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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Single best idea is

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Speaker 1: you need to read a book. I've read all this

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Speaker 1: stuff in the zeitgeist recently, mostly from you know, young

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Speaker 1: twenty year old whipper snappers telling me that everything's great.

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Speaker 1: They haven't read a book in six years or six months.

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Speaker 1: Get it to read a book cover to cover. Today's

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Speaker 1: an act of God. Here's a book cover to cover

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Speaker 1: to read. William Priest is Iconic out of epic. There

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Speaker 1: are three major books on cash flow. One of them

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Speaker 1: is really really thick, really really accounting, really really necessary

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Speaker 1: for pros. Forget about it. There's another book that's sort

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Speaker 1: of midland size, four hundred and fifty five hundred pages,

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Speaker 1: sort of kind of like thick, exceptional, really smart. Okay,

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Speaker 1: we'll move on from that one. It's too long for

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Speaker 1: today's readers. Pre shareholder yield called free cash flow and

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Speaker 1: shareholder yield is short, sweet to the point you'll agree

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Speaker 1: you disagree, but it lets you explain how in two

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Speaker 1: thousand and seven, Apple was five dollars a share and

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Speaker 1: now Apple's two hundred and fifty dollars a share. Julian

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Speaker 1: Emmanuel worked for Bill Priest now Julian Emmanuel has a

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Speaker 1: privilege of working with Ed Haiman at Evercore ISI Julian

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Speaker 1: Emmanuel on the market forward.

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Speaker 2: So our view is it actually isn't a trade. It

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Speaker 2: is it is buy and hold secular theme. And what

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Speaker 2: the interesting thing is is that if you look at

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Speaker 2: the last year or two, we've had this bump in

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Speaker 2: productivity that really hasn't been attributable to AI. And it's

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Speaker 2: our view that when you think about twenty twenty five,

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Speaker 2: the upside surprise is likely to come by how much

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Speaker 2: and in what kind of creative ways Corporate America actually

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Speaker 2: deploys AI.

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Speaker 1: You even going from sixty one hundred to sixty eight hundred,

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Speaker 1: there are an SPX, but critically making clear that like

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Speaker 1: Brian Belsk, get demo capital markets, it's the structural bull market,

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Speaker 1: less so cyclical, volatile and all that. Just get on board,

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Speaker 1: find out what you need. And then we spoke to

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Speaker 1: Bill Priest of Epic, Julian Emmanuel's mentor on his book

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Speaker 1: Free cash Flow and Shareholder Yield. But of course Bill

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Speaker 1: Priest is not looking back twenty years to that classic.

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Speaker 1: Bill Priest is looking forward.

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Speaker 3: The secret sauce, though, is the substitute of bits for atoms.

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Speaker 3: So let's take information it comes to you in the

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Speaker 3: form of bits. Atoms would be the desk in front

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Speaker 3: of me, this microphone. We're made of atoms. If you

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Speaker 3: run a company and you can substitute technology in the

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Speaker 3: form of a bit for labor, which is a form

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Speaker 3: of an atom, and hold your revenues constant, your margins

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Speaker 3: go up. And if you can substitute a bit think

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Speaker 3: selling something over the internet as opposed to a physical store,

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Speaker 3: and hold your revenues constant, your sales for dollar assets

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Speaker 3: go up. So if you were to go back and

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Speaker 3: just look at return on equity, if I can substitute

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Speaker 3: technology for labor and physical assets and hold my revenue constant,

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Speaker 3: my Ris, he goes through the roof, and thoseies you need.

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Speaker 3: Every company should be focusing on that gap. And how

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Speaker 3: do I substitute technology for labor and physical assets?

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Speaker 1: Bill Priest buy the book free cash flow and shareholder yield?

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Speaker 1: What twenty takeaway three seventeen years ago and it is

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Speaker 1: still a right of passage. Thank you so much for

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Speaker 1: your attention to the show. The commute across America, this

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Speaker 1: build out, this mystery thing for me of YouTube, subscribe

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Speaker 1: to Bloomberg podcasts, building each and every day, and of

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Speaker 1: course on YouTube podcasts. This is single best idea