Warren Buffett's Investment Philosophy

welcome to the cash flow Academy podcast this is where we make investing simple we're going to have lots of fun today uh I'm joined by my good friends Corey holiday and Noah Davidson gentlemen thanks for joining happy to be here as always we look forward to this stuff um go to Stu not my investing class your your investing class.com did I say that did I say my investing no you said you said your I was just who's on first yeah what's on I don't know no he's on third oh that's bad speaking of bad uh are they what do you say why' you look at me when you say speaking of B no I well you were you were defining I didn't mean that you were defining uh trying to find the difference between an idiom and a collo talking about like I struggle to say the word colloquial colloquial colloquial you kind of go into it now collo I can't I can't say the word what's the difference stock market sayings I don't know and is a group of words like raining cats and dogs yeah so we're going to do uh we thought it would be fun to uh just do a bunch of wisdom uh that comes out there because when when things become a saying you know a penny Sav is a penny earned well that's not true anymore but yeah but it used to be and so it sticks you know it's a saying because it's saying so we're going to we're going to go around the table and have a little fun today maybe a little less serious but yet a lot of wisdom we're going to see how many of these we can come up with off the cuff uh with little to no preparation there was no preparation whatsoever yeah Cy says let's come up up with all of our sayings stock market sayings stock market sayings okay so we're g to what's our format are we going to like take turns going around are we going to comment on the wisdom like actually talk about that I we're just making stuff up as we go absolutely let's make this is going to go great let's make this is going to be the number one rated podcast we have ever done I promise I no actually it's the one where we got canceled that's what it's going to go down in history as that'll take me good depends on how many sayings we go all right uh who wants to throw out a saying all right I'll start with the trend is your friend all right the trend that do you know who said it or is that just I have no idea who said it I don't know but I've always found that to be better advice for Traders than investors whoever it was was a technical analyst yes they were they were a technician they were a chartist yes for sure but no the trend is your friend because when when you get into a trending Market especially like the one we've had recently that's really tough to beat on you know shortterm time frame any sort of day trading position trading holding for that Trend now the the challenge with that is sometimes the trend will turn the friend will turn around and stab you in the back if you're not careful so you got to know have your exit strategy have an exit strategy know how to define the end of a trend but a trending Market is awesome when they come around that's what the uh the the whole idea is you know there's another called don't fight the fed and the idea is to go with the flow so there's three of them go with the flow don't fight the fed the trend is let things come to you take what the defense gives you there you go right and so uh yeah if you're a Trader you you I I remember uh red Anderson who was one of the first guys that he was kind of a we all start out as sales guys selling software and then we have to learn how to trade later right right pretty much and he was in that camp and and he said uh the trend is your friend we talked about shorting a stock in a broad Market that's going up and how dumb that could be how that's like a recipe that's like swimming Upstream that is even if it's then you'll be up a creek without a paddle paddle exactly this is the ratings are dropping man it's like nope they're going up I promise this is the content they come for someone's going to type a comment well at least these guys think they're funny you know anyway we laugh at our own dad jokes but Rett said uh he said hey you you want to lose money faster in any way find a fundamentally weak thing and figure that you can beat a a trend and yeah the Detachment between fundamentals and technicals is often significant it's a material Detachment often and so if you're going to be a Trader the trend is your friend is your friends on the investing side it it's okay to kind of go against the trend I feel like because you know that's a Warren Buffett adage that's another one buy when others are fearful that's that's my favorite all right now that's an investing philosophy contrarian uh idea and I love that in fact I I have that oh I'm I'm coughing he's getting emotional just thinking about it yeah when I when I laugh I cough so actually have that one on my wall yeah and he said uh I will tell you how to become rich I can give you the whole saying I can tell you how to become rich close the doors uh be fearful when people are greedy and be greedier people when people are fearful which is almost contrast to going with the flow but to me they're on sale I think that like that summation by Buffett actually is a it's it's hard to understate it or overstate it yeah um because it really is how things are bought we last uh time we got together we went through the letter mhm and he said that you know we're getting kind of big when you control five excuse me 5% of everything um it's hard to move that much money into the next thing that's going to double right you're not going to find what Peter Lynch called the 10 bagger that's right that's right 10 bagger is that a gol is that a bowling term what is that is it a th000 % yeah yeah 10 bagger is 10x so you're not going to find the 10 bagger but what except he kind of left himself a little room and he called it the shooting the fish in a barrel experience right you need the market to essentially cooperate with you finding a 10 bagger and the only way you're going to do that like he said all of these major corporations have been picked over by them and by everyone else so the idea that they're going to find a major corporation that's just going to explode in value that's very difficult to do unless the market gives you that opportunity and so there are sort of two different philosophies but I think they apply to two different sets of people when you're trading it's important to go with the trend when you're a long-term investor that's when the best opportunities are in fact when you're in a violent vicious downturn and that's where you can do your real buying and make a a meaningful difference so let's talk about what Bogle said about uh like okay so you're saying he's not going to find the needle in the hay stack that's right so buy the whole hay stack say that got yeah so what's the whole saying together well he said quit looking for the needle and the hay stack just buy the whole hay stack okay now that could mean a lot of different stuff I think you could take that I think what let's not put words in bogle's mouth I think what he was talking about was he was a big fan of diversification of indexes and let's talk about this when you like we have all read Warren Buffett's stuff a lot like you read his stuff and there is a line when he speaks and he speaks to uneducated investors basically people who he refers to is who don't know how to analyze a business fundamental analyst and then he speaks to people who do know how to analyze a business and he says for those who know how to analyze a business to a good degree they have fundamental analyst skills he said it may it's Madness to diversify yeah he says to take your list from one to 50 and your list attractiveness and put money on all 50 instead of concentrating on number one two 3 4 uh he says that strikes me in Charlie is madness is what he says but he says but and he goes over the line of the UN says but if you can't do it then you know if if all you're trying to do is not get killed relative to the market well diversification will do it so when Bogle says buy the whole T stack does he mean diversify or could he possibly mean which what I would agree with more is play Monopoly you land on it you buy it you land on it you buy it and because if because Buffett's kind of there in that you know he owns 5% of everything now I mean he owns 5% of the like S&P 500 of dollars and earning power and production he just owns the whole dang thing and in that sense he does own the whole St stack so what do you think it is you think he's talking about I think he's talking about diversification but I'd rather interpret as Monopoly buy everything yeah and he was a big fan of of index I mean that's Vanguard he's the founder of Vanguard and they're known for their index funds and their lower expense ratios and all of that Q Noah on fees yeah fees but his well he is selling mutual funds right he is and and his business relied on people buying those index funds and then he would collect a little fee now he was great in that he brought fees in the entire industry way down way down so give him credit where credits due but way down by leing making more of them even after even after he left Vanguard he became even more when he left the company he founded he became almost like a Old Testament profet out there saying don't pay fees yeah and so his advice for most people and it's really to the uneducated is look you don't know how to do a fundamental analysis so you should just be Diversified in the S&P 500 uh you know don't try to find the needle in the Hy stack just buy the whole index and now you're going to participate with the market and I think that's his advice but like you said Warren Buffett would say if you know what you're doing it's Madness to diversify all of your Capital away when you can concent trade on these very best ideas and if you look at Warren Buffett's the reason that he's vastly outperformed the markets for decades and decades has been he didn't diversify he found the best fundamental opportunities and focused on those and he bought when people were selling when they were fearful right you bought when they were fearful so those two work together I'll tell you diversification is a admission of ignorance and it requires absolutely zero intelligence to do whatever the Market's going to do anyway to take what the market gives you and the the fact of the matter is Wall Street takes that approach most of the time uh as they collect their fees so uh which brings us to Wall Street is the only place where people what is it people in a r Royce take advice from the people that took the subway is that is that what it was believe that is it I probably butchered that saying but that was Warren Buffett as well so I like that the the uh the Bulls go up the stairs and the Bears jump out out the window especially if they get a margin call literally yeah I originally I originally heard that as the Bulls take this you know the stairs the Bears take the escalator something like that but I'm like then I heard the window might St up elevator down different down Downs fast up slow um which is true because I think fear is more powerful than greed but the the fear is punctuated by greed because the Bears can sell High adding liquidity to the market driving price is down and they can buy low so when you when you find the a you know when the market sentiment has turned truly fearful There's an opportunity there to make money quickly but you have to know what you're doing you have to know what offset the risk because when markets go down fast they also rip up fast short term so as a technician you can watch things kind of grind up slowly slowly slowly they typically slow down first they kind of nobody wants to admit that it's too expensive and then eventually it'll come down quick and it takes a real quick turn and then it kind of bounces back up it's like we are are we still doing this to to your point did you know that the top 10 if you went through the top 10 strongest days in the stock market they all happened in bare Market Market yep because it's that violent you crash down but then you spike back up and then you kind of Crash again and that sort of thing so if you go back it's a it's a who who of like 1987 and uh 2008 eight and the global financial crisis you go back to the depression and some of those periods of time so the top 10 days for the market to go up or actually when and that's because of volatility right volatility goes up buy cover their positions because if they sell to open and then the market reverses on them they have to buy to cover and it can drive the markets up really really fast when especially when you get a bunch of short sellers all trying to do the same thing at the same time and then some investor comes in with a lot of money and says this looks like a good price to buy and then they buy and they can cause you know a floor and then it forces the Bears to buy to cover and and so it's it's really fascinating to watch a market like I've watched several bare markets play out over the years and they they're they're exciting they are violent they are not for beginners and you know if in doubt sit it out that's a good Market saying for you there you go but if you if you get used to learning how to gauge these things and that's what we teach at the cash flow Academy you start to understand that volatility now that we can recognize and measure what's happening we know that that ramps up in a bearish market environment so that's great for downside trades to trade with the trend to the downside it's great for the investor that wants to put some money to work to do that in a bare Market because that's where you're getting those great prices but you have to know what you have to have enough knowledge to know what environment you're in it is so important this is why the four pillars means a lot is there is a distinction and there is a separation between the first and second pillar and it always has to be in your mind the the the the segregation of those two ideas is really important because what we've been talking about really is emotional volatility that that the the markets are going up and down or Price going because of emotional volatility that is 100% technical but if you look at Bears going up Bears going out the window and Bulls going up the stairs if you shift in a fundamental mindset of that everything in life is that way I I was I was downtown once and one of the famous pastors of our of our community just h i mean he's a famous guy and he walks up next to me and I'm like oh my gosh you know here he is and he goes and there's a demolition going on there tearing down this thing he goes and thus we see that it is much easier to tear down than to build up and then he walked across the street and I'm like okay but if you think about how long does it take to build a house of was opposed to how long it takes to burn it down how long does it take to build an airplane as as fast as it can be to crash it I mean everything that is constructed takes longer so if you look at a company like Enron it takes a long time to build that up it takes a very short time to lie on a fundamentals oh and kill your I went to a baseball game at Enron field and then I went back a year later and it was IRS Stadium it was really weird transition but they and you weren't sure which one was more fraudulent yeah well and isn't that the old saying it's it's like I love that um when the company is sp is bought the ballpark that's a good time to short yeah oh yeah when they start naming the naming rights yep it's like crypto Arena or whatever and then and then Bitcoin crashed immediately after unbelievable you could probably name about a hundred of those right so there there is the em I think the emotions can we have ex uh who was it uh irrational exuberance the guy at Yale oh that uh well but wasn't it the guy at Yale and then Greenspan took it from him or did he take Greenspan and then he wrote the book it's the guy who does multiple.com is the guy who does the I'm not sure but Greenspan made it famous but what's interesting about that is they say that greensb gets credit for the irrational exuberance call but it was in 1995 the well the NASDAQ went it I think it went up about 200 or 300% from when he said it yeah and so it wasn't a good call by Greenspan at all like we went massively higher after he called it irrational exuberance no I'm so upset that I can't the guy who wrote the book multiple.com he he's the guy that has the uh the adjusted pe oh Shiller Shiller thank you now I get it turn my phone you got to put it in the right context Ed PE and then we understood but yeah Robert Schiller Robert Schiller didn't he win a Nobel prize in economics yeah I think so might have if he didn't I'll tell you though give an honorary one yeah but win a Nobel prize in economics it's funny I wish there was a we got to come up with this saying for Academia because uh I'll tell you what it's well Robert Kaki had that in the title he goes why C students work for a students and B students work for the government yeah right yes and so uh makes us feel good if we're ceas yeah because you know you look at like uh black scholes right so there's a Nobel Prize so where do they go to work at you know who I feel B long-term Capital Management that's like one of the worst yeah stories think about that that we could go with ironies long like Social Security how about long-term Capital Management where they're skimming they're skimming this shortterm spread long term Capital Management schem in the shortterm spread with the guys that invented the options thing Nobel Prize okay Nobel Prize we love to put Square Hats on and hang a thingy off it so we can look smart yeah hanging on the wall look how smart I look I got a square hat on with a thingy come a tassel and watch this I switch it over now I've achieved something now you're part of the club oh yeah exactly man it kills me I'm picturing Rodney Dangerfield with his tassel and everything what was that movie back to school back to school Marc and I we we will you know before we go to bed we'll throw a phone open and you know we'll watch some YouTube shorts or something you know people that are dumb you know they get they make a lot of noise if you say something that is galactically stupid to use Tom Cruz's phrase uh it's going to get out there and and sometimes she's like we just got to move to the forest I go actually this gives me a tremendous amount of Hope because if these guys are surviving the world we're going to crush this life so anyway all right give me another one what do you got um let's see here how about there are how about buy the rumor sell the news Buy on the rumor that's the whisper Buy on the rumor sell on the news toine that so I think that means that a lot of the information is already out there before you catch wind of it in other words a lot of times what the general public will do is some news comes out that oh the FED just cut rates oh well I got to go and buy because rate cuts are good but the market has already figured out that the FED is going to cut rates at this next meeting and so they're already pricing that in ahead of time so what what you're saying is I need to get on a committee on Congress yes yes see that's that's truly by the rumor the on Ultimate create the rumor create the rumor create the rumor yeah then you buy you know get people who are the best investors of the world they're all in Congress amazing their ability to beat the market is UN it's unmatched real I I follow it it's it's fantastic how about uh create the rumor and reinterpret the news we're not in a recession yeah well let's talk about what a recession truly is Right SP let's move the goalpost yeah it's crazy let's redefine words the way I like to look at that buy the rumor sell the news is to think about the way I think about it is is it a Known Unknown or an unknown unkknown so a Known Unknown happens all the time like this company's going to report earnings on Wednesday at 5:00 but we don't know what the numbers are going to be that's unnown unless you're Martha Stewart right yeah then you know what the numbers are going to be you see that guy recently who got caught by the SEC cuz he was listening in Zoom calls his wife was on Zoom calls and guess what the company was your favorite BP broken broken pipe yeah it's your favorite company and it was actually they were going to buy out a company and he was listening into his wife's she was dealing with the merger and acquisition area got near to the wall he heard the rumor yeah so he made a million whatever of course illegally and they caught him it happens all the time well she turned him in I thought was fantastic it happens all the time I had a guy call me one time and he was in a bunch of masterminds and stuff and you know he says Hey I was talking to the CEO and he said earnings going to be rough and he says anyway I says dude the the very fact he said that to you yeah if you go short that you're dead don't even think that way yeah but how about this how about this one here's one that's outdated honesty is the best policy yeah yeah it'll keep you about that how about stay out of prison you know your life's going to be much better outside of prison in do you guys remember the story about the Pizza Boy the delivery boy who was delivering pizzas to some Corporation in the in the we hours of the night um and he heard the rumor and he went home and he called his stock broker brother-in-law and they made a killing the the stock broker brother-in-law went to jail but the pizza boy did not so I can't remember what book I read that in but it was a good depend on who you're delivering a pizza well this this proves what is known in the stock market as the greater fool Theory clearly if you want to buy something low and sell something High you got to find somebody willing to take it off your hands at that's why Buffett that's why Buffet hates Bitcoin because the only way you can sell it is if someone will pay more for it than you did that's the only way to make money in it well it works until it doesn't yeah yeah and he he hates gold for the same reason right because it's not a productive asset and he talks about Farmland well if with a farm I have a crop I can generate revenue and earnings and all these sorts of can generate R yeah but with gold and with Bitcoin he hates them because there is no there is no underlying business it's just a price that someone's willing to pay for this you he makes a good point because people want to hedge like and and I have gold I'm I'm a chicken yeah I'm I the only reason you buy gold is fear uh and I have enough fear to buy some gold I'm a chicken right b b b y um I'm a chicken why did you can cross the road but but the fact of the matter is is Buffett's pretty smart because if all hell broke loose who still has the power whether you're in good times or bad times it's the producer always has the power why because there are necessities of life food clothing shelter and an iPhone you must have communication you must have medicine you and so if you're the producer of those things you always have the leverage you always have the posture you always have the upper hand living your life as a producer as opposed to Consumer and I think that fact in his mind supersedes the greater a greater fool Theory any day the way he said it was he he said if you gave me 1% of all the real estate I give you $25 billion for it right now because it produces housing y he says if you give me 1% of all the stocks you give you 25 billion whatever you know right now uh he says if you gave me all the Bitcoin I wouldn't give you 25 or all the Bitcoin I wouldn't give you $25 while we're talking Bitcoin let's throw out a few other um classic idioms or or hang on I'm going to learn to say that before the end this podcast colloquial is that close I have no idea colloquial you're not I think there's a q in there you're not even going to attempt it colloquial here's the saying ready hodal huh hodal hodal I've heard that one h o DL hodal yep hold on for dear life oh okay which I actually don't mind crypto if what you're if what you're holding you fundamentally can value and etc etc I think that hodal I think people get out too easy Diamond hands I like Warren Buffett don't lose money that's a good one I like that one lose money that's rule number one Phil Town wrote a book Phil town is a guy I know a little bit we've spoken on a couple of stages together and he wrote a whole book on don't lose money yeah rule number one well I mean you think about the compounding aspect like if you draw your account down 10% what do you have to get back to get back up yeah so if you draw your count down 50% you got to get 100% return to get back to to break even so mitigating that downside risk I think that's probably one of the best things that's what's the number one rule according to Warren Buffett don't lose money don't lose money because it's just too hard to it can be hard to recover and he talked a lot about that in his letter this last time actually said our partners can absolutely expect that we are not going to put big money of RIS so what you're saying is if you want to shoot fish in a barrel you got to keep your powder dry nice yeah and he has and he does y and there are this is one of your favorites there are old Traders or is it bold or old first there are there are old Traders Traders bold Traders but there are no old bold Traders what does that mean don't overos size and have and have have risk management in place because the the Temptation particularly with short-term gains is they can be incredibly seductive yeah and there there's another saying on Wall Street that kind of kind of goes along with that it's Bulls profit Bears profit pigs get Slaughter slaughtered so if when you're trying to get rich quick the Temptation is to use leverage and if you want to be bold well the simplest thing you can do is buy out of the money long calls and then you know hope and pray um that the market goes up and if you do that you can get rich but theot tickets yeah it's like a lottery ticket yeah but it it is that uh comes back to position and and discipline so you got to have good money management good risk management and and you know one of the best ways to keep emotions out of the game for Traders is just to have a position size that doesn't make your heart rate rise and then you can add to Winners like when you get something that's winning and you have some it gives you a little bit of cushion you can add to that but going all in when you when you don't know what the hand you're going to be dealt is just based off of whether it's a pattern or a trend or a news or a rumor whatever it is you got to have you got to think about well what if this goes what if this goes wrong that's a danger of getting out of the Rat Race because getting out of the rat race is about a number right it's a free to number it's passive income exceeding expenses so because there's that Target number or replacement of income however you want to say it right I want to replace my job money or I want passive income above my expenses either way whether you're trying to replace the income number or meet the expense number it's the same Target and so what happens is is people will begin to position size to a reward and they get become bold right yes reward is is probably the biggest challenge because I can tell you in my own personal experience where I have made the dumbest decisions in my own trading and lost the most money is when I had a specific Financial Target I had to hit yeah and that's where you and and when you go bold then you often you know people I've never had one of these but I can I in my mind I can imagine what it's like is when you have a margin call you're you've been too bold and now you're forced to sell what you liid you you have to sell the things you like at a loss or before your options are there and you have to do that to cover what you didn't like which brings me to a saying I have this is not a saying that you'll find on wey quote because I'm not a quotable guy but there's little quotes I give my kids you know as father and one of them that I've drilled into their heads is always be bigger than your money yeah and that that I wouldn't mind if if more people knew that always B I'll tell you what I have seen love that qu it's true what I have seen and what that means is to never let the money rule you always you know be in the boxing ring if all of a sudden the money is bigger than you in the boxing ring it will beat the heck out of you you have to remain bigger and stronger and that is in everything I I have if you see like I've hung out with a lot of Rich guys and I've come into contact with a lot of Rich guys guys and one of the CH one of the things I think was beautiful Bob Buffett M mum the late Charlie merer those guys are so big as people because their money pile is enormous and they've somehow remained bigger than thater than that Y in terms of character in other words as your money grows if your personal development does not keep Pace with that you're in trouble yeah you are in serious trouble well there's a there's a saying that money makes you more of what you already are yeah which if you you know you have to be very mindful of that your personality and the things that you're susceptible to money is like pouring gasoline on the fire and so keeping that you know staying above it both in in the way that you act the way that you treat others the way that you know your level of conceit and all of those things I mean it shouldn't hopefully you stay that I I know a guy uh I knew him briefly because he wound up going to prison and when I met him I was in awe I thought he was fantastic I mean the dude had me hypnotized because he just seemed like such a good solid guy you know he wound up stealing or defrauding people of over a hundred million doar he's in jail now but what happened was is I don't think he started out that way maybe he did I can't read his mind I don't know maybe it's just sh from the beginning but he was unable I think to go to his investors and say look you gave me some money to invest then I lost it yeah that that takes a big guy to be able to just do that when the problem's small because it can you know it can be really rough because he wasn't big enough yeah too much pride too much pride yeah it wasn't big enough to just go the invest say look I told you that there was risk this risk was brought to bear I screwed up or the market did things beyond my whatever you want to say be bigger than your money when you when you invest be bigger than your money um marriage be bigger than the money and and I think a lot of the Ponzi schemes and things are that there an inability for people to accept that there are little failures and things that happen you know and they've they've made promises that they can't keep and all of a sudden they start to try to it's like I tell my kids I mean you cannot defend a lie because eventually that lie will get out and then then you're caught lying and then it's much worse than if you just confess in the first place you to thine own self be true yeah then thou can't be false to any man right that's right you you got to be true to yourself for sure so I've tried to encourage my sons to do that yeah is you know it's so funny the re parents well we're bigger than they are we provide the food and we don't have anyone telling us what to do anymore so we figure we're smart we're all stupid oh yeah and I I tell my sons I go just understand your dad is stupid your generation is going to be smarter because I'm pretty sure that you know our generation is is smarter and knows more than what happened in 17 I'm pretty sure the previous generations were smarter than all of us right now I mean there's some wisdom of the ages there okay well it's true there's there's Benjamin Franklin things but a penny saved is a penny earned no it isn't because back then a penny was made of copper um back back then a penny a dollar was made of derivative gold a penny saved now is a penny lost yeah is a penny that's deteriorating in value Penny because a penny no longer because they changed what a penny was yeah so when he said that a penny Sav was a penny earned because it was worth something but a nickel actually is worth more than 5 cents because of the base metal inside of it same with a quarter a quarter is worth something like 38 cents because is it still though yeah yeah the the the raw material I thought they screwed those they did but still still costs more to make a quarter than to have a quarter it does absolutely I think they're I can't remember where I read it one of it's one of the books you and I were studying you gave me the name one 10 zillion book and and he's like he calls a federal reserve and he ords a pallet full of nickels something some ridiculous amount of nickels and they're like why do you want all these nickels he's like I just like nickels and he was he was a value stored in the Raw material is what he wanted so it's an interesting thought you know money it is an interesting just if people understood the mini I mean I'm still trying to understand it you know it's a medium exchange it's a store of value everyone that writes a book on money you know like like uh uh oh how come I can't remember everybody's name am I getting old and Cena out I can't remember his name yes there's too many saying whenever whenever someone writes a book on money they're like what is money what is money you know know all like Edward Griffin what is money right all these guys what is money and everyone's arguing you know the Bitcoin guys are trying to argue what is money yeah uh the hardest thing with Bitcoin is it's dependent on electricity if the if you if you eliminate electricity you've just eliminated the money right yeah it it'll be interesting consuming it is a gold does not consume anything Bitcoin is a consumption of energy and there's only a set amount of Bitcoin so what happens when all the Bitcoin has been mined well that's why you buy it's only but it's only owned by a small percentage of the world so what what happens at that point in time on the one hand you have this scarcity where like well now it's worth a zillion because you know you buy like the big sales pitch the most effective sales pitch I ever heard with Bitcoin is buy one because there's more B there's more or there's less Bitcoins than are millionaires and there can be a day where a millionaire can't buy one and so that SC gets you going but also if it's so scarce you got you know 7 billion people trying to work with fractions of this little tiny thing it's it is interesting if it's going to be oh the people are going to read this I mean oh read the comments okay here's here's one by I'm not saying it's I'm not saying it's good bad or ugly I'm just opening up questions of this is how does it how does this end when Bitcoin has all been mined you know then then what's the next pH someone will say we need look they're going to build a men mous trap come on now look it's like we still have hypertex transfer protocol that's probably going to be the standard for a long long time but net Netscape is gone dude it was the first one that it's gone yeah so Bitcoin says oh we're going to use blockchain you know that's the standard that's the prot well yeah but then you can have other stuff but but yeah I don't know I I this is not a saying it's a quote but I think we can throw it in it it's one of my favorites of all time cuz when he said it when I watched the video it's Steve Jobs the irony was just incredible you drop out of Stanford you say you guys are not worth my time you are wasting my time I'm leaving you because what you're doing here is a complete waste of my time I don't have time to listen to you people I got stuff to do and he's the guy they invite back to do the commencement spech I mean the the irony of that just blows my mind and he said these words and when he said it it just penetrated my being he said don't be trapped by Dogma yeah and and what that is is when someone with authority or some with position says this is how it is and and they clasp to it and they hold on to it with White Knuckles and that's a real danger for investors is if you become dogmatic and you can't look at both sides of a coin I I often say this if you can't poke holes in your asset class you don't understand your asset class in other words if I'm going to say oh you know business is better than this or Bitcoin is better than gold or Gold's better than real estate or real estate's better than stocks or stocks are better than if you can't say look I'm going to show you the problems with my asset class y then you probably really don't understand the risks that are there because there is a flaw there are pitfalls there are hurdles there are problems with dangers risks with every ass ET class none of them are perfect none of them are just they all require education all of them do 100% well you can't understand the risk and without that and without you know without the risk there is no reward but you have to absolutely be bigger than your money and understand that risk thank you for quoting that I want to perpetuate that no don't quote let's just say you know what we we should attribute it to somebody else then it could take off yeah if they say who said that Andy turn like what well cross that off the list it you better say this where does it say that it's in the Old Testament somewhere yeah probably is probably in there yeah yeah yeah there's some good there's a lot of good stuff in there like in Deuteronomy it says Andrew chapter 5 verse three oh that's let's not now the light now the lightning bolts are coming you know andw Deuteronomy uh what does it say uh my or is it I don't know if it's D I don't know my Bible that well um my people perish for lack of knowledge my people perish for lack of knowledge I like that so ignorance is bliss ignorance is place I know it is ignorance creates a lot of problems it does for sure all right well I don't know that we've we could probably do several uh oh we could we could go on all day and I really have no place to be we haven't even gotten to the dad jokes yet oh jeez I thought those was were implied always just Incorporated they're just miserable okay my my poor sons they're just they love you humor though well that's good like every once in a while someone has a really good liner they're like that's no Davidson quality right there see my kid just says that's a dad joke he just calls him out like good dad joke Dad hey there's you know when a saying is usually a saying because there's some wisdom to it right and we don't want to be dogmatic with it but it it's fun to be in a group of people where those the the language is familiar um we appreciate everyone hanging out and maybe some of these are sayings that you've heard maybe some of them are new uh there's a load more we could do I'm sure for sure um what a great idea Corey what are your favorite your favorite I got us cancelled yeah yeah I'm pretty sure my idea just by the Bitcoin Bros that's it they're all mad yeah I I need to be bigger than my mouth you know the problem with the problem with all of our politicians right now is it goes in here and just comes out that's a risk on a podcast too you know for sure and then if you're dumb enough not to edit those things then you're really in trouble right luckily we don't have to edit much who of the poll of the three of us who gets edited the most I wonder who that would it's one of you do that is a title I will buy for all right well drop by your investing class.com and I think uh Noah I always forget we're supposed to introduce ourselves uh each time because we have new listeners so you know we we forgot to do that this time so catch the next episode if you want to find out who we are you would rewind one and at some point that's how we get people get people watch at some point who are these people this is not the podcast you're looking for it is so go to your investing class.com check us out we like to make investing funds simple and real uh fun is in the eye of the beholder I said I I suppose but be bigger in your money a pen is saved is a penny earned the trend is your friend you know ask not what you could do for your country what what your country can do for you what you can do for your country right good good saying good good quotes hope you enjoyed our conversation we'll see you next time this podcast is a presentation of Rich Dad media Network

Channel: The Rich Dad Channel

Views: 6,617

Keywords: robert, kiyosaki, rich dad poor dad, motivational speakers, business ideas, make money, how to get rich, how to make money, how to invest, passive income, cashflow game, Robert kiyosaki, financial education, financial literacy, warren buffett, stock market, warren buffett investment strategy, andy tanner stock market cash flow, andy tanner rich dad, andy tanner cash flow, andy tanner cash flow academy, andy tanner options, andy tanner 4 pillars

Id: ZWY0W4dLECc

Length: 43min 14sec (2594 seconds)

Published: Thu May 02 2024