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Speaker 1: Welcome to How the Money. I'm Joel and I in Matt.

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Speaker 1: Today we're discussing the perils of investing in individual stocks. Yeah, buddy,

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Speaker 1: this is gonna be an investing episode one here at

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Speaker 1: How the Money. I feel like we try to we

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Speaker 1: keep it well around it. We talk about all sorts

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Speaker 1: of all the different things that have to do with

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Speaker 1: your money, how you earn it, and how you spend it,

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Speaker 1: how you invest it. But this is one investing we're

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Speaker 1: gonna get like knee deep in it, elbow deep in it. Yeah, well,

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Speaker 1: I feel like both. If there's an If there's any

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Speaker 1: topic that people have a lot of questions about that

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Speaker 1: we consistently get pushed back on, it is this one.

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Speaker 1: It is. It is about investing in individual stocks and

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Speaker 1: specifically individual companies. A lot of people are like, hey, listen,

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Speaker 1: like is it I don't think it's dumb? Or why

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Speaker 1: do you guys like advising instant and so it's time

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Speaker 1: to clarify and kind of go into depth about why

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Speaker 1: it's not our favorite style method of investing. That's right,

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Speaker 1: real quick though, I wanted to share a quick this

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Speaker 1: is potentially a money saving tips so uh lately, so

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Speaker 1: I was in the shower last night, getting ready to shave.

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Speaker 1: Do you shave in the shower? By the way, I

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Speaker 1: knew not okay, came from my mirror after but I

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Speaker 1: very rarely like shave shave, so yeah, well, neither you

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Speaker 1: nor I have much growth. But for me, I was

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Speaker 1: getting to the point to where I needed to shave.

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Speaker 1: You know, my miss scraggly patchy beard was looking particularly scraggly.

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Speaker 1: And I love shaving in the shower because it's already

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Speaker 1: warm that the hairs are soft. I got the little

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Speaker 1: mirror that I stick to, the stick to the side

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Speaker 1: of the shower. Anyway, I've been using like the shaving lotion.

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Speaker 1: I am on board with that as opposed to the

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Speaker 1: shaving cream, because shaving cream it's just air, you know,

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Speaker 1: like you get the big white but that doesn't help you.

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Speaker 1: That doesn't help you out helps me. It works for me.

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Speaker 1: You think it does, but it actually doesn't. Anyway, I

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Speaker 1: ran out of my actual shaving lotion and I needed

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Speaker 1: to shave, and I thought, you know what actual hair

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Speaker 1: condish her. It's a lot like the shaving lotion that

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Speaker 1: I use, and let me give that a shot. So

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Speaker 1: I got it, put it on my face and shaved. Dude,

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Speaker 1: it was an incredibly comfortable shave. Uh. And it turns

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Speaker 1: out like I don't I don't think there's much difference

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Speaker 1: between shaving lotion in actual hair conditioner because it gets

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Speaker 1: the hairs all nice and soft. So I guess this

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Speaker 1: condition would be cheaper to yes, because in my case,

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Speaker 1: I found myself, you know, I didn't have any shaving

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Speaker 1: lotion on hand. But what I'm saying is like, I'm

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Speaker 1: not even sure if I'm going to go back, because

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Speaker 1: like you get a giant bottle of hair conditioner for

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Speaker 1: like a few bucks, you know, versus like an eight

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Speaker 1: ounce tube of shaving lotion from special manufacturers who sell

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Speaker 1: shaving stuff. It costs much much. You're saying, it's just

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Speaker 1: all packaging and branding basic and fragrance, right, because you

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Speaker 1: know that's one of the things they got going is

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Speaker 1: that sand smells. It makes you smell more like a man,

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Speaker 1: as like I just use my wife's. I just use

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Speaker 1: Kate's uh shampoo and conditioner just well like honestly, whatever

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Speaker 1: she buys I use, I don't really Care's why you

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Speaker 1: smell like a flower pedal today, I smell like roses

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Speaker 1: smells very nice. Anyway, I wanted to share that because

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Speaker 1: if you find yourself in a pinch like this, give

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Speaker 1: it a shot. And I will argue with anybody h

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Speaker 1: that's shaving cream, like the traditional shaving cream. It's completely

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Speaker 1: it's just it's all for show, like literally you're lathering

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Speaker 1: it up. It doesn't do anything because when you shave,

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Speaker 1: you end up just like wiping it off your face

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Speaker 1: as opposed to the lotion rubs into your skin. Like

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Speaker 1: the whole point I just shaved with that traditional shaving

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Speaker 1: cream recently you have not experienced, Yeah whatever, because the

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Speaker 1: whole point it's for its moisturized your skin. That way

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Speaker 1: you're not stripping your skin and to dry out some

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Speaker 1: of that's left on your face afterwards. Yeah, especially where

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Speaker 1: it's like one inch thick. Yeah, that's really absorbing into

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Speaker 1: your skin, all of the excess outer shell of your

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Speaker 1: shaving cream. I don't know why you're hating on those

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Speaker 1: traditional phoney uh shaving creams, because I think they work

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Speaker 1: well if you enjoy the traditional shaving cream, but you

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Speaker 1: after you use your conditioner, and you know what, if

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Speaker 1: other people want to get too, I'm just saying, given

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Speaker 1: a give it a shot. If it's gonna save you

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Speaker 1: a few bucks, like, go for it. Yeah, And this

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Speaker 1: is a tip whether you're shaving your face or your legs,

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Speaker 1: So this is something for everybody, whatever you want to shave.

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Speaker 1: Tommy boyd uh. Yeah, it's it's a good tip and

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Speaker 1: that pretty much anybody can use it if there's so

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Speaker 1: home client. Al Right, well, let's move on. Matt, let's

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Speaker 1: mention the beer that we're having on this episode. This

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Speaker 1: is Trappist Roach for ten, which is a quadrais. I mean,

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Speaker 1: I can't really pronounce these sorts of what you can say.

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Speaker 1: It's it's a Spanish beer. No, of course it's not Spanish,

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Speaker 1: Matton south of the Border, but this is a Belgian

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Speaker 1: style beer. And you know, actually, at the end of

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Speaker 1: the episode, I will talk a little bit about the

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Speaker 1: Trappist monasteries that make these kinds of beers because I'm

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Speaker 1: kind of fascinated with them, and this beer is kind

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Speaker 1: of a classic. I'm looking forward to sharing with you

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Speaker 1: on the episode today. That's right, all right, Well, let's

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Speaker 1: let's move on get onto the subject at hand. The

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Speaker 1: topic today is the perils of investing in individual stocks,

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Speaker 1: and Matt The word peril makes me think of a

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Speaker 1: difficult yet epic journey. And right now I'm reading The

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Speaker 1: Hobbit with my eight year old were like three quarters

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Speaker 1: of the way through, and the journey they undertake is

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Speaker 1: of course a perilous one, right They they're goblins, there

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Speaker 1: are dragons, there are enormous wolves and spiders like I

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Speaker 1: can't even imagine seeing one of those kind of spiders

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Speaker 1: that Tolkien describes in real life. It's this treacherous journey

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Speaker 1: even through like these these dark woods where the sun

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Speaker 1: doesn't even shine. And um, I don't want to spoil

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Speaker 1: anything for those those of you haven't read it. I

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Speaker 1: don't think I think spoilers are okay with a book

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Speaker 1: that's like decades and decades old, but you can't spoil it.

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Speaker 1: So but yeah you should. The thing is, everything does

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Speaker 1: end up okay for the travelers in the end, and

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Speaker 1: so you just had no spoilers. Well, just like everything

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Speaker 1: else come on, except for the Titanic. That doesn't mean

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Speaker 1: that well, but like no spoilers and they like gives

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Speaker 1: away the idea's not gonna get people need to know. Yeah,

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Speaker 1: So the thing is, you know, when we're talking about

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Speaker 1: investing in single stocks, the chance that this perilous journey

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Speaker 1: ends up with a happy ending is is much less likely.

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Speaker 1: I know that some listeners they're really into investing in

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Speaker 1: some specific companies they admire or that they think maybe

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Speaker 1: have a lot of upside, and you know what, to

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Speaker 1: a certain extent, different strokes for different folks. Will talk

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Speaker 1: about that later, but yeah, basically, since buying just a

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Speaker 1: single share or a fractional share even now of an

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Speaker 1: individual company, it's become as easy as putting your pants

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Speaker 1: on the The allure has like grown quite a bit

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Speaker 1: for shaving your face or shaving your face with conditioner,

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Speaker 1: you know, And that's why we figured we needed to

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Speaker 1: cover it in depth today. I think it's becoming just

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Speaker 1: more widely appealing to lots of folks. That's right. It's

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Speaker 1: easier than ever to think of yourself as a fancy

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Speaker 1: pants investor with all of the sophisticated tools that any

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Speaker 1: one of us has at our fingertips, or with the

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Speaker 1: ability to like easily drop in on individual company quarterly

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Speaker 1: earnings reports. That's becoming popular or just simply because it's

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Speaker 1: more accessible than ever to invest with individual companies with

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Speaker 1: apps like robin hood where you can buy, where you

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Speaker 1: can sell for free. And it's also easier than ever

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Speaker 1: to become a day trader right because of these things.

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Speaker 1: So we've increased the perilous nature in magnitude and in frequency.

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Speaker 1: Folks are doing it more often. We've made this pretty

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Speaker 1: clear on the podcast, but a listener John, he actually

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Speaker 1: reached out to tell us why he completely disagrees with

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Speaker 1: our stance on individual stocks. He's actually done incredibly well,

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Speaker 1: specifically holding Tesla and Apple. Uh, it's it's made a

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Speaker 1: big difference in his wealth building journey. That's great for him,

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Speaker 1: but we are still not fans, and so in this episode,

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Speaker 1: we're gonna tackle some of the most common arguments and

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Speaker 1: we'll talk about why we ultimately disagree. We believe that

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Speaker 1: single stock investing is unnecessary and it can often be problematic,

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Speaker 1: and we have no problem with John doing what he does.

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Speaker 1: But it's one of those things where you know, we're

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Speaker 1: not gonna necessarily change the way we think just because

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Speaker 1: someone disagrees with us, and and it's worth giving our

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Speaker 1: thoughts because really, yeah, of course, at the end of

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Speaker 1: the day, make your own decision, but we want to

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Speaker 1: offer up you know, our best takes on why we

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Speaker 1: think individual stock investing is kind of a fool's errand

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Speaker 1: list that, right, But really, Matt, before we get to that,

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Speaker 1: let's actually maybe talk about some of the pros of

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Speaker 1: single stock investing, because you know, again we try not

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Speaker 1: to be idealogues. Let's talk about maybe some of the

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Speaker 1: best arguments for investing in single stocks and and why

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Speaker 1: it might make sense. And interestingly enough, you know, we

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Speaker 1: don't completely disagree with folks on some of the reasons

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Speaker 1: that that single stock investing does make sense, because you know,

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Speaker 1: oftentimes the argument is made to only invest in individual

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Speaker 1: companies when you've done your research. They'll make that argument,

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Speaker 1: and it's like, well, I think I can agree with that, right,

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Speaker 1: don't don't invest. It's good to do your research in

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Speaker 1: single stocks if if you haven't done your due diligence

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Speaker 1: on the front and and and yeah, just because you

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Speaker 1: like Nike's new sneaker that they come out with, that

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Speaker 1: doesn't mean that you should buy Nike stock, right, And

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Speaker 1: you need to have a method for picking undervalue companies.

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Speaker 1: Although we would also say it's easier said than done, right,

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Speaker 1: that sounds nice. Do your research, make sure you know

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Speaker 1: what you're getting into. But even that isn't isn't easy

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Speaker 1: to do? Yeah, No, it takes a lot more than

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Speaker 1: just really liking a service, really liking a product, seeing

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Speaker 1: maybe a write up, like a sneak peak, a preview

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Speaker 1: like on maybe a magazine that you get and they're

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Speaker 1: talking about like a new car or something like that,

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Speaker 1: and you might think, oh, well, means I should buy

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Speaker 1: stock in that company because this is gonna be awesome.

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Speaker 1: Just because you have impeccable take the world by storm, right, Yeah,

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Speaker 1: I was gonna say, like, just because you have amazing taste,

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Speaker 1: like impeccable taste, that doesn't mean that a is going

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Speaker 1: to be a successful product launch doesn't mean that be

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Speaker 1: other people will as well. And even if other people

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Speaker 1: do like the product, that doesn't necessarily mean that that

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Speaker 1: company is going to do well that you're going to

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Speaker 1: see the price of the of the shares of that

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Speaker 1: company increase in value. Another prudent approach to single stock

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Speaker 1: investing might be to keep it small. Uh. This is

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Speaker 1: one that we actually agree on because if you're you know,

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Speaker 1: if you're going to invest in a handful of companies,

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Speaker 1: you don't want to bet the entire farm. Right. We'll

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Speaker 1: talk more about this later, but if you want to

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Speaker 1: invest in single stocks, it's best to just dabble a

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Speaker 1: little bit. I kind of think of it like going

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Speaker 1: to Vegas. If you take two d fifty bucks, maybe

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Speaker 1: you leave your your debit card at home, it's gonna

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Speaker 1: be much much less risky. It could even be a

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Speaker 1: lot of fun. However, if you take out say ten

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Speaker 1: thousand dollars with the option to then take out more

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Speaker 1: while you're there, there's gonna be a lot more room

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Speaker 1: for regret. You go to like a idle loan company

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Speaker 1: and you know, you you take out money on your car.

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Speaker 1: I don't know. There's there's all sorts of things you

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Speaker 1: could do that would make a trip to Vegas like

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Speaker 1: um to take it from fund to being like pridiculously risky. Yeah, exactly. So,

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Speaker 1: for instance, a small investment in Navidia or Tesla just

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Speaker 1: like five or six years ago, like that looks amazing now,

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Speaker 1: and because of their incredible rates of growth, you didn't

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Speaker 1: have to invest a ton of money in order to

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Speaker 1: see a meaningful bump in your net worth. Even just

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Speaker 1: a small investment in one or two companies can pay

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Speaker 1: off for you. If you're lucky. But at the same time,

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Speaker 1: I think the argument of keeping it small it's almost

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Speaker 1: like an anti argument um for single stock investing, because

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Speaker 1: the idea is that you know better, right, if you

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Speaker 1: know the truth. And I know we're supposed to be

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Speaker 1: talking about pros to single stock investing. It's really hard

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Speaker 1: and we'll get the cons in a minute, man, And

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Speaker 1: it's hard to get to the cons. But like, if

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Speaker 1: you know that this is that you're going to see

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Speaker 1: outsize returns, why would you Why would you go small?

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Speaker 1: Why would you just dabble? Because if you know, if

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Speaker 1: you're convinced that this is going to be the case,

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Speaker 1: then when I go for and see an incredible increase

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Speaker 1: with your portfolio, the logical extent of the argument is

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Speaker 1: to put all your eggs in that basket. That's what

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Speaker 1: if you knew, that's what you would do. Yeah, if

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Speaker 1: you're a firm believer in like this is what makes sense,

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Speaker 1: then you go all the way. I agree, And but

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Speaker 1: not many people will take their their logic, their belief

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Speaker 1: that single stock investing is a good thing to that

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Speaker 1: extent because they're hedging their bets, all right. But another

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Speaker 1: pro another argument in favor of the whole trying to do.

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Speaker 1: We're not trying to tear it down yet. Well, is

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Speaker 1: that it only makes sense when you hold onto this stock,

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Speaker 1: these companies over the long term. We are fans of

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Speaker 1: long term investing. I feel like we can unequivocally say

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Speaker 1: we agree with this. Yeah, if you're trying to take

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Speaker 1: advantage of short term market swings, well, yeah, you're venturing

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Speaker 1: into trader or even like speculator territory. You're hoping that

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Speaker 1: the dice roll your way in in the short term.

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Speaker 1: And that's dangerous water that you're waiting into. Right, you

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Speaker 1: just mentioned Vegas mat it's truly vegas like to think

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Speaker 1: that you're going to make money on a stock in

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Speaker 1: the short term in the next week, month, or even

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Speaker 1: year or two. And yeah, making sure that you're holding

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Speaker 1: period is measured in years or decades instead of days

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Speaker 1: and months. Is It's just crucial when we're talking about

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Speaker 1: single stocks or when we're talking about broader index funds

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Speaker 1: um and those short term gambles can create tax issues too.

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Speaker 1: So yeah, if you are buying and selling on the rag,

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Speaker 1: not only are you creating unnecessary risk, but you're creating

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Speaker 1: potential tax headaches too. Yeah, you're creating those short term

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Speaker 1: capital gains, uh, where the earnings that you're gonna see

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Speaker 1: are going to be taxed at your ordinary income rate

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Speaker 1: as opposed to the favorable long term capital gains. And

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Speaker 1: if you're comparing between the two, that's the one that

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Speaker 1: we want to see you have to pay, although hopefully, uh,

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Speaker 1: you know, most of your money is already in tax

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Speaker 1: defurd accounts anyway, and so you're not necessarily paying that

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Speaker 1: long term capital gains. Uh. And you know, like one

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Speaker 1: of the more stringent arguments for single stock investing is

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Speaker 1: that you're missing out just on the massive upside potential

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Speaker 1: that comes with owning a few companies that could become outliers,

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Speaker 1: producing you know, those massive returns for you years on end,

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Speaker 1: outpacing the rest of the ho home market. And so

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Speaker 1: if you avoid doing this, if you go with index investing,

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Speaker 1: will you be missing out on the potential for one

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Speaker 1: stock going to the moon. Yeah, absolutely, you'll definitely be

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Speaker 1: giving that up. But you're also for going the ability

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Speaker 1: to get crushed by owning the wrong single stocks, right,

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Speaker 1: so to have your investment cut in half or worse,

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Speaker 1: even go to zero. That's what we're trying to avoid here.

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Speaker 1: There is inherent risk involved when investing in individual stocks,

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Speaker 1: just like there's risk involved with any investment, but we

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Speaker 1: don't think that that is a risk that is worth it.

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Speaker 1: There certainly are some pros, that's some advantages to single

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Speaker 1: stock investing, but we think that the cons outweigh them. Uh,

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Speaker 1: And we'll actually get some more of some of those downsides,

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Speaker 1: those cons to single stock investing right after this break,

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Speaker 1: all right, Matt, Before the break, we were trying to

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Speaker 1: be charitable, trying to give some of the strongest arguments

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Speaker 1: for investing in single stocks. And I think some people

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Speaker 1: have done really really well investing in just a handful

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Speaker 1: of companies and seeing those stocks outperform in the market.

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Speaker 1: They've been able to grow their net worth faster than

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Speaker 1: the rest of us who are just in tragically in

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Speaker 1: index funds. Right, But which sounds ridiculous to even say

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Speaker 1: out loud, Yes, like, yeah, that's kind of what some

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Speaker 1: folks think. Some well, and some folks have actually been

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Speaker 1: able to pull it off. But it is really really difficult.

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Speaker 1: And we will talk about why we are so averse

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Speaker 1: to single stock investing and and yeah, so so why

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Speaker 1: should people avoid it. Well, the easiest reason is that

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Speaker 1: most stock pickers are losers. And I don't mean that

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Speaker 1: in the sense that they don't have any friends, like

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Speaker 1: they're not It's not that they're not cool. They probably are.

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Speaker 1: They're probably decent human beings. But what I mean is

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Speaker 1: that they regularly underperform the broader index of stocks, and

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Speaker 1: we're typically referring to the spire and the truth is

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Speaker 1: it's not even close. You know, more than of professional

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Speaker 1: stock pickers actually had returns that were below average. So

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Speaker 1: we're talking about professional this is their day job, and

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Speaker 1: they screwed up in a massive way. They underperformed. So

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Speaker 1: what makes most of us out here, who have other

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Speaker 1: things going on in our lives, I think that, you know,

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Speaker 1: we can actually do better than those people who don't

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Speaker 1: do very well. When when is ever a passing grade? Right, Well,

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Speaker 1: it reminds me of like the dumber dumber line. So

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Speaker 1: you're saying, there's a chance, you know, it's like there is,

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Speaker 1: it's it's pretty slim though, yeah, exactly so. And then

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Speaker 1: someone might retort and they might say, well, that's just

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Speaker 1: one year, right, That's that's just last year, and they're right,

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Speaker 1: I'm cherry picking a year. But let's expand our horizons

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Speaker 1: a little bit. Stock pickers have actually underperformed the broad

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Speaker 1: stock market in each of the past twelve years. Not

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Speaker 1: quite to that extent each year, but but there's certainly

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Speaker 1: a pattern here, right that even these professionals, that's what

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Speaker 1: they do for a living, they're trying to outperform the market.

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Speaker 1: They're trying to invest in a certain basket of individual

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Speaker 1: stocks that they pick that they think is going to

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Speaker 1: do better than all of them put together. And you

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Speaker 1: know what, they consistently. I feel like if there's a

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Speaker 1: lobbyist group that represents hedge fund managers, we might hear

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Speaker 1: from them the way where the bus. But another bit

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Speaker 1: of advice that's often given in the pursuit of beating

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Speaker 1: the market is to invest in what you know, and

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Speaker 1: you know, we like, we get where folks are are

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Speaker 1: coming from when they make this point, because the argument

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Speaker 1: goes investing yourself or you know, investing your own company,

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Speaker 1: which sounds like a decent enough recommendation. You know that, like,

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Speaker 1: there aren't many better investments you can make than to

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Speaker 1: get an education or to put some of your dollars

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Speaker 1: towards building a business that will make you money for

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Speaker 1: years down the road. But should you be investing in

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Speaker 1: the single stock of your employer or be buying bits

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Speaker 1: and pieces of companies maybe that are in your industry.

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Speaker 1: On that, we've got to say no. We think that

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Speaker 1: buying your own employer stock is almost never a good

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Speaker 1: idea because it's it's far too risky from a diversification standpoint, right, Like,

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Speaker 1: you already get your paycheck from there. If you're employed

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Speaker 1: by a really large company and maybe you live in

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Speaker 1: a small to medium sized town, there's a good chance

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Speaker 1: that the success of that company has a large impact

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Speaker 1: on real estate as well. So you're all you're doubled

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Speaker 1: up in there, So don't increase your risk even more

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Speaker 1: by also investing within that company's stock. It's it's also

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Speaker 1: easy to think that you know, like that you might

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Speaker 1: see things more clearly because you work in an industry. Uh,

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Speaker 1: you know, you can read the tea leaves, you can

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Speaker 1: pick the right companies. But we feel that the opposite

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Speaker 1: is often true. We think that sometimes because you're so

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Speaker 1: close to what your judgment is clouded and it's difficult

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Speaker 1: to make a more objective decision. Yeah, you think you

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Speaker 1: know better, But in actuality, you're missing basically all the

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Speaker 1: other information because you're so hyper focused on your own industry.

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Speaker 1: You can't see the forest right like, like you're there,

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Speaker 1: you're looking at the individual trees and you're you're not

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Speaker 1: looking at the big pictures, and you will, in all

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Speaker 1: likelihood make a bad decision. You'll invest improperly because yeah,

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Speaker 1: you're so focused on that one industry that you work in.

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Speaker 1: Let's let's mention just another argument that that is used

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Speaker 1: sometimes is well, you know, it's not a big deal

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Speaker 1: to just maybe in this your tax refund in a

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Speaker 1: few stocks that you like, and you know, this seems

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Speaker 1: like decent advice on its face because you're keeping your

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Speaker 1: exposure in check, which is kind of what we talked

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Speaker 1: about earlier with keeping it small. You're not overdoing it, right.

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Speaker 1: You're taking you know, a few hundred dollars, maybe even

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Speaker 1: two thousand dollars, and you're sticking that money in individual

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Speaker 1: stocks when you get it in one lump sum. But

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Speaker 1: here's the thing. Money is fungible, so we don't really

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Speaker 1: care where you get your investment dollars from exactly, whether

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Speaker 1: you're taking money from your tax refront or your dollar

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Speaker 1: cost averaging in your four owing k every two weeks,

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Speaker 1: with every single paycheck you get. Single stock investing is

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Speaker 1: still perilous. And you know, it's not a question of

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Speaker 1: where you get the dollars to invest in those single stocks,

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Speaker 1: but whether it makes any sense to begin with, and

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Speaker 1: of course, as you know at this point in the show,

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Speaker 1: we don't think it does. Uh And I mentioned to

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Speaker 1: I mean compared to spending that money, like, if the

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Speaker 1: only alternative to that tax refund is you just blowing it,

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Speaker 1: because that's what you're used to do your single stocks,

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Speaker 1: Matt Joel like, it's that that bold of mind economy.

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Speaker 1: Although you know in years past we would have said

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Speaker 1: that about buying cars, and right now we happen to

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Speaker 1: be in an environment where use cars are selling more

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Speaker 1: for for what they used to. But you definitely can't

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Speaker 1: count on that moving forward. But compared to the single

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Speaker 1: stock investing, if spending is your only other alternative, then yes,

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Speaker 1: we would say, I mean, investing in anything pretty much

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Speaker 1: is always gonna win if you're looking to grow your

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Speaker 1: wealth down the road, and so if that's the alternative,

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Speaker 1: if those your two options, then we would have to

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Speaker 1: side on the side of yeah, go ahead and invest

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Speaker 1: that money. Can I just say to real quick that

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Speaker 1: it's not that we like really individual stock investing in

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Speaker 1: any way, form or fashion. But not all stocks are

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Speaker 1: created equal. So if you're like taking a gamble on

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Speaker 1: a penny stock, that is very different than putting your

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Speaker 1: money with a single company that has proven to be

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Speaker 1: successful over many years. That's right, company like Apple or Google.

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Speaker 1: And I'm not saying that those stocks are poised to

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Speaker 1: rise even more or that there aren't competitors coming into

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Speaker 1: nipping at their heels trying to take their place. But

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Speaker 1: these companies at least have a variety of streams of

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Speaker 1: income and they've proven successful over the long term. Not

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Speaker 1: all single stocks are created equal. That's still isn't a

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Speaker 1: good enough reason to say that it makes sense. I

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Speaker 1: feel like we're like layering caveats upon caveats because because

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Speaker 1: it also kind of depends on the type of spending

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Speaker 1: that you're doing, right, Because if you're gonna drop some

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Speaker 1: money on what's this like roach for ten, you know,

426
00:20:11,160 --> 00:20:13,760
Speaker 1: like a nice Belgian beer, You'll be all right, Yeah,

427
00:20:13,760 --> 00:20:15,480
Speaker 1: it's it's not super top of the line, but it's

428
00:20:15,480 --> 00:20:17,920
Speaker 1: a solid beer. We just want to keep you from

429
00:20:18,080 --> 00:20:21,200
Speaker 1: that mindless spending. It's just that there's a difference between

430
00:20:21,320 --> 00:20:24,440
Speaker 1: you putting money towards something that you truly value versus

431
00:20:24,440 --> 00:20:27,760
Speaker 1: spending willy nilly. But let's let's talk about fundamentals as well,

432
00:20:27,800 --> 00:20:30,560
Speaker 1: because typically, you know, you might ask yourself, is this

433
00:20:30,600 --> 00:20:32,479
Speaker 1: a good company? Is this a good company that I'm

434
00:20:32,480 --> 00:20:34,439
Speaker 1: going to be investing with? Because you better hope so

435
00:20:34,840 --> 00:20:37,520
Speaker 1: if you're banking on making some money from this investment.

436
00:20:37,560 --> 00:20:39,760
Speaker 1: But this is a pretty tough question because it's not

437
00:20:39,960 --> 00:20:42,840
Speaker 1: just about whether the company is is a good one

438
00:20:42,920 --> 00:20:45,000
Speaker 1: or not. It's about whether the price that you're paying

439
00:20:45,040 --> 00:20:47,520
Speaker 1: for that company makes sense. I could list off a

440
00:20:47,560 --> 00:20:50,560
Speaker 1: bunch of companies right now, like I'm thinking about, like Netflix,

441
00:20:50,720 --> 00:20:53,359
Speaker 1: Peloton on Facebook. These are a few companies that have

442
00:20:53,760 --> 00:20:58,360
Speaker 1: revolutionized their spaces. You know historically that anybody would say

443
00:20:58,400 --> 00:21:01,200
Speaker 1: those are good companies matter? Yeah, Yeah, Like the ability

444
00:21:01,240 --> 00:21:04,320
Speaker 1: to stream virtually any movie at home, or to work

445
00:21:04,320 --> 00:21:06,360
Speaker 1: out at home, or you know, talk with your high

446
00:21:06,359 --> 00:21:09,000
Speaker 1: school buddies who you've never talked to, you don't talked

447
00:21:09,000 --> 00:21:12,720
Speaker 1: to in years, and because they had another kiddo, they've

448
00:21:12,760 --> 00:21:15,600
Speaker 1: like forever altered the spaces that they inhabit. Uh. The

449
00:21:15,680 --> 00:21:18,359
Speaker 1: end result of what they have created is incredible. But

450
00:21:18,600 --> 00:21:21,720
Speaker 1: that being said, how are their respective stock prices doing?

451
00:21:21,760 --> 00:21:24,600
Speaker 1: You might ask, uh, pretty rough right now? They're they're

452
00:21:24,600 --> 00:21:28,800
Speaker 1: They're truly bad. What the company is creating it is important,

453
00:21:29,000 --> 00:21:31,560
Speaker 1: but so are their financials, and so it's important to

454
00:21:31,640 --> 00:21:34,600
Speaker 1: keep in mind that they ever changing competitive landscape. It's

455
00:21:34,640 --> 00:21:37,880
Speaker 1: something else that you'll have to consistently size up if

456
00:21:37,960 --> 00:21:40,919
Speaker 1: you want to start investing in individual companies. Yeah. Man,

457
00:21:40,960 --> 00:21:42,520
Speaker 1: I think I think the point that you just made

458
00:21:42,520 --> 00:21:45,320
Speaker 1: goes to kind of show that what Benjamin Graham, who's

459
00:21:45,320 --> 00:21:47,360
Speaker 1: like one of consider one of the classic value investors

460
00:21:47,400 --> 00:21:50,600
Speaker 1: of all time. Uh, he talked about monkeys throwing darts

461
00:21:50,760 --> 00:21:53,720
Speaker 1: at a dark board, they'd have more success than professional trainers.

462
00:21:54,000 --> 00:21:56,520
Speaker 1: And it's one of those things where like, yeah, you

463
00:21:56,520 --> 00:21:58,920
Speaker 1: look at these companies Netflix, Peloton on Facebook are the

464
00:21:58,960 --> 00:22:01,960
Speaker 1: ones you mentioned. They're all having just incredible success in

465
00:22:02,000 --> 00:22:05,119
Speaker 1: their arenaze. What their stock prices are still suffering. And

466
00:22:05,200 --> 00:22:08,399
Speaker 1: so it's not just about picking a company that has

467
00:22:08,880 --> 00:22:11,199
Speaker 1: done something great or is doing something great. There are

468
00:22:11,240 --> 00:22:13,840
Speaker 1: so many other variables involved too. Yeah, And I think

469
00:22:13,840 --> 00:22:16,520
Speaker 1: one of the natural outcomes too of doing that research

470
00:22:16,640 --> 00:22:18,720
Speaker 1: is you know, you're looking at a specific company, and

471
00:22:18,720 --> 00:22:21,560
Speaker 1: then you think, well, well, what about their competitors? So

472
00:22:21,560 --> 00:22:22,920
Speaker 1: you zoom out a little bit and you start looking

473
00:22:22,960 --> 00:22:25,119
Speaker 1: at some of the other companies that they're in competition with,

474
00:22:25,240 --> 00:22:26,960
Speaker 1: and then you zoombot, you're in the weed. Yeah, you

475
00:22:27,080 --> 00:22:28,760
Speaker 1: zoom out a little bit more, and then you're researching

476
00:22:28,800 --> 00:22:31,880
Speaker 1: an entire industry, an entire sector. That's not a path

477
00:22:31,920 --> 00:22:33,320
Speaker 1: that we want you to go down. That's not how

478
00:22:33,320 --> 00:22:35,880
Speaker 1: we want you to spend your research time, as opposed

479
00:22:35,920 --> 00:22:39,359
Speaker 1: to spending your time and energy towards making sure that

480
00:22:39,359 --> 00:22:42,800
Speaker 1: you've got some basic fundamental principles down path when it

481
00:22:42,800 --> 00:22:46,040
Speaker 1: comes to just your general personal finances. Yeah, I agree.

482
00:22:46,080 --> 00:22:49,560
Speaker 1: All's talking about just another issue that comes to bear

483
00:22:49,560 --> 00:22:51,719
Speaker 1: when we're talking about individual stock investing, and it might

484
00:22:51,760 --> 00:22:56,080
Speaker 1: be the most severe issue that investing in individual stocks faces.

485
00:22:56,119 --> 00:22:59,600
Speaker 1: And it's timing because let's let's even just assume that

486
00:22:59,640 --> 00:23:02,359
Speaker 1: you found a great company where the fundamentals appear to

487
00:23:02,359 --> 00:23:06,560
Speaker 1: be super strong there in a sector that is healthy.

488
00:23:06,600 --> 00:23:09,440
Speaker 1: He's going to be booming for decades. Yeah, and they

489
00:23:09,440 --> 00:23:11,640
Speaker 1: look to be undervalued and you think they've got room

490
00:23:11,680 --> 00:23:13,600
Speaker 1: to grow, Well, there are still a couple of key

491
00:23:13,720 --> 00:23:17,400
Speaker 1: questions that remain, like when to buy and then when

492
00:23:17,480 --> 00:23:20,119
Speaker 1: to sell right and so yeah, let's take for example,

493
00:23:20,160 --> 00:23:23,360
Speaker 1: Matt Tesla, because that has been a stock that has

494
00:23:23,560 --> 00:23:26,680
Speaker 1: done a lot of individual investors well in recent years.

495
00:23:26,720 --> 00:23:30,680
Speaker 1: It's darling of minis individual stock investors portfolio. Yes, so

496
00:23:30,760 --> 00:23:34,840
Speaker 1: back in in hindsight, that would have been a killer

497
00:23:34,840 --> 00:23:36,400
Speaker 1: time to have purchased some of that stock. Of course,

498
00:23:36,440 --> 00:23:38,359
Speaker 1: if we could all go back in time, we all would.

499
00:23:38,880 --> 00:23:41,080
Speaker 1: But by the middle of seventeen you would have been

500
00:23:41,119 --> 00:23:45,679
Speaker 1: up around sev the SMP would have only returned. And

501
00:23:45,720 --> 00:23:47,880
Speaker 1: so you're like, I'm smart, I know what I'm doing.

502
00:23:48,800 --> 00:23:51,120
Speaker 1: But then would you have been able to hang on

503
00:23:51,320 --> 00:23:54,280
Speaker 1: while Tesla stock plummeted in twenty nine. By the end

504
00:23:54,320 --> 00:23:56,600
Speaker 1: of that May, they were sitting at a negative fifteen

505
00:23:56,640 --> 00:23:58,879
Speaker 1: percent return based on where you would have bought just

506
00:23:58,920 --> 00:24:00,520
Speaker 1: four and a half years ago. So here like, I'm

507
00:24:00,600 --> 00:24:03,679
Speaker 1: underwater now on the stock. I thought this company was

508
00:24:03,920 --> 00:24:05,280
Speaker 1: the company in the future. They were going to make

509
00:24:05,280 --> 00:24:08,920
Speaker 1: these electric cars that change the world, And in four

510
00:24:09,000 --> 00:24:10,840
Speaker 1: and a half years, I I I'm at a loss

511
00:24:11,240 --> 00:24:14,440
Speaker 1: literally sitting in my portfolio. It feels crappy and so yeah,

512
00:24:14,440 --> 00:24:16,119
Speaker 1: I'm not sure if I would have been able to

513
00:24:16,160 --> 00:24:17,840
Speaker 1: have the stomach for that, And I'm sure a lot

514
00:24:17,840 --> 00:24:20,000
Speaker 1: of other investors did not have the stomach and got

515
00:24:20,040 --> 00:24:22,080
Speaker 1: out at the wrong time, and you know, at the

516
00:24:22,119 --> 00:24:25,199
Speaker 1: same time the SMP would have been up, just compounding

517
00:24:25,480 --> 00:24:28,800
Speaker 1: maybe your negative emotions and so picking a winner and

518
00:24:28,840 --> 00:24:31,040
Speaker 1: then getting the timing right is what makes this such

519
00:24:31,080 --> 00:24:34,080
Speaker 1: a difficult proposition, especially kind of like you alluded to, Matt,

520
00:24:34,119 --> 00:24:36,080
Speaker 1: people have families, they have day jobs, they have other

521
00:24:36,119 --> 00:24:38,360
Speaker 1: things going on their lives that they need to focus on,

522
00:24:38,640 --> 00:24:40,720
Speaker 1: and so it can be it can be hard to

523
00:24:40,800 --> 00:24:44,240
Speaker 1: ride that roller coaster of individual stock ups and downs.

524
00:24:44,480 --> 00:24:46,800
Speaker 1: It's hard to retain that belief in a company when

525
00:24:46,920 --> 00:24:50,280
Speaker 1: the stock is plummeting and you know the broader basket

526
00:24:50,280 --> 00:24:52,879
Speaker 1: of stocks is doing well. How do you maintain that

527
00:24:52,880 --> 00:24:55,480
Speaker 1: conviction and stay the course um and and then how

528
00:24:55,480 --> 00:24:57,400
Speaker 1: do you know when to sell when when you're on top.

529
00:24:57,720 --> 00:25:00,639
Speaker 1: That's a really difficult thing to do, and most people

530
00:25:00,880 --> 00:25:03,320
Speaker 1: haven't figured that out. They are kind of like those monkeys,

531
00:25:03,359 --> 00:25:06,200
Speaker 1: just really throwing darts, just hoping to do better than

532
00:25:06,440 --> 00:25:09,680
Speaker 1: the average. Yeah, and what we're talking about here is volatility, right,

533
00:25:09,680 --> 00:25:11,840
Speaker 1: it's tough to see one of your favorite companies see

534
00:25:11,840 --> 00:25:15,440
Speaker 1: a decline in stock price of like fifty or seventy. Uh,

535
00:25:15,440 --> 00:25:17,400
Speaker 1: and the pandemic like that just gave us a clear

536
00:25:17,440 --> 00:25:20,600
Speaker 1: picture two of of winners becoming losers pretty quickly. Uh.

537
00:25:20,640 --> 00:25:23,680
Speaker 1: You're gonna see these massive swings in price with individual

538
00:25:23,720 --> 00:25:27,879
Speaker 1: stocks as opposed to larger indexes gains and losses. They

539
00:25:27,920 --> 00:25:30,919
Speaker 1: get racked up more quickly, and the swings can feel

540
00:25:30,960 --> 00:25:34,360
Speaker 1: either exhilarating or just like a total gut punch kick

541
00:25:34,440 --> 00:25:38,520
Speaker 1: to the pants. So, for instance, I mentioned the pandemic. Uh,

542
00:25:38,520 --> 00:25:41,760
Speaker 1: for some individual companies, the pandemic was great for business,

543
00:25:41,840 --> 00:25:44,640
Speaker 1: right if you bought Zoom, tal A, Dot Peloton. These

544
00:25:44,680 --> 00:25:47,440
Speaker 1: are all companies where back in early if you would

545
00:25:47,480 --> 00:25:49,080
Speaker 1: have purchased some of them, you would have seen some

546
00:25:49,160 --> 00:25:51,840
Speaker 1: incredible returns of the smart money right there. Yeah, for

547
00:25:51,880 --> 00:25:54,200
Speaker 1: a little bit, you know, just for a while, because

548
00:25:54,200 --> 00:25:57,159
Speaker 1: those stocks are all now far below where they were

549
00:25:57,200 --> 00:25:59,479
Speaker 1: two years ago. The same thing is true with companies

550
00:25:59,520 --> 00:26:02,280
Speaker 1: like Roku in Zillo as well. Does that know, Does

551
00:26:02,280 --> 00:26:04,360
Speaker 1: that mean that those companies are bad? Not at all,

552
00:26:04,720 --> 00:26:07,240
Speaker 1: But it still doesn't mean that owning their stocks outside

553
00:26:07,240 --> 00:26:09,880
Speaker 1: of an index fund that it makes any sense buying

554
00:26:10,359 --> 00:26:13,399
Speaker 1: these individual stocks like they offer the potential for greater gains,

555
00:26:13,400 --> 00:26:16,639
Speaker 1: but it also opens you up to just like the

556
00:26:16,680 --> 00:26:20,679
Speaker 1: psychological pitfalls that don't apply to nearly the same extent

557
00:26:20,720 --> 00:26:23,600
Speaker 1: when you own most of or even all of the

558
00:26:23,640 --> 00:26:26,080
Speaker 1: stocks in index funds. Right, and so we're talking about

559
00:26:26,119 --> 00:26:28,720
Speaker 1: the snpf I fundered index fund or the different total

560
00:26:28,720 --> 00:26:30,760
Speaker 1: stock market index funds that are out there. Yeah, and

561
00:26:30,760 --> 00:26:33,439
Speaker 1: and so when the predictions were being made Matt in

562
00:26:33,480 --> 00:26:35,760
Speaker 1: the heat of the beginning of the pandemic, it was like,

563
00:26:36,160 --> 00:26:38,320
Speaker 1: Zoom is going to change the way we work for

564
00:26:38,359 --> 00:26:41,040
Speaker 1: the rest of our lives. You know, Peloton nobody's going

565
00:26:41,040 --> 00:26:43,560
Speaker 1: back to the gym. Peloton is is gonna take off

566
00:26:43,560 --> 00:26:45,680
Speaker 1: like a rocket ship. And like a lot of these

567
00:26:45,680 --> 00:26:48,960
Speaker 1: companies like they did, and their stock prices went up accordingly.

568
00:26:49,400 --> 00:26:51,280
Speaker 1: But now they've come back down to earth. And and

569
00:26:51,320 --> 00:26:54,320
Speaker 1: many of these stock prices are actually below pre pandemic levels,

570
00:26:54,640 --> 00:26:58,160
Speaker 1: even though these companies did great business during the pandemic.

571
00:26:58,200 --> 00:27:00,280
Speaker 1: And so it's one of those things where would you

572
00:27:00,280 --> 00:27:03,600
Speaker 1: have sold at the top you're you're you're expecting, especially

573
00:27:03,600 --> 00:27:05,480
Speaker 1: if when the stock price is up a hundred and

574
00:27:05,480 --> 00:27:08,520
Speaker 1: fifty percent over a year or something like that. You know,

575
00:27:08,520 --> 00:27:10,480
Speaker 1: what I think is gravy train is gonna keep going,

576
00:27:10,640 --> 00:27:13,840
Speaker 1: but it can change almost overnight. And so that timing piece,

577
00:27:13,840 --> 00:27:16,639
Speaker 1: that volatility piece, is so hard to stomach as an

578
00:27:16,640 --> 00:27:19,000
Speaker 1: individual investor. How do you know win to do what?

579
00:27:19,560 --> 00:27:21,240
Speaker 1: And and then you know, the other part of the

580
00:27:21,240 --> 00:27:24,480
Speaker 1: problem with individual stock investing is the luck piece, because

581
00:27:24,520 --> 00:27:27,520
Speaker 1: you can fool yourself into thinking that you're a great

582
00:27:27,520 --> 00:27:30,640
Speaker 1: stock picker. You know those long time Tesla investors, they

583
00:27:30,680 --> 00:27:33,280
Speaker 1: do look like geniuses right now. And it makes me

584
00:27:33,280 --> 00:27:36,000
Speaker 1: think about our friend Carl, who has a lot of

585
00:27:36,040 --> 00:27:38,200
Speaker 1: his network tied up in that company. We had him

586
00:27:38,720 --> 00:27:41,400
Speaker 1: on the podcast back in episode for one. But even

587
00:27:41,440 --> 00:27:44,280
Speaker 1: he he says, don't do like I did. And you know,

588
00:27:44,320 --> 00:27:46,800
Speaker 1: the route of single stock investing, even though it's been

589
00:27:46,800 --> 00:27:49,159
Speaker 1: good to me, he would say he doesn't recommend it.

590
00:27:49,240 --> 00:27:52,639
Speaker 1: And you know, the question really comes down to what's

591
00:27:52,760 --> 00:27:57,080
Speaker 1: your measure for judging success? And selecting individual stocks is

592
00:27:57,240 --> 00:28:00,479
Speaker 1: kind of like playing a game where it's basically possible

593
00:28:00,520 --> 00:28:03,480
Speaker 1: to determine whether you're good or just lucky. It's kind

594
00:28:03,480 --> 00:28:05,040
Speaker 1: of like risk, where do you think you're good at it?

595
00:28:05,080 --> 00:28:07,520
Speaker 1: But really you're just rolling dice like so much if

596
00:28:07,560 --> 00:28:09,360
Speaker 1: it comes down to the luck of the role. I mean,

597
00:28:09,440 --> 00:28:12,159
Speaker 1: obviously there's a little strategy involved, but it can feel

598
00:28:12,480 --> 00:28:14,760
Speaker 1: kind of like that where there's a good mix of both.

599
00:28:14,800 --> 00:28:18,840
Speaker 1: And so yeah, when stock prices shift by literally overnight,

600
00:28:19,080 --> 00:28:21,919
Speaker 1: it certainly feels more like luck than skill. And I

601
00:28:21,960 --> 00:28:25,040
Speaker 1: just appreciate Karl's mentality even as someone who has picked well,

602
00:28:25,359 --> 00:28:27,800
Speaker 1: he's still got that conviction that it's bad for for

603
00:28:27,840 --> 00:28:30,200
Speaker 1: most people to do. Definitely. Yeah, what I appreciate about

604
00:28:30,200 --> 00:28:32,159
Speaker 1: about him is that he has that self awareness to know,

605
00:28:32,280 --> 00:28:34,439
Speaker 1: I'm not necessarily a genius. I just really believe in

606
00:28:34,440 --> 00:28:36,359
Speaker 1: this company, of this technology and where they're going. He

607
00:28:36,359 --> 00:28:38,440
Speaker 1: di'n't even admit that he's like a little hardheaded and

608
00:28:38,520 --> 00:28:40,600
Speaker 1: kind of just like way too into some of those industries.

609
00:28:40,640 --> 00:28:44,080
Speaker 1: And so he's like he realizes his shortcomings and knows

610
00:28:44,160 --> 00:28:46,920
Speaker 1: that his portfolio portfolio is exposed to more risk because

611
00:28:46,920 --> 00:28:48,960
Speaker 1: of that, right, and he knew what he was getting into.

612
00:28:49,040 --> 00:28:50,600
Speaker 1: And again, it's kind of one of those things where

613
00:28:50,640 --> 00:28:52,240
Speaker 1: it's like he's willing to put some of his money

614
00:28:52,240 --> 00:28:54,240
Speaker 1: at risk, and you know what, He's got plenty of

615
00:28:54,280 --> 00:28:57,280
Speaker 1: wealth in just index funds to cover the rest of

616
00:28:57,280 --> 00:28:59,120
Speaker 1: his life. And so this is really just kind of

617
00:28:59,280 --> 00:29:00,920
Speaker 1: something that he does. Is it's like a passion, it's

618
00:29:00,920 --> 00:29:03,400
Speaker 1: a hobby, it's an interest, and yeah, that's a different

619
00:29:03,440 --> 00:29:05,160
Speaker 1: reason to do it totally. Yeah. I think one of

620
00:29:05,240 --> 00:29:07,400
Speaker 1: the worst things that could possibly happen is that you

621
00:29:07,440 --> 00:29:09,880
Speaker 1: do get lucky initially, because then you think that you

622
00:29:09,920 --> 00:29:12,520
Speaker 1: are an investing genius and then you can potentially follow

623
00:29:12,640 --> 00:29:15,360
Speaker 1: yourself there. Yeah, well, like what if you then end

624
00:29:15,400 --> 00:29:17,600
Speaker 1: up pulling more money in there after that? Right, like

625
00:29:17,600 --> 00:29:20,360
Speaker 1: you end up following those investments with even larger sums

626
00:29:20,400 --> 00:29:23,640
Speaker 1: of money. I could lead to an unbalanced portfolio allocation

627
00:29:23,960 --> 00:29:27,520
Speaker 1: in addition to a route awakening when it corrects. And

628
00:29:27,560 --> 00:29:29,760
Speaker 1: so if you're going to become a single stock investor,

629
00:29:29,800 --> 00:29:33,000
Speaker 1: you gotta make sure you keep accurate records on how

630
00:29:33,000 --> 00:29:35,440
Speaker 1: you're doing so you don't fool yourself into thinking that

631
00:29:35,480 --> 00:29:38,280
Speaker 1: you're a better investor than you actually are. In this way,

632
00:29:38,320 --> 00:29:40,000
Speaker 1: I think that it could almost even be better for

633
00:29:40,040 --> 00:29:43,320
Speaker 1: you if you go all in on a company that

634
00:29:43,400 --> 00:29:46,160
Speaker 1: just ends up just completely bottoming out, because then at

635
00:29:46,240 --> 00:29:48,320
Speaker 1: least there's no way that you can fool yourself, right

636
00:29:48,560 --> 00:29:51,160
Speaker 1: it's like a flood as opposed to just a trickle.

637
00:29:51,360 --> 00:29:54,080
Speaker 1: If you're investing in a bunch of different single stocks

638
00:29:54,080 --> 00:29:57,320
Speaker 1: over time, you're not maybe you're not doing so good, right,

639
00:29:57,360 --> 00:29:59,920
Speaker 1: but the occasional, you know, maybe you hit a like

640
00:30:00,000 --> 00:30:02,560
Speaker 1: a double, like a like a base hit where you're like, oh, okay,

641
00:30:02,920 --> 00:30:04,520
Speaker 1: like that one did pretty good, and it's like just

642
00:30:04,640 --> 00:30:06,720
Speaker 1: enough to kind of keep you interested. Maybe you don't

643
00:30:06,760 --> 00:30:08,880
Speaker 1: keep great records and you, yeah, you're able to kind

644
00:30:08,880 --> 00:30:10,960
Speaker 1: of convince yourself that, you know what, I'm actually doing

645
00:30:11,000 --> 00:30:14,440
Speaker 1: pretty good here. Versus if something completely tanks and let's

646
00:30:14,440 --> 00:30:16,000
Speaker 1: just say you go all in on a single stock

647
00:30:16,040 --> 00:30:18,560
Speaker 1: and it just wipes you out, you've got to admit

648
00:30:18,600 --> 00:30:21,520
Speaker 1: at that point that, wow, I can't keep doing this.

649
00:30:21,600 --> 00:30:24,080
Speaker 1: Like sometimes just one good hard lesson yes, to be

650
00:30:24,120 --> 00:30:26,200
Speaker 1: all you need to kind of correct your behavior exactly.

651
00:30:26,200 --> 00:30:27,920
Speaker 1: And so I guess I'm what we're pointing out is

652
00:30:27,960 --> 00:30:31,080
Speaker 1: the potential danger for you to have just a small

653
00:30:31,120 --> 00:30:34,560
Speaker 1: measure of success even if overall it's not doing as

654
00:30:34,600 --> 00:30:37,000
Speaker 1: well as the something like the SMP, and that success

655
00:30:37,000 --> 00:30:39,800
Speaker 1: can change very quickly. But all right, Matt, We've we've

656
00:30:39,840 --> 00:30:41,200
Speaker 1: got more than we've got to get to you. Let's

657
00:30:41,280 --> 00:30:43,640
Speaker 1: let's talk about some takeaways for people when it comes

658
00:30:43,680 --> 00:30:45,400
Speaker 1: to how they should be investing. Then if we think

659
00:30:45,440 --> 00:30:49,120
Speaker 1: individual stock investing is a fool's errand it's really stupid,

660
00:30:49,120 --> 00:30:52,120
Speaker 1: and that most of our listeners should be avoiding it completely, well,

661
00:30:52,160 --> 00:30:55,040
Speaker 1: then how should they be investing instead? We'll talk about

662
00:30:55,080 --> 00:31:06,720
Speaker 1: that more right after this break. Al Right, we are back,

663
00:31:06,880 --> 00:31:09,320
Speaker 1: and you know now that we have, like we thoroughly

664
00:31:09,400 --> 00:31:11,600
Speaker 1: covered the different reasons that there are a lot of

665
00:31:11,600 --> 00:31:14,200
Speaker 1: folks out there investing in single stocks and why we

666
00:31:14,240 --> 00:31:16,960
Speaker 1: believe that you likely shouldn't be investing in single stocks.

667
00:31:17,000 --> 00:31:19,440
Speaker 1: Let's talk about what you should be doing with your investments.

668
00:31:19,880 --> 00:31:22,000
Speaker 1: And you know what great question to ask yourself is,

669
00:31:22,240 --> 00:31:25,320
Speaker 1: like do I need to outpace the market, because, like,

670
00:31:25,360 --> 00:31:27,560
Speaker 1: I think that's the primary goal of almost anyone out

671
00:31:27,560 --> 00:31:30,000
Speaker 1: there who is investing in single stocks, right, Like they

672
00:31:30,080 --> 00:31:32,920
Speaker 1: want that better than average return. But most of us

673
00:31:32,920 --> 00:31:36,400
Speaker 1: will do just fine building wealth based on the average

674
00:31:36,560 --> 00:31:39,719
Speaker 1: returns on the market. The return on the SMP five

675
00:31:39,760 --> 00:31:42,680
Speaker 1: hundred last year was almost thirty percent. Don't forget that

676
00:31:42,680 --> 00:31:45,400
Speaker 1: that's really good. That being said, average returns are closer

677
00:31:45,400 --> 00:31:47,480
Speaker 1: to something like ten percent, but that is also really

678
00:31:47,480 --> 00:31:49,680
Speaker 1: stinking good. Most of us just don't need to swing

679
00:31:49,840 --> 00:31:52,720
Speaker 1: for the fences. The problem with single stock investing and

680
00:31:52,960 --> 00:31:55,040
Speaker 1: going big is that there's a good chance that you

681
00:31:55,040 --> 00:31:57,680
Speaker 1: know of you solidly connecting with the ball, but that

682
00:31:57,960 --> 00:32:00,160
Speaker 1: you know then ultimately ends up just dying on the

683
00:32:00,160 --> 00:32:03,080
Speaker 1: warning track because of all the pitfalls that we've discussed.

684
00:32:03,080 --> 00:32:05,640
Speaker 1: Look at you using a baseball analogy, specifically, that one

685
00:32:05,720 --> 00:32:08,560
Speaker 1: was for usual, Who are you right now? No, I

686
00:32:08,560 --> 00:32:11,160
Speaker 1: think it's a good point. Base hits, doubles, triples, It

687
00:32:11,200 --> 00:32:13,600
Speaker 1: looks good, it looks sexy. Baseball season, they say, at

688
00:32:13,680 --> 00:32:15,400
Speaker 1: least when we were growing up, chicks ticked a long ball.

689
00:32:15,440 --> 00:32:17,320
Speaker 1: It was kind of the phrase that people would use,

690
00:32:17,440 --> 00:32:19,120
Speaker 1: and yeah, you you hit it, You hit it heaving

691
00:32:19,160 --> 00:32:21,040
Speaker 1: for the fences. Literally. In a spring training game the

692
00:32:21,080 --> 00:32:23,320
Speaker 1: other day, the new Brave first baseman hit hit a

693
00:32:23,360 --> 00:32:24,880
Speaker 1: ball and it looked like it was going to the fence.

694
00:32:25,160 --> 00:32:28,320
Speaker 1: Someone leapt up and made an amazing catch rob the

695
00:32:28,320 --> 00:32:30,600
Speaker 1: home run. And that, to me is what single stock

696
00:32:30,640 --> 00:32:33,440
Speaker 1: investing can feel like. It feels just like that and

697
00:32:33,480 --> 00:32:36,160
Speaker 1: so and it's the tweet from a certain you know,

698
00:32:36,200 --> 00:32:38,440
Speaker 1: different CEOs out there that keeps it from actually being

699
00:32:38,440 --> 00:32:40,520
Speaker 1: a homer. You can't you can do it. It's like, oh,

700
00:32:40,520 --> 00:32:42,040
Speaker 1: we're so closed, buddy, why did you go through it?

701
00:32:42,200 --> 00:32:43,880
Speaker 1: So really, what you were just talking about his goal setting,

702
00:32:44,000 --> 00:32:45,800
Speaker 1: and it's that people need to ask themselves, like, what

703
00:32:45,840 --> 00:32:49,160
Speaker 1: are my goals here? And if your goal is to

704
00:32:49,600 --> 00:32:51,720
Speaker 1: try to grow your money as quickly as possible to

705
00:32:51,720 --> 00:32:54,400
Speaker 1: try to get rich quick, then you're going to need

706
00:32:54,440 --> 00:32:58,160
Speaker 1: to probably partake in a lot of individual stock investing.

707
00:32:58,160 --> 00:33:00,920
Speaker 1: You're gonna need to take higher risks. But we talked

708
00:33:00,920 --> 00:33:04,040
Speaker 1: about recently, you know why getting wealthy and attempting to

709
00:33:04,080 --> 00:33:06,040
Speaker 1: get wealthy over the long term is so much better

710
00:33:06,160 --> 00:33:08,720
Speaker 1: than trying to get rich. And I think single stock investing,

711
00:33:08,720 --> 00:33:10,840
Speaker 1: that's something that people fall prey to is they think

712
00:33:10,840 --> 00:33:13,800
Speaker 1: they need to build up their their war chest of

713
00:33:13,880 --> 00:33:16,600
Speaker 1: investment dollars more quickly than they actually need to. And

714
00:33:16,600 --> 00:33:19,840
Speaker 1: those average returns are actually going to be plenty when

715
00:33:19,880 --> 00:33:22,480
Speaker 1: it comes to building wealth over over years and decades.

716
00:33:22,680 --> 00:33:25,040
Speaker 1: And so yeah, the next takeaway, the next thing you

717
00:33:25,080 --> 00:33:26,560
Speaker 1: need to think about when it comes to how you

718
00:33:26,640 --> 00:33:31,240
Speaker 1: invest is diversification and how it's the real winning strategy

719
00:33:31,360 --> 00:33:34,360
Speaker 1: because totally total stock market funds or the SMP five

720
00:33:34,720 --> 00:33:38,360
Speaker 1: index funds. Those are what we typically recommend. Target date

721
00:33:38,360 --> 00:33:41,280
Speaker 1: funds are another great option for lots of folks. But

722
00:33:41,280 --> 00:33:43,640
Speaker 1: but each of those funds is going to buy you

723
00:33:43,720 --> 00:33:47,120
Speaker 1: a massive basket of different companies. Do you own the

724
00:33:47,200 --> 00:33:50,240
Speaker 1: loser companies? Yes, yes you do, but you also own

725
00:33:50,480 --> 00:33:53,960
Speaker 1: the winners, And so owning that diverse basket of hundreds

726
00:33:54,040 --> 00:33:57,200
Speaker 1: or or even thousands of stocks, it means you're gonna

727
00:33:57,200 --> 00:34:00,160
Speaker 1: be average. And most people they bought that because as

728
00:34:00,560 --> 00:34:03,320
Speaker 1: everybody wants to be better than average at pretty much everything,

729
00:34:03,400 --> 00:34:05,800
Speaker 1: and most of us are unwilling to admit when we

730
00:34:05,840 --> 00:34:08,879
Speaker 1: are average or maybe even below average at things. And

731
00:34:09,080 --> 00:34:12,399
Speaker 1: the problem is, Matt, I think that most people think

732
00:34:12,480 --> 00:34:15,560
Speaker 1: that working harder or developing more of a skill at

733
00:34:15,600 --> 00:34:17,920
Speaker 1: something is going to make them a better investor. But

734
00:34:17,920 --> 00:34:20,520
Speaker 1: an investing it just doesn't work like that. It works

735
00:34:20,520 --> 00:34:22,200
Speaker 1: like that in almost every other facet of life, Like

736
00:34:22,239 --> 00:34:24,959
Speaker 1: the harder you work and the more skill that you hone,

737
00:34:25,080 --> 00:34:26,759
Speaker 1: you're going to get better at your job. You're gonna

738
00:34:26,800 --> 00:34:29,440
Speaker 1: become a better parent, you're gonna become better at a

739
00:34:29,440 --> 00:34:31,680
Speaker 1: whole lot, maybe a better swimmer. Like whatever your hobby is,

740
00:34:31,760 --> 00:34:34,280
Speaker 1: the more you practice it, you're gonna get better. Um,

741
00:34:34,320 --> 00:34:37,319
Speaker 1: but that's just not the case with stock picking. And

742
00:34:37,360 --> 00:34:40,799
Speaker 1: so yeah, owning fewer handpick stocks, we would say, gives

743
00:34:40,840 --> 00:34:44,040
Speaker 1: you a chance and outperforming, but you've also then got

744
00:34:44,080 --> 00:34:47,440
Speaker 1: better odds of severely underperforming too. Makes me think of

745
00:34:47,480 --> 00:34:48,960
Speaker 1: that bet I think we've talked about it on the show,

746
00:34:49,000 --> 00:34:52,080
Speaker 1: Matt that Warren Buffett had with a hedge fund manager,

747
00:34:52,440 --> 00:34:54,719
Speaker 1: and this was over a ten year period and it

748
00:34:54,760 --> 00:34:56,600
Speaker 1: was a million dollar bet. They gave the million dollars

749
00:34:56,640 --> 00:34:58,520
Speaker 1: to charity. Who do you think ended up winning that?

750
00:34:58,560 --> 00:35:02,840
Speaker 1: Our old pal Warren Buffe course, he never loses, and uh,

751
00:35:03,000 --> 00:35:05,760
Speaker 1: he loses very infrequently, Yes he does. He does overall

752
00:35:05,760 --> 00:35:08,600
Speaker 1: heat mostly a winner. And basically what happened over that

753
00:35:08,640 --> 00:35:10,879
Speaker 1: ten year period, the hedge fund manager was like, oh yeah,

754
00:35:10,880 --> 00:35:13,040
Speaker 1: we'll crush you. What did Warren to do? He invested

755
00:35:13,080 --> 00:35:17,040
Speaker 1: in the sex fund like super Basic, bought all the stocks,

756
00:35:17,320 --> 00:35:20,839
Speaker 1: and he made a return over that ten year period

757
00:35:20,880 --> 00:35:25,080
Speaker 1: the hedge fund return. It's a big difference. And so yeah,

758
00:35:25,080 --> 00:35:28,240
Speaker 1: that diversification not only does it provide peace of mind,

759
00:35:28,360 --> 00:35:30,160
Speaker 1: but it ensures that you're going to be average, and

760
00:35:30,200 --> 00:35:33,000
Speaker 1: that is actually not a bad thing. Exactly well, I mean,

761
00:35:33,200 --> 00:35:34,879
Speaker 1: on the topic of being average, I think it kind

762
00:35:34,880 --> 00:35:37,239
Speaker 1: of comes down to, like, so often what we hear

763
00:35:37,320 --> 00:35:39,520
Speaker 1: is that it's not good to be average, right, Like,

764
00:35:39,560 --> 00:35:41,600
Speaker 1: we want to be exceptional, we want to be the standouts.

765
00:35:42,120 --> 00:35:43,839
Speaker 1: But it just depends on what you're talking about. If

766
00:35:43,840 --> 00:35:46,840
Speaker 1: you're talking about the average American, sure, like you probably

767
00:35:47,000 --> 00:35:48,759
Speaker 1: don't want to be like the average American. That's because

768
00:35:48,760 --> 00:35:52,400
Speaker 1: the average American has balance on their credit cards right now,

769
00:35:52,600 --> 00:35:55,279
Speaker 1: watches four hours of TV exactly, or they have like

770
00:35:55,320 --> 00:35:58,360
Speaker 1: around forty in student loans. These aren't the kind of

771
00:35:58,360 --> 00:36:00,640
Speaker 1: averages that you want to a spy or to be like.

772
00:36:00,719 --> 00:36:02,600
Speaker 1: But when we're talking about the market, when we're talking

773
00:36:02,600 --> 00:36:05,239
Speaker 1: about growing your net worth of your portfolio by ten

774
00:36:05,320 --> 00:36:08,839
Speaker 1: percent every year, that's the kind of average that sounds awesome. Yeah,

775
00:36:09,120 --> 00:36:10,880
Speaker 1: that's the kind of average that we want to be. Like,

776
00:36:10,920 --> 00:36:12,920
Speaker 1: that's like hitting a triple every single game and you

777
00:36:12,920 --> 00:36:14,279
Speaker 1: know what, all the time, You're gonna stay in the

778
00:36:14,320 --> 00:36:16,560
Speaker 1: major like fifteen years if you do that. Yeah, absolutely,

779
00:36:16,600 --> 00:36:19,520
Speaker 1: I mean, honestly, like, despite all of the other reasons

780
00:36:19,640 --> 00:36:21,719
Speaker 1: not to invest your hard earned money into just a

781
00:36:21,719 --> 00:36:24,600
Speaker 1: few companies single stock investing, it just takes more time,

782
00:36:24,640 --> 00:36:26,879
Speaker 1: it takes more brain space. That being said, like, I'm

783
00:36:26,880 --> 00:36:30,120
Speaker 1: definitely willing to give more of my cognitive abilities to

784
00:36:30,640 --> 00:36:33,239
Speaker 1: something where I can make more money. I'm specifically thinking

785
00:36:33,239 --> 00:36:35,680
Speaker 1: about owning rental properties. That's one of the things that

786
00:36:35,800 --> 00:36:38,120
Speaker 1: requires a little bit more time and attention compared to

787
00:36:38,160 --> 00:36:41,880
Speaker 1: passively investing in the market. While I definitely love me

788
00:36:41,920 --> 00:36:44,560
Speaker 1: some index funds, I also love owning local real estate.

789
00:36:45,160 --> 00:36:48,560
Speaker 1: But there's a replicable business model here and it's got

790
00:36:48,600 --> 00:36:51,360
Speaker 1: a lot less risk attached to it. Investing in the

791
00:36:51,480 --> 00:36:53,680
Speaker 1: market is just one of those rare arenas. Like you said,

792
00:36:53,640 --> 00:36:57,000
Speaker 1: you'll we're working harder, doing more, It almost always leads

793
00:36:57,040 --> 00:36:59,960
Speaker 1: to worse results. It's it's just shocking me because now

794
00:37:00,040 --> 00:37:02,520
Speaker 1: thing else in live works like that. Um Like, you're

795
00:37:02,520 --> 00:37:04,319
Speaker 1: you're gonna get ahead in your job. You're gonna build

796
00:37:04,320 --> 00:37:06,919
Speaker 1: that muscle mass more quickly by putting in more work,

797
00:37:07,080 --> 00:37:09,120
Speaker 1: And it's just not the case with investing in the

798
00:37:09,120 --> 00:37:12,200
Speaker 1: stock market for most folks. In this case, the lazier

799
00:37:12,200 --> 00:37:13,480
Speaker 1: that you are, the better off you're gonna do. And

800
00:37:13,520 --> 00:37:15,359
Speaker 1: almost nobody gives you permission to be lazy. But we're

801
00:37:15,360 --> 00:37:17,040
Speaker 1: gonna give you permission to be lazy when it comes

802
00:37:17,040 --> 00:37:18,799
Speaker 1: to how you invest. And if you just go the

803
00:37:18,880 --> 00:37:21,120
Speaker 1: lazy route, it's gonna end up better for you. Like

804
00:37:21,320 --> 00:37:24,600
Speaker 1: pay less attention to your your overall health, pay less

805
00:37:24,600 --> 00:37:27,160
Speaker 1: attention to maintaining your car, pay less attention to your

806
00:37:27,160 --> 00:37:28,799
Speaker 1: rebody's gonna tell you that. We're not going to tell

807
00:37:28,800 --> 00:37:31,719
Speaker 1: you that, but pay less attention to you know, your investments,

808
00:37:31,960 --> 00:37:35,080
Speaker 1: and go actually will panel stupid simple route. Yeah, you

809
00:37:35,120 --> 00:37:37,799
Speaker 1: just mentioned basically simplicity is the key there that if

810
00:37:37,840 --> 00:37:40,000
Speaker 1: you keep it, if you keep it simple, it means

811
00:37:40,120 --> 00:37:42,640
Speaker 1: you don't have to do all that research that that

812
00:37:42,800 --> 00:37:45,359
Speaker 1: sounds honestly daunting, um to try to figure out which

813
00:37:45,360 --> 00:37:47,759
Speaker 1: companies to invest in. You can go to the lazy

814
00:37:47,840 --> 00:37:51,719
Speaker 1: route and still succeed, which I think is impressive. And um,

815
00:37:51,760 --> 00:37:54,279
Speaker 1: that's a winning argument from where I'm sitting at least.

816
00:37:54,520 --> 00:37:56,600
Speaker 1: And so yeah, if if you really really are the

817
00:37:56,680 --> 00:37:59,480
Speaker 1: kind of person who wants to buy single stocks for fun,

818
00:38:00,239 --> 00:38:02,200
Speaker 1: here's what we're gonna say, go for it, right, because

819
00:38:02,360 --> 00:38:05,960
Speaker 1: we can't necessarily convince you otherwise. And so just make

820
00:38:06,000 --> 00:38:07,920
Speaker 1: sure that you're doing it with only a small amount

821
00:38:07,920 --> 00:38:11,040
Speaker 1: of your portfolio. We suggest really at most five percent

822
00:38:11,120 --> 00:38:14,960
Speaker 1: of your overall investment to be dedicated to outlier investments,

823
00:38:15,080 --> 00:38:17,440
Speaker 1: which we're gonna call them, like crypto or single stocks,

824
00:38:17,440 --> 00:38:20,360
Speaker 1: and five percent combined, not like five percent of each. Right, So,

825
00:38:20,440 --> 00:38:22,560
Speaker 1: if you've got a hundred thousand dollars, gonna put five

826
00:38:22,600 --> 00:38:25,440
Speaker 1: percent towards crypto, five percent towards single stocks, five percent

827
00:38:25,480 --> 00:38:28,000
Speaker 1: towards art no, no, no no, five percent combined, five percent

828
00:38:28,040 --> 00:38:31,120
Speaker 1: towards farmland no or maybe like a bottle of wine

829
00:38:31,120 --> 00:38:33,839
Speaker 1: on veno vests and that kind of stuff. But really

830
00:38:33,880 --> 00:38:36,520
Speaker 1: it's tough to create something like a firewall to prevent

831
00:38:36,560 --> 00:38:39,600
Speaker 1: that interest from spreading and contaminating the rest of your

832
00:38:39,640 --> 00:38:42,920
Speaker 1: portfolio that you've decided to be boring with, right, that

833
00:38:42,960 --> 00:38:45,600
Speaker 1: you decided to go the lazy route, And one way

834
00:38:45,680 --> 00:38:48,840
Speaker 1: to do that is to only invest in single stocks,

835
00:38:48,920 --> 00:38:52,359
Speaker 1: let's say, inside of a brokerage account, and only after

836
00:38:52,400 --> 00:38:55,320
Speaker 1: you've maxed out those tax advantaged accounts. And and basically

837
00:38:55,400 --> 00:38:57,560
Speaker 1: that's going to ensure that you take the prudent route

838
00:38:57,840 --> 00:39:00,239
Speaker 1: with the vast majority of your investment dollars, right, and

839
00:39:00,280 --> 00:39:03,040
Speaker 1: that you can enjoy trading single stocks with fun money

840
00:39:03,040 --> 00:39:05,160
Speaker 1: on the side, and you're not actually gonna be worried

841
00:39:05,160 --> 00:39:08,439
Speaker 1: about losing your retirement dollars by doing it, and so yeah,

842
00:39:08,640 --> 00:39:11,440
Speaker 1: ultimately we're offering our opinion here. You don't have to

843
00:39:11,440 --> 00:39:13,520
Speaker 1: agree with us, but it is something that we feel

844
00:39:13,560 --> 00:39:16,360
Speaker 1: strongly about, and you know, unless we're confronted with data

845
00:39:16,440 --> 00:39:19,000
Speaker 1: that shows otherwise, we're going to kind of keep singing

846
00:39:19,000 --> 00:39:22,320
Speaker 1: this tune. Obviously, hindsight, if I had a time machine,

847
00:39:22,320 --> 00:39:24,239
Speaker 1: I'd go back to and put a lot of money

848
00:39:24,239 --> 00:39:26,400
Speaker 1: in Tesla because I'm not an idiot, but most of

849
00:39:26,480 --> 00:39:30,400
Speaker 1: us we don't have that sort of prognostication ability. No, yeah, absolutely,

850
00:39:30,400 --> 00:39:32,560
Speaker 1: what other things do you wanted to mention? Just because

851
00:39:32,680 --> 00:39:34,719
Speaker 1: now you know that you should be investing in index funds,

852
00:39:34,719 --> 00:39:37,120
Speaker 1: that doesn't necessarily mean that you should be investing right

853
00:39:37,120 --> 00:39:39,680
Speaker 1: out of the gate. As well, there are other foundational

854
00:39:39,680 --> 00:39:41,960
Speaker 1: steps that you need to take with your personal finances,

855
00:39:41,960 --> 00:39:43,839
Speaker 1: like paying off high interest rate debt, things like that.

856
00:39:43,840 --> 00:39:45,399
Speaker 1: You want to make sure you've got that emergency fund

857
00:39:45,440 --> 00:39:47,480
Speaker 1: set up. Those are some of the initial money gears

858
00:39:47,480 --> 00:39:50,440
Speaker 1: that you need to power through first before you are

859
00:39:50,520 --> 00:39:53,320
Speaker 1: investing substantial amounts of your money. If you haven't listened

860
00:39:53,320 --> 00:39:55,719
Speaker 1: to that episode, it was three o two. That's where

861
00:39:55,760 --> 00:39:59,000
Speaker 1: we introduced the idea of the money gears. We recommend

862
00:39:59,040 --> 00:40:00,800
Speaker 1: that you go back and listen to that one as well.

863
00:40:01,160 --> 00:40:03,719
Speaker 1: But speaking of gears, let's shift gears. So let's get

864
00:40:03,719 --> 00:40:06,120
Speaker 1: back to the beer that you and I shared during

865
00:40:06,160 --> 00:40:08,560
Speaker 1: this episode. And we shared one, but this is one

866
00:40:08,640 --> 00:40:11,279
Speaker 1: where oftentimes like it's a smaller bottle. I definitely could

867
00:40:11,320 --> 00:40:14,480
Speaker 1: have enjoyed my own bottle of this instead of sharing.

868
00:40:14,520 --> 00:40:17,640
Speaker 1: I should have picked up. That's a Joel failed right there.

869
00:40:17,800 --> 00:40:20,279
Speaker 1: I'll claim it. It's what it's like, slightly smaller. It's

870
00:40:20,280 --> 00:40:23,200
Speaker 1: definitely not a sixty ounce point um, but it's an

871
00:40:23,200 --> 00:40:25,520
Speaker 1: eleven point two ounces, and I swear I missed that

872
00:40:25,560 --> 00:40:28,560
Speaker 1: point eight ounces. Uh, it's a point four each of

873
00:40:28,560 --> 00:40:30,880
Speaker 1: this delicious beer. But yeah, what are your thoughts on it? Okay?

874
00:40:30,960 --> 00:40:33,680
Speaker 1: So I really enjoyed it, and I agree I could

875
00:40:33,719 --> 00:40:36,120
Speaker 1: have used a little bit more because it's I love

876
00:40:36,200 --> 00:40:38,120
Speaker 1: me a good quad. I think it's the first style

877
00:40:38,160 --> 00:40:40,160
Speaker 1: of beer I was really attracted to when I started

878
00:40:40,200 --> 00:40:44,320
Speaker 1: drinking craft beer. And and this is like dark fruits.

879
00:40:44,360 --> 00:40:47,000
Speaker 1: It's gotten a velvety kind of vibe going on. It's

880
00:40:47,160 --> 00:40:52,200
Speaker 1: rich and MALTI and what's better than a good Trappist quad? Um,

881
00:40:52,320 --> 00:40:54,640
Speaker 1: not many things. And so if you like dark beers,

882
00:40:54,640 --> 00:40:56,839
Speaker 1: if you're into stouts but don't really haven't really given

883
00:40:56,920 --> 00:41:00,120
Speaker 1: quads a shot, then I would say, like, get you

884
00:41:00,160 --> 00:41:03,960
Speaker 1: a legit Belgian Trappist quad because they're they're what like

885
00:41:04,000 --> 00:41:06,279
Speaker 1: seven or eight Trappist brewers I think around the world,

886
00:41:06,760 --> 00:41:08,680
Speaker 1: most of them are in Belgium. Yeah, you're talking about

887
00:41:09,239 --> 00:41:11,719
Speaker 1: an article you came across some warmer in danger of

888
00:41:12,040 --> 00:41:14,759
Speaker 1: not producing as much beer in the future because as

889
00:41:14,760 --> 00:41:16,920
Speaker 1: many people who want to be monks apparently like uh

890
00:41:16,960 --> 00:41:19,520
Speaker 1: and so does that surprise you? No, it doesn't. But

891
00:41:19,600 --> 00:41:21,560
Speaker 1: what when I think needs to happen in me to

892
00:41:21,680 --> 00:41:25,080
Speaker 1: live the celibate life. I think I think they need

893
00:41:25,120 --> 00:41:27,160
Speaker 1: some monk influencers on TikTok is what they need to do.

894
00:41:27,239 --> 00:41:29,359
Speaker 1: That's gonna be what jump starts them. Is that gonna

895
00:41:29,360 --> 00:41:31,359
Speaker 1: be the tipping point. It's gonna be the proper recruiting tool,

896
00:41:31,400 --> 00:41:33,279
Speaker 1: I think, hopefully, because I would hate to see this

897
00:41:33,280 --> 00:41:35,680
Speaker 1: style die out. But I agree that you've got those

898
00:41:35,719 --> 00:41:39,239
Speaker 1: like those dark caramelized you know, caramel like flavors. Uh,

899
00:41:39,400 --> 00:41:41,640
Speaker 1: it's just super warming. This isn't honestly the kind of

900
00:41:41,640 --> 00:41:43,880
Speaker 1: beer that you want to enjoy on a spring pre

901
00:41:44,040 --> 00:41:46,600
Speaker 1: summer day as the temperatures are rising. This is more

902
00:41:46,680 --> 00:41:49,840
Speaker 1: kind of like sitting around the fire at Christmas, Like

903
00:41:50,239 --> 00:41:51,880
Speaker 1: that's when you want to typically pull out like a

904
00:41:51,880 --> 00:41:55,320
Speaker 1: Belgian quad because it's just full bodied, lots of different flavors,

905
00:41:55,360 --> 00:41:56,960
Speaker 1: real bready, almost like you kind of have like a

906
00:41:57,000 --> 00:41:58,840
Speaker 1: fresh loaf right out of the oven. It's just very

907
00:41:59,160 --> 00:42:01,839
Speaker 1: makes makes it feel like you're at home somehow. But yeah,

908
00:42:01,840 --> 00:42:03,880
Speaker 1: I totally agree. If I would say, if you have

909
00:42:03,920 --> 00:42:06,560
Speaker 1: been drinking, if you're like, oh, I like Guinness or

910
00:42:06,600 --> 00:42:08,719
Speaker 1: I like some of those darker beers, go in the

911
00:42:08,760 --> 00:42:12,200
Speaker 1: direction of Belgian quads, because it'll maintain some of those

912
00:42:12,320 --> 00:42:14,600
Speaker 1: darker flavors, but it will definitely just punched it up

913
00:42:14,600 --> 00:42:16,400
Speaker 1: a little bit and give you a lot more to

914
00:42:16,480 --> 00:42:18,920
Speaker 1: taste as you're drinking this. A variety of notes going

915
00:42:18,960 --> 00:42:21,440
Speaker 1: on in a quad is just superior typically to what

916
00:42:21,560 --> 00:42:23,680
Speaker 1: you get in a stout, at least the stout that

917
00:42:23,760 --> 00:42:25,719
Speaker 1: doesn't have a bunch of adjuncts thrown in it. But

918
00:42:26,280 --> 00:42:27,960
Speaker 1: I saw, I'm always game for these kind of beers.

919
00:42:28,160 --> 00:42:30,040
Speaker 1: This one I hadn't had in years. It was good

920
00:42:30,080 --> 00:42:32,399
Speaker 1: to have this one again today on the show. And again,

921
00:42:32,440 --> 00:42:33,960
Speaker 1: I don't know if I'm going to pronounce this correctly,

922
00:42:34,000 --> 00:42:37,600
Speaker 1: but it's trappistas roquefort is that Does that sound right?

923
00:42:37,640 --> 00:42:41,760
Speaker 1: I say roach ft, but roach a fork. It's definitely

924
00:42:41,800 --> 00:42:45,720
Speaker 1: not that. But we will will suddenly past the picture

925
00:42:46,000 --> 00:42:48,439
Speaker 1: up like we normally do within our show notes for

926
00:42:48,480 --> 00:42:50,520
Speaker 1: this episode up on the website at how to money

927
00:42:50,560 --> 00:42:52,840
Speaker 1: dot com. But Joel, that's gonna be at Buddy. So

928
00:42:53,000 --> 00:43:04,360
Speaker 1: until next time, best friends out, best Friends Out. M