Speaker 1: Bloomberg Audio Studios, podcasts, radio news. Single best idea is
Speaker 1: you need to read a book. I've read all this
Speaker 1: stuff in the zeitgeist recently, mostly from you know, young
Speaker 1: twenty year old whipper snappers telling me that everything's great.
Speaker 1: They haven't read a book in six years or six months.
Speaker 1: Get it to read a book cover to cover. Today's
Speaker 1: an act of God. Here's a book cover to cover
Speaker 1: to read. William Priest is Iconic out of epic. There
Speaker 1: are three major books on cash flow. One of them
Speaker 1: is really really thick, really really accounting, really really necessary
Speaker 1: for pros. Forget about it. There's another book that's sort
Speaker 1: of midland size, four hundred and fifty five hundred pages,
Speaker 1: sort of kind of like thick, exceptional, really smart. Okay,
Speaker 1: we'll move on from that one. It's too long for
Speaker 1: today's readers. Pre shareholder yield called free cash flow and
Speaker 1: shareholder yield is short, sweet to the point you'll agree
Speaker 1: you disagree, but it lets you explain how in two
Speaker 1: thousand and seven, Apple was five dollars a share and
Speaker 1: now Apple's two hundred and fifty dollars a share. Julian
Speaker 1: Emmanuel worked for Bill Priest now Julian Emmanuel has a
Speaker 1: privilege of working with Ed Haiman at Evercore ISI Julian
Speaker 1: Emmanuel on the market forward.
Speaker 2: So our view is it actually isn't a trade. It
Speaker 2: is it is buy and hold secular theme. And what
Speaker 2: the interesting thing is is that if you look at
Speaker 2: the last year or two, we've had this bump in
Speaker 2: productivity that really hasn't been attributable to AI. And it's
Speaker 2: our view that when you think about twenty twenty five,
Speaker 2: the upside surprise is likely to come by how much
Speaker 2: and in what kind of creative ways Corporate America actually
Speaker 2: deploys AI.
Speaker 1: You even going from sixty one hundred to sixty eight hundred,
Speaker 1: there are an SPX, but critically making clear that like
Speaker 1: Brian Belsk, get demo capital markets, it's the structural bull market,
Speaker 1: less so cyclical, volatile and all that. Just get on board,
Speaker 1: find out what you need. And then we spoke to
Speaker 1: Bill Priest of Epic, Julian Emmanuel's mentor on his book
Speaker 1: Free cash Flow and Shareholder Yield. But of course Bill
Speaker 1: Priest is not looking back twenty years to that classic.
Speaker 1: Bill Priest is looking forward.
Speaker 3: The secret sauce, though, is the substitute of bits for atoms.
Speaker 3: So let's take information it comes to you in the
Speaker 3: form of bits. Atoms would be the desk in front
Speaker 3: of me, this microphone. We're made of atoms. If you
Speaker 3: run a company and you can substitute technology in the
Speaker 3: form of a bit for labor, which is a form
Speaker 3: of an atom, and hold your revenues constant, your margins
Speaker 3: go up. And if you can substitute a bit think
Speaker 3: selling something over the internet as opposed to a physical store,
Speaker 3: and hold your revenues constant, your sales for dollar assets
Speaker 3: go up. So if you were to go back and
Speaker 3: just look at return on equity, if I can substitute
Speaker 3: technology for labor and physical assets and hold my revenue constant,
Speaker 3: my Ris, he goes through the roof, and thoseies you need.
Speaker 3: Every company should be focusing on that gap. And how
Speaker 3: do I substitute technology for labor and physical assets?
Speaker 1: Bill Priest buy the book free cash flow and shareholder yield?
Speaker 1: What twenty takeaway three seventeen years ago and it is
Speaker 1: still a right of passage. Thank you so much for
Speaker 1: your attention to the show. The commute across America, this
Speaker 1: build out, this mystery thing for me of YouTube, subscribe
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