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Speaker 1: Welcome to Had the Money. I'm Joel and I am Matt,

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Speaker 1: and today we're talking about buffet ISM's lessons from the

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Speaker 1: Goat Investor, and by the way, goat as.

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Speaker 2: In the greatest of all Time. We're not talking about

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Speaker 2: how to make money by investing in livestock. It also

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Speaker 2: makes me think that's tomorrow's podcast, The Men Who Starah Goats.

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Speaker 2: Did you ever watch that one? Who? I don't think I.

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Speaker 1: Did, But that was Jeff Bridges, George Clooney.

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Speaker 2: It was George Clooney. I remember it was an all

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Speaker 2: star cast, like an odd one of those odd movies.

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Speaker 2: It kind of reminded me in my mind. It's very

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Speaker 2: similar to Oh brother, it's just coming like this odd

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Speaker 2: kind of quirky film. Was that Cohen Brothers?

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Speaker 1: That was Coen Brothers. Yeah, I do love the Coen Brothers.

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Speaker 2: They are a good duo. But we are talking about investing.

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Speaker 2: We're talking about what it is that you should be

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Speaker 2: investing in, maybe how long you should be holding your investments,

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Speaker 2: and generally speaking, just how it is that you should

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Speaker 2: approach investing your money. And so, if this is something

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Speaker 2: that you're looking to brush up on, if this is

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Speaker 2: something that you're wanting to learn more about Well, we

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Speaker 2: think that virtually everything you need to know about investing

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Speaker 2: your money you can learn from the man himself, Warren Buffett.

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Speaker 1: Yeah, he's been doing it for a long time, and

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Speaker 1: it's really tough to call someone that got if they've

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Speaker 1: been in like a league for a few years or

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Speaker 1: something like that. But Buffet's ninety two, right, he's he's

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Speaker 1: seen it, done it basically one hundred and I think.

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Speaker 2: He's for a century.

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Speaker 1: Yeah, we've been doing this and his like prowess has

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Speaker 1: been proved out over the decades. So we're going to

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Speaker 1: kind of run through some Buffet quotes and some Buffet

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Speaker 1: history to kind of talk about to extrapolate to ideas

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Speaker 1: for how we can be better investors and just kind

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Speaker 1: of better with our money totally.

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Speaker 2: Yeah, specifically, we've got a lot of Warren Buffett quotes

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Speaker 2: for you all today. But first, dude, really quick, we

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Speaker 2: need to make sure that we think a listener. So

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Speaker 2: this is Joshua Jones and he did us on JJ personally, Jjay.

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Speaker 2: He did. It's a massive favor. So sometime last fall

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Speaker 2: we mentioned how, oh, it'd be so great if we

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Speaker 2: had a spreadsheet of all the different beers that we've

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Speaker 2: had on the show, and obviously we enjoy craft beer

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Speaker 2: on the show, to demonstrate that we can be smart

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Speaker 2: with our money now, investing it for the future while

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Speaker 2: simultaneously enjoying some of it in the present. Yeah right.

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Speaker 2: And Joshua emailed us and he said, hey, guys, I'd

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Speaker 2: be more than happy to kind of work on that

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Speaker 2: when I have some free time, And of course we

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Speaker 2: said that would be amazing, that would be fantastic, And

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Speaker 2: so he worked on it though over Christmas, like over

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Speaker 2: the holiday break, and he sent it over our way

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Speaker 2: and it totally got lost in the email. I remember

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Speaker 2: seeing it and realizing that he had did an incredible workforce.

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Speaker 2: But we never gave him a shout out. We never

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Speaker 2: thanked him here on the show. So A, Joshua, we

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Speaker 2: wanted to publicly thank you, but b we want to

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Speaker 2: share that link with everyone out there who might be

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Speaker 2: interested in knowing virtually all the different beers that we've

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Speaker 2: had on the show over the past five years.

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Speaker 1: It's not necessarily ranked or anything star ratings by us,

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Speaker 1: but you can see them all in order by episode,

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Speaker 1: or you can.

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Speaker 2: Did include a style type. Yeah, I include the He's like,

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Speaker 2: how about I include the ABV as well as the

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Speaker 2: style of beer in addition to the brewery, what episode

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Speaker 2: it was on. It's a it's a sweet little database.

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Speaker 2: But I'm not sure how many of our listeners are

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Speaker 2: trying to like drink every beer we've ever had. But

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Speaker 2: that is now a lot more possible for you to

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Speaker 2: for you to do by looking at this and seeing

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Speaker 2: what your local bottle shop has. But we'll link to yeah, this,

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Speaker 2: we will this spreadsheet in the show notes on at

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Speaker 2: money dot com. It's a Google sheet. Yeah, so Google sheet, yeah,

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Speaker 2: which is Yeah, it's up there for everyone, and honestly

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Speaker 2: so because it kind of fell off a radar, it

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Speaker 2: means we're actually kind of behind. So I want to

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Speaker 2: do my best to get on there and start updating

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Speaker 2: it as well. But that being said, I want this

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Speaker 2: to kind of be a collaborative thing, and so if

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Speaker 2: you see room for improvement, or maybe you've seen that

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Speaker 2: there is an episode or two that hasn't been updated,

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Speaker 2: feel free to hop in there and update that information. Sure.

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Speaker 1: Speaking to yeah, let's mention the beer we're having on

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Speaker 1: todays show for episode six forty one. This is Blender

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Speaker 1: Black Ras and it's by New Park Brewing. And this

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Speaker 1: one comes to us from listener Matthew. Matthew, thanks, he said,

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Speaker 1: some great beers and I'm looking forward to drinking this Berlin

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Speaker 1: or Weiss today on The show Man.

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Speaker 2: Absolutely.

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Speaker 1: Yeah, But let's get to the topic at hand, buffet

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Speaker 1: ISM's we're talking about lessons from the Goat Investor and

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Speaker 1: and I mentioned earlier, Yeah, you don't call someone the

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Speaker 1: greatest in a sport if they've been playing for a

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Speaker 1: couple of years, right, you might say they've got potential

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Speaker 1: or they could be the next MJ. I mean that's

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Speaker 1: always that's always what happens in with like a new

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Speaker 1: basketball player or something like that.

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Speaker 2: Or Michael Jackson.

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Speaker 1: Yeah, uh huh no, Michael Jordan. There's Jordan, Baby, It's

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Speaker 1: like he's got the wingspan and the height. Then I

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Speaker 1: don't know Kenny Duncan the same way. We'll see. But

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Speaker 1: like those debates are just never ending about who's the greatest,

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Speaker 1: like Lebron or MJ or should we throw Steph Curry

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Speaker 1: in there? Kobe obviously just like a once in a

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Speaker 1: generation talent. But then you're talking about like, well what

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Speaker 1: about it for including centers, the dominant guys like Maladjawan

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Speaker 1: or whatever. I will stop there because this is not

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Speaker 1: a sports show, but these are the kind of things

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Speaker 1: that like sports talk shows can talk about incessantly. And

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Speaker 1: I used to listen to sports talk until I realized,

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Speaker 1: wait a second, this is so formulaic, and I can't

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Speaker 1: stand to listen to another second.

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Speaker 2: I haven't listened to.

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Speaker 1: Sports talk radio and forever now. But I mean, you

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Speaker 1: could do the same thing and have just prolonged conversations

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Speaker 1: about who the greatest is in any sphere, like you

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Speaker 1: talk about who's the greatest musician. Is it MJ Michael

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Speaker 1: Jackson or is it Beyonce or is it Bonnie Er.

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Speaker 1: I mean, it just like depends on I thought.

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Speaker 2: You're gonna say it Buon Jovie. Some might say I

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Speaker 2: prefer body there.

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Speaker 1: Yeah, well, like again, so much of that is in

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Speaker 1: the eye of the beholder. But we all, I think,

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Speaker 1: have this desire to see what sets the greatest people

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Speaker 1: in their given field, apart from the ones who are

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Speaker 1: just really good and the greatest investor conversation, I would

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Speaker 1: say it's not nearly as fraud as maybe some of

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Speaker 1: those other ones. It certainly feels like Warren Buffett is

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Speaker 1: the goat in our eyes, right, he is the greatest

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Speaker 1: of all time, and we're certainly not alone in that assumption.

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Speaker 1: And it's not just because of the returns he's been

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Speaker 1: able to gain and garner over the years. His longevity,

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Speaker 1: his consistency, and his humility, we would say, are admirable.

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Speaker 1: And so yeah, today we're going to talk about the goat. Well,

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Speaker 1: we can learn from him, and we're gonna talk about

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Speaker 1: where he falls short too, because we are Warren Buffett fans,

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Speaker 1: but he's also not perfect.

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Speaker 2: Yeah, we're not gonna worship him, but we are devoting

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Speaker 2: an entire episode to what we can learn from a

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Speaker 2: ninety two year old investor, and partly because he's the

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Speaker 2: antithesis of a flashy investor and so investing fads have

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Speaker 2: coming gone right, but Warren Buffett has remained consistently relevant

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Speaker 2: over the decades. Like, I don't think anyone has ever

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Speaker 2: used the word sexy to describe anything that Warren Buffett does,

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Speaker 2: and so much attention has been given to the sexy

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Speaker 2: investments right like the new and improved ways of investing

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Speaker 2: in recent years, we only need to look back to

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Speaker 2: the explosion of cryptocurrencies to meme stocks just a couple

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Speaker 2: of years ago. And the reason for this, the reason

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Speaker 2: those investments got all the attention, is because I think

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Speaker 2: it's human nature to want to try and find shortcuts.

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Speaker 2: Folks want to hit the easy button. And I get

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Speaker 2: it right, a lot of folks had a sense of

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Speaker 2: fomo as speculative investments just shot through the roof. But

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Speaker 2: Warren Buffett, he did not hit the easy button. And

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Speaker 2: we don't want our listeners out there to think that

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Speaker 2: that is the solution as well. And by the way,

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Speaker 2: if you're wondering what Buffet's thoughts were on crypto, here's

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Speaker 2: our first quote of the day. He said that they

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Speaker 2: were basically rat poison squared.

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Speaker 1: Wait was that him or Charlie Munger? I think it

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Speaker 1: was him.

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Speaker 2: Okay, I thought it was Munger. I thought Munger called

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Speaker 2: it like was some sort of fox Hunt Oka something

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Speaker 2: like that stands up. Neither of them like it. Neither

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Speaker 2: of them and Munger.

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Speaker 1: By the way, if you don't know, is Warren Buffett's

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Speaker 1: like a longtime best friend and fellow co conspirator, and

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Speaker 1: when it comes to investing, so the partners their best

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Speaker 1: and partners.

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Speaker 2: And and Munger is a little bit older.

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Speaker 1: He's ninety nine.

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Speaker 2: Exactly, but regardless, wanted to mention that because crypto obviously

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Speaker 2: that's something that most most folks should should probably stay

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Speaker 2: away from.

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Speaker 1: Yeah, so, yeah, he avoids the speculative crazies, has been

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Speaker 1: able to kind of a with them consistently over time,

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Speaker 1: and for the most part, that's kind of what you

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Speaker 1: and I suggested too. We didn't want HTM listeners going

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Speaker 1: all in on the latest cryptocurrency or even on the

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Speaker 1: most tried and true cryptocurrencies, which are still relative newcomers.

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Speaker 1: And the reason I say that is because we feel

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Speaker 1: that there's like this behavioral psychological component to investing too,

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Speaker 1: by the way, and it's incredibly difficult to sit on

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Speaker 1: the sidelines while you're seeing folks on social media or

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Speaker 1: even just friends in real life who are making bank

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Speaker 1: while all of your money was invested in the good old,

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Speaker 1: boring index funds. It can be tough to sit on

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Speaker 1: your hands and not do anything and just kind of

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Speaker 1: stay the course. And for this reason, we believe that

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Speaker 1: it can make sense for some folks who desire to

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Speaker 1: invest in speculative assets actually to have some sort of

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Speaker 1: pressure release valve, and we've talked about this over the year.

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Speaker 1: What that means is that we want you investing no

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Speaker 1: more than five percent of your overall portfolio in individual

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Speaker 1: stocks that you're excited about, are even in different cryptocurrencies.

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Speaker 1: So I think you can have a little bit of

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Speaker 1: exposure if you're curious and if you kind of just

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Speaker 1: want to scratch that itch. Warren Buffett, he would probably

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Speaker 1: shake his head if he knew that we suggest that.

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Speaker 1: He would say no, no.

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Speaker 2: No, he would be disappointed.

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Speaker 1: He would say that all of your money should be

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Speaker 1: invested in tried and true assets that are producing something right.

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Speaker 1: But yeah, we believe it is smart to make some

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Speaker 1: small allowances. If that means if that allows the vast

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Speaker 1: majority of your investments, yes, to be sitting in the

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Speaker 1: tried and true index fund, if that allows you to

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Speaker 1: stay the course kind of with the majority of the

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Speaker 1: money that you're putting into investments exactly.

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Speaker 2: Yeah, there's just more to successful investing than just doing

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Speaker 2: the right thing. We've got feelings, we've got emotions that

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Speaker 2: unfortunately can get in the way of the most proven

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Speaker 2: ways of investing our money. But another reason that we're

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Speaker 2: discussing Warren Buffett is because the annual Berkshire Hathaway meeting

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Speaker 2: that just happened just over a week ago, so it

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Speaker 2: felt like a good time to cover some of the

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Speaker 2: wisdom that he doled out in his annual letter and

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Speaker 2: to discuss the man, the myth, and the legend's brilliance

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Speaker 2: here for a little bit, and what it is that

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Speaker 2: we can learn from him. And by the way, I

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Speaker 2: say learn and not emulate for a very specific reason here, right,

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Speaker 2: just because Buffett is the greatest investor of all time,

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Speaker 2: that doesn't mean that we should necessarily try and take

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Speaker 2: his path. Specifically makes me think back when Tim Ferriss

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Speaker 2: he stepped up to the mic at one of the

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Speaker 2: conferences and he asked Warren Buffett about how it is

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Speaker 2: that an amateur investor should invest a million dollars, And

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Speaker 2: this is how Buffett responded. He'd say, I probably have

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Speaker 2: it all in a very low cost index fund. That's

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Speaker 2: about warm buffet voice. By the way, I'd recognize the

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Speaker 2: fact that I'm an amateur investor, forget it and go

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Speaker 2: back to work. And I think that was from back

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Speaker 2: in two thousand and eight. Tim Ferris asked him that question.

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Speaker 2: But we obviously think that the same advice holds true today. Yeah,

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Speaker 2: and that kind of continues to be Buffett's advice for

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Speaker 2: investors who have full time day jobs. Right.

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Speaker 1: He doesn't suggest that people try to replicate what he does,

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Speaker 1: but his suggestion makes sense for people who don't have

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Speaker 1: the time to scour market deal and don't have the

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Speaker 1: capital to really like invest in the way that Buffett does.

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Speaker 1: And this is the same reason math that you know

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Speaker 1: Warre Buffett has said that when he dies, the fund

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Speaker 1: for his widow will be ninety percent invested in an

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Speaker 1: S and P five hundred next fund, which is pretty

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Speaker 1: much the path that we want most of our listeners

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Speaker 1: to take as well. Right, he knows that even though

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Speaker 1: he's been able to beat the overall market, there are

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Speaker 1: very few individuals who would be able to do the

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Speaker 1: same thing. And for one, Buffett was incredibly hard working.

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Speaker 1: Right as a thirteen year old, he was earning more

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Speaker 1: than many of his teachers at the time, which says

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Speaker 1: a lot about his industriousness. He was making around one

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Speaker 1: hundred and seventy five dollars a month, which adjusted for inflation,

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Speaker 1: was the equivalent of a forty thousand dollars annual salary today?

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Speaker 2: How many insane?

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Speaker 1: Yeah, how many thirteen year olds do you know that

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Speaker 1: are that ambitious and hardworking that are making that kind

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Speaker 1: of income? Not many, right, But Buffett he also had

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Speaker 1: a natural gifting as well. He had the uncanny ability

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Speaker 1: to memorize long lists of statistics from baseball cards, and

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Speaker 1: he and his friend would sit down and they would

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Speaker 1: write the numbers from license plates of passing just for fun.

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Speaker 1: There wasn't as much to do back in the pre

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Speaker 1: Nintendo days, right, exactly, No Nintendo switches, none of that stuff.

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Speaker 1: So yeah, he was drawn towards numbers in a way

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Speaker 1: that very few individuals can emulate. So I think there

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Speaker 1: are lessons that we can learn, but trying to emulate

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Speaker 1: and do what he's done is like something different altogether,

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Speaker 1: And that's not what we're suggesting here.

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Speaker 2: And in so much of life, circumstances have to do

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Speaker 2: with luck as well. He readily admitted that had he

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Speaker 2: been born in a different country, in a different era

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Speaker 2: that valued different things like physical strength, for instance, that

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Speaker 2: he likely wouldn't have fared nearly as well as he

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Speaker 2: did being born here in the US. When he was born,

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Speaker 2: Warren Buffett. He called this winning the Ovarian lottery, that

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Speaker 2: because he happened to possess a unique set of skills

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Speaker 2: that lent themselves to the creation and the acquisition of

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Speaker 2: businesses over the past century. Here in the US, he's

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Speaker 2: been financially rewarded, and he's been rewarded quite handsomely, I

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Speaker 2: might add, he's something like the fifth richest person in

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Speaker 2: the world, with a net worth of around one hundred

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Speaker 2: and six billion dollars.

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Speaker 1: Can youve or take a bill depending on what's going

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Speaker 1: on in the market that day, I guess, right exactly.

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Speaker 2: But you're right.

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Speaker 1: I think so much of our success hard work plays

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Speaker 1: a massive role. But it's like that the final question

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Speaker 1: right in how I built this? The guy roz asks

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Speaker 1: every business person. He says, you know, do you attribute

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Speaker 1: more to luck or to scale? And I think, like

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Speaker 1: you can't have one without the other. You need both

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Speaker 1: in tandem to achieve greatness or to even do wonderful things.

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Speaker 1: And Warren acknowledges that he realizes that the hard work

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Speaker 1: certainly plays a role, but so does timing too. Makes

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Speaker 1: me think of Bill Gates and how he wouldn't probably

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Speaker 1: have started Microsoft if his high school didn't have access

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Speaker 1: to a supercomputer one of like four high schools in

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Speaker 1: the country or something like that at the time. So

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Speaker 1: it's part of it is luck sometimes And another Warren

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Speaker 1: Buffett quote that fits in here, he said America would

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Speaker 1: have done fine without Berkshire, which is his company, Berkshire Hathaway,

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Speaker 1: but the reverse is not true. And so he just

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Speaker 1: admits that he's greatly benefited from the time and place

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Speaker 1: he was born.

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Speaker 2: And if you're.

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Speaker 1: Listening to this podcast, there's a really good chance that

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Speaker 1: you've won the Obarian lottery too, right that because of

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Speaker 1: where you live, you have more opportunity than a massive

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Speaker 1: percentage of the people across the globe. But even still,

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Speaker 1: there's just this microscopic chance that you've got the skills

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Speaker 1: necessary to make investments like Warren Buffett. So we probably

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Speaker 1: all need the humility to admit that there's going to

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Speaker 1: be a gap there and none of us are going

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Speaker 1: to be able to achieve kind of what he's been

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Speaker 1: able to achieve the way he's done it. But here's

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Speaker 1: the good news. You don't have to be as smart

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Speaker 1: as him, and you don't have to be as hardworking.

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Speaker 1: You just need to follow some of his advice, some

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Speaker 1: of the principles that he teaches, which is something that

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Speaker 1: virtually anyone can do. And we're going to spend the

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Speaker 1: rest of the episode discussing just that. We'll get to

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Speaker 1: some more buffetisms and what we can learn from them

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Speaker 1: right after this.

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Speaker 2: All right, man, we are back from the break talking

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Speaker 2: about how we can invest our money, how we can

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Speaker 2: grow our net worth, maybe not to like one hundred

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Speaker 2: billion dollars status by the time we're ninety two, but

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Speaker 2: you know, maybe a little having a little more of

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Speaker 2: the bick in twenty or thirty years, that'd be nice.

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Speaker 2: And so just before the break, we touched on some

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Speaker 2: of the key differences between Warren Buffett and the other

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Speaker 2: ninety nine point ninety nine percent of all investors out there.

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Speaker 2: But one of the key differences between Buffett and how

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Speaker 2: it is that others invest is his overall approach to investing.

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Speaker 2: He says that he's a business picker, not a stock picker.

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Speaker 2: So what he means by that is he's not looking

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Speaker 2: to see what's happening with the specific stock price of

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Speaker 2: a specific company over the last thirty days or honestly,

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Speaker 2: even over the last couple of years. What he is

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Speaker 2: doing is he's assessing whether or not it makes sense

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Speaker 2: to own a piece of that business based on the

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Speaker 2: fundamentals and how successful that business is likely going to

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Speaker 2: be moving forward. Just giving a number of proprietary factors

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Speaker 2: that I'm sure that he keeps stored away in his mind.

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Speaker 2: But bottom line, like, I just don't see Warren Buffet

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Speaker 2: making like a split second decision to buy something, to

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Speaker 2: buy a stock based on a Cramer recommendation on CNBC. Right,

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Speaker 2: Like Buffett is all about value investing. He followed in

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Speaker 2: the footsteps of his mentor Benjamin Graham. But it is

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Speaker 2: about finding value. It's the ability to.

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Speaker 1: Know adeal when you see one. Yeah, essentially, except for

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Speaker 1: a lot of work on the investment front. Right, So

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Speaker 1: it's so much easier to spot seventy percent off on

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Speaker 1: like one of our favorite items of clothing. It's more

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Speaker 1: difficult to assess a company and say, wait a second,

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Speaker 1: everybody else doesn't see the value here. There's a gem

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Speaker 1: in the making. This company has what they like they

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Speaker 1: call like a moat.

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Speaker 2: Right.

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Speaker 1: If a company has a mote, it means that it's

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Speaker 1: going to be really hard to compete with that company

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Speaker 1: because they have like special ability to make or create something,

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Speaker 1: and so he's looking for advantages. He's looking for value

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Speaker 1: when it comes to the investments that he's making, not

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Speaker 1: just the stuff that he's buying. And I think it

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Speaker 1: just goes to show how hard it can be, though

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Speaker 1: to find those great companies to invest in, which is

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Speaker 1: why Matt, you and I we basically opt to invest

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Speaker 1: in basically all of them. Yeah, it's just too hard

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Speaker 1: to pull off the buying great companies approach when this

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Speaker 1: isn't the field you've dedicated your life to, which just

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Speaker 1: goes back to that Tim Ferriss question and Buffett's answer

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Speaker 1: that we just talked about, and in one of the

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Speaker 1: best Warren Buffett coats ever, by the way, is you

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Speaker 1: never know who's swimming naked until the tide goes out.

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Speaker 1: And so this goes to his thoughts on kind of

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Speaker 1: speculation and kind of how regular amateur investors should be

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Speaker 1: allocating their investment dollars. And it might look like speculators

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Speaker 1: are getting rich for a minute, right, and that us

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Speaker 1: boring investors are missing out on all the fun. We're

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Speaker 1: sitting on the sidelines while folks out there are making

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Speaker 1: just like buukoos of dollars. But that is until market

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Speaker 1: conditions change and folks who are making errant bets with

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Speaker 1: no real plan, they didn't have an investment plan. They

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Speaker 1: were just kind of like flying by the seat of

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Speaker 1: their pants, Yosemite samming it right, like Peo peo peugh,

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Speaker 1: like I'm gonna I'm gonna try this and give this

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Speaker 1: a shot. Well, it can be kind of tough to

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Speaker 1: watch other people making lots of money, but the thing

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Speaker 1: is you when the tide changes and when the market

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Speaker 1: conditions change.

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Speaker 2: Course, Well, I.

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Speaker 1: Feel like we've all just experienced a crash course on

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Speaker 1: the impact of speculation that it can have on the

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Speaker 1: market and on individual investors. I feel like even some

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Speaker 1: of our listeners have been forthright, Matt. They've reached out

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Speaker 1: to us and they've told us like, hey, I didn't

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Speaker 1: put it all at risk, but I'd lost more than

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Speaker 1: I would have liked to in crypto. And so I

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Speaker 1: think Warren's take on speculation is something we all kind

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Speaker 1: of need to probably continually relearn, but especially in an

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Speaker 1: era like today's.

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Speaker 2: Yeah, and honestly, just even aside in addition to speculation,

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Speaker 2: just investing with single companies because you. You might have

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Speaker 2: a terrible quarter or a terrible year, a terrible couple

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Speaker 2: of years, or there's accounting was cooking the books, and

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Speaker 2: all of a sudden you've got a company like Enron

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Speaker 2: that was a legitimate company. It wasn't necessarily speculation. They

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Speaker 2: were producing an actual product, right, Because that's Warren Buffett's

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Speaker 2: criticism of Crypto is that there's no there's nothing actually

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Speaker 2: being created. But even still it can be difficult to

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Speaker 2: know which of these companies to pick. So, like you said,

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Speaker 2: he recommends is that, like, yeah, I'm readily admitting that

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Speaker 2: this is all very difficult to do. Instead, basically, bet

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Speaker 2: on the American economy.

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Speaker 1: It's a sure bet Adidas, Right. You never know when

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Speaker 1: those celebrity partnerships are going to low up and then

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Speaker 1: the stock's going to tank. Those are the things you

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Speaker 1: can't predict.

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Speaker 2: But let's talk about another way that you should be

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Speaker 2: approaching your investments, and Warren Buffett is all about extending

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Speaker 2: the timeframe of his investments. Here's another quote for you,

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Speaker 2: someone sitting in the shade today because someone planted a

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Speaker 2: tree a long time ago. What he's saying here is

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Speaker 2: that by investing now, by taking the long term approach.

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Speaker 2: You are planting that tree for quote unquote future you.

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Speaker 2: And honestly, I think the reason that some many folks

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Speaker 2: avoid investing is not because they don't have maybe a

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Speaker 2: few dollars, you know that, Like, it's not that they

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Speaker 2: don't have a few disposable dollars that they could opt

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Speaker 2: to sock away into their four to one k or

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Speaker 2: into their roth Ira. Is that they have a hard

436
00:19:52,560 --> 00:19:57,040
Speaker 2: time just conceptualizing that proverbial seed turning into a big

437
00:19:57,040 --> 00:19:59,800
Speaker 2: old shade tree. And so the more that we can

438
00:20:00,200 --> 00:20:03,560
Speaker 2: just connect our current actions to the future possibilities, the

439
00:20:03,560 --> 00:20:06,720
Speaker 2: future reality of what we're going to turn into and

440
00:20:06,760 --> 00:20:09,200
Speaker 2: what we are going to need our portfolios to turn

441
00:20:09,240 --> 00:20:11,680
Speaker 2: into in order to be able to support us, I

442
00:20:11,720 --> 00:20:13,640
Speaker 2: think the more likely that we're going to be able

443
00:20:13,640 --> 00:20:17,240
Speaker 2: to make the smarter, but often more difficult moves of

444
00:20:17,359 --> 00:20:23,119
Speaker 2: prioritizing that future shade over the current discomforts of taking

445
00:20:23,160 --> 00:20:25,600
Speaker 2: the steps necessary to make sure that that shade happens.

446
00:20:25,640 --> 00:20:28,240
Speaker 1: Yeah, I think you're right, Matt. More people could be

447
00:20:28,280 --> 00:20:30,640
Speaker 1: investing at least something. It doesn't have to be a ton, right,

448
00:20:30,680 --> 00:20:33,160
Speaker 1: and we'll get to that too, But it does take

449
00:20:33,400 --> 00:20:36,840
Speaker 1: starting and it does take regularity to be a great investor,

450
00:20:37,200 --> 00:20:40,200
Speaker 1: and the war and Buffett approach takes that longer timeline, right.

451
00:20:40,280 --> 00:20:43,520
Speaker 1: It takes the understanding that trees don't grow overnight, that

452
00:20:43,560 --> 00:20:46,440
Speaker 1: it's going to take many decades until the little bit

453
00:20:46,520 --> 00:20:49,480
Speaker 1: sapling you plan it turns into something meaningful, a place

454
00:20:49,480 --> 00:20:52,919
Speaker 1: that will actually provide any semblance of shade. But it

455
00:20:52,960 --> 00:20:56,080
Speaker 1: takes that in addition to patients and something else. That

456
00:20:56,200 --> 00:20:59,600
Speaker 1: something that Warren Buffett's mentor, Benjamin Graham Matt said that

457
00:20:59,800 --> 00:21:02,399
Speaker 1: in short run, the stock market is a voting machine,

458
00:21:02,400 --> 00:21:04,880
Speaker 1: but in the long run it is a weighing machine.

459
00:21:05,119 --> 00:21:08,399
Speaker 1: And Warren is even simpler way of describing that phenomenon

460
00:21:08,480 --> 00:21:10,639
Speaker 1: is when he says that the stock market is a

461
00:21:10,680 --> 00:21:13,600
Speaker 1: device to transfer money from the impatient to the patient.

462
00:21:14,000 --> 00:21:16,840
Speaker 1: And he just he lives out this reality. You know,

463
00:21:16,840 --> 00:21:19,320
Speaker 1: we talked just a few weeks ago on the Friday flight.

464
00:21:19,359 --> 00:21:22,280
Speaker 1: We talked about how the average investor holds a stock

465
00:21:22,320 --> 00:21:25,200
Speaker 1: position for like ten months these days. He used to

466
00:21:25,240 --> 00:21:27,960
Speaker 1: be five years back in the nineteen seventies. But Buffett's

467
00:21:28,200 --> 00:21:32,040
Speaker 1: holding period is on average seventeen years, which is a

468
00:21:32,080 --> 00:21:32,680
Speaker 1: major gap.

469
00:21:32,960 --> 00:21:33,919
Speaker 2: Years. Yeah, not.

470
00:21:35,400 --> 00:21:38,280
Speaker 1: Long, So he's holding whatever, whatever he buys, whatever his

471
00:21:38,320 --> 00:21:41,840
Speaker 1: investment is, he's holding it twenty times longer than the

472
00:21:41,880 --> 00:21:44,280
Speaker 1: average individual. And there's just a that's a big gap.

473
00:21:44,320 --> 00:21:46,560
Speaker 1: And if we're going to learn one thing from the

474
00:21:46,600 --> 00:21:50,600
Speaker 1: goat investor, it's to worry less about immediate results and

475
00:21:50,640 --> 00:21:53,399
Speaker 1: to have a longer timeline when it comes to evaluating

476
00:21:53,440 --> 00:21:53,960
Speaker 1: our success.

477
00:21:54,040 --> 00:21:55,960
Speaker 2: Yeah. Yeah, And you know, the great thing about going

478
00:21:56,000 --> 00:21:58,199
Speaker 2: that route and being more patient when it comes to

479
00:21:58,240 --> 00:22:01,520
Speaker 2: the results means that you just worry less about the

480
00:22:01,880 --> 00:22:05,280
Speaker 2: short term market moves. You can worry less about that volatility.

481
00:22:05,280 --> 00:22:08,200
Speaker 2: You can tune out the advice giving stock pickers. You

482
00:22:08,200 --> 00:22:10,400
Speaker 2: can even avoid looking at your four one case statement

483
00:22:10,440 --> 00:22:14,080
Speaker 2: most of the time. You can just remain blissfully ignorant,

484
00:22:14,280 --> 00:22:17,320
Speaker 2: knowing that doing the right thing by buying and holding

485
00:22:17,600 --> 00:22:19,280
Speaker 2: for the long term, that that's going to pan out

486
00:22:19,440 --> 00:22:21,840
Speaker 2: decades down the road. You don't need to sweat the

487
00:22:21,840 --> 00:22:24,240
Speaker 2: small stuff too. It makes me think of like our kids.

488
00:22:24,280 --> 00:22:27,359
Speaker 2: I think oftentimes we can be so concerned about making

489
00:22:27,359 --> 00:22:30,880
Speaker 2: sure that they're eating right, like did they take their vitamin? Oh,

490
00:22:31,000 --> 00:22:33,240
Speaker 2: they got to cut, making sure that they're healing up fine.

491
00:22:33,359 --> 00:22:37,919
Speaker 2: We're concerned about our kids' development essentially right, and it

492
00:22:37,960 --> 00:22:41,119
Speaker 2: can be so difficult to see the progress that they

493
00:22:41,119 --> 00:22:43,199
Speaker 2: are making, that they actually are growing up until you

494
00:22:43,200 --> 00:22:45,240
Speaker 2: see maybe a friend that you know that you haven't

495
00:22:45,240 --> 00:22:47,120
Speaker 2: seen in a long time. They're like, oh my gosh,

496
00:22:47,400 --> 00:22:49,359
Speaker 2: and they're not doing it just to be you know,

497
00:22:49,440 --> 00:22:51,080
Speaker 2: do the oh my gosh, your kids so a big thing.

498
00:22:51,160 --> 00:22:54,800
Speaker 2: Like they truly are amazed at how quickly our kids

499
00:22:55,040 --> 00:22:56,600
Speaker 2: are just sprouting up.

500
00:22:56,600 --> 00:22:59,199
Speaker 1: Or even when we're fed those like Google memories and

501
00:22:59,240 --> 00:23:02,480
Speaker 1: the from like three years ago, and it's impossible not

502
00:23:02,560 --> 00:23:06,240
Speaker 1: to think that happened quick Yeah, yeah, you're right, And

503
00:23:06,560 --> 00:23:08,240
Speaker 1: so I think on a day to day basis, it's

504
00:23:08,240 --> 00:23:10,480
Speaker 1: hard to see the progress. But when we step out

505
00:23:10,480 --> 00:23:12,720
Speaker 1: and we take a longer timeline, it's amazing to see

506
00:23:12,720 --> 00:23:15,120
Speaker 1: the kind of progress that happens just from a human

507
00:23:15,160 --> 00:23:18,640
Speaker 1: development standpoint with our kids, but also with like wealth building.

508
00:23:19,080 --> 00:23:21,040
Speaker 1: When you look just month to month or week to week,

509
00:23:21,080 --> 00:23:23,040
Speaker 1: and if we're checking our statements all the time, it

510
00:23:23,040 --> 00:23:24,919
Speaker 1: can feel a little disappointing because it doesn't feel like

511
00:23:24,920 --> 00:23:26,200
Speaker 1: the progress is happening quickly.

512
00:23:26,240 --> 00:23:27,960
Speaker 2: I think it can be maddening. Yeah, Like what is

513
00:23:28,000 --> 00:23:30,960
Speaker 2: it a watchpot never boils? Yeah, like you're just like

514
00:23:31,040 --> 00:23:34,000
Speaker 2: waiting for It's just like where the compounder turns. I've

515
00:23:34,000 --> 00:23:36,320
Speaker 2: heard about this this wonder eighth wonder of the world

516
00:23:36,400 --> 00:23:38,760
Speaker 2: or whatever, but there's just some frustration because it's not

517
00:23:38,840 --> 00:23:41,040
Speaker 2: happening as quickly as you might, you know, as you

518
00:23:41,080 --> 00:23:41,680
Speaker 2: might hope it would.

519
00:23:41,760 --> 00:23:45,159
Speaker 1: Yeah, okay, So the lady who wrote his biography, her

520
00:23:45,240 --> 00:23:48,560
Speaker 1: name was Alice Schroeder, and she had this quote in there,

521
00:23:48,560 --> 00:23:51,320
Speaker 1: and it said life is like a snowball. All you

522
00:23:51,359 --> 00:23:53,840
Speaker 1: need is wet snow and a really long hill, And

523
00:23:53,880 --> 00:23:56,919
Speaker 1: that just defines I think Buffett's approach to investing and

524
00:23:57,160 --> 00:24:00,280
Speaker 1: approach to kind of the reality of compounding, And for

525
00:24:00,640 --> 00:24:02,760
Speaker 1: some reason made me think of like Forrest Gump, life

526
00:24:02,880 --> 00:24:04,679
Speaker 1: like a box of Chocolate's life is like a snowball. Well,

527
00:24:04,720 --> 00:24:08,159
Speaker 1: life is like a snowball, but like compounding is just

528
00:24:08,200 --> 00:24:10,919
Speaker 1: wonder if Forrest Gump would be allowed to be released today. Well,

529
00:24:10,960 --> 00:24:11,600
Speaker 1: that's a good question.

530
00:24:13,240 --> 00:24:14,560
Speaker 2: Makes want to go back and watch it. Yeah, it

531
00:24:14,600 --> 00:24:15,800
Speaker 2: got been so long, Yeah, it's see.

532
00:24:16,080 --> 00:24:18,560
Speaker 1: Well, I mean it just it helps you realize just

533
00:24:18,600 --> 00:24:22,240
Speaker 1: that the compounding really comes about by investing regularly, but

534
00:24:22,240 --> 00:24:26,080
Speaker 1: then also just by your ability to be incredibly patient.

535
00:24:26,480 --> 00:24:28,840
Speaker 1: And it reminds me of a story I saw about

536
00:24:28,880 --> 00:24:30,680
Speaker 1: a mother Matt like, but she wasn't just a mother,

537
00:24:30,840 --> 00:24:34,200
Speaker 1: she was a grandmother and then a great grandmother as well.

538
00:24:34,240 --> 00:24:36,639
Speaker 1: As it turns out, not only did she have eleven

539
00:24:36,680 --> 00:24:39,639
Speaker 1: kids of her own, but those kids had fifty six grandkids.

540
00:24:39,560 --> 00:24:42,000
Speaker 2: Which first of all, let's just start with eleven kids, Like,

541
00:24:42,080 --> 00:24:44,600
Speaker 2: that's just that's kind of mind numbing, that's high.

542
00:24:44,440 --> 00:24:46,719
Speaker 1: Flute and procreation right there, right, Yeah, that's a lot

543
00:24:46,720 --> 00:24:49,359
Speaker 1: of kids to have. But and then like then fifty

544
00:24:49,400 --> 00:24:52,080
Speaker 1: six grandkids. But then those kids had one hundred great

545
00:24:52,119 --> 00:24:54,879
Speaker 1: aunt grandkids, which equals his family of one hundred and

546
00:24:54,920 --> 00:24:56,639
Speaker 1: sixty seven, not even counting spouses.

547
00:24:56,920 --> 00:24:57,960
Speaker 2: And that's crazy.

548
00:24:58,240 --> 00:25:01,879
Speaker 1: I think it's physically impossible for an individual mother to

549
00:25:01,920 --> 00:25:03,879
Speaker 1: give birth to that many children on her own. But

550
00:25:03,920 --> 00:25:05,440
Speaker 1: with a little time and patience, you're talking about a

551
00:25:05,480 --> 00:25:07,840
Speaker 1: lot of people. And so it's just kind of a

552
00:25:07,840 --> 00:25:11,040
Speaker 1: goofy example. But similarly, like when a snowball starts rolling

553
00:25:11,040 --> 00:25:13,320
Speaker 1: down a hill, that snow attracts more snow, you've got

554
00:25:13,359 --> 00:25:17,040
Speaker 1: this like really large snowball over time, and the same

555
00:25:17,040 --> 00:25:20,280
Speaker 1: thing happens with our money. It feels small, It feels incremental,

556
00:25:20,600 --> 00:25:23,800
Speaker 1: especially in those first year, the first decade, and we

557
00:25:23,880 --> 00:25:26,840
Speaker 1: talk to any investor and it's that first hundred thousand

558
00:25:26,960 --> 00:25:29,000
Speaker 1: or whatever that's the toughest to get to. And then

559
00:25:29,040 --> 00:25:31,200
Speaker 1: it's amazing, like a few years later that money working

560
00:25:31,240 --> 00:25:35,000
Speaker 1: on your behalf started gaining speed. Yeah, this speed happens.

561
00:25:35,080 --> 00:25:38,639
Speaker 1: The rapidity of your asset accumulation starts to happen so

562
00:25:38,720 --> 00:25:39,359
Speaker 1: much more quickly.

563
00:25:39,440 --> 00:25:41,359
Speaker 2: Yeah, And it's sort of like going back to the mother,

564
00:25:41,400 --> 00:25:43,280
Speaker 2: it's not the number of kids that well, in her case,

565
00:25:43,320 --> 00:25:44,679
Speaker 2: she did have a lot of kids. I guess like

566
00:25:44,800 --> 00:25:46,879
Speaker 2: eleven kids, but she definitely didn't have one hundred and

567
00:25:46,920 --> 00:25:50,240
Speaker 2: whatever sixty seven. It's not that she had all those kids.

568
00:25:50,240 --> 00:25:53,199
Speaker 2: It's that her kids and then those kids that they

569
00:25:53,280 --> 00:25:55,320
Speaker 2: all had kids, right, and so it's not necessarily the

570
00:25:55,720 --> 00:25:58,600
Speaker 2: very fertile family that we're talking about. Yeah, so we're

571
00:25:58,600 --> 00:26:01,679
Speaker 2: talking about gains upon your gains. Right, it's not the

572
00:26:01,680 --> 00:26:04,199
Speaker 2: fact that you are going to have the ability to

573
00:26:04,240 --> 00:26:07,640
Speaker 2: earn millions of dollars, but the money that you do

574
00:26:07,680 --> 00:26:09,720
Speaker 2: earn and the money that you do invest, well, it's

575
00:26:09,760 --> 00:26:11,400
Speaker 2: going to work for you. It's you're going to see

576
00:26:11,400 --> 00:26:13,240
Speaker 2: a return on that money. And then that money is

577
00:26:13,280 --> 00:26:15,560
Speaker 2: gonna combine with the money that you did set aside,

578
00:26:15,600 --> 00:26:19,080
Speaker 2: and it's all gonna build upon itself. And compounding is

579
00:26:19,119 --> 00:26:20,240
Speaker 2: just one of those things that I think we have

580
00:26:20,320 --> 00:26:23,600
Speaker 2: a hard time grasping. We understand incremental growth, but when

581
00:26:23,640 --> 00:26:26,960
Speaker 2: you start layering and adding things upon other things, that's

582
00:26:26,960 --> 00:26:29,680
Speaker 2: when it kind of short circuits our brains to a

583
00:26:29,720 --> 00:26:31,159
Speaker 2: certain extent and things go off the rail.

584
00:26:31,240 --> 00:26:33,120
Speaker 1: It makes me thinking about like my first my first

585
00:26:33,160 --> 00:26:35,120
Speaker 1: real job. I'm pretty sure my salary was like twenty

586
00:26:35,160 --> 00:26:36,160
Speaker 1: four thousand dollars a year.

587
00:26:36,160 --> 00:26:36,560
Speaker 2: Like it was.

588
00:26:36,600 --> 00:26:40,399
Speaker 1: It was not great, and but I had I was

589
00:26:40,400 --> 00:26:43,200
Speaker 1: putting in six percent of my paycheck and my employer

590
00:26:43,240 --> 00:26:45,520
Speaker 1: match three percent. And when you think I'm just curious

591
00:26:45,560 --> 00:26:47,640
Speaker 1: to know those dollars, I guess I could go back

592
00:26:47,640 --> 00:26:50,440
Speaker 1: and do the math. But those dollars they felt very limited.

593
00:26:51,000 --> 00:26:52,959
Speaker 1: But at the time, yeah, like it's like I'm not

594
00:26:52,960 --> 00:26:55,119
Speaker 1: doing a whole lot, but what it was able to

595
00:26:55,200 --> 00:26:59,680
Speaker 1: multiply into over the years, just because by by dint

596
00:26:59,760 --> 00:27:03,600
Speaker 1: of I started by like where the market was basically

597
00:27:03,600 --> 00:27:07,800
Speaker 1: eighteen years ago, Like those dollars have probably triple or

598
00:27:07,840 --> 00:27:11,479
Speaker 1: quadrupled by this point in time, which is I mean,

599
00:27:11,480 --> 00:27:14,600
Speaker 1: pretty incredible to think about even starting small, Like, I

600
00:27:14,640 --> 00:27:17,480
Speaker 1: think that that gives me hope, right, and that should

601
00:27:17,520 --> 00:27:19,680
Speaker 1: give all investors hope that even just when you begin

602
00:27:20,040 --> 00:27:22,000
Speaker 1: with very little, it can it can amount to a

603
00:27:22,000 --> 00:27:24,320
Speaker 1: whole lot. Totally For early investors, I think it can

604
00:27:24,359 --> 00:27:25,960
Speaker 1: be really difficult. But even kind of where we are,

605
00:27:26,000 --> 00:27:28,080
Speaker 1: we're kind of like more in the middle of our careers,

606
00:27:28,119 --> 00:27:31,199
Speaker 1: and that's I think this is the period when you

607
00:27:31,240 --> 00:27:33,320
Speaker 1: do start to see some of that speed increase, Like

608
00:27:33,560 --> 00:27:35,760
Speaker 1: you start to see more gains, and you do get

609
00:27:35,800 --> 00:27:38,800
Speaker 1: to witness your money starting to work harder than you

610
00:27:38,800 --> 00:27:39,439
Speaker 1: would have ever.

611
00:27:39,359 --> 00:27:42,280
Speaker 2: Imagined it working for you. Like honestly, even just money

612
00:27:42,320 --> 00:27:44,320
Speaker 2: that I've got set aside in a savings account, a

613
00:27:44,640 --> 00:27:47,240
Speaker 2: interest rates are going out, so it's nice to see

614
00:27:47,240 --> 00:27:49,520
Speaker 2: a high return there. But just as you set aside

615
00:27:49,520 --> 00:27:52,080
Speaker 2: a fat emergency fund to handle in our case, we

616
00:27:52,200 --> 00:27:53,960
Speaker 2: like to keep six to nine months worth of living

617
00:27:53,960 --> 00:27:56,680
Speaker 2: expenses in there every month, it's really cool to see

618
00:27:56,720 --> 00:27:58,720
Speaker 2: the you know what it is that we're earning on

619
00:27:58,800 --> 00:28:00,920
Speaker 2: that money. And that's just on savings. We're talking about

620
00:28:01,240 --> 00:28:03,919
Speaker 2: investing here, So let's keep talking about some of these

621
00:28:03,920 --> 00:28:07,240
Speaker 2: different life lessons that you can learn from Warren Buffett.

622
00:28:07,240 --> 00:28:10,159
Speaker 2: Something else that's cool about Buffett is that, you know,

623
00:28:10,160 --> 00:28:14,280
Speaker 2: we kind of talked about his partner in crime, Charlie Munger. Warren,

624
00:28:14,320 --> 00:28:16,080
Speaker 2: I think he would have been great without Charlie. He

625
00:28:16,280 --> 00:28:19,040
Speaker 2: was fairly successful before they met. I think he talked

626
00:28:19,080 --> 00:28:21,560
Speaker 2: to a solid start before they together, like he was

627
00:28:21,840 --> 00:28:24,360
Speaker 2: an attorney. But I don't think either one of them

628
00:28:24,440 --> 00:28:27,000
Speaker 2: would be what they are today if it wasn't for

629
00:28:27,040 --> 00:28:29,400
Speaker 2: that partnership. And so I think there's a little lesson

630
00:28:29,400 --> 00:28:32,320
Speaker 2: for us to tease out here, because surrounding yourself with

631
00:28:32,560 --> 00:28:36,280
Speaker 2: brilliant folks and honestly individuals who challenge the way that

632
00:28:36,320 --> 00:28:39,640
Speaker 2: you think about things, that that can be so incredibly valuable.

633
00:28:39,800 --> 00:28:41,880
Speaker 2: Warren Buffett, he said at one point that we've had

634
00:28:41,920 --> 00:28:44,960
Speaker 2: nothing but fun together, and I think their relationship it's

635
00:28:45,040 --> 00:28:47,000
Speaker 2: admirable and I think it's something that we can all

636
00:28:47,120 --> 00:28:50,240
Speaker 2: learn something from. It just makes me think of the

637
00:28:50,520 --> 00:28:52,800
Speaker 2: power of community as well. Joel. And when you've got

638
00:28:52,800 --> 00:28:56,960
Speaker 2: individuals who you're you're doing life with, you've got shared goals. Well,

639
00:28:57,040 --> 00:29:00,520
Speaker 2: the way that you achieve those goals might differ from

640
00:29:00,560 --> 00:29:02,920
Speaker 2: person to person, but when you have similar goals laid

641
00:29:02,920 --> 00:29:05,120
Speaker 2: out off into the future. I think that can be

642
00:29:05,160 --> 00:29:08,560
Speaker 2: incredibly helpful when it comes to the ability to keep

643
00:29:08,600 --> 00:29:10,840
Speaker 2: you accountable. And one of the cool things to do

644
00:29:10,920 --> 00:29:14,200
Speaker 2: about Monger about Charlie Munger, Warren and Charlie have both

645
00:29:14,200 --> 00:29:17,920
Speaker 2: said that they're basically each other's alter egos, and so

646
00:29:18,280 --> 00:29:20,800
Speaker 2: I think what's cool about that is they found in

647
00:29:20,840 --> 00:29:24,680
Speaker 2: each other complimentary skill sets. And what's cool is that

648
00:29:24,760 --> 00:29:26,760
Speaker 2: I feel like you and I. I don't know. I

649
00:29:26,800 --> 00:29:29,080
Speaker 2: was just thinking that I don't know, I get my Monger.

650
00:29:29,120 --> 00:29:34,120
Speaker 2: Since I'm slightly older, you are like the older routch

651
00:29:34,240 --> 00:29:38,120
Speaker 2: your guy with fewer words to share. But I think

652
00:29:38,120 --> 00:29:40,040
Speaker 2: they recognize that and they were able to lean into

653
00:29:40,040 --> 00:29:41,680
Speaker 2: that and in the same way I think you and

654
00:29:41,720 --> 00:29:44,920
Speaker 2: I man our relationship. I guarantee that I would not

655
00:29:45,000 --> 00:29:47,600
Speaker 2: be where I am with my financial goals, if you know,

656
00:29:47,600 --> 00:29:49,480
Speaker 2: if Kate and I hadn't met you and Emily, and

657
00:29:49,800 --> 00:29:51,479
Speaker 2: you know, I'm thinking maybe you say the same thing

658
00:29:51,520 --> 00:29:55,960
Speaker 2: completely but completely even just leaning into those complimentary skill sets,

659
00:29:55,960 --> 00:29:58,080
Speaker 2: whether you're looking for like a significant other or in

660
00:29:58,120 --> 00:29:59,800
Speaker 2: our case, like a business partner, I think that can

661
00:29:59,840 --> 00:30:00,800
Speaker 2: be incredibly When we.

662
00:30:00,720 --> 00:30:03,000
Speaker 1: Started off as just friends and not business partners, and

663
00:30:03,040 --> 00:30:04,680
Speaker 1: that friendship has led to a lot of great things,

664
00:30:04,720 --> 00:30:06,720
Speaker 1: including just one of the by products, really, I think

665
00:30:06,760 --> 00:30:10,120
Speaker 1: has been better financial habits, right as we've kind of

666
00:30:10,160 --> 00:30:12,560
Speaker 1: like challenged each other in different ways, but then growing

667
00:30:12,600 --> 00:30:14,520
Speaker 1: the business together, Like the business like we're what we're

668
00:30:14,520 --> 00:30:16,400
Speaker 1: doing here wouldn't be the same if one of us

669
00:30:16,520 --> 00:30:18,560
Speaker 1: was trying to go it alone, that's for sure, And.

670
00:30:18,520 --> 00:30:21,680
Speaker 2: So initially it was more like small potato personal wins. Yeah,

671
00:30:21,720 --> 00:30:24,120
Speaker 2: we've kind of seen that like grow into like something bigger. Yeah,

672
00:30:24,160 --> 00:30:25,120
Speaker 2: for sure, totally fun.

673
00:30:25,400 --> 00:30:27,320
Speaker 1: I mean, I don't know that we'll ever be as

674
00:30:27,360 --> 00:30:29,920
Speaker 1: influential as as Warren and Charlie.

675
00:30:29,520 --> 00:30:31,280
Speaker 2: But pretty much guarantee that. Well.

676
00:30:31,400 --> 00:30:34,080
Speaker 1: Yeah, but it's cool, like we get to enjoy what

677
00:30:34,080 --> 00:30:36,760
Speaker 1: we do and we get to help people every single week,

678
00:30:36,800 --> 00:30:38,840
Speaker 1: which is something we're passionate about, and we get to

679
00:30:38,920 --> 00:30:40,800
Speaker 1: kind of like enjoy it and spur each other on

680
00:30:40,840 --> 00:30:43,400
Speaker 1: at the same time. Something else that I love about

681
00:30:43,400 --> 00:30:46,360
Speaker 1: Warren Buffet, by the way, is that he's always willing

682
00:30:46,360 --> 00:30:49,480
Speaker 1: to admit his mistakes, and he uses the word mistake

683
00:30:49,960 --> 00:30:52,920
Speaker 1: a lot in his letters. Actually, especially in this year,

684
00:30:52,920 --> 00:30:55,600
Speaker 1: he used it quite a bit, which just really shows

685
00:30:55,640 --> 00:30:58,880
Speaker 1: to me that he's a humble guy. And he says

686
00:30:58,880 --> 00:31:02,320
Speaker 1: that studying the company's stakes with his Partnermonger is more

687
00:31:02,360 --> 00:31:04,920
Speaker 1: important than analyzing their successes. And I think there's a

688
00:31:04,920 --> 00:31:06,320
Speaker 1: lot of truth in that. I think there's a lot

689
00:31:06,360 --> 00:31:09,120
Speaker 1: of benefit to analyzing your mistakes. Not many of us

690
00:31:09,160 --> 00:31:11,320
Speaker 1: want to do that or are prone to do that, though.

691
00:31:11,560 --> 00:31:15,120
Speaker 1: And while knowing what is working is a helpful thing, well,

692
00:31:15,160 --> 00:31:17,920
Speaker 1: I would say figuring out why your endeavor fell short

693
00:31:18,160 --> 00:31:20,640
Speaker 1: can be even more helpful when it comes to moving

694
00:31:20,680 --> 00:31:24,080
Speaker 1: forward and you know, achieving more success in the future.

695
00:31:24,400 --> 00:31:26,360
Speaker 2: That's right. Yeah, So we're kind of talking about some

696
00:31:26,400 --> 00:31:28,240
Speaker 2: of these life lessons. I guess we're kind of veering

697
00:31:28,240 --> 00:31:31,520
Speaker 2: off course from from investing territory, but these are important

698
00:31:31,560 --> 00:31:32,640
Speaker 2: to point out. I think.

699
00:31:32,760 --> 00:31:34,920
Speaker 1: I think it just shows that he's more than just

700
00:31:35,440 --> 00:31:37,600
Speaker 1: a great investor, Like he has other things to teach

701
00:31:37,720 --> 00:31:39,720
Speaker 1: us about running a business, about how to live a

702
00:31:39,760 --> 00:31:42,720
Speaker 1: successful life. And we don't agree with like or we're

703
00:31:42,720 --> 00:31:45,560
Speaker 1: not trying to, like you said, emulate everything that he's done,

704
00:31:45,720 --> 00:31:48,440
Speaker 1: but we also think he's got he's got more to

705
00:31:48,480 --> 00:31:52,040
Speaker 1: give than just he's more than index rage. Yeah, and

706
00:31:52,080 --> 00:31:53,560
Speaker 1: he's more than just a great numbers nerd.

707
00:31:53,880 --> 00:31:56,160
Speaker 2: But along the line again of life lessons, I think

708
00:31:56,160 --> 00:31:59,160
Speaker 2: one of the hardest things in personal finance is to

709
00:31:59,200 --> 00:32:04,040
Speaker 2: not move the goalposts. Specifically, I'm talking about intentional spending here.

710
00:32:04,400 --> 00:32:07,920
Speaker 2: It can be so easy to let lifestyle creep increase,

711
00:32:08,320 --> 00:32:11,560
Speaker 2: causing us to change our habits and to start spending

712
00:32:11,760 --> 00:32:14,200
Speaker 2: more than we should, and then we just end up

713
00:32:14,200 --> 00:32:19,719
Speaker 2: falling into consumeristic behaviors that ultimately undermine our financial progress,

714
00:32:19,720 --> 00:32:22,600
Speaker 2: and they don't really lead to any additional happiness, and

715
00:32:22,760 --> 00:32:25,480
Speaker 2: it trure. Seems like Warren has been able to avoid

716
00:32:25,720 --> 00:32:28,840
Speaker 2: that lifestyle creep. He's been able to avoid moving those goalposts,

717
00:32:29,160 --> 00:32:31,640
Speaker 2: at least from where we're sitting. I know, seems like

718
00:32:31,640 --> 00:32:35,120
Speaker 2: he still eats mcdonald'sretty much like every single day. Yeah,

719
00:32:35,200 --> 00:32:38,800
Speaker 2: I don't think he's the font of healthy living in

720
00:32:38,840 --> 00:32:40,760
Speaker 2: that regard.

721
00:32:40,800 --> 00:32:43,560
Speaker 1: He would make a really bad TikTok nutrition influencer.

722
00:32:44,440 --> 00:32:46,560
Speaker 2: He lives in the same house in Omaha that he

723
00:32:46,600 --> 00:32:51,160
Speaker 2: bought back in nineteen fifty eight. Could he afford something bigger,

724
00:32:51,680 --> 00:32:55,440
Speaker 2: something a little more updated, something nicer. Absolutely, that's an

725
00:32:55,520 --> 00:32:57,560
Speaker 2: understatement to say that he could afford a different house.

726
00:32:58,280 --> 00:33:00,440
Speaker 2: And granted I'm sure, he's got plenty of houses, probably

727
00:33:00,440 --> 00:33:01,400
Speaker 2: all around the world.

728
00:33:01,480 --> 00:33:03,360
Speaker 1: I know he's got a beach house something, But I

729
00:33:03,360 --> 00:33:04,800
Speaker 1: don't know that he has a ton of houses either.

730
00:33:04,840 --> 00:33:05,920
Speaker 1: I'm not sure that's a good question.

731
00:33:06,000 --> 00:33:08,520
Speaker 2: Keep But considering he's the fifth wealthiest person in the

732
00:33:08,640 --> 00:33:12,760
Speaker 2: entire world, he he could own entire countries. Yeah, essentially,

733
00:33:13,040 --> 00:33:15,480
Speaker 2: it's okay if he has a few. How if he's

734
00:33:15,480 --> 00:33:17,360
Speaker 2: got a beach house or if he's got a mountain house.

735
00:33:18,000 --> 00:33:21,160
Speaker 2: It seems that he still takes joy in the simple

736
00:33:21,200 --> 00:33:23,200
Speaker 2: pleasures and that he's able to spend money in the

737
00:33:23,240 --> 00:33:25,400
Speaker 2: ways that bring him the most happiness.

738
00:33:25,440 --> 00:33:27,920
Speaker 1: Yeah, and not just spending to try to fill a hole,

739
00:33:28,000 --> 00:33:30,440
Speaker 1: to try to make himself happier, to try to like

740
00:33:30,480 --> 00:33:32,880
Speaker 1: get a dopamine rush, which is what a lot of

741
00:33:34,040 --> 00:33:36,000
Speaker 1: well I've see a lot of people are are chasing

742
00:33:36,200 --> 00:33:39,480
Speaker 1: right through their consumption. Is that dopamine hit that's going

743
00:33:39,520 --> 00:33:41,560
Speaker 1: to give them a feeling for a short period of time.

744
00:33:41,680 --> 00:33:43,040
Speaker 1: But then you got to go back to the well

745
00:33:43,360 --> 00:33:45,240
Speaker 1: and that creates some of that livestock creep. It makes

746
00:33:45,240 --> 00:33:47,680
Speaker 1: it really hard. It's and I'm not gonna lie, like

747
00:33:47,720 --> 00:33:50,200
Speaker 1: even as someone who's intentional about this or attempts to

748
00:33:50,200 --> 00:33:53,560
Speaker 1: be intentional about this. It's not easy, right to spend

749
00:33:53,560 --> 00:33:56,160
Speaker 1: intentionally to not move the goalpost. I think it is

750
00:33:56,240 --> 00:33:59,040
Speaker 1: human nature to get more and then want more and so,

751
00:34:00,040 --> 00:34:02,120
Speaker 1: but I think calling it out that one of the

752
00:34:02,160 --> 00:34:03,920
Speaker 1: world's richest men has been able to keep this in

753
00:34:04,000 --> 00:34:07,280
Speaker 1: check just says like, Hey, you don't have to inflate

754
00:34:07,320 --> 00:34:10,080
Speaker 1: your lifestyle just because you've got to raise You don't

755
00:34:10,120 --> 00:34:13,920
Speaker 1: have to change your desires just because you have more

756
00:34:13,920 --> 00:34:15,600
Speaker 1: money in the bank. And I think Warren Buffett is

757
00:34:15,600 --> 00:34:17,719
Speaker 1: a great example of that. And one of the things

758
00:34:17,719 --> 00:34:20,080
Speaker 1: he said, Matt, he talks about contentedness, and he says,

759
00:34:20,320 --> 00:34:22,839
Speaker 1: the big question about how people behave is whether they've

760
00:34:22,840 --> 00:34:26,400
Speaker 1: got an inner scorecard or an outer scorecard. It helps

761
00:34:26,480 --> 00:34:29,920
Speaker 1: if you can be satisfied with an inner scorecard. And basically,

762
00:34:29,920 --> 00:34:32,719
Speaker 1: if anyone could flaunt their wealth but chooses not to

763
00:34:33,239 --> 00:34:36,520
Speaker 1: because his innerscorecard is maxed out, it's Warren, right, And

764
00:34:36,800 --> 00:34:40,560
Speaker 1: he's not trying to impress anyone. He's not wearing fancy suits.

765
00:34:40,840 --> 00:34:45,040
Speaker 1: He doesn't care about the fanciest new trends in anything.

766
00:34:45,440 --> 00:34:47,080
Speaker 1: And I don't know, I think that says a lot

767
00:34:47,120 --> 00:34:48,719
Speaker 1: about him, and I think that's something we can all

768
00:34:48,760 --> 00:34:49,240
Speaker 1: learn from.

769
00:34:49,280 --> 00:34:50,920
Speaker 2: That's right. Yeah, I don't know and personally, but it

770
00:34:50,920 --> 00:34:54,400
Speaker 2: certainly seems like he's a very content gentleman. But we

771
00:34:54,440 --> 00:34:56,200
Speaker 2: have a few additional lessons that we're going to get

772
00:34:56,200 --> 00:34:59,319
Speaker 2: to here right after the break, including the ability to

773
00:34:59,400 --> 00:35:02,080
Speaker 2: focus on the things that matter. We'll get to that,

774
00:35:02,160 --> 00:35:13,640
Speaker 2: plus a couple of others right after this. All right,

775
00:35:13,680 --> 00:35:13,960
Speaker 2: we're back.

776
00:35:13,960 --> 00:35:16,239
Speaker 1: We're still talking Buffett here and kind of talking about

777
00:35:16,280 --> 00:35:18,160
Speaker 1: some of the lessons that we can learn Buffett Bainter

778
00:35:18,280 --> 00:35:21,680
Speaker 1: from the investment goat, like he really there's just so

779
00:35:21,760 --> 00:35:24,479
Speaker 1: much I admire about Warren Buffett. But in just a second,

780
00:35:24,520 --> 00:35:26,200
Speaker 1: we're going to talk about the limitations of what he

781
00:35:26,200 --> 00:35:28,879
Speaker 1: can teach us. But let's hit a few more things, Matt,

782
00:35:28,920 --> 00:35:31,320
Speaker 1: that we can all learn from one of the greats.

783
00:35:31,440 --> 00:35:35,120
Speaker 1: As we're kind of assessing his life, assessing his investment style,

784
00:35:35,719 --> 00:35:37,480
Speaker 1: and so I feel like we've already done a lot

785
00:35:37,480 --> 00:35:38,960
Speaker 1: on the investment front, but let's hit a few more

786
00:35:38,960 --> 00:35:41,160
Speaker 1: things that we can all learn from one of the greats.

787
00:35:41,480 --> 00:35:43,759
Speaker 1: And one of those things that it stands out to

788
00:35:43,800 --> 00:35:47,680
Speaker 1: me is that Warren he realizes that taxes they just

789
00:35:47,800 --> 00:35:51,399
Speaker 1: mean that you've been successful, and you don't often hear

790
00:35:51,440 --> 00:35:54,080
Speaker 1: people get excited to pay their taxes. I still haven't

791
00:35:54,080 --> 00:35:56,600
Speaker 1: filed mine yet this year, and I'm not necessarily looking

792
00:35:56,640 --> 00:35:59,000
Speaker 1: forward to it. But Warren, he said it this year's

793
00:35:59,000 --> 00:36:02,400
Speaker 1: annual meeting that at Berkshire, which again as a company

794
00:36:02,400 --> 00:36:04,719
Speaker 1: he owns, we hope and expect to pay much more

795
00:36:04,760 --> 00:36:07,759
Speaker 1: in taxes during the next decade. Hope and expect. I

796
00:36:07,800 --> 00:36:09,920
Speaker 1: was like, dude, the fact that you hope to pay

797
00:36:09,920 --> 00:36:13,000
Speaker 1: more taxes. Again, you never hear anybody's talk like that.

798
00:36:13,040 --> 00:36:14,520
Speaker 1: And I think, but I think it's a really good

799
00:36:14,520 --> 00:36:16,440
Speaker 1: way of looking at things, and I think it's a

800
00:36:16,480 --> 00:36:19,840
Speaker 1: really good way of kind of thinking about the even

801
00:36:19,920 --> 00:36:23,359
Speaker 1: your tax bill right, that's due coming up soon next month.

802
00:36:23,400 --> 00:36:26,200
Speaker 1: And you know, we live in an incredible country, basically

803
00:36:26,280 --> 00:36:29,960
Speaker 1: full of opportunity, and with great privilege comes great responsibility.

804
00:36:29,960 --> 00:36:31,799
Speaker 1: What is that, Spider Man, right, something like that? Yeah,

805
00:36:32,000 --> 00:36:34,680
Speaker 1: Peter Parker, Peter Barker, Yeah, And so like it's it's

806
00:36:34,760 --> 00:36:37,200
Speaker 1: more than okay. We would say to use tax efficient

807
00:36:37,280 --> 00:36:39,600
Speaker 1: vehicles and to be smart on the tax planning front.

808
00:36:39,600 --> 00:36:41,040
Speaker 1: We talk about that kind of stuff on the show.

809
00:36:41,160 --> 00:36:43,880
Speaker 1: We don't want you to pay taxes unnecessarily or to

810
00:36:44,360 --> 00:36:48,000
Speaker 1: avoid investing in the best accounts because you are choosing

811
00:36:48,040 --> 00:36:50,319
Speaker 1: to pay more in taxes for some reason than you owe.

812
00:36:50,440 --> 00:36:53,160
Speaker 1: But it's also good to see that a bigger tax bill,

813
00:36:53,400 --> 00:36:54,920
Speaker 1: it's not the worst thing in the world, and it

814
00:36:54,960 --> 00:36:58,160
Speaker 1: typically it means that you're thriving inside of a really

815
00:36:58,160 --> 00:37:02,640
Speaker 1: fortunate system that does up a lot of people for success. Right,

816
00:37:02,680 --> 00:37:05,480
Speaker 1: And so I think Warren's ability to see that, to

817
00:37:05,560 --> 00:37:08,400
Speaker 1: recognize that is a good thing, and it's something it

818
00:37:08,440 --> 00:37:09,799
Speaker 1: was gonna make It's going to make me feel little

819
00:37:09,800 --> 00:37:11,919
Speaker 1: differently about April eighteenth this year met By.

820
00:37:11,840 --> 00:37:14,839
Speaker 2: The way, I think it's with great power comes great responsibility.

821
00:37:14,880 --> 00:37:17,759
Speaker 2: Oh okay, my bad, it could be privilege. I forget though.

822
00:37:18,160 --> 00:37:20,480
Speaker 2: I think you're right. No, I think it is great power. Yeah.

823
00:37:20,520 --> 00:37:22,360
Speaker 2: But then let's talk about what Warren does with the

824
00:37:22,400 --> 00:37:25,600
Speaker 2: billions of dollars that he's amassed. Well, we know he's

825
00:37:25,640 --> 00:37:29,160
Speaker 2: not inflating his lifestyle in a significant way. Instead, he

826
00:37:29,280 --> 00:37:32,600
Speaker 2: is giving a lot of that money away. He's actually

827
00:37:32,600 --> 00:37:36,160
Speaker 2: given away more than forty eight billion dollars at this point,

828
00:37:36,560 --> 00:37:39,600
Speaker 2: but he's not planning to stop there. He's signed the

829
00:37:40,200 --> 00:37:43,480
Speaker 2: giving Pledge, and that means that he's committed to giving

830
00:37:43,520 --> 00:37:46,960
Speaker 2: away ninety nine percent of his wealth when he dies.

831
00:37:47,080 --> 00:37:49,279
Speaker 2: He signed that back in two thousand and six, and

832
00:37:49,320 --> 00:37:51,560
Speaker 2: when he signed it, he said that were we to

833
00:37:51,640 --> 00:37:55,319
Speaker 2: use more than one percent on ourselves, neither our happiness

834
00:37:55,480 --> 00:37:58,560
Speaker 2: nor our well being would be advanced. This ninety nine

835
00:37:58,600 --> 00:38:01,240
Speaker 2: percent can have a huge impact on health and welfare

836
00:38:01,320 --> 00:38:05,120
Speaker 2: of others. And I think that's true. Well, I mean,

837
00:38:05,120 --> 00:38:08,560
Speaker 2: when you are that wealthy, like what difference will those

838
00:38:08,560 --> 00:38:11,360
Speaker 2: additional dollars make in their lives? And he even acknowledged

839
00:38:11,360 --> 00:38:15,080
Speaker 2: how his gift is a less difficult commitment than most

840
00:38:15,080 --> 00:38:18,759
Speaker 2: families when they are giving their money away. And so

841
00:38:19,320 --> 00:38:21,080
Speaker 2: we wanted to touch on this because I feel like

842
00:38:21,080 --> 00:38:23,560
Speaker 2: in the past we've sort of crapped on Warren before

843
00:38:23,680 --> 00:38:27,719
Speaker 2: just about the incredible amounts of wealth that he has accumulated.

844
00:38:27,760 --> 00:38:31,120
Speaker 2: But he has committed to giving it away. He's signed

845
00:38:31,120 --> 00:38:33,799
Speaker 2: the giving Pledge, and we are all about giving, and

846
00:38:33,960 --> 00:38:36,160
Speaker 2: you know, we think it creates just a more healthy

847
00:38:36,200 --> 00:38:38,680
Speaker 2: relationship with your money. And we actually have a great

848
00:38:38,760 --> 00:38:41,719
Speaker 2: article up on the website. It details how it is

849
00:38:41,760 --> 00:38:44,880
Speaker 2: that you can go about giving away your money and

850
00:38:44,880 --> 00:38:46,600
Speaker 2: how it's an awesome thing we'll make sure to link

851
00:38:46,680 --> 00:38:48,760
Speaker 2: to that in the show notes for this episode.

852
00:38:48,800 --> 00:38:50,440
Speaker 1: Yeah, and we talk in that article about how to

853
00:38:50,480 --> 00:38:53,200
Speaker 1: do it effectively because there are a lot of scams

854
00:38:53,200 --> 00:38:54,480
Speaker 1: out there, and there are just a lot of charities

855
00:38:54,480 --> 00:38:57,360
Speaker 1: who aren't using your money in the way that you

856
00:38:57,440 --> 00:38:59,120
Speaker 1: think they are, and so we want you to do

857
00:38:59,280 --> 00:39:01,120
Speaker 1: due diligence. But before you start giving your money away,

858
00:39:01,120 --> 00:39:02,560
Speaker 1: but we also want you to give your money away.

859
00:39:02,719 --> 00:39:06,240
Speaker 1: We think that it creates like a healthy detachment from

860
00:39:06,320 --> 00:39:07,840
Speaker 1: the money that comes into your life. It gives you

861
00:39:07,920 --> 00:39:11,040
Speaker 1: a proper perspective on money, because money can't cure all

862
00:39:11,040 --> 00:39:13,040
Speaker 1: your ills, and there's lots of good that can be

863
00:39:13,120 --> 00:39:15,760
Speaker 1: done that you can actually see with your own eyeballs

864
00:39:15,960 --> 00:39:17,759
Speaker 1: if you're giving your money away in the here and now.

865
00:39:17,840 --> 00:39:20,560
Speaker 1: So I love that not only has Warren pledged to

866
00:39:20,680 --> 00:39:23,200
Speaker 1: give away the vast majority of his wealth in the future,

867
00:39:23,200 --> 00:39:25,520
Speaker 1: he's also doing it now. He's putting his money where

868
00:39:25,520 --> 00:39:28,000
Speaker 1: his mouth is and he's giving away a lot of

869
00:39:28,120 --> 00:39:31,520
Speaker 1: money every single year, which is cool. So I think

870
00:39:31,560 --> 00:39:34,520
Speaker 1: that's something that we can all we aspire to emulates.

871
00:39:34,840 --> 00:39:36,920
Speaker 1: And on that note, Matt, there's a good quote to

872
00:39:37,040 --> 00:39:40,799
Speaker 1: end this podcast episode on and Warren says, basically, when

873
00:39:40,800 --> 00:39:42,920
Speaker 1: you get to my age, you'll really measure your success

874
00:39:42,960 --> 00:39:45,000
Speaker 1: in life by how many of the people you want

875
00:39:45,040 --> 00:39:48,279
Speaker 1: to have love you actually do love you. I know

876
00:39:48,320 --> 00:39:49,879
Speaker 1: people who have a lot of money and they get

877
00:39:49,880 --> 00:39:52,600
Speaker 1: testimonial dinners and they get hospital wings named after them,

878
00:39:52,640 --> 00:39:55,359
Speaker 1: But the truth is that nobody in the world loves them.

879
00:39:55,520 --> 00:39:57,040
Speaker 1: If you get to my age in life and nobody

880
00:39:57,040 --> 00:39:58,799
Speaker 1: thinks well of you, I don't care how big your

881
00:39:58,800 --> 00:40:03,080
Speaker 1: bank account is, life is a disaster. And man, the

882
00:40:03,120 --> 00:40:05,880
Speaker 1: guy again not just a great investor, although he is,

883
00:40:05,920 --> 00:40:09,640
Speaker 1: he's the greatest, He's the goat. He has life perspective

884
00:40:09,640 --> 00:40:12,040
Speaker 1: at this point that he's accumulated that he's just sharing

885
00:40:12,080 --> 00:40:14,839
Speaker 1: with us regularly. I feel like through his shareholder letter,

886
00:40:14,880 --> 00:40:17,520
Speaker 1: through interviews that he does and this is great perspective

887
00:40:17,560 --> 00:40:19,680
Speaker 1: to have, right. I Mean, obviously what he's been able

888
00:40:19,680 --> 00:40:22,440
Speaker 1: to achieve in his lifetime is admirable in a lot

889
00:40:22,480 --> 00:40:26,040
Speaker 1: of ways. But that dedication and singular focus, right that

890
00:40:26,120 --> 00:40:28,560
Speaker 1: it takes to a mass that kind of wealth. It's

891
00:40:28,680 --> 00:40:30,920
Speaker 1: I will say, it's just not something that I'm terribly

892
00:40:30,920 --> 00:40:31,440
Speaker 1: interested in.

893
00:40:31,440 --> 00:40:31,640
Speaker 2: Matt.

894
00:40:31,640 --> 00:40:33,719
Speaker 1: I don't think that's something that you're interested in we're

895
00:40:33,760 --> 00:40:36,360
Speaker 1: not looking to accumulate. I think in the bio on

896
00:40:36,360 --> 00:40:38,400
Speaker 1: our website it says like we're not looking to accumulate

897
00:40:38,600 --> 00:40:40,640
Speaker 1: billions of dollars of wealth. That is not a goal

898
00:40:40,640 --> 00:40:42,960
Speaker 1: that we have. And you know, more power to you,

899
00:40:43,040 --> 00:40:46,200
Speaker 1: I guess if that's what you're after. But and even

900
00:40:46,239 --> 00:40:49,759
Speaker 1: if it means having an outsized impact on a grander scale, sorry, like,

901
00:40:49,840 --> 00:40:52,000
Speaker 1: that's just not the thing that I'm going for. But

902
00:40:52,320 --> 00:40:54,960
Speaker 1: I still think that this is advice that's important to

903
00:40:54,960 --> 00:40:57,960
Speaker 1: hear when we're younger because the trade offs of a

904
00:40:58,040 --> 00:41:01,520
Speaker 1: not so great family life or not being active in

905
00:41:01,560 --> 00:41:05,200
Speaker 1: our community, and they might not be worth the additional

906
00:41:05,239 --> 00:41:08,600
Speaker 1: dollars in the bank account. Like if let's say you

907
00:41:08,800 --> 00:41:11,799
Speaker 1: take a job that pays fifty thousand dollars more a year,

908
00:41:11,840 --> 00:41:13,840
Speaker 1: but it causes you to be away from your family

909
00:41:14,280 --> 00:41:16,920
Speaker 1: twenty days out of the month, maybe it's worth it,

910
00:41:16,960 --> 00:41:18,560
Speaker 1: and maybe it's worth it for a short period of time.

911
00:41:18,560 --> 00:41:20,040
Speaker 1: But these are the kind of trade offs and things

912
00:41:20,120 --> 00:41:22,120
Speaker 1: we have to think about as people who want to

913
00:41:22,160 --> 00:41:24,400
Speaker 1: be good with money but also don't want money to

914
00:41:24,400 --> 00:41:26,000
Speaker 1: be the end all be all in our lives.

915
00:41:26,239 --> 00:41:28,400
Speaker 2: That's right. Yeah, And again this is something that Warren

916
00:41:28,400 --> 00:41:30,880
Speaker 2: has shared in his later years, and I think we

917
00:41:30,920 --> 00:41:34,200
Speaker 2: would all be served to listen to that advice in

918
00:41:34,239 --> 00:41:37,399
Speaker 2: the here now, because yeah, Warren, you know, he didn't

919
00:41:37,440 --> 00:41:40,880
Speaker 2: have the greatest family life. His relationship with his first wife.

920
00:41:40,960 --> 00:41:42,759
Speaker 2: It was kind of weird that, like they had an

921
00:41:42,800 --> 00:41:46,200
Speaker 2: open marriage. Yeah, and that's not something I'm interested in

922
00:41:46,239 --> 00:41:49,400
Speaker 2: replicating in my own life. But Warren Buffett, he's.

923
00:41:49,200 --> 00:41:51,200
Speaker 1: Since you mentioned at one point, like when you're reading

924
00:41:51,200 --> 00:41:53,200
Speaker 1: the oud, didn't he step over one of his kids

925
00:41:53,239 --> 00:41:54,759
Speaker 1: who was throwing a tantrum or something? We feel like

926
00:41:54,840 --> 00:41:58,000
Speaker 1: we to go up to his office, because yeah, that was.

927
00:41:58,000 --> 00:42:00,759
Speaker 2: What it was like as a father for him. I mean,

928
00:42:00,760 --> 00:42:04,799
Speaker 2: he was singularly focused on business and on reading up

929
00:42:04,800 --> 00:42:06,880
Speaker 2: on the balance sheets of different businesses that he was

930
00:42:06,960 --> 00:42:08,759
Speaker 2: basically looking to scoop up at a deal.

931
00:42:08,840 --> 00:42:11,400
Speaker 1: So if we're talking about one thing, maybe that one

932
00:42:11,400 --> 00:42:13,120
Speaker 1: of the things that we don't admire about Warren, or

933
00:42:13,120 --> 00:42:15,560
Speaker 1: one of the things that we don't desire, is kind

934
00:42:15,600 --> 00:42:17,279
Speaker 1: of the lack of balance that he had at least

935
00:42:17,280 --> 00:42:17,879
Speaker 1: for a bunch of years.

936
00:42:17,920 --> 00:42:18,080
Speaker 2: Act.

937
00:42:18,160 --> 00:42:20,719
Speaker 1: I think I saw something recently that he plays a

938
00:42:20,760 --> 00:42:23,160
Speaker 1: lot of bridge now apparently like eight hours worth of Bridge.

939
00:42:23,239 --> 00:42:25,160
Speaker 2: He's always played a lot of Bridge. Oh really? Oh yea, yeah,

940
00:42:25,200 --> 00:42:26,880
Speaker 2: so even when he was even when he's younger, it

941
00:42:26,960 --> 00:42:29,879
Speaker 2: was something he was infatuated with. Yeah, well, I guess

942
00:42:29,920 --> 00:42:33,200
Speaker 2: it was an infatuation. It's a dedication to a game

943
00:42:33,239 --> 00:42:34,080
Speaker 2: that he loves, which is great.

944
00:42:34,120 --> 00:42:35,759
Speaker 1: I'm all about cheap hobbies and stuff like that, but

945
00:42:35,760 --> 00:42:37,759
Speaker 1: I think that's cool. But I guess even while he

946
00:42:37,840 --> 00:42:42,720
Speaker 1: had a hobby something that he enjoyed doing besides just work,

947
00:42:42,960 --> 00:42:45,319
Speaker 1: that work for a whole lot of years definitely took

948
00:42:45,360 --> 00:42:49,080
Speaker 1: away from, Yeah, some of the relationships that I would

949
00:42:49,080 --> 00:42:52,200
Speaker 1: imagine if you would ask him in a personal context,

950
00:42:52,400 --> 00:42:54,319
Speaker 1: he would say he was just he had dedicated more

951
00:42:54,360 --> 00:42:55,480
Speaker 1: time and energy into I.

952
00:42:55,840 --> 00:42:58,560
Speaker 2: Definitely think so. Yeah, and yeah, we don't want a

953
00:42:58,560 --> 00:43:01,640
Speaker 2: carbon copy and replicate his life. And you know, essentially

954
00:43:01,680 --> 00:43:03,760
Speaker 2: there's a zero chance that we could even come close

955
00:43:03,840 --> 00:43:06,920
Speaker 2: to his investing prowess, but there is still a bunch

956
00:43:06,920 --> 00:43:08,560
Speaker 2: that we can learn. At the end of the day,

957
00:43:08,560 --> 00:43:12,200
Speaker 2: we want you to be a long term, widely diversified investor,

958
00:43:12,400 --> 00:43:15,560
Speaker 2: not somebody who's jumping in and out of stocks, who's

959
00:43:16,360 --> 00:43:19,440
Speaker 2: watching all the latest headlines. That's something that Warren recommended,

960
00:43:19,560 --> 00:43:21,480
Speaker 2: and Joel, that is how you and I how we

961
00:43:21,520 --> 00:43:24,680
Speaker 2: invest our dollars as well. Okay, one last thing I

962
00:43:24,680 --> 00:43:26,319
Speaker 2: appreciate about Warren is that it seems like he's just

963
00:43:26,360 --> 00:43:30,360
Speaker 2: always been an incredible teacher, right. He shares his wisdom,

964
00:43:31,000 --> 00:43:32,520
Speaker 2: and I think that's something that you and I seek

965
00:43:32,560 --> 00:43:33,960
Speaker 2: to do here on the show, where we're seeking to

966
00:43:34,000 --> 00:43:36,759
Speaker 2: help those who follow Hot of Money, who listen to

967
00:43:36,800 --> 00:43:39,680
Speaker 2: our show and hope kudos to a guy that we

968
00:43:39,760 --> 00:43:42,879
Speaker 2: have mad respect for, completely out there doing the good

969
00:43:42,920 --> 00:43:44,160
Speaker 2: work and we love the dude. I think that's what

970
00:43:44,160 --> 00:43:45,719
Speaker 2: we're doing. I'd love to meet him someday. I mean,

971
00:43:46,040 --> 00:43:48,560
Speaker 2: I love Warren. You're welcome on the podcast any time

972
00:43:48,600 --> 00:43:49,960
Speaker 2: you want to come on. So glad we could kind

973
00:43:50,000 --> 00:43:52,719
Speaker 2: of talk about our buddy, our pal, Warren Buffet today

974
00:43:52,760 --> 00:43:55,000
Speaker 2: on the show. That's a right, man. Let's mention the

975
00:43:55,040 --> 00:43:56,759
Speaker 2: beer that you and I enjoyed during this episode. This

976
00:43:56,920 --> 00:44:00,120
Speaker 2: was a blender and I guess black raz that's the

977
00:44:00,960 --> 00:44:03,800
Speaker 2: I'm guessing they make multiple different blenders, but this is

978
00:44:03,960 --> 00:44:08,480
Speaker 2: the Berlin or Vice that is brewed with blackberries and raspberries.

979
00:44:08,520 --> 00:44:09,959
Speaker 2: What were your thoughts on this beer? Buddy?

980
00:44:09,960 --> 00:44:12,719
Speaker 1: Oh man, this was delightful. It was light where we are.

981
00:44:12,880 --> 00:44:17,359
Speaker 1: It feels like spring right now already and particular day. Yeah,

982
00:44:17,440 --> 00:44:19,640
Speaker 1: it is quite warm, yes, and which is so this

983
00:44:19,800 --> 00:44:22,239
Speaker 1: is a perfect beer for that. It's like a delightful sour.

984
00:44:22,320 --> 00:44:24,719
Speaker 1: And I love berry sours. I will say my kids

985
00:44:24,719 --> 00:44:27,680
Speaker 1: would be disappointed that any berries went into a beer

986
00:44:27,719 --> 00:44:30,000
Speaker 1: and not directly into their mouths. Like my kids eat

987
00:44:30,200 --> 00:44:34,160
Speaker 1: so much money's worth of berries this time of berry season. Man, Like, yeah,

988
00:44:34,320 --> 00:44:36,799
Speaker 1: granola with yogurt on it this morning, topped with all

989
00:44:36,840 --> 00:44:37,240
Speaker 1: the berries.

990
00:44:37,320 --> 00:44:38,960
Speaker 2: Yes, they were like all of it.

991
00:44:39,160 --> 00:44:42,600
Speaker 1: Like raspberries, blackberries, strawberries, like they don't discriminate, they want

992
00:44:42,640 --> 00:44:45,200
Speaker 1: them all and so but yeah, I love some good

993
00:44:45,239 --> 00:44:45,919
Speaker 1: berries in my beer.

994
00:44:45,960 --> 00:44:48,759
Speaker 2: And this was I kind of like the black ras combo. Yeah,

995
00:44:48,800 --> 00:44:50,360
Speaker 2: it was tart, it was fruity. I feel like it

996
00:44:50,440 --> 00:44:52,920
Speaker 2: had the right amount of sweetness going on to kind

997
00:44:52,960 --> 00:44:55,520
Speaker 2: of back the flavor of those berries. But I also

998
00:44:55,600 --> 00:44:57,560
Speaker 2: had the right amount of wheatness as well. So this

999
00:44:57,680 --> 00:45:00,480
Speaker 2: is a Berlin vice, which is I like that wheat. Yeah,

1000
00:45:00,560 --> 00:45:06,320
Speaker 2: sweetness and weatness. Berlinervice is a German style wheat and

1001
00:45:06,440 --> 00:45:09,759
Speaker 2: so oftentimes the flavor that you're left with in your

1002
00:45:09,880 --> 00:45:12,200
Speaker 2: mouth after you swallow and you're kind of sitting there

1003
00:45:12,280 --> 00:45:15,680
Speaker 2: doing the kind of thing. It's like this wee weediness.

1004
00:45:15,960 --> 00:45:19,320
Speaker 2: It reminds me of Captain Crunch, specifically oftentimes with Berlin

1005
00:45:19,400 --> 00:45:22,400
Speaker 2: Device's so definitely picked up some of those notes with

1006
00:45:22,560 --> 00:45:25,360
Speaker 2: this one and I liked it. So, Matthew, thank you

1007
00:45:25,520 --> 00:45:29,560
Speaker 2: for donating yet another fantastic beer here to the show again.

1008
00:45:29,680 --> 00:45:30,440
Speaker 2: This one. I don't know why.

1009
00:45:30,440 --> 00:45:32,680
Speaker 1: You just made me think of Katie Perry, like, but what,

1010
00:45:34,520 --> 00:45:36,480
Speaker 1: I drank some Black Rats and I liked it.

1011
00:45:37,400 --> 00:45:39,880
Speaker 2: I got you. But yeah, this is a beer by

1012
00:45:40,160 --> 00:45:43,280
Speaker 2: New Park Brewing, and that's gonna be it for this episode.

1013
00:45:43,360 --> 00:45:45,840
Speaker 2: We will link to some of the different resources that

1014
00:45:45,960 --> 00:45:48,680
Speaker 2: we had mentioned and you can find those show notes

1015
00:45:48,760 --> 00:45:51,799
Speaker 2: up on our website at how Tomoney dot com. But dude,

1016
00:45:51,880 --> 00:45:53,640
Speaker 2: that's going to be it for this one. Until next time.

1017
00:45:53,840 --> 00:45:55,799
Speaker 2: Best Friends Out, Best Friends Out.