TIP 123 : Part 2 Momentum Investing w/ Dr. Wesley Gray (Finance Podcast)
00:00We study billionaires in this episode 123 of The Investors Podcast.Broadcasting from Bel Air, Maryland.This is the Investors Podcast.They'll read the books and summarize the lessons.They'll test the waters and tell you when it's cold.They'll give you actionable investing strategies.Your host, Preston Pish and Stig Broderson.All right.
00:30How's everybody doing out there?This is Preston Pish, and I'm your host for The Investors Podcast.And as usual, I'm accompanied by my co-host, Stig Broderson, out in Seoul, South Korea.And we are back with the second part interview with Wesley Gray.And Dr. Gray comes to us with a wealth of information and experience.And he understands value investing, momentum investing.He's written four books.If you didn't catch our first part interview with Wes last week, which was episode
01:01120, you really need to go back and start there before you would listen to this episode becauseyou're going to be coming into the middle of a conversation and some of it's not going to makesense. And if you're a hardcore value investor like myself, you might come in a little biasedand not really understand the full context of what it is that we're discussing. So I'd reallychallenge you to go back and listen to the previous episode before listening to this one.So, Wes, let's go ahead and pick up where we left off. And a stick has the first question.West, investors might be interested in momentum investing, but for various reasons, becausedue to perhaps the cost structure, they might not be inclined to own a large basket of stocks,
01:42and they might also like the process of conducting research on the individual stock picks.So the thing I'm curious about is, does it make sense for the invest to spend time onindividual momentum picks to improve returns?and if so, how would he or she look at the individual pick?Well, so if you're trying to develop a basket of momentum stocks to capture momentum exposure,there's no evidence whatsoever that I've ever seen where if you kind of like want to look at quality,let's say, like we see some high momentum names and we want to go in there and try to pick the highestquality based on some fundamental analysis. The cold, hard truth, as far as we see it and
02:26what the data says is fundamental analysis does not matter when it comes to momentum.Like, it's momentum is what matters.So I think there would be absolutely no point of doing that.However, let's say that you want to baby step into using momentum as a value investor.If you don't want to just go to kind of, I guess, what the evidence-based way would suggestwhere you just have a pure momentum and a pure value, you may be a value investor doing yourfundamental analysis. And then one of the things you might want to entertain is what's the relativeprice momentum on this thing? Because we know, even if you just do cheap stock investing, within that,
03:07if you say we're cheap stock, but some cheap stocks have high momentum, some have low, those cheapstocks with high momentum would probably be a good place to look. So you could still use momentum in thecontext of a pure value investing framework. And arguably, it would at least give you better oddsof at least searching in the right fishing pond.So, Wes, I'm kind of looking at this as, you know, a viable option to implement into myvalue investing based approach.And I guess my concern is how much of my equity exposure should be dedicated to valueinvesting versus this momentum approach.
03:48And when I say that, you know, some of my portfolio might be fixed income.Some of it might be commodity based.Some of it might be currency based.So let's just say, like right now, I think that a smaller equity exposure is better basedon where the macro perspective is.And so let's just say that 40% of my portfolio is equities.How much of that 40% of my overall portfolio would you say would be appropriate to dedicatetowards momentum versus just straight value?
04:18Well, what I'll do is I'll just tell you what I do with my personal money.obviously everyone's got their own circumstanceand you really got to be a believerbecause what I'm about to tell youis for the believers thatget it and they just want to compoundin expectation. So what I dois, you know, the baseline
04:37is just 50-50, right?That's the brain dead version of doing it. And that'snot a bad approach. However,we believe in kind of like you want to kind ofmake sure you're getting the same risk amountfrom each bucket. And the reality isthat a dollar invested invalue stocks doesn't generate the same amount of risk as a dollar invested in momentum stocks.
04:59So if you have 50, 50, 50, like if you have 100 bucks, you put 50 in value, 50 in momentum,from a risk perspective, you're more exposed to momentum, right?Because it's just got more bang for its buck.So what we do is what they call like a risk parity or vol weighty approach.It's just a fancy term.But since you're just trying to balance the exposures, and it nets out typically to 60, 40 or sometimes70, 30. So as is your mission at the other show. So that would mean you're going to beoverexposed to value. We're typical around like 60% and then around 40% to momentum.
05:33Just because momentum, you don't need as much allocation to get the volatility and risk from it.Now, I'm really curious. And I know that this really kind of relates to a specific point in time.So people that are listening to this three years from now are, you know, way into the future.This isn't necessarily going to apply. But a lot of the people listening to thisright now would be very curious to hear your opinions on asset allocation and positioningbased on the current market conditions.Because when we look at the current market, yes, interest rates are super low, whichgives, I guess, people cause to believe that a higher price is justifiable.
06:10So if you're looking at a P.E ratio across the S&P 500, it makes sense that it should behigher because interest rates are so low.But in that same breath, we're seeing CAPE ratios right now in the U.S. that areliterally the highs that they've ever been except for 2000. So when you go across the lasthundred years, we're seeing some really high prices in the U.S. equity market. So I'm reallycurious, what do you think is an appropriate positioning in stocks in, you know, here we areDecember 2016? So again, unfortunately, we're just all about evidence. I mean, what's kind ofthe, what's the data driven decision here? And so we don't really make calls and we just got reminded
06:54of this. Because if you were to told people before Trump got elected that the stock market wasgoing to go up 10% for small caps in November, they would have thought you're like the craziest personon the planet. Right. So being able to predict based on gut or whatever's going on, like I justcan't figure it out, not really sure many can. Some folks are smart enough maybe they can do it.What we do, and it's going to sound ridiculous, but it's just what the evidence suggests is we are trend followers.It's kind of like momentum, but as we mentioned with stocks, stock momentum is about relative strength.So how much relative price appreciation you got to everyone else in the world?Trend following is basically looking at the same asset relative to itself.
07:38And if something's in a positive trend, ride the wave.the minute that trend bust, de-risk and don't focus on valuations.Like, we've looked at so many ways of try to tactically allocate based on valuation metrics.And everyone knows the data.You know, if you buy one when the capes are crazy, the 10-year expected returns are horrificand the realized ones are.But when you try to tactically implement that in a portfolio, like to create a tradingyou can roll out of that to see if you can actually benefit you just that you can't the only one
08:18that can is trend so if the thing is trending even if it's insane just own it the minute stopstrending blow out and that's really important in like high valuation markets where it's just you gotto follow the trend otherwise you're going to be sitting on cash for five years and miss out on a threex in equity markets you know it's funny that you say that because this is exactly what we seeStanley Drunken Miller do.I mean, you talk about a guy who can compound better than anybody on the planet.This is exactly what he's doing.You know, Trump came out.
08:50He was a huge bear for all of 2015.I mean, he owned, I don't know how much gold.25% of his portfolio was in gold going up to the election.The night that he found out that Trump had won, he sold his entire gold position and wentlong equities.And it was like, everyone's just like,has their hands in the air, like what in the world is this? And that's exactly what you just described.So I'm curious. So based on the trend that you're describing here, you guys are highly exposed
09:22to equities then at this point. Not really. So I mean, I can tell you because literally we justdid it today. But basically, U.S. equities long and strong, international, fully hedged,commodities. I think we're all in on those bonds, flat, no duration, bond exposure. Yeah, really the onlything you're long as U.S. equities based on trend. You're going to be kind of protected right now besides U.S.And Stig, I want to highlight something for the audience really fast before we go to the next part here.I think it's really important that people that are hearing that have to understand that Wes could change that positioning in a very short amount of time.Like he's saying that he's long equities right now, but that doesn't mean that he's going to hold that position in six months from now.It might be completely different. Correct, Wes?
10:07Yeah, no, definitely. Yeah, you got it. And if you're going to do what essentially what we're talking about here is market timing. We only dabble in it with trend following. And it's one of those things where if you're going to do that, you need to have like the iron will of, you know, Navy SEAL discipline and stick with it. Otherwise, if you can't do that, just do some static Vanguard buy and hold or go buy some, you know, like you guys promote like value stocks and companies you like.and just don't think about it.Because getting into market timing,unless you kind of know what you're getting into,is really kind of a dangerous thing for most people.Wes,I'm curious about what you said about being long American equities,because if you look at, like,
10:52in the overview of all the Cape Rates,America is definitely one of the more expensive markets.So is that because momentum investing doesn't work internationallyor what does the evidence say?As far as I remember in the book,in most markets,momentum investing was actually a good strategy.So what's the reason for your current allocation in that case?
11:14Yeah, yeah, sure.So there's, and this is something we try to clarify.So there's stock picking momentum, which is using that relative strength measure we talkedabout in the first episode.And that's where you take a thousand stocks, rank them on their last 12-month returns.And if they're in the top 100, those are good.If they're anything else, you don't want them, right?That's stock picking momentum.
11:39So if we're going to own equity, we always want to have an allocation to that kind of exposure.Either you want to own the cheap stocks out there and you want to own the momentum stocks out there when you want to own equity.So right now, U.S. equity trend is strong.So we're going to own value and momentum securities.International equity stinks.So we're not going to own any equities, no matter if they have the best momentum in the world,because the trend in that broad asset class is just not worth the risk to buy into that kind ofthat equity risk over in a non-trend market.
12:15That's essentially kind of there's two things.There's the stock selection momentum, which is about picking stocks.And then there's the window I actually want to own equities.And that decision, at least if you're in a market timing, and at least evidence-based markettiming, usually revolves around some sort of trend system.Let's take a quick break and hear from today's sponsors.All right. I want you guys to imagine spending three days in Oslo at the height of the summer. You've got long days of daylight, incredible food, floating saunas on the Oslo Fjord, and every conversation you have is with people who are actually shaping the future. That's what the Oslo Freedom Forum is. From June 1st through the 3rd, 2026, the Oslo Freedom Forum is entering its 18th year, bringing together activists, technologists, journalists, investors, and builders from all over the world.many of them operating on the front lines of history.
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16:35That's Shopify.dot com slash WSB.All right.Back to the show.So, Wes,do you have any tools on your sitethat provide some of this informationto people to show
16:48where your positioning is goingat certain points in time?Yeah, yeah.So we, on our tools on our website,we wrote another book,DIY Financial Advisor,which just as the title suggests,it's how to be your own
16:59financial advisor. There you got right there. And so we have tools where we basically map that outevery month for basically the system that we talk about in that book. But in addition of that,because we're kind of somewhat agnostic, we also post a lot of equity weights or assetallocation weights for a bunch of other whizbang models. People promote like risk parity andyou know, all these other things. And it's all free. You got to sign off that you're,you know, financial professional so they don't get sued. But to the extent that you're comfortabledoing that and you feel like you know what you're doing. Yeah, going there and you can go crazy.Yeah, and I just want to put it out there that we actually recorded two episodes with Wes
17:39more than a year ago about momentum and value investing. So, Wes, this is your chance togive a hard sell. As hard of a sell as you can muster to that hardcore value investor.I mean, you could really give this to me because that's kind of the camp I fit into. But sell somebodyon why they need to really consider momentum into their strategy,like really lay it on them thick.Got it, got it.Well, let me give you a thought experiment.And this is what myself, as a value investor,
18:15got me really thinking about momentum investing.Because you got to, from value guys,you got to map it back to fundamentals,because that's how we're wired to think.Great.So let's say, and I think I have example,the book we can even talk about recently. Let's say you're out in the valley,you've got LinkedIn and you got Google. Okay, LinkedIn blows up 50%, Google keeps grinding for whatever
18:44fundamental reason. Now, one would think that, you know, markets are efficient, you know, it's allabout discount cash flows, price action doesn't matter. Well, let me tell you something. Your cost ofcapital when you have a turd stock that lost 50% of its equity value is way higher than a hotstock that everyone wants to own and every banker in the street wants to sell. Right. So right there,the pure price action itself can affect through what Soros calls like reflexity feedback loop,your actual fundamentals because your cost of capital relative to your competition, even thoughfundamentally nothing's changed except the fact your price blew up and the other guys didn't it,It actually fundamentally screws you.
19:29Not only that, if you're the employees and you're a human, because all employees are humans,when they see a company that's blown out 50% of the equity and are thinking, ah, you know, a lot of this is an option value.I want to be here for a long time.And then across the street, they got the one where the stock price is going up four or five times.You know, they got like donuts for free everywhere.They're going to be able to attract way better human capital.Because a lot of human capital, they're not value investors.They're not thinking like, oh, like, well, why would I want to work at the overpriced company that's burning money on stupid stuff?
20:05I want to go work with this boring one that just blew up and is like a total great value investment because they want to work at this place.So just price action can affect so many fundamental things without fundamentally anything changing.Cost to capital gets way cheaper just by having great price action.Human capital acquisition, the ability to maintain it is way cheaper when you have great price action, right?It's just a fact.And so price action itself can have nonlinear second derivative effects on fundamentals that go underappreciated by the market because it hasn't shown up yet.And that's something to think about there because now momentum, even if you push all the wacky, technical,analysis, things aside, when we start thinking like that, now we're thinking, wait a second,
20:59maybe that price action is actually creating fundamental value that value investors never evenconsider because they're so buried in like the financial statements.Yeah.Right.But it's real fundamentals that might be fundamentally changing things.And we should account for that.And, you know, I think a lot of what momentum's mojo is about is that kind of stuff.Then the second one is, I mean, it's just straight up facts, man.
21:23you know, there's a lot of theories about why value investing is in many respects maybe just risk in a hidden clothing because like distress risk, you're buying all kinds of weird tail risk things that, you know, you just don't know about. And, you know, a lot of people argue about this. I don't, I'm not a believer on that, but there are people that intellectually argue that pretty sufficiently. When it comes in momentum, even like Eugene Fama, the dude that invented efficient market hypothesis says this is insane.We cannot explain this, and there is no risk-based story that has any real credibility.So it's just, it's a fundamentally more empirically robust phenomenon than value.So it's just purely the data's there to support it.And that's all fine and Danny.Now, why does a value investor have most the gain from momentum?Because value investors are those that are the least likely to ever want to.to touch momentum. And a lot of momentum people are the least likely people that want to own some
22:28boring, you know, stupid value stock. But now we've got a hidden diversification portfolio benefit whereI'm my hardcore value guy, Roger that. But if I can couple something that has the equal levelof octane, but it tends to yen when my value stuff is yinan and I can kind of, you know,help diversify that volatility and allow myself to sleep better at night, there's arguablysome value in that. But there's only value in that to the extent, and it's the same reason valueinvestors, the hardcore ones are successful, you got to believe, you got to understand,and you got to have iron will. I'm curious, Preston, are you convinced? And I'm saying this asI'm smiling. And it's really not to be rude or anything like that, but it's really, really hard
23:18as a value investor, to think to include something like momentum investing in your portfoliothat is purely based on price action. It just feels wrong in a way. But I think that theargument that you're putting out there, whereas I think they're really, really good.So I'm just thinking, Preston, let me just put it on you first. Were you convinced?To be honest with you, I am convinced a little bit here. The thing that it really gets at,though, is Wes's last point of this isn't something that you can just go.out as an individual person and kind of do the analysis on by looking at a couple differentcompanies that have a lot of price action on them because you're going to have gaping holes
23:59in the analysis. I think you really have to have some type of program. You have to have sometype of source of data that's consolidating the swath of companies across, call it the U.S.market or wherever you're looking, and give you a good basket that you would then have tore-optimized. And this would require a lot of time. And for, you know, a lot ofof people out there that maybe only have, call it 10K or 50K to invest, there's no way you'regoing to go about doing this approach because it's just too time intensive and resourceintensive. But if you're a person with a high net worth, I think that this is somethingthat is definitely worth considering if you have a very good execution of rebalancing a portfolio
24:40and looking across the entire index of stocks. And the other thing to give a small pitch onmomentum, even if you're just a hardcore value investor and implementing momentum in its purestform, it's not up to you and you don't want to go buy someone else's stuff or whatever,you know, Roger that all good. It still might be useful as a value investor as kind of likeanother indicator. I'm buying my cheap stocks, but maybe at the margin, you know, I give a littlebit of extra benefit to those that have high momentum versus low momentum. Because we know fromevidence-based standpoint, you're basically stacking the deck in your favor at the margin.And that's something that everyone could do with a lot less brain damage than running a pure
25:24quantum momentum strategy.All right.So, Wes, last week we had you answer a question from our audience.And we want to do the same thing again this week as long as you're up for it.Sure, of course.All right.So this question comes from Eileen Phillips.And let's go ahead and fire away here.
25:42Hi, Preston and Stig. My name is Eileen Phillips from Orange, California, and I'm a huge fan of all you young value investors. You're like my team. Thanks so much for your podcast. I really don't mind traffic. In fact, I'm often listening to you in the garage because I want to hear the end of your podcast. So I have two questions. First one, can you explain what shorting the S&P 500 does for a stock portfolio? Does it just balance huge drawdowns? Or why would that be something you might do?do in the current market. And my second question is, as a reading teacher who would like to inspiremy students to read more, what single person or event most influenced you're becoming lifelong readers?Thanks again and love the podcast.Hey, Wes, before I throw it over to you, I want to quickly respond to that second part becausethat's one I'm really passionate about. Eileen, I want to tell you, for me, I was not a big readerwhenever I was younger.And one of the things that inspired me to start reading a lot was I was highly interested in
26:48investing.And when I started studying Buffett and Charlie Munger and some of these other people, theone thing that I saw that just kept coming up more and more was that these guys wereobsessive when it came to reading and expanding their knowledge.They would constantly be talking about how all they did, their number one attribute isthat they'd read, they'd read, they'd read.And then I kind of started turning my car into a learning laboratory where, you know, I started off, just like Wes, I started off in the military. And so I'd always have these half hour drives or 40 minute drives into work. And there was just one day where I was like, you know what, I'm going to just stop listening to music. I'm not going to listen to music anymore. I'm going to turn my car into a learning laboratory. I'm going to educate myself in my car. Anytime I get my car, I'm going to educate myself.And for me, that was a major turning point with reading in my life.
27:43And now for much more than a decade, every single time I get in my car, I'm learning something new.So that has had such a profound impact on my life.I can't even describe how much of an impact that's out of my life.And that's my quick story on that.Now I'm going to throw it over to Wes so that he can answer your question.Yeah, I love that question.I think that's great.And so Eileen had two questions.
28:05The first one was, I guess, what was the benefits or cost?of shorting the S&P 500.In general,barring one status as a professionalwho knows exactly how and what they're doing,I wouldn't recommend shorten anythingjust because it's a dangerous game.In general, when you short the S&P,
28:26or let's go back,when you long the S&P,what do you get?Well, typically what you getover the last 100 years is you're going to getthe risk-free rate,let's say 10 duration bond return plus 3 to 400 basis points, which is what they call theequity risk premium. So the premium for holding risk. You know, historically that's been,
28:48you know, around 9%. Nowadays with, you know, 10 years, like 2 and a quarter plus 3 or 4,that's maybe 6% or something, right? So that's if you're long in the S&P. So when you shortthe S&P, you're eating that as now as a headwind. So the benefit, the benefit. So the benefit,of short an S&P is obviously if the market blows up, you gain, or if you have other longexposures in the rest of your portfolio and you want to hedge out kind of what they call themarket risk or the market beta, you know, you can get rid of that risk. However, it comes at ahuge cost. It comes at the fact that now you're essentially paying, you know, the risk-freeplus three to 400 basis point equity risk premium. And that's now not a tailwind, but a wind in your
29:35face. So I would avoid in general, just don't short equity markets. If anything, just sell downyour stocks if you can't handle it. Let's take a quick break and hear from today's sponsors.No, it's not your imagination. Risk and regulation are ramping up and customers now expectproof of security just to do business. That's why VANTA is a game changer. VANTA automatesyour compliance process and brings compliance, risk, and customer trust together.on one AI-powered platform. So whether you're prepping for a SOC 2 or running an enterpriseGRC program, VANTA keeps you secure and keeps your deals moving. Instead of chasing spreadsheetsand screenshots, VANTA gives you continuous automation across more than 35 security and privacy
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33:04This is a paid advertisement.All right.Back to the show.Yeah, I would completely agree with you, Wes.I mean, it's not only a question about not shorting equities.It's probably a question about not shorting anything unless you really, really know whatyou're doing.And in that case, and if someone would be interested in an approach like that, I think that
33:25for some types of investors that might be beneficial, say, shorting ESMP 500 and goinglong individual value stocks. That is an approach that one can definitely take up. It is definitelya risky strategy. It's more like a heads fund strategy and you might only want to do that fora part of your portfolio. But the reason why I bring this up and it's not necessarily somethingI recommend, but I just want to bring this up because what West talked about before in termsof beta and terms of how is that related to the market, that might be one way of if you think aboutit, you were taking away the stock market risk, because if the stock market should dropwith, call it 20%, and your pick, or across the border of your picks might drop only 10%,
34:11you will actually make a gain.So that is another way to be investing in the equities market.That's definitely by all measures, regardless of how you're going to measure it, is all valueat the moment.Yeah, and that's actually a great point.And you're just, again, highlighting that if you do it, you just can require another level of sophistication.We actually have an old article.It's called creating a tax-efficient hedge fund.
34:37And essentially what you mentioned in, their stake.If you believe in value, you don't want to deal with the equity risk, you know, a DIY hedge fund is, you know, go buy individual value.Security names, short out the S&P risk.So now you're basically spread betting between what you think your value stocks are going to do relative to what,the S&P is going to do, but you're not like exposed to if the market blows up 50%,you know, that's going to be painful.Now you're just exposed to how will your stocks do relative to, you know, S&P stock.So, and you're basically creating your own hedge fund.
35:11But to the extent you don't even know what a hedge fund is or you don't know how a hedge fundworks in a portfolio, you definitely shouldn't be creating a DIY hedge fund because it's just,you know, piling bad things on top of more bad things.but it can be a really powerful thing,but in general,it's just you probably want to avoid itunless you kind of know what you're doingor you're willing to invest some time
35:32and education on it.And to the book question,well,I mean, heck,I think Preston did a really great job.And I think for me,like,I've always been a reader just naturally,
35:41just always like to learn stuff.But going back to the military,you know,I think it's really got beaten in my head there.You know,I was a second lieutenant.You don't know anything.And you're about to go get shot at.
35:53It would be nice to have,have some experience, well, it's hard to get experience getting shot at. And so that's why I justlike reading because you can have the experience of a 100-year-old man as a 20-year-old becauseyou just read a lot of books and you get experience through, you know, reading and understandingwhat other people have gone through. I want to add some more to that, too, Wes, because I completelyagree with the points you're making there. A lot of the times I talk to people about the differencebetween reading books versus reading articles on the internet.And I am much more opinionated and biased, if you will, to reading books because I guess I look at it this way.
36:33If somebody took the effort, because Wes can definitely attest to this, when you write a book, it is such a major undertaking and such a drag.That barrier to entry to write a book tells you that the person who wrote that subject,really is passionate and has just the depth of knowledge that the typical person doesn't have.They have an expertise in that specific thing that they wrote the book on.So you're gaining this insight from a person who's really an expert versus somebody who justwrote a couple paragraphs and posted it on Wikipedia.I feel like you're getting a whole different level of understanding and knowledge when you goto books instead of just articles.
37:15If there's no reason to really go deep into something, then yeah, the articles will precise.but I think really focusing on books is so important.I can't stress it enough.And just I think a life lesson, which revolves around,well, you just mentioned there, revolves around investing,it revolves around pretty much everything.You got to do painful stuff to get gains.If it's easy and it feels good,
37:42like reading some cheeseball article on Facebook,you're not gaining anything, right?So things that have any value,typically have to be painful and annoying because otherwise we wouldn't have any value.So, you know, value investing is great because it sucks.Women investing is great because it sucks.Reading books is great because it sucks.Yeah, so I disagree, man.
38:05You got to just embrace the pain if you want to ever get better.And I can definitely say as a teacher as well, Eileen, it's going to be an easy sell for youto your students.Just do whatever you think really sucks.Hey, that's what we learned from Jesse Itzler, remember?That's true.Wes, I don't know if you heard this.We did an interview with the owner of the Atlanta Hawks, and he hired a Navy SEAL to live with him for 30 days.
38:32I just think I saw that.David Goggins, right?Yeah, David, he was the Navy SEAL guy that moved in with Jesse and his family.I think I learned about that listening to your guy's podcast.Yeah, that guy's a beast.I was telling my partner, I was actually doing a burpee workout.and, you know, feeling sorry for myself.And then, you know, this guy has the world record for pull-ups in 24 hours.
38:55Yeah.It is like 4,000 drops.Yeah.So, I mean, you know, it's crazy.Well, that was his motto.That was his motto in the book.It was one of his exact quotes in the book.He said, if it doesn't suck, we don't do it.
39:11Yeah.I agree.Huge shot out to Jesse Itzler.And we can't promote his book.I'm telling you, you want to read a hilarious book that's going to give you just countless amounts of motivation and inspiration.You need to read this book.We'll put it in the show notes if anyone's listening to this bit.Wow, what a book.
39:30I love that book.I can vouch for it.Everyone should listen to that podcast you guys did on it.That was epic.The rap song at the end where we wrapped to him was probably a little bit over the top.But, you know, we'll have it.Wow, what can you do, man?That's why you guys got a huge following.
39:45You guys go above and beyond.do the tough things, you know, to make it matter.Yeah, the rap definitely suck.So I guess we followed his advice.Remember, I was like hiking around, train for some event, listen to that podcast.And now you're re-infigurating my memory, because now I was like, wait a sec, I've heard this story.I'm like, wait a sec, that's you guys.And now I do remember this rap thing you did because I remember like laughing out loud,
40:10like in the midst of pain.They could, these guys are insane.This is a great podcast.My wife and kids heard it and they just looked at me and they're like,there's no way you were going to air that.And I was like, oh yeah, we're airing it.They just looked at me.You are not going to have anybody listening to your show after that.
40:29All right, Eileen, fantastic question.I love that one.For submitting your question, we are going to give you a free subscription to ourIntelligent Investor Video Based course that goes chapter by chapter,step by step, all through video.We're also going to give you the TIP Academy course, How to Invest in ETS, where we outline the processstep by step.We just can't thank you enough for submitting your question.
40:53So for anybody who's listening to this, if you want to get your question played on our show,go to Asktheinvestors.com.You can record your question there.And if it gets played on the show, you get a free subscription to our video-based learning website.All right.So, Wes, we cannot thank you enough for coming on.I know that people listening to this interview are they have to be blown away because youtake things to a whole new level, and we were just so excited having you come back on the show.
41:18There's a chance Wes might join us for the Omaha event, going to the Berkshire Hathawayshareholders meeting.He isn't able to commit to it 100%, but we're hoping we can convince him.So if you follow us on Twitter, Wes is on Twitter.We'll have his Twitter handle into our show notes.Please send him as many messages as possible and bug him and say, you better come to the Berkshiremeeting so that we can have some more one-on-one conversations with you.in our audience. So, Wes, please give our audience a handoff to some of your products. The name of
41:48his book is Quantitative Momentum. And he has a bunch of other books out there. But Wes, givepeople a handoff to some of your sites and where they can find you. Yeah, sure. So as far as books,we've got quantitative value, which probably be more amiable to a lot of the valueinvestigators out there, DIY Financial Advisor, which is just like the title says, how to do thisstuff yourself. And then Quantate Momentum is basically the book written for value investors onwhy momentum is interesting.You can reach us at, like I said,alpha architect.com,
42:19and we're for-profit.We've got ETS out there that actually do,you know, deep value and deep momentum investing,run managed accounts and do a lot of other services.But our overriding mission is power investors for education,which is why I love what you guys do.And if I can make it to that meeting,I'll try to make it out there because I love to meet your audience.
42:40And I think you guys are just doing a great thing for investorsout there. All right, Wes, thank you so much and thanks for coming on the show.That was all that we have for this week's episode of The Investors Podcast. We'll see each other againnext week. Thanks for listening to The Investors Podcast. To listen to more shows or access to the toolsdiscussed on the show, be sure to visit www. www.com. Submit your questions or request a guestappearance to The Investors Podcast by going to www.com. If you'requestion is answered during the show, you will receive a free autographed copy of the WarrenBuffett Accounting Book. This podcast is for entertainment purposes only. This material is copyrighted
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