00:00

So, Sam, tell me this. Do you like watching sweaty men fight to the death in their underwear? Me too. Every weekend. I I build my Saturdays around it. Well, I think you should invest in in their Saturdays.

So, Sam, tell me this. Do you like watching sweaty men fight to the death in their underwear? Me too. Every weekend. I I build my Saturdays around it. Well, I think you should invest in in their Saturdays.

00:13

My pick for Stockapalooza twenty twenty four is

My pick for Stockapalooza twenty twenty four is

00:24

Alright. We're live. Sean, did you just go to the,

Alright. We're live. Sean, did you just go to the,

00:28

Black Friday sale at Tommy Bahama. What's going on?

Black Friday sale at Tommy Bahama. What's going on?

00:31

I went into the old dad's closet today

I went into the old dad's closet today

00:34

and got a little shirt because special occasion, and I needed to dress up. Oh, that's your version of dressing up? Yeah. This is up, dude.

and got a little shirt because special occasion, and I needed to dress up. Oh, that's your version of dressing up? Yeah. This is up, dude.

00:45

Alright.

Alright.

00:48

What are we doing today?

What are we doing today?

00:49

Today, this is

Today, this is

00:52

Stockapalooza.

Stockapalooza.

00:53

The first ever, first annual

The first ever, first annual

00:55

Stacapalooza, which you may not know what that means because we made it up.

Stacapalooza, which you may not know what that means because we made it up.

01:00

Basically, me and Sam said, what if we did an episode where we pick a stock. So each of us are gonna go through the stock market. We're gonna each pick a stock that we have to make a case for. If you've ever seen, There's a conference called the Sone Conference.

Basically, me and Sam said, what if we did an episode where we pick a stock. So each of us are gonna go through the stock market. We're gonna each pick a stock that we have to make a case for. If you've ever seen, There's a conference called the Sone Conference.

01:14

And it's kinda like a TED Talk, but for stock pickers.

And it's kinda like a TED Talk, but for stock pickers.

01:17

And all the biggest names go there. Bill Ackman,

And all the biggest names go there. Bill Ackman,

01:21

goes there and Truck and Miller and whoever, Chamaath, and they all they get on stage, and they make, like, a twenty minute case.

goes there and Truck and Miller and whoever, Chamaath, and they all they get on stage, and they make, like, a twenty minute case.

01:28

For a particular stock, why they're long, or why they're bullish on something.

For a particular stock, why they're long, or why they're bullish on something.

01:32

And,

And,

01:34

those guys are good. And those talks are fun.

those guys are good. And those talks are fun.

01:37

We wanted to try it too and, do it our way. So the MFM style of this, it's called Stockapalooza.

We wanted to try it too and, do it our way. So the MFM style of this, it's called Stockapalooza.

01:42

Both me and Sam have picked a stock. We do not know what each other have picked We're gonna get twenty minutes each to present. And so if you're on the, like, just the audio podcast feed,

Both me and Sam have picked a stock. We do not know what each other have picked We're gonna get twenty minutes each to present. And so if you're on the, like, just the audio podcast feed,

01:52

I know I've been telling you YouTube is where it's at. Today, She was for sure where it's at because we got slides. Your boys came prepared,

I know I've been telling you YouTube is where it's at. Today, She was for sure where it's at because we got slides. Your boys came prepared,

01:59

and I have data. I got charts. I have a whole bunch stuff here. So you wanna go to YouTube where you're gonna actually be able to see the screen and see us, sharing slides. So we got twenty minutes each to do it. For the listener who are on not YouTube, we have to ask them to do something when they finally go to YouTube. That's right. That's right. If you go there and you don't hit the subscribe button,

and I have data. I got charts. I have a whole bunch stuff here. So you wanna go to YouTube where you're gonna actually be able to see the screen and see us, sharing slides. So we got twenty minutes each to do it. For the listener who are on not YouTube, we have to ask them to do something when they finally go to YouTube. That's right. That's right. If you go there and you don't hit the subscribe button,

02:19

a cursed place on your family for seven years. And I don't want that for any of you guys. So go ahead and hit subscribe when you're there because it's super important for your family. It's a simple pitch. We put all this work in. And they don't have to pay us back with anything other than a subscribe on YouTube. It's free and easy for them, and it makes just a ton of difference to us. So just go and do that Alright. Now what what are you saying? Okay. So you're ready to begin? Do we need us should we just go into it? No. Rules. Okay. So we're kinda making up the rules on the fly. So, we're gonna do about twenty minutes. So you get twenty minutes. I'll ask questions, but I'll try not to interrupt too much. And then we'll do, like, we'll just talk for about it for a few minutes afterwards and then I'll pitch. And then the last ten or however many minutes left, we'll we'll each vote. But then in the YouTube comments, You guys actually have to vote who wins. But when we say win, what does win mean here? Because we're not exactly we're gonna be you guys can, like, we can play a drinking game where it's like count the disclosures. You're gonna see this disclosure constantly of saying, we have no idea what we're talking about. It's just something fun and cool. But how do we base win on? Is it by showmanship? Is it by what's the company you think is gonna have a long term? Best case. But what does best mean? A ten year?

a cursed place on your family for seven years. And I don't want that for any of you guys. So go ahead and hit subscribe when you're there because it's super important for your family. It's a simple pitch. We put all this work in. And they don't have to pay us back with anything other than a subscribe on YouTube. It's free and easy for them, and it makes just a ton of difference to us. So just go and do that Alright. Now what what are you saying? Okay. So you're ready to begin? Do we need us should we just go into it? No. Rules. Okay. So we're kinda making up the rules on the fly. So, we're gonna do about twenty minutes. So you get twenty minutes. I'll ask questions, but I'll try not to interrupt too much. And then we'll do, like, we'll just talk for about it for a few minutes afterwards and then I'll pitch. And then the last ten or however many minutes left, we'll we'll each vote. But then in the YouTube comments, You guys actually have to vote who wins. But when we say win, what does win mean here? Because we're not exactly we're gonna be you guys can, like, we can play a drinking game where it's like count the disclosures. You're gonna see this disclosure constantly of saying, we have no idea what we're talking about. It's just something fun and cool. But how do we base win on? Is it by showmanship? Is it by what's the company you think is gonna have a long term? Best case. But what does best mean? A ten year?

03:30

Well, I don't know. And that's part of the fun here. Okay. Fine. As we can. We can say Tainment. Is it just entertainment? Because that's different. This is definitely entertainment, but the entertainment has to have a foundation

Well, I don't know. And that's part of the fun here. Okay. Fine. As we can. We can say Tainment. Is it just entertainment? Because that's different. This is definitely entertainment, but the entertainment has to have a foundation

03:41

of you can't just be making shit up. Right? We gotta have actual good insights or good analysis presented in a wonderful way. Right? The way that any presentation is sort of scored, you have style points and you have substance points. And we're gonna take both of those factors into consideration

of you can't just be making shit up. Right? We gotta have actual good insights or good analysis presented in a wonderful way. Right? The way that any presentation is sort of scored, you have style points and you have substance points. And we're gonna take both of those factors into consideration

03:54

to pick the the ultimate winner.

to pick the the ultimate winner.

03:56

I don't know if you have you ever gone and watched any of these by the way? Like, you know, in, I remember when Shamath went on stage in twenty sixteen, and he was, like, There's there's a multi trillion dollar company hidden in plain sight, and he made a case for why Amazon was gonna get to three trillion by twenty twenty five. This was back in twenty fifteen.

I don't know if you have you ever gone and watched any of these by the way? Like, you know, in, I remember when Shamath went on stage in twenty sixteen, and he was, like, There's there's a multi trillion dollar company hidden in plain sight, and he made a case for why Amazon was gonna get to three trillion by twenty twenty five. This was back in twenty fifteen.

04:13

What is it now? It's currently, like, close to two trillion.

What is it now? It's currently, like, close to two trillion.

04:16

And we got far left a year left. He's not far off. He then went up and did a case for box, and I bought a shit ton of box stock

And we got far left a year left. He's not far off. He then went up and did a case for box, and I bought a shit ton of box stock

04:24

and bucks, then just shit the bed for the next three years. And if you go back, all the smartest guys, Bill Ack, when he goes up there and he makes a case for some housing thing,

and bucks, then just shit the bed for the next three years. And if you go back, all the smartest guys, Bill Ack, when he goes up there and he makes a case for some housing thing,

04:32

terrible stocks. Right? I went back and I actually charted how how these picks did really bad. So, actually,

terrible stocks. Right? I went back and I actually charted how how these picks did really bad. So, actually,

04:37

we might be just as good as them because we're also gonna be terrible. What's considered good for these guys?

we might be just as good as them because we're also gonna be terrible. What's considered good for these guys?

04:42

Like, is it like a batting average or it's like if you're three hundred if you're, you know, which thirty percent, right, you're the best?

Like, is it like a batting average or it's like if you're three hundred if you're, you know, which thirty percent, right, you're the best?

04:49

No. I think it's just based on the the returns. Right? So, like, how much you put in versus how often you're right, right, the multiple the multiple of those two. So, you know, they just gotta get enough right where the overall returns are there. But we should say this. First slide is the most important slide, which is that this is not financial advice.

No. I think it's just based on the the returns. Right? So, like, how much you put in versus how often you're right, right, the multiple the multiple of those two. So, you know, they just gotta get enough right where the overall returns are there. But we should say this. First slide is the most important slide, which is that this is not financial advice.

05:06

This is entirely for entertainment purposes only.

This is entirely for entertainment purposes only.

05:10

My lawyer has told me to say that. But it's actually true. This is only for entertainment purposes. I forbid you from actually investing in any of the things that we talk about. I am a idiot when it comes to the stock market. If you take my financial advice, I consider you an idiot too. That's my disclaimer. There needs to be a song where it's, what did you say? Throw your hands in the air and lose your money like you just don't care. Exactly. Stockapalooza. That's the Stockapalooza

My lawyer has told me to say that. But it's actually true. This is only for entertainment purposes. I forbid you from actually investing in any of the things that we talk about. I am a idiot when it comes to the stock market. If you take my financial advice, I consider you an idiot too. That's my disclaimer. There needs to be a song where it's, what did you say? Throw your hands in the air and lose your money like you just don't care. Exactly. Stockapalooza. That's the Stockapalooza

05:33

anthem.

anthem.

05:36

Alright. Let's jump in. Alright. My turn. I'm gonna start my clock. Let's go. Okay. So

Alright. Let's jump in. Alright. My turn. I'm gonna start my clock. Let's go. Okay. So

05:42

here's the general idea. If you're buying one stock, Sam, I know you're a index fund guy. Right? You like to go into the s p five hundred. And spread out your risk. And you're right. If you're buying one stock, you're taking more risk than the index. And if you look back last ten years, The index is giving you about a ten and a half percent annual return over a ten year period. Ten and a half percent over ten years. So that's we'd have to beat that to justify

here's the general idea. If you're buying one stock, Sam, I know you're a index fund guy. Right? You like to go into the s p five hundred. And spread out your risk. And you're right. If you're buying one stock, you're taking more risk than the index. And if you look back last ten years, The index is giving you about a ten and a half percent annual return over a ten year period. Ten and a half percent over ten years. So that's we'd have to beat that to justify

06:03

taking the additional risk of picking one stock because that's gonna, basically, two point seven extra money in a ten year span. So if you wanna you'll do a little better than double, almost triple your money in ten years, just put in the s b five hundred. So we're looking for something that If we're gonna take more risk, we need to get more reward. So here's what I'm I'm thinking. I decided to peg for what do I think could get me a five x in ten years? Okay? Five x to ten years. Double what the, what the s p five hundred is gonna do. So

taking the additional risk of picking one stock because that's gonna, basically, two point seven extra money in a ten year span. So if you wanna you'll do a little better than double, almost triple your money in ten years, just put in the s b five hundred. So we're looking for something that If we're gonna take more risk, we need to get more reward. So here's what I'm I'm thinking. I decided to peg for what do I think could get me a five x in ten years? Okay? Five x to ten years. Double what the, what the s p five hundred is gonna do. So

06:32

which stock did I pick, Sam? I'm sure you're wondering.

which stock did I pick, Sam? I'm sure you're wondering.

06:35

Well, let's ask the oracle of Omaha, a k a, Buff Daddy.

Well, let's ask the oracle of Omaha, a k a, Buff Daddy.

06:39

What would Ward Buffet do? Cause I'm not a great stock picker, so I wanted to go and study the great stock pickers of all time. And look at what would be their criteria? What are they looking for so that I can learn from them? And I went back and I learned everything I could from Warren Buffett, And I realize that there's five big things that he looks for. Okay? So you're ready for the five big ones? The first

What would Ward Buffet do? Cause I'm not a great stock picker, so I wanted to go and study the great stock pickers of all time. And look at what would be their criteria? What are they looking for so that I can learn from them? And I went back and I learned everything I could from Warren Buffett, And I realize that there's five big things that he looks for. Okay? So you're ready for the five big ones? The first

06:59

understandability

understandability

07:00

Meaning, he doesn't invest in shit. He doesn't understand. If it's too complicated or if it's outside of his circle of competence, he's simply not investing.

Meaning, he doesn't invest in shit. He doesn't understand. If it's too complicated or if it's outside of his circle of competence, he's simply not investing.

07:07

And so the idea is is the business simple enough that an idiot like me could understand it. And that ideally, an idiot can even run it. Right? Such a simple

And so the idea is is the business simple enough that an idiot like me could understand it. And that ideally, an idiot can even run it. Right? Such a simple

07:15

business. So understandability.

business. So understandability.

07:17

Number two, an economic moat. So we want few competitors.

Number two, an economic moat. So we want few competitors.

07:22

We want some pricing power

We want some pricing power

07:24

And we want to make sure that this business is so defensible that it's gonna be around in fifty years because,

And we want to make sure that this business is so defensible that it's gonna be around in fifty years because,

07:29

you know, Warren is usually a buy and hold investor. He's he's not really trying to trade in and out in time of the market. He's looking for time in market, and he's looking to be in the in the company for a long time.

you know, Warren is usually a buy and hold investor. He's he's not really trying to trade in and out in time of the market. He's looking for time in market, and he's looking to be in the in the company for a long time.

07:40

And so we wanna economic modes. Something that's super durable. Alright. Number three, competent management. So management, basically, just a strong management team is always gonna be a,

And so we wanna economic modes. Something that's super durable. Alright. Number three, competent management. So management, basically, just a strong management team is always gonna be a,

07:51

you know, big benefit for anything,

you know, big benefit for anything,

07:53

for any stock. Okay. Last last two, margin of safety means we gotta be buying this can't be buying this at some extreme price. Even if it's a great company, if it's massively overpriced, it's too hot in the market,

for any stock. Okay. Last last two, margin of safety means we gotta be buying this can't be buying this at some extreme price. Even if it's a great company, if it's massively overpriced, it's too hot in the market,

08:03

then we're taking too much risk. What we wanna do is buy dollar bills for eighty cents. Right? That's a mar that's a great margin of safety. And, of course, lastly, strong financials. So high earnings, low CapEx, low debt, That's really what we look for. Okay. So

then we're taking too much risk. What we wanna do is buy dollar bills for eighty cents. Right? That's a mar that's a great margin of safety. And, of course, lastly, strong financials. So high earnings, low CapEx, low debt, That's really what we look for. Okay. So

08:16

this is why Warren Buffett is buying brands, not stocks. I I love this line actually in my research. He goes, Don't buy a stock, buy a company.

this is why Warren Buffett is buying brands, not stocks. I I love this line actually in my research. He goes, Don't buy a stock, buy a company.

08:24

Sudden's difference, but he's looking to, basically, like, what what would what don't try to buy the stock because you think the price is gonna go up, buy the company because you think that company is gonna endure and be successful and and just grow steadily for a long period of time. That's a new thing that he did. So it's not new for I mean, he he didn't start doing that until his sixties. So before he was buying stocks purely in the financials, he's like, I don't care what they sell. And then he, like, met Coke, and then he, like, invested in Washington to post. And he's like, oh, no. The brand is actually where it's Exactly. He used to do the cigarette butt investing where, you know, if there's two puffs left on the cigarette,

Sudden's difference, but he's looking to, basically, like, what what would what don't try to buy the stock because you think the price is gonna go up, buy the company because you think that company is gonna endure and be successful and and just grow steadily for a long period of time. That's a new thing that he did. So it's not new for I mean, he he didn't start doing that until his sixties. So before he was buying stocks purely in the financials, he's like, I don't care what they sell. And then he, like, met Coke, and then he, like, invested in Washington to post. And he's like, oh, no. The brand is actually where it's Exactly. He used to do the cigarette butt investing where, you know, if there's two puffs left on the cigarette,

08:55

okay. Let's do it. There's value there. But he he credits Charlie Monger for showing him that actually it's better to pay, you know, a fair price for a great business. Than a great price for just a fair business. And so this that's why he's now invested in Apple Bank of America American Express, Coca Cola, GEICO,

okay. Let's do it. There's value there. But he he credits Charlie Monger for showing him that actually it's better to pay, you know, a fair price for a great business. Than a great price for just a fair business. And so this that's why he's now invested in Apple Bank of America American Express, Coca Cola, GEICO,

09:12

these are brands that have been around for fifty years, and that's what he's looking for. Alright, everyone. A quick break to tell you about HubSpot, and this one's really easy for me to talk about because I'm gonna show you a real life example. I've got this company called Hampton. Joinampton dot com. It's a community for founders doing between two million all the way up to like two fifty million dollars a year in revenue. And one of the ways that we've grown is we've created cool surveys. And so we have a lot of founders who have high networks, and we'll ask them all types of questions that people typically are embarrassed to ask, but provide a lot of value. So things like How much the founders pay themselves each month, how much money they're spending each month, what their payroll looks like. If they're optimistic about the next year and their business, all these questions that people are afraid to ask But, well, we ask them anyway, and they tell us in this anonymous survey. And so what we do is we created a landing page using HubSpot's landing page tool, and it basically has a landing page Here's all the questions we asked. Give us your email if you want to access it. And then I shared this page on Twitter, and we were able to get thousands of people who gave us their email and told us they want

these are brands that have been around for fifty years, and that's what he's looking for. Alright, everyone. A quick break to tell you about HubSpot, and this one's really easy for me to talk about because I'm gonna show you a real life example. I've got this company called Hampton. Joinampton dot com. It's a community for founders doing between two million all the way up to like two fifty million dollars a year in revenue. And one of the ways that we've grown is we've created cool surveys. And so we have a lot of founders who have high networks, and we'll ask them all types of questions that people typically are embarrassed to ask, but provide a lot of value. So things like How much the founders pay themselves each month, how much money they're spending each month, what their payroll looks like. If they're optimistic about the next year and their business, all these questions that people are afraid to ask But, well, we ask them anyway, and they tell us in this anonymous survey. And so what we do is we created a landing page using HubSpot's landing page tool, and it basically has a landing page Here's all the questions we asked. Give us your email if you want to access it. And then I shared this page on Twitter, and we were able to get thousands of people who gave us their email and told us they want

10:06

this survey. And I could see did they come from social media? I can see did they come from Twitter, from LinkedIn. It basically, everywhere else that they could possibly come from, I'm able to track all of that And then I'm able to see over the next handful of weeks how many of those people actually signed up and became a member of Hampton. In other words, I can see how much revenue came from this survey. Much revenue came from each traffic source, things like that. But the best part is I can see how much revenue came from it. And a lot of times it takes a ton of work to make that happen. HubSpot made that super, super easy. If you're interested in doing this, you could check it out hubspot dot com, the links in the description, and I'll also put the link to the survey that I did so you can actually see the landing page and how it works and everything that. I'm just gonna do that call to action then.

this survey. And I could see did they come from social media? I can see did they come from Twitter, from LinkedIn. It basically, everywhere else that they could possibly come from, I'm able to track all of that And then I'm able to see over the next handful of weeks how many of those people actually signed up and became a member of Hampton. In other words, I can see how much revenue came from this survey. Much revenue came from each traffic source, things like that. But the best part is I can see how much revenue came from it. And a lot of times it takes a ton of work to make that happen. HubSpot made that super, super easy. If you're interested in doing this, you could check it out hubspot dot com, the links in the description, and I'll also put the link to the survey that I did so you can actually see the landing page and how it works and everything that. I'm just gonna do that call to action then.

10:46

And it's free. Check it out in the description. Alright. Now back to MFM. Okay. So simple buffet formula, just to summarize,

And it's free. Check it out in the description. Alright. Now back to MFM. Okay. So simple buffet formula, just to summarize,

10:53

buy brands that you understand. That'll be here fifty years from now, that spit off cash at a fair price. If you do all that, You could hold forever. You've done well.

buy brands that you understand. That'll be here fifty years from now, that spit off cash at a fair price. If you do all that, You could hold forever. You've done well.

11:03

So I looked and I looked. And truth be told, I actually started with one in mind and then reverse engineered this whole presentation.

So I looked and I looked. And truth be told, I actually started with one in mind and then reverse engineered this whole presentation.

11:09

But

But

11:11

I have one. So, Sam, tell me this. Do you like watching sweaty men fight to the death in their underwear? Me too.

I have one. So, Sam, tell me this. Do you like watching sweaty men fight to the death in their underwear? Me too.

11:18

Every weekend.

Every weekend.

11:19

I I build my Saturdays around it. Well, I think you should invest in in their Saturdays.

I I build my Saturdays around it. Well, I think you should invest in in their Saturdays.

11:25

My pick for Stockapalooza twenty twenty four

My pick for Stockapalooza twenty twenty four

11:28

is

is

11:29

TKO.

TKO.

11:30

TKO is the stock

TKO is the stock

11:32

that owns,

that owns,

11:34

WWE

WWE

11:35

and the UFC.

and the UFC.

11:37

And I think that TKO is a buffet stock. And here's Buffet, you know, looking ready for wrestlemania.

And I think that TKO is a buffet stock. And here's Buffet, you know, looking ready for wrestlemania.

11:43

Why is it why does it fit the criteria? So understandability.

Why is it why does it fit the criteria? So understandability.

11:46

Very easy to understand. It's a holding company that owns these sports franchises. It owns these leagues underneath them. Okay. That's the the that's all the business is. It's it does nothing else besides that.

Very easy to understand. It's a holding company that owns these sports franchises. It owns these leagues underneath them. Okay. That's the the that's all the business is. It's it does nothing else besides that.

11:57

Finding is the easiest thing to understand in the world. I don't know if you've heard this great thing that, that that Dana White says. He goes, let's say you walk out into a a a sports field on a Sunday, and there's a soccer game over here and a bass ball game over there, and these guys are playing flag football.

Finding is the easiest thing to understand in the world. I don't know if you've heard this great thing that, that that Dana White says. He goes, let's say you walk out into a a a sports field on a Sunday, and there's a soccer game over here and a bass ball game over there, and these guys are playing flag football.

12:13

And you could go look at any one of those directions. You might have a favorite sport.

And you could go look at any one of those directions. You might have a favorite sport.

12:17

But if somebody else fight and there's a fight going on, everybody's head's gonna turn. It is a,

But if somebody else fight and there's a fight going on, everybody's head's gonna turn. It is a,

12:24

human nature thing that we like to watch people compete and fight.

human nature thing that we like to watch people compete and fight.

12:28

And it is global everywhere in the world. People don't, you know, if you go to China, people don't know the rules of football. You come to America. People don't know the rules of cricket. But everybody understands the concept of these two guys are gonna fight each other. Everybody around the world. And so it is the easiest to understand product and business.

And it is global everywhere in the world. People don't, you know, if you go to China, people don't know the rules of football. You come to America. People don't know the rules of cricket. But everybody understands the concept of these two guys are gonna fight each other. Everybody around the world. And so it is the easiest to understand product and business.

12:43

The business is very simple. Fans pay to watch fights. People pay pay per view. Same. How much do you think you've paid in pay per view,

The business is very simple. Fans pay to watch fights. People pay pay per view. Same. How much do you think you've paid in pay per view,

12:49

per year? What do you what do you spending on your UFC fandom.

per year? What do you what do you spending on your UFC fandom.

12:53

So,

So,

12:54

I would probably say I,

I would probably say I,

12:57

buy

buy

12:58

the five a year. So that's five hundred dollars, I think. And then I only have a ESPN subscription. Like, dude, I don't know anything about sports. I just found out that's the Super Bowl is this Sunday. I thought it was in November.

the five a year. So that's five hundred dollars, I think. And then I only have a ESPN subscription. Like, dude, I don't know anything about sports. I just found out that's the Super Bowl is this Sunday. I thought it was in November.

13:10

I own I pay for ESPN just for that. So that's another sixty. And then I attend

I own I pay for ESPN just for that. So that's another sixty. And then I attend

13:15

one to three a year, which is,

one to three a year, which is,

13:17

quite expensive. That's a thousand dollars a show at least. Exactly. High LTV fans. Okay. So let's let's go through these now. Economic mode.

quite expensive. That's a thousand dollars a show at least. Exactly. High LTV fans. Okay. So let's let's go through these now. Economic mode.

13:26

Name the competitor to the UFC. Name a competitor to to WWE.

Name the competitor to the UFC. Name a competitor to to WWE.

13:30

They've all come and gone. Bellator was the the most well funded competitor to to UFC. It was funded by Viacom. They put hundreds of millions of dollars into this thing. It failed, and they just sold it for, you know,

They've all come and gone. Bellator was the the most well funded competitor to to UFC. It was funded by Viacom. They put hundreds of millions of dollars into this thing. It failed, and they just sold it for, you know,

13:42

less than what they put what they invested into it. Like, they sold it for a hundred million bucks. The number two competitors sold for a hundred million, the UFC

less than what they put what they invested into it. Like, they sold it for a hundred million bucks. The number two competitors sold for a hundred million, the UFC

13:49

sold for four point two billion. So that's the gap between one and two.

sold for four point two billion. So that's the gap between one and two.

13:54

Growing up, I love w c w. That was the big competitor to w w e. Guess what? It folded and they took all the wrestlers,

Growing up, I love w c w. That was the big competitor to w w e. Guess what? It folded and they took all the wrestlers,

14:01

a e w, all those things. Basically, these two brands have over ninety five percent market share in their market. This is total monopoly. More than Google has in the search market. Do you know how popular WW is on YouTube?

a e w, all those things. Basically, these two brands have over ninety five percent market share in their market. This is total monopoly. More than Google has in the search market. Do you know how popular WW is on YouTube?

14:12

Have you have you did you look into that? I I have I have a couple slides later. They dominate social media. It's the tenth. The tenth most popular channel on all of YouTube is WWE.

Have you have you did you look into that? I I have I have a couple slides later. They dominate social media. It's the tenth. The tenth most popular channel on all of YouTube is WWE.

14:24

That's insane.

That's insane.

14:25

Right.

Right.

14:26

Like, the fact that these two have more market share in their market than Google has in the search market shows you they just kind of complete and utter dominance. And the fact that competitors have come and gone. People have taken their best shot, and, they haven't been able to touch them. So you have you have two brands that have been around for a while and will be around for a while.

Like, the fact that these two have more market share in their market than Google has in the search market shows you they just kind of complete and utter dominance. And the fact that competitors have come and gone. People have taken their best shot, and, they haven't been able to touch them. So you have you have two brands that have been around for a while and will be around for a while.

14:44

Okay. Comp tip management.

Okay. Comp tip management.

14:46

We have Aria manual. If you've ever seen entourage, the character Ari Gold is based on on Aria manual, He is an absolute power player, power broker in in the entertainment business. You have Dana White, the guy who's basically been a founder CEO of this, essentially, since they bought it for two million bucks, bought it for two million, sold it for four point two billion.

We have Aria manual. If you've ever seen entourage, the character Ari Gold is based on on Aria manual, He is an absolute power player, power broker in in the entertainment business. You have Dana White, the guy who's basically been a founder CEO of this, essentially, since they bought it for two million bucks, bought it for two million, sold it for four point two billion.

15:05

And he's, he's still going, and he's still going strong. This guy is an absolute animal. And we have a Eagan Durban who's with a Silver Lake Partners. That's their kind of institutional capital behind this. And that guy's also, you know, got a pretty crazy track record with multiple

And he's, he's still going, and he's still going strong. This guy is an absolute animal. And we have a Eagan Durban who's with a Silver Lake Partners. That's their kind of institutional capital behind this. And that guy's also, you know, got a pretty crazy track record with multiple

15:19

billion dollar,

billion dollar,

15:20

or multi billion dollar plays like Skype

or multi billion dollar plays like Skype

15:23

and whatnot. So super good management team. Okay. Margin of safety. So

and whatnot. So super good management team. Okay. Margin of safety. So

15:28

I don't know if you know how much money these make, but they basically the combined entities generate over a million dollar oh, sorry. A billion dollars a year of EBITDA

I don't know if you know how much money these make, but they basically the combined entities generate over a million dollar oh, sorry. A billion dollars a year of EBITDA

15:36

and it trades at about fourteen x. So it's about a fourteen billion dollar market cap company right now with four with with a billion dollars of EBITDA.

and it trades at about fourteen x. So it's about a fourteen billion dollar market cap company right now with four with with a billion dollars of EBITDA.

15:44

Just to put this into comparison,

Just to put this into comparison,

15:46

if

if

15:48

UFC plus WWE, two full, like, leagues

UFC plus WWE, two full, like, leagues

15:51

are fourteen billion,

are fourteen billion,

15:53

The Phoenix Suns, one NBA franchise just sold for five billion.

The Phoenix Suns, one NBA franchise just sold for five billion.

15:58

Right? So this is basically three Phoenix Suns, and you get the entire universe of combat sport of of, of of, you know, fighting entertainment, which is wrestling and UFC, everything except for boxing.

Right? So this is basically three Phoenix Suns, and you get the entire universe of combat sport of of, of of, you know, fighting entertainment, which is wrestling and UFC, everything except for boxing.

16:11

F one, which is, you know, to me seems super niche. Like, f one is is so so niche. Do you know how much f one just sold for? No idea. Eight and a half billion dollars.

F one, which is, you know, to me seems super niche. Like, f one is is so so niche. Do you know how much f one just sold for? No idea. Eight and a half billion dollars.

16:21

And f one has a big problem, which is no matter how popular f one is, They have to pay out to all the teams, the franchises. So, you know, half the revenue goes to

And f one has a big problem, which is no matter how popular f one is, They have to pay out to all the teams, the franchises. So, you know, half the revenue goes to

16:31

the Aston Martin team and then the Mercedes team and whoever else So UFC doesn't have any of that. All the fighters are independent contractors. They don't even pay him salaries. There's no guaranteed salaries. Independent contractors

the Aston Martin team and then the Mercedes team and whoever else So UFC doesn't have any of that. All the fighters are independent contractors. They don't even pay him salaries. There's no guaranteed salaries. Independent contractors

16:42

who make About fifty fifteen to seventeen percent of the overall revenue goes to the fighters. Way less than every other sport, no teams, no no no rev sharing with anybody, You bring that up later in your presentation? We do I do have a risk slide, which is,

who make About fifty fifteen to seventeen percent of the overall revenue goes to the fighters. Way less than every other sport, no teams, no no no rev sharing with anybody, You bring that up later in your presentation? We do I do have a risk slide, which is,

16:56

around that. Yes.

around that. Yes.

16:57

And the best part, this is all AI resists Like, we don't know what the hell's gonna happen with AI. AI is pretty clearly the next big thing, and it's gonna wreck a bunch of industry. It's gonna redo the way that insurance works and the way that cars work and the way that you know, software is built and and all this stuff.

And the best part, this is all AI resists Like, we don't know what the hell's gonna happen with AI. AI is pretty clearly the next big thing, and it's gonna wreck a bunch of industry. It's gonna redo the way that insurance works and the way that cars work and the way that you know, software is built and and all this stuff.

17:12

How are you gonna use AI to generate? Like, you can't use AI to make two guys fight. In a in a in a ring. It's not gonna happen. And so this is a AI proof,

How are you gonna use AI to generate? Like, you can't use AI to make two guys fight. In a in a in a ring. It's not gonna happen. And so this is a AI proof,

17:21

industry, which is nice because Warren Buffett,

industry, which is nice because Warren Buffett,

17:23

Buff, daddy, he's looking for things that are not gonna change. And I think this is not gonna change. Alright. Last one, it's growing nicely. So it's growing twenty percent a year right now, but there's also the big the big prize with any sports league is media rights deals.

Buff, daddy, he's looking for things that are not gonna change. And I think this is not gonna change. Alright. Last one, it's growing nicely. So it's growing twenty percent a year right now, but there's also the big the big prize with any sports league is media rights deals.

17:36

And the media rights for both of these are coming up this year and next. And so they have a chance to renegotiate and basically double,

And the media rights for both of these are coming up this year and next. And so they have a chance to renegotiate and basically double,

17:42

what they're getting paid for by all the streaming companies, by net Flicks and by Amazon and ESPN and all the companies that want, they need live sports because live sports are one of the only things that people watch concurrently and have to look at the ads because they're watching during the thing. There's no DVR. There's no there's no binge mode. There's no streaming.

what they're getting paid for by all the streaming companies, by net Flicks and by Amazon and ESPN and all the companies that want, they need live sports because live sports are one of the only things that people watch concurrently and have to look at the ads because they're watching during the thing. There's no DVR. There's no there's no binge mode. There's no streaming.

18:01

And so

And so

18:02

live sports is there's one of the few live sports assets that exist and the media deals are coming up, and they might be a lot bigger than people think. Alright. Last few slides. Consistent cash flow. So these are profitable companies. They're spit off cash.

live sports is there's one of the few live sports assets that exist and the media deals are coming up, and they might be a lot bigger than people think. Alright. Last few slides. Consistent cash flow. So these are profitable companies. They're spit off cash.

18:14

You know, they're spitting off, you know, couple hundred million bucks a year free free cash flow. And they don't need to invest it. They don't own a ton of, real estate or they don't have to buy more machines in order to grow. They just put on they just keep putting it on shows. It's all variable.

You know, they're spitting off, you know, couple hundred million bucks a year free free cash flow. And they don't need to invest it. They don't own a ton of, real estate or they don't have to buy more machines in order to grow. They just put on they just keep putting it on shows. It's all variable.

18:29

Couple of the risks that are worth mentioning. It's got a bunch of debt. They use debt to buy the the the franchises that are these leagues. And so, they still have a few billion dollars of debt. And last thing,

Couple of the risks that are worth mentioning. It's got a bunch of debt. They use debt to buy the the the franchises that are these leagues. And so, they still have a few billion dollars of debt. And last thing,

18:41

stock performance has not been great. I think, this is one where we're gonna have to buck the trend gonna have to know what the market doesn't know right now, and we're gonna have to to go ahead and,

stock performance has not been great. I think, this is one where we're gonna have to buck the trend gonna have to know what the market doesn't know right now, and we're gonna have to to go ahead and,

18:49

outperform. What date did that drop? So the they merged

outperform. What date did that drop? So the they merged

18:53

in, like,

in, like,

18:54

mid twenty twenty three. But does that drop because Vincent man? Not just Vincent man. I think, basically, what happened was They merged. People didn't understand the terms. They didn't understand what was gonna happen, what was the plan, all that stuff, and the Vince McMan stuff happened at the same time. Got it. And so they dropped about fifteen percent on the merger, which is kinda crazy. Before they were both public, and they were both trading at about eight to ten billion in valuation.

mid twenty twenty three. But does that drop because Vincent man? Not just Vincent man. I think, basically, what happened was They merged. People didn't understand the terms. They didn't understand what was gonna happen, what was the plan, all that stuff, and the Vince McMan stuff happened at the same time. Got it. And so they dropped about fifteen percent on the merger, which is kinda crazy. Before they were both public, and they were both trading at about eight to ten billion in valuation.

19:19

And so when they merged, they were supposed to be, like, a twenty billion dollar entity,

And so when they merged, they were supposed to be, like, a twenty billion dollar entity,

19:23

and they're currently trading at fourteen,

and they're currently trading at fourteen,

19:25

right after they merged. So that was that's what happened last year.

right after they merged. So that was that's what happened last year.

19:29

Lastly, couple other risks, like you talked about, fighters not getting paid enough. So their cost could go up if the fighters ever unionized.

Lastly, couple other risks, like you talked about, fighters not getting paid enough. So their cost could go up if the fighters ever unionized.

19:35

And we're able to collectively bargain, which they haven't done, but the NBA and NFL all has.

And we're able to collectively bargain, which they haven't done, but the NBA and NFL all has.

19:40

And lastly, I don't know what's gonna happen if Dana ever leaves. He is the powerhouse in CEO who's driving this thing. He's cashed out. So he,

And lastly, I don't know what's gonna happen if Dana ever leaves. He is the powerhouse in CEO who's driving this thing. He's cashed out. So he,

19:49

does not own the same stake that he owned before.

does not own the same stake that he owned before.

19:52

He's not even on if you go look at the stock filings. He's not on the cap table. So he said he has skin in the game still, but it's not listed anywhere. So I'm not sure what he has. And, he might, you know, might want my retire one day. I think that would be a a big shock to the business, like Zuck retiring or or Bezos retiring, you know, it it can affect the business. Can I add a few a few risks? Let me add a few risks. Yeah. Go for it. Alright. First, Dana White is insane.

He's not even on if you go look at the stock filings. He's not on the cap table. So he said he has skin in the game still, but it's not listed anywhere. So I'm not sure what he has. And, he might, you know, might want my retire one day. I think that would be a a big shock to the business, like Zuck retiring or or Bezos retiring, you know, it it can affect the business. Can I add a few a few risks? Let me add a few risks. Yeah. Go for it. Alright. First, Dana White is insane.

20:16

So he's mostly insane in a good way, but there's a lot of liability. There's a lot of liability in this industry because we're about grown men fighting in their underwear in front of millions of people. The t the person who likes that and runs that, as well as the person who actually does that. In order to be great at that, you have to be insane. And so what that means is there's been risks with Dana. Dana has said a lot of crazy stuff. I don't even think that I'm not even gonna say if I think it's right or wrong that irrelevant. What's irrelevant is that a lot of people think it's wrong.

So he's mostly insane in a good way, but there's a lot of liability. There's a lot of liability in this industry because we're about grown men fighting in their underwear in front of millions of people. The t the person who likes that and runs that, as well as the person who actually does that. In order to be great at that, you have to be insane. And so what that means is there's been risks with Dana. Dana has said a lot of crazy stuff. I don't even think that I'm not even gonna say if I think it's right or wrong that irrelevant. What's irrelevant is that a lot of people think it's wrong.

20:42

He also got in trouble for Smack and his wife, and that was on video. Vincent Mann's now in trouble for,

He also got in trouble for Smack and his wife, and that was on video. Vincent Mann's now in trouble for,

20:48

not even sexual harassment. I think it's beyond that. And then also, like, the third famous guy in the UFC right now, Sean Strickland, again, I don't care if you like what he says or dislike what there's a lot of people who dislikes what he says as it regards to, like, the whole trans thing and gay thing. And so inherently, there's gonna be all types of nutty people like that. I think it won't impact the business at all. I think it's actually gonna make the business better because the people who are behind them are gonna be harder behind them. And I think but but I do think it will scare institutional money.

not even sexual harassment. I think it's beyond that. And then also, like, the third famous guy in the UFC right now, Sean Strickland, again, I don't care if you like what he says or dislike what there's a lot of people who dislikes what he says as it regards to, like, the whole trans thing and gay thing. And so inherently, there's gonna be all types of nutty people like that. I think it won't impact the business at all. I think it's actually gonna make the business better because the people who are behind them are gonna be harder behind them. And I think but but I do think it will scare institutional money.

21:15

And that's basically my downside. Well And that lawsuit, that that lawsuit is actually a pretty big lawsuit. So I think that the only,

And that's basically my downside. Well And that lawsuit, that that lawsuit is actually a pretty big lawsuit. So I think that the only,

21:21

counter to that is

counter to that is

21:23

Usually, the risks are what ifs.

Usually, the risks are what ifs.

21:26

All the things you mentioned have already happened. They've already happened. They've already happened, and the business is

All the things you mentioned have already happened. They've already happened. They've already happened, and the business is

21:32

Doing fine. Right? So, like, Dana has been saying crazy stuff for twenty years.

Doing fine. Right? So, like, Dana has been saying crazy stuff for twenty years.

21:37

Is it what? Okay. If he I guess he'll just continue. Continue as is. That's business But that's a risk. That's a risk. That's a what if. I think there's some some risk there, but but not that much. In fact, I would actually say

Is it what? Okay. If he I guess he'll just continue. Continue as is. That's business But that's a risk. That's a risk. That's a what if. I think there's some some risk there, but but not that much. In fact, I would actually say

21:48

they the UFC has shown tremendous anti fragility. So, for example,

they the UFC has shown tremendous anti fragility. So, for example,

21:53

if this is a business that depends on live events,

if this is a business that depends on live events,

21:57

It's all based on live events.

It's all based on live events.

21:59

And it survived COVID.

And it survived COVID.

22:01

It could survive anything. Right? Live events had to all shut down, and the UFC

It could survive anything. Right? Live events had to all shut down, and the UFC

22:05

figured out a way. Why? Because founder CEO, he's got the willpower. The guy went to, like, Abu Dhabi created a bubble and start created something called Fight Island, and host of the fights in a bubble on Fine Island himself.

figured out a way. Why? Because founder CEO, he's got the willpower. The guy went to, like, Abu Dhabi created a bubble and start created something called Fight Island, and host of the fights in a bubble on Fine Island himself.

22:18

You know, they found a way around the pandemic. I think they could find a way way around But I'm an idiot. Keep in mind I'm an idiot. I don't think that's gonna impact any of the business. I think all those things are gonna make their business, their revenue, the profit greater. I just wonder how will that impact like, a fidelity or one of the if one of these big companies wants to buy a huge chunk of their comp of the stock.

You know, they found a way around the pandemic. I think they could find a way way around But I'm an idiot. Keep in mind I'm an idiot. I don't think that's gonna impact any of the business. I think all those things are gonna make their business, their revenue, the profit greater. I just wonder how will that impact like, a fidelity or one of the if one of these big companies wants to buy a huge chunk of their comp of the stock.

22:37

Yeah. Yeah. I I think that's that's fair.

Yeah. Yeah. I I think that's that's fair.

22:40

Alright. Well, last couple things, I think the global nature of this is is underrated. And so when you think about where does growth come from for these types of leads, comes from two things. One is streaming streaming deals, which are getting bigger and bigger and bigger. And the other is, globalization.

Alright. Well, last couple things, I think the global nature of this is is underrated. And so when you think about where does growth come from for these types of leads, comes from two things. One is streaming streaming deals, which are getting bigger and bigger and bigger. And the other is, globalization.

22:53

I don't know if you know, but the NBA does, like, crazy amount of work. To globalize.

I don't know if you know, but the NBA does, like, crazy amount of work. To globalize.

22:58

They, you know, have, like, camps all throughout Africa and India. They go every summer. They broadcast games. They cut deals to broadcast games. They will play a game in in Europe to try to get fans. The NFL does the same thing. They play a game in London to try to get fans there. But the UFC actually,

They, you know, have, like, camps all throughout Africa and India. They go every summer. They broadcast games. They cut deals to broadcast games. They will play a game in in Europe to try to get fans. The NFL does the same thing. They play a game in London to try to get fans there. But the UFC actually,

23:13

uh-uh, like inherently has that. They get champions from all over the world. But they've never gone to Africa. They've I don't I I think maybe one time they've done one event in China. Basically China, India, and Africa are still untapped, but they're proven that they have product market fit.

uh-uh, like inherently has that. They get champions from all over the world. But they've never gone to Africa. They've I don't I I think maybe one time they've done one event in China. Basically China, India, and Africa are still untapped, but they're proven that they have product market fit.

23:27

They have they have they have fans that just haven't done the events there yet. And the biggest case for this is really that these leagues

They have they have they have fans that just haven't done the events there yet. And the biggest case for this is really that these leagues

23:34

dev they develop lifelong fans.

dev they develop lifelong fans.

23:37

You know, you've been a fan, and I I would guess that twenty years from now, you're probably still gonna be a fan. Your kids might become fans.

You know, you've been a fan, and I I would guess that twenty years from now, you're probably still gonna be a fan. Your kids might become fans.

23:44

This is how sports works. It's basically generational people watch them till they're, you know, my grandparents will watch sports, but then they'll take their kids to the events and they'll get their kids involved and they they become fans as well.

This is how sports works. It's basically generational people watch them till they're, you know, my grandparents will watch sports, but then they'll take their kids to the events and they'll get their kids involved and they they become fans as well.

23:55

The UFC is only thirty years old.

The UFC is only thirty years old.

23:57

That's incredibly young when it comes to a a league like this. And you know what they're better at than everyone else, telling stories and creating characters. There without a doubt the best at this. They kick ass compared to any of the other leagues. So check this out. This is on Instagram.

That's incredibly young when it comes to a a league like this. And you know what they're better at than everyone else, telling stories and creating characters. There without a doubt the best at this. They kick ass compared to any of the other leagues. So check this out. This is on Instagram.

24:11

The NFL, which the biggest most profitable sports league in the United States, biggest most profitable league has twenty nine million followers. DFC has thirty nine million followers. Because they are better at social media and they're better at storytelling,

The NFL, which the biggest most profitable sports league in the United States, biggest most profitable league has twenty nine million followers. DFC has thirty nine million followers. Because they are better at social media and they're better at storytelling,

24:23

which is essentially saying they're better at the way the world works now. And then NFL was better at the way the world worked twenty years ago.

which is essentially saying they're better at the way the world works now. And then NFL was better at the way the world worked twenty years ago.

24:30

Same thing. You know, here's YouTube. Here's, the YouTube channel has seventeen and a half million subscribers, for the UFC on YouTube,

Same thing. You know, here's YouTube. Here's, the YouTube channel has seventeen and a half million subscribers, for the UFC on YouTube,

24:37

baseball, which has been around for whatever, hundred years, four point nine million subscribers.

baseball, which has been around for whatever, hundred years, four point nine million subscribers.

24:42

It's it's insane how they get dominated by this.

It's it's insane how they get dominated by this.

24:45

And so they, you know, you get to you get to ride on the back of that. And the other thing is that,

And so they, you know, you get to you get to ride on the back of that. And the other thing is that,

24:50

Ari Emanuel's company, which bought bought these. They're just better at negotiating media rights. That's what they've been doing for their entire career for for, you know, actors and and television shows and whatnot. Better

Ari Emanuel's company, which bought bought these. They're just better at negotiating media rights. That's what they've been doing for their entire career for for, you know, actors and and television shows and whatnot. Better

25:01

negotiating sponsorships.

negotiating sponsorships.

25:03

If you look at where the UFC was when they bought it versus where it is now, you know, it was unprofitable there and growing, you know, growing at a okay clip. Now it's growing faster and more profitable, and it is profitable because of the work that they've done. WWF just kind of a ten year five billion dollar deal with Netflix just for one of their shows, which is kind of insane. Gonna go from USA network to Netflix.

If you look at where the UFC was when they bought it versus where it is now, you know, it was unprofitable there and growing, you know, growing at a okay clip. Now it's growing faster and more profitable, and it is profitable because of the work that they've done. WWF just kind of a ten year five billion dollar deal with Netflix just for one of their shows, which is kind of insane. Gonna go from USA network to Netflix.

25:23

These are now, like, three hundred million dollar a year streaming deals that they're picking up, and that is all, Sam. Thank you very much. Ladies and gentlemen, Stockapalooza.

These are now, like, three hundred million dollar a year streaming deals that they're picking up, and that is all, Sam. Thank you very much. Ladies and gentlemen, Stockapalooza.

25:33

That was very good. That was very good. My,

That was very good. That was very good. My,

25:37

Bias is heavy here. I I tell people that they they ask, like, what my hobbies are if I pay attention to sports, I say I pay attention to only two sports fighting and the other one's way nerdy or track and field. I like track and field and UFC.

Bias is heavy here. I I tell people that they they ask, like, what my hobbies are if I pay attention to sports, I say I pay attention to only two sports fighting and the other one's way nerdy or track and field. I like track and field and UFC.

25:49

I'm a super fan, and I think there's so many super fans like me. I don't know how that those super fans compared to the other sports. I I don't know if it's as strong, but I'm a huge fan.

I'm a super fan, and I think there's so many super fans like me. I don't know how that those super fans compared to the other sports. I I don't know if it's as strong, but I'm a huge fan.

26:01

The stock

The stock

26:03

It's a it's a good brand. I agree. I think the risks are too high, though. I think they're I think they're Dana is

It's a it's a good brand. I agree. I think the risks are too high, though. I think they're I think they're Dana is

26:10

Do you think if someone left, he could you said that on your second point, it was like anyone can run it. Do you think someone can run it as good as him? I do think you get the benefit of the kind of founder led company

Do you think if someone left, he could you said that on your second point, it was like anyone can run it. Do you think someone can run it as good as him? I do think you get the benefit of the kind of founder led company

26:21

when you have Dana there,

when you have Dana there,

26:23

and you would lose that. If he if he left. So I do think it'll it'll continue to run, but I don't think you'd get that x factor back of what Dana brings to the table and what Vince McMan brought to the table till he was How old is Vincent? He's like eighty or something like that. The guy ran the league for, like, fifty years or something. And he was a character. He was a character on the show. In the show. And I think Dana is a character in the show. I think Dana is the most popular UFC fighter.

and you would lose that. If he if he left. So I do think it'll it'll continue to run, but I don't think you'd get that x factor back of what Dana brings to the table and what Vince McMan brought to the table till he was How old is Vincent? He's like eighty or something like that. The guy ran the league for, like, fifty years or something. And he was a character. He was a character on the show. In the show. And I think Dana is a character in the show. I think Dana is the most popular UFC fighter.

26:48

Right? Well, Connor, but, like, I think he could run this thing for, like, thirty more years. Maybe. I think maybe. I think that I think that running this type of league is the harder than any other league. Maybe f one actually would be really challenging because you're they're, like, they kinda seem like divas, but the UFC, I think dealing with these types of fighters. Have you ever hung out with a professional fighter or, like, up and coming professional fighters? I I've been around a a handful of them. They're insane. They're insane. They're they're hard to work with. Their their nuts. And it would be very challenging. And also the lawsuit that they have so to put that in perspective, you said that they pay their fighters fourteen percent. How much does the NFL pay their or the NFL and NBA are about fifty percent.

Right? Well, Connor, but, like, I think he could run this thing for, like, thirty more years. Maybe. I think maybe. I think that I think that running this type of league is the harder than any other league. Maybe f one actually would be really challenging because you're they're, like, they kinda seem like divas, but the UFC, I think dealing with these types of fighters. Have you ever hung out with a professional fighter or, like, up and coming professional fighters? I I've been around a a handful of them. They're insane. They're insane. They're they're hard to work with. Their their nuts. And it would be very challenging. And also the lawsuit that they have so to put that in perspective, you said that they pay their fighters fourteen percent. How much does the NFL pay their or the NFL and NBA are about fifty percent.

27:29

That's the the collective bargaining. That's what they negotiated.

That's the the collective bargaining. That's what they negotiated.

27:31

And right now, you made a case that they're a monopoly. That's the exact case that the lawsuit is trying to bake, which is that UFC's monopoly and that you guys, you you have to allow us to do collective bargaining.

And right now, you made a case that they're a monopoly. That's the exact case that the lawsuit is trying to bake, which is that UFC's monopoly and that you guys, you you have to allow us to do collective bargaining.

27:42

And I I have looked into it a little bit, but it seems like they've got a great case, and that could meaningfully change the economics.

And I I have looked into it a little bit, but it seems like they've got a great case, and that could meaningfully change the economics.

27:49

It could. It could. That is I I I would put that as the number one risk to to shift the economics of the business. Dude, there's some guys, like, they'll say in the post fight, interviews.

It could. It could. That is I I I would put that as the number one risk to to shift the economics of the business. Dude, there's some guys, like, they'll say in the post fight, interviews.

27:58

They're like, I'm the champion now. Eight months ago, I was driving Uber.

They're like, I'm the champion now. Eight months ago, I was driving Uber.

28:02

And, like, free And I'm still driving an Uber because I don't

And, like, free And I'm still driving an Uber because I don't

28:07

Well, like, to put this in perspective, there's this guy named Francis Nagany. I think he's from Cameron. He's like the, the American dream. He came over here nothing. I think he worked in, like, a mind, you know, like, a blood diamond type of mind. Like, crazy stuff. He's now champion. Do you know how much money he would he was the world champion in the heavyweight division of the UFC. He looked like an animal. When you think of a heavyweight champion, this is what you want this guy to look at look like. Beautiful story, great guy. Do you know how much he was getting paid per fight?

Well, like, to put this in perspective, there's this guy named Francis Nagany. I think he's from Cameron. He's like the, the American dream. He came over here nothing. I think he worked in, like, a mind, you know, like, a blood diamond type of mind. Like, crazy stuff. He's now champion. Do you know how much money he would he was the world champion in the heavyweight division of the UFC. He looked like an animal. When you think of a heavyweight champion, this is what you want this guy to look at look like. Beautiful story, great guy. Do you know how much he was getting paid per fight?

28:31

I feel like it was like five hundred k or something. It was about six hundred thousand dollars. That's how much this guy was getting paid to fight the scariest people on earth. It's insane. A mid level engineer at Google that makes more than that. It's a simple battle. Right? Able to plan it. Yeah. It's it's it's a

I feel like it was like five hundred k or something. It was about six hundred thousand dollars. That's how much this guy was getting paid to fight the scariest people on earth. It's insane. A mid level engineer at Google that makes more than that. It's a simple battle. Right? Able to plan it. Yeah. It's it's it's a

28:49

same. And so that needs to change. I think for there to be true longevity

same. And so that needs to change. I think for there to be true longevity

28:53

for the sport. And if that changes, there's actually gonna be bad stuff for the business. So at least it'll be less good. But great presentation.

for the sport. And if that changes, there's actually gonna be bad stuff for the business. So at least it'll be less good. But great presentation.

29:00

I, I'm a fan of UFC. I think that was a great present presentation.

I, I'm a fan of UFC. I think that was a great present presentation.

29:04

Alright. Your turn.

Alright. Your turn.

29:05

Alright.

Alright.

29:06

Now it's my turn. So look, we said the disclosure already that this really we don't know anything. So I'm actually gonna not even focus too much on the numbers. I'm gonna focus story. And I just wanna put this disclosure up front. Now before I get into this, I wanna tell you a few other companies that I looked at. I looked at Rivient. I looked at twenty three me. That's a total I looked at container store because maybe that's the next meme stop. And, of course, I like the HubSpot because I own HubSpot and I'm trying to do a little pump and dump scheme. I'm kidding. I'm kidding. I'm not gonna talk about that. Now I was trying to think about this, and I was like,

Now it's my turn. So look, we said the disclosure already that this really we don't know anything. So I'm actually gonna not even focus too much on the numbers. I'm gonna focus story. And I just wanna put this disclosure up front. Now before I get into this, I wanna tell you a few other companies that I looked at. I looked at Rivient. I looked at twenty three me. That's a total I looked at container store because maybe that's the next meme stop. And, of course, I like the HubSpot because I own HubSpot and I'm trying to do a little pump and dump scheme. I'm kidding. I'm kidding. I'm not gonna talk about that. Now I was trying to think about this, and I was like,

29:35

should we do, like, a Wolf of Wall Street pitch? You know, how he's pitching penny stocks where he's like, Hi, John. The reason I'm calling is I've got this new patent technology

should we do, like, a Wolf of Wall Street pitch? You know, how he's pitching penny stocks where he's like, Hi, John. The reason I'm calling is I've got this new patent technology

29:43

that has huge upside potential and little downside potential. Is this something where I could maybe get in on the ground floor?

that has huge upside potential and little downside potential. Is this something where I could maybe get in on the ground floor?

29:51

Yeah.

Yeah.

29:52

And then I realized I'm not gonna do that. I'm just gonna tell you, I'm just gonna base all of everything that I'm doing here on what do I think is cool and interesting? And so what do I think is cool and interesting? Look, if you wanna make great money, you invest in Amazon. It's a slow, predictable. It's gonna be I think it's a great company, but that sound interesting to me. We all know that same with e everything Elon's doing. At this point, he's the man. I can't invest in Tesla. I can't anything he's ever done. That's Dorothy plus look at him. I don't wanna invest in that. Yeah. I like how you use the pre plastic surgery. Elon won there. Nice. There's a point. I've got a point here, and then I looked at Bill Gates, and I looked at those guys, like, you know, Microsoft also a great company. I like the CEO. They're doing great things, but we've been there done that. I think it all makes money, but it's a little bit boring. It's not for this podcast. So what is interesting? Look at this guy. Do you know who that is?

And then I realized I'm not gonna do that. I'm just gonna tell you, I'm just gonna base all of everything that I'm doing here on what do I think is cool and interesting? And so what do I think is cool and interesting? Look, if you wanna make great money, you invest in Amazon. It's a slow, predictable. It's gonna be I think it's a great company, but that sound interesting to me. We all know that same with e everything Elon's doing. At this point, he's the man. I can't invest in Tesla. I can't anything he's ever done. That's Dorothy plus look at him. I don't wanna invest in that. Yeah. I like how you use the pre plastic surgery. Elon won there. Nice. There's a point. I've got a point here, and then I looked at Bill Gates, and I looked at those guys, like, you know, Microsoft also a great company. I like the CEO. They're doing great things, but we've been there done that. I think it all makes money, but it's a little bit boring. It's not for this podcast. So what is interesting? Look at this guy. Do you know who that is?

30:37

That is, the LVMH guy. Right? The LVMH

That is, the LVMH guy. Right? The LVMH

30:41

guy. I we're gonna call him escargot because I don't know how to pronounce his name. What's his name? Bernard.

guy. I we're gonna call him escargot because I don't know how to pronounce his name. What's his name? Bernard.

30:46

Bernard all how do you say his last name? Bernard,

Bernard all how do you say his last name? Bernard,

30:50

Arnold. Yeah. We're gonna call it escharcoal. But Arnold, as we go around with that.

Arnold. Yeah. We're gonna call it escharcoal. But Arnold, as we go around with that.

30:55

The slug eating suit, wear it, beautiful, French man. That's what we're gonna call this guy.

The slug eating suit, wear it, beautiful, French man. That's what we're gonna call this guy.

31:01

So he's great. So LVMH, what here's what they do. This isn't my company, but this is the person I got inspired by. So they own

So he's great. So LVMH, what here's what they do. This isn't my company, but this is the person I got inspired by. So they own

31:08

a hundred plus luxury brands. Dior,

a hundred plus luxury brands. Dior,

31:12

Fenny,

Fenny,

31:13

Sephora,

Sephora,

31:14

Tiffany's hublot, they own luxury brands. And the reason why this guy this guy got into the luxury business, and I found three quotes by him. You use Warren Buffett as your kinda like rule setter for how you're gonna pitch a stock gonna use this guy. He used to own a construction company, and then he got super into luxury businesses. And I'm gonna explain three quotes as to why he said that. So he said,

Tiffany's hublot, they own luxury brands. And the reason why this guy this guy got into the luxury business, and I found three quotes by him. You use Warren Buffett as your kinda like rule setter for how you're gonna pitch a stock gonna use this guy. He used to own a construction company, and then he got super into luxury businesses. And I'm gonna explain three quotes as to why he said that. So he said,

31:33

in luxury business, you have to build on heritage. And so have you ever heard that phrase, Lindy? So Lindy is a popular phrase that's floating around on the Twitter circles. It basically just means the time of which something has existed is directly correlated to the time that it will continue to exist. So something that's been around for a long time will likely be around for a long something that's brand new and hasn't been around for a long time can go away easier. And so for in order to build a luxury brand would attracted this guy. He's like, I need something that can last that's been around for a long time, and that means it's gonna last a long He also said luxury goods are the only area in which it's possible to make luxury margins. Okay? High margins. So I've gotta find a company that has that can last a long time because it's been around for a long time. It has high margins. And then the final thing he says is affordable luxury. Those two words, they don't even go together. Meaning, well, I've gotta find some a product, a company that sells a product that is expensive and exclusive.

in luxury business, you have to build on heritage. And so have you ever heard that phrase, Lindy? So Lindy is a popular phrase that's floating around on the Twitter circles. It basically just means the time of which something has existed is directly correlated to the time that it will continue to exist. So something that's been around for a long time will likely be around for a long something that's brand new and hasn't been around for a long time can go away easier. And so for in order to build a luxury brand would attracted this guy. He's like, I need something that can last that's been around for a long time, and that means it's gonna last a long He also said luxury goods are the only area in which it's possible to make luxury margins. Okay? High margins. So I've gotta find a company that has that can last a long time because it's been around for a long time. It has high margins. And then the final thing he says is affordable luxury. Those two words, they don't even go together. Meaning, well, I've gotta find some a product, a company that sells a product that is expensive and exclusive.

32:21

Now

Now

32:22

what fits that bill, Sean? Originally,

what fits that bill, Sean? Originally,

32:25

I thought of James Bond. James Bond, like, that's, like, the definition of cool guy and exclusive and, like, you dream wanting to be him, but it's gonna be impossible to attain. And so, the the product that a and the brand that I almost chose was what's something that James Bond is is is synonymous for. Do you know what that car is?

I thought of James Bond. James Bond, like, that's, like, the definition of cool guy and exclusive and, like, you dream wanting to be him, but it's gonna be impossible to attain. And so, the the product that a and the brand that I almost chose was what's something that James Bond is is is synonymous for. Do you know what that car is?

32:42

The Aston Martin, I believe. That is an Aston Martin. And so Aston Martin, that kinda that kinda that kinda got me interested. At Aston Martin has a strong brand, but they have a shit multiple.

The Aston Martin, I believe. That is an Aston Martin. And so Aston Martin, that kinda that kinda that kinda got me interested. At Aston Martin has a strong brand, but they have a shit multiple.

32:53

They've got a decent product, but it's actually one of the least, valuable car companies in the world. I believe right now, it's only trading at, like, two billion dollars. So it's not that big of a business.

They've got a decent product, but it's actually one of the least, valuable car companies in the world. I believe right now, it's only trading at, like, two billion dollars. So it's not that big of a business.

33:02

Now, asset Martin, it's been around for a long time. I think it's gonna continue being around for a long time. I think a lot of young men dream of having an asset Martin.

Now, asset Martin, it's been around for a long time. I think it's gonna continue being around for a long time. I think a lot of young men dream of having an asset Martin.

33:10

Their margin is shit. So it's been losing money. So that kinda gets it out of the way. I can't do that. And in terms of, like, being exclusive and expensive, it is expensive, but because not that many people want an asset Martin compared to all the other cars, I wouldn't exactly say that it's that exclusive. So asset Martin not good enough. So what is good enough?

Their margin is shit. So it's been losing money. So that kinda gets it out of the way. I can't do that. And in terms of, like, being exclusive and expensive, it is expensive, but because not that many people want an asset Martin compared to all the other cars, I wouldn't exactly say that it's that exclusive. So asset Martin not good enough. So what is good enough?

33:29

So I found a company

So I found a company

33:31

that has been around for a very long time. It's got huge margins. In fact, it's got the best margins in its industry.

that has been around for a very long time. It's got huge margins. In fact, it's got the best margins in its industry.

33:39

It's very expensive and it's so exclusive

It's very expensive and it's so exclusive

33:42

that even if you wanted to buy it in many cases, you cannot.

that even if you wanted to buy it in many cases, you cannot.

33:46

Do I have your interest? You have me interested. You had my attention, and now you have my interest.

Do I have your interest? You have me interested. You had my attention, and now you have my interest.

33:51

Okay. So you probably don't know who this person is. Do you?

Okay. So you probably don't know who this person is. Do you?

33:55

Alright. This man, he's he's no longer around, but he was born in the early nineteen hundreds. His name is Enzo. Enzo started out as a race car driver. And he drove I actually believe he might have drove for,

Alright. This man, he's he's no longer around, but he was born in the early nineteen hundreds. His name is Enzo. Enzo started out as a race car driver. And he drove I actually believe he might have drove for,

34:07

Esta Martin at one point, but, he also drove for Fiat,

Esta Martin at one point, but, he also drove for Fiat,

34:11

an Italian car company.

an Italian car company.

34:12

And he was so into race car driving that he goes, this these fiats, they ain't cutting it for me. I have to make my own car. And I'm gonna make the best car. He goes, I'm basically just gonna make an engine. And I'm gonna put wheels on it. And aerodynamics be damned. That's what you say if you have a shit engine. I'm only gonna focus on the engine, and he was obsessed with making an engine. And eventually, other people got obsessed with his engines. And so in the first year, he made a car for himself in the second year, he sold two cars. In the third year, he sold only about eight car and he's kept slowly growing. And eventually,

And he was so into race car driving that he goes, this these fiats, they ain't cutting it for me. I have to make my own car. And I'm gonna make the best car. He goes, I'm basically just gonna make an engine. And I'm gonna put wheels on it. And aerodynamics be damned. That's what you say if you have a shit engine. I'm only gonna focus on the engine, and he was obsessed with making an engine. And eventually, other people got obsessed with his engines. And so in the first year, he made a car for himself in the second year, he sold two cars. In the third year, he sold only about eight car and he's kept slowly growing. And eventually,

34:42

that company became

that company became

34:44

Ferrari.

Ferrari.

34:45

So Ferrari is my company. You're gonna like Enzo Ferrari. Enzo Ferrari, he's a crazy person. He's sort of like Connor McGregor, that quote that we have from Connor McGregor. He goes, I'm like Vincent Van Go. I've lost my mind of this game. Enzo Ferrari is like that. He's got this great quote where he goes, a great mania to which one must sacrifice everything without reticence, without hesitation.

So Ferrari is my company. You're gonna like Enzo Ferrari. Enzo Ferrari, he's a crazy person. He's sort of like Connor McGregor, that quote that we have from Connor McGregor. He goes, I'm like Vincent Van Go. I've lost my mind of this game. Enzo Ferrari is like that. He's got this great quote where he goes, a great mania to which one must sacrifice everything without reticence, without hesitation.

35:04

So he's one of these guys who is totally bought into his brand, sort of like Dana White where he lives and breathes the shit. He was known as being kind of a shit dad, kind of a shit husband, And all he cared about was Ferrari making it great. So let me give you a little bit high level facts about Ferrari. In two thousand twenty three, the revenue grew seventeen percent to about six and a half billion dollars. They're very profitable. Their net profit last year was one point three billion dollars. Now here's an interesting stats.

So he's one of these guys who is totally bought into his brand, sort of like Dana White where he lives and breathes the shit. He was known as being kind of a shit dad, kind of a shit husband, And all he cared about was Ferrari making it great. So let me give you a little bit high level facts about Ferrari. In two thousand twenty three, the revenue grew seventeen percent to about six and a half billion dollars. They're very profitable. Their net profit last year was one point three billion dollars. Now here's an interesting stats.

35:30

An interesting stat. So Honda last year, sold something like one point two million cars.

An interesting stat. So Honda last year, sold something like one point two million cars.

35:36

Ferrari only sold thirteen thousand cars.

Ferrari only sold thirteen thousand cars.

35:40

Their market cap. Now when I started working on this, their market cap was a lot lower. They released some really big news on Friday, and their market cap skyrocketed, and they are now worth seventy two billion dollars. That makes them roughly this eighth or seventh largest car company in the world and they're still growing at around twenty three percent a year. Unfortunately, their PE ratio is crazy high. It's like fifty four. So fifty four times earning, which is, like, one of the highest. But check out this. Look at the highest, or the most valuable car companies in the world. Number one, Tesla, number two, Toyota, and then Porsche Mercedes, And then you go down to Ferrari, sixty eight billion dollars. I think, on Friday, it was, like, seventy five billion.

Their market cap. Now when I started working on this, their market cap was a lot lower. They released some really big news on Friday, and their market cap skyrocketed, and they are now worth seventy two billion dollars. That makes them roughly this eighth or seventh largest car company in the world and they're still growing at around twenty three percent a year. Unfortunately, their PE ratio is crazy high. It's like fifty four. So fifty four times earning, which is, like, one of the highest. But check out this. Look at the highest, or the most valuable car companies in the world. Number one, Tesla, number two, Toyota, and then Porsche Mercedes, And then you go down to Ferrari, sixty eight billion dollars. I think, on Friday, it was, like, seventy five billion.

36:19

So they're more valuable than being w more valuable than Volkswagen, more valuable than Honda, and they only make something like thirteen thousand cars a year. Isn't that insane? That's crazy. So here's my case as to why this is an interesting company. I'm gonna try and talk a little bit about the numbers, but again, that's not our specialty. So I'm gonna try, say, a little bit away from it. But They are a cash cow. They are the cash cow of the industry. In fact, Ferrari makes more profit per unit,

So they're more valuable than being w more valuable than Volkswagen, more valuable than Honda, and they only make something like thirteen thousand cars a year. Isn't that insane? That's crazy. So here's my case as to why this is an interesting company. I'm gonna try and talk a little bit about the numbers, but again, that's not our specialty. So I'm gonna try, say, a little bit away from it. But They are a cash cow. They are the cash cow of the industry. In fact, Ferrari makes more profit per unit,

36:44

for every unit they sell, they make more profit than any other car in maker in the business. Some car makers, in fact, like GM, they actually lose money, and they hope to make monies through their other models or through selling parts or fixing the cars Ferrari makes a profit on everything, everything they make. Last year, or sorry, in jail in twenty one, they made over a hundred grand per unit sold.

for every unit they sell, they make more profit than any other car in maker in the business. Some car makers, in fact, like GM, they actually lose money, and they hope to make monies through their other models or through selling parts or fixing the cars Ferrari makes a profit on everything, everything they make. Last year, or sorry, in jail in twenty one, they made over a hundred grand per unit sold.

37:04

The second place company that sold the profited the second most was Tesla at sixty seven hundred dollars. And then it's saying Wow. So, you know, whatever, fifteen x more profit per car than than the second place person. But it gets even crazier. So in order to make the same amount of profit, part profit that Ferrari makes per car, Ford has to sell nine hundred cars. Okay. And you just think Ford, that's just a middle line car. Okay. What about Mercedes? Mercedes has to sell sixty seven BMW also SSL sixty seven. They make the most profit of any other car, luxury car maker in the business and then make more profit per unit sold than any other car in the in the industry.

The second place company that sold the profited the second most was Tesla at sixty seven hundred dollars. And then it's saying Wow. So, you know, whatever, fifteen x more profit per car than than the second place person. But it gets even crazier. So in order to make the same amount of profit, part profit that Ferrari makes per car, Ford has to sell nine hundred cars. Okay. And you just think Ford, that's just a middle line car. Okay. What about Mercedes? Mercedes has to sell sixty seven BMW also SSL sixty seven. They make the most profit of any other car, luxury car maker in the business and then make more profit per unit sold than any other car in the in the industry.

37:42

Now here's the where it gets even crazier crazier.

Now here's the where it gets even crazier crazier.

37:45

You don't choose Ferrari. Ferrari chooses you.

You don't choose Ferrari. Ferrari chooses you.

37:48

So if you so did you do you know about this with Ferrari about their wait list? I did not know this. Alright. So here's how it works.

So if you so did you do you know about this with Ferrari about their wait list? I did not know this. Alright. So here's how it works.

37:55

And there's a lot of mystery around this. Like, they don't even openly say, like, exactly how it works.

And there's a lot of mystery around this. Like, they don't even openly say, like, exactly how it works.

38:01

But let's say you wanna buy a base Ferrari, like, the cheaper models. A lot of times you can just go in and buy it. But if you wanna buy the more expensive one, what they do is they have got a wait list and they look at the wait list and the and in order to

But let's say you wanna buy a base Ferrari, like, the cheaper models. A lot of times you can just go in and buy it. But if you wanna buy the more expensive one, what they do is they have got a wait list and they look at the wait list and the and in order to

38:14

buy the fancier ones oftentimes. You have to buy three to four

buy the fancier ones oftentimes. You have to buy three to four

38:18

of the base models. And so Jay Leno, you know how Jay Leno's a big card nerd? Yep. He's he openly says he goes, I I refuse to buy a Ferrari because of how elitist they are. You have to they're not well, he's like, obviously, they're not the every guy, every man car, but you can't even buy one if you want one. And you have to and and once you buy one, if you if you're able to acquire one, you have to sign paperwork that says that you're not gonna put stupid parts on it, you can't repaint it certain colors. So there there's this lawsuit that just ended recently where this famous celebrity

of the base models. And so Jay Leno, you know how Jay Leno's a big card nerd? Yep. He's he openly says he goes, I I refuse to buy a Ferrari because of how elitist they are. You have to they're not well, he's like, obviously, they're not the every guy, every man car, but you can't even buy one if you want one. And you have to and and once you buy one, if you if you're able to acquire one, you have to sign paperwork that says that you're not gonna put stupid parts on it, you can't repaint it certain colors. So there there's this lawsuit that just ended recently where this famous celebrity

38:48

painted his Ferrari pink, and they sued him. And he had to pay them three hundred and fifty thousand dollars because he posted it on Instagram, and they said that that hurt their rep reputation.

painted his Ferrari pink, and they sued him. And he had to pay them three hundred and fifty thousand dollars because he posted it on Instagram, and they said that that hurt their rep reputation.

38:58

Justin Bieber did the same thing. Justin Bieber bought a car,

Justin Bieber did the same thing. Justin Bieber bought a car,

39:01

and he did three or four things that were crazy. The first thing is he just left the car at the at a hotel parking for, like, a few weeks or something while he traveled. Another thing that he did was I think he took, like, the Ferrari badge off of it. You know, some people debadge the card. It'll be cool.

and he did three or four things that were crazy. The first thing is he just left the car at the at a hotel parking for, like, a few weeks or something while he traveled. Another thing that he did was I think he took, like, the Ferrari badge off of it. You know, some people debadge the card. It'll be cool.

39:15

And so they banned them. Justin Bieber can no longer buy a Ferrari if he wants to. Another thing is Bummer for the Beeps. Bummer for the beads. If you and if you and and just this is very similar to the Rolex in,

And so they banned them. Justin Bieber can no longer buy a Ferrari if he wants to. Another thing is Bummer for the Beeps. Bummer for the beads. If you and if you and and just this is very similar to the Rolex in,

39:28

luxury watch industry. So do you know that if you buy, like, a Rolex

luxury watch industry. So do you know that if you buy, like, a Rolex

39:31

and they find out that you buy it at retail and you flip it for above retail. Oftentimes, the dealer will never sell you a Rolex again. Ferrari does the exact same thing. So if you flip a Ferrari and you don't tell them and ask for their permission, you get in trouble. And so it's a big deal, and they ban you. And so they have so much demand

and they find out that you buy it at retail and you flip it for above retail. Oftentimes, the dealer will never sell you a Rolex again. Ferrari does the exact same thing. So if you flip a Ferrari and you don't tell them and ask for their permission, you get in trouble. And so it's a big deal, and they ban you. And so they have so much demand

39:50

that they literally ban people from buying a five hundred thousand dollar item. Is that insane or what? I mean, that's, like, truly pinnacle of exclusive and elite. Like, people are dying to have this product. Nothing makes me wanna get in more than a wall preventing me from getting in. And they do a great job of creating that wall, and their brand is incredibly hard to kill. So if you if you Google, what are the most expensive cars ever sold at auction?

that they literally ban people from buying a five hundred thousand dollar item. Is that insane or what? I mean, that's, like, truly pinnacle of exclusive and elite. Like, people are dying to have this product. Nothing makes me wanna get in more than a wall preventing me from getting in. And they do a great job of creating that wall, and their brand is incredibly hard to kill. So if you if you Google, what are the most expensive cars ever sold at auction?

40:15

A recent one is a I forget it's a g t o two fifty. I forget which year it is, but it was an eighty million dollar car.

A recent one is a I forget it's a g t o two fifty. I forget which year it is, but it was an eighty million dollar car.

40:22

Eleven of the top fifteen most expensive cars ever sold are Ferrari. In fact, people love Ferrari so much that there's a theme park obviously in Dubai. Just for Ferrari.

Eleven of the top fifteen most expensive cars ever sold are Ferrari. In fact, people love Ferrari so much that there's a theme park obviously in Dubai. Just for Ferrari.

40:34

This they make something so this company what did I say? Seven hundred seven billion dollars a year in revenue?

This they make something so this company what did I say? Seven hundred seven billion dollars a year in revenue?

40:40

Something like that. Six billion. Six billion.

Something like that. Six billion. Six billion.

40:43

Five hundred million of that comes from merch. So a pretty substantial amount just comes from people buying Ferrari hats. And this is even crazier. So for every Ferrari sold,

Five hundred million of that comes from merch. So a pretty substantial amount just comes from people buying Ferrari hats. And this is even crazier. So for every Ferrari sold,

40:53

something like sixty five percent is being sold to someone who already buy or who already owns a and has bought one from a dealer, meaning their LTV is massive.

something like sixty five percent is being sold to someone who already buy or who already owns a and has bought one from a dealer, meaning their LTV is massive.

41:03

They've done a bunch of really crazy, crazy things to prevent, like, or to keep their brand strong. So they have this bounty program.

They've done a bunch of really crazy, crazy things to prevent, like, or to keep their brand strong. So they have this bounty program.

41:10

So they basically have just created a bunch of snitches. So if you're in the streets

So they basically have just created a bunch of snitches. So if you're in the streets

41:14

and you see someone has painted their Ferrari a certain color, has put a modification on it like a part that that Ferrari doesn't approve of. If you report that to Ferrari,

and you see someone has painted their Ferrari a certain color, has put a modification on it like a part that that Ferrari doesn't approve of. If you report that to Ferrari,

41:25

You get an allowance. You get a little bit of money. They pay you to report that people are breaking the rules as they have a new bounty system. It's insane.

You get an allowance. You get a little bit of money. They pay you to report that people are breaking the rules as they have a new bounty system. It's insane.

41:33

Now, I talked about the Lindi effect. So here's the exact definition. The future life expectancy of some non perishable things, like technology or an idea is proportional to their current age. Thus the linear effect proposes the longer a period of something has survived to exist,

Now, I talked about the Lindi effect. So here's the exact definition. The future life expectancy of some non perishable things, like technology or an idea is proportional to their current age. Thus the linear effect proposes the longer a period of something has survived to exist,

41:47

or, the the longer something has existed, the longer it's remaining life expect expectancy. So Ferrari has been around. It's it's gonna be, I believe they were launched in the fifties or so. They're gonna be around, I think, for an a extended period of time. I think Ferrari is a very hard brand to kill. If you put Ferrari on a Rolex, someone's gonna pay extra to buy that Rolex. If you put Ferrari on anything, someone's gonna wanna pay more money to have that that item. Not and that's not the same case with the Honda. It's often

or, the the longer something has existed, the longer it's remaining life expect expectancy. So Ferrari has been around. It's it's gonna be, I believe they were launched in the fifties or so. They're gonna be around, I think, for an a extended period of time. I think Ferrari is a very hard brand to kill. If you put Ferrari on a Rolex, someone's gonna pay extra to buy that Rolex. If you put Ferrari on anything, someone's gonna wanna pay more money to have that that item. Not and that's not the same case with the Honda. It's often

42:14

I don't I mean, there's, like, a handful car companies that are able to pull that off, or there's a handful of any type of companies. I just went to the website and put a six hundred dollar baseball cap into my cart But I need to, like, have a cool down period before I click buy just because I think I don't know if you're selling me the stock, but you're definitely selling me some Ferrari merch today.

I don't I mean, there's, like, a handful car companies that are able to pull that off, or there's a handful of any type of companies. I just went to the website and put a six hundred dollar baseball cap into my cart But I need to, like, have a cool down period before I click buy just because I think I don't know if you're selling me the stock, but you're definitely selling me some Ferrari merch today.

42:32

Was the hat really six hundred dollars? There's yeah. Six hundred dollar hat. The cheapest hat is, like, a hundred and eighty dollars. That's insane.

Was the hat really six hundred dollars? There's yeah. Six hundred dollar hat. The cheapest hat is, like, a hundred and eighty dollars. That's insane.

42:40

That's absolutely insane. Like, I went to a kid's I went to a friend's house the other day, and their kid had, like, a Ferrari coat that he was wearing. Because he, like, he, like, you know, and he has, like, Ferrari toys. And they they sell so much of this stuff. It's insane. Is it was it really a six hundred dollar hat? What makes it so good? Does it does it does the hat drive?

That's absolutely insane. Like, I went to a kid's I went to a friend's house the other day, and their kid had, like, a Ferrari coat that he was wearing. Because he, like, he, like, you know, and he has, like, Ferrari toys. And they they sell so much of this stuff. It's insane. Is it was it really a six hundred dollar hat? What makes it so good? Does it does it does the hat drive?

42:57

Just the entire story you just told me made it so good.

Just the entire story you just told me made it so good.

43:01

It it's an insane brand. And have you ever been in a Ferrari?

It it's an insane brand. And have you ever been in a Ferrari?

43:06

I have been in a ferrari. Yes.

I have been in a ferrari. Yes.

43:08

I've been in I've been in a ferrari. They're definitely cool. My takeaway is that they're a fucking pain in the ass to own. Everyone stares at you. So they've, the that Ferrari red was actually formally the,

I've been in I've been in a ferrari. They're definitely cool. My takeaway is that they're a fucking pain in the ass to own. Everyone stares at you. So they've, the that Ferrari red was actually formally the,

43:21

it was the now racing color of Italy. And Ferara Enzo Ferrari was like, oh, we'll just use that. And then eventually, they got so popular. They patent it,

it was the now racing color of Italy. And Ferara Enzo Ferrari was like, oh, we'll just use that. And then eventually, they got so popular. They patent it,

43:29

or they trademarked

or they trademarked

43:30

that red. So that red is only for Ferrari. But if you're in one of those cars, you get stared at like crazy, which is one of the reasons why people love driving it, I hated driving it for that reason and they're loud and they are kinda rough. They're fucking race cars. It's a race car. And so if you like driving Ferrari, you're gonna love it. My opinion was this is a pain in the ass to drive, but I get it. I get the appeal. Ferrari is bad ass, but their PE ratio is insane. So I don't know how much value is left to be had here, but they but they are growing

that red. So that red is only for Ferrari. But if you're in one of those cars, you get stared at like crazy, which is one of the reasons why people love driving it, I hated driving it for that reason and they're loud and they are kinda rough. They're fucking race cars. It's a race car. And so if you like driving Ferrari, you're gonna love it. My opinion was this is a pain in the ass to drive, but I get it. I get the appeal. Ferrari is bad ass, but their PE ratio is insane. So I don't know how much value is left to be had here, but they but they are growing

43:59

they are growing consistently. So if you look at

they are growing consistently. So if you look at

44:02

If you look at their last if you look at their last,

If you look at their last if you look at their last,

44:06

I think they went public in two thousand and eighteen. It's grown on average roughly thirty percent a year, their stock their stock price. So it's, like, been a pretty consistent growth. They

I think they went public in two thousand and eighteen. It's grown on average roughly thirty percent a year, their stock their stock price. So it's, like, been a pretty consistent growth. They

44:16

Ferrari, Enzo Ferrari, when he died, he sold a lot of business to Fiat, and then Fiat spun it off. And they built a they they took it public on on its own. And so it's been very consistent since it's gone public. You had a great return. Recently, they signed a deal with Lewis Hamilton, who's, like, the LeBron James of, like, f one racing,

Ferrari, Enzo Ferrari, when he died, he sold a lot of business to Fiat, and then Fiat spun it off. And they built a they they took it public on on its own. And so it's been very consistent since it's gone public. You had a great return. Recently, they signed a deal with Lewis Hamilton, who's, like, the LeBron James of, like, f one racing,

44:34

and their their their price skyrocketed because also their earnings, they're, like, dude, we're killing it. So they make something like, I believe their EBITDA margin is thirty five percent. So

and their their their price skyrocketed because also their earnings, they're, like, dude, we're killing it. So they make something like, I believe their EBITDA margin is thirty five percent. So

44:45

no car company has that much, that big of a margin. I mean, that's, like, ridiculous. What's the You gotta do the smart rich guy thing, which is you say, Ferrari is not a car company. It is a luxury brand. And it's priced incorrectly. They're pricing it like a car company, but it's actually a luxury brand. Right? That's what all the stock pickers do. They're like Tesla, It's not a car company. That was my argument, and then I looked at what the PE ratios of some of the other

no car company has that much, that big of a margin. I mean, that's, like, ridiculous. What's the You gotta do the smart rich guy thing, which is you say, Ferrari is not a car company. It is a luxury brand. And it's priced incorrectly. They're pricing it like a car company, but it's actually a luxury brand. Right? That's what all the stock pickers do. They're like Tesla, It's not a car company. That was my argument, and then I looked at what the PE ratios of some of the other

45:08

luxury brands were. You need to be, like, it's actually

luxury brands were. You need to be, like, it's actually

45:12

a It's it's actually

a It's it's actually

45:14

a AI chip company, I guess, based on this B multiple.

a AI chip company, I guess, based on this B multiple.

45:18

Well, my original point, I was like, this is a luxury company. I looked at what the what some of the numbers were for some of the other luxury companies. I was like, well, this is bad timing. If you if we would've done this, if we would've done this, like, two or three weeks ago, it would've, like, it would've made a little bit more sense. But they just had they just released earnings on Friday until they crushed it. But there is a bunch of downside. So,

Well, my original point, I was like, this is a luxury company. I looked at what the what some of the numbers were for some of the other luxury companies. I was like, well, this is bad timing. If you if we would've done this, if we would've done this, like, two or three weeks ago, it would've, like, it would've made a little bit more sense. But they just had they just released earnings on Friday until they crushed it. But there is a bunch of downside. So,

45:38

PE ratio is insane. It's at an all time high right now. I think What did I say? Fifty five times earning? That's insane. That's a lot. Another question.

PE ratio is insane. It's at an all time high right now. I think What did I say? Fifty five times earning? That's insane. That's a lot. Another question.

45:46

When you were a kid, did you have, like, car posters on your wall, like, or, like, a folder like, a binder that had a car car on it?

When you were a kid, did you have, like, car posters on your wall, like, or, like, a folder like, a binder that had a car car on it?

45:53

I did not. I had a life size poster of the rock.

I did not. I had a life size poster of the rock.

45:56

Okay. Well,

Okay. Well,

45:58

you're didn't do the pro move, improve my point. But many young kids, when we were young, did. You go to that book fair and you buy, like, a Ferrari eraser, or you'd buy, like, a Porsche lamborghini folder or whatever, we cared about that when we were kids, and so it was very aspirational.

you're didn't do the pro move, improve my point. But many young kids, when we were young, did. You go to that book fair and you buy, like, a Ferrari eraser, or you'd buy, like, a Porsche lamborghini folder or whatever, we cared about that when we were kids, and so it was very aspirational.

46:13

Do you know that young people nowadays are barely even getting driver's licenses?

Do you know that young people nowadays are barely even getting driver's licenses?

46:16

Yeah. It's like a loser move. Right? It's like a loser move to have a driver's license. And so oftentimes,

Yeah. It's like a loser move. Right? It's like a loser move to have a driver's license. And so oftentimes,

46:22

I wonder, are young kids even gonna care about this? And then finally,

I wonder, are young kids even gonna care about this? And then finally,

46:27

EU regulations.

EU regulations.

46:28

So Ferrari's,

So Ferrari's,

46:29

based in Europe, the EU is cracking down. So for a lot of cars, they have to be hybrid. I I think the ruling is by, like, two thousand thirty. I think all cars have to be have some type of hybrid component. I don't think it's gonna kill Ferrari because they're already making hybrid and a large percentage of the cars, something like twenty five percent are already hybrids. So I think they're gonna be fine, but that is a risk. Now

based in Europe, the EU is cracking down. So for a lot of cars, they have to be hybrid. I I think the ruling is by, like, two thousand thirty. I think all cars have to be have some type of hybrid component. I don't think it's gonna kill Ferrari because they're already making hybrid and a large percentage of the cars, something like twenty five percent are already hybrids. So I think they're gonna be fine, but that is a risk. Now

46:52

beyond the stock. I just wanna talk about a couple lessons here. Ferrari's an amazing company to aspire to build. At at least if you wanted to build, like, a luxury product, a great company.

beyond the stock. I just wanna talk about a couple lessons here. Ferrari's an amazing company to aspire to build. At at least if you wanted to build, like, a luxury product, a great company.

47:02

The first thing, they're fucking missionaries. They're not mercenaries. A lot of times we talk about we use that word arbitrage.

The first thing, they're fucking missionaries. They're not mercenaries. A lot of times we talk about we use that word arbitrage.

47:08

If Enzo Ferrari heard that word arbitrage, he would take off his leather glove and smack you in the face.

If Enzo Ferrari heard that word arbitrage, he would take off his leather glove and smack you in the face.

47:15

He would ask you about passion. That's what he cares about. And it's paid off. He's built a brand that, you know, is one of the most valuable brands known by billions of people in the world that they aspire to attain, and it's all about him being a missionary. He's truly bought in. The the people who work there are bought in. They built a brand that's aspirational, Now in order to do that, in order to build one of those brands, you have to do something really hard. Something you and I struggle with, something that I think every entrepreneur struggles is you have to say no to so many great opportunities,

He would ask you about passion. That's what he cares about. And it's paid off. He's built a brand that, you know, is one of the most valuable brands known by billions of people in the world that they aspire to attain, and it's all about him being a missionary. He's truly bought in. The the people who work there are bought in. They built a brand that's aspirational, Now in order to do that, in order to build one of those brands, you have to do something really hard. Something you and I struggle with, something that I think every entrepreneur struggles is you have to say no to so many great opportunities,

47:45

and that's really hard. So someone could've said, hey, Enzo,

and that's really hard. So someone could've said, hey, Enzo,

47:49

What about, like, a fifty thousand dollar car that, like, everyone likes? Like, we we would just we'd crush it. Like, the average man would buy this and they all want it. We'd kill it. He said,

What about, like, a fifty thousand dollar car that, like, everyone likes? Like, we we would just we'd crush it. Like, the average man would buy this and they all want it. We'd kill it. He said,

47:58

How do they say no in Italy?

How do they say no in Italy?

48:01

He would say no.

He would say no.

48:03

I don't know how they say it, but I bet I bet it's just no. That's what he would say. And they didn't and they've refused to do that. But that's been very hard for them to do, I'd imagine,

I don't know how they say it, but I bet I bet it's just no. That's what he would say. And they didn't and they've refused to do that. But that's been very hard for them to do, I'd imagine,

48:13

because there's so much opportunity, but that's just a real lesson for a builder. However, The last lesson is if you can say no for that long and you do build a really good luxury brand, it can pay off so much. I had no idea getting into this. I would have thought that Ferrari was worth like ten billion. I didn't realize it was the seventh largest car company in the world, only selling ten, thirteen thousand units. That's insane compared to another company like Honda or Toyota that's selling a million plus units. So anyway, that's my pitch for Ferrari.

because there's so much opportunity, but that's just a real lesson for a builder. However, The last lesson is if you can say no for that long and you do build a really good luxury brand, it can pay off so much. I had no idea getting into this. I would have thought that Ferrari was worth like ten billion. I didn't realize it was the seventh largest car company in the world, only selling ten, thirteen thousand units. That's insane compared to another company like Honda or Toyota that's selling a million plus units. So anyway, that's my pitch for Ferrari.

48:40

Good job. Give me let me just give it up. Let's give it up.

Good job. Give me let me just give it up. Let's give it up.

48:43

That's kind of insane. And by the way, I feel like your point about Italians, not just Enzo, not doing arbitrage. Have you ever met an Italian run-in an arbitrage?

That's kind of insane. And by the way, I feel like your point about Italians, not just Enzo, not doing arbitrage. Have you ever met an Italian run-in an arbitrage?

48:51

Like, is the is there an Italian affiliate marketer on earth? I don't I don't think I've ever seen one. It just seems so beneath them as it should be. They're the they are the luxury brand of ethnicities

Like, is the is there an Italian affiliate marketer on earth? I don't I don't think I've ever seen one. It just seems so beneath them as it should be. They're the they are the luxury brand of ethnicities

49:02

also.

also.

49:03

They're the only one. Yeah. Dude, you want, like, an old lady in the back. It like, I so I grew up in an Italian neighborhood, by the way. I grew up in Saint Louis some reason St. Louis has a large amount of Italians. I was the only non Italian at my grade school. We used to learn Italian in grade school. They used to teach it just. We have to go to mass three days a week. And one of those days was in Italian. But you didn't know the Italian word for no?

They're the only one. Yeah. Dude, you want, like, an old lady in the back. It like, I so I grew up in an Italian neighborhood, by the way. I grew up in Saint Louis some reason St. Louis has a large amount of Italians. I was the only non Italian at my grade school. We used to learn Italian in grade school. They used to teach it just. We have to go to mass three days a week. And one of those days was in Italian. But you didn't know the Italian word for no?

49:23

I wasn't a good student, but I could tell you the I could tell you the our father at Italian. And and the best part was, like, everyone would have their old grandmom, like, in the back of the house, like, rolling up these raviolis. Alright. I wanna hear you speak some Italian. Let's go. Don't put me on the spot, bro. I I You just said, I could tell you, our father, in Italian. Okay. Tell me. No. I don't even wanna say it. I'm so bad, dude. I got a thick I got a thick tongue just like our boy, Bernard. I got a tongue like a slug. It's a thick tongue. I can't roll my r's. It's disgusting.

I wasn't a good student, but I could tell you the I could tell you the our father at Italian. And and the best part was, like, everyone would have their old grandmom, like, in the back of the house, like, rolling up these raviolis. Alright. I wanna hear you speak some Italian. Let's go. Don't put me on the spot, bro. I I You just said, I could tell you, our father, in Italian. Okay. Tell me. No. I don't even wanna say it. I'm so bad, dude. I got a thick I got a thick tongue just like our boy, Bernard. I got a tongue like a slug. It's a thick tongue. I can't roll my r's. It's disgusting.

49:54

The background is just better. My first girlfriend in grade school, her name was Filimina.

The background is just better. My first girlfriend in grade school, her name was Filimina.

49:59

Like, I was all in. I was all in on the Italians. I feel like American Italian people. Like, it's it's Italian people who live in America are just they give it the the the wrong rep, really. It's sort of like It's like TexMax or whatever. It's like two American eyes. Italian Italians.

Like, I was all in. I was all in on the Italians. I feel like American Italian people. Like, it's it's Italian people who live in America are just they give it the the the wrong rep, really. It's sort of like It's like TexMax or whatever. It's like two American eyes. Italian Italians.

50:14

Man. It's just

Man. It's just

50:16

Yeah. I want, like, a really I want a skinny Italian with, like, wearing skinny tight jeans, smoking a sick constantly drinking the espresso with a buzz cut don't want, like, these Gabbagool. Like, you know what I mean?

Yeah. I want, like, a really I want a skinny Italian with, like, wearing skinny tight jeans, smoking a sick constantly drinking the espresso with a buzz cut don't want, like, these Gabbagool. Like, you know what I mean?

50:28

Well, that's not Yeah. I

Well, that's not Yeah. I

50:30

don't want Tody Sipranto. Right? Like, so I like the Italian grandmother who's still, like, you know, smoke cigarettes. And a lot of great, car companies are Italian. You know, Lamborghini is also Italian, for and I believe the story, by the way, do you know the story of Lamborghini

don't want Tody Sipranto. Right? Like, so I like the Italian grandmother who's still, like, you know, smoke cigarettes. And a lot of great, car companies are Italian. You know, Lamborghini is also Italian, for and I believe the story, by the way, do you know the story of Lamborghini

50:43

he, invented the Lamborghini because Ferrari wouldn't sell him a, a car. And he was bench. And he was making tractors. Lambertborghini was a tractor maker.

he, invented the Lamborghini because Ferrari wouldn't sell him a, a car. And he was bench. And he was making tractors. Lambertborghini was a tractor maker.

50:53

And Ferrari wouldn't sell Makar, so he made his own. And so they've been assholes from day one, and that's why it's such a great brand.

And Ferrari wouldn't sell Makar, so he made his own. And so they've been assholes from day one, and that's why it's such a great brand.

51:02

You definitely sold me on how cool Ferrari is as a business.

You definitely sold me on how cool Ferrari is as a business.

51:06

I don't think you sold me on the stock just because it's, like, at an all time high and seventy billion. It's at an all time high. It it also sounds like they're not trying to grow fast. Right? That's, like, part of the shtick is, like, sell part of the shtick. Limited number of these. At insane margins. And so I think that's, you know, maybe maybe one of the downsides.

I don't think you sold me on the stock just because it's, like, at an all time high and seventy billion. It's at an all time high. It it also sounds like they're not trying to grow fast. Right? That's, like, part of the shtick is, like, sell part of the shtick. Limited number of these. At insane margins. And so I think that's, you know, maybe maybe one of the downsides.

51:23

But very cool story and also

But very cool story and also

51:26

more like MFA, more more of, inspiring for how to build a business than, but hold on. Great stock. Don't discount. Don't discount me. Listen. I actually don't know how stock stocks works.

more like MFA, more more of, inspiring for how to build a business than, but hold on. Great stock. Don't discount. Don't discount me. Listen. I actually don't know how stock stocks works.

51:37

You know, I'm a dummy.

You know, I'm a dummy.

51:39

How does the stock work? I don't know. Let's start let's go back. But

How does the stock work? I don't know. Let's start let's go back. But

51:44

if it's growing twenty percent a year, and if we think that it could continue doing that. But you're saying the stock price is growing twenty percent a year, not the No. Revenue revenue revenue revenue is growing twenty percent a year. If revenue is consistent,

if it's growing twenty percent a year, and if we think that it could continue doing that. But you're saying the stock price is growing twenty percent a year, not the No. Revenue revenue revenue revenue is growing twenty percent a year. If revenue is consistent,

51:57

doesn't like that that other shit follow? It does. It does. It does. But you didn't talk about that. So,

doesn't like that that other shit follow? It does. It does. It does. But you didn't talk about that. So,

52:03

you know It was on the slide. Go, based on what you told us. Right?

you know It was on the slide. Go, based on what you told us. Right?

52:07

The business is growing. It's good. Just

The business is growing. It's good. Just

52:10

You started the pitch with

You started the pitch with

52:13

For my stock analysis, not gonna be talking about numbers,

For my stock analysis, not gonna be talking about numbers,

52:16

which

which

52:17

was just a master Isn't that what you said Warren Buffett said?

was just a master Isn't that what you said Warren Buffett said?

52:21

Brants or some bullshit? Yeah. Something like that. Something like

Brants or some bullshit? Yeah. Something like that. Something like

52:25

I do think that,

I do think that,

52:27

you know, that's the best way. Right? Like, if you didn't prepare,

you know, that's the best way. Right? Like, if you didn't prepare,

52:31

for your speech,

for your speech,

52:33

in school. You're just like, you know what? You rip up I'm not gonna read off those prepared notes. I'm just gonna speak from the heart It's like you're just ripping a blank piece of paper up and throwing it away.

in school. You're just like, you know what? You rip up I'm not gonna read off those prepared notes. I'm just gonna speak from the heart It's like you're just ripping a blank piece of paper up and throwing it away.

52:42

Dude, I did prepare it. I per I prepared a long time for this. I just I just really took

Dude, I did prepare it. I per I prepared a long time for this. I just I just really took

52:49

buff daddy's

buff daddy's

52:50

words to heart, and I looked at the brand. Fair enough. Okay.

words to heart, and I looked at the brand. Fair enough. Okay.

52:54

It is kind of an interesting dichotomy here. We did just the two exact opposite things. Right?

It is kind of an interesting dichotomy here. We did just the two exact opposite things. Right?

53:01

Yeah. Exactly. Yeah. The the highest of high fashion and luxury

Yeah. Exactly. Yeah. The the highest of high fashion and luxury

53:05

and, sort of, the, the lowest form of human behavior, getting in your underwear and fighting in front of other people for their entertainment. We give you the full spectrum here on MFM. Right?

and, sort of, the, the lowest form of human behavior, getting in your underwear and fighting in front of other people for their entertainment. We give you the full spectrum here on MFM. Right?

53:15

So let me let me think about it. Okay. So if I had to put my own money if I had to put a hundred thousand dollars, let's say, into either Ferrari or TKO,

So let me let me think about it. Okay. So if I had to put my own money if I had to put a hundred thousand dollars, let's say, into either Ferrari or TKO,

53:24

I think I would go Ferrari. I think I would go Ferrari,

I think I would go Ferrari. I think I would go Ferrari,

53:28

but I think TKO has significantly

but I think TKO has significantly

53:31

higher upside.

higher upside.

53:33

Significantly.

Significantly.

53:33

Right. Right. Okay.

Right. Right. Okay.

53:35

That's fair. So I don't know how you would engage the way If I had to put my money in either,

That's fair. So I don't know how you would engage the way If I had to put my money in either,

53:39

I would put it in neither.

I would put it in neither.

53:41

It's my takeaway from Stockafelousa.

It's my takeaway from Stockafelousa.

53:43

Oh, I emphasis on the if I had to, which I don't have to.

Oh, I emphasis on the if I had to, which I don't have to.

53:48

Which I will not.

Which I will not.

53:49

Yeah. Which one I'm not in that position. And and by the way, I don't know if it showed, but I definitely

Yeah. Which one I'm not in that position. And and by the way, I don't know if it showed, but I definitely

53:55

worked backwards from. I looked at the stock, and I was like, Actually, what happened was I saw that they merged, and I was like, do these companies have no competitors? This is a true monopoly. And in tech, people, you know, from the Peter Teel,

worked backwards from. I looked at the stock, and I was like, Actually, what happened was I saw that they merged, and I was like, do these companies have no competitors? This is a true monopoly. And in tech, people, you know, from the Peter Teel,

54:07

school of thought really value a monopoly. And it's so hard to build a monopoly. Like, there are so few business that are truly a monopoly. We talked about even duckduckgo eating into Google's market share last time. But, you know, Google Facebook, this is one of the few monopolies that exist. And I was like, it's funny that, like, this TKO thing is actually a monopoly, but I I don't know how good of a business it is. I don't know how I don't know how it's gonna grow, but if you're Warren Buffett and you're looking something with a sustainable competitive advantage,

school of thought really value a monopoly. And it's so hard to build a monopoly. Like, there are so few business that are truly a monopoly. We talked about even duckduckgo eating into Google's market share last time. But, you know, Google Facebook, this is one of the few monopolies that exist. And I was like, it's funny that, like, this TKO thing is actually a monopoly, but I I don't know how good of a business it is. I don't know how I don't know how it's gonna grow, but if you're Warren Buffett and you're looking something with a sustainable competitive advantage,

54:35

that would be it. And so that's where I started. And and to be to be show truthful, I didn't even consider any other stocks. I started with that Then I texted Sam, hey, we should do a stock picking episode because I already have one picked. Alright. I'll give you my vote. There.

that would be it. And so that's where I started. And and to be to be show truthful, I didn't even consider any other stocks. I started with that Then I texted Sam, hey, we should do a stock picking episode because I already have one picked. Alright. I'll give you my vote. There.

54:49

We have it. UNanist

We have it. UNanist

54:50

unanimous decision.

unanimous decision.

54:52

You want? I got the vote too. Oh, amazing. Well,

You want? I got the vote too. Oh, amazing. Well,

54:55

guys, I don't know if I'm supposed to do an accepted speech now or if I should just say,

guys, I don't know if I'm supposed to do an accepted speech now or if I should just say,

55:01

I'm not surprised,

I'm not surprised,

55:02

but, that's that's where I stand as far as Taco Blues. I hope you guys liked it. Go to the YouTube comments and vote in the comments

but, that's that's where I stand as far as Taco Blues. I hope you guys liked it. Go to the YouTube comments and vote in the comments

55:09

who won, Sam or Sean, put it in the comments, we will tally them up and name the official winner after we do that. And if you got any joy from this,

who won, Sam or Sean, put it in the comments, we will tally them up and name the official winner after we do that. And if you got any joy from this,

55:18

or if there was a time that you were pulling your hair out and being like, these fucking idiots don't know anything about this stuff. If it whatever the spectrum is, if you got a little emotion, click click subscribe.

or if there was a time that you were pulling your hair out and being like, these fucking idiots don't know anything about this stuff. If it whatever the spectrum is, if you got a little emotion, click click subscribe.

55:28

And,

And,

55:29

we'll owe you one. Alright. That's a pod.

we'll owe you one. Alright. That's a pod.

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