Title: LIVE Discord Ask Me Anything Show: Joseph Carlson - Qualtrim Studio (Investor Exchange) Guest: Joseph Carlson (live AMA with Qualtrim members) Date: 2026-SEP-15 URL: https://www.qualtrim.com/app/studio/watch/c0ebda60-8849-4753-b581-6549041919ca Length: 1:09:25 Note: Transcript from the in-page English subtitle (WebVTT) track of the self-hosted, login-gated Qualtrim Studio video (no youtu.be deep-links); (mm:ss) cues real, grouped ~15s. Fillers (um/uh) and immediate word repeats removed; wording, numbers and names otherwise verbatim (auto-caption mis-hearings left as captioned).
(00:00) Yeah. Let's actually reframe the second part. Do what software companies do you think became stronger after AI? And what companies do you think became weaker because of AI?
(00:15) Yeah. So I think there's I think there's kind of like two things that investors can look at what software companies is. Some questions are right. If it strengthens a company or weakens it for most of them, I'd argue that it's a dynamic of both. So it's certainly weakening some parts of the company while potentially strengthening others.
(00:33) And that's a hard game to play. That's where the story gets more messy. So for example, if you look at a company that that was similar to one of them was Disney. Disney didn't have a SaaS Calypso, but it had a streaming apocalypse. Like, Disney had all this linear television, cable networks,
(00:51) they had all these assets. Then streaming really came along and Disney executives had to decide what to do. Do we embrace a $10 a month streaming Disney+ subscription? What does that do with our cable business? What does that do with our legacy business?
(01:06) And so it's the exact same situation where you have one part of the company growing super fast, like Disney Plus made. I think they got like 10 million subscribers on day one. And so, okay, streaming is growing really fast and that's really exciting. But then you look at the other parts of the business and their cable
(01:22) television business was in decline. So investors are looking at this having to go which one is it growing faster in net. Is this better. Is the company getting structurally better. How does this affect the margins. And that's a really messy that's the issue with software stocks is you're you're
(01:37) playing this game of trying to determine what part is getting better, what part is getting worse, and how does that all play out. And it's a really messy game. I like I like the clean stories where things just get better. So like Netflix, it's just getting better.
(01:52) They have no you know, there's no decline in a legacy business with streaming. They're just growing with streaming. There's no other properties attached to it. With most of the companies that I try to, I try to invest in, I like when they mostly have something where it's just obviously getting better.
(02:09) And it's not such a hard decision with some companies like Adobe and into it, for example, give those to Adobe and into it. I think it's very valid to argue that much of their product is getting better. When I use Adobe, I think that it's getting better,
(02:25) but I also think that it's very valid to argue that it's getting, a lot more difficult and some regards as well. So. For example, Adobe,
(02:40) I don't know, like you can do animations now through ChatGPT. Like you can literally make animations through it. You can make images through it. And now it's getting the image. Editing is still pretty bad, but it's only getting better with into it. I do think that there's going to be a lot of continuity.
(02:58) I think there's a lot of things that just drive people using the same software, but I also think that it's much easier to have something crawl through your finances, to sort out documents to instruct you. Like taxes are confusing to do, and AI really helps you do that.
(03:13) Is that better for Intuit? For TurboTax? I don't really think so. So my problem with this software is you're playing such a difficult game. I think if you're going to play that game, you need to have a couple solid KPIs to watch that show true improvement.
(03:28) You need to watch. You need to ask yourself the question of how many good quarters does a market need to prove that it's not really getting disrupted? So like, how many years are you willing to wait to prove the story's not getting disrupted? And then it's trying to gauge whether or not.
(03:44) Overall it nets out is more beneficial. My guess is with most enterprise level software companies, that there's going to be much more inertia and momentum and continuation continuity of using them than people anticipate. So I think that I don't think people are going to ban in Salesforce or Adobe
(04:02) or all these products. They're just too deeply ingrained. But I think that the ones that become a little bit more tricky, I would say are like the very user end ones. When I think about it, I think into it. It feels more dicey to me. It just feels a little bit more dicey to me. Like Credit Karma, I think is feeling more dicey.
(04:19) I think that TurboTax is feeling more dicey right now, and those are things people don't like doing anyways. They don't like doing taxes anyways. I look at other companies. I think the ones that are more enterprise level, like ServiceNow, are probably safer. I think that Salesforce is likely safer.
(04:36) The fact that they're integrating with cloud and anthropic, I think is a good thing. So it's tough. But overall my view is it's just a tougher industry. If I was to guess, I think that all of it will move up in kind of uniform together. It'll trade together.
(04:52) And I would say also in terms of what people are predicted in AI, they've overwhelmingly been wrong in predicting the destructions of companies. So like if you look at the history, there's so many companies that they
(05:07) that theoretically should be totally destroyed because of AI. One of them is customer service companies. So for example, nice ticker symbol. And I see they make customer service cloud like phone software.
(05:22) So customer service agents can answer the phone. They make the software that runs out on the cloud. So it's like the new way of doing customer service. And of course they've leaned into AI. They've implemented it in all of their phone services. But that company should be destroyed, right? It's a customer service company in the age of AI.
(05:39) Theoretically, it's just in the it's the exact target of what should be destroyed. And the stock has been destroyed. The stock goes down, but the revenue hasn't. They're still making revenue and they're growing revenue. So I don't see the companies getting destroyed to the extent that people are predicting.
(05:54) And I don't even see a lot of the AI predictions playing out. Like, you know, a good example is radiologists. Years ago, they said radiologists were doomed, aren't going to need them anymore. AI will scan all these X-rays and they'll read all the cancer and the diseases or whatever.
(06:11) They'll do a better job than the radiologists. And we have a huge deficit of radiologist. So I'm kind of mixed on it. I think that overall software do fine. But I do think it's a less. I do think there's going to be losers, companies that slow down their revenue growth a little bit. The stock multiples will contract.
(06:27) And also another thing. Last thing, I've gone on this for a while, but a lot of these software companies entered in to this dynamic at a super high valuation. And their valuation has actually compressed to just a more reasonable valuation. So software is considered such a king industry, such an amazing
(06:45) industry, undisputable growth, reoccurring revenue, deeply embedded. Nothing could even, you know, do anything with it. So suddenly there's one factor that shakes that up, even if it isn't going to destroy software, if it forces investors to even bring down their discount rates.
(07:02) So they're their hurdle rate for it. And those multiples come down fast. So part of it I do think is just multiple compression as well. So a lot of things I consider there the story is a little confusing on them. I'm looking for cleaner stories. I have some stories that aren't clean. Uber is not a clean story.
(07:17) That one does have a specific threat to it, but a lot of a lot of the companies I invest in, I think meet is a much cleaner story. It just doesn't have the same threat to it that other companies have. Yeah, right. Thank you for taking my question for sure, man.
(07:33) Anytime. You have a good one, Zuko. All right. I'm going to go online. And if you're not ready within like five seconds, I move on to the next person. Oh, nothing personal. So generous.
(07:48) You there? Can you hear me? I see a you might be on mute because I'm not hearing you. Well, I don't see you. I see that you're on the stage, though.
(08:09) Can you hear me? I can hear you now, man. How's it going? Okay, good. Thank you. So my question is, I know you have a very big portfolio that you show online. How do you manage security of your portfolio? Because with your name out there and your YouTube video out there,
(08:27) you probably are going to be susceptible to hacks. And people might try to even get into your YouTube account or your portfolio and then actually is not getting my portfolio hacked. It's my YouTube hacked. It's my it's my account.
(08:43) Because like, my whole my whole life is on my Google account. But I can I can go into that a little bit. First of all, I use like, super complex passwords and multi-factor authentication, and I disable SMS factor.
(08:58) So it has to be like app authentication. But then also with the portfolio specifically, part of the reason that I was actually thinking originally of sharing my portfolio was I thought, rich people do this. I see hedge funds say they manage billions of dollars.
(09:13) Buffett shares his portfolio. Why can't I? Like, why can't a smaller person share their portfolio? Like, why is that only reserved for the super successful people? So that was my thought process. And I'm like, there should be no reason I can't do that as well. And then when I started, when my channel started growing,
(09:30) I actually talked with my brokerage, M1 finance, and they kind of walked through a couple extra additional levels of security beyond just a typical one, because you're right, it's far more exposure.
(09:45) It's a large portfolio. Somebody would love to steal all the money in it. The truth is, it's much harder to actually steal from a portfolio than most financial institutions. So, for example, my money is far safer in a stock portfolio like an institution in the US, a regulated stock
(10:02) portfolio, than it is in a checking account, a checking account. Anybody from a bank account can, if they get the numbers, they can immediately withdraw it. Then they can wire transfer it out of the country. And once that money is wire transferred for like six hours, it's gone. You're not getting it back in a stock brokerage.
(10:18) The money sits there and it's not actually money. So when I show the money in my portfolio, that's a number that reflects the current trading value of the equity that I own. So there's no actually whatever it is, 1 million or $2 million sitting there that reflects the value of the stocks I own.
(10:36) And if I if somebody were to steal it, they'd have to gain access to my portfolio. They would have to go into the portfolio and they'd have to sell the stocks. So immediately I'd be notified or I'd realize that there's stocks being sold. And then when you sell that many stocks, there's also regulations
(10:53) that say that you can't even transfer that money for about two days. So they'd have to sell the stocks. They'd have to transfer the money. Well, they'd run into a problem because you can only transfer 50,000 at a time. That's the that's the cap that I have my, that M1 has. So even if I had the money
(11:08) sitting $2 million in a cash balance on M1 to get it out of M1, you'd have to transfer it $50,000 at a time. That'd be a very slow process. And then on top of that, you can only transfer it with linked institutions, which I'm my bank accounts are the only linked institutions.
(11:24) They'd have to link a different bank account to it, an external one, which also requires a bunch of a bunch of regulations. They'd have to submit a bunch of paperwork to M1 to link those new institutions, and there'd be so many red flags along the way. The whole process would take like weeks to do.
(11:40) You'd have multiple regulations and parts that you'd have to get past. It'd be very difficult. So actually, consider my money in the stockbroker much safer than money sitting in a checking account. Okay. And then the follow up question. So in the event that maybe you are away and your wife needs to get access
(11:59) to all these accounts, like, do you have a plan for that? I just want to know, because I'm also getting to a point where I'm trying to set up like a plan, in case I'm not aware I'm not there. My wife will be able to get into my account.
(12:15) Yeah, it's important to do that if you're away or if you pass away that some loved one actually has access to your institutions. Like I remember when my grandma on my dad's side, when she passed away, my dad didn't know where any of her money was, and he was finding money
(12:30) like a year later in different bank accounts that he had no clue existed that like, had like 50 grand in it, you know, so people don't know where money is unless you actually tell them even your family. For me, I definitely can do better with that. I plan on putting together a thing that just says, here's where I have the money.
(12:48) But you know, I have money. In Schwab, it's 4 or 5 institutions and the majority of its in like two, right? So I have money in Schwab and M1 finance. That's where the bulk of it is. So it wouldn't really be that you wouldn't need a forensic analyst to track down a
(13:05) if you needed that in terms of her just using it, I don't know. She never deals with the money. She's never moved money around. My wife doesn't care about money. I mean, she cares about spending it as long as a credit card is working. That's her concern.
(13:20) That's it. That's her only concern is if the if the credit card is working, then she's good to go. She doesn't want to do anything with our finances other than that she's focused on the kids and the family. A lot of other more important stuff that I don't I don't spend as much time on.
(13:36) Okay. Thank you very much. Yeah, man. All right. The real stacks. You're you're up. You guys excited for interest rates be hiked.
(13:52) There's, like, a 95% chance of them being hiked. That'll impact some stocks. It'll be interesting. I can't wait. You're just pumped. You're pumped that the interest rates are going up.
(14:07) I don't know, I'm not an economist. I don't know how affects home prices. It feels like it's going to make them just like the housing markets going to be destroyed. How can people even afford a home if interest rates go up anymore? The only way that it would make housing affordable is of houses
(14:22) went down in price. But I don't feel like that's going to happen. I feel like houses will stay the same and interest will just become more expensive. The my thoughts on the new duo I plan on doing so.
(14:37) I have another one teed up this week, a video where I'm going to go through like Apple, Intuitive Surgical a I'm going to be going through what is that stock called cases. They just tanked this year. I've done a deep dive on that one.
(14:52) So I want to do an update on that one. And then also I'm getting into Robinhood as a analysis. I'm going to be doing some thoughtful deep dive analysis into Robinhood because Vlad is just an interesting guy. I've been following him and I'm like, this guy wants to do everything with this platform.
(15:07) Like he's going in every direction, everywhere vertically integrating, while he's vertically integrating while moving out. He's just going everywhere. I think it's an interesting company. Nvidia is a strong by here. Probably.
(15:22) I should not have sat on the sidelines with Nvidia, but it's just incredible what that company continues to do. All right, let's try someone else here. How's it going? Hello? Can you hear me?
(15:37) Yeah, I can hear you. Terrific. Thanks for having me on. I guess a quick intro for people on the call. I've been investing, so I'm 28 years old. I live in London. I've been investing for about four years now. And following your content for two years. Okay.
(15:52) And made a lot of money through some of your picks like Google and ASML. So thank you very much. Yeah. And those have been the ones. Yeah. It was crazy funded holiday with that one. But my question I mean your portfolio is very stable
(16:08) and you do a lot of very deep analysis on not a huge number of companies. And I'm always keen to hear when you talk about a new company that you think of. So I was just wondering if you had a couple names and maybe not necessarily something you've earned before or done a deep dive on before,
(16:25) because I'm sure lots of people here have watched a lot of your content. But yeah, any, you know, two, three names that are kind of peaking your interest as we come into the end of this year abruptly or thoughts? Yeah, I'm so brand new ones. I would say one that has piqued my interest again,
(16:42) that I have not talked about publicly on videos much at all is Robinhood and its more so I'm not interested in buying it right now, because if you follow the stock price, it went through a huge dip and now it's basically recovered. But I've just it's piqued my interest to do research on it because what I see
(17:01) happening is I've been following that company for a while, and I just see the CEO of the company or the co-CEO, Vlad Tenev. He is he's very relaxed and he's almost like to come when he's in interviews.
(17:17) But I would describe him as extremely aggressive in growing the feature set and the capabilities of Robinhood. Like extremely aggressive with it. He is moving in every direction at once. And when I'm looking at this company, they started out with a layer
(17:33) which was Robinhood started out with a UI layer, right? They made it so that on the phone it looked really sharp and simple. And that that that was a UI layer. They started out with the kind of the memes that confetti, making it attractive to young people, getting them into finance.
(17:49) But now it's like going every direction. It's becoming a full financial service and it's moving down, I'd say downward more into financial infrastructure. And I see them doing this huge push into financial infrastructure that I think is really interesting because once you get if you look at a financial institution,
(18:06) once you get a customer, if you're even semi good, like if you if you can just offer a decent product, customers will use that product. The lifetime value is enormous. That's why banks will try to bribe you with like $1,000,
(18:21) deposit or something to use their checking account, because they know that if they get you using their institution, they likely have a customer for 30 years. So Robinhood has a lot of customers, those customers. Everybody knows the thesis that Robinhood has a lot of customers,
(18:36) and those customers are going to inherit wealth from the baby boomer generation. As they pass away, they'll they'll pass down wealth to Robinhood type of customers. And I think that's a very simple thesis and it's a good one. It's a nice tailwind, but there's also a lot more going on.
(18:51) Robinhood is moving away from the UI flashy layer to trying to become a huge financial institution and huge financial infrastructure, almost similar to like Interactive Brokers. And I think that Vlad is not going to stop.
(19:07) He's fine pushing boundaries a little bit, like pushing to the limits, and I just see what he's doing. And I think that it's it's a pretty intriguing story. Now. Again, not a buy recommendation. Not this is not the time I'd be buying Robinhood myself, but it's one that I it's piqued my interest.
(19:22) I'm going to be I'm going to be looking at it and probably making some content on it. I might do like a little deep dive episode. The other ones are ones that I've mentioned. I don't know if there's any brand new ones. I can look at my watch list. Intuitive surgical one is one. It's the first company in healthcare that I think is actually super good
(19:39) that from an investment perspective, I would say, yeah, I've already mentioned these before, but Shark Ninja is another one. My debate was Shark Ninja is you have to analyze it as a is it reproducible?
(19:54) Is it a company that has to do like one hit wonders, kind of like Disney? Do they have to keep hitting home runs with their movies they produce, or is it a company that has a more stable, predictable future? Shark Ninja is a little bit of like a research lab, like they really are. They have to come out with new products.
(20:10) They have to come out with new innovations all the time. My trouble with that one is it really reproducible and predictable? And I'm trying to figure out that question on Shark Ninja, because that one I think is really intriguing as well. Totally different category than these other ones. But yeah, I'll let you know as I come across companies
(20:25) that I think are interesting. Awesome. Thank you very much, Matt. Cheers. Yep. Have a good one. All right.
(20:41) Okay. So thoughts on the duo. Let me let me share a couple thoughts here. I have the iPhone and I think that the iPhone is the best product ever made. I think it's objectively the best product ever made. And my definition of best here is very specific.
(20:56) It doesn't mean that it's the best for everyone or that that everybody should buy the iPhone. I mean, Best Buy, there's never been a single product that has made a company more money and built a massive business on the iPhone. Like, if you were to say, I want to invent the most successful product of all time,
(21:13) you'd say, I want to invent the iPhone. It's the most successful product all time, bar none. When you when you look at that, the iPhone has gotten so good that I think it's OP right now. It's basically an overpowered product where to try to get around the iPhone.
(21:29) You have to move to different form factors. So you have to move to like the meta glasses. And I've tested those, but as I'm testing them I'm going, wow, this is really cool. I think they look great. The lenses are great. They feel great. They're actually light. The speakers are surprisingly clear. Everything's amazing about them.
(21:44) But then my wife texts me and I'm going to grocery store, walking around and it reads the text to me and I go, oh, that's sweet. But then I want to text her back, but I don't want everybody around me to hear what I want to text her back. And then I realize, oh, the only way that I can send
(22:00) a message back without everybody else hearing is by picking up my iPhone and texting her back, and just everything just leads back to it. You can't have a speaker based device unless you want everybody to hear the conversations when you're talking back.
(22:15) So there's limitations with everything else that tries to bypass the iPhone. And so what companies are doing are basically trying to build like different products that are similar to the iPhone, but slightly different, and they're usually a little bit worse. And I think that's the duo.
(22:30) It's a similar product to the iPhone. It's different. It's better in some ways, but it's overall worse. It's just not quite as good as the original iPhone. That's how they're going to keep selling the iPhone. So in some circumstances, the dual will be better for some users. If you're if you like browsing or reading or just kind of
(22:46) watching videos on your phone, if that's what you do. The dual is probably good. If you travel a lot, you're in an airplane and you just want to have a bigger screen when you're traveling. Dual is probably really good for that for most users. In most situations, just a standard iPhone is going to be better as a better camera. It's a better sized display, fits in your pocket easier way less expensive.
(23:05) So there's some short thoughts on the duo, but I have more of them that I could go into. All right, you're up, man. What's going on? Hey, can you hear me? Yeah, I can hear you. Great. Yeah. Hey. So, first of all, thanks for having me on.
(23:20) And just to start, the want to say that I've been a quite a long term follower of you on YouTube and in general, your content. I think it's really great. I think I've been following you, like, three years, I believe I see.
(23:37) I know I've seen your face while your picture around the discord a lot. So I know that you've been a follower for some time. Yeah. Cool. And yeah, I'm really thankful for all the content you put, because I want to say that
(23:52) it really changed my life. Like, really, for the better. I managed to you. I managed to go. I managed to grow my portfolio, I think from, I started from like ten K, $10,000 and gradually grown it
(24:07) from basically income deposits and alongside with gains. And now with you from my company. And today, after 3 or 4 years of investing, I have about $562,000 currently invested.
(24:24) That's that's more than I thought you were going to say. That is a tremendous man. That's awesome. And by the way, let me let me just say something real quick and then I'll, I'll let you continue. A lot of people, you know, when they look at the YouTube channel, they'll get really strung up on something I say,
(24:39) or some subject or some way that I present some data. They'll be like, oh, Joseph didn't do this right, or I can't believe he has this opinion on this topic. And I think it misses the point of the overall, the overall channel, these type of these type of stories. I hear a lot
(24:54) people message me and DM me a lot and they say, hey, really appreciate it. I completely have changed my finances. I've started prioritizing investing. I've built up a bigger portfolio. I'm motivated. That's the goal. Like that's the goal of the channel is to get people
(25:09) excited about finances, get people invested, get people so they have a stake in amazing companies and feel the power of like the economy. You know, if you're if you're just stuck in a situation where you're you feel like everything's working against you're just saving money, earning none of it.
(25:25) You don't know how to invest, how to really apply those things. That's not a fun situation to be in. And when I get those type of messages, it's a it makes the other ones where I get the root comments or whatever 100% worth it. It's just worth it because I've gotten a lot of a
(25:40) similar types of things, and that's the whole goal here. And when you guys are here on the discord two, you can help each other out that way to be encouraging to invest, do it well. There's a lot of people that share information here that are amazing. So anyways, I just want to say that I appreciate you sharing that though.
(25:56) Yeah, for real. Because of course along the journey I made a lot of mistakes. I may I had some major losses. Yeah. And overall throughout the time of my investing, as I learned from those mistakes overall the majority,
(26:11) I managed to make more games than I made my losses, which is obviously much more, it's it's definitely was a very worth it because I do feel like I became a better investor from like when I was a year ago.
(26:27) For years ago. Yes. And it's much better to make those mistakes starting off early on with smaller amounts of money and learning for them, learning from them, than plopping in $1 million into a portfolio and then trying to learn investing, that's far more dangerous.
(26:43) Yeah, that's that's my biggest fear. Yeah. So I basically want to ask, you believe like two questions to go into companies which are Meta and Uber and pretty much get your insight
(26:58) about both of them, where your view stands at the moment. Because there were a couple of things that happened with those two companies as right now, meta launched its Meta One platform subscription, which is obviously very bullish in terms of unit economics, but also a
(27:16) in the last week, the entire C-suite of Uber Daga. Andrew McDonald, the CEO of Uber and as well the CFO, all of them about shares of Uber.
(27:31) Overstock in the last week, which shows like immense confidence in the company's future and of course, in terms of financials and everything else, you probably seen both what these both companies delivered and probably will deliver in the future.
(27:48) And I just want to pretty much get your take what you see in terms of the where those cup and where those companies can be in the next 3 to 5 years obviously matter. We know it's like a more a safer bet
(28:04) because, the monopoly is just obvious. But with the B with the AV, cloud fear with Tesla and Waymo and whatever, the same debate that's been going on for like 2 or 3 years, like it's literally the same debate.
(28:22) Uber does show a lot of problems with their EV developments. And in 2027, 28, 20, 28, it'll be even more obvious. So would really like to get your take on both of these companies. Yeah. So definitely
(28:37) those are two of the companies I'm probably the most excited about right now in terms of, well, there's a lot of companies I'm excited about. I'm excited about Amazon, I'm excited about Netflix. There's a lot of them, but these two are particularly interesting. One thing you mentioned, by the way, is that insiders
(28:54) bought they like bought huge amounts of Uber. And in Qualtrics right now we don't have a great visual for that. I have an app, we have beta testers that we got onto it today. The feedback has been overwhelmingly positive, like really positive so far.
(29:12) But on that we also have a brand new insider buy and sell chart that shows a simple line of the stock, and then it'll show green or red if they've bought or sold. And then the dot will be proportionate to the amount they bought. So it's a much easier way to visualize that.
(29:27) So you'll be able to see that. And the reason it's important is because you'll see almost like 90% of companies insiders are selling, because that's how they get compensated. They just have scheduled cells. So when a bunch of insiders are buying a company, Peter Lynch talked about how that's a very bullish indicator.
(29:43) It's something to look at because they really buy to either signal strength in the stock and the valuation and their confidence, or that they just want to make money. CEOs are like anybody else. They want to make money. And if they know their stock is cheap, they want to buy it so that they can have, appreciate
(29:59) and make money and the buys and sells, as some of these executives are incredible, like Jeff Bezos sold the exact top of Amazon. Of course, it's a little bit self-fulfilling, but he'll wait until like a 15% pump of the stock and then sell a billions of dollars worth at the exact top.
(30:16) It's just incredible. His timing, whoever and everybody else is not good as timed as Jeff Bezos on Amazon. But regardless, with Meta and Uber, we'll start with meta. I do like the overall subscription. I think they have a lot of room to grow. Their meta is going to become the biggest advertising company
(30:32) in the world, surpassing Google even with YouTube. And then meta has a long. Basically, I've gotten rid of the meta revenue by segment because it's it's advertising and then it's everything else, and the everything else is like 2%.
(30:48) So the charts basically worthless. So I basically took that one off Qualtrics because they're just an advertising company, which means that if they can grow any subscription revenue significantly and it actually is meaningful, that really is a benefit to the business because they should try to become a hybrid.
(31:03) And I think they're going to be able to do that. I'll also mention that meta muse. If you haven't downloaded the muse app, and you if you guys haven't downloaded it and you're invested in meta, I'd really recommend downloading it. It's free. Link it up and just try a couple of things like
(31:18) just say, hey, I'm looking for these Nike shoes. Can you find the best deal for them? And it's true a genetic technology. It'll go out. It'll open up a little browser within the chat within the app itself, and it will start searching through websites like you can just see it working on your behalf, looking for that deal.
(31:35) And it does a bunch of other stuff. So I really think that they're they're on to something big there. It's the first time that I've been wowed since the original ChatGPT writing HTML. This is like another time that I was wowed. Is seeing this technology really based for end users
(31:51) and customers is incredible better right now? I think that it could be worth substantially more in five years. I you called the company like safe, and I would hesitate to use that term for any individual stock because we've seen what happens.
(32:06) Individual stocks meta could go down to $100 if the sentiment really got terrible. Right. It's done that before. So I wouldn't want to imply that it's a safe company. But I would say that the risk, I believe, is very asymmetric. I think there's much more upside than downside with it.
(32:21) When I look at it, I could see the stock going to $900 plus very easily, just a few with one earnings report and some sentiment change. And this thing can jump because when you look at stocks that have the springboard that can jump, they have a low starting valuations, they have fast growth.
(32:38) They have some type of bearish sentiment causing them to stay at that low starting valuation. And once that sentiment switches, the valuation could easily go from meta from a 20 to like a 2526. If that happens, a stock is I'm way up on the stock, so
(32:55) I think it could change very easily. I think there's a lot of factors to it and I don't see any. We got past the biggest lawsuit they got to. They're paying a billion a year for that. I don't see any big risks with it right now.
(33:10) There's nothing that's alerting me or making me feel really sour. What was that? I was really happy with the result again, in the lawsuit that they spread it across ten years of paying these settlements, and also
(33:27) how strategically they even engineered it for including Google. Well, technically, YouTube and TikTok to, hey, join us to help children. It's it's a little bit hilarious.
(33:43) I was laughing when I saw what they did because when I realized they put a bounty on those guys heads, they're like, hey, $5 billion here, $5 billion. If you get TikTok and YouTube to agree to this as well. So immediately they put a literal financial metric on getting YouTube and TikTok to operate with the same system,
(34:01) which YouTube I do think is different. It feels different than Meta's products. The risks are different, but YouTube is not innocent for kids either. I don't let my kids watch YouTube. It's what I'll let them watch a streaming service
(34:16) in the kids version of a streaming service before YouTube, because there's just a more limited scope. But the streaming services, like five popular shows that they can watch with YouTube. I don't know what my kids are going to get into. They could get into anything, and they always seem to go for the weirdest stuff, the most even kids are drawn to like the most.
(34:35) You know, the thumbnails that are the most exciting, so I don't. I think that YouTube is different, but it still has risks. TikTok for sure should have the same type of regulations that Facebook does or Instagram does. I don't see any reason why TikTok is better for kids than meta.
(34:52) I don't I don't think that argument would stand at all. But now that now meta has positioned themselves as having the moral high ground, saying that they are being responsible, they implemented all of these things and they're encouraging their competitors to do the same, which I think is funny in terms of Uber.
(35:11) My main thought on it is I do think that people are overestimating the risks of Uber and underestimating the benefits, like for example. They're overestimating, I think, the total risk of how fast
(35:26) and how much market share robotaxis will take, and then they're underestimating how quickly Uber will integrate autonomous vehicles into their existing network, how difficult it is to put autonomous vehicles outside of very structured cities, like
(35:42) in the more random places. And I also think that people are underestimating the sheer scale of Uber. So one thing that people look at is they'll we're very visual. We like seeing videos and visuals of like a robotaxi driving down a street,
(36:00) but when you actually put the numbers next to each other of how many rides Uber is doing compared to the next biggest robotaxi network, which is right now Waymo in a in a week, a full week time, Uber completes more paid trips than Waymo does in about 13 minutes.
(36:19) So think about that 13 minutes out of a week. And Uber just did the amount of trips that Waymo is done. And the lead is being extended by Uber. It's not like Waymo's catching up in the amount of trips. No, Uber's adding on more incremental trips at a faster pace than Waymo is.
(36:38) So every quarter they're adding on a multiple Waymo's worth of trips just like tons of them. Right. So the numbers are very staggering. And I think that Uber has time. And time is really important because it will give time for other companies to catch up to Waymo with their technology, to integrate it
(36:54) into Uber's network and then Uber, and then it'll be a battle between who has the biggest network, who has the biggest offering. When I pick up when I'm traveling and I want to pick up an app to get to where I want to go, I would much prefer an option that can get me anywhere.
(37:09) Areas that are restrictive to Avs and areas that allow Avs. I would prefer the network that has both of those options integrated into a single app. So I know whatever app I'm. If I use that app, I'll just have a ride no matter what. So if Uber has the complementary of autonomous vehicle
(37:26) and humans to fill in the gaps that where Avs can't go, and I know that I'll get either, isn't that a more attractive option? Yeah, I really think that's that's really where I believe that in the near term at least,
(37:42) I'm not looking like, you know, 15 years ahead where it's going to be only autonomous vehicles. No, I'm looking at for the next 3 or 5 years, that is just going to be a hybrid approach, right? If we have a utilization problem where we have peak demand
(37:57) and the supply for Avs is pretty much constrained, that it's obvious that the human drivers basically are the ones who are going to fill that demand and who does it better than Uber. Yep. And you don't even need to give the traveling example, even if you're in your local city and there's a concert or a ball game
(38:13) to having that influx of traffic, you may not have enough of that, that fleet of Avs to fulfill all that demand. So again, you'll want to use the app that has the flexible demand. There will be Avs that take a set amount of demand in cities with just the common commute back and forth.
(38:31) So Uber will have to deal with some demand. But even in areas like San Francisco where Waymo has operated for years and that's like their best city, Uber still profitable there and still growing there. So I see it as one where I think the risk is worth it.
(38:46) It's not without risk, but I think the risk is worth it given the stock price today. Yeah. Basically that versus DCF calculation for Uber. And even if you apply like a 3% terminal growth value, which is basically inflation or GDP and just a 10% growth in general,
(39:05) you have to buy the stock below $73 in order to basically not lose money. Like this is how much the valuation is just ridiculous. And if and if you do the sum of parts valuation like you did last year with Google, right?
(39:20) You split all of Google segments like G, P, YouTube and everything and applied like a valuation to each one of them. Right now, the market cap for the mobility side is more like 84, 85% of the total market cap of Uber, which means you get over its fright.
(39:38) The subscriptions business pretty much pretty much for free. Like, yeah, this is how people mock those. Some of the parts valuations on Google a couple of years ago. But they're right. At one point when I was investing in Google, what really clicked to me that I just had
(39:54) to lean in and buy a bunch of the stock was I was really on the fence of how much BT would affect Google search. I thought there was a real possibility it could impact it because it's is amazing. So I thought there's a possibility of it even though it wasn't showing up in the reports.
(40:10) But at one point Google was selling for like $1.8 trillion or something like that, or I think it was $1.5 trillion. And I was I was doing the math, Google Cloud and YouTube and Waymo
(40:26) and just their services outside of search were worth more than that. So you can see that that so even if, even if theoretically, Chad Toby took a Google search down 50%, the stock was already discounted as though it was going to do that when it didn't.
(40:42) So sometimes the narrative of these companies, the way that investors treat it is we're so story driven now that we take a bear case and they start applying it for that bear case before it even happens. And that's what they did with Google. It was trading at such a discount based on the spare case of ChatGPT,
(40:59) that the pricing of the bear case was largely in the stock before it happened. There are some other stuff too, like the risk of Chrome being sold off, but I think a very similar thing is happening with Uber. There's a lot of bearishness being priced into the stock. It's typically the time when you can buy, and if those bear cases don't
(41:15) really come to fruition in the way that they're supposed to, then you get a huge return that way. So I'm very hopeful with Uber and Meta, but I have a lot of time. I'm going to wait around with these stocks for a long time. Yeah. And okay, I don't want to take a more time because I believe others have questions.
(41:31) Just a final small one. What do you think in terms of Meta's CapEx guide for next year? How do you feel about it? Because a lot of analysts estimate that matter will, I believe, spend like
(41:48) 180 to $200 billion of CapEx and obviously will be free cash flow negative. Yes. Next year. I think a lot of investors are very short term focused, and they're Zuckerberg very long term focused. And when I look at it, there's very good logical reason
(42:06) that they would want to spend a lot on CapEx very quickly, very quickly. So consider this. Do you think it will be easier or more difficult to build data centers in four years than it is next year?
(42:23) Let's let's let's assume Democrats regain control of the House. So they have the white House control. Is it going to be easier and more difficult to build, buy land, expand in 4 or 5 years if that happens or next year?
(42:42) I think. Yeah. Well, obviously build them as much faster, as fast as you can and just get on with it. Basically, no, 100% the regulatory environment now is accepting data centers. And you can see that you can see the pushback against that.
(42:58) We have a viral thing going on. People hate data centers. They pull super negative. Right. And so when I look at it and not only that, but it's kind of a turf war. Like there's only so much land that's like adjacent to a major cities that you can actually build in getting, permitting, getting the land.
(43:15) It's very difficult to do. You can't wait five years, wait for every other company to take all the prime locations and try to build during a more regulatory, difficult environment. So it makes perfect sense to me that Zuckerberg is getting these reports.
(43:30) He's looking at it when we can build how much we need, and he knows that this land is going to be very valuable to do to get a hold of right now. Is it going to make the financials of the company look much worse next year? Of course. But why does he care? He's not operating the company for next year.
(43:47) He's operating it so that down the road he can have a much bigger company. Zuckerberg does not. Zuckerberg wants to own all the tools to be able to create what he wants. He doesn't want to be that that in the same type of prisoner situation, like I mentioned in the previous episode,
(44:02) that Apple's in where the relying on different companies for their technology. So he's not going to sit around and watch other people build an AI and then say, hey, can I use your model, please? Can I use the best one? Or we'll go to this open source one and we'll try to use that. Now he wants to own all the tools to build all the best stuff.
(44:18) So I think it makes sense from his lens. I think it makes sense to build while you still can, because I think that data centers are only going to get more regulated. They're not going to become less regulated. And so I think it makes sense for them to kind of rush
(44:33) that and get a hold of all this land and the permitting while they still can. To me, it makes perfect sense. Yeah. For real. I think the only thing they probably do is present. Another good buying opportunity for Wall Street to think short term.
(44:48) For short term it might. The investors today don't like investment. They don't like CapEx. They don't like acquisitions. They like it when a company just does the only thing it does and tries to squeeze margins higher is what investors reward.
(45:04) Yeah. So yeah, that's it for me. I'll let someone else ask questions because I've been here for way too long. Thank you very much, Joseph. And we'll see each other again soon, I guess, or I don't know. All right. Appreciate it, man.
(45:19) Thanks for the questions. Later. All right. Let's get someone else here. Looking at the chat. Thank you. Yeah, we got a live chat here. Okay. Hi. How's it going, man?
(45:35) It's been great. Thank you for having me. Sure. Just to tell you that I just recently joined your community, and I'm very enjoy listening to you. I travel to work by train.
(45:52) I have to change train. I have two trains. I something like one hour and on train. So, I most of the time I'm just listening to you. Authors and everything.
(46:07) So it's been great. Yeah. I always look. I used to, I used to work a normal job before YouTube, and I worked it for a long time, and I switched companies, and I was part of the commute every day having a routine.
(46:22) And I had my favorite podcast that I would listen to. I would switch off. Sometimes I would get into different ones, but there's some that I just kept listening to. And it's funny because when I started YouTube, I thought, there's no there is no good, continual continuity and podcast on stock market or investing.
(46:41) Like, there's none that I found remotely interesting, but I was interested in that subject. So it's funny to be on the other side of that. I just thought there was there is for sure people that would benefit, and it would be more fun to listen to what's going on in the market, because there's a lot of a lot of interesting things going on in business all the time.
(46:57) So, yeah, I totally know where you're coming from. Thanks. My question is regarding cases. I listen to the deep dive that you did. I really enjoyed it. And,
(47:12) and just recently they had the financial statement released and the stock like went down. I think something like that. And if you take a look at the last month
(47:30) they are more than 30% down. And after listening to your deep dive, it seems that it's a good opportunity. But then when, you know, when I'm doing the dishes on the bottom
(47:47) and taking assumptions like, 10% EPs goals and multiply like 25, that is reasonable. I think so,
(48:02) what you see, what you get is the and the, Hold on. That is like, if you if you want a 15%, return the
(48:19) why should be around 450. So I would like to know what you think about it. I honestly think you're spot on. Basically that's the problem with cases is you look at it and it's it's a great company. It is a great story. It has a bigger moat than you would expect.
(48:35) It really does have a bigger moat. But the valuation is always a thing where you're a little bit concerned about what this company I plan on going into this one more like I like I highlighted, I'll have another episode where I kind of get a market update on these companies, so maybe,
(48:50) maybe I'll share some thoughts. Now, when I look at cases, I think it's an exceptional company. When I compare it to other ones in my portfolio, like a Costco or even a Texas Roadhouse. I don't think it's that good. I don't think it's as good as those ones, but I think it's still really good.
(49:05) And so if you can buy a company like this at the right price and it has a good growth story, you can get really exceptional returns. The returns don't have to come. A dollar from cases is the same as a dollar from Nvidia right? Like if you earn money from these stocks you can still make a ton of money.
(49:20) And when I look at cases, basically the setup was they were going into this year on a high investor was very high. Valuations were a little bit on the stretch side. And that's what I noted in the deep dive is towards the end, I mentioned that
(49:36) when you have these type of companies that are basically like this format convenience store, a restaurant, QSR, whatever it may be, the biggest KPI that you're going to track is customer traffic. If customers continue coming in at increasing numbers or if they decline, which they refer to as same store sales,
(49:54) which is a combination of customer traffic and prices. So if customers come in more frequent basis and your raise prices are going to have higher same store sales for cases last quarter that came in, I think at like positive 3% or something around their one is expected to come in a couple percentage higher.
(50:11) So expected to come in 4.5% or 5%. Now that seems like a small miss. But we're talking to a business where a couple percentage points is a big deal, and when the stock is priced as though we're just we have momentum, we're going
(50:26) the stock, we're going to cruise and we're going to crush this earnings. And then it comes in not even meeting the same store sales but below it a little bit. All of a sudden investors go wait a minute. Maybe things are slowing down. And then there's commentary on the call,
(50:41) all the kind of vice things that they share with other companies, like cigarettes and alcohol sales and drink sales. All of that was down, they noted. It's down for everyone, not them. So it's an industry wide thing, so it's not really a problem. But again, they weren't priced like the rest of the industry.
(50:56) They're priced like cases. They're the one that's growing faster doing better. And so I think that it was just a combination of a stock that has a lot of positive sentiment, a lot of momentum, investors pricing in a really positive return. And then they get something negative in there that brings the company down.
(51:12) I think that this selloff was a bit of an overreaction. I think that the stock likely is at a much more attractive valuation. Now. I haven't like you have gone in and ran all the DCFS, but I'm assuming it's at a more reasonable valuation now, but still not like a
(51:27) still I don't think it's a still today even after the price fall. Yeah I did it with you. I have another question which is more like,
(51:43) regarding the, watering website and I think it's, I think it's a great. And I really enjoy using it. I, am I missing in the bottle is,
(52:02) you know, if I take a look at the company revenue. Revenue. Okay. I really miss to see if there was a possibility to see a not just the revenue but the revenue growth.
(52:17) Okay. So it's if it's possible, if you think about it will be it will be very nice to have. So you're saying the revenue growth is in like you have the bar and then you have a line going over it
(52:32) telling you the growth rate over time or what are you talking about it. If it's possible to have that shows the revenue goals instead of the revenue. So I can say for me to hear what was the what was the revenue goal.
(52:48) Interesting. Okay. So you would you would like it so you can drag from any quarter to any quarter and it shows you the or the total growth over that time period. Yeah. Okay. Yes. So I'll have more on this. I don't I don't want to, you know,
(53:03) we're we're really close to releasing a mobile app. And I know that's not what you're asking for here, but basically the mobile app that I've been working on is not an imported version of the website. We didn't grab the website code base and say, hey, we're going to put this into a mobile app.
(53:19) It's a completely new code base. They don't even have the same coding language. So it's complete refresh build, and it has a lot of the stuff you're asking for in that. And so when I looked at it, the reason that I did a mobile app is I was looking at analytics, and around 44%
(53:35) of total usage on quatrieme is on the phone, which is a lot, and right now is better on desktop than on the phone, I think. I don't think it's it's good on the phone. It works. But I think we can enhance that experience. So this will just be one additional thing.
(53:50) It's going to be at no additional charge. It'll be something that you'll use. I think you'll really like that. It has that exact feature you're talking about. You can use two thumbs and drag and see the growth rate between any single data point. So there's stuff like that that we're doing. But then when this is done, we're going to be looping around
(54:06) and redoing a ton of stuff on the desktop website, like it's every single view is going to get a complete refresh. It'll be a lot better. So that is that's kind of the next direction we're working ourselves to. And it should be quick. This isn't stuff that's going to take six months to a year.
(54:23) It's stuff that every week we're making substantial progress. Great I can I appreciate it. Thank you. Yeah, man okay. Thank you very much. Yeah. You have a good day. Thanks for the questions. I'll do one more and then we'll we'll cap it off there.
(54:41) Actually I'll get I'll get Archer and Richard. We'll do that. And then we'll cap it off there. Are you there, Art Archer? Because I say it.
(54:58) Can we move on to the next one here? You can join back in if you're here. Richard, are you there? Hey, Joseph. I'm here. Are you able to hear me? Yeah, I can hear you. Great. I've been with you for almost two, three years.
(55:13) It's been great. Thank you so much for what you do to the community. I think is great. More importantly, I joined your channel for your thought process. I came to know about your YouTube a few years back. I felt like the way you see things is very long term,
(55:32) and our overall revenue stream, because every time we see a stock, we always feel like it's overvalued. But yeah, the way you see us to oh, what's the revenue stream, what it will be like relatively over a long period of time.
(55:47) So in that sense I have few questions. Okay. My thought process is also very long term. Let's say over a period of time you have 20 or 30 million, overall net worth with the way column and other things you are,
(56:02) you will eventually get them pretty confident when you have a lot. Man, I hope so. That's a lot. I'm nowhere close to end of the day with the inflation. With the inflation, I don't know anything but nonetheless. Right. Let's say for example. Right. For 2030 million what would be your view of how will you manage it
(56:21) different. And if you're still going to stick to 10 or 20 stocks, would you be comfortable investing a million in each? They matter. Of course they are all big companies. Easily we can put that million or 2 million or 10 million
(56:36) over a period of time, if at all. We all get to 100 or 200 million, assuming that we are still interested in doing stocks. So if you do that, can you hypothetically project yourself to that level and then say, what would be your approach?
(56:51) Or would that point doing a million or a 10,000,000 in 1 particular stock is too risky for a single news to take away? 5 million. How would you view it? How would we adapt to that level at some point?
(57:06) Yeah. The interesting thing is that as my portfolio has actually grown substantially in value, I've reduced my number of holdings. I haven't increased them. So when I started, when I started my YouTube channel, you could go back and look at video one. And for a time I had like every I just loved stocks.
(57:23) So I was investing in like 50 of them. And I wanted to own this company in this company. And then I thought, I can't really keep up with this many companies and some of them I'm not even as excited about as others. And so they started to just I started to trim them down to fewer and fewer holdings.
(57:39) And I had a lot more success with a more reasonable group of holdings between, I think, 10 to 20 than having like 40 holdings. I think that's too many. So for me, it's it's a nice spot to be able to manage the companies
(57:54) in terms of the risk or what I would do. So if I had $25 million, my thought process would be I'd probably put like 5 to 7 million in just an ETF, and then I would invest the rest rather aggressively.
(58:09) And that's actually not as dangerous or risky, because 5 to 7 million is enough for me to live forever very comfortably. I could take out 100, 150,000 a year. I don't have any real debts, so I can take that money out and live on it and be comfortable, which means that I'm not.
(58:25) I'm not taking a great amount of risk, even though I'm investing a lot of money into individual stocks. And I think more to the point, the risk that you take, I don't think is so much the number of holdings. That is one factor. I don't think you should have less than seven holdings. When you look at it, there's a curve that shows you
(58:41) the single factor risk of a called specific risk. So risk that like the CEO dies or there's fraud or there's something very specific to a company, not a systemic or global risk. Those risks are huge if you have less than seven holdings.
(58:57) So if you have like two holdings, you're really just gambling that nothing in particular goes wrong with those two stocks. Because if something happens with one of them, half of your portfolio is toast. But the curve of reducing risk by adding more holdings,
(59:13) you get about 90% of the benefit at around seven holdings. And then adding another 1000 stocks brings that from like 9,090% of the benefit to the next five to, you know, adds like maybe 5 or 6%. So basically on that curve, you want to get above
(59:29) seven holdings to really reduce the specific risk. But then also within the holdings you need to look at risk factors. So like with my portfolio I do look at risk factors I don't own. If I had a portfolio that had 15, you know, let's say 20 stocks
(59:46) and all of them were different banks and regional banks, I have a lot of holdings, but I have the same risk factor. These are interest rate companies. They work on a spread. They all have the same type of thing. They're all dependent on the federal funds, interest rate and different market dynamics.
(60:04) So you want to have not just look at the number of holdings. There are a number of positions, but also the type of things that can impact your companies. So the type of things that can impact big tech is different than what can impact Costco. That's different than what can impact Uber,
(60:19) and it's different than what can impact Netflix. All of these companies have very different that some of the overlaps, but they have very different risk factors. And then there's risk beyond that. Like the balance sheet of the company. I have companies that are overwhelmingly strong balance sheets.
(60:35) They're super. These companies like Amazon is Amazon's technically one company, but you could almost treat it a little bit like an ETF. They have so many established businesses that are cash flow generative
(60:51) that to me, it's not like investing in Amazon is not like investing in Chili's. Right. They're just very different in their structure. One of them is far less risky intrinsically long term than the other. So I look at risk very differently.
(61:07) I don't think my portfolio is as risky as someone that invests in highly volatile, speculative positions with the same number of holdings, and in terms of my wealth growing, I've still felt comfortable. I guess the number of the amount of money that I'm investing, I haven't felt
(61:25) any degree of uncomfortableness with putting it into my companies. I don't know, I could have another 100,000 or $500,000, and I'd feel fine putting it in my same portfolio. Maybe I'll get to a point where I feel I feel like I'm taking a lot of risk, but I feel like if that happened, I would.
(61:41) I would change my portfolio. A way to deal with this, I think practically, is really just do a hybrid approach, make 40% of your portfolio ETFs or 50% ETFs and 50% individual stocks. That relieves a lot of stress.
(61:56) It makes it so that that, you know, you're just you just have that part that you're not picking. Your mind's turned off. You just have an ETF. And then you have the part where you're trying to outperform and beat the ETF. And it's also very encouraging. I think it's very motivating to do that because you don't have to build a fully rounded portfolio.
(62:12) That way you can just invest in the stocks that you really think are going to outperform. It doesn't have to be quite as balanced of a portfolio. So I like that hybrid approach as well. I have ETFs as well in a Schwab account. It's about it's not much.
(62:27) I think it's about $350,000 is what I have 300,000 to 350. So it's not some huge stockpile that's way bigger than my public accounts way bigger. But I am putting a little bit of money in there because I do want to have some ETFs as well. So I kind of balance it that way.
(62:42) I do a mix of ETF and then the individual companies and then my portfolio I feel like is very deeply entrenched, diversified and risk factors. And I don't like letting one company become too big of a percentage. So I think it's dangerous.
(62:59) So like for example, Texas Roadhouse became a top two position. It was the second largest holding in my portfolio. And I thought I'm going to and it was trading at a hefty valuation. Two and so I took a little bit off the table at that one.
(63:15) I liked the company. It wasn't because of that. It was more so a portfolio management thing. So I do I'm conscious of it and I do things like that as well. Not fully agree. I've been observing how you manage a small position as well, and you're able to trim off at the peak and things valuation go beyond.
(63:32) Sometimes it can go beyond that, but nonetheless, I've been seeing how diligent you are. Talking of one follow up question on the ETF, have you narrowed down your mind from to, a vocal or the part? Because I know most of your portfolio is overlapping.
(63:48) If you go to see it, you are talking about it that many of the models were also suggesting we were instead of even though you like it more because you were doing it. Okay, so here's my thoughts on that. I have the majority right now on G, because that's what I've been buying.
(64:05) For those of you that don't know, G is the Schwab Large Cap Growth ETF super low expense ratio, and it gives you exposure to the highest quality compounding machines in the market in the United States. So you're going to find like Mastercard, visa, Costco,
(64:22) all of the big tech Nvidia like all these companies. You're going to find those. It doesn't have all the semiconductor stocks. So it hasn't raced up with semis. But it has a lot of those long term compounds and its pixels. Companies from either the S&P 500 or the QQ it can select from both.
(64:37) So I love that ETF. And I'd say that's a great substitute for my portfolio. So if you're saying I want to invest like Joseph but I want to do it in ETF form. She is a great investment vehicle to accomplish that. Now I have started buying VTI,
(64:54) which is just the US total stock market cap weighted. So it doesn't pick growth companies. It's just and it has like thousands of companies to and that one's much less opinionated. And the reason that I picked that one to start buying
(65:09) is because I was thinking about it. And I was thinking with my individual portfolio, I have a very strong opinion of large cap, high quality growth companies that have amazing fundamentals, but that is a certain type of stock. And then I'm turning around and I'm buying an ETF that has this same opinion.
(65:27) So basically all of my portfolio was reflecting one single opinion. And you know if that opinion has any issues then it affects everything. And the goal of ETFs is to kind of, I think not exactly reflect the same strategy you're doing with your individual stocks.
(65:45) It's not just to mirror that. So I thought, okay, maybe I'll have a less opinion opinionated ETF in my or less opinionated types of holdings in my ETF portfolio. And VTI is an opinion ETF. It's just US companies by market cap.
(66:02) There is no factors other than that. So it does have it has home court bias. But I guess that's one opinion. But it's very unappreciated. And I think that that breaks the link between my portfolio and my ETFs a little bit better.
(66:17) So I'm probably going to still be buying VTI. But again that's all. That's because I already have like 1.6 million in my portfolio resembling these type of companies. If I buy, I'm buying more of these type of companies in another portfolio, reflecting the same type of risk factors.
(66:35) That's true. You had any thoughts on that? We will assess VTI when you are leaning towards VDI. Vivo has a little more quality company than VTI has, even the lower quality ones. Where you looking at me for that context even though gives a product coverage
(66:51) but good quality. Yeah. So I'm not like an ETF expert. There's people that really dive into ETFs and they know everything about them. But from my understanding, VTI is even less opinionated than Vol. And the way the way that I'm using opinionated is like
(67:06) like how specifically you're selecting companies. So veo is a top 500 companies in the S&P 500. It's a Vanguard index with a super low expense ratio. It's fantastic. It's what Buffett recommends. But VTI is very similar it as those same companies.
(67:21) But it also just goes down the ladder. And it introduces a lot more companies underneath the S&P 500 and things. Yeah small caps mid caps. You have those companies as well. And I think that your a little bit splitting hairs.
(67:36) If you're like oh my gosh this decision of ETI and view. Oh yeah. You know they're both great. If a company anybody this way if a company is so good it's in VTI and it's not in v o it eventually end up in V oh.
(67:51) Like it'll graduate into the S&P 500. So you'll capture those already VTi those smaller companies. You do get some extra advantage if smaller kind of value, lower quality companies end up doing better over different circumstances.
(68:07) They can they can do better than the higher quality ones. And again, it's just a little bit more exposure, a little bit more broad, less opinionated. You're more invested. So that's where I found myself on the ladder.
(68:23) You can also go in like emerging markets and do all of that. I don't want to go that far. I'm just going I'm going to do the VTI. Yeah, but I don't have any strong opinions. Somebody said if somebody like, hey, I want to do Vo, I'm not going to fight them on that at all.
(68:38) I think it's great. No fully follow. Thank you very much for the opportunity. And thank you for doing this format and finding new ways to engage with the community. I think it really helps. Some people are able to articulate in the community chat. Some are able to talk better.
(68:53) So, appreciate that and thanks for what you do to the community for sure. And I appreciate all you here. Thanks for thanks for sharing thoughts and having questions and stuff. I'm going to end it there. And for those of you that just joined recently or just dropped in, this is going to be on a studio.
(69:10) I'll try to get on there and like the next day so you can go back and listen to questions and that type of thing, and I'll have timestamps on it. So I appreciate you guys. See ya.