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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news, single best in Vidio.

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Speaker 1: That's the name of the podcast today, Single best idea,

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Speaker 1: and of course we're gonna do in vidio and some great,

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Speaker 1: great comments, respectful comments out on YouTube. The live chat,

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Speaker 1: which is really valuable. I can't say enough about the

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Speaker 1: live chat. A big surprise to me. I was like, yeah, yeah, yeah,

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Speaker 1: you know, there it is. We're on YouTube, search Bloomberg Podcasts,

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Speaker 1: subscribe to Bloomberg Podcasts and there's this really active, intelligent

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Speaker 1: live chat. And you know, somebody said, okay, enough in video,

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Speaker 1: and I really I respect the idea, except I got

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Speaker 1: a lot of pro saying this just permeates through everything

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Speaker 1: we do, everything we think of future within investment, bonds,

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Speaker 1: equities and all. So we're gonna do one topic today

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Speaker 1: in video in honor of the impact they've had. I

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Speaker 1: looked very carefully yesterday at the Nvidia Financials see if

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Speaker 1: O discussion and the chief financial officer and the temperament

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Speaker 1: to tend to one stocks but dividend increase and all,

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Speaker 1: and I got to admit, they're not running like a

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Speaker 1: bunch of arrogant over educated types that we think we

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Speaker 1: know in the stereotype of technology. It just seems to

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Speaker 1: be like a very serious effort to wrestle with there's

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Speaker 1: a like that word, Eric, there's a sophisticated word to

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Speaker 1: wrestle with the future of technology. Someone very attuned to

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Speaker 1: this is from a technology powerhouse, t ro Price of Baltimore,

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Speaker 1: invented by side technology analysis. Carrying that forward in global

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Speaker 1: asset allocation is Sebastian Page. Here's Sebastian page on Nvidia.

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Speaker 2: I don't think this is any way comfortable to the

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Speaker 2: tech bubble. In fact, nvidious price earning is down. Yeah, you, Paul,

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Speaker 2: you talked about how much sales they've created. They've created

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Speaker 2: about forty five billion in net profits in about two years.

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Speaker 2: So there's fundamentals behind this AI rally. My colleague dumb Rizzo,

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Speaker 2: he runs a global tech fund. I'm an asset allocator. Yeah,

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Speaker 2: I've never been so interested in stocks because they're just

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Speaker 2: so big and they drive asset returns.

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Speaker 1: The Sebastian page here, And of course a huge part

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Speaker 1: of the study of assets is do you look at

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Speaker 1: individual stocks, do you look at sectors? Do you look

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Speaker 1: at in and out market timing? The basic you know,

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Speaker 1: iconic idea of sixty percent stocks, forty percent bonds, any

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Speaker 1: number of ways to go here. You'll hear the word factors,

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Speaker 1: what's the fact momentum is a factor, and mostly what

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Speaker 1: I look at I've been I will do this over

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Speaker 1: the long weekend. I'm going back and I'm reading all

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Speaker 1: of Michael Mobison, the giant at Credit Suite, and like Mason,

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Speaker 1: and the basic idea here of getting away from CFA

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Speaker 1: type consensus of fifty years of research to just capital

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Speaker 1: allocation and return on invested capital and the basic idea

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Speaker 1: of what do you do with the free cash flow?

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Speaker 1: And one of the huge, huge issues here for these

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Speaker 1: tech winners is their capex is really measured compared to

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Speaker 1: the free cash flow that's coming in the insight. Yesterday

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Speaker 1: on in video was Gene Monster deep Water Asset Management,

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Speaker 1: and he said, look, in purchasing, they're going to say

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Speaker 1: you got to buy the old chips or you don't

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Speaker 1: get the new chips. I thought that was just a

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Speaker 1: brilliant idea. It's the Osborne effect. I'm the only one

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Speaker 1: you know they actually owned an Osbourne computer. Cost me

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Speaker 1: a fortune, was absolutely useless, but it was cool. It

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Speaker 1: was very cool at the time. Here's Gene monster on

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Speaker 1: in video.

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Speaker 3: They are a mature company. They're going to do over

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Speaker 3: one hundred billion revenue this year, call it. It's going

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Speaker 3: to be approaching the three trillion dollar market cap, one

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Speaker 3: of the top three companies, and they're acting like it.

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Speaker 3: They do not act like people who are trying to

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Speaker 3: pump up a theme. The results are backing it up.

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Speaker 3: The guidance is backing it up. They beat a high

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Speaker 3: bar by six percent, they guide it up July by

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Speaker 3: five percent, and those guidance and I think this is

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Speaker 3: a sign of a mature management team. They keep exceeding.

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Speaker 3: Over the last four quarters, they've been exceeding those expectations,

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Speaker 3: and so that discipline around guidance is yet another example

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Speaker 3: I think of how they are being mature about this.

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Speaker 3: And they got good reason to be feeling good about

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Speaker 3: things for two reasons. One is that they've got products

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Speaker 3: that no one else has, and separately is they're still

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Speaker 3: in the early innings of what is going to be

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Speaker 3: the most breathtaking shift in technology that we've seen in

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Speaker 3: the past hundred years.

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Speaker 1: Gene Munster and I want to review what he said

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Speaker 1: because I just think it's so important if you have

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Speaker 1: a developing chip line and you think there's a new

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Speaker 1: chip coming, you stop buying the present chip waiting for

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Speaker 1: the new chip. And basically Osborne Computer fifty years ago,

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Speaker 1: forty five years ago said no, no, no, no, you have

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Speaker 1: to keep buying the present chip or you don't get

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Speaker 1: the new chip. And gene Monster feels very strongly in

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Speaker 1: video will use that effect with all the different clients

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Speaker 1: to keep the revenue persistency going. At a video, our

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Speaker 1: persistency will try to get to the weekend. We do

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Speaker 1: that with Apple car, play with Android and on YouTube,

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Speaker 1: search Bloomberg Podcasts, subscribe to Bloomberg Podcast Bonus. Lisa Matteo

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Speaker 1: out in the live chat of YouTube, this is single

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Speaker 1: best idea

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Speaker 2: Damaging