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Speaker 1: This is Masters in Business with Barry Ridholts on Bloomberg Radio.

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Speaker 1: Welcome to the podcast this week, we are excited and

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Speaker 1: thrilled to have a very fascinating and interesting guests. His

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Speaker 1: name is Mark Cuban. You probably know him as the

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Speaker 1: owner of the Dallas Mavericks, or if you watch ABC's

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Speaker 1: Shark Tank, he's one of the sharks. Or if you're

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Speaker 1: at all a fan of internet history, you will know

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Speaker 1: that in he sold broadcast dot Com to Yahoo for

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Speaker 1: five point seven billion dollars with a B and then

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Speaker 1: immediately or as soon as he was allowed to collard

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Speaker 1: his share of that in order to protect himself from

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Speaker 1: what he saw as a popping bubble. And that turned

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Speaker 1: out to be a very savvy move. When the market collapse,

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Speaker 1: it didn't hurt him at all. He took his proceeds

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Speaker 1: at the time, bought a Gulf Stream, bought the Dallas Mavericks,

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Speaker 1: made a bunch of other investments, and proceeded to uh

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Speaker 1: live large. And the conversation we had with him was

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Speaker 1: really absolutely a delight. I'll let you in on a

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Speaker 1: little secret. I wanted to get his book to have

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Speaker 1: him sign it for me. Every one of my guests

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Speaker 1: I bring books for them to sign, and I couldn't

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Speaker 1: get his book delivered in time. It only comes direct

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Speaker 1: from a publisher and the kindle wasn't gonna do me

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Speaker 1: any good. So I was scratching my head and trying

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Speaker 1: to figure out what can I do to have him sign.

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Speaker 1: And I was a huge entourage fan the HBO show

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Speaker 1: Um that Mark Wahlberg produced and he had a starring

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Speaker 1: role in it as one of the people behind the

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Speaker 1: behind the alcohol Avianne. It's Avian tequila, and UM, my

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Speaker 1: office is around the corner from a liquor store. I

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Speaker 1: ran over there. They had a bottle of avian and

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Speaker 1: so when we were done with the interview, I said,

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Speaker 1: by the way, I have something for you to sign.

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Speaker 1: I pulled it out and I wish we had the

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Speaker 1: tape running because he just started to crack up. Hey,

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Speaker 1: no one's ever asked me to sign avan before. This

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Speaker 1: will be the only bottle I'll ever sign, and um,

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Speaker 1: I don't know if that's true, but I have the

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Speaker 1: bottle sitting in my credens in my office with his

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Speaker 1: signature on it. He was absolutely charming and a delight

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Speaker 1: to speak with. He's you know, a rarity in modern times.

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Speaker 1: There's no holds barred. He says exactly what he thinks

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Speaker 1: about iron Rand, about gay marriage, about legalizing marijuana, about

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Speaker 1: the sec Ask Mark Cuban a question and he tells you,

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Speaker 1: honestly what he believes the truth to be very refreshing,

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Speaker 1: not the sort of thing we see um amongst billionaires.

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Speaker 1: It was really a fascinating conversation. So rather than have

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Speaker 1: me continue to babble without further ado, here's my conversation

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Speaker 1: with Mark Cuban. This is Masters in Business with Barry

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Speaker 1: Ridholts on Bloomberg Radio. My guest this week is Mark Cuban.

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Speaker 1: You should know who Mark is, and if you don't,

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Speaker 1: let me give you a brief introduction to his extensive

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Speaker 1: curriculum vitae um. He's probably best known these days as

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Speaker 1: the owner of the Dallas Mavericks, or if you're a

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Speaker 1: fan of venture capital investing and television, he's on Shark

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Speaker 1: Tank on ABC S, which has been on since two

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Speaker 1: thousand nine, a very successful show. Mark, Welcome to the show.

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Speaker 1: That is literally the best introduction I've ever heard in

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Speaker 1: my entire life. It's certainly the best one I've done

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Speaker 1: in the past ten minutes, to say the least. So

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Speaker 1: you basically left high school early a year early, went

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Speaker 1: to University of Pittsburgh, and subsequently transferred to Indiana University.

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Speaker 1: I want to go over some of the things you

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Speaker 1: did as an entrepreneur as a kid, which is really, um,

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Speaker 1: quite astonishing. So you, at one point in time asked

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Speaker 1: your father for some money because you wanted to buy

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Speaker 1: a fancy pair of sneakers. And one of the guys

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Speaker 1: playing polka with your dad, probably drunk out of his mind,

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Speaker 1: told you to do what Well, my dad said, you

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Speaker 1: know those shoes and your feet look like they're working

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Speaker 1: pretty well. If you want new pair of sneakers, you

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Speaker 1: need a job and you can go buy them. Um.

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Speaker 1: And I'm like, Dad, I'm twelve years old. Am I

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Speaker 1: going to get a job. And one of his buddies

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Speaker 1: popped up, it was their Thursday night poker game. It

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Speaker 1: was just happened to be their turn at our house,

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Speaker 1: said I got something for you. I got these garbage

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Speaker 1: bags I need to sell. Why don't you go out

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Speaker 1: there and sell these garbage bags, garbage bags like in

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Speaker 1: a big roll, like actually was a box. It was

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Speaker 1: a box, right, And they were just flat and um,

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Speaker 1: they were a hundred for six bucks is what I

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Speaker 1: sold him for. And they cost me three bucks. So

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Speaker 1: I made three bucks a box. And I literally would

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Speaker 1: go door to door to door. Hi, does your family

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Speaker 1: use garbage bags? And who could say? No? I mean,

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Speaker 1: And that's where I learned to sell literally every objection.

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Speaker 1: Of course you use garbage bags, and I bet you

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Speaker 1: you pay more than um whatever it is a hundred,

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Speaker 1: you know, six cents apiece. And so I went out

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Speaker 1: from there. That's amazing. So you did that somehow in

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Speaker 1: the middle of of your education, you became a disco

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Speaker 1: ballroom instructor. Um, it wasn't ballroom. It was pure disco,

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Speaker 1: pure disco disco dancing was the disco dance instructor. But

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Speaker 1: I only taught girls, and I only taught preferably well,

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Speaker 1: not only, but preferably in sorority houses, preferably minimum of

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Speaker 1: ten girls at a time. So this had nothing to

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Speaker 1: do with making money Whatso I had everything to do

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Speaker 1: with making money. But I had because I needed, because

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Speaker 1: I was looking for the person I was going to

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Speaker 1: spend the money on. But it was twenty five an hour,

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Speaker 1: twenty five I would do that on what year, nineteen

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Speaker 1: seventy nine, So that was real money. I would do

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Speaker 1: that job today at the phones will light up and

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Speaker 1: get plenty of plenty of business. So you graduate Indiana

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Speaker 1: and you say, I'm not gonna spend the rest of

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Speaker 1: my life in Pittsburgh. I'm moving to Dallas. Unsun money

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Speaker 1: and women, money and women. That's what's going on in Dallas.

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Speaker 1: My buddies were down there and they're like, you gotta

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Speaker 1: come check it out. We're having a great time. I

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Speaker 1: moved down there. Um there were five guys living in

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Speaker 1: a three bedroom apartment. I was number six. UM. There

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Speaker 1: were no beds left, no rooms left. So I got

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Speaker 1: on the floor. Oh, not even on the not even

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Speaker 1: on the floor. And you joined the company as a salesman, which,

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Speaker 1: if Memory serves, was called Your Business Software. UM. It

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Speaker 1: was one of the first PC software stores and UM.

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Speaker 1: I went in there and I had seen I had

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Speaker 1: had UM not a recruiter, but just one of these

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Speaker 1: UM services that were out there back then. And he

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Speaker 1: sent me over there. And when the first thing they said,

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Speaker 1: they said, look, we can't afford to pay for the service,

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Speaker 1: or you will like to go around. And I'm like,

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Speaker 1: I just need a job, a real job. And I

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Speaker 1: hadn't worked in in technology at all. I really had

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Speaker 1: done very little no technology that minimal, minimal, right, um,

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Speaker 1: taking like one class in college and and really just

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Speaker 1: tried to teach myself basic programming. Um. But he goes, Okay,

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Speaker 1: you've got I've got one question to ask you. Customer

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Speaker 1: comes in and they have software problem and you don't

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Speaker 1: know the answer. What do you do? Said, well, that's easy.

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Speaker 1: I opened up the manual, I read it and I

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Speaker 1: figure it out. He goes, You're hired. And that was it.

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Speaker 1: And that was the start of my technology career. So

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Speaker 1: you're there for a year or so, not even um,

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Speaker 1: not even yeah, maybe nine months, and and shortly thereafter

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Speaker 1: you get fired because you said i'll open the store later.

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Speaker 1: I was an open store later. So it was a

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Speaker 1: retail store and Barbara Depew, who I'll never forget you,

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Speaker 1: went on to work for me. I was working with me,

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Speaker 1: and um, I was like, Barbe, I've got this deal.

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Speaker 1: I've got to close. Would you come in open the store,

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Speaker 1: sweep the floor right, clean, make sure it's open, ready

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Speaker 1: to open. She's like sure, because I'm gonna I'm gonna

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Speaker 1: make some money. My first big commission show go to

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Speaker 1: the boss and told him what I'm doing. He goes, no,

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Speaker 1: you need to be here to open the store. Name

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Speaker 1: was Michael Hugh Mickey. And so I used my first

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Speaker 1: executive decision, and I fairly look when I bring in

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Speaker 1: a check for fifteen thousand dollars fifteen commission for me,

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Speaker 1: he's gonna be thrilled to death. Fired me on the spot,

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Speaker 1: on the spot my check didn't give him the check, right,

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Speaker 1: I went back and got the customer and started a

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Speaker 1: company called micro Solus. That was your first confidence and which,

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Speaker 1: by the way, I'm gonna tell people, was your first

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Speaker 1: big sale. You sold that to compu Serve a couple

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Speaker 1: of years later for six million dollars. Wasn't just a

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Speaker 1: couple of years, it was gosh, it was eight years

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Speaker 1: seven eight years later. So now there's a gap in

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Speaker 1: your CV between nine and I'm assuming that some of

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Speaker 1: that six million dollars was spent in ways that we

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Speaker 1: won't talk about. Um. Actually, I started and sold a

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Speaker 1: couple of commies, including a hedge fund in there. Um,

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Speaker 1: but I parted like a rock star. I can imagine,

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Speaker 1: Oh my god, twenty four you got a couple of

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Speaker 1: million dollars in the bank, and I was making right

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Speaker 1: because this is back when you know, the market so

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Speaker 1: much more efficient now in terms of information, a number

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Speaker 1: of people throwing money at it UM. But I would,

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Speaker 1: I mean, I literally would have some of the biggest

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Speaker 1: names in hedge funds calling me every day, asking Art Sandberg,

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Speaker 1: Lianes Lee, all these guys that own Maverick Capital, and

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Speaker 1: you remember our UM would ask me questions about technology,

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Speaker 1: and I was like, wait, I know more than you guys.

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Speaker 1: I'm gonna start trading stocks. And so just based off

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Speaker 1: of all the things I knew from um um your

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Speaker 1: business software and um micro solutions, I started trading stocks

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Speaker 1: and did so well. I was making eight plus percent

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Speaker 1: a year that we started a hedge fund, and then

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Speaker 1: within less than a year ago bought Coming up, we

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Speaker 1: continue our conversation with Mark Cuban discussing how he sold

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Speaker 1: broadcast dot Com to Yahoo for almost six billion dollars.

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Speaker 1: This week, be sure and check out our podcast extras.

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Speaker 1: Especially this week, Mark Cuban goes off. In our podcast extras.

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Speaker 1: He discusses the SEC what it was like to be

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Speaker 1: the target of one of their prosecutions, how satisfying it

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Speaker 1: was to be vindicated, and why he thinks the SEC

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Speaker 1: is an agency run amuck. That's on our podcast extras.

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Speaker 1: You can find that at Bloomberg dot com and at

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Speaker 1: Apple iTunes. I'm Barry Ridholts. You're listening to Masters in

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Speaker 1: Business on Bloomberg Radio. I'm Barry rid Hult. You're listening

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Speaker 1: to Masters in Business on Bloomberg Radio. My guest today

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Speaker 1: the famous and infamous Mark Cuban. Earlier we were discussing

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Speaker 1: his some of his early accomplishments and business sales. But

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Speaker 1: you started a company in the mid nineties called audio Net,

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Speaker 1: ostensibly for the purpose I want to get this correct

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Speaker 1: of broadcasting who's your basketball games? Who who's your basketball

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Speaker 1: Games's your who's your daddy basketball games? For people who

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Speaker 1: were interested in hearing it mostly for a lum another

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Speaker 1: folks who may not have access anybody right right. So basically,

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Speaker 1: back then, Um, it was and the Internet was new

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Speaker 1: to everybody, and the concept of multimedia or streaming over

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Speaker 1: the Internet was unheard of, and so audio one demand

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Speaker 1: just did not did not exist, not at all, not nothing.

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Speaker 1: And so a friend of mine, UM had a friend

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Speaker 1: who said he was trying to get a way to

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Speaker 1: listen to send scores and information on beepers and pagers

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Speaker 1: and stuff like that, and I'm like, look, that's the

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Speaker 1: wrong way to do. Let's start a company that that

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Speaker 1: tries to figure out how to put audio online. And

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Speaker 1: so nobody was doing it. So we had to go

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Speaker 1: out there and figure out how to make the whole

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Speaker 1: thing work. And so I literally to to get started.

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Speaker 1: I bought a Packard Bell computer putting in the second

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Speaker 1: bedroom my house, bought an I S d N line,

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Speaker 1: hooked it all up, went to the local radio station

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Speaker 1: KLi F that did sports talk radio, and we told

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Speaker 1: them that I don't know what this internet thing is

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Speaker 1: going to turn into, but there's going to be multimedia

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Speaker 1: on at some point and it could be like cable

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Speaker 1: who knows, and this could be the way to go worldwide.

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Speaker 1: Would you let me take your radio feed? And so

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Speaker 1: we bought an eight hour VCR and and a VCR

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Speaker 1: that had supported eight hour VHS tapes connected to a

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Speaker 1: board just like we have here, took the output in

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Speaker 1: our c jack, put it into the VHS um the

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Speaker 1: VCR recorded it. Then we went back and figured out

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Speaker 1: how to encode it, put it on a server that's

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Speaker 1: in my second bedroom, and then we would put we

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Speaker 1: put it on a site called audio net, and I

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Speaker 1: would go on to every online forum, a O L

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Speaker 1: compy server, whatever, and tell people, you got to check

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Speaker 1: out this side audio net and tell me what you think.

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Speaker 1: And it immediately blew up. People want nuts, and were

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Speaker 1: you doing anything other than Indiana basketball? It wasn't even

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Speaker 1: Indiana basketball. From the local radios, from the local radio

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Speaker 1: station called KLi F Dallas, and literally we would take

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Speaker 1: an eight hour VHS tape and then put it into

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Speaker 1: hours worth of broadcast radio, right, just like we're doing here, right,

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Speaker 1: So we take the output of what like we have here,

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Speaker 1: put it onto a VHS tape, take it, put it

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Speaker 1: in a VCR at my house, put it into my

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Speaker 1: packard bell PC, encode it there, and then stream it.

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Speaker 1: It was a horrible way to stream it back then,

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Speaker 1: but when it was on demand, and so when anybody

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Speaker 1: wanted to listen, they'd have to download the player software

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Speaker 1: and can listen. But people fell in love with it

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Speaker 1: because if you were from Dallas or interested in Dallas sports,

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Speaker 1: or Dallas anywhere anywhere, this is the only way to

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Speaker 1: so there was no other real audio on the Internet

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Speaker 1: never And so as much as people have made fun

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Speaker 1: of Yahoo paying what a hundred times sample making funds,

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Speaker 1: are idiots, right, because this was really way ahead of

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Speaker 1: its time and enormous potential. Okay, so there's two elements here. One,

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Speaker 1: what were we doing? Right? There was so little that

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Speaker 1: YouTube does today that we did that we didn't do

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Speaker 1: pretty much. The only difference other than obviously quality because

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Speaker 1: of broadband and higher speed um processes, except that those

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Speaker 1: pipes didn't exist back that you were doing. You were

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Speaker 1: way ahead of the It was even more than that, right, So,

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Speaker 1: I mean we were doing indexing so that we would

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Speaker 1: take the live feed and do audio to text so

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Speaker 1: that you can then go to index dot broadcast dot

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Speaker 1: com and search for what did Rush Limbaugh say or whatever? Right,

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Speaker 1: we were doing every We would have internet radio stations,

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Speaker 1: on demand radio stations, so if you wanted all Elvis,

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Speaker 1: if you wanted all in early Pandora and Spotify, all

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Speaker 1: ahead of that, we had CDs and songs on demand.

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Speaker 1: We actually helped the group Matchbox twenty I'll break that group,

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Speaker 1: you know, by putting it out there and getting them

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Speaker 1: out there, for the very first time. UM. Then we

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Speaker 1: did the same thing with video. As video started to

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Speaker 1: happen and we evolved from audio net to broadcast dot com. Um,

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Speaker 1: we went and did a deal and actually bought back

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Speaker 1: then what would turn into be ten percent of lions

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Speaker 1: Gate Studios, and so we would take their shows and

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Speaker 1: we would stream them, so all this video we would

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Speaker 1: put out there. UM. And then we bought a company

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Speaker 1: called simple Net which allowed us to do user generated

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Speaker 1: content uploads. So we were doing uploads of user generated

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Speaker 1: content in two thousand, long before YouTube. So from whatever

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Speaker 1: and one last thing, right, well, um, our revenues we

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Speaker 1: did at least I remember the exact number, but I

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Speaker 1: think our last quarter was twenty three million we did

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Speaker 1: in revenue, and we were cash flow break even. So

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Speaker 1: we did close to million dollars for our our full

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Speaker 1: year as a public company, or almost four years of

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Speaker 1: public company. And that's in ar So, how did dio

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Speaker 1: net become broadcast dot com? How did that domain we

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Speaker 1: bought the domain for eight thousand dollars get out? That's

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Speaker 1: a lot of money, that eight thousand dollars. Because you

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Speaker 1: know that you know that someone in Yahoo was saying

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Speaker 1: should we should we buy these guys. What do you

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Speaker 1: think is this audio and video strap? Well, they do

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Speaker 1: have the domain broadcast all right, Okay, so just kidding

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Speaker 1: the side I probably had bought along the way trying

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Speaker 1: to figure out ways to um connect audio and video

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Speaker 1: to different domains stand on them. So things from like

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Speaker 1: police Scanner dot com to final four dot net I owned,

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Speaker 1: to Sandwich dot com to baseball dot com to football

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Speaker 1: dot com owned. All you still have any of these domains.

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Speaker 1: Yahoo's had him and sold him was part of the transaction. Yeah,

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Speaker 1: but that's worth five point seven billion. Hard. Look, if

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Speaker 1: you want to do you think I'm giving you a

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Speaker 1: hard No, No, you're no, No, you're completely you're completely

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Speaker 1: misunderstanding what I'm saying. Let's put this. Any time you

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Speaker 1: have the opportunity to sell any sort five points a

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Speaker 1: billion dollars, you do it. You don't, you don't think twice?

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Speaker 1: That's given. Right, Let's look at the valuation. Right. First

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Speaker 1: of all, we got it in stock, right, which you

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Speaker 1: immediately spent twenty million dollars to wrap all. I had

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Speaker 1: to wait six months to do it, but then I

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Speaker 1: do right, because I had There are certain ways I

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Speaker 1: had to follow the laws right. But more importantly so

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Speaker 1: by the way, for the listener, what a collar does

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Speaker 1: is essentially locks of price in by using options. And

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Speaker 1: so even if Yahoo stock substantly collapses from two dollars

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Speaker 1: down to eighteen, not that that's gonna have happened, which

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Speaker 1: went down to five, right, You're locked into your price,

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Speaker 1: so it's not like they paid us in cash. But

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Speaker 1: more importantly, we had of the streaming market that's huge.

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Speaker 1: What was that word? Don't think in terms of dollars

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Speaker 1: per user, because the number of users back then was nothing,

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Speaker 1: but the growth was going to be exponential. Billions of

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Speaker 1: people we were doing. We were doing more, So if

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Speaker 1: you took for inflation, we probably did more five years

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Speaker 1: in than then YouTube. Did you know YouTube wasn't doing

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Speaker 1: a hundred million dollars whatever that translates to. So two

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Speaker 1: quick things before before we run out of time for

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Speaker 1: this segment, you immediately do what what was called the

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Speaker 1: biggest online transaction. I bought a Gulf Stream right away,

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Speaker 1: and then within a few months you buy the Dallas Mavericks.

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Speaker 1: Will continue our conversation with Mark Cuban talking about what

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Speaker 1: life was like being a young, upstart NBA owner and

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Speaker 1: what it was like turning around really one of the

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Speaker 1: laughs of the NBA, one of the worst place teams,

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Speaker 1: really underperforming and taking them to a championship. You're listening

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Speaker 1: to Masters in Business with Barry rid Holts on Bloomberg Radio.

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Speaker 1: I'm Barry rid Helts. You're listening to Masters in Business

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Speaker 1: on Bloomberg Radio. My guest today is Mark Cuban, owner

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Speaker 1: of hd net Access TV. We changed Access TV. I

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Speaker 1: keep calling, okay, um, the Dallas Mavericks, a number of

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Speaker 1: different problem theaters, Magnolia Pictures. So let's talk a little

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Speaker 1: bit about. Look, you're probably best known as the Maverick

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Speaker 1: owner who sits up in the stands with the fans.

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Speaker 1: Let's talk a little bit about I know you're sick

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Speaker 1: to death talking about the Mavericks, but there's so much

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Speaker 1: stuff that's so fascinating. I would be remiss if I

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Speaker 1: didn't point out a couple of interesting things. First, I

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Speaker 1: didn't realize this. You bought the Mavericks from Ross Parro,

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Speaker 1: and you also did some early transactions with him, um

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Speaker 1: in some of your early companies, and any any coincidence

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Speaker 1: to that or yeah, totally coincidence and not Yeah, when

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Speaker 1: um I had micro Solutions, Pro Systems Ross Pro Senior.

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Speaker 1: They couldn't ever make the local ay networks. My first company,

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Speaker 1: micro Solutions, what set us apart. We're one of the

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Speaker 1: first three companies in the country that did local ay

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Speaker 1: networking integration. So back then in Night three and eighty four,

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Speaker 1: no one thought about hooking PCs together. So but nineteen

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Speaker 1: eight we were probably, I mean, we were the largest

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Speaker 1: IBM Locuary networking integrator in the country. Apple came out

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Speaker 1: with Locquary Networks. Ross Pro was a big integrator for

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Speaker 1: with Pro Systems and they couldn't make it work, so

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Speaker 1: they brought us in to make it work. So that

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Speaker 1: was my original connection. But that was ross Pro Senior,

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Speaker 1: and then this was just a coincidence. So you buy

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Speaker 1: in two thousand, you buy the Dallas Mavericks. Let me

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Speaker 1: just explain for people who may not be a hoops fan,

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Speaker 1: how awful they were the twenty years prior. They had

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Speaker 1: a win loss record below they got they got voted

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Speaker 1: the worst professional sports franchise of the nineties. It's unbelievable.

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Speaker 1: In two years before you bought them, they were twenty

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Speaker 1: and sixty two. That's that's just terrific. The year you

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Speaker 1: buy them, they go fifty three and twenty nine, they

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Speaker 1: make it to the second round. In two thousand and six,

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Speaker 1: they make it to the finals only to lose it

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Speaker 1: lose to the Heat. And it looked in the beginning

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Speaker 1: of that that series, but you had a shot. We

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Speaker 1: did have a shot. We kind of got tushy tapped,

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Speaker 1: you know. But to be fair, they were really they

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Speaker 1: were a phenomenal team. You were I wouldn't go that far.

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Speaker 1: Come on, they were a really strong team. Let me,

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Speaker 1: when one player goes to the line, there was on

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Speaker 1: an average more than the other team. Right, yeah, there's

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Speaker 1: something wrong, but you know, there is no shame in

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Speaker 1: losing to that oh six team. They were really there's

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Speaker 1: there's one winner and everybody else is tied for last place.

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Speaker 1: So let's go to two thousand eleven. You get your revenge,

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Speaker 1: you get to play the Miami Heat and and actually win.

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Speaker 1: And you were just overwrought with emotion. We I want

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Speaker 1: remember seeing you on television and it was just it

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Speaker 1: was it was wild. It was really As a fan, look,

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Speaker 1: I used to sit in section two oh five and

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Speaker 1: watch the Knicks play when it was Charles Oakley and

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Speaker 1: Patrick Ewing and actually just passed Anthony Mason on the

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Speaker 1: street the other day. He's still you know, and and

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Speaker 1: you know, the thought of an owner sitting in the

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Speaker 1: stand with you know, with fans is just astonishing. So

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Speaker 1: the first question is what did you do to turn

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Speaker 1: the MAVs around? Because you actually so. When I took

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Speaker 1: over the team was January of two thousand. We were

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Speaker 1: nine and twenty three, and the general manager and coach

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Speaker 1: at the time, Don Nelson, who came from the Knicks,

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Speaker 1: actually um said, you know, we can we we can

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Speaker 1: lose and try to get a good draft pick and

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Speaker 1: dout it out it up. As it turns out, there

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Speaker 1: was one of the one worst drafts ever, And I'm like, no,

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Speaker 1: at some point, this team has to learn how to win.

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Speaker 1: So we focused on winning, and as it turned out,

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Speaker 1: we had a nucleus of a great team and we

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Speaker 1: just didn't People just didn't expect us to win. So

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Speaker 1: the players didn't expect us to win, and so I

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Speaker 1: walked in this that I expect you guys to win.

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Speaker 1: We're not gonna mess around anymore. If you don't lay

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Speaker 1: it out, if you don't put it on the line,

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Speaker 1: I'm a trade your ass and you know, guess what,

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Speaker 1: this is going to be a premier destination in the NBA.

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Speaker 1: You can laugh because that's what everybody did. But I'm

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Speaker 1: gonna kick everybody's ass. They just don't know it. And

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Speaker 1: you had Dirk from the previous year. We had Dirk,

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Speaker 1: Steve Nash, Michael Finley, Sean Bradley. That's quite a cord

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Speaker 1: to build a team. And everybody thought, I mean, we

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Speaker 1: literally couldn't trade Steve Nash. They had tried to trade

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Speaker 1: Steve Nash really got there and they couldn't do it.

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Speaker 1: That trade Michael Finlay. They didn't try to trade Dirk yet. Um,

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Speaker 1: but yeah, it was crazy. Every people who were in

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Speaker 1: Dallas say, going to a Mavericks game is not like

428
00:22:15,520 --> 00:22:17,480
Speaker 1: going to any of the basketball game. Yeah. I really

429
00:22:17,480 --> 00:22:19,680
Speaker 1: try to make an experience. I mean, the thing about

430
00:22:19,680 --> 00:22:21,680
Speaker 1: going to a sporting event is the one place where

431
00:22:21,720 --> 00:22:24,119
Speaker 1: you can scream and yell and they have fun and

432
00:22:24,160 --> 00:22:25,720
Speaker 1: it's all good. And we expect you to do that

433
00:22:25,800 --> 00:22:28,280
Speaker 1: unless you get fine, well that's me right. Everybody else

434
00:22:28,280 --> 00:22:30,239
Speaker 1: can do whatever they want. And I try to make

435
00:22:30,240 --> 00:22:32,800
Speaker 1: it like a good wedding. You know, it's memorable. That's

436
00:22:33,040 --> 00:22:36,600
Speaker 1: you don't remember the scores, you don't remember the jumper time, Yeah,

437
00:22:36,680 --> 00:22:38,399
Speaker 1: and you remember who you were with and why and

438
00:22:38,440 --> 00:22:39,760
Speaker 1: all that kind of stuff. So I want to spend

439
00:22:39,760 --> 00:22:42,760
Speaker 1: too much time talking about the fines, which every time

440
00:22:42,760 --> 00:22:44,800
Speaker 1: you get fined by the NBA you do a match

441
00:22:45,080 --> 00:22:47,920
Speaker 1: charitable deduction. But there was one thing that stood out

442
00:22:47,960 --> 00:22:49,840
Speaker 1: and I have to ask you about because it's almost

443
00:22:49,880 --> 00:22:53,000
Speaker 1: like an urban legend. So at one point in time

444
00:22:53,040 --> 00:22:56,800
Speaker 1: you called Ed Rush, who's the league's manager. Officials, Hey,

445
00:22:56,840 --> 00:22:59,320
Speaker 1: he couldn't manage a dairy queen for a day. And

446
00:22:59,320 --> 00:23:02,280
Speaker 1: then subsequent only the folks at dairy Queen said, it's

447
00:23:02,280 --> 00:23:05,359
Speaker 1: harder than you would imagine, and I you actually managed

448
00:23:05,359 --> 00:23:07,360
Speaker 1: the dairy. Yeah, it's probably the best pr thing I've

449
00:23:07,359 --> 00:23:09,399
Speaker 1: ever done in my life. You know. It's just people

450
00:23:09,440 --> 00:23:11,639
Speaker 1: lined up for I got there at six thirty in

451
00:23:11,640 --> 00:23:13,119
Speaker 1: the morning and there was a line a mile on.

452
00:23:13,280 --> 00:23:15,840
Speaker 1: There was helicopters, and look, it wasn't me. I gotta

453
00:23:15,840 --> 00:23:17,520
Speaker 1: give There's a guy named Paris Chapman who was a

454
00:23:17,560 --> 00:23:21,119
Speaker 1: local dairy queen franchise who mark oh, smartest guy in

455
00:23:21,160 --> 00:23:23,240
Speaker 1: the book when it comes to marketing, because he turned

456
00:23:23,240 --> 00:23:26,919
Speaker 1: it into a circus. Benefited his business, sure, and it

457
00:23:26,960 --> 00:23:29,120
Speaker 1: helped me too. And the urban legend was that Warren

458
00:23:29,160 --> 00:23:31,440
Speaker 1: Buffett sent you a thank you, not what you did.

459
00:23:31,640 --> 00:23:35,080
Speaker 1: That's unbelievable. That's a fascinating story. Coming up, we continue

460
00:23:35,080 --> 00:23:39,200
Speaker 1: our conversation with Mark Cuban discussing his venture capital investments

461
00:23:39,520 --> 00:23:42,160
Speaker 1: and how he became one of the stars of Shark Tech.

462
00:23:42,760 --> 00:23:46,240
Speaker 1: You're listening to Masters in Business with Barry rid Holts

463
00:23:46,240 --> 00:23:54,399
Speaker 1: on Bloomberg Radio. I'm Barry rid Holts. You're listening to

464
00:23:54,520 --> 00:23:57,800
Speaker 1: Masters in Business on Bloomberg Radio. My guest today is

465
00:23:57,880 --> 00:24:02,119
Speaker 1: Mark Cuban, uh fame trade her investor, star of the

466
00:24:02,200 --> 00:24:06,800
Speaker 1: ABC television show Shark Tank, which really has been building

467
00:24:06,880 --> 00:24:09,320
Speaker 1: up a lot of momentum and has generated a lot

468
00:24:09,359 --> 00:24:12,439
Speaker 1: of buzz and now it's really getting killer. Took a

469
00:24:12,520 --> 00:24:15,119
Speaker 1: year or two to get it ratings, but it's blown up.

470
00:24:15,200 --> 00:24:18,800
Speaker 1: Well actually before I was on. No, it's amazing how

471
00:24:18,840 --> 00:24:20,400
Speaker 1: big the show has gotten. It's the number one show

472
00:24:20,440 --> 00:24:23,560
Speaker 1: and all of television watched by families together. And really, yeah,

473
00:24:23,560 --> 00:24:25,639
Speaker 1: what I didn't get when I went on as a

474
00:24:25,680 --> 00:24:29,960
Speaker 1: guest Shark in UM season two, I think UM was

475
00:24:30,080 --> 00:24:32,280
Speaker 1: I thought Okay, this is a business show. I'd watched it,

476
00:24:32,320 --> 00:24:35,119
Speaker 1: I'd liked it. I'd yell at the TV, don't you um?

477
00:24:35,280 --> 00:24:36,719
Speaker 1: And I just thought that was it, right, maybe I'll

478
00:24:36,720 --> 00:24:39,560
Speaker 1: get a good deal. But I go on and I

479
00:24:39,640 --> 00:24:41,320
Speaker 1: do these deals, which actually turned out to be my

480
00:24:41,359 --> 00:24:43,560
Speaker 1: worst deals I've done on Shark Tank. But then all

481
00:24:43,600 --> 00:24:46,159
Speaker 1: of a sudden, I started getting you know, emails and

482
00:24:46,200 --> 00:24:48,639
Speaker 1: comments from people on the street. Love the show. Because

483
00:24:48,680 --> 00:24:50,800
Speaker 1: my seven year old loves to watch it. My twelve

484
00:24:50,880 --> 00:24:54,520
Speaker 1: year old now understands valuations. We talk about businesses we thought,

485
00:24:54,560 --> 00:24:56,800
Speaker 1: you know, when you see some you know, a family

486
00:24:56,880 --> 00:24:59,720
Speaker 1: from Iowa standing on that carpet on Shark Tank talking

487
00:24:59,720 --> 00:25:02,240
Speaker 1: about the company they started as a family and makes

488
00:25:02,320 --> 00:25:05,520
Speaker 1: kids realize they can do it too. And it's so

489
00:25:05,600 --> 00:25:08,199
Speaker 1: aspirational and so not only is it kind of a

490
00:25:08,240 --> 00:25:11,199
Speaker 1: new age liminate stand where it encourages people, but it

491
00:25:11,240 --> 00:25:13,359
Speaker 1: also gives them examples of others who have done it,

492
00:25:13,520 --> 00:25:14,719
Speaker 1: and it's the old thing. You know, if they can

493
00:25:14,720 --> 00:25:17,000
Speaker 1: do it, I can do it. And that's literally what's happened.

494
00:25:17,080 --> 00:25:19,600
Speaker 1: So you started out as an entrepreneur, you know what

495
00:25:19,720 --> 00:25:22,639
Speaker 1: it takes to make a business work. Now you're looking

496
00:25:22,640 --> 00:25:25,960
Speaker 1: at new entrepreneurs. Let me ask you a few questions

497
00:25:26,000 --> 00:25:28,720
Speaker 1: about what you think are the most important things. So

498
00:25:28,760 --> 00:25:31,639
Speaker 1: when you're looking at an early stage investment, is it

499
00:25:31,800 --> 00:25:35,119
Speaker 1: the person, the idea, the cash flow of evaluation? What

500
00:25:35,320 --> 00:25:41,240
Speaker 1: manners most? Idea? Execution, UM, vision, person? Because they all

501
00:25:41,240 --> 00:25:43,959
Speaker 1: go hand in hand. Everybody's got ideas, so that ideas

502
00:25:44,000 --> 00:25:46,080
Speaker 1: alone are worthless. You've got to be able to take

503
00:25:46,119 --> 00:25:49,560
Speaker 1: it from an idea to a business which says something. Right,

504
00:25:49,600 --> 00:25:51,760
Speaker 1: you took it to the first step of execution, then

505
00:25:51,840 --> 00:25:53,800
Speaker 1: where do what's your vision? Where can you take it

506
00:25:53,840 --> 00:25:55,640
Speaker 1: from there? And do I believe that you can get

507
00:25:55,680 --> 00:25:58,520
Speaker 1: it there? Those are the key elements. So who do

508
00:25:58,560 --> 00:26:02,520
Speaker 1: you end up investing with most? Meaning? What other shark

509
00:26:02,800 --> 00:26:04,520
Speaker 1: do you seem? So I try to avoid them all?

510
00:26:05,240 --> 00:26:06,600
Speaker 1: Is that? What? Well? What do you think of the

511
00:26:06,600 --> 00:26:10,560
Speaker 1: people you co invest with? UM? You know there they

512
00:26:08,920 --> 00:26:12,639
Speaker 1: all as investors were. Look, we're all smart. We all

513
00:26:12,640 --> 00:26:15,000
Speaker 1: wouldn't be there unless they have some level of intelligence, right,

514
00:26:15,240 --> 00:26:17,639
Speaker 1: each of us have different skill sets. So where it

515
00:26:17,960 --> 00:26:21,399
Speaker 1: plays to my strengths it's technology, marketing, whatever, than I

516
00:26:21,440 --> 00:26:23,680
Speaker 1: pretty much take control of the deal and they can

517
00:26:23,720 --> 00:26:26,480
Speaker 1: have some of the economics. I don't care, Um, but

518
00:26:27,440 --> 00:26:30,480
Speaker 1: I would say probably Barbara. I like working with Barbara

519
00:26:30,560 --> 00:26:33,000
Speaker 1: the best because Barbara's always got a unique spin on things.

520
00:26:33,160 --> 00:26:35,320
Speaker 1: Lorie's not bad Lorie Lorie because she can put things

521
00:26:35,320 --> 00:26:40,640
Speaker 1: through QBC. But I would say, in uh, mating retail.

522
00:26:40,960 --> 00:26:43,879
Speaker 1: But if you tech sort of products coming, I've had

523
00:26:43,920 --> 00:26:45,879
Speaker 1: all kinds. I mean, I'm up to like fifty deals.

524
00:26:46,119 --> 00:26:49,119
Speaker 1: I've done more deals than from just from Shark, just

525
00:26:49,160 --> 00:26:52,000
Speaker 1: from Shark Tech and and including season six and stuff

526
00:26:52,040 --> 00:26:53,320
Speaker 1: that has an are yet, But I've done more than

527
00:26:53,359 --> 00:26:55,960
Speaker 1: all the other Sharks combined. Really, and you never seem

528
00:26:56,040 --> 00:26:58,199
Speaker 1: to do more than a million dollars it rolls. No, No,

529
00:26:58,240 --> 00:27:00,240
Speaker 1: I've done at one point seven million, will be one.

530
00:27:00,440 --> 00:27:02,440
Speaker 1: I bet at one point five what you're at? What's

531
00:27:02,480 --> 00:27:04,840
Speaker 1: the average? I don't even know, but they all they

532
00:27:04,880 --> 00:27:07,719
Speaker 1: seem to be half millions. No, No, So what happened

533
00:27:07,840 --> 00:27:10,720
Speaker 1: early early in the show, Um, the first couple of

534
00:27:10,720 --> 00:27:13,120
Speaker 1: seasons I was on, the deals are fifties seventy five

535
00:27:13,240 --> 00:27:16,360
Speaker 1: k right, and now last season in particular season six

536
00:27:16,400 --> 00:27:18,520
Speaker 1: that we're in right now, the deals are you know,

537
00:27:18,520 --> 00:27:22,399
Speaker 1: two fifty minimum for the most part K seven fifty

538
00:27:22,680 --> 00:27:25,760
Speaker 1: multimillion deals Um, so they've gotten a lot bigger. The

539
00:27:25,800 --> 00:27:27,800
Speaker 1: companies are a lot more solid than they were in

540
00:27:27,800 --> 00:27:31,359
Speaker 1: the past, more developed. Further, little question about because people

541
00:27:31,400 --> 00:27:34,080
Speaker 1: recognize the value of getting on the show. Well, even

542
00:27:34,119 --> 00:27:37,159
Speaker 1: if you don't get a good deal, someone sees it.

543
00:27:37,280 --> 00:27:41,200
Speaker 1: There's marketing value. You're gonna be attracting others. Twelve million

544
00:27:41,240 --> 00:27:43,920
Speaker 1: people that watch you within the first week of airing.

545
00:27:44,200 --> 00:27:46,320
Speaker 1: Then it's going to repeat on ABC at some point.

546
00:27:46,520 --> 00:27:49,120
Speaker 1: You're gonna get a lot of pr and any entrepreneur

547
00:27:49,160 --> 00:27:52,000
Speaker 1: recognizes that it's part of our job actually being up there.

548
00:27:52,240 --> 00:27:54,360
Speaker 1: I call them gold diggers, right to separate the gold

549
00:27:54,400 --> 00:27:57,280
Speaker 1: diggers from the companies who really need support. Do you

550
00:27:57,440 --> 00:27:59,200
Speaker 1: do You still do a lot of VC and angel

551
00:27:59,240 --> 00:28:02,160
Speaker 1: investing outside the questions about it? Yeah, but I thank

552
00:28:02,320 --> 00:28:05,120
Speaker 1: is just for fun and Shark Tank sends a message, Right,

553
00:28:05,440 --> 00:28:07,399
Speaker 1: I do Shark Tank. The deals are good and I

554
00:28:07,520 --> 00:28:10,240
Speaker 1: enjoy it. But to me, the importance of doing Shark

555
00:28:10,280 --> 00:28:13,000
Speaker 1: Tank UM is more sending the message that the American

556
00:28:13,040 --> 00:28:16,479
Speaker 1: dream is alive. And well, there's no other platform where um,

557
00:28:16,520 --> 00:28:19,960
Speaker 1: whether it's in school, whether it's on television, there's absolutely

558
00:28:20,000 --> 00:28:22,320
Speaker 1: no other platform where you can go out and reach

559
00:28:22,480 --> 00:28:26,720
Speaker 1: kids and families and entrepreneurs and encourage them and support

560
00:28:26,800 --> 00:28:29,239
Speaker 1: them and train them and really fire them up and

561
00:28:29,280 --> 00:28:30,960
Speaker 1: give them some guidance to go out ahead and go

562
00:28:31,000 --> 00:28:34,760
Speaker 1: ahead and start that business. And that's fascinating that families

563
00:28:34,800 --> 00:28:37,520
Speaker 1: are watching the show together more than any of it's

564
00:28:37,520 --> 00:28:41,160
Speaker 1: amazing data point. It's crazy. I mean, parents walk up

565
00:28:41,160 --> 00:28:43,920
Speaker 1: to me just to brag about their kids watching the show.

566
00:28:43,920 --> 00:28:45,920
Speaker 1: It's it's the new age lemonade stand. It's how you

567
00:28:46,000 --> 00:28:48,440
Speaker 1: learn about business. So let's talk a little bit about

568
00:28:48,440 --> 00:28:51,440
Speaker 1: some of your public investments. You've been pretty public about

569
00:28:51,480 --> 00:28:54,680
Speaker 1: the stuff you've looked at. You happen to mention Netflix.

570
00:28:55,160 --> 00:28:57,200
Speaker 1: I think you said a hundred and fifty thou shares

571
00:28:57,240 --> 00:29:00,880
Speaker 1: plus options um it shares that body plus I already

572
00:29:00,920 --> 00:29:04,920
Speaker 1: sold previous to that on a hundred thousand plus UM puts,

573
00:29:05,320 --> 00:29:07,200
Speaker 1: you had sold puts. So you hope in somebody Well,

574
00:29:07,240 --> 00:29:09,320
Speaker 1: I said, if if if a craters, I'm happy to

575
00:29:09,360 --> 00:29:11,160
Speaker 1: own a stock and if it goes up, I've taken

576
00:29:11,160 --> 00:29:14,720
Speaker 1: in premium. Now walk us through the thought process. Is

577
00:29:14,760 --> 00:29:17,720
Speaker 1: this Are you looking at Netflix like you're making a

578
00:29:17,800 --> 00:29:20,400
Speaker 1: venture investment in a company because you like their long

579
00:29:20,520 --> 00:29:22,840
Speaker 1: term perspective? As a business and you don't care we've

580
00:29:22,840 --> 00:29:25,160
Speaker 1: gone through. You've got to look at the big picture, right,

581
00:29:25,520 --> 00:29:29,760
Speaker 1: So within a macro positioning, there there are no more

582
00:29:29,800 --> 00:29:33,240
Speaker 1: small I p o s, certainly not lately. No, And

583
00:29:33,240 --> 00:29:35,440
Speaker 1: that we'll go back to the SEC. Right. They crushed

584
00:29:35,440 --> 00:29:38,280
Speaker 1: the I p O market, And so without the the

585
00:29:38,480 --> 00:29:40,840
Speaker 1: I p O market, there's not a big risk of

586
00:29:40,920 --> 00:29:44,040
Speaker 1: companies come up to to bang on you. Right, there's

587
00:29:44,080 --> 00:29:46,560
Speaker 1: no broadcast dot Com, there's no you know two thousand

588
00:29:46,920 --> 00:29:50,320
Speaker 1: for Googles. Right, it's so hard to go public that

589
00:29:50,400 --> 00:29:52,960
Speaker 1: it's gonna be very, very difficult for up and comers

590
00:29:53,000 --> 00:29:56,640
Speaker 1: to knock off an incumbent, which I think Netflix is.

591
00:29:56,760 --> 00:29:59,880
Speaker 1: So in otherways, the SEC rule changes for allowing all

592
00:30:00,040 --> 00:30:05,200
Speaker 1: these pre public private investments. Now all these companies are No,

593
00:30:05,480 --> 00:30:08,400
Speaker 1: it's not even that, right, So put that in your

594
00:30:08,440 --> 00:30:10,680
Speaker 1: in the pipe, right, and we'll go to Netflix first.

595
00:30:10,880 --> 00:30:12,520
Speaker 1: So in the bigger picture of things, if you look

596
00:30:12,800 --> 00:30:16,239
Speaker 1: at the whole entertainment environments and you say, what is

597
00:30:16,440 --> 00:30:22,480
Speaker 1: the most disruptive force in media today? Netflix, no doubt

598
00:30:22,520 --> 00:30:26,240
Speaker 1: about it. The estimates are at night it's Enginet traffic

599
00:30:26,400 --> 00:30:30,120
Speaker 1: more now, right, And so I hadn't always looked at

600
00:30:30,160 --> 00:30:33,200
Speaker 1: Netflix that way. But what's happened now is that all

601
00:30:33,360 --> 00:30:37,720
Speaker 1: the um the pipe companies, right, the risings, the A

602
00:30:37,800 --> 00:30:40,960
Speaker 1: T t s, they've all invested so much money in

603
00:30:40,960 --> 00:30:45,000
Speaker 1: infrastructure that delivering Netflix. They can do it. Now You're

604
00:30:45,000 --> 00:30:47,360
Speaker 1: not getting the buffering like you used to. I mean,

605
00:30:47,360 --> 00:30:49,280
Speaker 1: there's still some, but it's not nearly as bad. So

606
00:30:49,320 --> 00:30:52,200
Speaker 1: all the infrastructure is there for Netflix. And so that's

607
00:30:52,240 --> 00:30:55,800
Speaker 1: part one, Part two. There's nobody who does what they

608
00:30:55,840 --> 00:30:58,160
Speaker 1: do at the scale of what they do, at the

609
00:30:58,240 --> 00:31:00,840
Speaker 1: price of what they do. There's others that are coming

610
00:31:00,840 --> 00:31:03,360
Speaker 1: in like HBO Go. There's others that are coming in

611
00:31:03,360 --> 00:31:06,160
Speaker 1: like CBS, but those you know, there's Hulu, but those

612
00:31:06,200 --> 00:31:08,880
Speaker 1: are more in the fringe. Right. If you look at

613
00:31:08,960 --> 00:31:12,280
Speaker 1: Netflix with you know, forty million with or fifty million

614
00:31:12,280 --> 00:31:14,840
Speaker 1: global subscribers, and ask, okay, if they can get to

615
00:31:14,920 --> 00:31:17,560
Speaker 1: fifty and they're just starting to grow international, can they

616
00:31:17,600 --> 00:31:21,880
Speaker 1: get to a million? Yeah? Can they get the five million? Yeah?

617
00:31:21,920 --> 00:31:24,840
Speaker 1: Because CBS, HBO, they're not all of a sudden going

618
00:31:24,840 --> 00:31:27,280
Speaker 1: to entrench themselves. Now, then you look to the flip

619
00:31:27,360 --> 00:31:29,240
Speaker 1: side of that, what is the impact of all that

620
00:31:29,640 --> 00:31:33,640
Speaker 1: on content and entertainment? Already today, if you wanted to

621
00:31:33,680 --> 00:31:37,960
Speaker 1: create a high end show, you don't go to um

622
00:31:38,120 --> 00:31:40,360
Speaker 1: HBO and ask for an output deal like you would

623
00:31:40,360 --> 00:31:43,080
Speaker 1: have ten fifteen years ago. You go to Netflix. If

624
00:31:43,240 --> 00:31:45,840
Speaker 1: when CBS wants to start a new TV show, when

625
00:31:45,880 --> 00:31:50,040
Speaker 1: Access TV or Magnolia Pictures Entertainment want to do a

626
00:31:50,120 --> 00:31:53,280
Speaker 1: movie or show, we go to Netflix to see if

627
00:31:53,280 --> 00:31:57,160
Speaker 1: the money is there that they want to participate with us. Right, Netflix,

628
00:31:57,360 --> 00:31:59,240
Speaker 1: years ago, you would have gone to a network or

629
00:31:59,280 --> 00:32:03,360
Speaker 1: a movie studio right right. Used to be that Showtime

630
00:32:03,360 --> 00:32:05,640
Speaker 1: and HBO said okay, ten percent of the box office,

631
00:32:05,640 --> 00:32:07,680
Speaker 1: we'll give that to you, right and exchange for the

632
00:32:07,760 --> 00:32:10,560
Speaker 1: rights to the movies. That's pretty much gone. So now

633
00:32:11,000 --> 00:32:14,840
Speaker 1: Netflix and ess and subsidize the whole content industry, the

634
00:32:14,840 --> 00:32:18,640
Speaker 1: whole and that's extending to the global content industry. Now.

635
00:32:18,800 --> 00:32:21,440
Speaker 1: The short sellers say, well, that's an eight billion dollar

636
00:32:21,880 --> 00:32:25,080
Speaker 1: um hickey on their balance sheet of in some respects

637
00:32:25,160 --> 00:32:28,920
Speaker 1: undocumented or off the books on liabilities. I look at

638
00:32:28,960 --> 00:32:33,920
Speaker 1: and says and say, everybody needs Netflix really really bad

639
00:32:34,000 --> 00:32:37,480
Speaker 1: to survive, and they both need each other. Right, Netflix

640
00:32:37,520 --> 00:32:40,080
Speaker 1: needs all that TV content to be created and put

641
00:32:40,080 --> 00:32:42,760
Speaker 1: on TV because it's a cheap source of content and

642
00:32:42,800 --> 00:32:47,440
Speaker 1: gives them breath. And every major TV show um on television,

643
00:32:47,560 --> 00:32:51,240
Speaker 1: whether it's cable or broadcast, needs Netflix to subsidize them.

644
00:32:51,280 --> 00:32:54,120
Speaker 1: Movies look for Netflix to subsidize them, so that it's

645
00:32:54,160 --> 00:32:57,560
Speaker 1: that symbiotic relationship is going to allow Netflix to grow.

646
00:32:57,920 --> 00:33:02,120
Speaker 1: And they're locked into the infrastructure of the infrastructure the media,

647
00:33:02,280 --> 00:33:05,400
Speaker 1: and nobody else has access to they don't have access.

648
00:33:05,560 --> 00:33:09,160
Speaker 1: What Netflix did that was brilliant when they really got going,

649
00:33:09,280 --> 00:33:13,360
Speaker 1: they it was what they did an ARB, right, that

650
00:33:13,520 --> 00:33:16,280
Speaker 1: was the most brilliant ARB of all time. So up

651
00:33:16,360 --> 00:33:19,160
Speaker 1: until Netflix really started to push, it would be okay

652
00:33:19,200 --> 00:33:20,800
Speaker 1: if I want to sell on iTunes, if I want

653
00:33:20,800 --> 00:33:22,560
Speaker 1: to sell on Amazon, if I want to sell anywhere.

654
00:33:22,640 --> 00:33:25,040
Speaker 1: I got a commission. It was basically on consignment. If

655
00:33:25,080 --> 00:33:26,880
Speaker 1: I sold it for fifteen dollars, and look, I have

656
00:33:26,960 --> 00:33:29,680
Speaker 1: movie companies, right. So one of my my first movie ever, Greenlit,

657
00:33:29,720 --> 00:33:31,360
Speaker 1: was in Ron the smartest guys in the room. So

658
00:33:31,400 --> 00:33:34,800
Speaker 1: if I sold a DVD UM of of Enron and

659
00:33:34,840 --> 00:33:37,720
Speaker 1: I got my fort or whatever, the margin was okay, great,

660
00:33:37,920 --> 00:33:40,040
Speaker 1: and I didn't know how many I would sell well,

661
00:33:40,160 --> 00:33:42,120
Speaker 1: and then I might have some other content from Access

662
00:33:42,120 --> 00:33:47,080
Speaker 1: TV or wherever or that was just dusty. Netflix said,

663
00:33:47,080 --> 00:33:48,560
Speaker 1: you know what, we know how we're going to market that,

664
00:33:48,560 --> 00:33:50,040
Speaker 1: we know how we're going to get money. I'm gonna

665
00:33:50,040 --> 00:33:52,760
Speaker 1: write you a check up front. We're gonna pay cash

666
00:33:52,800 --> 00:33:55,400
Speaker 1: up front. So it was an arb my cash versus

667
00:33:55,440 --> 00:33:58,280
Speaker 1: how much revenue I can create using your content. And

668
00:33:58,320 --> 00:34:01,000
Speaker 1: they made it work. They marketed, their marketing was brilliant,

669
00:34:01,000 --> 00:34:04,000
Speaker 1: and their subscribers grow and it created a dependent field.

670
00:34:04,160 --> 00:34:06,800
Speaker 1: Thank you, Mark, We appreciate you spending so much time

671
00:34:06,840 --> 00:34:09,399
Speaker 1: with us today. This week, be sure and check out

672
00:34:09,400 --> 00:34:12,640
Speaker 1: our podcast extras. You can find them on iTunes and

673
00:34:12,680 --> 00:34:15,879
Speaker 1: at Bloomberg dot com. And I really mean this week,

674
00:34:15,920 --> 00:34:18,520
Speaker 1: be sure and check it out. Mark was nice enough

675
00:34:18,560 --> 00:34:20,719
Speaker 1: to hang out with us for an hour after the

676
00:34:20,760 --> 00:34:25,279
Speaker 1: broadcast portion was over, and we discussed everything from his

677
00:34:25,400 --> 00:34:29,239
Speaker 1: continuing interest in picking up a major League baseball team

678
00:34:29,280 --> 00:34:33,840
Speaker 1: to a deep dive into his experiences with the SEC,

679
00:34:34,680 --> 00:34:37,840
Speaker 1: some of which were absolutely hilarious. He had us cracking

680
00:34:37,960 --> 00:34:41,319
Speaker 1: up in the studio. If you've enjoyed these sorts of interviews,

681
00:34:41,480 --> 00:34:45,359
Speaker 1: check out all of our archive of previous conversations. You

682
00:34:45,360 --> 00:34:48,680
Speaker 1: can find them at iTunes or Bloomberg dot com. My

683
00:34:48,880 --> 00:34:52,080
Speaker 1: daily column shows up every day at Bloomberg View dot

684
00:34:52,120 --> 00:34:55,440
Speaker 1: com and you could follow me on Twitter at rid Holtz.

685
00:34:55,920 --> 00:34:58,880
Speaker 1: I'm Barry rid Holts. You're listening to Masters in Business

686
00:34:58,880 --> 00:35:07,560
Speaker 1: on Bloomberg Radio. Welcome back to the podcast half of

687
00:35:07,600 --> 00:35:10,560
Speaker 1: our show. I'm Barry rid Halts and my guest in

688
00:35:10,600 --> 00:35:15,000
Speaker 1: the studio tonight we're recording this Monday night is Mark Cuban.

689
00:35:15,080 --> 00:35:18,640
Speaker 1: You're you're in town for a handful of NBA meeting.

690
00:35:18,719 --> 00:35:21,000
Speaker 1: What is that like when you go to an NBA meeting?

691
00:35:21,440 --> 00:35:25,160
Speaker 1: Are you like well behaved or you renegade? And the renegade?

692
00:35:25,760 --> 00:35:28,279
Speaker 1: What is Mark? No, no, no, no, it's actually the opposite. Mark.

693
00:35:28,280 --> 00:35:30,560
Speaker 1: You're gonna talk about this right because so all these

694
00:35:30,600 --> 00:35:33,040
Speaker 1: guys who are proper I don't want to talk about

695
00:35:33,520 --> 00:35:35,239
Speaker 1: down low. It's like, hey, here's what you got it.

696
00:35:35,280 --> 00:35:37,080
Speaker 1: And things have really changed the less since Adam Silver

697
00:35:37,200 --> 00:35:39,520
Speaker 1: came in, because guys are a little bit more comfortable

698
00:35:39,520 --> 00:35:42,719
Speaker 1: with Adam. Um. David was a little bit. You had

699
00:35:42,760 --> 00:35:45,320
Speaker 1: good things to say about I like David was a

700
00:35:45,320 --> 00:35:47,719
Speaker 1: little the things we disagreed on, but I respect them.

701
00:35:47,719 --> 00:35:49,360
Speaker 1: Like David, he did a great job. He was a

702
00:35:49,400 --> 00:35:52,320
Speaker 1: great ambassador for the NBA. Globally he was. He was

703
00:35:52,360 --> 00:35:56,480
Speaker 1: a hero for US. Um. But just the just the

704
00:35:56,520 --> 00:35:58,799
Speaker 1: approach is a little bit different. Adams a little bit

705
00:35:58,880 --> 00:36:01,320
Speaker 1: lighter and David's was a little but not I wouldn't

706
00:36:01,320 --> 00:36:06,680
Speaker 1: say formal, just more um. Oh, what's the right word.

707
00:36:06,920 --> 00:36:09,440
Speaker 1: David had his way of doing No, No, it was

708
00:36:09,480 --> 00:36:11,719
Speaker 1: just he had his opinion. He was opinionated in his

709
00:36:11,800 --> 00:36:14,640
Speaker 1: own way, and he wasn't as open to disagreement. Okay,

710
00:36:14,719 --> 00:36:16,520
Speaker 1: well that goes on. Well why we buy bad at

711
00:36:16,520 --> 00:36:18,799
Speaker 1: heads but respected each other. Well we see how that

712
00:36:19,080 --> 00:36:22,520
Speaker 1: sort of disagreement has worked out in the NFL these days. Yeah,

713
00:36:22,520 --> 00:36:24,920
Speaker 1: it hasn't helped them at all. And you've you've been

714
00:36:24,960 --> 00:36:27,839
Speaker 1: pretty outspoken. I'm sure you're tired about talking about that

715
00:36:28,000 --> 00:36:31,160
Speaker 1: by now. But the NFL had a couple of issues

716
00:36:31,200 --> 00:36:33,200
Speaker 1: and they just never really dealt with it, right, Yeah.

717
00:36:33,200 --> 00:36:35,439
Speaker 1: I mean, you know what I basically I was saying

718
00:36:35,520 --> 00:36:37,520
Speaker 1: is that when you're building a business and you're climbing

719
00:36:37,600 --> 00:36:39,600
Speaker 1: up the mountain to be the best, it's one set

720
00:36:39,600 --> 00:36:41,839
Speaker 1: of skills, and when you're there to stay on top,

721
00:36:41,840 --> 00:36:43,839
Speaker 1: it's a different set of skills. And it's really really

722
00:36:43,840 --> 00:36:46,759
Speaker 1: easy when you're in top to to feel entitled and

723
00:36:46,840 --> 00:36:50,279
Speaker 1: to feel like you're invincible. And when that happens, you know,

724
00:36:50,280 --> 00:36:54,360
Speaker 1: pigs get that m Hoggs get slaughtered, and it's it's

725
00:36:54,400 --> 00:36:57,920
Speaker 1: a recipe for disaster. Now, they haven't had disaster yet,

726
00:36:58,000 --> 00:37:01,160
Speaker 1: but it's not like people haven't had second thoughts about

727
00:37:01,160 --> 00:37:03,360
Speaker 1: the NFL. They've certainly taken a pr hit. You know.

728
00:37:03,400 --> 00:37:06,279
Speaker 1: We we go through that same conversation with people who

729
00:37:06,320 --> 00:37:09,759
Speaker 1: spend their whole career accumulating assets. And when you say

730
00:37:09,760 --> 00:37:11,759
Speaker 1: to them, all right, you gotta take a breath. You're

731
00:37:11,760 --> 00:37:14,839
Speaker 1: now you're no longer in the asset accumulation business. You're

732
00:37:14,840 --> 00:37:18,640
Speaker 1: in the asset preservation business. That's a mental transition. That's

733
00:37:19,040 --> 00:37:21,319
Speaker 1: a hard time to Part two, that is, everybody's a

734
00:37:21,320 --> 00:37:23,640
Speaker 1: genius in a bull market. Sure, right, the NFL has

735
00:37:23,680 --> 00:37:27,400
Speaker 1: gone through very much a bull market because of fantasy sports,

736
00:37:27,600 --> 00:37:30,200
Speaker 1: because it's a great every everything, right. I mean, you

737
00:37:30,239 --> 00:37:32,160
Speaker 1: go back twenty years there were teams leaving in the

738
00:37:32,160 --> 00:37:35,560
Speaker 1: middle of the night, you know, and so look, they

739
00:37:35,600 --> 00:37:38,239
Speaker 1: deserve all the credit. Jerry Jones, is I really look

740
00:37:38,320 --> 00:37:41,400
Speaker 1: up to you in terms of sales stadium awesome, unbelievable,

741
00:37:41,480 --> 00:37:44,200
Speaker 1: it's literally actually wonder the world when we last time

742
00:37:44,239 --> 00:37:46,520
Speaker 1: we were in Dallas, we went to a game just

743
00:37:46,680 --> 00:37:48,960
Speaker 1: to see the stadium. A lot of people do. It's brilliant.

744
00:37:49,040 --> 00:37:51,880
Speaker 1: It's really a million states got balls of steel to have,

745
00:37:52,040 --> 00:37:53,960
Speaker 1: you know, put himself on the line like that. So

746
00:37:54,040 --> 00:37:57,359
Speaker 1: Jerry deserves a ton of credit. But you know, it's

747
00:37:57,480 --> 00:38:00,520
Speaker 1: it's difficult. And the reason I know that they have

748
00:38:00,680 --> 00:38:03,600
Speaker 1: problems now is because you saw Roger Goodell out front,

749
00:38:03,680 --> 00:38:06,240
Speaker 1: and you didn't see a single owner out there with him,

750
00:38:06,400 --> 00:38:09,200
Speaker 1: so they just let him flap in the breeze. Look, hey, listen,

751
00:38:09,280 --> 00:38:11,359
Speaker 1: the first rule of holes is stop digging. And he

752
00:38:11,480 --> 00:38:13,680
Speaker 1: doesn't seem to want to stop. It's a little bit

753
00:38:13,719 --> 00:38:17,120
Speaker 1: different because I'll give you an analogy. Growing up in Pittsburgh,

754
00:38:17,200 --> 00:38:19,080
Speaker 1: right you you were talking about the Mets. Well, up

755
00:38:19,160 --> 00:38:21,279
Speaker 1: until the last two years, everybody would say, why don't

756
00:38:21,280 --> 00:38:22,920
Speaker 1: you buy the pirates? Why would you buy the pirates?

757
00:38:23,160 --> 00:38:24,799
Speaker 1: And I said, because they're not for sale. Well, he'll

758
00:38:24,800 --> 00:38:26,560
Speaker 1: be right, price still sell it to him. I said,

759
00:38:26,600 --> 00:38:28,719
Speaker 1: he Look, here's why they're not going to sell. If

760
00:38:28,760 --> 00:38:30,959
Speaker 1: I told you, I would pay you twenty five million

761
00:38:31,000 --> 00:38:32,400
Speaker 1: dollars a year to stand right in the middle of

762
00:38:32,400 --> 00:38:34,960
Speaker 1: the city of Pittsburgh and have every single resident yell

763
00:38:35,000 --> 00:38:36,960
Speaker 1: at you twenty four hours a day. Would you take

764
00:38:37,000 --> 00:38:41,840
Speaker 1: that twenty five million dollars a year? Everybody will take that? Sure? Yeah? Okay.

765
00:38:41,840 --> 00:38:43,360
Speaker 1: So if I told you I'm gonna pay you forty

766
00:38:43,360 --> 00:38:45,719
Speaker 1: four million dollars a year to stand in front of

767
00:38:45,719 --> 00:38:48,680
Speaker 1: the media and take the bullets for all the NFL owners,

768
00:38:48,960 --> 00:38:51,600
Speaker 1: would you take that job? Yeah? And that's what Roger

769
00:38:51,640 --> 00:38:54,200
Speaker 1: Goodell's job is. He's taking the bullets. He's the one

770
00:38:54,239 --> 00:38:56,200
Speaker 1: saying it's my fault, it's my fault, it's my fault.

771
00:38:56,560 --> 00:39:00,719
Speaker 1: And you know it's working now because they you know,

772
00:39:00,760 --> 00:39:02,960
Speaker 1: they haven't had any issues. But it's gonna you know,

773
00:39:03,000 --> 00:39:05,120
Speaker 1: things are gonna be happening. Things will happen, and it'll

774
00:39:05,160 --> 00:39:08,160
Speaker 1: be interesting to see how they respond. Fascinating. So now

775
00:39:08,239 --> 00:39:11,160
Speaker 1: let's talk a little bit about um, the Mets. That's

776
00:39:11,160 --> 00:39:13,279
Speaker 1: not gonna happenna, happen, not gonna happen. We get you

777
00:39:13,320 --> 00:39:17,760
Speaker 1: and David Einhorn together retired in a couple of weeks.

778
00:39:17,920 --> 00:39:19,600
Speaker 1: He wasn't a fan of you, is I know he

779
00:39:19,640 --> 00:39:21,439
Speaker 1: hated me and I wasn't a fan of his. And

780
00:39:21,440 --> 00:39:24,239
Speaker 1: and once he's gone, any chance you buy. I don't know,

781
00:39:24,360 --> 00:39:25,799
Speaker 1: you know, if the Mets came along, I wouldn't buy

782
00:39:25,800 --> 00:39:29,360
Speaker 1: and by myself, Um, because now I have three young kids. Um,

783
00:39:29,640 --> 00:39:32,080
Speaker 1: it's too much fun spending time with them. My engineer,

784
00:39:32,160 --> 00:39:34,799
Speaker 1: Charlie says, he'll he'll go half with you done on

785
00:39:34,840 --> 00:39:38,359
Speaker 1: the Mets. Done. There are a lot of people who

786
00:39:38,400 --> 00:39:41,879
Speaker 1: would love to rest control of the Mets. Absolutely from

787
00:39:42,000 --> 00:39:44,200
Speaker 1: they really, but it's the same thing that I'm sure

788
00:39:44,239 --> 00:39:46,560
Speaker 1: they're making money. If they weren't, they would be sellers.

789
00:39:47,200 --> 00:39:50,279
Speaker 1: They did a phenomenal job renovating. That's, by the way,

790
00:39:50,320 --> 00:39:53,759
Speaker 1: That's another really nice stadium. Everybody loves Yankee Stadium. But

791
00:39:54,120 --> 00:39:56,719
Speaker 1: the little secret in New York is City Field is

792
00:39:56,760 --> 00:39:59,759
Speaker 1: actually a nicer place, and it's not such a little secret, right. Um,

793
00:40:00,200 --> 00:40:02,880
Speaker 1: Mets fans are always piste off when the problem is

794
00:40:03,040 --> 00:40:05,520
Speaker 1: it's a beautiful place, but you gotta go watch the Mats.

795
00:40:05,520 --> 00:40:09,320
Speaker 1: I grew up a Mets fan all Island and long suffering. Uh,

796
00:40:09,400 --> 00:40:11,920
Speaker 1: the Knicks, the Mets. It's just really big hope you're

797
00:40:11,920 --> 00:40:15,319
Speaker 1: suffering continues because they play. So let's talk a little

798
00:40:15,320 --> 00:40:18,839
Speaker 1: bit about we discussed earlier your investment in Netflix. Let's

799
00:40:18,880 --> 00:40:22,560
Speaker 1: talk about some of the other more. Um, what's the

800
00:40:22,640 --> 00:40:29,040
Speaker 1: right word to use, uh, disputitious, ceremonial. Let's start with

801
00:40:29,120 --> 00:40:32,000
Speaker 1: short seller all right. I'm a big fan of short sellers.

802
00:40:32,360 --> 00:40:34,760
Speaker 1: I think they've done a great job rooting out fraud

803
00:40:34,800 --> 00:40:37,160
Speaker 1: over the years. One of the first podcast we did

804
00:40:37,200 --> 00:40:41,880
Speaker 1: was with Jim Chanos, who tells unbelievable stories about, you know,

805
00:40:42,000 --> 00:40:47,840
Speaker 1: working his way through balance sheets of this kid and

806
00:40:48,040 --> 00:40:50,239
Speaker 1: Run is a perfect yeah and Run I mean, I

807
00:40:50,239 --> 00:40:52,120
Speaker 1: mean I I did end Run the smartest guys in

808
00:40:52,120 --> 00:40:54,880
Speaker 1: the room the movie right, Um, But prior to that,

809
00:40:54,960 --> 00:40:57,200
Speaker 1: the broadcast dot com days, I remember sitting there with

810
00:40:57,320 --> 00:41:00,759
Speaker 1: en Ron and them trying to sell me on bandwidth plays,

811
00:41:00,800 --> 00:41:03,120
Speaker 1: you know, and I'm like, how the hell are you

812
00:41:03,120 --> 00:41:04,719
Speaker 1: going to transport band with and you know, how you're

813
00:41:04,719 --> 00:41:07,120
Speaker 1: going to create an efficient market and delving into them

814
00:41:07,160 --> 00:41:09,959
Speaker 1: and think it was crazy. But in any events, guys

815
00:41:10,000 --> 00:41:11,879
Speaker 1: in the room, how you're not as smart as them?

816
00:41:12,120 --> 00:41:16,799
Speaker 1: See if you were smart as them. I love short sellers.

817
00:41:16,840 --> 00:41:19,280
Speaker 1: I used to make a killing and selling selling short

818
00:41:19,600 --> 00:41:21,880
Speaker 1: because you know, you know back in the day when

819
00:41:21,920 --> 00:41:23,600
Speaker 1: I told you I was running this hedge hedge fund

820
00:41:23,960 --> 00:41:26,920
Speaker 1: um because I knew if equipment didn't work. If back

821
00:41:27,000 --> 00:41:30,200
Speaker 1: then Synoptics put out a router, you know, or a switch.

822
00:41:30,560 --> 00:41:32,759
Speaker 1: I knew because I had to install those things if

823
00:41:32,800 --> 00:41:34,560
Speaker 1: it didn't work, and if it was going to sell,

824
00:41:34,600 --> 00:41:36,799
Speaker 1: because I had to sell them. And so I would

825
00:41:37,120 --> 00:41:40,640
Speaker 1: short sell, you know, just by nature of understanding the

826
00:41:40,680 --> 00:41:42,959
Speaker 1: industry better than most people. And that's why I would

827
00:41:42,960 --> 00:41:44,799
Speaker 1: have all these hedge fund guys, you know, get in

828
00:41:44,840 --> 00:41:47,640
Speaker 1: touch with me. So I've always been a huge fan.

829
00:41:47,680 --> 00:41:49,560
Speaker 1: And then when we got to broadcast dot com and

830
00:41:49,560 --> 00:41:52,399
Speaker 1: it went public, Um, you know, at that point in time,

831
00:41:52,440 --> 00:41:55,239
Speaker 1: we had the largest one day jump in for a

832
00:41:55,280 --> 00:41:56,960
Speaker 1: stock of an I p O in the history of

833
00:41:56,960 --> 00:42:01,080
Speaker 1: the stock market. So there was a huge short position obvious. Um,

834
00:42:01,120 --> 00:42:03,880
Speaker 1: everybody's covering well, not even because it was an I

835
00:42:03,960 --> 00:42:06,160
Speaker 1: p O. Um, yeah, you're not. Even to this day,

836
00:42:06,200 --> 00:42:07,840
Speaker 1: you're not. So the I p O is the biggest

837
00:42:07,840 --> 00:42:10,160
Speaker 1: one day. But after that, the day you were allowed

838
00:42:10,160 --> 00:42:12,680
Speaker 1: to short, everybody short at every shot. I'm sure they

839
00:42:12,680 --> 00:42:14,680
Speaker 1: can get And people said, aren't you mad at short

840
00:42:14,680 --> 00:42:16,400
Speaker 1: sellers are short in your stock? I'm like, are you

841
00:42:16,520 --> 00:42:19,080
Speaker 1: kidding me? I love short sellers because if my company

842
00:42:19,120 --> 00:42:21,440
Speaker 1: is going to do well, all they're doing is creating,

843
00:42:21,680 --> 00:42:24,040
Speaker 1: you know, pin up demand for this is natural floor.

844
00:42:24,080 --> 00:42:27,320
Speaker 1: The short sellers who actually stopped the collapse by covering,

845
00:42:27,480 --> 00:42:29,080
Speaker 1: because they have to cover if you do well. Now,

846
00:42:29,120 --> 00:42:31,560
Speaker 1: if you're a fraud or your company's horrible, you deserve

847
00:42:31,600 --> 00:42:33,440
Speaker 1: what you get and your stocks going to zero at

848
00:42:33,440 --> 00:42:35,920
Speaker 1: some point. Anyways, it doesn't matter what the short sellers do.

849
00:42:36,120 --> 00:42:39,040
Speaker 1: So I don't know if anyone's ever asked you this

850
00:42:39,160 --> 00:42:42,719
Speaker 1: question quite this way, but when you sold broadcast dot

851
00:42:42,800 --> 00:42:45,680
Speaker 1: Com to Yahoo, we you were aware that we were

852
00:42:45,680 --> 00:42:47,880
Speaker 1: in the midst of a bubble or was it? No,

853
00:42:48,120 --> 00:42:50,200
Speaker 1: this is just a whole no, no, no, like this

854
00:42:50,280 --> 00:42:52,920
Speaker 1: is ringing the bell. No. I mean go back and

855
00:42:52,960 --> 00:42:55,880
Speaker 1: read the articles from back then. So two things. One one,

856
00:42:55,920 --> 00:42:58,439
Speaker 1: I didn't sell for cash, right, So it wasn't like, yeah,

857
00:42:58,480 --> 00:43:02,120
Speaker 1: Yahoo stock you have to remember, was it was on fire,

858
00:43:02,360 --> 00:43:05,239
Speaker 1: right and there their their market cap was higher than

859
00:43:05,239 --> 00:43:08,360
Speaker 1: it is today, you know, fifteen years ago, much higher.

860
00:43:08,360 --> 00:43:10,560
Speaker 1: I mean it was like in a hundreds of billions, right,

861
00:43:10,680 --> 00:43:13,160
Speaker 1: and so for us to take three d I think

862
00:43:13,200 --> 00:43:15,160
Speaker 1: it was we got twenty eight million shares of stock

863
00:43:15,480 --> 00:43:18,360
Speaker 1: at three fifty dollars a share or something, I remember exactly.

864
00:43:18,640 --> 00:43:21,120
Speaker 1: So when I when I hedged, and it was called

865
00:43:21,160 --> 00:43:23,080
Speaker 1: one of the top ten trades of all time by

866
00:43:23,360 --> 00:43:26,120
Speaker 1: whatever Magazine's a pretty damn good trade. But when I

867
00:43:26,120 --> 00:43:28,600
Speaker 1: had what was what was the average price around then?

868
00:43:30,719 --> 00:43:33,600
Speaker 1: I don't remember my hundreds low two hundreds. Actually, when

869
00:43:33,600 --> 00:43:35,359
Speaker 1: I started to hedge, the price kept on going up,

870
00:43:35,680 --> 00:43:37,719
Speaker 1: and I had told everybody that I had hedged it,

871
00:43:38,120 --> 00:43:41,959
Speaker 1: and um, there there's a clip from David Faber on

872
00:43:41,960 --> 00:43:45,439
Speaker 1: on CNBC where he says, don't you feel stupid now

873
00:43:45,480 --> 00:43:47,759
Speaker 1: that you've hedged this? And yeah, who's gone up another

874
00:43:47,800 --> 00:43:51,640
Speaker 1: hundred dollars. I just made a billion dollars. I said,

875
00:43:51,640 --> 00:43:53,560
Speaker 1: it's hard to feel really stupid flying out in my

876
00:43:53,600 --> 00:43:58,000
Speaker 1: G five. Right, But back to why right? So so that,

877
00:43:58,080 --> 00:44:01,240
Speaker 1: by the way, that's a full an attitude of using

878
00:44:01,680 --> 00:44:05,240
Speaker 1: money as a measuring stick instead of thinking of money

879
00:44:05,320 --> 00:44:09,120
Speaker 1: as a tool to be deployed for other purpose. Would

880
00:44:09,120 --> 00:44:13,080
Speaker 1: you pay for the Mavericks to a five had you

881
00:44:13,160 --> 00:44:16,320
Speaker 1: not hedged, you would have lost that window. You're not enable.

882
00:44:16,400 --> 00:44:18,680
Speaker 1: It was funny back then the stock price of Yahoo

883
00:44:18,719 --> 00:44:20,960
Speaker 1: would go up thirty dollars in a day, and I

884
00:44:21,000 --> 00:44:22,560
Speaker 1: was like, I just paid for the Mavericks in one

885
00:44:22,600 --> 00:44:25,080
Speaker 1: But I just paid for my plane. But you asked,

886
00:44:25,280 --> 00:44:27,480
Speaker 1: what was I thinking. You know, I've been in this

887
00:44:27,520 --> 00:44:29,560
Speaker 1: business a long time, and so in the eighties I

888
00:44:29,600 --> 00:44:32,239
Speaker 1: saw the PC stocks go straight up, straight down. Then

889
00:44:32,280 --> 00:44:35,200
Speaker 1: I saw the stock software stocks go straight up, straight down.

890
00:44:35,360 --> 00:44:37,640
Speaker 1: Then I saw the local area networking stocks go straight

891
00:44:37,719 --> 00:44:40,359
Speaker 1: up and straight down. These Hey there's a pattern there. Yeah,

892
00:44:40,680 --> 00:44:42,720
Speaker 1: Why did I think that it would be any different

893
00:44:42,840 --> 00:44:45,640
Speaker 1: this time? Because there was always a hot technology area

894
00:44:45,760 --> 00:44:47,719
Speaker 1: and this was Internet software and that was just a

895
00:44:47,719 --> 00:44:49,319
Speaker 1: matter of time. But it's just a matter of time

896
00:44:49,360 --> 00:44:52,160
Speaker 1: for Internet to get with And your job isn't top

897
00:44:52,239 --> 00:44:54,839
Speaker 1: tick the market on your exit. Your job is to say,

898
00:44:55,000 --> 00:44:56,759
Speaker 1: if I can lock in a billion dollars, I could

899
00:44:56,760 --> 00:44:58,480
Speaker 1: do a lot. Look to this day, I stay headed.

900
00:44:58,520 --> 00:45:01,080
Speaker 1: So I use a devolt all hedge type thing that

901
00:45:01,280 --> 00:45:04,359
Speaker 1: Credit Squeeze put together for me. That as so I've

902
00:45:04,360 --> 00:45:07,360
Speaker 1: actually made money as the market went down. Took it

903
00:45:07,400 --> 00:45:09,520
Speaker 1: off after I got to a certain level, and you know,

904
00:45:09,560 --> 00:45:11,279
Speaker 1: hopefully the market will keep on going up and then

905
00:45:11,360 --> 00:45:13,040
Speaker 1: and if it goes up much higher, I'll put it

906
00:45:13,040 --> 00:45:15,520
Speaker 1: back on again. So you're always running with insurance. I'm

907
00:45:15,520 --> 00:45:18,000
Speaker 1: always running the hedge because the market never makes sense

908
00:45:18,080 --> 00:45:23,880
Speaker 1: until after the fact. Everybody's got perfect vision, you know exactly,

909
00:45:23,920 --> 00:45:26,200
Speaker 1: so you know, it used to be okay, interest rates

910
00:45:26,239 --> 00:45:28,000
Speaker 1: are going up, the market will go down something, right,

911
00:45:28,440 --> 00:45:30,520
Speaker 1: you know, oil does this, the market will do that.

912
00:45:30,640 --> 00:45:33,719
Speaker 1: And there were all these correlations that everybody understood. Now

913
00:45:33,760 --> 00:45:37,319
Speaker 1: the market has gotten so complex that nobody really understands.

914
00:45:37,520 --> 00:45:40,680
Speaker 1: It's almost like I've had my biggest trades up until

915
00:45:40,719 --> 00:45:44,440
Speaker 1: recently in currencies, because currencies are more transparent than stocks,

916
00:45:45,239 --> 00:45:48,840
Speaker 1: the very liquid, the liquids, amounts, trade, trade everything. But

917
00:45:49,000 --> 00:45:51,560
Speaker 1: even more importantly, you've got the central banks telling you

918
00:45:51,600 --> 00:45:55,400
Speaker 1: exactly what they're going to do, right, there's not and

919
00:45:55,440 --> 00:45:57,960
Speaker 1: you know exactly Now they get heavy right with everybody,

920
00:45:58,000 --> 00:46:00,239
Speaker 1: and then you've got you know, when everybody comes out. Now,

921
00:46:00,280 --> 00:46:02,759
Speaker 1: in hindsight, it's easy to see. And one of the

922
00:46:02,800 --> 00:46:04,440
Speaker 1: reasons I put on the hedge because I thought this

923
00:46:04,480 --> 00:46:07,640
Speaker 1: could happen. I just didn't know when, because everything now

924
00:46:07,719 --> 00:46:12,320
Speaker 1: was so interrelated. Once. When when people start piling into

925
00:46:12,360 --> 00:46:16,000
Speaker 1: the same trades that everybody's doing, right, whether it's currencies

926
00:46:16,000 --> 00:46:20,839
Speaker 1: on one hand, it's a a note, treasuries on another hand,

927
00:46:21,040 --> 00:46:23,480
Speaker 1: then you've got all the momentum stops to grow pros

928
00:46:23,560 --> 00:46:26,560
Speaker 1: and Netflix is you know, um, who else just has

929
00:46:26,600 --> 00:46:29,640
Speaker 1: blown up? Right, all these stocks, everybody dumps in and

930
00:46:29,719 --> 00:46:34,040
Speaker 1: with margin at one or whatever it is. Yeah, and

931
00:46:34,280 --> 00:46:36,120
Speaker 1: you're thinking, well, the dividends higher, so I can go

932
00:46:36,160 --> 00:46:39,799
Speaker 1: into Apple. But that all works until something in the

933
00:46:39,840 --> 00:46:45,080
Speaker 1: whole series takes you down and it delivers everything right,

934
00:46:45,480 --> 00:46:48,120
Speaker 1: because then a hedge fund gets delevered. Then when one

935
00:46:48,160 --> 00:46:50,239
Speaker 1: hedge fund gets levered, the stock goes down. Someone else

936
00:46:50,280 --> 00:46:53,279
Speaker 1: wants to meet the benchmark. Then the day trader gets

937
00:46:53,280 --> 00:46:56,000
Speaker 1: pulled out. And even though that's a smaller percentage than people,

938
00:46:56,160 --> 00:46:58,040
Speaker 1: the hedge funds want to freak out because they're gonna

939
00:46:58,080 --> 00:47:00,200
Speaker 1: lose all their upside for the year, and so they're

940
00:47:00,200 --> 00:47:02,800
Speaker 1: getting called in, right, and they're getting called in because

941
00:47:02,800 --> 00:47:04,880
Speaker 1: of their margins because they were levered up. And so

942
00:47:04,920 --> 00:47:07,760
Speaker 1: now there's this cascade until you get to the bottom

943
00:47:07,800 --> 00:47:10,040
Speaker 1: and you never know really what that is, and then

944
00:47:10,080 --> 00:47:12,840
Speaker 1: people with that start creeping back in to buy again.

945
00:47:13,000 --> 00:47:15,560
Speaker 1: So you mentioned complexity in the markets. Let's talk a

946
00:47:15,600 --> 00:47:18,200
Speaker 1: little bit about high frequency trading. I know you're a

947
00:47:18,239 --> 00:47:20,799
Speaker 1: big fan, you're an algorithmic trading. You have a whole

948
00:47:20,920 --> 00:47:25,200
Speaker 1: roll of servers set So here's my complaint about h

949
00:47:25,280 --> 00:47:28,279
Speaker 1: f T. And I'm curious because I found doing a

950
00:47:28,280 --> 00:47:30,719
Speaker 1: little research on you over the past few weeks. I

951
00:47:30,719 --> 00:47:32,879
Speaker 1: found you and I are pretty sympatico about a lot

952
00:47:32,920 --> 00:47:35,360
Speaker 1: of a lot of things. We disagree about a handful

953
00:47:35,360 --> 00:47:38,320
Speaker 1: of things, but we'll get to those. So my problem

954
00:47:38,320 --> 00:47:41,719
Speaker 1: with h f T is simply, this trading is a

955
00:47:41,880 --> 00:47:45,200
Speaker 1: zero sum game. And if someone's jumping in in front

956
00:47:45,200 --> 00:47:50,080
Speaker 1: of Grandma's mutual funds trading whatever the h f T

957
00:47:50,280 --> 00:47:52,720
Speaker 1: s are making, that's coming right out of Grandma's retirement

958
00:47:53,120 --> 00:47:56,560
Speaker 1: in terms of transaction costs. Absolutely, it's just it's black

959
00:47:56,600 --> 00:47:58,920
Speaker 1: and white. There's no and I agree with that and that,

960
00:47:59,040 --> 00:48:01,719
Speaker 1: but that's less of an issue to me. Um. What's

961
00:48:01,719 --> 00:48:03,040
Speaker 1: more of an issue is there's no such thing as

962
00:48:03,080 --> 00:48:06,600
Speaker 1: bug free software, So you think this is adding instability

963
00:48:06,600 --> 00:48:11,560
Speaker 1: and danger freezes. We've seen the flash clearly, the flash crash,

964
00:48:11,600 --> 00:48:14,760
Speaker 1: and we saw what effectively looked like a bond flash

965
00:48:15,280 --> 00:48:18,120
Speaker 1: right like in an hour, not even in about ten minutes.

966
00:48:18,160 --> 00:48:21,680
Speaker 1: The ten year went from two three to one nine.

967
00:48:21,800 --> 00:48:24,719
Speaker 1: Back up that that doesn't make a whole lot. We

968
00:48:24,800 --> 00:48:26,839
Speaker 1: used to say that that was a fat finger, but

969
00:48:28,400 --> 00:48:31,719
Speaker 1: that was purely computers are computer computer. So did you

970
00:48:31,760 --> 00:48:35,680
Speaker 1: ever see the movie UM, what War not Star Wars

971
00:48:35,760 --> 00:48:37,799
Speaker 1: not um? Where do you want to play a game

972
00:48:37,840 --> 00:48:41,359
Speaker 1: of thermonuclear war with Matthew? Four games? Right? And it

973
00:48:41,440 --> 00:48:43,359
Speaker 1: was like you wanted. It was like two machines talking

974
00:48:43,360 --> 00:48:45,640
Speaker 1: to each other in a simulation, right, But then the

975
00:48:45,680 --> 00:48:48,080
Speaker 1: simulation turned real and then they had to go back

976
00:48:48,120 --> 00:48:49,840
Speaker 1: door and say, hey, Joshua, you want to play a

977
00:48:49,840 --> 00:48:52,840
Speaker 1: game of chess? Right? High frequency trading is no different.

978
00:48:53,080 --> 00:48:58,520
Speaker 1: It's an ongoing um interaction between algorithms from competing sources.

979
00:48:59,000 --> 00:49:01,399
Speaker 1: No one is giving any thing up to anybody else

980
00:49:01,440 --> 00:49:03,600
Speaker 1: and saying I'll share the pie. They're all trying to

981
00:49:03,640 --> 00:49:07,479
Speaker 1: be smarter. Literally, if you wanted to destabilize, now they've

982
00:49:07,680 --> 00:49:10,960
Speaker 1: with when they put on the what you call it

983
00:49:11,080 --> 00:49:15,160
Speaker 1: the not the thresholds on circuit breakers in that's that

984
00:49:15,160 --> 00:49:17,960
Speaker 1: that made it more protective. But still, if you want

985
00:49:17,960 --> 00:49:21,919
Speaker 1: to destabilize, you start with currencies. And you know, let's

986
00:49:21,920 --> 00:49:25,920
Speaker 1: just say I'm a I'm a nation, um an enemy nation, right,

987
00:49:26,280 --> 00:49:29,359
Speaker 1: and I just give one company five billion dollars, another

988
00:49:29,400 --> 00:49:31,719
Speaker 1: company five billion, another five billion. Let's just let them

989
00:49:31,719 --> 00:49:34,719
Speaker 1: trade normally for eighteen months. Let's say, so everybody's trust

990
00:49:34,800 --> 00:49:36,720
Speaker 1: that there's just normal, and then all of a sudden,

991
00:49:36,760 --> 00:49:39,640
Speaker 1: I just started hitting one thing that I know is

992
00:49:39,640 --> 00:49:42,040
Speaker 1: going to impact and correlate to another because I've looked

993
00:49:42,080 --> 00:49:43,879
Speaker 1: at the day and here's the corre And then when

994
00:49:43,880 --> 00:49:45,560
Speaker 1: that gets hit, I started hitting that one. And then

995
00:49:45,600 --> 00:49:50,640
Speaker 1: when that gets hit, I start selling that right, not

996
00:49:50,640 --> 00:49:54,719
Speaker 1: even necessarily but individual stocks, but currencies or whatever else, treasuries,

997
00:49:54,760 --> 00:49:56,839
Speaker 1: everything else where there's not circuit breakers. You know. One

998
00:49:56,840 --> 00:50:00,440
Speaker 1: of the most interesting examples of how high frequence trading

999
00:50:00,480 --> 00:50:05,240
Speaker 1: algorithms manifest themselves. People have used examples of some odd

1000
00:50:05,239 --> 00:50:09,200
Speaker 1: book for sale on Amazon, and there'll be two algorithms

1001
00:50:09,239 --> 00:50:12,520
Speaker 1: offering to sell it, and they'll get into a war

1002
00:50:12,600 --> 00:50:16,440
Speaker 1: game situation where the price of this nonsensical book that

1003
00:50:16,560 --> 00:50:19,479
Speaker 1: nobody cares about, nobody wants to buy. Suddenly it's two

1004
00:50:19,520 --> 00:50:23,239
Speaker 1: thousand dollars for sale used on Amazon. Because somehow these

1005
00:50:23,280 --> 00:50:25,719
Speaker 1: algoris got into a loop with each other and they

1006
00:50:25,800 --> 00:50:30,720
Speaker 1: just keep raising the price on each other, and suddenly

1007
00:50:31,040 --> 00:50:33,800
Speaker 1: a book nobody's buying, nobody cares about his three thousand dollars.

1008
00:50:33,840 --> 00:50:36,920
Speaker 1: It's it's insane. You're in favor of a tobin tax,

1009
00:50:37,040 --> 00:50:41,120
Speaker 1: a transactional tax. So let's call it this way. If

1010
00:50:41,160 --> 00:50:43,800
Speaker 1: if your quote isn't gonna exist for more than a second,

1011
00:50:44,800 --> 00:50:50,080
Speaker 1: you pay a penny or so. And what that does

1012
00:50:50,160 --> 00:50:52,120
Speaker 1: is that gets rid of the spoofing, that gets rid

1013
00:50:52,120 --> 00:50:54,960
Speaker 1: of all this or even nonsensical stuff that has nothing

1014
00:50:55,000 --> 00:50:58,040
Speaker 1: what's toever to do with. Look, there's there's a battle

1015
00:50:58,080 --> 00:51:01,000
Speaker 1: between people who think they provide a quick city and

1016
00:51:01,200 --> 00:51:04,680
Speaker 1: people who like that because they're traders. And then there's investors.

1017
00:51:05,160 --> 00:51:08,799
Speaker 1: This market is no longer a platform for investing. We

1018
00:51:08,800 --> 00:51:12,400
Speaker 1: don't talk about investors anymore. They're there, they're the puppets

1019
00:51:12,520 --> 00:51:15,040
Speaker 1: right there. Yeah, they're the stock puppets that sit out there,

1020
00:51:15,080 --> 00:51:17,759
Speaker 1: the muppets that just get taken advantage of. Or maybe

1021
00:51:17,760 --> 00:51:19,120
Speaker 1: they put their money in their four oh one k

1022
00:51:19,560 --> 00:51:21,520
Speaker 1: and they hope that that those big guys don't. The

1023
00:51:21,560 --> 00:51:24,560
Speaker 1: reality is this, this is a platform for hackers. Who's

1024
00:51:24,600 --> 00:51:26,880
Speaker 1: got the best technology, who's got the best software, to

1025
00:51:26,920 --> 00:51:29,120
Speaker 1: try to make money. We are long gone from the

1026
00:51:29,200 --> 00:51:31,960
Speaker 1: days where you said, you know what, I like Netflix,

1027
00:51:32,080 --> 00:51:34,319
Speaker 1: you know I like Apple. I could buy this and

1028
00:51:34,320 --> 00:51:37,080
Speaker 1: put it away for a few worry about where the schlubs,

1029
00:51:37,120 --> 00:51:39,040
Speaker 1: the people who do that are the slubs. So let

1030
00:51:39,040 --> 00:51:41,960
Speaker 1: me give you the two counter arguments, which these aren't

1031
00:51:42,000 --> 00:51:45,360
Speaker 1: coming from me. I'm quoting other people. But there's something

1032
00:51:45,400 --> 00:51:48,719
Speaker 1: there that I find kind of interesting. First sitting in

1033
00:51:48,760 --> 00:51:51,200
Speaker 1: your seat a few weeks ago was Jack Brennan. He's

1034
00:51:51,239 --> 00:51:54,760
Speaker 1: the chairman of Vanguard, little shop running three trillion dollars,

1035
00:51:54,800 --> 00:51:58,800
Speaker 1: and he said, we love anything that reduces our costs

1036
00:51:59,360 --> 00:52:03,000
Speaker 1: of execute shin and we're buyers and holders, were long

1037
00:52:03,120 --> 00:52:06,440
Speaker 1: term investors, and there's a big advantage for us to

1038
00:52:06,480 --> 00:52:10,640
Speaker 1: be able to go out and you use these algorithms

1039
00:52:10,960 --> 00:52:14,520
Speaker 1: to find the best price for Vantage Sniper, like Vanguard is.

1040
00:52:14,920 --> 00:52:18,400
Speaker 1: There's nothing wrong with that. It helps you, right, but

1041
00:52:18,719 --> 00:52:21,040
Speaker 1: it's still all you're doing is saying, you know what,

1042
00:52:21,239 --> 00:52:24,919
Speaker 1: the market is such a mess. I'm picking up yeah, right,

1043
00:52:24,960 --> 00:52:29,640
Speaker 1: So the grocery store truck crashes on the street and

1044
00:52:29,680 --> 00:52:32,000
Speaker 1: I'm picking up the eggs, you know, at a discount,

1045
00:52:32,360 --> 00:52:34,640
Speaker 1: you know, And so I don't I don't blame him

1046
00:52:34,640 --> 00:52:36,799
Speaker 1: for doing it, because that's his job. That's what I'm

1047
00:52:36,800 --> 00:52:40,200
Speaker 1: supposed to do. But all he's doing is trying to

1048
00:52:40,200 --> 00:52:42,399
Speaker 1: make a sales pitch for Vanguard, which is cool because

1049
00:52:42,400 --> 00:52:43,759
Speaker 1: they're the low cost. And I tell people, if you're

1050
00:52:43,760 --> 00:52:46,279
Speaker 1: gonna buy SPX index by a Vanguard, they're great, They're great.

1051
00:52:46,480 --> 00:52:48,360
Speaker 1: But at the same time, if you want to be

1052
00:52:48,400 --> 00:52:50,960
Speaker 1: an investor and we want people to invest in the market,

1053
00:52:51,120 --> 00:52:52,839
Speaker 1: and we want people to look, we want to start

1054
00:52:52,840 --> 00:52:54,600
Speaker 1: building an IPO and we want to start building an

1055
00:52:54,600 --> 00:52:57,680
Speaker 1: I p O market, there's you want companies to come out.

1056
00:52:57,760 --> 00:53:01,240
Speaker 1: The whole idea of the original cont of a market

1057
00:53:01,480 --> 00:53:04,000
Speaker 1: is to create capital for companies to grow, and that

1058
00:53:04,160 --> 00:53:07,480
Speaker 1: is economy that's good for everybody. Does that concept is

1059
00:53:07,520 --> 00:53:10,080
Speaker 1: so far gone right, So in terms of a Tobin tax,

1060
00:53:10,320 --> 00:53:12,200
Speaker 1: what is it that's going to make people have to

1061
00:53:12,280 --> 00:53:17,360
Speaker 1: keep their their stocks there? So you have Yeah, so

1062
00:53:17,400 --> 00:53:19,840
Speaker 1: you can't just turn it quickly. You have to invest

1063
00:53:19,920 --> 00:53:23,480
Speaker 1: in the real company. Now that's you know, your reputation is, hey,

1064
00:53:23,520 --> 00:53:28,040
Speaker 1: here's a guy who's a libertarian, readsign ran every five years,

1065
00:53:28,080 --> 00:53:30,400
Speaker 1: blah blah. But some of the stuff you talk about

1066
00:53:30,520 --> 00:53:33,880
Speaker 1: is decidedly I'm going my own path, and I believe

1067
00:53:33,920 --> 00:53:37,160
Speaker 1: that sometimes that's the right I guess I guess it

1068
00:53:37,239 --> 00:53:40,760
Speaker 1: is because so that's exactly right. So I was impressed

1069
00:53:40,800 --> 00:53:43,799
Speaker 1: with the Tobin tax because I wasn't expected. It's a

1070
00:53:43,920 --> 00:53:47,839
Speaker 1: perfectly valid the problem, right, The whole key is this

1071
00:53:47,880 --> 00:53:51,160
Speaker 1: has got to be a market of investors to create

1072
00:53:51,239 --> 00:53:55,080
Speaker 1: capital for companies to grow. We're so far past and

1073
00:53:55,080 --> 00:53:58,279
Speaker 1: that's what it's. That's what the original design of markets are.

1074
00:53:58,920 --> 00:54:01,520
Speaker 1: It's a place where cap and entrepreneurs can meet and

1075
00:54:01,560 --> 00:54:04,480
Speaker 1: we build them far away from that. How many times

1076
00:54:04,480 --> 00:54:07,120
Speaker 1: do you see capital being invested in companies that needed

1077
00:54:07,160 --> 00:54:11,120
Speaker 1: to grow over the last month. You know, if Wall

1078
00:54:11,160 --> 00:54:14,080
Speaker 1: Street was actually doing that, shows like Shark Tank, there

1079
00:54:14,080 --> 00:54:16,279
Speaker 1: wouldn't be a need for them. Well possibly, that's okay,

1080
00:54:16,280 --> 00:54:19,120
Speaker 1: I'm fine with that, right, but but that just shows

1081
00:54:19,160 --> 00:54:23,560
Speaker 1: you Baba didn't need capital. They didn't need twenty billion dollars. Right.

1082
00:54:23,920 --> 00:54:27,239
Speaker 1: You know, there's a couple on the margin million dollar

1083
00:54:27,280 --> 00:54:29,759
Speaker 1: i p o s, But there's how many there that?

1084
00:54:30,160 --> 00:54:32,799
Speaker 1: I read um recently that the number of i p

1085
00:54:32,920 --> 00:54:37,120
Speaker 1: o s from ninet so now that raised under fifty

1086
00:54:37,160 --> 00:54:41,000
Speaker 1: million dollars has dropped. Isn't that true? Though? The entire

1087
00:54:41,239 --> 00:54:47,560
Speaker 1: middle merchant merchant banking market done has disappeared because all

1088
00:54:47,560 --> 00:54:51,560
Speaker 1: the companies that were mid sized companies, they've emerged. Question, Okay,

1089
00:54:51,600 --> 00:54:53,600
Speaker 1: so what's happened right, So this is one of the

1090
00:54:53,600 --> 00:54:57,480
Speaker 1: things that's killing the economy too. So I started company

1091
00:54:57,560 --> 00:54:59,560
Speaker 1: and back when it used to be, hey, hopefully we

1092
00:54:59,600 --> 00:55:01,680
Speaker 1: can go ublic. I get some liquidity. And this also

1093
00:55:01,680 --> 00:55:04,680
Speaker 1: contributes to income equality, like Janet Yellen was talking about.

1094
00:55:04,960 --> 00:55:07,200
Speaker 1: So back in the day, there were going to be

1095
00:55:07,440 --> 00:55:10,600
Speaker 1: two D four hundred companies a year. Who has they

1096
00:55:10,640 --> 00:55:13,839
Speaker 1: as they grew their companies go public could be you know,

1097
00:55:14,160 --> 00:55:17,279
Speaker 1: UM on the small OTC whatever and raised ten million

1098
00:55:17,320 --> 00:55:20,719
Speaker 1: dollars twenty million dollars. That gave them capital to have

1099
00:55:20,760 --> 00:55:23,440
Speaker 1: a chance to grow. Now that capital was gone. So

1100
00:55:23,520 --> 00:55:25,680
Speaker 1: they go out there and they get VC angel money.

1101
00:55:25,960 --> 00:55:29,239
Speaker 1: And then if they're but that's okay because you would

1102
00:55:29,239 --> 00:55:31,200
Speaker 1: give up an equity and I p O two. But

1103
00:55:31,320 --> 00:55:34,839
Speaker 1: if you don't hit those initial initial milestones right you've got,

1104
00:55:34,920 --> 00:55:36,640
Speaker 1: you're gonna have a hard time getting a Series A.

1105
00:55:36,719 --> 00:55:38,640
Speaker 1: But let's just say for the sake of example, you've

1106
00:55:38,640 --> 00:55:41,200
Speaker 1: gotten to a Series A, right, and so you've shown

1107
00:55:41,200 --> 00:55:43,000
Speaker 1: some success and that's why people have given you a

1108
00:55:43,000 --> 00:55:46,279
Speaker 1: Series A round of investing. Right, So you're growing um

1109
00:55:46,360 --> 00:55:49,000
Speaker 1: startup company, you've been around two years. Just got what

1110
00:55:49,080 --> 00:55:52,359
Speaker 1: happens next? In the past, if you know, you did

1111
00:55:52,400 --> 00:55:55,399
Speaker 1: fifty million in sales, seventy five million sales. We're going

1112
00:55:55,440 --> 00:55:58,920
Speaker 1: to be profitable, marginally profitable. You go raised million dollars

1113
00:55:58,920 --> 00:56:01,120
Speaker 1: in an I p O. Now, if you have that

1114
00:56:01,160 --> 00:56:03,440
Speaker 1: type of future, you get bought by the company you

1115
00:56:03,480 --> 00:56:07,319
Speaker 1: want to compete with, which inherently means there's less competition,

1116
00:56:07,600 --> 00:56:10,200
Speaker 1: which inherently means instead of that company growing to be

1117
00:56:10,239 --> 00:56:12,760
Speaker 1: a competitor with Google, or just using as an example

1118
00:56:12,840 --> 00:56:17,280
Speaker 1: where Netflix, that company's bought, they're absorbed their pretty pretty early.

1119
00:56:17,960 --> 00:56:23,719
Speaker 1: Fewer jobs, right, less competition, right, less less investment in

1120
00:56:23,840 --> 00:56:26,080
Speaker 1: up and coming in companies. You know how hard it

1121
00:56:26,160 --> 00:56:28,520
Speaker 1: is for an average investor to invest in up and

1122
00:56:28,560 --> 00:56:32,960
Speaker 1: coming companies that are public, that have any liquidity. It's impossible.

1123
00:56:33,520 --> 00:56:36,239
Speaker 1: And so because of all that, the economy hasn't grown

1124
00:56:36,239 --> 00:56:41,120
Speaker 1: nearly as quickly because there aren't back You know, we

1125
00:56:41,120 --> 00:56:44,160
Speaker 1: we were doing our best to be profitable, but we

1126
00:56:44,239 --> 00:56:46,120
Speaker 1: knew that we could if we showed any kind of

1127
00:56:48,200 --> 00:56:50,680
Speaker 1: chance public Right, all right, So I'm gonna be benevolent

1128
00:56:50,680 --> 00:56:54,799
Speaker 1: dictator and I'm gonna point you, SEC chair what does

1129
00:56:54,920 --> 00:56:57,800
Speaker 1: Mark Cuban SEC chairman do? How do you change the

1130
00:56:57,920 --> 00:57:05,040
Speaker 1: rules to benefit the investors really really easy that it

1131
00:57:05,120 --> 00:57:07,720
Speaker 1: is a hangar. But first of all, the SEC destroyed

1132
00:57:07,760 --> 00:57:10,839
Speaker 1: the I P. O business because they people don't want

1133
00:57:10,840 --> 00:57:13,759
Speaker 1: to go public today at all because of all the

1134
00:57:13,800 --> 00:57:19,120
Speaker 1: administrivia right, all the accounting, and they have to do

1135
00:57:19,200 --> 00:57:21,920
Speaker 1: that now because the SEC was so asleep at the wheel.

1136
00:57:22,320 --> 00:57:24,400
Speaker 1: Congress felt like they had to create a thousand new

1137
00:57:24,480 --> 00:57:27,520
Speaker 1: rules right in order to be able to protect companies

1138
00:57:27,560 --> 00:57:30,240
Speaker 1: because the SEC can't protect them. The SEC still can't

1139
00:57:30,240 --> 00:57:32,800
Speaker 1: protect them. They couldn't then and they can't now now.

1140
00:57:32,840 --> 00:57:35,720
Speaker 1: What's the problem. The first problem is the SEC is

1141
00:57:35,800 --> 00:57:38,840
Speaker 1: not about protecting investors. They could, They don't give a ship, right,

1142
00:57:39,200 --> 00:57:42,040
Speaker 1: because all they care about is how many how many

1143
00:57:42,120 --> 00:57:44,560
Speaker 1: cases are they going to bring so that more lawyers

1144
00:57:44,560 --> 00:57:46,680
Speaker 1: have experience so that they can go out and get

1145
00:57:46,760 --> 00:57:49,600
Speaker 1: jobs in the in the private sector. Right, these are

1146
00:57:49,600 --> 00:57:53,200
Speaker 1: all pretty straightforward. Inside of trading cases, there are not there.

1147
00:57:53,280 --> 00:57:55,120
Speaker 1: Some of them are so rediculous. But the point is,

1148
00:57:55,360 --> 00:57:58,680
Speaker 1: we know a couple that are totally mine aside, right,

1149
00:57:58,720 --> 00:58:00,120
Speaker 1: it's been a year. It was a year ago this

1150
00:58:00,160 --> 00:58:03,480
Speaker 1: week actually done right tossed out you have vindicated in

1151
00:58:04,400 --> 00:58:06,560
Speaker 1: but it wasn't even a toss up. It was. It

1152
00:58:06,600 --> 00:58:09,160
Speaker 1: was ridiculous. But okay, so let's go back to the SEC.

1153
00:58:10,360 --> 00:58:13,439
Speaker 1: You have no idea what insider trading is. Nobody does

1154
00:58:14,080 --> 00:58:17,800
Speaker 1: there If you if you trading on material non public information, no,

1155
00:58:17,920 --> 00:58:20,919
Speaker 1: not necessarily no. So you're saying that that black let

1156
00:58:21,040 --> 00:58:24,120
Speaker 1: law definition, that's that's not so. If you saw a

1157
00:58:24,160 --> 00:58:25,920
Speaker 1: guy get hit by a bus and you realize that

1158
00:58:25,960 --> 00:58:29,720
Speaker 1: was the CEO, that's material non public information hit by

1159
00:58:29,720 --> 00:58:31,600
Speaker 1: a bus. Because there's only six people who saw it, right,

1160
00:58:31,720 --> 00:58:35,280
Speaker 1: it was on public doesn't matter. It's if I'm going

1161
00:58:35,320 --> 00:58:40,160
Speaker 1: through the garbage can and I find sheets from a merger. Hey,

1162
00:58:40,200 --> 00:58:42,960
Speaker 1: this is garbage, this is in publican I'm cleaning up

1163
00:58:42,960 --> 00:58:46,640
Speaker 1: the law. Actually, there's been some ambiguous cases. I'll give

1164
00:58:46,640 --> 00:58:48,919
Speaker 1: you another example of the SEC in their stupidity. Guy

1165
00:58:49,080 --> 00:58:51,280
Speaker 1: was going to work at a at a railroad company,

1166
00:58:51,560 --> 00:58:54,000
Speaker 1: right go up driving the parking lot, and he saw

1167
00:58:54,040 --> 00:58:56,800
Speaker 1: all these limos and guys in suits getting out day

1168
00:58:56,800 --> 00:59:00,000
Speaker 1: after day, week after week a couple of weeks. Figures,

1169
00:59:00,320 --> 00:59:03,040
Speaker 1: maybe there's an acquisition going on. I'm gonna buy calls.

1170
00:59:03,960 --> 00:59:08,080
Speaker 1: Had no inside information whatsoever, which is in the public area.

1171
00:59:08,200 --> 00:59:11,040
Speaker 1: They brought inside a trading case against him. Because he

1172
00:59:11,080 --> 00:59:14,280
Speaker 1: works for the railroad. Did he win, Yeah, he won,

1173
00:59:14,360 --> 00:59:15,720
Speaker 1: but it cost him a lot of money, a lot

1174
00:59:15,760 --> 00:59:18,560
Speaker 1: of time, and a lot of embarrassment. To the point

1175
00:59:19,240 --> 00:59:21,120
Speaker 1: I'll give you if you go on Google and google

1176
00:59:21,160 --> 00:59:24,560
Speaker 1: mark Cuban sec video. Right. So I did this. I

1177
00:59:24,600 --> 00:59:27,840
Speaker 1: had a meeting with the CEO of a company public company,

1178
00:59:28,240 --> 00:59:31,520
Speaker 1: and we discussed everything but numbers, right, because he was

1179
00:59:31,560 --> 00:59:34,520
Speaker 1: interested in one of my companies. And so a month

1180
00:59:34,560 --> 00:59:36,880
Speaker 1: went by and we didn't discuss anything more. We never

1181
00:59:36,960 --> 00:59:40,000
Speaker 1: discussed any public never discussed his numbers at all, only

1182
00:59:40,000 --> 00:59:42,840
Speaker 1: discussed my company. And so I was like, I like

1183
00:59:42,920 --> 00:59:44,840
Speaker 1: this company. I wonder if I can buy stock? And

1184
00:59:44,960 --> 00:59:46,720
Speaker 1: I never ended up buying it. But I called the SEC,

1185
00:59:47,160 --> 00:59:49,960
Speaker 1: I said, SEC, I'm I told just what. I left

1186
00:59:49,960 --> 00:59:52,200
Speaker 1: a message. I was talking to them about selling them

1187
00:59:52,200 --> 00:59:55,080
Speaker 1: my company. Right, can I buy stock? So here's what

1188
00:59:55,080 --> 00:59:59,200
Speaker 1: They never disclosed anything about their numbers, nothing. Here's all

1189
00:59:59,240 --> 01:00:01,800
Speaker 1: my paperwork. But we never got to them. So I

1190
01:00:02,120 --> 01:00:04,320
Speaker 1: and I told him that, right, and so they called

1191
01:00:04,320 --> 01:00:06,360
Speaker 1: me back. I left us on a measures mark Cubans,

1192
01:00:06,360 --> 01:00:08,120
Speaker 1: so they knew exactly who it was. This is on

1193
01:00:08,200 --> 01:00:11,080
Speaker 1: my video. This is the video A little phone video, right,

1194
01:00:11,400 --> 01:00:13,600
Speaker 1: and they said you need to go to this page right,

1195
01:00:13,760 --> 01:00:15,800
Speaker 1: This will tell you to get you a response. So

1196
01:00:15,840 --> 01:00:18,120
Speaker 1: I go to the page on the website. It's a

1197
01:00:18,160 --> 01:00:22,520
Speaker 1: mother page from nineteen eighty saying you have to send

1198
01:00:22,560 --> 01:00:26,400
Speaker 1: your question in seven parts and mail it to us,

1199
01:00:26,600 --> 01:00:29,920
Speaker 1: and don't expect an answer anytime soon. That's how the

1200
01:00:30,080 --> 01:00:34,160
Speaker 1: SEC works. They have no interest in protecting UM investors.

1201
01:00:34,200 --> 01:00:37,400
Speaker 1: They have no interest in making the market a better

1202
01:00:37,440 --> 01:00:39,760
Speaker 1: place to trade and making it safer to trade. They

1203
01:00:39,760 --> 01:00:41,880
Speaker 1: have not And where they did, you do to change

1204
01:00:41,880 --> 01:00:44,000
Speaker 1: So here's the problem. So how you change it? You

1205
01:00:44,040 --> 01:00:47,760
Speaker 1: create bright line rules. She talked Mary jo no ambiguity,

1206
01:00:47,840 --> 01:00:51,280
Speaker 1: just this is allowed black and white, boom right. And

1207
01:00:51,320 --> 01:00:53,560
Speaker 1: then where there's things that happened that you aren't sure,

1208
01:00:53,600 --> 01:00:56,080
Speaker 1: then you can litigate those. But if you did that,

1209
01:00:56,920 --> 01:01:00,160
Speaker 1: you'd reduced the amount of litigation and nobody would have

1210
01:01:00,200 --> 01:01:02,479
Speaker 1: a job in the SEC. Inside or trading group would

1211
01:01:02,480 --> 01:01:06,760
Speaker 1: be smaller. Because look, they talked about bright Um. The

1212
01:01:06,800 --> 01:01:10,479
Speaker 1: broken window policy that she wanted to create. Mary Mary

1213
01:01:10,480 --> 01:01:12,600
Speaker 1: White said, we want this to be a broken window policy.

1214
01:01:12,720 --> 01:01:15,400
Speaker 1: Mayor Julie. See like back in the days of the Bronx,

1215
01:01:15,720 --> 01:01:17,800
Speaker 1: when you saw a broken windows you fix it because

1216
01:01:18,000 --> 01:01:21,320
Speaker 1: broken windows encouraged crime, exactly right, So they wanted to

1217
01:01:21,360 --> 01:01:23,240
Speaker 1: do the same thing with the SEC. She literally talked

1218
01:01:23,240 --> 01:01:25,080
Speaker 1: about it when she took the job right around the

1219
01:01:25,080 --> 01:01:27,280
Speaker 1: same time. I was going to trial for missus a

1220
01:01:27,360 --> 01:01:29,720
Speaker 1: year ago. A year year ago, Mary White. But the

1221
01:01:29,760 --> 01:01:31,760
Speaker 1: problem is if I walk up to a cop in

1222
01:01:31,760 --> 01:01:35,000
Speaker 1: Brooklyn and say, Mr policeman, if I throw a brick

1223
01:01:35,000 --> 01:01:37,440
Speaker 1: through this window, is that against the law. Of course,

1224
01:01:37,720 --> 01:01:39,920
Speaker 1: he's gonna tell you. If I go up Mary White

1225
01:01:40,080 --> 01:01:42,480
Speaker 1: or anybody at the SEC, if I see someone get

1226
01:01:42,560 --> 01:01:44,440
Speaker 1: hit by a bus and I want to know if

1227
01:01:44,440 --> 01:01:46,760
Speaker 1: I can trade on it, is that against the law

1228
01:01:46,840 --> 01:01:48,760
Speaker 1: or not. There's no place you can get an answer.

1229
01:01:49,600 --> 01:01:52,080
Speaker 1: Corporate council can say to you, corporate, if he's hit

1230
01:01:53,280 --> 01:01:57,120
Speaker 1: you could you could do it? Corporate council every of course. Okay,

1231
01:01:57,120 --> 01:01:59,560
Speaker 1: do you know any walk down the street in New

1232
01:01:59,640 --> 01:02:01,800
Speaker 1: York City and I walk up to somebody who we

1233
01:02:01,840 --> 01:02:06,520
Speaker 1: want to be an investor in the city. It's about still.

1234
01:02:06,560 --> 01:02:09,160
Speaker 1: You know, in most places people don't necessarily have counsel.

1235
01:02:09,160 --> 01:02:12,240
Speaker 1: It's ridiculous that you the response to that question is

1236
01:02:12,320 --> 01:02:16,720
Speaker 1: called corporate counsel. Okay, it's ridiculous and want to say

1237
01:02:16,840 --> 01:02:20,520
Speaker 1: why that's the answer, right, because all right, it's it's

1238
01:02:20,560 --> 01:02:23,280
Speaker 1: because I don't really know. I have an idea of

1239
01:02:23,320 --> 01:02:27,960
Speaker 1: what is and isn't You think there should be, right,

1240
01:02:28,080 --> 01:02:30,280
Speaker 1: and you can reduce that amount of great with some

1241
01:02:30,360 --> 01:02:33,120
Speaker 1: black and white answers. It would be so easy and

1242
01:02:33,280 --> 01:02:36,000
Speaker 1: so fast. So what about the I P O market?

1243
01:02:36,040 --> 01:02:38,120
Speaker 1: What can they do to fix the I P O market?

1244
01:02:38,480 --> 01:02:41,320
Speaker 1: To to start a research? It's a part of the

1245
01:02:41,360 --> 01:02:44,040
Speaker 1: problem is it's already too late for that, right, is it?

1246
01:02:44,160 --> 01:02:47,240
Speaker 1: That's it? They were done the market. They never to

1247
01:02:47,280 --> 01:02:49,919
Speaker 1: come back. No, it's not. Hopefully that's not the case.

1248
01:02:49,960 --> 01:02:52,800
Speaker 1: But they freaked it up so bad, right because they

1249
01:02:52,800 --> 01:02:56,640
Speaker 1: are You know, at your companies and your businesses and

1250
01:02:56,680 --> 01:02:59,560
Speaker 1: your jobs, you have goals and when you set those goals,

1251
01:02:59,800 --> 01:03:03,040
Speaker 1: you you evaluate whether you reach those goals. Right, And

1252
01:03:03,080 --> 01:03:05,720
Speaker 1: it's very easy to set. If you can quantify it,

1253
01:03:05,760 --> 01:03:08,000
Speaker 1: you can measure it, you can manage it. Right. So

1254
01:03:08,600 --> 01:03:11,320
Speaker 1: Mary White, the chairman of the SEC says, we want

1255
01:03:11,320 --> 01:03:14,400
Speaker 1: to improve capital markets, we want to make them safe. Right,

1256
01:03:14,480 --> 01:03:17,280
Speaker 1: So how do they measure that? Do they do research

1257
01:03:17,360 --> 01:03:19,600
Speaker 1: to say, how do you measure that? I I do

1258
01:03:19,680 --> 01:03:21,640
Speaker 1: here I'll give you take a step back. Every time

1259
01:03:21,640 --> 01:03:23,720
Speaker 1: I give a speech related to the subject, I always

1260
01:03:23,760 --> 01:03:28,600
Speaker 1: ask the same questions. How many people have um? What

1261
01:03:28,720 --> 01:03:32,160
Speaker 1: was that? Um? How many people have not invested? How

1262
01:03:32,200 --> 01:03:34,680
Speaker 1: many people? How many people trust the stock market? No?

1263
01:03:34,760 --> 01:03:36,720
Speaker 1: Do you trust to here? Sorry? By the way, that's

1264
01:03:36,800 --> 01:03:38,920
Speaker 1: that number is gonna be much lower today than That's

1265
01:03:38,920 --> 01:03:40,720
Speaker 1: why I said, you trust the market more today than

1266
01:03:40,760 --> 01:03:44,440
Speaker 1: you did. Absolutely most of the average answer is well, also,

1267
01:03:44,520 --> 01:03:46,320
Speaker 1: keep in mind, they live through the dot com bus,

1268
01:03:46,400 --> 01:03:50,040
Speaker 1: they live through the housing crisis, the crisis, that's exactly.

1269
01:03:50,080 --> 01:03:54,320
Speaker 1: Then high frequency trading, all those right, Bernie made off.

1270
01:03:54,360 --> 01:03:57,080
Speaker 1: Don't forget Bernie made off all these things. Right, Bernie

1271
01:03:57,120 --> 01:04:00,240
Speaker 1: made off. They've had quite a few black eyes. Try,

1272
01:04:00,320 --> 01:04:02,720
Speaker 1: But how do they measure their success? They don't do researches,

1273
01:04:02,840 --> 01:04:05,480
Speaker 1: fiction rate on inside of trading case, no, not even

1274
01:04:05,520 --> 01:04:09,400
Speaker 1: convention the number, yeah, and how much money they've they've

1275
01:04:09,400 --> 01:04:12,840
Speaker 1: taken back, which has no relevance to whether people trust

1276
01:04:12,880 --> 01:04:17,000
Speaker 1: the market. Then I say to people, Okay, is anybody

1277
01:04:17,040 --> 01:04:20,840
Speaker 1: here invest invested internationally in other countries? Have you sure? Okay?

1278
01:04:21,000 --> 01:04:23,440
Speaker 1: How many countries do you think? Well, we use Vanguard

1279
01:04:23,560 --> 01:04:26,680
Speaker 1: to do emerging markets in Europe and Asian things like that.

1280
01:04:27,040 --> 01:04:31,480
Speaker 1: So we're not out picking individual stocks. You trust those markets, right, Um,

1281
01:04:32,360 --> 01:04:35,200
Speaker 1: I don't trust Russia. I know that's how many of

1282
01:04:35,240 --> 01:04:36,560
Speaker 1: those have you ever? And I know that's one of

1283
01:04:36,600 --> 01:04:39,040
Speaker 1: the cheapest markets in the world. Have you ever investigated

1284
01:04:39,040 --> 01:04:42,040
Speaker 1: the insider trading laws in any of those markets? No?

1285
01:04:42,440 --> 01:04:45,320
Speaker 1: Do you think Vanguard has probably know they haven't. You

1286
01:04:45,360 --> 01:04:47,360
Speaker 1: don't think they? Hell no, because there's never there's hardly

1287
01:04:47,360 --> 01:04:49,480
Speaker 1: ever cases brought in any of them. Why is that

1288
01:04:49,920 --> 01:04:53,200
Speaker 1: because there's no relevance to to confidence in the markets

1289
01:04:53,200 --> 01:04:55,680
Speaker 1: relative to insider trading. There's a lot of arguments that

1290
01:04:55,800 --> 01:04:58,800
Speaker 1: insider trading should be legal because if I've read because

1291
01:04:58,920 --> 01:05:02,960
Speaker 1: the it sends you a message that is better information

1292
01:05:03,040 --> 01:05:05,240
Speaker 1: for the market than them not telling you that they

1293
01:05:05,240 --> 01:05:07,320
Speaker 1: sold the stop for three months or whatever it is. Right,

1294
01:05:07,520 --> 01:05:10,040
Speaker 1: So the fact that people no one, and I asked

1295
01:05:10,040 --> 01:05:12,480
Speaker 1: that question, is anybody not invested in a foreign market?

1296
01:05:13,000 --> 01:05:16,360
Speaker 1: Now here? Let me do Ali baba biggest I p

1297
01:05:16,520 --> 01:05:21,040
Speaker 1: o ever ever? Right? If what is the guy's named?

1298
01:05:21,080 --> 01:05:24,520
Speaker 1: She the head of the of China, the head of

1299
01:05:24,520 --> 01:05:29,560
Speaker 1: the Chinese Communist Party, goes to Jack, Ma, Jack, how

1300
01:05:29,600 --> 01:05:34,280
Speaker 1: you do in this quarter, and Jack says, this is

1301
01:05:34,320 --> 01:05:38,560
Speaker 1: my numbers. Exactly what do you think he's gonna have

1302
01:05:38,600 --> 01:05:40,680
Speaker 1: You think he's gonna say, no, its insider trading. I'm

1303
01:05:40,720 --> 01:05:43,040
Speaker 1: not gonna tell you. Hell no, He's gonna tell him

1304
01:05:43,040 --> 01:05:45,920
Speaker 1: whatever he wants to hear. Right, do you think the SEC?

1305
01:05:46,120 --> 01:05:49,560
Speaker 1: And here's the company in China, it's a freaking communist country,

1306
01:05:49,560 --> 01:05:51,320
Speaker 1: that's the largest I p O in the history of

1307
01:05:51,320 --> 01:05:53,560
Speaker 1: the stock market, And there's no freaking way that the

1308
01:05:53,680 --> 01:05:57,120
Speaker 1: SEC can enforce any level of insider trading laws related

1309
01:05:57,160 --> 01:05:59,760
Speaker 1: to what happens. Isn't that true for any a d

1310
01:06:00,000 --> 01:06:03,000
Speaker 1: of the trades here? Really? Pretty much? So whatever we're

1311
01:06:03,000 --> 01:06:08,040
Speaker 1: buying Snofi that's in in Europe, anything like that, point

1312
01:06:08,240 --> 01:06:12,240
Speaker 1: is that insider trading law. It's not only that, but

1313
01:06:12,360 --> 01:06:15,640
Speaker 1: it's really not relevant in investor confidence and they don't care.

1314
01:06:15,920 --> 01:06:18,720
Speaker 1: So what has to be done to fix investor maintenance?

1315
01:06:19,000 --> 01:06:22,240
Speaker 1: You make it very bright line, right, you? You you

1316
01:06:22,360 --> 01:06:25,240
Speaker 1: be honest about what impacts the market, not just what

1317
01:06:25,320 --> 01:06:29,680
Speaker 1: creates jobs for lawyers, because obviously people don't care about

1318
01:06:29,680 --> 01:06:32,680
Speaker 1: insider trading because we tell people to diversify, which is

1319
01:06:32,680 --> 01:06:34,320
Speaker 1: silly on its own face, and a lot of respects

1320
01:06:34,320 --> 01:06:36,720
Speaker 1: with people to understand don't understand what they're investing in.

1321
01:06:36,920 --> 01:06:38,920
Speaker 1: And diverse racation means to go into all these different

1322
01:06:38,920 --> 01:06:41,760
Speaker 1: markets which have no insider trading laws whatsoever. It's really

1323
01:06:41,800 --> 01:06:44,360
Speaker 1: an interesting way to think about it. And some of

1324
01:06:44,360 --> 01:06:46,600
Speaker 1: our biggest I haven't heard it, And some of our

1325
01:06:46,600 --> 01:06:50,560
Speaker 1: biggest pos are a communist freaking countries where it is impossible.

1326
01:06:50,600 --> 01:06:51,800
Speaker 1: What are you going to go to the head of

1327
01:06:51,800 --> 01:06:54,640
Speaker 1: the Chinese Communist Party and say, look, sir, we need

1328
01:06:54,720 --> 01:06:57,240
Speaker 1: to subpoena you so you can come in and you know,

1329
01:06:57,320 --> 01:07:01,680
Speaker 1: we can take a transcript. I'm kiding. I love China's

1330
01:07:01,720 --> 01:07:07,800
Speaker 1: GDP always to the cent. They know that right there,

1331
01:07:07,840 --> 01:07:10,080
Speaker 1: well back in the battle days when jack Well said

1332
01:07:10,120 --> 01:07:12,880
Speaker 1: g capital, they could pull a penny out anytime they

1333
01:07:12,880 --> 01:07:15,680
Speaker 1: wanted to get the point though, right, So, if you're

1334
01:07:15,720 --> 01:07:18,560
Speaker 1: really trying to be effective and accomplishing something, so the

1335
01:07:18,720 --> 01:07:21,160
Speaker 1: SEC has basically got to get out of trying to

1336
01:07:21,320 --> 01:07:24,640
Speaker 1: manage and trying to do it inside your training law

1337
01:07:24,760 --> 01:07:28,160
Speaker 1: enforcement bright line, go back to Congress and say you've

1338
01:07:28,160 --> 01:07:31,000
Speaker 1: got to make it bright line. Here's what's allowed, here's

1339
01:07:31,000 --> 01:07:32,840
Speaker 1: what's not, Here's what we're gonna let you do. And

1340
01:07:32,880 --> 01:07:35,280
Speaker 1: here's what we're not gonna let you do. So everybody knows,

1341
01:07:35,560 --> 01:07:38,160
Speaker 1: nobody has a clue. How long do you think it's

1342
01:07:38,200 --> 01:07:40,680
Speaker 1: gonna take for the public? You know, I used the

1343
01:07:40,800 --> 01:07:44,040
Speaker 1: nineteen twenty nine example. You had the market crash in

1344
01:07:44,080 --> 01:07:46,479
Speaker 1: twenty nine, The market didn't get back to break even

1345
01:07:46,800 --> 01:07:49,760
Speaker 1: until nineteen fifty four, twenty five years later. It was

1346
01:07:49,800 --> 01:07:55,320
Speaker 1: like a whole generation, right, So it took like a

1347
01:07:55,360 --> 01:07:59,800
Speaker 1: generation of people to grow up who didn't the older

1348
01:07:59,800 --> 01:08:01,920
Speaker 1: out look, and here comes the next general. Here we are.

1349
01:08:01,920 --> 01:08:04,000
Speaker 1: It's fourteen years later and we're still not back to

1350
01:08:04,040 --> 01:08:07,720
Speaker 1: the two thousand. So the SEC, and part of that

1351
01:08:07,840 --> 01:08:10,320
Speaker 1: is the SEC. I don't care what they say because

1352
01:08:10,360 --> 01:08:12,160
Speaker 1: we've had to go through Sarbanes Oxley and what was

1353
01:08:12,200 --> 01:08:14,600
Speaker 1: the last one that they haven't even god Frank right,

1354
01:08:14,680 --> 01:08:17,679
Speaker 1: which have created so much regulation. They had. The SEC

1355
01:08:17,880 --> 01:08:19,400
Speaker 1: going back to two thousand and eight had this thing,

1356
01:08:19,600 --> 01:08:22,040
Speaker 1: I forget exactly what's called, but he used XML, right,

1357
01:08:22,080 --> 01:08:25,000
Speaker 1: which is a scripting type language you can pull data there.

1358
01:08:25,040 --> 01:08:27,360
Speaker 1: Now with big data, there's so many ways that if

1359
01:08:27,360 --> 01:08:31,320
Speaker 1: you had every single company um file everything that they

1360
01:08:31,320 --> 01:08:36,000
Speaker 1: did in every share, that was body the whole thing, right,

1361
01:08:36,040 --> 01:08:39,320
Speaker 1: and look for outliers, and so there's a lot of

1362
01:08:39,320 --> 01:08:42,040
Speaker 1: ways that they can improve it rather than having the

1363
01:08:42,080 --> 01:08:45,080
Speaker 1: CEO have to sign their life away for everything they did.

1364
01:08:45,280 --> 01:08:47,479
Speaker 1: And that only happens because the SEC is full of

1365
01:08:47,560 --> 01:08:50,439
Speaker 1: morons when it comes inside. So you really think the

1366
01:08:50,640 --> 01:08:56,480
Speaker 1: SEC has damaged, really damaged this country, the the economy,

1367
01:08:56,520 --> 01:08:59,639
Speaker 1: the i P just because they are so delusional about

1368
01:08:59,640 --> 01:09:02,720
Speaker 1: what's a wow that is? That is really And you

1369
01:09:02,760 --> 01:09:06,479
Speaker 1: tell me what my argument didn't make sense? Um, there

1370
01:09:06,560 --> 01:09:08,640
Speaker 1: was nothing in it. It didn't make sense. You you

1371
01:09:08,680 --> 01:09:11,640
Speaker 1: mentioned China. I wanted to bring something up you had

1372
01:09:11,680 --> 01:09:14,519
Speaker 1: said that I thought was fascinating, and you hinted at

1373
01:09:14,560 --> 01:09:17,960
Speaker 1: it in an earlier discussion. You said, do you think

1374
01:09:18,040 --> 01:09:21,160
Speaker 1: China is gonna come walking over flying like they did

1375
01:09:21,160 --> 01:09:23,200
Speaker 1: at Pearl Harbor? Which I thought was a joke, You

1376
01:09:23,320 --> 01:09:28,280
Speaker 1: know it was. It wasn't parts the animal has Did

1377
01:09:28,320 --> 01:09:31,880
Speaker 1: we roll over when the Germans attacks? It was No,

1378
01:09:31,960 --> 01:09:34,599
Speaker 1: They're gonna attack us through cyber terrorists, right. No, That's

1379
01:09:34,640 --> 01:09:37,240
Speaker 1: that's why I said our pearl harbor, the Chinese are

1380
01:09:37,280 --> 01:09:39,960
Speaker 1: gonna be our pearl harbor for cyber security. So so

1381
01:09:40,080 --> 01:09:43,000
Speaker 1: here's what I understand that you look at the US

1382
01:09:43,040 --> 01:09:48,080
Speaker 1: electrical grid. It's absolutely wide open, unhardened. Anyone who wants

1383
01:09:48,120 --> 01:09:52,599
Speaker 1: to send us into a non electrical period, it's not

1384
01:09:52,640 --> 01:09:54,800
Speaker 1: that difficult. It's getting better, it's getting a lot better.

1385
01:09:54,800 --> 01:09:56,960
Speaker 1: But your point is well taken. The only saving graces

1386
01:09:57,040 --> 01:09:59,599
Speaker 1: Russia and China. This is even worse, right, So that's

1387
01:09:59,640 --> 01:10:02,839
Speaker 1: that's the one. Number two. There isn't a major company

1388
01:10:02,840 --> 01:10:05,639
Speaker 1: in the United States that hasn't had their entire computer

1389
01:10:05,760 --> 01:10:10,200
Speaker 1: network rifle through by the Chinese Army. It's not just

1390
01:10:10,240 --> 01:10:12,080
Speaker 1: the Chinese army, but it's also the so you know,

1391
01:10:12,120 --> 01:10:14,960
Speaker 1: the Russia, the Soviets, the Russians, all these kids that

1392
01:10:15,000 --> 01:10:18,440
Speaker 1: are sitting on computers that may not even have electricity

1393
01:10:18,479 --> 01:10:21,680
Speaker 1: to full day. That's their way to to just use

1394
01:10:21,720 --> 01:10:24,360
Speaker 1: their intelligence and what they've learned. Look, the beauty of

1395
01:10:24,479 --> 01:10:27,760
Speaker 1: technology is that there's something new every day, and there's

1396
01:10:27,760 --> 01:10:30,599
Speaker 1: a person who created that's something new, and there's everybody else,

1397
01:10:30,640 --> 01:10:32,720
Speaker 1: and everybody else starts at the exact same time to

1398
01:10:32,840 --> 01:10:35,519
Speaker 1: learn it, right, So nobody has an advantage. The smartest

1399
01:10:35,520 --> 01:10:37,479
Speaker 1: guy in Russia, the smartest guy in China, the smartest

1400
01:10:37,520 --> 01:10:39,400
Speaker 1: guy in the US, other than the person who are

1401
01:10:39,400 --> 01:10:42,280
Speaker 1: people who created it. Everybody else is tied in their knowledge,

1402
01:10:42,400 --> 01:10:44,160
Speaker 1: and so it's just a question of effort to learn

1403
01:10:44,160 --> 01:10:46,679
Speaker 1: how to crack those systems and learn how to use them.

1404
01:10:46,800 --> 01:10:49,519
Speaker 1: And so people with all this time, and you know,

1405
01:10:49,720 --> 01:10:53,880
Speaker 1: in Latvia and all these you know, Eastern European countries, right,

1406
01:10:54,000 --> 01:10:56,439
Speaker 1: that's all they do all day because the rewards are there.

1407
01:10:56,680 --> 01:10:59,080
Speaker 1: And in China, you know, the military they're doing the

1408
01:10:59,120 --> 01:11:03,320
Speaker 1: same thing. US and Israel are basically the defense forces

1409
01:11:03,400 --> 01:11:06,320
Speaker 1: for that. That's really astonishing. And now when you think

1410
01:11:06,360 --> 01:11:10,160
Speaker 1: about that, what does it mean if all this intellectual property,

1411
01:11:10,200 --> 01:11:13,040
Speaker 1: all this R and D energy, all this work that's

1412
01:11:13,080 --> 01:11:17,400
Speaker 1: been spent by all of corporate America is being pilfered

1413
01:11:17,439 --> 01:11:19,200
Speaker 1: by I'm not so worried about that because I'm not

1414
01:11:19,200 --> 01:11:21,599
Speaker 1: worried about the I P being pilfered. I'm worried about

1415
01:11:21,640 --> 01:11:24,320
Speaker 1: it being destabilized in one way or the other. That

1416
01:11:24,400 --> 01:11:27,680
Speaker 1: goes back to high frequency trading and the anybody has

1417
01:11:27,880 --> 01:11:31,080
Speaker 1: any ability to do that. Every everything digital is a

1418
01:11:31,080 --> 01:11:33,799
Speaker 1: platform for hackers. It's just a question of the value

1419
01:11:33,800 --> 01:11:36,720
Speaker 1: proposition to them. Right. So if putin is going to

1420
01:11:36,840 --> 01:11:39,439
Speaker 1: put you up an easy cheat, easy street, you know,

1421
01:11:39,439 --> 01:11:41,240
Speaker 1: wherever you happen to be and move you to Moscow

1422
01:11:41,320 --> 01:11:43,600
Speaker 1: in your entire family. If you're able to crack X,

1423
01:11:43,720 --> 01:11:46,599
Speaker 1: Y or Z, why wouldn't you do it? Right? If

1424
01:11:46,600 --> 01:11:49,559
Speaker 1: you're in the best opportunity, if you were live. That's

1425
01:11:49,640 --> 01:11:52,080
Speaker 1: that's the new get rid, that's the new gold rush, right,

1426
01:11:52,120 --> 01:11:56,360
Speaker 1: the new I PO gold rush. I p O market

1427
01:11:56,640 --> 01:11:59,799
Speaker 1: is sitting in Russia from a technology perspective, sitting in Russia,

1428
01:11:59,840 --> 01:12:03,320
Speaker 1: some Eastern European country or China and just learning how

1429
01:12:03,479 --> 01:12:06,479
Speaker 1: to crack, learning how to hack, becoming a hacker for

1430
01:12:06,600 --> 01:12:10,000
Speaker 1: your country. It's patriotic to them, right. And the same

1431
01:12:10,000 --> 01:12:12,759
Speaker 1: things happened in in Asia, and the same things happening

1432
01:12:13,000 --> 01:12:15,600
Speaker 1: in the Middle East, right, Because the greatest return in

1433
01:12:15,640 --> 01:12:18,120
Speaker 1: your time to hit, you know, the Mark Cuban type

1434
01:12:18,160 --> 01:12:20,880
Speaker 1: I p O type scenario is to crack somebody and

1435
01:12:20,960 --> 01:12:23,240
Speaker 1: hack somebody and do it for your country. So what

1436
01:12:23,320 --> 01:12:26,559
Speaker 1: about in the United States? The n s a hacking

1437
01:12:26,600 --> 01:12:29,479
Speaker 1: everybody else in the world. Different issue, um, But they're

1438
01:12:29,479 --> 01:12:33,040
Speaker 1: obviously privacy concerns, probably concerns, and I've started companies around it.

1439
01:12:33,160 --> 01:12:35,599
Speaker 1: But you can't argue with you. We need somebody they're

1440
01:12:35,600 --> 01:12:38,360
Speaker 1: protecting us. We need somebody being pro you know, playing

1441
01:12:38,360 --> 01:12:40,960
Speaker 1: off row active. Yeah, someone's gotta play offense for us

1442
01:12:41,080 --> 01:12:45,960
Speaker 1: and usual has backdoors into all these other tools and technologies.

1443
01:12:46,040 --> 01:12:47,880
Speaker 1: Or is that just a classic I don't know, I

1444
01:12:47,920 --> 01:12:50,800
Speaker 1: don't know, I don't know. All right, he's basically uh

1445
01:12:51,120 --> 01:12:54,799
Speaker 1: at an undisclosed location. On able comments on that, Um,

1446
01:12:54,840 --> 01:12:58,040
Speaker 1: You've said some really fascinating things politically, I want to

1447
01:12:58,040 --> 01:13:00,240
Speaker 1: talk about some of these we I mentioned a lot

1448
01:13:00,280 --> 01:13:03,160
Speaker 1: of the things you said really surprised me. Um. I

1449
01:13:03,200 --> 01:13:06,800
Speaker 1: wrote a column a year ago about how McDonald's and

1450
01:13:06,800 --> 01:13:10,920
Speaker 1: Walmart's are welfare queens that instead of paying a decent

1451
01:13:11,000 --> 01:13:17,200
Speaker 1: minimum wage, they pay these low levels. So you you

1452
01:13:17,320 --> 01:13:21,160
Speaker 1: actually said, and I think it was too um what's

1453
01:13:21,160 --> 01:13:26,360
Speaker 1: her name? Cups on Um. I thought that was a

1454
01:13:26,360 --> 01:13:29,559
Speaker 1: really interesting interview. You said, as far as the food

1455
01:13:29,640 --> 01:13:32,960
Speaker 1: service industry and retails concerned, I'm I'm for the minimum

1456
01:13:33,000 --> 01:13:37,400
Speaker 1: wage being increased to twelve dollars. Why are taxpayers subsidizing

1457
01:13:37,439 --> 01:13:42,080
Speaker 1: low wage employees? Now, again, that's really not the sort

1458
01:13:42,120 --> 01:13:45,320
Speaker 1: of thing one would expect to hear from you. It

1459
01:13:45,400 --> 01:13:48,519
Speaker 1: makes sense when when you think about what to expect

1460
01:13:48,600 --> 01:13:52,320
Speaker 1: from me, I'll tell you exactly how it's perfectly rational. No,

1461
01:13:52,439 --> 01:13:54,720
Speaker 1: what I do? I say, what's the problem, how to

1462
01:13:54,760 --> 01:13:56,479
Speaker 1: fix it? How do you solve it? That's all I

1463
01:13:56,520 --> 01:13:59,360
Speaker 1: care about, right, And that's what we've lost in politics today.

1464
01:13:59,479 --> 01:14:02,800
Speaker 1: For sure. People don't People don't want to fix problems.

1465
01:14:03,080 --> 01:14:08,280
Speaker 1: They want to have their dogma incorporated everywhere. Right. And

1466
01:14:08,320 --> 01:14:10,719
Speaker 1: so look, I would love it so that the government

1467
01:14:10,720 --> 01:14:14,400
Speaker 1: wouldn't have to do anything brilliant. If that's not it's

1468
01:14:14,400 --> 01:14:17,519
Speaker 1: not gonna happen because we look, if you're five hundred pounds,

1469
01:14:17,520 --> 01:14:19,680
Speaker 1: if you're a hundred pounds overweight, you gotta lose the

1470
01:14:19,680 --> 01:14:22,639
Speaker 1: first pound before you can lose. You can't just stop

1471
01:14:22,680 --> 01:14:24,680
Speaker 1: eating and say that's a solution. I think it's a

1472
01:14:24,760 --> 01:14:30,320
Speaker 1: hundred pounds. I'm not, but right to um. And so

1473
01:14:30,680 --> 01:14:35,479
Speaker 1: that's the way the party's approach things. Right, here's how

1474
01:14:35,520 --> 01:14:38,080
Speaker 1: you lose a hundred pounds immediately. It doesn't work that way.

1475
01:14:38,120 --> 01:14:40,320
Speaker 1: You've got to solve the problem, and it's got to

1476
01:14:40,360 --> 01:14:42,840
Speaker 1: be contextual and have a chance of So twelve doll

1477
01:14:42,880 --> 01:14:45,759
Speaker 1: a minimum wage for fast food and retail makes sense

1478
01:14:45,760 --> 01:14:47,680
Speaker 1: in your mind, yeah, because people still have to eat,

1479
01:14:47,720 --> 01:14:50,360
Speaker 1: So it's not like it's fungible money. Right, So you're

1480
01:14:50,360 --> 01:14:52,479
Speaker 1: going to eat somewhere, and if it applies to all

1481
01:14:52,520 --> 01:14:57,080
Speaker 1: fast food company, every everybody goes up to anyone, right,

1482
01:14:57,200 --> 01:15:00,320
Speaker 1: And look, it's not like people. They can hire fewer people.

1483
01:15:00,320 --> 01:15:03,120
Speaker 1: They have to have serve their demand. Makes a lot

1484
01:15:03,120 --> 01:15:05,839
Speaker 1: of sense. Let's talk. Can we talk about your rivalry

1485
01:15:05,880 --> 01:15:08,240
Speaker 1: with Donald Trump? I actually like Donald. It's not really

1486
01:15:08,240 --> 01:15:10,720
Speaker 1: a rivalry. It's just that he's easy to pick on. Well,

1487
01:15:10,760 --> 01:15:14,160
Speaker 1: you once said something to him. The quote that stood

1488
01:15:14,160 --> 01:15:16,400
Speaker 1: out was I could write a check for your whole

1489
01:15:16,439 --> 01:15:18,639
Speaker 1: net worth and I wouldn't even notice it was missing. Yeah,

1490
01:15:18,760 --> 01:15:22,120
Speaker 1: that was true. What sort of argument were you in

1491
01:15:22,160 --> 01:15:25,160
Speaker 1: the middle? Because show the benefactor and he had their Prentice,

1492
01:15:25,640 --> 01:15:27,439
Speaker 1: So he said my show was a knock off, which

1493
01:15:27,479 --> 01:15:30,000
Speaker 1: it wasn't, but it was still poorly done. It was

1494
01:15:30,040 --> 01:15:35,160
Speaker 1: a whole another set of reasons. So yeah, he's an

1495
01:15:35,200 --> 01:15:38,760
Speaker 1: interesting Donald. I actually like Donald, but he's when it

1496
01:15:38,840 --> 01:15:41,800
Speaker 1: comes to social media skills, he's got none. Right, He's

1497
01:15:41,800 --> 01:15:44,920
Speaker 1: got no social media game whatsoever. So you know, face

1498
01:15:44,960 --> 01:15:46,760
Speaker 1: to face, I love talking to him face to face.

1499
01:15:47,000 --> 01:15:49,640
Speaker 1: You know, just he's a smart guy. He's got you know,

1500
01:15:49,680 --> 01:15:52,400
Speaker 1: he's he's been successful. Um, he's been up, he's been

1501
01:15:52,439 --> 01:15:54,000
Speaker 1: down in he's fought back and I get in tons

1502
01:15:54,040 --> 01:15:56,120
Speaker 1: of credit. The old, the old New York joke about

1503
01:15:56,160 --> 01:15:59,880
Speaker 1: him was, you know, he made a small fortune in

1504
01:16:00,000 --> 01:16:02,960
Speaker 1: New York, really started with one lost most of it,

1505
01:16:03,080 --> 01:16:06,479
Speaker 1: which is when it comes to social media, not his forte.

1506
01:16:06,520 --> 01:16:08,920
Speaker 1: Oh no, it's just so whatever he says, it's just easy.

1507
01:16:08,960 --> 01:16:11,120
Speaker 1: So you offered him a million dollars to shave his

1508
01:16:11,160 --> 01:16:18,120
Speaker 1: head and any response. Again, unlike Donald, how people think

1509
01:16:18,120 --> 01:16:21,160
Speaker 1: it's this big rivalry. Um, But I like him. He's

1510
01:16:21,200 --> 01:16:23,800
Speaker 1: a He's definitely a character, to say the least. Coming

1511
01:16:23,880 --> 01:16:27,280
Speaker 1: up next week on Masters in Business, Donald Trump, I

1512
01:16:27,280 --> 01:16:32,120
Speaker 1: don't think that's gonna happen. Um. This was again another quote.

1513
01:16:32,360 --> 01:16:35,360
Speaker 1: I love the comments, I love the concept, says Mark

1514
01:16:35,400 --> 01:16:40,559
Speaker 1: Cuban of Obamacare. Not what one would expect. Um. Now,

1515
01:16:40,680 --> 01:16:44,120
Speaker 1: clearly the United States healthcare system is a mess, and

1516
01:16:44,120 --> 01:16:47,080
Speaker 1: and giving a lot of people healthcare through the emergency room,

1517
01:16:47,439 --> 01:16:50,120
Speaker 1: which was a Reagan era law that was signed, doesn't

1518
01:16:50,120 --> 01:16:53,000
Speaker 1: make anything. We pay for healthcare one way or the other. Right,

1519
01:16:53,040 --> 01:16:55,560
Speaker 1: people are dropping down it the most expensive way you

1520
01:16:55,640 --> 01:16:59,320
Speaker 1: can possible. Right. And so the insurance companies had their

1521
01:16:59,360 --> 01:17:02,479
Speaker 1: chance to be at and they had their chance to

1522
01:17:02,520 --> 01:17:05,200
Speaker 1: come up with better solutions. They cherry picked the best

1523
01:17:05,240 --> 01:17:08,200
Speaker 1: and they never did right. They picked the best risk

1524
01:17:08,640 --> 01:17:11,680
Speaker 1: and said we're can ignore everybody else. So they we

1525
01:17:11,760 --> 01:17:14,080
Speaker 1: put the health of our country in the free market

1526
01:17:14,160 --> 01:17:16,840
Speaker 1: in their hands and they basically said, rather than doing

1527
01:17:16,880 --> 01:17:19,479
Speaker 1: the right thing, we're worried about earnings per share. But

1528
01:17:19,520 --> 01:17:21,920
Speaker 1: they made a choice. They made a choice knowing that

1529
01:17:21,960 --> 01:17:24,040
Speaker 1: there was a risk, particularly when Obama came in, that

1530
01:17:24,080 --> 01:17:26,040
Speaker 1: if we didn't provide the right service, we were going

1531
01:17:26,080 --> 01:17:27,920
Speaker 1: to be a risk of being This hasn't really hurt

1532
01:17:28,000 --> 01:17:31,960
Speaker 1: them because now they just got forty million new insurance

1533
01:17:32,280 --> 01:17:34,559
Speaker 1: which they're gonna they'll provide. But it was on a

1534
01:17:34,560 --> 01:17:36,559
Speaker 1: different set of terms. It wasn't on this Well, there's

1535
01:17:36,560 --> 01:17:39,160
Speaker 1: no more decision. You can't just drop somebody because they

1536
01:17:39,200 --> 01:17:41,439
Speaker 1: got sick. But which was really a horrible thing they

1537
01:17:41,520 --> 01:17:43,920
Speaker 1: used to do. It was ridiculous, Right, what did I

1538
01:17:43,920 --> 01:17:48,439
Speaker 1: read at one of claims are turned back initially, so

1539
01:17:48,479 --> 01:17:51,120
Speaker 1: people who are just to be a pain he has

1540
01:17:51,160 --> 01:17:53,040
Speaker 1: to try to you know, hopefully people will get sick

1541
01:17:53,080 --> 01:17:57,040
Speaker 1: and not follow through, right, which was horrible in this country. Look,

1542
01:17:57,040 --> 01:17:59,559
Speaker 1: we make choices as a country. We we want to

1543
01:17:59,600 --> 01:18:03,240
Speaker 1: have transportation so we have we have roads and those

1544
01:18:03,320 --> 01:18:05,559
Speaker 1: roads are maintained. We want lights and those we want

1545
01:18:06,920 --> 01:18:11,360
Speaker 1: fine roads that are maintained because right, but air traffic control,

1546
01:18:11,479 --> 01:18:14,799
Speaker 1: there's things that we we collectively agree to write. Health

1547
01:18:14,880 --> 01:18:17,240
Speaker 1: is one of those things. In order for us to

1548
01:18:17,320 --> 01:18:19,840
Speaker 1: be vibrant as a nation, we want to be healthy. Right,

1549
01:18:20,160 --> 01:18:22,840
Speaker 1: And the insurance companies just kicked the ball. They blew.

1550
01:18:23,240 --> 01:18:25,680
Speaker 1: Obamacare comes in and says, you know what, you know,

1551
01:18:25,720 --> 01:18:28,599
Speaker 1: it's not perfect, but the numbers game. Is the numbers

1552
01:18:28,640 --> 01:18:31,080
Speaker 1: game on a national basis that makes more sense. But

1553
01:18:31,200 --> 01:18:34,040
Speaker 1: the side effects of those we saw recently that just

1554
01:18:34,160 --> 01:18:36,719
Speaker 1: today or yesterday that more people were leaving their jobs

1555
01:18:36,720 --> 01:18:39,240
Speaker 1: and looking for more jobs, switching switching jobs because they

1556
01:18:39,240 --> 01:18:42,920
Speaker 1: don't worry about losing their healthcare. Why because of Obamacare?

1557
01:18:43,000 --> 01:18:45,400
Speaker 1: Is what you're gonna say, your argument about what we

1558
01:18:45,439 --> 01:18:48,639
Speaker 1: require everybody who drives a car to be insured. How

1559
01:18:48,760 --> 01:18:51,680
Speaker 1: is this anymore difference if we require anybody who could

1560
01:18:51,680 --> 01:18:54,360
Speaker 1: possibly go to the hospital playing car boat, you better

1561
01:18:54,400 --> 01:18:57,800
Speaker 1: have insurance. Right, So if you're mechanical, we're gonna make

1562
01:18:57,800 --> 01:19:00,280
Speaker 1: you do it organic? Why not? Why not are the

1563
01:19:00,280 --> 01:19:02,760
Speaker 1: same thing? It makes perfect because we make choices as

1564
01:19:02,800 --> 01:19:06,280
Speaker 1: a as a nation, right that we want our people

1565
01:19:06,280 --> 01:19:08,320
Speaker 1: to be healthy, we want our kids to be healthy.

1566
01:19:08,479 --> 01:19:10,920
Speaker 1: And when kids are healthier and we support them, you know.

1567
01:19:10,960 --> 01:19:13,800
Speaker 1: And then from an entrepreneurial perspective, now you can leave

1568
01:19:13,840 --> 01:19:16,240
Speaker 1: your company, know when you can go out and get

1569
01:19:16,280 --> 01:19:19,559
Speaker 1: Obamacare and and have some healthcare. Let's talk about weed.

1570
01:19:19,880 --> 01:19:22,880
Speaker 1: Wait before we get there. One other thing, okay, um,

1571
01:19:22,920 --> 01:19:25,200
Speaker 1: that I that I like to say that people think

1572
01:19:25,320 --> 01:19:28,840
Speaker 1: is controversial. On the libertarian side of me, I would

1573
01:19:28,840 --> 01:19:36,479
Speaker 1: love to see nine government services eliminated, eliminated, but that money.

1574
01:19:37,160 --> 01:19:39,679
Speaker 1: Just write a check, Just write a check for people,

1575
01:19:39,800 --> 01:19:42,760
Speaker 1: rather than playing the game of them coming in you know, right,

1576
01:19:43,960 --> 01:19:45,880
Speaker 1: writing money, because you know that's at least thirty if

1577
01:19:45,880 --> 01:19:50,120
Speaker 1: not inefficient. If you just took all that money, pay

1578
01:19:50,280 --> 01:19:52,960
Speaker 1: the people who were working in those services and administration

1579
01:19:53,520 --> 01:19:55,320
Speaker 1: half of what they were getting to not work, right,

1580
01:19:55,400 --> 01:19:57,599
Speaker 1: let them go get another job, given their own little

1581
01:19:57,760 --> 01:20:01,519
Speaker 1: you know, buyouts, and just helicopter drop the money onto

1582
01:20:01,560 --> 01:20:04,200
Speaker 1: all those people. They would end up getting twenty five

1583
01:20:04,640 --> 01:20:07,439
Speaker 1: dollars or more each. They would have to spend that money.

1584
01:20:07,320 --> 01:20:09,599
Speaker 1: They wouldn't save it, because that's the nature of of

1585
01:20:09,600 --> 01:20:12,559
Speaker 1: of where they're at, right, and the economic strata always

1586
01:20:12,560 --> 01:20:14,760
Speaker 1: spends whatever cash they come in, right, right, and so

1587
01:20:15,160 --> 01:20:18,040
Speaker 1: the economy is going to be far better? Is that realistic?

1588
01:20:18,040 --> 01:20:20,320
Speaker 1: Can we really get what we could? Yeah? You could,

1589
01:20:20,400 --> 01:20:22,720
Speaker 1: but they're not. It's not gonna happen, right, I mean, yeah,

1590
01:20:22,720 --> 01:20:24,519
Speaker 1: maybe if I run for presents someday, which is never

1591
01:20:24,560 --> 01:20:26,920
Speaker 1: going to happen, which means, but it makes too much

1592
01:20:26,920 --> 01:20:29,599
Speaker 1: fun to Again, the last thing I need is people.

1593
01:20:30,200 --> 01:20:32,280
Speaker 1: I mean, who wants that level of scrutiny and who

1594
01:20:32,320 --> 01:20:35,680
Speaker 1: wants I've got graveyards. I don't need, not skeletons. I've

1595
01:20:35,680 --> 01:20:38,040
Speaker 1: got a graveyard. So let's go back to weed, because

1596
01:20:38,320 --> 01:20:43,000
Speaker 1: again libertarian and I have certain leanings in that way.

1597
01:20:43,400 --> 01:20:48,560
Speaker 1: I never understood why marijuana was illegal versus beer or alcohol,

1598
01:20:48,760 --> 01:20:52,120
Speaker 1: which does far more damage. But when you look at

1599
01:20:52,160 --> 01:20:56,080
Speaker 1: the damage done to people with UM numbers are drunk

1600
01:20:56,200 --> 01:20:59,400
Speaker 1: drunk driving, and you know, if you're driving and you're high,

1601
01:20:59,479 --> 01:21:02,040
Speaker 1: you're going too slow. That's the problem, you know, Okay,

1602
01:21:02,040 --> 01:21:03,800
Speaker 1: So on the way to jack in the body, I agree,

1603
01:21:03,840 --> 01:21:06,800
Speaker 1: I agree, I agree, obviously, um but it's funny. Right,

1604
01:21:06,840 --> 01:21:09,679
Speaker 1: So when you look, I'm neither Republican or Democrat. Don't

1605
01:21:09,680 --> 01:21:12,000
Speaker 1: give a penny on either side, right, but when you'm

1606
01:21:12,040 --> 01:21:15,320
Speaker 1: not true you gave to you gave to Orange Hatch.

1607
01:21:15,920 --> 01:21:17,960
Speaker 1: Oh that was thirteen years ago, and then you gave

1608
01:21:18,040 --> 01:21:22,080
Speaker 1: to a Democrats. That's right. That was so that those

1609
01:21:22,080 --> 01:21:26,160
Speaker 1: are the only two donations you've made ye fifteen years ago? Right, Um?

1610
01:21:26,240 --> 01:21:27,920
Speaker 1: And they were by the way, you noticed. I could

1611
01:21:27,960 --> 01:21:30,360
Speaker 1: find that out like this, but I can't find out.

1612
01:21:30,680 --> 01:21:35,000
Speaker 1: And what insider trading is, right, right, Remember you took

1613
01:21:35,000 --> 01:21:37,559
Speaker 1: the other side of the right when it came to

1614
01:21:37,600 --> 01:21:42,080
Speaker 1: the corporation around around so anyway, so we decide, right, Um,

1615
01:21:42,160 --> 01:21:45,439
Speaker 1: so we were talking about, um, should drugs be illegal?

1616
01:21:46,200 --> 01:21:49,559
Speaker 1: All the costs for incarceration, right, I'm look like it's ridiculous,

1617
01:21:49,640 --> 01:21:51,479
Speaker 1: first of all, and you were an independent you said

1618
01:21:51,479 --> 01:21:53,400
Speaker 1: you don't care about either side. Yeah, and I space

1619
01:21:53,479 --> 01:21:55,560
Speaker 1: what my train of thought was, because see, that's the

1620
01:21:55,600 --> 01:21:58,800
Speaker 1: problem with weed is short term memory. Right. But then again,

1621
01:21:58,800 --> 01:22:00,799
Speaker 1: on the flip side, I've read that coke kane increases

1622
01:22:00,840 --> 01:22:04,160
Speaker 1: your memory and makes true George Collins joke used to

1623
01:22:04,200 --> 01:22:06,720
Speaker 1: be the problem with getting marijuana legalized as no one

1624
01:22:06,720 --> 01:22:09,519
Speaker 1: can remember where they left. Then that was that was

1625
01:22:09,640 --> 01:22:12,200
Speaker 1: his famous line. So let's think about how many people

1626
01:22:12,240 --> 01:22:15,160
Speaker 1: are incarcerated due to pot, so you would release all

1627
01:22:15,200 --> 01:22:19,400
Speaker 1: those non violent marijuana questions. I remember what I was

1628
01:22:19,400 --> 01:22:22,400
Speaker 1: gonna say, Conservatives, right, so where the Conservatives are really

1629
01:22:22,400 --> 01:22:24,439
Speaker 1: messed up and the Democrats have their own issue, right,

1630
01:22:24,680 --> 01:22:26,759
Speaker 1: put put the side that it's basically the tea party.

1631
01:22:26,760 --> 01:22:32,040
Speaker 1: And but conservatives were about conservatives conserving principles, right, Conservatives,

1632
01:22:32,080 --> 01:22:35,800
Speaker 1: but the conservat what they're trying to conserve is not

1633
01:22:36,240 --> 01:22:39,559
Speaker 1: thirty years old principles. There's still eighty year old principles

1634
01:22:39,600 --> 01:22:43,439
Speaker 1: that are so outdated, right, and so conserving the people

1635
01:22:43,479 --> 01:22:45,560
Speaker 1: who are sixty years old that were smoking pot in

1636
01:22:45,600 --> 01:22:48,879
Speaker 1: the sixties, right and the seventies when it was sex struggling,

1637
01:22:49,040 --> 01:22:51,280
Speaker 1: rugs and rock and roll, and you know, everybody was

1638
01:22:51,320 --> 01:22:53,240
Speaker 1: getting high and a lot of it wasn't even illegal.

1639
01:22:53,560 --> 01:22:56,559
Speaker 1: You know what those are where we should be conserving

1640
01:22:56,560 --> 01:22:59,200
Speaker 1: the principles because the people were in charge now in

1641
01:22:59,240 --> 01:23:01,839
Speaker 1: their sixties, that's the life they were living. What happened

1642
01:23:01,840 --> 01:23:04,519
Speaker 1: to all the people that that you know, we're a

1643
01:23:04,520 --> 01:23:06,800
Speaker 1: little bit older than us, that we're telling us about

1644
01:23:06,840 --> 01:23:09,040
Speaker 1: how they were going to change the world, they all

1645
01:23:09,560 --> 01:23:12,000
Speaker 1: they all went corporate. A lot of those people and

1646
01:23:12,040 --> 01:23:14,559
Speaker 1: I mean it's crazy. They're all doing it. We were kids.

1647
01:23:15,120 --> 01:23:17,599
Speaker 1: Think about when we were kids, are sex, drugs, rock

1648
01:23:17,640 --> 01:23:20,439
Speaker 1: and rolls, Zeppelin, you know, all this stuff, and we're

1649
01:23:20,560 --> 01:23:24,560
Speaker 1: everybody's going to change the world. Sit in all these principles.

1650
01:23:24,600 --> 01:23:28,080
Speaker 1: A lot of the rise of the conservative movement. Reagan

1651
01:23:28,160 --> 01:23:30,960
Speaker 1: is a perfect example. That era was a push back

1652
01:23:31,000 --> 01:23:33,519
Speaker 1: to the extremes of the sixties and seventies. Exactly. The

1653
01:23:33,560 --> 01:23:36,479
Speaker 1: pendulum swings from one crazy. But they're not conserving what

1654
01:23:36,520 --> 01:23:39,599
Speaker 1: they should be conserving any longer. Right, They lust track

1655
01:23:39,680 --> 01:23:42,720
Speaker 1: of what a conservative is right now. It's like it

1656
01:23:42,840 --> 01:23:45,000
Speaker 1: was eight ninety years ago that they were trying to

1657
01:23:45,000 --> 01:23:48,240
Speaker 1: conserve when the world has changed. The world just changed radically.

1658
01:23:48,280 --> 01:23:52,400
Speaker 1: So here we are in the most recent Supreme Court

1659
01:23:52,479 --> 01:23:56,200
Speaker 1: said gay marriage is now legal to for about two

1660
01:23:56,320 --> 01:23:59,360
Speaker 1: hundred million Americans, about thirty one states, I think it was,

1661
01:23:59,720 --> 01:24:03,880
Speaker 1: which is pretty amazing that how rapidly that shape can

1662
01:24:03,920 --> 01:24:06,160
Speaker 1: get marriage. You can get it high as a kite

1663
01:24:06,400 --> 01:24:08,320
Speaker 1: and it's all legal. But it's only in a hand now.

1664
01:24:08,400 --> 01:24:11,400
Speaker 1: The marijuana is only a handful of state become it's

1665
01:24:11,520 --> 01:24:15,400
Speaker 1: essentially non criminalized in most in most places, although it

1666
01:24:15,479 --> 01:24:20,439
Speaker 1: depends on the circumstances. You and I as as white

1667
01:24:20,479 --> 01:24:22,960
Speaker 1: people who are in a decent living, we're not gonna

1668
01:24:22,960 --> 01:24:25,120
Speaker 1: get busted for smoking weed. But if you're an inter

1669
01:24:25,200 --> 01:24:27,240
Speaker 1: city kid, if you're a black kid, your odds of

1670
01:24:27,280 --> 01:24:30,880
Speaker 1: getting arrested for smoking marijuana are much much higher than

1671
01:24:30,960 --> 01:24:34,400
Speaker 1: number something like one out of ten black. Yeah, and

1672
01:24:34,439 --> 01:24:40,479
Speaker 1: that's clearly not applied even handedly. The So the question is,

1673
01:24:41,800 --> 01:24:46,439
Speaker 1: I think people are really surprised. Remember Biden kinda opened

1674
01:24:46,479 --> 01:24:49,960
Speaker 1: his mouth and forced Obama into this. I don't think

1675
01:24:49,960 --> 01:24:56,000
Speaker 1: two years ago anybody expected, not just completely. It's running

1676
01:24:56,040 --> 01:24:59,479
Speaker 1: right past the Republicans. It's funny watching them sort of

1677
01:24:59,560 --> 01:25:03,519
Speaker 1: trying catch up. You craziness, right, and so you would

1678
01:25:03,560 --> 01:25:05,920
Speaker 1: think that they would adapt, but they it's reticuling. I

1679
01:25:05,920 --> 01:25:08,040
Speaker 1: would if I would ever run an office, I'd run

1680
01:25:08,040 --> 01:25:13,680
Speaker 1: as a Republican because conservatively, financially you're a fiscal conservative,

1681
01:25:13,920 --> 01:25:16,559
Speaker 1: fiscal conservative in the two thousand and fourteen way, all

1682
01:25:16,560 --> 01:25:19,760
Speaker 1: these things that I talked about, right, Um, But if

1683
01:25:19,800 --> 01:25:22,000
Speaker 1: they would just learn to stay out of social issues

1684
01:25:22,400 --> 01:25:24,720
Speaker 1: where they make no sense whatsoever. But that was the

1685
01:25:24,720 --> 01:25:28,519
Speaker 1: original you know, the original coalition was you go back

1686
01:25:28,560 --> 01:25:32,400
Speaker 1: to the Reagan Democrats. It was fiscal conservatives. It was

1687
01:25:32,439 --> 01:25:35,519
Speaker 1: the religious right, it was the tax cutters. You put

1688
01:25:35,560 --> 01:25:38,599
Speaker 1: those in when you had three TV stations, four TVs.

1689
01:25:38,600 --> 01:25:41,080
Speaker 1: You can get away with that. Right Now, that's working.

1690
01:25:41,080 --> 01:25:44,920
Speaker 1: I guess listen the immigration you're down in Texas, the

1691
01:25:45,000 --> 01:25:51,400
Speaker 1: immigration rules, the watching the Republicans. You have certain Republicans

1692
01:25:51,439 --> 01:25:54,120
Speaker 1: pushing this. Oh no, I'm not talking about the the

1693
01:25:54,160 --> 01:25:58,160
Speaker 1: far right guys that there are actually some moderate Republicans

1694
01:25:58,479 --> 01:26:02,840
Speaker 1: who are reasonable on immigration, and they get shouted down

1695
01:26:03,280 --> 01:26:05,920
Speaker 1: by the rest of the party. Yeah, building fences isn't

1696
01:26:05,920 --> 01:26:09,760
Speaker 1: gonna do a whole lot sid They don't want this right,

1697
01:26:09,800 --> 01:26:13,760
Speaker 1: they're gonna eventually. I think the Republicans have hurt themselves

1698
01:26:14,200 --> 01:26:17,720
Speaker 1: with the Hispanic voting. They're gone. It's gone. It'll take

1699
01:26:17,720 --> 01:26:21,840
Speaker 1: a generation. Look, the same thing happened with with um

1700
01:26:21,960 --> 01:26:25,400
Speaker 1: when Johnson passed the Voting Rights Act. The thing was

1701
01:26:25,600 --> 01:26:27,880
Speaker 1: all right, we just lost Southern whites for a generation.

1702
01:26:28,200 --> 01:26:30,240
Speaker 1: Turned out to be generations. Yeah, and it's I mean

1703
01:26:30,240 --> 01:26:33,719
Speaker 1: with social media everything, communications is much quicker, right, and

1704
01:26:33,720 --> 01:26:37,559
Speaker 1: and the Repulicans Republicans just don't get it. Why is

1705
01:26:37,640 --> 01:26:41,040
Speaker 1: that why you can't get You can't you can't they

1706
01:26:41,040 --> 01:26:43,840
Speaker 1: can't get the tech geeks to do this for them. No, no, no,

1707
01:26:44,080 --> 01:26:46,679
Speaker 1: they just can't get accepted among themselves. I guess right,

1708
01:26:46,840 --> 01:26:49,880
Speaker 1: you're not gonna get elected because the people who vote

1709
01:26:50,479 --> 01:26:55,519
Speaker 1: in non presidential elections, there's there's so few of them

1710
01:26:55,760 --> 01:26:59,920
Speaker 1: that it's the midterm elections the Republicans can do really well.

1711
01:27:00,080 --> 01:27:02,000
Speaker 1: Unless the Democrats really get out to vote like they

1712
01:27:02,040 --> 01:27:06,000
Speaker 1: did for the presidential election, you're gonna get further and further, right.

1713
01:27:06,040 --> 01:27:08,920
Speaker 1: I don't know. Look, I'm not I'm not a political pundit. Um,

1714
01:27:09,160 --> 01:27:11,360
Speaker 1: I'll defer to Nate Silver and how it all work out.

1715
01:27:11,400 --> 01:27:13,880
Speaker 1: But um, well, he's just saying. He's saying the Republicans

1716
01:27:13,920 --> 01:27:16,840
Speaker 1: will take the Senate and then that tease up the

1717
01:27:17,640 --> 01:27:21,320
Speaker 1: presidential elections. By the way, Republican Senate isn't the worst

1718
01:27:21,320 --> 01:27:23,439
Speaker 1: thing for Hillary Clinton. I can't think. Oh no, she,

1719
01:27:23,920 --> 01:27:27,000
Speaker 1: if anything, she probably is happy with that. And the

1720
01:27:27,000 --> 01:27:29,280
Speaker 1: only question is who are the Republicans gonna put up

1721
01:27:29,280 --> 01:27:32,200
Speaker 1: against her? I have no idea. That's the unknown. What's um,

1722
01:27:32,240 --> 01:27:36,960
Speaker 1: what's the dude's name? Chris Christie? Just uh what state? Oh? Um,

1723
01:27:37,760 --> 01:27:41,519
Speaker 1: he Canadian? He had to dual Canadian Ran Paul No,

1724
01:27:41,600 --> 01:27:43,760
Speaker 1: not rand oh I can't believe. I don't play co

1725
01:27:43,880 --> 01:27:48,439
Speaker 1: stuff attention um Ran, Hispanic name, Hispanic name, Ted Cruz,

1726
01:27:48,520 --> 01:27:51,160
Speaker 1: Ted Cruz. Okay, so when I go through Washington and

1727
01:27:51,240 --> 01:27:54,080
Speaker 1: he's mentioned as a big name, right, the one thing

1728
01:27:54,160 --> 01:27:55,760
Speaker 1: I hear about Ted Cruz and I don't know the

1729
01:27:55,760 --> 01:27:58,599
Speaker 1: guy I don't know anything about is that he's a jerk.

1730
01:27:59,400 --> 01:28:03,640
Speaker 1: Everybody eats him and he met him. No, I've never

1731
01:28:03,720 --> 01:28:06,160
Speaker 1: met him. So this is all second hand. But all

1732
01:28:06,240 --> 01:28:09,400
Speaker 1: I know is that everybody that I've talked to that

1733
01:28:09,439 --> 01:28:11,880
Speaker 1: knows anybody who works from so again second hand, they've

1734
01:28:11,920 --> 01:28:15,200
Speaker 1: all quit or been fired, and the turnover is enormous.

1735
01:28:15,360 --> 01:28:17,679
Speaker 1: And this is the guy that, from what everybody says,

1736
01:28:17,760 --> 01:28:19,679
Speaker 1: is most likely to be the Republican. So you can't

1737
01:28:19,720 --> 01:28:23,559
Speaker 1: you can't build a presidential team. Assuming that's true. I've

1738
01:28:23,560 --> 01:28:26,599
Speaker 1: never heard that before, time in and time out, again

1739
01:28:26,640 --> 01:28:30,320
Speaker 1: and again and again and again. What's been so fascinating about. Look,

1740
01:28:30,360 --> 01:28:33,439
Speaker 1: I grew up a Jacob Javits Republican and in New York.

1741
01:28:33,479 --> 01:28:38,080
Speaker 1: What that means is Javits is a liberal Northeastern Republican,

1742
01:28:38,520 --> 01:28:42,479
Speaker 1: which meant no overseas adventures. That's how Vietnam affected him.

1743
01:28:42,640 --> 01:28:46,200
Speaker 1: Low taxes, balance budget, but keep the government out of

1744
01:28:46,200 --> 01:28:49,200
Speaker 1: the bedroom. So back in the day, that's the closest

1745
01:28:49,240 --> 01:28:52,639
Speaker 1: thing you got to a libertarian in the Republican Party

1746
01:28:53,479 --> 01:28:56,559
Speaker 1: that a bit of politics puts me on the far

1747
01:28:56,680 --> 01:29:01,639
Speaker 1: left fringe today when that was considered a right thirty years.

1748
01:29:01,680 --> 01:29:04,720
Speaker 1: It's all so extreme now and so polarized. It just

1749
01:29:04,760 --> 01:29:08,559
Speaker 1: doesn't work. Well. Hopefully they'll figure out some somebody will

1750
01:29:08,560 --> 01:29:11,840
Speaker 1: figure some way. We need a sacrificial candidate to go

1751
01:29:11,920 --> 01:29:14,200
Speaker 1: up there and just blow everything up to get people

1752
01:29:14,200 --> 01:29:16,960
Speaker 1: paying attention, knowing there's no chance of being elected within

1753
01:29:17,000 --> 01:29:19,519
Speaker 1: their party, but just to get the topics discussed. You know,

1754
01:29:19,600 --> 01:29:23,200
Speaker 1: the closest guy to that was Rand Paul, who used

1755
01:29:23,240 --> 01:29:25,400
Speaker 1: to say stuff that and the rest of the party

1756
01:29:25,439 --> 01:29:28,679
Speaker 1: would just cringe. It was fascinating, but he was so extreme,

1757
01:29:28,720 --> 01:29:30,880
Speaker 1: like gold standard and this and that that. It was

1758
01:29:30,920 --> 01:29:34,439
Speaker 1: just he just played liberit libertarians. So he wasn't He

1759
01:29:34,479 --> 01:29:37,280
Speaker 1: doesn't He didn't solve problems. He just he was just

1760
01:29:37,320 --> 01:29:39,800
Speaker 1: as much dogma as anybody else. You need someone who's

1761
01:29:39,800 --> 01:29:42,080
Speaker 1: gonna look at everything individually and say here's the problem,

1762
01:29:42,200 --> 01:29:45,000
Speaker 1: here's the solution, here's how we vetted it. If you

1763
01:29:45,000 --> 01:29:46,559
Speaker 1: don't like it kiss my ass because I don't care

1764
01:29:46,600 --> 01:29:49,000
Speaker 1: if I get elected. Ron Pole is the only guy.

1765
01:29:49,000 --> 01:29:51,840
Speaker 1: And I wasn't a run Pole fans supporter, but I

1766
01:29:51,880 --> 01:29:53,880
Speaker 1: was kind of a fan of his because he's the

1767
01:29:53,920 --> 01:29:56,240
Speaker 1: only guy who would come out and say we can't

1768
01:29:56,280 --> 01:29:59,439
Speaker 1: spend a trillion dollars on these overseas wars that are

1769
01:29:59,479 --> 01:30:03,400
Speaker 1: of choice, and nobody else in the party would say anything. No,

1770
01:30:03,600 --> 01:30:05,800
Speaker 1: they wouldn't. But RAN's problem. You know, they asked me

1771
01:30:05,840 --> 01:30:10,519
Speaker 1: to go Ran Ran or run right Rans a little

1772
01:30:10,520 --> 01:30:15,280
Speaker 1: bit more um center center, but still everything still yeah,

1773
01:30:15,280 --> 01:30:17,400
Speaker 1: but it's all dogma, right. You can't just stick the

1774
01:30:17,479 --> 01:30:22,840
Speaker 1: libertarian dogma whatever it is, right, conservative dogma, democrat. It's

1775
01:30:22,880 --> 01:30:25,320
Speaker 1: the dogma that kills the dog and and that's the

1776
01:30:25,360 --> 01:30:28,400
Speaker 1: appeal of the guy we were talking about earlier, because

1777
01:30:28,439 --> 01:30:31,519
Speaker 1: he's really he's a technocrat. He just what we need

1778
01:30:31,560 --> 01:30:34,240
Speaker 1: to do to get the job, and that's the appeal.

1779
01:30:34,400 --> 01:30:38,639
Speaker 1: And unfortunately that's a tough guy to get through through.

1780
01:30:38,680 --> 01:30:40,880
Speaker 1: That's why a Bomb has been closer to center than

1781
01:30:41,080 --> 01:30:43,840
Speaker 1: anybody else. Right, stays out of the bedroom, do your

1782
01:30:43,840 --> 01:30:48,000
Speaker 1: own thing right, you know, begrudgingly came along on gay rights,

1783
01:30:48,000 --> 01:30:50,120
Speaker 1: and it turns out to work. Who would? Who would?

1784
01:30:50,160 --> 01:30:52,519
Speaker 1: I don't think he expected that to be as this

1785
01:30:52,760 --> 01:30:55,080
Speaker 1: less of a problem. It's crazy, But that just says

1786
01:30:55,120 --> 01:30:57,960
Speaker 1: who we are as a nation, you know, and we

1787
01:30:57,960 --> 01:30:59,840
Speaker 1: we go through this fight fight fight or maybe not,

1788
01:31:00,040 --> 01:31:02,360
Speaker 1: maybe not or maybe not. No, forget it, that's old news.

1789
01:31:02,479 --> 01:31:04,840
Speaker 1: I have. I have one last quote. I'm afraid I'm

1790
01:31:04,920 --> 01:31:07,240
Speaker 1: keeping you here forever. I have one last quote. I

1791
01:31:07,240 --> 01:31:08,800
Speaker 1: want to talk to you. Is there anything else you

1792
01:31:08,840 --> 01:31:10,920
Speaker 1: want to bring up that we haven't gotten? No, I've

1793
01:31:10,960 --> 01:31:13,240
Speaker 1: just you know, more chances to nail the sec un

1794
01:31:13,240 --> 01:31:16,320
Speaker 1: tell Mary White should be fired and thrown on the curb.

1795
01:31:16,360 --> 01:31:17,720
Speaker 1: And well, who are they going to replace it with?

1796
01:31:17,760 --> 01:31:21,240
Speaker 1: They're not gonna me? Yeah? That well again, if I

1797
01:31:21,280 --> 01:31:24,519
Speaker 1: was benevolent dictator. There was a line you said that

1798
01:31:24,640 --> 01:31:27,280
Speaker 1: stayed with me because it's something I really believe in.

1799
01:31:27,720 --> 01:31:29,760
Speaker 1: And this is what I meant by I'm really sympatico

1800
01:31:29,840 --> 01:31:32,120
Speaker 1: with a lot of things. You talk about, the most

1801
01:31:32,160 --> 01:31:35,559
Speaker 1: important thing you could do with school is learn how

1802
01:31:35,600 --> 01:31:38,920
Speaker 1: to learn. I love that line. It's really true. We

1803
01:31:38,960 --> 01:31:41,160
Speaker 1: don't teach kids how to think, We teach them how

1804
01:31:41,160 --> 01:31:43,920
Speaker 1: to regurgitate. Talk a little bit about what you meant

1805
01:31:43,960 --> 01:31:46,960
Speaker 1: by that the world has changed. Um, when we were

1806
01:31:46,960 --> 01:31:48,920
Speaker 1: growing up, you had to memorize things because if you

1807
01:31:48,960 --> 01:31:50,479
Speaker 1: didn't know them, you had to go find him in

1808
01:31:50,479 --> 01:31:52,559
Speaker 1: the library in a book. Right now we live in

1809
01:31:52,560 --> 01:31:55,360
Speaker 1: an open book world. You're on your phone, you're you're

1810
01:31:55,400 --> 01:31:59,599
Speaker 1: you know, one click onstantaneous something about anything, anything, right,

1811
01:31:59,600 --> 01:32:01,920
Speaker 1: So you've got to learn how to not only find it,

1812
01:32:01,960 --> 01:32:04,080
Speaker 1: which is easy, but you've got to learn how to

1813
01:32:04,120 --> 01:32:09,120
Speaker 1: consume it, um, understand it and critically think about it

1814
01:32:09,160 --> 01:32:12,000
Speaker 1: and come to a conclusion. And we don't teach that,

1815
01:32:12,880 --> 01:32:14,360
Speaker 1: you know, I try to do it with my kids,

1816
01:32:14,680 --> 01:32:16,439
Speaker 1: you know, I try to. Don't just give me the answer,

1817
01:32:16,439 --> 01:32:19,320
Speaker 1: tell me why. How important is it to us as

1818
01:32:19,360 --> 01:32:23,880
Speaker 1: a society to raise a generation of people who know

1819
01:32:24,000 --> 01:32:27,400
Speaker 1: how to think about thinking, who know how to It's critical? Right,

1820
01:32:27,400 --> 01:32:29,439
Speaker 1: because if you don't think we're not doing that. The

1821
01:32:29,640 --> 01:32:33,360
Speaker 1: scary part is what you would envision if we didn't

1822
01:32:33,400 --> 01:32:35,600
Speaker 1: teach our kids how to think critically is exactly what

1823
01:32:35,640 --> 01:32:40,080
Speaker 1: we have now, which is which is a system that's

1824
01:32:40,080 --> 01:32:45,599
Speaker 1: not working. Part is an extremism ideological The system is working,

1825
01:32:46,360 --> 01:32:48,800
Speaker 1: the system is well, everybody is getting food and or

1826
01:32:48,880 --> 01:32:51,880
Speaker 1: many most people, it's still the greatest country in the world. Right,

1827
01:32:52,160 --> 01:32:54,679
Speaker 1: we still the American dream is still alive. And well,

1828
01:32:54,960 --> 01:32:58,640
Speaker 1: it's just we have line items that are ridiculous and

1829
01:32:58,960 --> 01:33:02,240
Speaker 1: so it's not like the big picture we're in good

1830
01:33:02,280 --> 01:33:06,880
Speaker 1: shape that the country has not falling apart. We have risks, right, yeah,

1831
01:33:06,960 --> 01:33:09,400
Speaker 1: depending on where you live, right, um, and so, but

1832
01:33:09,439 --> 01:33:11,920
Speaker 1: those relying items, those are things that you can find

1833
01:33:11,920 --> 01:33:15,240
Speaker 1: a way to fix if people think critically. The problem

1834
01:33:15,280 --> 01:33:19,200
Speaker 1: is people are discouraged from thinking critically because it's not

1835
01:33:19,240 --> 01:33:21,200
Speaker 1: politically correct. It doesn't get you raised, it doesn't so

1836
01:33:21,280 --> 01:33:24,040
Speaker 1: people shut up, right, and there's no outlets for people

1837
01:33:24,080 --> 01:33:26,559
Speaker 1: to grow with their ideas like there should be. But

1838
01:33:26,640 --> 01:33:30,000
Speaker 1: your to your point, We as a parent, right, and

1839
01:33:30,240 --> 01:33:32,679
Speaker 1: we need to teach your kids to be critical thinkers.

1840
01:33:32,920 --> 01:33:35,479
Speaker 1: We need to get kids in school earlier. We need

1841
01:33:35,520 --> 01:33:37,360
Speaker 1: to recognize the fact that some parents are not going

1842
01:33:37,400 --> 01:33:40,000
Speaker 1: to be good parents, so we help them as much

1843
01:33:40,000 --> 01:33:42,320
Speaker 1: as we can with preschool. Like I guess the mayor

1844
01:33:42,360 --> 01:33:46,800
Speaker 1: here is trying to do right good. That's smart, right,

1845
01:33:46,880 --> 01:33:48,519
Speaker 1: people hate it in a lot of respects. Well, no

1846
01:33:48,560 --> 01:33:50,960
Speaker 1: one wants to pay a friend and people accused the

1847
01:33:51,000 --> 01:33:53,720
Speaker 1: mayor of New York as running a nanny state. But

1848
01:33:53,760 --> 01:33:55,880
Speaker 1: when you have a city, you have real problems. The

1849
01:33:55,960 --> 01:33:58,679
Speaker 1: garbage has to be collected. Look, it's not where you start,

1850
01:33:58,680 --> 01:34:00,880
Speaker 1: it's where you end up, right, And you can call

1851
01:34:00,920 --> 01:34:04,000
Speaker 1: it anything you want. And I I used when I

1852
01:34:04,080 --> 01:34:06,960
Speaker 1: was in college, I used to say, look, screw them.

1853
01:34:07,000 --> 01:34:08,759
Speaker 1: If they don't want to do the work, they deserve

1854
01:34:08,840 --> 01:34:10,880
Speaker 1: everything that they get. Until I got to the point

1855
01:34:10,880 --> 01:34:14,439
Speaker 1: where I was paying for them, right, And so now

1856
01:34:14,479 --> 01:34:16,920
Speaker 1: that I'm paying for them, I'd rather have them go

1857
01:34:17,040 --> 01:34:20,120
Speaker 1: to preschool. I'd rather pay for the preschool because it's

1858
01:34:20,120 --> 01:34:22,960
Speaker 1: gonna cost me less. It's cheaper than unemployment, it's cheaper

1859
01:34:22,960 --> 01:34:27,240
Speaker 1: than than drug rehabilitation is cheap. That's exactly right. So

1860
01:34:27,360 --> 01:34:29,599
Speaker 1: rather than being a fool on my side of it

1861
01:34:29,640 --> 01:34:33,439
Speaker 1: and say, golly, that's just wrong. Right, in a perfect world,

1862
01:34:33,439 --> 01:34:35,960
Speaker 1: it's wrong, But in reality, it is what it is.

1863
01:34:36,320 --> 01:34:37,880
Speaker 1: And how am I going to get to the best

1864
01:34:37,880 --> 01:34:39,360
Speaker 1: point for my kids? How am I going to do

1865
01:34:39,479 --> 01:34:41,479
Speaker 1: the best what I think is for the country, Because

1866
01:34:41,680 --> 01:34:42,800
Speaker 1: not only do you have to learn I learned. I

1867
01:34:43,000 --> 01:34:45,000
Speaker 1: say it all the time. Other than serving in the military,

1868
01:34:45,160 --> 01:34:47,200
Speaker 1: the most patriotic thing you can do is get stink

1869
01:34:47,240 --> 01:34:50,759
Speaker 1: and rich, right, and pay your taxes because that creates

1870
01:34:50,760 --> 01:34:53,439
Speaker 1: opportunity for everybody else. And we can help send kids

1871
01:34:53,520 --> 01:34:56,080
Speaker 1: to preschool so they can learn. So you've got to

1872
01:34:56,080 --> 01:34:59,120
Speaker 1: look for the solutions and not just the line items

1873
01:34:59,160 --> 01:35:03,040
Speaker 1: that you fight. And with critical, critically thinking kids, I

1874
01:35:03,080 --> 01:35:06,519
Speaker 1: think we'll be we'll get more of that um where

1875
01:35:06,600 --> 01:35:10,800
Speaker 1: kids just read dogma and regurgitate, we'll have less of it. Right.

1876
01:35:10,880 --> 01:35:15,639
Speaker 1: We want practical solutions, generation that understands how to deal

1877
01:35:15,640 --> 01:35:18,000
Speaker 1: with problems and find solution. I mean, because you've got

1878
01:35:18,000 --> 01:35:20,840
Speaker 1: to think of in this world things happened, so information

1879
01:35:20,880 --> 01:35:23,160
Speaker 1: travels so much more quickly than when we were growing up.

1880
01:35:23,280 --> 01:35:26,439
Speaker 1: There used to be an information arb right where people

1881
01:35:26,439 --> 01:35:29,000
Speaker 1: didn't know something. I could go to a bookstore figured

1882
01:35:29,040 --> 01:35:31,479
Speaker 1: out like that and learn it before anybody else. That

1883
01:35:31,600 --> 01:35:34,479
Speaker 1: information arb is gone because everybody has that information at

1884
01:35:34,479 --> 01:35:37,920
Speaker 1: their fingertips. It's instantaneous. So because that information ARB has gone,

1885
01:35:38,040 --> 01:35:41,160
Speaker 1: everything happens in real time so much and so kids

1886
01:35:41,160 --> 01:35:43,000
Speaker 1: things are going to be affecting our kids so much

1887
01:35:43,040 --> 01:35:45,639
Speaker 1: more quickly than they did us. It's in social media.

1888
01:35:45,880 --> 01:35:48,160
Speaker 1: You know there's a rumor, you know the kids said this,

1889
01:35:48,240 --> 01:35:50,599
Speaker 1: The kids said that that you've got to be able

1890
01:35:50,640 --> 01:35:53,479
Speaker 1: to respond and deal with an understand in real time,

1891
01:35:53,600 --> 01:35:56,280
Speaker 1: in real time, and we've got to teach our kids

1892
01:35:56,280 --> 01:35:58,360
Speaker 1: that I'm looking at helping a business school in Dallas,

1893
01:35:58,720 --> 01:36:03,599
Speaker 1: UM just change eaching their curriculum for entrepreneurs completely degrees,

1894
01:36:04,000 --> 01:36:06,960
Speaker 1: rather than doing the kind of Harvard Business School case study.

1895
01:36:07,280 --> 01:36:10,160
Speaker 1: Being able to walk into any business in any situation

1896
01:36:10,400 --> 01:36:12,880
Speaker 1: and understand exactly what that business needs and how to

1897
01:36:12,920 --> 01:36:16,360
Speaker 1: do it, and critically think and process information more quickly

1898
01:36:16,520 --> 01:36:18,840
Speaker 1: because that's the skill set. Learn how to learn, learn

1899
01:36:18,880 --> 01:36:21,960
Speaker 1: how to process, learn what the impact is going to be,

1900
01:36:22,439 --> 01:36:25,200
Speaker 1: and then be able to make a decision about it. Mark,

1901
01:36:25,439 --> 01:36:28,600
Speaker 1: You're absolutely delight to sit and talk to here for

1902
01:36:28,600 --> 01:36:33,599
Speaker 1: for two full hours. You're listening to Masters in Business

1903
01:36:33,720 --> 01:36:36,240
Speaker 1: with Barry Ridholts on Bloomberg Radio