also, if you're taking dividends and stuff from the portfolio that you draw from, don't you have to pay capital gains on that, which is essentially the same thing? Right, but it allows you access to take a lot of money without selling. That's true. That's true.

I don't personally do it, but I could understand some people want to do that. I stay away from margin nowadays because I just, you know, the temptation is really hard when you start going on margin and then you see your stocks dip or other stocks dip, it's really tempting to just say, oh, I'll just do it.

It's not necessarily margin. It's called a pledged asset line. You could do that too. So a pledge to asset line, they'll usually give you like 20 to 50% of your portfolio back as a low interest rate loan fixed for a certain time frame. And it depends on the stock. Like certain ETFs and bonds, they'll give you up to like 80% value. Other stocks they'll give you like 10, 15%. It depends what it is.

But it looks really interesting. Charles Schwab has something where if you have more than $2.5 million invested, with them you could take out a loan it's under 2% it's like 1.75% for i think it's like a year it's it's some absurdly low rate that you can get on stocks yeah and margins well you know i know we're talking about kind of two different subjects but in relation to margin it's crazy because i always thought the most you can take out as 2x at at my peak craziness of 2015 with margin i was over 2x margin which was i didn't even realize you could go that that far with margin actually.

So, you know, it's just completely dumb to do that because you open yourself up to margin calls and things like that. What brokerage do you use? Fidelity. Yeah, I've been using them for about 12 years. Do you have any other brokerage accounts? Yeah, I have in Robin Hood, which I hardly ever use. I just set it up so I like understand how to use it

because some people ask me questions sometimes. What about Weebel? No. No, we do. I do use Chase. I've been trying out their product. The J.P. Morgan one? Yeah.

It's very okay. It's a worse experience of fidelity or anything else. I've really tried. So, you know. But it's still new. Yeah, it's still new. And I think they just did it because, you know, it's just easy. Yeah, exactly.

You know, stay relevant in different spaces. Everybody wants to be everything now. All these banks are trying to be in everything, man. They want to be your brokers. They want to do this. I want to do that. That's what the money is, though. They have to lead in with something free.

They can charge you elsewhere. Like Robin Hood, I could see getting into banking. I can see them having their own. credit card being a one-stop shop for everything. And then now the banks are trying to do the same thing. They're trying to be Robin Hood. Yeah. Trying to be the banks.

Yeah. Let's talk about my favorite thing and Graham's least favorite thing. Options trading. Oh. What do you think about it? And what did you think? Because there was mixed feedback. I would say 70, I would say about 80% of people agreed with me when I told Kevin that he should

sell covered calls on Tesla. Okay. What do you think? Oh, really quick, I call it picking up pennies. That's the term. Picking a pennies in front of a steam roll. Not you. Other people call it.

And then you heard it. And you were like, oh, Jack, what do you think about this? I was like, that's not true. I was like, I'm going to teach Jack a thing or two about this. Of course I've heard of that, but it's not true at all. Well, let's hear we got the expert here. I mean, I, so. The real options expert.

Let me just say, one person's picking up the pennies and the other person's the steamroller. Okay. Right. Yeah, but eventually. I don't, I don't, I don't, I don't. don't sell covered calls, I can understand why other people do. And I know people that do it and do it really successfully. It's just not something, because my thing is, I'm in stocks for massive gains.

Like, I'm not just in stocks for that 8% per year to, you know, if I'm going to try to get 8% per year, I'll just put my money in index fund and call it a night and not do all this research, right? I'm trying to get 20, 30 plus percent gains. So being that I'm in that position, I don't want to limit my gains just by doing, like, let's say, covered calls or something like that, because then you're limiting your upside. So I get that. That makes sense for you, right?

Like, because you spend so much time picking out specific stocks and then you put a lot of money of these stocks and you hold, right? But you find a desirable price for these stocks that you're happy to buy them at, right? Yeah, correct. So what if instead of selling comfort calls, it seems like it would be more your style to sell a put. So that's when you receive the premium, but then have a price that you already think this is a good price point.

I'm happy to buy this stock and you also get a little bit of money on top of that. Selling puts is the strategy that makes the most sense for me because it's essentially putting a bottom on a stock and saying if it goes down to this price, I'm willing to buy that stock. And so, yeah, I have a friend of mine who's always like, dude, why are you not selling, you know, you should be selling puts? You should be selling puts. Because you, you believe this stock's a great deal at this price. Why not make some premium on that? And then if it goes down a bunch more, you're going to buy it anyways. So go ahead and buy it. So I do agree. I should be selling put options. I 100% agree. It's just like, man, there's so little time in the day.

Like, you know, you just, that's the thing. It's like, there's so many things I could do in a day. It is selling put options. Is it important enough to me? Or should I put that time in trying to find the next, you know, planet 13, the next test for something like that. Why can't you just hire a jack to go and do put options? I might. I might literally.

Manages all of your stuff. Like, do you, or do you coordinate with all of your people? I have different people that manage different things for me. But I have thought about adding, it's interesting you brought that up. I have thought about adding someone to my team. that is just looking for other ways I can make money, things like selling put options and be like, okay, so here's our portfolio,

here's why this makes sense now, and actually them being on payroll, not like me outsourcing that to somebody else, like them being like my main man or woman to like look into other companies too because then I was thinking about it one day and I was like, what if I had somebody that I personally train them 100%

on what to look for in stocks and like, the thing is it's hard to find somebody that's going to think exactly like, me and have the experience. And if somebody thinks exactly like me and they have experience, more than likely they have a lot of money already. Yeah, yeah. And so, therefore, they might not even be interested in that.

So it's a tough thing, but I should. It would be really beneficial to me, especially as my accounts grow bigger and bigger and bigger. Because what if I could make an extra half million dollars a year selling put options? That's a half million dollars a year. You know what I mean? It's not like it's a small amount of money. And as the numbers continue to grow and grow and grow, I think I might do that eventually

over time. Even buying calls, because if you are so confident in these companies, you buy calls. And do you see them through all the way till the end, or do you ever, when the company appreciates in value, you exit the contract early? Calls sometimes I'll sell early. Yeah. So like I bought a Facebook call. Shoot, that would have been a year or two ago because I believe Facebook was going to go up. It went up a bunch.

And it was a long-term call. So when I buy calls, usually I'm buying for two years out or more. That makes sense for you. So the Jan 23s just came out within the past three or four weeks now. So you're getting essentially two years and like three or four months for that stock to appreciate over time. I'll look at those opportunities from time to time, especially in October, November, and some stocks that I think are really beaten down and have huge upside potential. I might play some 2023 calls in Dropbox.

I might play some 2023 calls in Nordstrom stock because those are two stocks that I think are likely going to appreciate. greatly over the next couple years and it might make sense to buy some long-term calls in those but I'm very specific about it like I don't I don't go super heavy in them because I hate the feeling of you need this stock to go to this price by this date I love the feeling of just like I can wait it out if that stock stagnates for two years who cares maybe the third year fourth year fifth year when this stock goes crazy how much do you invest call options a small amount like maybe five 10 thousand something like that I never go big. It's not like I'm going to buy a $100,000 worth of college tomorrow or something like that. It's just, it's too risky for me to do that type of move. For my risk tolerance, I like taking risk, but I like taking risks that I have time for it to play out. And to that, I mean, two years is a good amount of time, but still, man, it can get, it can get scary. Like, what happens if the whole economy

dips and the whole stock market goes down a ton for a year or two? We just talked about that. What if the stock market goes down this year, next year, does it go down enough where even if that stock's, even if that company's performing great, maybe they can't get to the other side as far as a stock price goes. So it's a little, it's a little tough. But I do do some options sometimes. I teach options, you know, in my private group, but mainly just because I like for people to understand the downside. Yeah. I think a lot of people when they go into any investment, but especially options, they're only looking at the upside and oh my gosh, I can make so much money, you know. And it's like, you know, you.

Yeah, you could also lose 100% in some of the strategies, depending on which one you do. So, but yeah, selling puts, man, it's something I should be doing. Yeah.

I think that is the option, I guess, like choice that is in most alignment with your current trading strategy. 100% agree. Yeah. Have you, yeah. So are you dabbling more and more into options now?

Yeah. Well, okay. So I don't want to come off. Like, I'm definitely not nowhere near, like even considering myself like a, total options trader like i've been trading for probably four months jack's coming out with a course

soon yeah how to trade options three thousand dollars more money that i've made in options is the price point you've probably made more money than most options traders that are selling courses out there believe i don't know about that but um yeah i've been i've been doing it for about four months now and people were saying like some guy was like oh you've made 500 or something in like three months that's abysmal return and i'm like yeah it is but also at the same point the reason why the returns were so bad is because when I was learning, I think if you're learning something

and you're a total beginner and you barely even understand the fundamentals of it, go into it with a conservative mindset. Don't like go all in and try to get like 30% gains or 30% losses right in the beginning. Yeah,

you know, like in the beginning of my option trading like yeah, my returns were really bad. But as of recently, I'm starting to get much better and better returns. Like my last three or four trades,

my last one was like 7%. The one before that was like 20%. The one before that was like 22%. What's your best one and worst one you've had so far? I have, percentage-wise. Okay, my worst one was probably like 1% that I gained. Okay.

And then my best one was probably about, like, it was one of the more recent ones. It was around a 23%. What was the strategy around the best one you had? So there were completely different strategies. One was a short-term sell put. That was the bad one. Okay, so basically if the stock goes beneath a certain strike price, I'm forced to buy it. And it was like one week in the future.

was very, like, in the beginning where I was like, oh, yeah, I'll take, I'll take 15 bucks, and I'd be like $10 putting up $2,500. But of course, it wasn't going to hit it because I chose a really conservative strike price. Overall, not my favorite strategy. It's just not worth it for me because who knows, it could plummet, you know? With the best returns, they're all short strangles. So that's just setting two brackets. And if the stock price remains between these two brackets, then I get premium from selling the call

and I get the premium from selling the put. And then I just choose these brackets based off of a kind of, I said a formula, but I that also in a joking way. You never say, I have like a formula for anything. Jack has a winning formula that he will teach you. Yeah. My formula specifically.

I came up with it. Me, a 21-year-old, who's been trading for four months. Hedge funds. Hate him. No, it's,

I just, I just basically, it's repeat process, like 45-day theta. 45 days out is when I choose a strike price. 16 is the delta. And then that's, that's basically,

I choose a stock with an IV rank. Okay. over like 25 because the premiums will be higher. But also, I think I'm going to try to close all of my contracts before the election because when I got into the contracts, it was about a month ago. And I'm guessing as we get closer to the election, the volatility will go up. And since I bought a month ago, it didn't really account for the volatility of the election, I'm guessing.

So I'm going to try to exit the positions because in selling options, when you're holding, you want a low volatility. But when you're entering the contract, you want a high volatility. Just a random tip for people. Sometimes, like, let's say a stock goes down a ton tomorrow, and let's say you want to buy calls or something, usually wait a day or two after that because the price I notice continues to drop a day or two after, even if that stock stabilizes or even if it was to go up a little, I've always noticed that it actually continues to drop, like what you'll have to pay the premium. I don't know why it doesn't reflect right away like a stock price will. It's just like a little tip out there. I've always noticed it doesn't make any sense.

That's interesting. Yeah, it's really, it's weird that you think that day it's down 7% it's going to reflect that. Sometimes it actually continues, the price continues to worsen quite a bit. Sometimes 3 to 10% I found, even if that stock's stable the next day. Really, really weird. But no, that's, that's intriguing. It's been working, dude. Yeah.

I have, I've got like total return. Like, I'm out over 20% now in like a couple months. And I don't play direction. So, in fact, a stagnant market is probably a good market for me. Like right now we have a crazy market. And Graham argued like, oh, if you just put the money in the S&P 500, I could have gotten way better returns, which is totally true. But also, the market's been rallying.

Yeah. You know, and I'm not playing any sort of direction. So I would like to think, you know, in a market where we're not going crazy all the time, I would still be able to get good returns. Granted, yes, if the market's rallying, the IVs will be higher, thus driving up the premium. But still, it doesn't, the market doesn't need to be rallying for me to be using this method. And, of course, I just want to say I'm just gathering data at this point.

I'm not saying like I know what I'm like I'm just I'm just plugging and playing like I'm trying different strategies and what's worked so far as what's worked and I have yet to lose money. I also I just want to say the put that I bought where Graham says you don't you're not realizing the loss which is like I was saying this could be the first time I lose something because I bought a put which I've never bought an option before that was the first time I did it. It was on Skechers. And Skechers went down for one day. Okay. And I got $50 profit. Oh, technically that was my highest return. That was like 40%.

Nice. In a day? No, it was like a week. Still, it's insane 40% in a week. Yeah, I mean, usually the suckers and options of the people that are buying puts and buying calls for the most part, you know. Because 90% I believe or so expire worthless. So. It's also hard to play direction, I think.

Like it's difficult to be so, you're good at it. But for like a long term. Yeah. Yeah. Short term, dude, in like two weeks total guess. Right, exactly. So I'm doing 45 days out because in the first 20 days you see a lot of time decay. Yeah. So I'm benefiting from the time decay and then I'll just exit a contract early.

But it's really difficult to play directions in the short term. And a lot of people just, the hype around options trading, especially now, people are buying all of these options like crazy because you see Wall Street bets and the communities grow. You see Tesla, right? And I think so many people have so much hype around Tesla that it's driving up the premiums to like exorbitant prices because everyone, you see, you know, you know, you see Tesla. Everyone's buying calls, there's such a demand for calls on Tesla that the premiums for those selling the calls are just so high. And I wouldn't tell anyone to like go out and just without knowing anything to start selling calls on Tesla.

But I told my dad because he had 75 shares of Tesla. Okay. And I told him he should buy 25 more shares and just start selling calls. And we did the math. The only way he would lose money is if Tesla went below $290 in one month or went above $560 in one month. And if and if it like doesn't. hit the call price, which was $500, then also he would get, if it didn't hit that, he would get like $2,300.

Like, that's like rent on a, like a property. You know what I mean? I've seen another strategy employed out there. This is a really risky strategy. But what some people would do is, like, let's say they have, you know, $10,000 I want to play with in options. They try to find the 10 companies they think are going to go up the most over, let's say the next two years. So you're playing like, you know, long-term

out options like two years out. And what you do is you put $1,000 in the furthest out-strike prices in all them. Now, this is a strategy that if none of them hit that, you're going to lose all 10,000, okay? But your hope is at least one of them hits. Sometimes your return can be over 100. Yeah, astronomical. Like imagine if you, like, let's go back a year in time, year and a half ago in time,

imagine you saw that, you did that strategy and you did it with Tesla. Oh, bank. On the, yeah, on the highest, you know, because you can, you can pay such a cheap price for those. So, and then if it hits, you, you make crazy money. The cool thing about that, too, is you don't have to write it out until the end. If you, if you hear news about a company or you lose confidence in one of those companies, you can accept a loss of 30, you know, 30%, and then just write that, like, write it off or whatever. Yeah, not write it off, but use it as a lowering year.

Yeah, I mean, for that strategy, I would be tempted to probably just keep it in every, until the end. That's because you pick out those 10 stocks and you're a better-to-die kind of guy. Yeah, and I would hate to like start making decisions around like because you're already taking this massive risk as it is and I would hate to start making trading decisions around that and trying to time in and out. That makes sense. Well, maybe I'll get it out in this out.

And like if you're going to go in with that crazy of a strategy, it's like just keep it until the end and hope one, if not two of those stocks hit. And if two of those stocks go way above that top price, the, this. the gains are going to be way more than you put in, but it's really risky. Or you just do index funds. Or you do index funds and lock in 7%. Not advocating for that strategy. It's very risky.

What do you think your portfolio could be at right now if instead of putting that money and investing in the actual common share, common stock, or whatever you call it? Instead of doing that, you just bought out long-term call options on all of those stocks. Where do you think you would be? There's more to life than finding the perfect car. But finding the perfect car can help you get the most out of life. Like the SUV that handles everything from drop off to off road, and the car that hulls groceries and hockey teams,

or the van that's gone from just practical to practically family. Whatever you want, wherever you're going, start your search at ototrater.ca, Canada's car marketplace. Shoot, well, I mean, you can make an argument that a lot higher than it is now, but man it's it's so it's so risk theoretical yeah yeah yeah but like yeah i mean it would be a lot higher there's no doubt because you think about all the stocks imagine if i bought all calls in tesla all calls in facebook skyworks elf fizzy get dizzy cruzy-dusy-dusy like all these stocks millions yeah oh yeah like let's say the public account was only options and i bought only calls you know it depends on

what strike prices you get them at and things like that and where do you where do you sell them at do you hold until the end. But yeah, I mean, that account instead of 860K, it would probably be five to 10. Wow. So because there's just so many home run stocks in there. But, man, you know, it's always about that risk reward. You're running a risk. Yeah, huge risk.

You know, what if the market kept down trending? That account could have been at zero. You know, imagine if this whole market comeback we've had over the last six months. Imagine if it just kept going down and then imagine these options were all expiring, let's say, in 2021, or let's say January, yeah, January 2021. Then we're at zero. Yeah. So it's just like, you heard about was it, the soft bank guy?

Didn't he just go crazy on like buying calls or something like that? That's what I knew the market top. Exactly. As soon as I saw Sox Bank do that, I was like, markets topped. And then the NASDAQ right after that news came out, went from like 12,000, started going down. Yeah. Like 11,000, 10,000.

He was on Wall Street bets for sure. Oh, 100%. He was a mod, actually. Was he really? I'm kidding. It's amazing. It's an amazing community. Do you peruse Wall Street beds?

Yeah, for memes. I try to go on at least once a week and see the newest memes. Yeah. Oh, I'm on there every time. Are you? Every day. Refresh, refresh. I sort by new.

Yeah. You got to look at the attendees. You have trouble focusing on recording videos because you're on Wall Street all the time. You're like, I've got to focus on doing this video. It's become a distraction now, honestly, to check Reddit because I keep thinking there's going to be something new on there, but there's never anything now.

It's great. Yeah. I'm hoping I'm going to be the first to find some breaking news, like something revolutionary that no one else is going to see. It's going to take you two days to get the news out anyways. Kevin's going to make six videos about it. I'm able to get some videos out there the same day. If I really, yeah, if I come up with a concept by 7 a.m.,

I'm able to get it out the same day. By 7.8.m. Wow. But sometimes it helps to be later on to a video because I get the full picture. I don't just put out the news as it comments, but sometimes I'm able to get some thought behind it. is more develops. Yeah.

And you can throw more opinion behind you because you thought it through for hours and hours. Right. And potentially, yeah. No, that can make sense 100%. I don't know if these cameras are going to shut off or not. Probably paranoid of them constantly. Here, I'll do it.

Dude, it wouldn't it be nice if they just record it for an hour straight? Do you have any strategy in the short term right now or do you never consider really the short term and you always think long term? So if I asked you like your strategy, when we last had you on, it would be the exact same as this time? Yeah. I have really no specific strategy in the short term. No, it's just adding to positions I really like and building those bigger and bigger.

Right now I'm building like four, I think, different positions right now in the public account that I can see as being my potential, you know, future Facebook, Skyworks, and Tesla's of that account. Because I'm trying to get that next batch, like Tesla, Facebook, Skyworks. Those are kind of like the 2018, early 2019. and those are just like, you know, the fruits come into fruition or whatever we want to say, and now I'm building out those next beast positions that I think are going to thrive over the next two, three, four, five years.

Did you see, meet Kevin posted something on his Instagram where him and his wife both picked one stock. It was like a year ago, and they wanted to see who could have the best return in one year. She picked Apple, and he picked Tesla. Oh, so they both did really good, though. Yeah, they both put in like $10,000, and they were just like, like crazy.

His must have went to what, 70K and hers went to... Yeah, it was a lot. It was a lot. 25 maybe, something like that. I don't know. It was a really interesting post. He's like, oh, yeah, guys, I forgot about this. This is a year later or whatever.

Oh, the HSA account. No, that's different. That's different. Kevin literally finds accounts with 100 grand in them. He's like, oh, we forgot about this account. Yeah, that was funny. That was funny. Yeah.

Let's say you have like a million dollars and you could only choose three stocks. What three stocks would? you pick to put those million dollars in three stocks today today shoot i'm probably going dropbox i'm going planet 13 oh gosh and i'm going going facebook so i'm playing like if you had if you told me i got to put the money in those three stocks so i'm playing facebook because risk reward really attractive the chance i lose money almost non-existent next five years chance i double up my money or more very high uh dropbox is a similar situation with facebook but with most more upside. I feel like actually quite a bit more upside. Maybe a little more dangerous than a

Facebook, but a lot more upside. And then plant 13s that, you know, stock that I think, yeah, it's all about that reward with that one. So you heard it here, folks. We will come back to this in 10 years and see, and see how he did. That would be, that would be interesting. Let's do it in 10 years. Okay, so I think, you know, I'm not sure if this is going to get included on the podcast, but I think we've got to break some massive news here. Okay, guys, we've been beating around the bush this entire video i don't know if this is going to make it in the video okay it will graham is going to move next to me in las vegas you heard it here okay breaking yeah i bought the house next door the house that i'm building so not my current house i live in building a

house i'm having a house built out there let's let's let's let's talk about this decision Let's talk about what led you to this. Let's just get it out there. Let's talk about this for a lot. A lot of things. But when you showed me Las Vegas, I never thought I would be able to live there. When you showed Macy and I,

Las Vegas, and it was, you showed me a part of Las Vegas that I've never seen before. You really like that strip club that much? Yeah. Macy and I just had the time of our lives. I can't believe it.

The crazy horse. Wow. It was nuts. And there's none here. So we, Macy and I, we have to go down there. Because that's where I'm going to film my videos now.

Exactly. Is there better content you could possibly film that a strip pub and girls dancing around? Might be monotonous. So anyway, so yeah, so you should Macy and I, just a really beautiful part of Summerlin. And some really beautiful parts.

And at a great time. And that's why we have all of the 20s. So anyway. No. Anyway. Yeah, we went off the strip. So we went to Summerlin, showed him Summerlin, and also showed you. You've seen a lot of Henderson, too.

I like Henderson. You've got to go off the strip, essentially. Everybody comes to the strip. They just see strip life, and they're like, that's Las Vegas. And then you go to the suburbs, and all of a sudden, you see, you know, all the parks and the community and the home. Yeah, and you showed us this community up there where you're building. And it was nice enough when I did the math and I realized that, you know what, it makes sense. It makes sense to do this.

And yeah, we're looking forward to it. Yeah, that's big, man. That's going to be great. What are we going to build pools that go underground? So connect the houses or what? Just swim over and, hey, what are you cooking over there, Graham? It would be fun to have an underground pool, though. Yeah.

The one that goes underneath the wall to your place, to your back. backyard. And you just swim under. That would be fun. It's all night time and it's like dark out and all of a sudden I'm like swimming under water and I just like grab your leg. Oh, it's a shark in here. Imagine looking out to like your pool and you just see like jamming it with some goggles in your room. Oh gosh. Hey, what are you guys doing there? Seeing what my next title is going to be so he could steal it. Yeah. You want to go to crazy horse tonight again or not? It's a joke. Joke. Joke. Joke. Joke.

So, yeah, Vegas. We only got one camera. We got one camera. We got one camera. If it cuts out, we'll just finish with audio. Graham, any other reasons? A lot of reasons, but I'll discuss it on the main channel. Okay.

Stay tuned, so now you've got a teaser. I broke the news for you guys, okay? Don't forget that. Yeah, and let's keep it a secret on this channel for now. No posting on the main channel about it, no making videos. Keep it a secret here for now. It's our little inner secret for people who made it to this point in the video, and then I'll make a video in the next few weeks.

That would be cool. So thank you all so much for watching and listening. Subscribe to Jeremy. I appreciate it. Financial Education. Thank you. Do you have any message to the viewers? Do you have any message to the viewers?

Yes. Invest your money. Focus on the long term. And invest your money. There you go. Smash the like button. And smash it. Oh, add us on Instagram.

Instagram. Cool. So with that said, you guys, thank you so much for watching. Really appreciate it. All of our information is down below in the description. Smash the like button. Also, limited time.

This offer actually expires, I think, a few days after this is going to post your last chance to get those two free stocks on Weble. Now they're both worth at minimum $8. Two free stocks. They did. All the way up to $1,600. So that offer expires, I think, on like the 15th to like midweek. So you only have a few more days to claim the two stocks, minimum $8. Get that down below in the description.

Thank you so much for watching. And until next time. Got to get the spray bottle. Can I use your restroom? It's right by the bathroom. It's over here. And then just down there. Can I use your restroom?

Right by the bathroom. That's like when you're caught up too much in something else. He's just not thinking about it. Oh, man. That was epic. I didn't even realize. He's got all the way up there. What the heck?

That's insane. Those turned off. Wow. I can't get over that. a bedroom straight by the bedroom. I hope they caught that audio. That would be funny. I don't know if it pick up way over there.

But yeah, Wall Street Betts is great. I absolutely love it. And there's a reason why Wall Street Betts has like one and a half million members. And Theta Gang has like tens of thousands. You know what I mean? Theta Gang's the exact opposite. The people that transact with Wall Street Betts members, you know, like no one cares about like, Oh, you're getting like 4% a month.

No one cares about that. Everyone wants to know about gaming like 500% are losing. Data Gang takes some money from Wall Street bets. Exactly, yeah. The real money's in Theta Gang. It is. Yeah, I love Theta Gang. It's boring.

It's like incredibly boring. I don't really look at it that much. Yeah. But Theta Gang, that's where we need to start marketing. Blake, those are our people. All right. Throw in the thing, Jack. They're on the iced coffee hour animation.

I just got her mind makes up. I always forget to do that. Oh, shoot, which camera do I look at? There's so many now. You don't even need... So if you're talking to anybody, it's that back camera. That's just pointed on you. That's on all of us.

This is on you and I. Once we get rolling with it. Well, for the start, don't we all look at the same camera or no? Yeah, we'd all look at this one. This one. Okay, cool. Oh, then also, we need the intro. Yeah, I can do the intro.

Okay. So... Oh, yeah. Go for it. Go for it. Yeah. Welcome it. Ice coffee hour. Yeah. Holy smoke us to say no.

No jokas. You need to do that. You do that, yeah. Well, oh gosh, it's chopper. The 21st ever episode of the ice coffee. Yeah, holy smokes is the-st-jokas. This is the 21st ever. Okay. And then we've made $6,200. All right.

But do the holy smokas. All right. Wow. Wow. Well.