저자: JimCramer · 외국인
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Cramer는 주식 투자에서 금융권이 개인을 기만한다고 주장하며, 전체 자금의 절반은 S&P500 인덱스에 두고 나머지 절반으로 '사랑에 빠질 만한' 성장주 5종을 고르라고 권한다. 일반 주식(은행·CPG·항공·홈디포 등 경기민감/성숙 업종)은 피하고, 장기 secular growth(넷플릭스 사례의 total opportunity value)에 투자하며, 잦은 매매(트레이딩)는 지양하라고 강조한다. 재무제표·컨퍼런스콜 독해 능력이 전제라고 말한다. 개별 종목 단기 가격 예측은 거의 없고, 엔비디아 등 과거 상승 언급은 예측이 아니다.
다듬은 글
Yetis, whip out your wallets and pop open your portfolio because today's interview is financial advice. The lawyers don't want us to say it, but we just did. Careful cuz he has a lot of great today. We're standing up with Jim Kramer, America's biggest stockowning evangelist. The man who simplifies Wall Street like it's Sesame Street and breaks down the S&P 500 like it's the Indie 500.
From Philadelphia to Goldman Sachs, he has interviewed every CEO from Apple to Zillow. Love him or love to challenge him, Jim Kramer pulled off one market win that no one else had. He was the first to make finance fun and make millions of Americans care about companies they can't even pronounce. His dog, it's named Nvidia.
True story. And that was 5 years before you even knew what 2017 bucks. 2017. He is not just the most recognizable face on financial TV. He is a New York Times bestselling author. We read his new book. We called his agent and we said we got to get him on the show. So Jim is going to reveal today that what the finance industry tells you is wrong and why the best wealth adviser may actually be yourself.
Plus, we'll share Jim's playbook to pick five stocks and fall in love with it because that's how you make money in any market. And that's the title of his book. Besties, please welcome the Sultan of stocks, the baron of bullishness, the high priest of price targets, and the regent of rolled up sleeves, although today's wearing a suit.
Tim Kramer is the man from CNBC's Mad Money and the author of How to Make Money in Any Market. Today's interview with Jim is the best one yet. You're going to want to go long on this one. So, I'm going to for Thank you. That was terrific. And I want a copy. Well, I can transcribe it, but that's everything you said I have to show my wife cuz she thinks you have a show.
This this will reveal that I have a show when I do. No, honestly, what I try to do in life is more captured by that poem than almost anyone's been able to capture what I do. So, I really appreciate I'm going to pay you a compliment. One of the reasons why I wanted to come on the show uh at se at 7:00 every night which the end of the show I get a phone call slash pop and she and he would say James that was the best one yet.
No every night your dad every night James that was the best one yet. And now when I do my club meeting, uh, which I have once a month, my daughter texts me and says, "Dad, that was the best one yet because she knows that it made me so happy." You know, by the way, for a while I got tired of it. Yeah.
And then I realized, well, pop's not always going to be with us. And now it's just like it's killing me that I at seven nothing happens. Yeah. But anyway, the best one yet is a great title. So, and all the young people listen and all the older people don't know what they're doing. Thank you so much.
Nick and I launched this startup when we were working at banks and we did it in secret compliance would approve it. We even sent each other emails with white font thinking that that would somehow protect us from oversight. We had our series seven licenses but we we thought that would get through. And after each edition, it was a newsletter back then.
We would reply to the email in the morning and say that was the best one yet. That's how we came up with it. Now 13 14 years later, we have the show and we really feel like every episode is the best one yet. Well, the franchise is unassalable. Thank you. And a lot of it is because the poem what you do in the poem which is that you genuine you had genuine knowledge of what I've tried to do and you paid homage.
But for more importantly it people if your your audience doesn't know me now they do. I mean just quite plain and simple it's a montage. That poem was a montage and it is much appreciated. Thank you Jim. Well our audience does know you. Our audience loves you. We got more DMs related to this interview than any other interview we've ever done.
Questions ranging from just tell Jim I say hi to my dad got me watching Jim 5 years ago. Should I buy elf stock or not? Well, you know what's funny? A lot of people uh a lot of father daughter a lot of father son. Uh and if I can do that given the fact it was hard for me to connect with my father. We had to connect over sports uh because his he was very conservative and so we would just fight.
Uh but we found things to talk about. Stocks are a great neutral thing to talk about to save space, right? Yeah. And you you said ELF is a very complicated story, right? It's a short is heavily shorted. Okay. And and Tangamine comes on and he tells a great story and then the next thing you know China tariff is much is really high sales.
Yeah. And then well he got into he bought the Yes. And that was and but at the same time that that happened you had the shortfall. So, I mean, Wall Street's complicated. Yeah. Well, this is what we love about you, Jim, is because we could have thrown any ticker symbol at you right now, and you could have given us the full synopsis, and we were here for it.
But, well, but the rest of my life is a shambles because that's what I'm good at. I have the edge on the stocks, but could you please help me with the rest? But Jim, you know, as Jack and I are prepared for this interview, you know, it's funny. We It's not as good as you prepared for that analysis of Google versus Open AI.
No. Now, it's funny because I was going to use it today and I wasn't going to credit you till after. Okay? And the reason I was do that because I thought it was so brilliant and when people say it's brilliant, I said, "Well, I got it from you guys." Instead, I said, "I got it from you guys." And then I told it and these guys are like, "Yeah, I mean, really, if I had said that it came from John Malone, hello really." But no, and a lot of that is because of of of what I regard as this reluctance for the new guard to be recognized.
And I think the new guard uh one of the reasons why I wrote the book, you're never supposed to say that, but you're supposed to say, "Oh, the book the book." Um is because I we got to change the notion of who should be buying stocks. Yeah. Because most of what happens in stocks is a Wall Street fashion show.
And if you're not involved in the Wall Street Fashion Show, you really have no idea why you you would be interested in buying uh a company like Spotify. Yetis, quick break for a couple of ads. Well, let's talk about like why buying stocks specifically. You know, what we thought was kind of the the biggest thing that jumped out into the book to us, the biggest theme is that the financial industry is lying to you.
Nick and I have worked in finance. We learned in school that diversification is the only way to go. Diversify, diversify, no matter how hard you work to beat the market. It's a waste of time. It's not going to happen. Even the best hedge funds don't beat the market. So, why try? What do you think about that?
Okay. I am a believer that when I started out, I had to go to the New York Public Library to read really old transcripts and uh get what was called microfich and uh and the transcripts weren't really of the quarter because they didn't have that. We never knew what the prices were during the day and there was no accessibility.
There were no websites. All that's changed and now you even have throw in chat to your perplexity. You you have the same things that the that these hot shots have. Yeah. Uh and yet we're still considered individuals are still considered to be as stupid as they were without any tools. I think people justifiably the great beards were right when it's when you could have looked at something and said, "Look, I like this, but I don't know how to look at Apple." But now there's so many different ways to be able to look at it that why should you be denied it and what I did instead of just just trashing the the whole notion of diversification I say 50% should be S&P now those people say no stock I'm only 50% S&P but what bothers me the most is that it is you know you have kids say and my daughter had an iPod u the you know the initial stuff and she asked me for a pink one after I bought a blue one.
I said, "How could you?" Okay, what happened? Where'd you lose it? Where'd you lose it? She goes, "Dad, they're fashion accessories." And that's how I caught that stock at five. Apple. That's why you bought Apple at $5 because your daughter asked for a second. Yeah. Because I said, "Oh my god, THIS IS A WHAT A FRANCHISE.
WHAT A FRANCHISE." And so that was your edge. That little anecdote for your daughter. We'll talk about your edge in a second, but the thesis we learned in school is that the prices in the stock market are correct. Well, see, but that's I don't want to curse on your show, but that that's that's BS because the stocks are wrong all the time.
Yeah. And I mean, constantly. And I think that I happen to love Warren Buffett like everybody else. But the fact is he never told you to buy his stock. He told you to buy the S&P. You would have crushed the S&P with his stock. No, but he but no one's thinking that's duplicitus except for me because it bothers me tremendously.
And so you say put half of your money in the S&P 500 in the other half do something else. But why not all your money in the S&P 500? Okay. Because I genuinely believe that people can observe and have curiosity and therefore can examine uh and there are many many people who uh have the the power of observation who are denied by Wall Street the notion that they can examine and do the work.
That was understandable when it was impossible like when I was trying. But to say that it nothing's changed and it's just as opaque as it was and it's just as it's that's absurd. It's ridiculous. And is it perfect? Well, I mean in Vivia Wait, is it still two bucks? What a loser. I mean, honest to God, I mean, I'm a living breathing reason to believe that it's not true that that diversification is the only free lunch.
And I used to believe it. I used to come in with that wrap. Mhm. And I realized I was hurting people. Yeah. Jack and I have always said you can just buy the spy. But but the the there's a cool and we should get it 50%. I'm with that 50%. But I listen to you on Google. Okay. Well, what do I do when I listen to you on Google?
I could say those clowns. Don't they know that Google's just one of 500 and we just put all real bad ones with that one and we do better? Huh? You know, let's put some really bad food with some good food. It'll really be tastier that way. No. I mean, it doesn't work like that for any other thing other than this notion.
The soot devotion notion is you don't know what you're doing because you didn't go to the right schools and you're not rich and you never will be. You never will be because frankly the door is closed. That's how I feel. So, you've said that a well-informed amateur can beat the pros. You've promised that.
Absolutely. How much homework does a regular person have to do to beat the pros? I spent a lot of time talking about that in the chapter where where I go into how to read a conference call. But I I teach you how to read a balance sheet board. That was that was another one that not everybody really wanted to have.
But I'm not going to re I can't recommend people to buy stocks individually unless they know how to do balance sheet or income state how to read conference call. How you can't give somebody a car until you teach them how to do. No. Even that Lamborghini I see advertised there. Although my wife would disagree.
Uh, but once you find how to do those things, I believe that if you have the time and inclination, it doesn't take as long as it used to because everything's available at your fingertips and you can actually just wait from quarter to court. And and to our besties listening right out there, you know, Jack and I do this when we're reporting.
So Jack and I go into the transcripts of an earnings call. We will just Google, we will Google um a, you know, elf beauty earnings call. We get the transcript and Jack and I will read it and search for keywords. I mean, the reason we did that whole story on Abberromby's resurgence thanks to this $100 bridesmaid dress is we discovered that in the transcript of the earnings call that wasn't anywhere else.
It was in the transcript. I got GAP tonight. Okay. Did you know that they've got the best rewards program and that people go Christmas time and shop there and they It's free. That's what they have. My daughter, it's free. You have you have points. No, it's free. You won't believe you. Go there. You get all your presents.
It's fantastic. and and and they actually the points culture. Yeah. Dixon understands this, you know, understands the points culture. So the first steps to investing as you described for an amateur or for a pro is that you got to do the research. You got to understand how to get into the balance sheet, how the income statement, you need the transcripts.
But remember, if you can't, you know, you you got to default to the index funds. Okay? But but then so if you're not willing to do the homework, then get the and I really don't want you in the business. But one of one of the coolest things we noticed in the book and this was just like a brilliant observation is you said never buy normal stocks and then you just like eliminated half the market.
Yes, I did. 300 of the S&P 500 are normal stocks. So don't invest in those. Well, because you have to have a buy and a sell and you know somebody will come on TV and say the Fed's going to tighten and you got do I sell that one. So what's a normal stock and and why? I like secular growth and I'm willing to overpay for secular growth because historically all the work I did say secular growth produces superior returns
and secular growth means it does I'm not hostage not hostage the economy Nvidia uh and what what I'm trying to do is make it so people don't trade because I'm really anti-trading I think trading is the scourge of performance because that's that buy high sell low thing that people do and I want you to be certain that you like the thing and maybe you use this use the the company know the stock.
But what I don't want you to do is buy a stock that on this day free port copper's down and you bet the copper goes up and when copper goes up you sell it or that if you think Starbucks is a coffee company which it really isn't and coffee prices go down you say I got to buy Starbucks and they go up so I got to sell Starbucks.
I don't want that and I don't want trading because you're not good enough to trade but you're good enough to invest and the tax consequences are much better. So Jim, in your book you say put half of your money in the S&P 500 and select five stocks that you fall in love with with the other half. But when you pick those five stocks, do not pick one of the 300 normal stocks, the S&P 500.
You just said normal is not secular growth. What are what are some examples of normal stocks? Okay. That you don't want to buy. Okay. And a group that I can do for my charitable trust is the banks. But don't do the banks. You can't because the banks have historically wrecked so many people. It's too hard.
They're very difficult to read. It's not just a balance sheet. They're many different metrics. So, it's it's beyond most people. And when the economy gets bad, they're the first to get thrown away. And I don't want people in those. Now, is that a crime? There's a bank stock that came public today. It's from Missouri.
Okay. That I could never recommend to people. It's probably great. It's probably great. that people feel, "Oh god, I read that there'll be some Ray Dall will come on." He say, "You're about to get hit by a meteor." You personally, okay. It's like, "Oh my god, here it comes." I mean, you can't have that.
So, you ever notice the Doom guys? They're so good at Doom. Yeah. Aren't they? What? What did they read? You know, maybe it was like Po Telltale. And I I hate the fact that people scare people out of stuff. Well, that's one of the things we love is your bullishness. It's it's easy to find positive bullish constru because I like to be constructive because uh let's say I love Tim Cook.
I think he does a great job. If if he were to retire, I'd have to rethink, you know, but I'm constructive on Apple, but I if and I I'm mentioning this because there's these stupid stories about his retirement. I think every company has to have a strategy for retirement, but I don't want to to bless things permanently.
Uh I do think that there are companies that have this great growth that I do I'm very bullish. Well on that side of normal stocks I think the equivalent for us would be we often tell our audience you know the three Fs of fads you have to beware food fashion and fitness you know Jack and I are Planet Fitness.
Can you believe that stock P1 that thing is a rocket ship you're looking at Hampshire you're looking at two guys who own Pelaton stock still. So, all right. Well, that was I mean even when that guy Barry came on, you know, nobody but McAffrey. McCaffrey, he came in and guns blazing and I thought he would have it.
Uh the previous guy I I was unfortunate nice person. That's the way you know that means bad. So, I want to summarize a a big chapter of your book, which is don't buy normal stocks. You said don't buy banks because in bad economic times go down. Don't buy consumer packaged goods because the growth's just not there anymore.
Don't buy a home. Buy anything home. Don't buy Home Depot. No. I mean, Home Depot is a would be the one stock that would It's down really, really low. I don't want to get people out of Home Depot here, but yeah. Don't buy airlines. No. My god, there's no combined pro. I mean, look, do I like United?
That's a trading stock. I'm trying to like a trading stock is the equivalent of a normal stock. I use I don't want people to understand what a trading stock is other than the fact that you that if you buy United and they have a bad seat mileage red car all this stuff the same hotels then you hear Wall Street downgrade and if you follow TV or whatever or you read you'll think oh I should I should sell down no that just happens to be they all they have to have a couple of buys this is the f the Wall Street fools you know it's for it's for professionals like you know they have like eight buys and they have these holds and they have these
sells And that's what they have to do when they meet with the teachers pension fund from Ohio. Okay. But that's not for you. That's not what this is about for you. So So that's that's that's who we're trying to avoid, right? So let's talk about maybe who we want to hang out with stock market. So we're not going to buy the 300 normal stocks.
No, we want one of the 200 remaining stocks. And I want to tell our audience, you know, help you guide us towards them. You want the stocks that will have, as you call it, secular growth, which means growth in a good market or a bad market. But you also want a stock that you can paint an amazing picture about what they could become if everything goes right.
This is a cool concept. There's a term for it. It's called the total opportunity value. It's your term. Can you give us an example of first of all, what is total opportunity value and what are some examples? Well, I mean, okay, if you take a look at a company, let's let's use Netflix. Okay. Netflix started out as you get a discat.
Okay. And I could never envision what their vision was until I got streaming. And when I got streaming, I said, "Wait a second. They do all these incredibly cool long form. They don't do Chicago Fire, Chicago Police, Chicago Hospital. They actually do really thoughtful stuff." Yeah. And I always say, people are more thoughtful than what's fed to them.
And Netflix appealed to thoughtfulness. Well, that's a new concept. So then I go and this is before AI. I go before Love Island too. Yeah. So I go to meet Reed Hastings and I said, "Look, I wanted I wanted to u rewatch a movie about Stalingrad and I called it 3:00 a.m. and I got this customer service." Oh, we happen to have
all quiet on the West. They had Yes, they had that. So I said, "Um, well that's good." So I went to then I interview Reed Hastings. says, "Yes, our customer service is great, but what we really do is we try to figure out what you like." So, in for instance, let's say you like uh Scarface. Well, we have five stock five uh movies for you and we and we do recommending.
I said, "Well, how do you do that?" He goes, "Because we have a lot of people who've seen a lot of movies." Yeah. And then you realize, wait a second, they get AI and everything they push to you is fantastic. and then they're getting sports and then they're getting really great games. Uh a and you say to yourself, "This is a company
that knows what it's doing." So the total opportunity value was that every TV watching American subscribes for what was then 10 bucks a month, right? And to go further, what they say is their enemies the clock. Okay. How many hours you have a day. Yeah. And I like that too. And what it says to me, the opportunity value of this thing is almost limitless.
Yeah. Yeah. And that's a great stop. So the total opportunity value is if everything goes right, if management is there, CEO doesn't have a conflict if what could go wrong. Think about what could go right. Right. Right. Right. And and that's what kind of opened my eyes. I really got But let's take the packaged food.
I can't think of what would go right. I mean, if it's really tasty, the GOP-1's killing it. They're in every country. There's no more coming. Like until we invade Mars, we're like dead with these things. And and you look at the ingredients and they're all up in price and people can't afford to eat and they're like next thing you know you're you're you're buying Kagra with an 8% yield.
What's it 8%. What does that mean to you? It means to me danger danger. Will Robinson. I don't want to throw you under Jack, but Jackie I know it was an emotional purchase but you bought Ford stock. You know Ford's hard. Ford I mean is there a total opportunity warranty issue? It was an emotional investment by me
for many people. I had bought I my daughter has a Bronco. I have a Maverick and I'm thinking, "Yeah, but then like I have like five recalls on the Maverick." But you'd call Ford a normal stock. Best case scenario, it's not something exciting and unlimited. Jim Farley knows it's a normal stock. Now, I will say that Mary Bar uh by the buyback and by just professionally just cranking them out has done a great job and has a higher multiple.
Ford's multiple is very low. Ford has a big warranty issue and you know when you give a warranty for when uh for when workers were being met pre-COVID and now it cost them so much money to honor the warranties. So I think what you'd say is Ford's total opportunity value is to do a little bit better than GM and a little bit better than Toyota.
Tesla on the other hand their total opportunity value is robotics right robo hair self drive being the home robot of every American household being the self-driving ride of every exactly he intends to have a million the humanoids I think he can do more than that I think that he may solve the problem of power uh because in the last conference call he talked about listen we're going to get the battle batteries and we're going to be able to turn you know give energy to the data centers if we want to.
I mean, I obviously enjoy my My wife always says, "By this point, you have to say, "Let me tell you about what a fascist he is, but I really like the autonomous driving." You got to work that in. So, I just worked in the fact you check the fashion box. You're good. Jack and I think about this a lot, too, with, you know, if we apply your total opportunity value to stocks where it just hasn't been realized yet.
For example, Jack. All right. So, Jack Reddit. Oh my god. Okay. Oh, Jesus. Like, no. Stop. Stop. No. This is bad. My dog DOES THAT. STOP. STOP. NO. UNBELIEVABLE. This is bad. That's unbelievably great. And I'll tell you why. And and I love Hoffman. Um, okay. So, my wife has this mascal brand. Hopefully,
she has it. Yeah. Number six. We got to talk about your restaurant. Sixth largest mascal brand in the world. She moved like from up to 25. Absolutely. Okay. So, what is the secret of getting the word out about something? Well, you need to find people who are qualified and targeted. So, you can go put an ad on Amazon, but the people can't buy, they don't buy alcohol on Amazon.
Or you could put something, let's say you decide to put a Wall Street Journal in with the one ad, whatever. Reddit has a mascow section, so you flood the zone and it's so inexpensive. I told I told off I said, "YOU GOT TO START CHARGING MORE." He goes, "That is well, that's a dumb thing to say." I said, "Well, just as a stock."
So, your wife advertises her mascal brand on the Reddit subreddit for me. Okay. And how did I find it? Okay. My daughter, and I will tell you right now, she's cured, so I don't want to be more of them. Well, my daughter had melanoma and she didn't know who to talk to because we don't have melanoma, right?
And melanoma is cancer. It's not squamish basil. Those are not forms of cancer. And what she didn't know who to talk to, but they have a melan melomie page. Wow. all the melanomies. No, they do. So, she talked to all the melanomies. So, she found community there. Yeah. Bing and your wife. Actually, I didn't have to do that.
I mean, your wife. So, you were petting me. You're not You're not disciplining me. We used to also I mean, the other upside you're talking about with Reddit here is around AI, which is, you know, we've said it's not about SEO search, it's about chatio. I told him to charge a fortune to open AI. Yes.
To charge a fortune because you have honest information. So here's my total it's honest stuff. Here's my total opportunity value. Okay, hit me. Hit me on the consumer side like what your wife and daughter do. It will be bastion of realness. Okay. As AI bastion of real as AI I think they should change their name to real.
Well, we pitch on that. Now on the other side, so consumers are going to go there as a bastion of human interaction. On the other side, all the chatbots need to train on actually human stuff. That's where they can charge their B2B size. Absolutely. Now we have Cloudflare to protect protect us from these guys ripping off everybody.
Uh perplexity rips off a lot of companies. Yeah. Yeah. Cloudflare is like the gate that prevents chat. Don't call me Matt. Matthew Matthew Princip. The other one Jack and I chat about. And look, we're biased on this cuz we sold a company and worked there. But with Robin Hood, I mean Jack, you know, I love Robin Hood.
I mean Jack and I think of it like this. Netflix worth twice as much as Disney, right? uh Airbnb worth twice as much as Marriott. You have all these contexts of there being one digital disruptor who becomes at least twice as valuable as the company but they're half the value of Goldman right now. That's where not you could age out at Goldman if you're not careful they age out.
Yeah, but Robin Hood is just a it's a continual funnel and I mean my kids what they what are they going to open an account at Goldman? They're robbing up people. So then they could get their mortgage there. The I guess Jack, the way you're saying it, the total opportunity value. You you you your your retirement,
your retirement account, you got a great retirement, your mortgage, your credit card, and you start offering all these things from one place. That was the only digitally native option in the yet when it went from 14 to 140, all I ever heard about was it was overvalued. But then again, I go to my kids and they that's an annuity.
They're like that's like Cresting Colgate. Like no one's ever going to switch. If you started with crash, you ain't switching to cold gate, right? You're not going So Robin Hood stock has 10xed in the last 18 months. Perfect. Are we too late? If you're on the sidelines, you want to buy come down nicely.
And I think the answer is you buy. You buy. And what about what about in general beyond Robin Jim? What's your thought about when to get in the market? Like a lot of our listeners may own stocks or they may not. But the question is, should I wait until the stock price drops? So what we do is we buy small and we build and pyramid style
because I can't I don't want ever to see I mean I blew Corning. Okay. Corning is uh for trust. It was at 82 and I had gone to see them where they make this glass in Harrods Harrisburg, Kentucky. Yeah. And you know what I did? I bought it and then I I said I'm going to wait 82 to 72. Well you know I should I used too wide a scale and I should have bought some in 76 not a bad basis.
But I tell people build up build up as they go down because if you really got a good stock it does get cheaper. So half your money in the S&P 500 and pick five stocks if you can. Sure. And I like one to be speculative. You can't deny these people because if they want to buy Oakllo, who am I to say like Oaklo wasn't 30.
Okay. And then it turned out that Sam it's a nuclear power thing. They'll never make any money. Um and and then you know but but never any money on the way 30 to 140. I'm not a jerk. I don't want to keep people off. I want them to know the risk. Okay. Uh small form nuclear reactor like you could put Yeah.
Just like a gif. You put them up like a like a dog house. Are you kidding me? I mean it's a nuclear power plan. We could have the president everybody would do it. No one really is crazy about having one in the next store. Okay. And they wish that they never had one. China syndrome right now. Actually, as we're recording this, that company and others have dropped.
We're experiencing a dip moment right now. Yeah. And how do you feel about dips? The big question out there being should people be buying the dips or is that it's a faux concept. Um if you have because remember I'm talking about stock because S&P I want every month because you never know which month is going to be good or bad.
Screw that. You got to be just like Peter Peter Lynch and you got to be just like Ken Lango and Peter Lynch was you'll never be able to time it because you'll be out on one of the seven great days of the year. invest your excess savings penalty to consistently buy the same. The last day of the month is when I contribute and I pull forward if there's a 10% correction I pull forward that contribution.
So I am I I speak where you look I'm very pro- index fund. It's just that I believe if you're watching the show it's because you like individual stocks. So can I at least get you to do it right? I took a horse handicapping course and it was for people who said, "Listen, people are gonna go to the racetrack and they're just going to lose money.
At least let me teach you how to use the racing form." Now, a quick word from our sponsor. Speaking of individual stocks, too, well, I mean, I believe we're sitting with the man who named his puppy in No, it was a it was a it was a deranged pitbull. No, we you know it was one of these muts and it to you ripped somebody's face off once because the the person the person tried to get into our house but it happened to be the landlord.
We were the renters in 2009. It's the first time you ever suggested people should buy Nvidia 2017. You you were so I doubled down because convicted Jensen Jensen $4. Tell us how you got the edge to decide to invest in. What are the signals that Nvidia sent you that we could apply to others? Okay. So, here you here you this is one where uh it's not fair.
You'd have to listen to the show. Okay. Okay. And I'll say this is why because Jensen was Jensen W CEO was beside himself that people weren't listening. So, he knows that I'm a sucker for him and for his company and for gaming. And I knew that his chips were being used in all the great car companies.
I had the edge to know that that that Audi's built on Nvidia. The edge is your information advantage. You were interviewing the Audi executive who mentioned Nvidia chips had were used to be for video games and now we're out. Yeah. But I kept saying, "Look, you keep saying the great technology. Great technology.
Great." Who? And he goes, "Invi that's when Audi CEO told you that his cars had Nvidia chips." Yes. That's when you said that's my edge. I think it's the best company in the world. But but essentially, but then I share it. So then I go out I go out there, okay? And he says to me, okay, and it's this big screen like this.
He goes, I want you to paint a picture. I said, I'm not I'm not an artist. He goes, no, no, just speak to it. I said, speak to who? So speak to it and have it make a painting. I said, well, you're at Nvidia's headquart. Yeah. He goes, have it make a painting. I said, well, I don't get that. He goes, well, think of an artist.
And I said, I like Seesan. He goes, okay, challenge the machine. M I said, "Okay, I'll take a sea c-scape." You ordered it at like McDonald's. Remember, he's like a fre, you know, he's a still life guy and Nvidia chips made that possible. Instant. I said, "But it's not possible." He goes, "Well, you can try it." You do any picture and everything.
So then he goes, "Okay, what do you like to do? Do you like plays?" I said, "I love Shakespeare, Henry IV, part two." He goes, "Okay, I'll tell you what. I'll put you in the Third Row Center Globe Theater. We'll watch it." And he does it little gym in the third row. And then and and and then he says, "Listen," he takes me over and there's this car going in a in a video and he said, "This is two million times, but I can't figure out black ice.
OH MY GOD, THIS GUY." SO, AND then we do the Stormtroopers where you couldn't tell which ones were real from Star Wars and which ones weren't. And I'm like, "This guy is crazy." And then he takes me to the piesta resistance. little robot dogs trying to pick up Jell-O. And he said, "You know what you do when they get it?
You got to give them a reward." Wait, these are robot dogs you gave a treat to. Yeah. Give them a treat, too. And I said, "All right. Okay, stop. Stop. I am going to tell everyone about this. Nothing. Nobody cares." Okay. Nobody cares. It goes from 3 to two. Oh, what year is this, by the way? Uh, that's 20.
That was 2016, I think. So then I go out again and uh he says, "Okay, I want to do something really cool." Yeah. So I walk in and there's me. It's just me. He's made me tookens. It's me. And he then it says, "Hey, I'm Kramer. Now I'm from Philadelphia. There's like I don't know if you guys watch Task or Mayor, you know, mayor of uh
mayor of Easttown." Yeah. Okay. Well, anyway, here's the thing. That's a terrible Philadelphia accent. Now I've lost it, but Jensen spent hours upon hours getting the Philadelphia accent right like water. Like water owl. Yeah. Not like blue. Yes. Absolutely. And he he he nailed me and then he showed me
he made an AI clone of you that even had it was better than me. It was like more me than me. Okay. And then we went around and he showed me a, you know, some of the latest stuff including like a robot that brought me coffee and brought me the right coffee for heaven's sake, you know, not the bad coffee.
And and he said, "What what?" And then he I he said, "What can I got a a box that can speak 27 languages?" So you can imagine Wendy's they have a lot of different people come and and so I said uh but he said it means nothing to people. How do I get people to know about my stock? And he's a lover, not a fighter.
I said I said, "I got it. I got it. I got it. I got it. I got it. I got it. I got it. I'm going on my show tonight." Yeah. It's So I said, "You got to tune in. Tune in. Tune in next week. Tune in next week." The dog. So I start the show by saying, "Okay." And then I gave you all the things you just said.
And I said, "But no one's listening. No one's listening." But I have a dog. And the dog's name is Everest. And uh he loves the name Everest. But you know what he really answers to? He answers to Nvidia. And And so he I've renamed him Nvidia. So, okay. So, fast forward. I did this thing for millionaires that millionaires that we created.
Yeah. Just for Jensen. Jensen wanted to meet all the millionaires. Can you clarify that? So, you have created millionaires. Oh, no. We did a room of millionaires from the club. People who made a million dollars because of your recommendation. Yes. And a policeman stops me after I did this Barnes & Noble signing and he goes, "Look, uh, pulls me over and I'm still in this.
I'm still in the camp." Say, "Okay, what did I do? What did I you know, but and like I'm now like 140 and I'm still asking and he says, "Um, I'm a millionaire cuz of your dog." I said, "What?" He goes, "Well, you don't named your dog Invidia." And I figure only a guy who really believes would name his dog Invid Nvidia.
So, I'm not really quite sure about what Nvidia does. I said, "Don't tell me that. That's not so good." But I said, "Why are you still working?" He goes, "Because it's my calling." But but he had made a million dollars and I was so thrilled for him. I'm really thr guy stopped me in front people stop me all the time and they at my wife's I sign these bottles for my wife this uh furo and uh I'm full service branding here like you know I'm NASCAR I'm NASCAR so uh everybody brings I always tell people bring me your statement
and they show me the statement and I just told my wife you should sign those invidia broker it's so much fun look it's fun to help people make money it's a wonderful story the next time you got a good stock pick Jim I think this ups the ante though you got to get a too. I think that's the next thing.
I thought about that. I thought about that. I think it's a great idea, but I just afraid the only two stocks that I've said own it, own it, don't trade it uh in my career of 19 of 20 years now and made money are Apple and Nvidia. So, like people say, "Oh, it doesn't make any money." I said, "Look, okay, you're right.
I I have Apple and Nvidia for 20 years. I'm sorry." You know, the old days, look, this look, people take shots at me and look, I don't Well, I'm not going to say I don't mind it because I'm a human. Yeah. But I do feel that I've done a good job. How about that? I did my best and that's all you can do.
And have I had I sold the Google to move into Broadcom. I sold Google because I listened to the Justice Department and I said they're going to smash it. I'm like I shouldn't have listened to justice. And then the judge reverses himself. Who would have THOUGHT HE REVERSED HIMSELF? So I listened to the government.
I got it wrong. To your point of holding it happens. So Jim, I challenge you for a sec. Sure. Do it. So clearly people can get an edge by listening to your show. Hopefully by listening to our show too, but I think the status quo finance industry says you can't get an edge. That's why you should buy a diversified index fund.
How can people get an edge? They have to have their eyes open. They have to have their eyes open and then marry it with looking at the website, looking at the balance sheet of which I tell you how to do because I think if you have your eyes open, you'll find something you believe in. And if the financials are okay, then you'll end up making money.
I really believe that. And if you go back over a hundred years, you'll see that it's just been historical that that'll work, that that will work. Tobacco, unfortunately, is the best the greatest performing of all time, Philip Morris. But you can see that that's evident. People get hooked on a product.
What a great I didn't, but what a great product. You get hooked on it and it's legal and I'm just going to buy that stock and it was turned out to be the greatest phone of all time. And I don't think that's hard to observe. I I just think that the the winners I mean you mentioned Airbnb now I think that they're not would manage as well as I'd like but that is a great concept.
We we mentioned Reddit. Well, I found Reddit from my daughter but then I got to Wall Street Bets and I said, "Well, this is kind of cool. These are very involved people and I like that." And each one of the ones that you mentioned I can make the case for because they have secular growth and they're run by smart people and I I just think, you know, this is what people do.
They observe and yet you want to tell them, "No, you have to be in the S&P. I'm your overlord. I am telling you, you're in the S&P or not." What is it? It's Soviet Russia. It's Soviet. IT'S A SOVIET UNION. I I think there's there's something so satisfying about that, too. It's like your daughter's iPod moment when she asked for the second iPod color.
You're like, "Wait a second. Apple's an accelerate." That was that was your edge, but you didn't have to be an expert for that. Honestly, one of my dude Alex bought me Abbercom and Fitch jeans like 5 years ago. That was my edge. Yeah, that was your edge. Wait a second. Millennial coming back to Abber.
Wait a second. Cuz then you go into Hollister. Okay. I did this at Shortell's Mall. And I said, "Oh my god, I got I am I'm killing this place with my age." Uh, and they had all these things that I, you know, my daughter was a suicide counselor at the time. She goes, "Dad, that's a really bad place." Cuz everybody the pictures are all people looking good.
But people, there are a lot of people who aspire to look good. And I'm not against anybody who aspires to look good, but it's very clear that they owned that market. They owned it. But I am a TJX guy, and that's a much better deal. Yeah, TJ Maxx. You bet. Oh my god. TJ Maxx homegoods. My daughter's got a potato chip at HomeGoods called Folds.
No, I'm not kidding. I mean, you should launch a CPG brand at this point. They're crunchy and you can have them and like it works. Well, she's a baker and she baked and baked and baked and I always like, you know, she went to Walmart to get the flour cuz she needs the cheapest flour and that's Walmart.
But she always had this thing in mind and these chips and they're and she went to the fancy food show and she was really bummed out cuz nobody bought it. But then HomeGoods called her and they negotiated really hard. You know, she loses like 13 cents per bag. No, just kidding. We actually we we did kind you know that is a a funny area.
Jim, like just to take a little personal side tour for a sec. You uh you launched a popcorn company, Lesser Evil. Oh my god. But I got crushed. Okay. That was with me and you have a restaurant. That was with me and Gene Hack. That was you and Gene Hack. You also got a restaurant. Yeah, I had one in not allowed to own restaurants if you sell liquor in this country.
It's 1934. It It's called the Tide House rules after prohibition. Seagrums was wiping out all the other bars because they didn't know cost. And so we had to sell Bar Samuel, which I loved. Well, my wife said, "Well, that's cuz you sat at the high top, which is this, and you had mecow, and she had to go work her ass off serving tables.
What a great deal I have, right?" Well, your wife has the Mezcow brand. So, what have you learned? No one talks about entrepreneurial gym. I love companies. You're an entrepreneur. I started an inn. That was damn cool because hotels tonight. I got it filled. I used to go at the desk. I had all the keys.
And then like this guy from Murk, he comes in. He said on the fourth floor and he's got his bag and he says, "You didn't take it. And so I take his arm back. I take it all the way up and I GOT MY HAND OUT LIKE THIS AND HE LIKE DOESN'T even slip me. I got to get out of this. So I do the technology. I find that there's this thing surge pricing hotels tonight.
We're close enough to the Newark airport that every hour the price goes down. We are filled every single night. I crushed I crushed it. Anything you've learned as an entrepreneur that applies to investing? Well, I I don't want any competition. And if there's competition, I'm in big trouble. That's why we started with Mezcow because there's really not a lot of brands.
But the tequila brands are interesting now because I don't know if you saw the Don Julio numbers because of this adulteration. No, the numbers are down like 40%. So it's kind of a give an opportunity for someone who doesn't who uses adulteration. Yes. What's that? Well, they put caramel in it. You know,
you can't put anything in it. You can't like be you got to be pure. Agave spirits are still growing. It's the only one. The Browns are terrible. How about all those dumb people who bought all the barrels and they like are stuck with I know for like 20 years. I mean, look, how many Manhattan can you have, right?
Jim, I'm afraid I own a normal stock. I don't want to Oh, no. Don't do that. I thought it was a secular stock. Oh, okay. It's Give me a second to describe it. It's Disney. So, Disney has theme parks. In good times, people go to theme parks. In bad times, they go to the movie theater where Disney dominates.
in all times they subscribe to Disney Plus, Hulu or ESPN. Why has Disney been such a bad investment the last? Okay, couple reason. I just went over this with you Johnson's the CFO because I just sold it for my charitable trust after owning it for three years. Uh it has linear TV so people hate line, you know, Wall Street hates linear TV.
It pays a fortune for those sports rights because those companies all realize that the real value is with live sports. I mean ESPN, they pay a fortune. uh it needed the bundle that things are going down. Go to Disney, it costs thousands of dollars. So, we think if the economy turns down, we think that they're not going to be sold out.
Uh and frankly, if you're on that last conference call, they believe that that was a good quarter. The stock was at 113 and it w the stock went lost n lost $7 like that. Yeah. They're they're thinking that they're doing well. Now, I happen to like the people who run it very much, but having watched the stock of the company that I work for, Comcast, I don't do that anymore.
Now, it's gonna be versed. Uh, I know that TV, it feels very much like radio. Very much like radio. So, I painted a picture. I painted a picture in my head that Disney was a secular growth. No, I know. Look, you think, okay, so did I. So, you get it wrong. I got it wrong. That's look the flaw is that you can get it wrong.
But if you see it change up and you realize you hear the things it's $20,000 for a week and all that stuff and then you realize you know what they are spending a fortune to make very little and then the critical thing was when you saw Netflix and the stock didn't quit. You realize, wait a second, in pure play where they have t where they have product that's made all of Well, you're watching some movie from Uruguay that obviously costs like Did you guys see Ktoake?
No. Not yet. Is this movie made in Mexico? It's one of the ab what is first of all, it's 1 hour and 37 minutes, which is all people will watch if they're 29. Yeah. Yeah. Right. Do you know that my my daughters are 31 and 35? And the first thing they ask is, "Dad, how long is it? What do you mean?" Well, I we I don't watch anything longer than an hour and 47 minutes.
They said, "Well, it's two hours." No, like we watched the movie Warfare, which was really a ma great movie. That was actually the length of time of the battle and it was an hour and 29 minutes. It's like boom, let's watch Warfare. They the people watch different things, but Netflix is wise to even Hey, how about the idea that Netflix knew that we'd all get get okay with titles?
I mean, with subtitles, I mean, subtitles that was the kiss of death. It was like the the umbrellas of Shoreborg and it's like I don't want to watch that. But now it's like put the titles on. Yeah, put the titles on. Yeah, they knew. They knew. Let's have great inexpensive content. And that was the secret.
So I made a mistake by buying it. No, you didn't make a mistake. They made the mistake by not keeping up with what you guys I want to give some credit. You hedged that cuz you also own Netflix. True. Yeah. Well, you know what? I actually You love this. I got Disney for my son in his 529. I'm sorry. To show him.
Hang on a second. It's a good lesson that I think is going to dude. So's hitting him. I mean, what do you Let me hit my Let me show you. I hit my son. I want to show him that Toy Story, which he loves so much. He owns a piece of Yeah. Okay. Which the Toy Story a piece of Disney stock. This is This is the portion of our portfolios that are irrational.
Yeah. They're emotional. There's the part to get our sons excited. Like my son owning Jack, you know, Jack and I gift each other's kids stock every year. He gave mine Nike. My son. Okay. So, I think Nike right now is one of the great buys. Max, are you listening? I went I went to a I didn't know about Elliot Hill.
Okay. I knew that the last guy was really nice. Yeah. Nice. That's an audio product, but it's a wink here. Wink. But um see LA comes in. He's brought back. He's 30-year veteran. Okay. And I said, "What I need to see, can we please have a sports guy at the helm, a guy who understands heart and soul, Nike, a guy who knows Pre Fontaine, right?
You know, stop pre." So, I invite him to a game. I said, "Why don't we see the why don't we see the Cowboys Eagles? Want to go?" Yeah. And he goes, "Really?" I said, "Yeah, let's go." Well, damn it, if he doesn't fly in to go see it. And I sit there and he goes, "And I like to sit and watch the game." And he goes, "Do you mind if I sit and watch the game?
I haven't been able to watch a game since I got this job." And I said, I said, "Where'd you go to school?" He said, "What? TCU. I watched TCU and I watched the Cowboys." Well, wouldn't you know it, I'm with this guy and I'm saying he's going to do it. He's a sports guy. It's going to take a while. That's from him and it will.
But he and I think the Dayton in China is real. But I think Nike is the right stock right here, right now. $6310. You know what I like about your strategy? You you have these little anecdotes and and that's the beginning of your edge. But that's what you do, right? But you see, that's anecdotes. And what happens is people then say, "This is what I want in the book.
Oh, that's interesting to me. Maybe Google is better than opening up the seed of an idea." Yes. Because you want people This is a learning show. Okay. And you do it in a way that is um I don't mean this to be incorrect, but bite-size. See, because that's the length. Remember, kake isn't it's a short movie.
Anything longer, you'll not watch it. This is a generation where it's either two minutes or an hour. Okay, it's two minutes or an hour. And I think that the two minutes you have to grab people and you do you'll do five two minutes in a show where I can like write them down and I didn't and that's what you when I started it was 47 minutes was acceptable.
Now linear I accept I mean I'm wondering I do it I do a 10-minute everything you need to know broadcast. Yeah. uh streaming for club members and I know it's more watched than the show because it's 10 minutes and I have a lightning round at the end and does it depress me? No, it makes me change my game.
You have to change your game. You know, it's it's interesting to hear you talk about this because Jim, we we've admired you for so long partially because you know, Jack and I have a daily product and we know how much goes into producing one daily show. I mean, we are we just pour everything into one daily show.
You got two daily shows cuz you're appearing here and you're appearing there. I want people to remember that when they were at Brown in Middbury, how many what was the length of a paper that you had to do? Five pages double space. And how long did it take? Were you allowed to have? Well, they told me it was due in two weeks.
Okay. I have to write 7,000 words a day. Yeah. 7,000 words. And I've written I've done the first 800 and I did it about how maybe you have to start thinking about buying the stock of an acquirer now that anyone's allowed to buy. Abbott's buying uh exact science and and the other day Kimberly, right?
They're buying Kenview, which I think the the TA problem blows over and I think the Tylener problems over. We have to start thinking about Kimberly at 5%. Because it's down big off that if they walk away or if there's an over bid for Ken View, you're in great shape. These are the things I'm looking for.
The anomalies of of because now we have all these deals because there's no they got rid of the antitrust division, right? I mean, the protrust. effective Jim you're writing this analysis 700 words a day to prepare 7,000 7,000 words a day to prepare you are just to share this with our audience you have are operating at a at a ultimate capacity you there's a ad behind you and that's going to produce maybe 35 cents on Campbell and if they put some other brands together it's 30 it's $30 and get a 5% y oh now it's the four okay I'm sorry that was but I saw it You're looking for clues everywhere.
But I'm I'm just curious almost from the craft side from like two other guys who produce a daily craft. Did you say craft? Yeah, cuz Hackman used that word. This the first time I heard it. He said you have a great craft. You produce two shows, a newsletter, an investing club. You run a bunch of business.
So what's the key to organizing a professional life like this? I mean to doing what you love to not sleep. And do you like literally like how much sleep? I mean I went to bed last night at 12. I had to read the Nvidia conference call twice because it was really a torto force and I knew that the the bears would try to force it down.
I don't give a damn. Nvidia is great. Uh but I got and then I I realized I got at 4:00 the dogs got on my head so I said I'll just get up again and I I realized I had to read TJX and I had to read uh I wanted to be ready for Walmart by reading Target and I had to read Lowe's and and that's what I do.
I read and then I process and um I don't do Chat GPT Lowe's because Chachp is dumb as wood a lot. Yeah. I mean, Chad GBT steered me wrong. Yeah. About the other It's Oh my god, it can get things wrong so badly. Yeah. And And so what what I try to do is do my own synthesis. And to do that, if you do a lot of them, then you're in good shape.
It's I'm not Ted Williams, but what happens is I'm in shape. And I'm in shape. And that's the craft. That's the And what time do you wake up every morning? Um I get between quarter 4 and 4. Breakfast except for Tuesdays and Fridays. Well, I get up at 3 cuz my trainer comes and breakfast. No breakfast.
Uh, just call carb. A half a bagel. Gotcha. You have to have a carb, Jim. As we start to kind of wind down, you know. Oh, what? Oh, you guys are winding up. Who is it? Who's behind Oh, the big shot. Oh, you got the big shot. Okay, good. Was that the the chief strategist of of Goldman behind me? Okay, let's hear what he has to say.
Well, I think I am worried about private credit. I think I think that I'm very worried about Blue Al who you know what the other cool thing about your book is we got to learn about you a little bit more. I mean you're from a family in Philadelphia. Yeah. You end up working at Goldman Sachs. Yeah. That was a trip.
Your first job after school. Jack and I were shocked by this was covering murders. Well Florida State Florida&M but I was on the campus of Florida of Florida State. That's where Ted Bundy broke into Ky Mega and Murders weren't beat that happened to him at Big Daddy's uh that week and you knew cuz he was always hot as hell there and yet he was wearing a fisherman's sweater and
uh you say, "Wow, that guy's strange." Not that you know, obviously he was cool looking. He was a murder a horrible person, but that I then uh realized I had a talent for that. So, I wrote the LA Herald Examiner and I said, "Look, I I want to be big time." I was I was making the same thing in LA as I was making Tallahassee, but they said I said, "Listen, you want all you have these big shots you're hiring.
None of them are willing to get their hands dirty. I'm willing to get my hands dirty." So, uh they put me on the crime beat and I was on the front page every day, which is a chick magnet. You allowed to say that. Yeah, we can say that. You are. That's We didn't ask you career advice. That happened, right?
The president said you can say chickbag. He's changed the rules, man. God. Well, by the way, that's not you're there. But yes, and then I went out there and I covered everybody died violently for a year of my life. I lived in my car because I got broken into and I used to have to park at the airport because my horrible editor said, "Hey, maybe a plane crashes.
You'll be first on the scene." It's really hard to sleep in an airport. So, so then how do you end up how do you end up at Goldman Sachs after being a crime beat reporter? Well, I I got this I went back I was an American lawyer. I helped I got there soon after it started and I was American lawyer. Yeah, it's a trade publication and I was on the beat of M&A and I said, "Well, wait a second.
I see every single oil company is being taken over. let's just go buy a field bet on autos and I started making some money and I had this great home run of uh that go uh golf Chevron buying golf and I had this great antitrust professor when I got to law school and I he said he he said you spend every day you're reading the papers I'm trying to teach and I said look I'll tell you what one day I'll come to you and I'll explain to you why I'm in your class so this year's winding down I said professor Rita I I got to know something is is is the justice department going to at uh Standard Oil by Golf Chevron.
Uh by Golf and he goes, "Oh yeah, it's a layup." I said,"I said, "I'm going to put everything I have on this." He goes, "Go ahead. Put everything I had." And it paid for law school. Wow. You get through Harvard Law School at that. Yeah. Law school is a joke. It was. I mean, it was like, you know, again, because of Trump, I can say what I did most of the time.
Yeah. But do you I mean, so do you use anything from law school today in this? Uh yeah, I mean there's things that make it rig there. You did really uh learn rigor and I had corporate finance and I had corporate tax. Those were really great. But I also took law in the banana. Most of my classes were law in the banana.
Is that a building on campus? No, it means stupid classes. Well, as a Philadelphia guy, the other thing we were curious about was, you know, you've talked about your your great investments on this show. You've also spent a lot of time with the Philadelphia Eagles. Yes. Well, first of all, you think you've gotten a return on that investment?
Well, no, but I started as a bet as a ice cream vendor at the vet. The vet and said, "Hey, ice cream here. I got vanilla and chocolate." And that's where I learned to call people skip and chief and stuff cuz that's what they called me. And what I realized very quickly is a 700 level. If you paid off all the other vendors not to sell there, you could have the whole franchise.
So, I paid everybody not to come up to 700 level. And I was just waiting in line. But there was this picture by it was like a real estate play was your first entrepreneur move. There was this pitcher Steve Carlton and he could do he could he could actually finish a game in the in the time it takes to watch come one hour and 27 minutes and if you were long ice cream in the seventh inning you're dead man.
You're dead man. Never sell it. It's like cuz you have to buy the ice cream. Oh it's a perishable too. Yeah the perishable. Whoa, man. Let's go there. Huh? Let's go perishable. Costco's a good person when that stock big. Wow. So, we respect a lot of what you've done. This book was amazing. We really do recommend it.
We really loved reading. Thank you. You actually read it, which is a big Reddit, which is which is which is absolutely put you head and shoulders above everybody else. No, Jim, I wanted to ask you, you know, some some on a second. Let me just clean up. Some on Reddit, you know, consider you a symbol of traditional finance.
Oh, I love that. Like, yeah, that's me. Yeah, I'm a rebel without a cause. I'm one of traditional finest. Why? Because I wear a brillion. Yeah, I wear a bron because you can sleep. You know, it's great for sleeping. What do you wish people who don't like you knew about you? What would you say to them about your investing style?
Um, I think that they should there was when this book started, book tour started the first guy interviewed me. He said, "Why are you trading people to death?" I said, "Well, I don't believe in trading." He said, "Well, why are you telling people to buy this, buy that, buy this, buy that?" And I said, "Well, I don't do that." I I think what people should realize is that I'm for buying and holding, provided that you do homework.
And I don't think people really think of me as that, but that's what my book's about. That's me. I want you to buy and hold provides as long as I tell you what would it mean if the for the fundamentals to go bad. And that that's who I am. But I would say more important, I think what I want people to to think of me as a decent dad.
Because I think that that's what we want to be. We want to be decent dads. Decent dad my you know where by the way and if you read confessions of a street act I wasn't initially. I mean I had a big hit in Alcoa when CeCe was coming out and that was a mistake. I shouldn't have been trading Alcoa that day but it was you know that was me.
I got a call Jim there's a big block of alcohol. I think it's right and I take it. I was like oh okay your daughter was born and like you know my wife was saying the baby let me finish this trade. That's not great. or when I told an employee uh because a guy said, "Listen, I gotta go. I gotta I I gotta go see my kids play." And I said, "Intel reports once once and you got to the kid's going to be in a million plays." And these were things that told you no, you're not a good dad.
So, I had to change. And the fact that I was able to is was I am most grateful that I was able to for myself that I was able to pull out so that my kids started respecting me and you know so I'm that's the journey that I'm proud of. That is something to be proud of and and Jim what's what would you say is we like to ask all of our guests and Jack and I like to do this with every single story too is whip up the takeaways.
What is your four what is your core final takeaway on investing for our audience of yetis and besties? If you're not interested in it, don't do it. Cool. People People will That's why index funds were created. And I want people to invest, but I don't want them to do it if they don't like it or interested in what.
And that means the vast majority of people are not don't want to know don't want to do what I say. But if you do want to do what I say, I I will teach you with this book. And that's what the book's about. It's about my dad buying national video uh off a tip and a company that made vacuum tubes for TV and solid state came out and he lost everything.
It's about my mom who said that I got to buy a $20 stock because it's cheaper than a $50 stock. And that's what the book is about. Love that. Jim, we also should say that your book changed our thinking on certain things. Our default response to so many people would be like buy the spy and like now we we have a more nuanced perspective
maybe half is the FPY but the other half is what you're interested in is what you're interested in like we have an edge on and what you're willing to do quarterly homework on three exactly and that has hypers scale opportunity. Your show has information about stocks. I regard it as the best way to get started is your show because your show's compelling and interesting.
So a person who thinks they're not interested in stocks can listen and say, you know what, that is that sounds interesting to me. And then they can go do the work. Or they say, hey, it was interesting to me. And no harm, no fail. Yeah. But we need to have people like you and we have you who get people interested in business in a different way.
Like you asked me about the entrepreneurs. Yeah. And I'm always happy to talk about that, but that's that no one doesn't make any money for people. Yeah. I'm always I mean, yes, you can buy into it. I mean, I realized very quickly you don't need an account, just use it. You can use QuickBooks, you know, those kind of things.
And therefore, that's a great reason to own into it or Echolab even though they didn't treat me well. They they had all the the cleaning supplies and you know you you know Cisco it turns out to be very regular company but I like to observe at all times. Yeah. And most people are not observant but they might listen to your show and say oh okay I
Yes. And and they yes means they can go do and look at a conference call and say you know what maybe I can do this. I don't want to hear it's not that hard because it is hard. Yeah. But maybe I can do this because I agree with them. I like what they said and let me own a stock. Let me own a stock. And I I cater to people who will say, "Let me own a stock or I think I can do this because the returns for the ones that were so obvious, Dad, they won't let me use Google as for my homework.
Just a second. Buy 50,000 Google, right? I mean, hey, Dad, they're taking away my Instagram. I don't know if I can handle that. Wait a second. If it's getting banned, that's a good brand. I mean, that's what it's like. They tell you these things and you're listening. It's like, Dad, we never watch ABC.
We watch Netflix. Oh, just a second. Buy me $5,000. Cuz that's what it is. It's like you observe. Don't just observe. But then act. Act. Right. Sometimes it's bad. Like I uh my daughter when they changed the jack on Apple, remember they keep chang I talked to I talked to Tim Cook. I said, "Listen, you got to stop changing the job." What an informed viewpoint you have.
I said, "No, my daughter said it." I said, "Oh, even better." I mean, it's like, "Oh, God is you know, cuz you realize, geez, once you said it, it's going to do so getting on the phone, too. He's going, "Guys, kids attack again." But, um, one of the great, you know, Tim watches a he watches the shows that I watch.
So, it's it's in, you know, he showed me the morning show when it first came out and he he was big Narcos guy. I was big narcos guy. But has he watched? No. No. And I watched, you know, I got that one the Netflix conference call. Remember you got You're kidding. They mention THE CALL. NO, JACK. I always say if you want the gold, don't go digging in the desert.
You look in the conference called transcript. Okay. Treasures here. Madre is your book there and the great movie treasures here. Madre treasures here. Treasures here. That's Yes, that's federalist. Well, I'm starting to get a sense. We don't know. We know they've bought they cribed it in Warner Brothers is about to be acquired.
I'm starting to feel like Jim's next entrepreneurial venture is a movie studio. Is it is it is it Netflix? Is it Comcast? Well, Comcast doesn't have Comcast. Okay, so this is a good example of the book. Comcast has a five multiple. Is that cheap? Well, then you got to say, well, hold it. Maybe the market's making a judgment that it's not cheap.
Market's saying it's a wasting asset because it's multiple is so low. the the once Peter Lynch was me listening to Peter Lynch and we were talking about Bethlehem Steel that's at my trading desk and he said that sells at two times earnings that's the kiss of death. Oh just let me just bring on some context quickly.
This is this is the power of M. This is your the Mword. The power of M the multiple this is a key tactic you use for when to buy a stock right because I really want people to understand why one stock is cheaper than another. and Bethleam Steel was selling at two times earnings which Peter Lynch said meant that the earnings would be nil and the company went bankrupt two years later.
It's really good call. It's exciting. Mhm. To see it's exciting like we could do this. I mean look, you watch ESPN, right? And they're talking about the lineup and they're talking about who's, you know, hurt and whether the line changes because Lane Johnson's out. I like that too. But we're doing that and we're not gambling.
Uh what we're doing is saying look there are these companies do the homework. Now I have no problem with a for you know with a anytime touchdown uh Dallas got it. I have no problem doing that for five bucks. But I do think that when you're investing you want to do the index fund and then you want to be what find what you're compel compelled by.
And I think that for the most part, if people sit back and think and they don't buy uh uh Campbell, they buy something that's they they've been to Bloomingdales and they see it's gotten better. Yeah. Uh when the stock was at 10 to then they see, oh Tony Spring, new CEO from Bloomingdales. Oh, they're closing the bad Macy's.
Oh, he's building more Bloomies. Wow. Transformation. 12 goes to 20. Transformation. I like transformation. Hey, what did you do, man? Oh, well, actually, that's a little surprise. That's a Bye bye bye. No, we want to hit you with some rapid fire. Yes, we do. Hit me. Hit me again. Like, you know, casino.
Hey, I I'm real good at cars. I went with Gino to the casino and I sat at the end and and I my greatest compliment was that they made me leave. What's the best restaurant in New York City? Um, best is Oh, corner store. The corner corner store with the with the burgers that go through the conveyor belt.
No, no, no. The new one downtown. Yeah, the one downtown is really fast. That's trendy. Very cool. Really? Yeah, I know. But I took my I took my wife there for her um unknown birthday when you get to a certain age. Unknown birthday. I see. I was thinking corner be dry. Ah, good burger, too. Best business leader.
Best Tim Cook. Best new stock in your portfolio. Well, the one the last one we bought was Nike and I like Nike. Valley Corning to thank you for gifting that one discount. Look, Nike is gift is a gift stock. It's a gift stock on sale. Yeah. Well, I think so. It's down. It's 50% below where it was when it was not as good.
Jim, they have to be cool. They're started getting some cool You go on sneaker. There's some $2,000 sneaks now. Yeah. We saw that back at that in the Italian Olympics. Yeah. What's the best business book you've ever read? It's still one up on Wall Street by Peter Lynch even after all this. Best show you consume that isn't a Jim Kramer show?
Well, I watch series. See, I don't watch, you know, I The last one was Task that I like, but I'm a I I the diplomat. I I I watch the serieses. I don't have a I don't have a TV. Yeah. I don't watch a TV. There's no TV shows that I watch. Uh I only watch streaming. I don't have cable. That's fair. Seinfeld or Friends?
Oh, Seinfeld still. Absolutely. You know, my wife watched Friends last week. She watched one and on the airplane and I said, "Oh, God, just turn this off." Yeah. I put on um you know, put but I was trying to get it to to put on what's the one that it's with the guy who wrote all the Seinfelds. Um Oh, yeah.
Curb. So, put on curb and she said, "No, no, this is gent gentle." She likes gentle. Yeah. Yeah. Seinfeld. Always sunny in Philadelphia. Yeah. Which is uh aggressive Seinfeld. Yes. Yes. And and finally, if Jim Kramer were a stock, what would your three or four letter ticker symbol? Do you know that Goldman asked me that?
You're kidding. That was an interview question. In my interview, when you 30 years ago, uh 40 years ago, they asked me, what was your answer? I said, I'm Exon. I'm the biggest and I'm the best. You Exon. Exxon, I'm the At that point, I'm Exon. I'm the biggest and I'm the best. Okay, but what if it was what if it was like what if it was like Jim Kramer?
Oh, you mean Kramer? There was there was Remark Industries which is a furniture company and that's Kramer backwards. Yeah, you know that. Yeah, we got a Kramer right here. That is so cool. Okay. Um I I would if if there were stock I'm going to have to say that I I'm Nvidia. Well, no, no, no. I think your stock is Oh, I
B U Y H O D. Oh, I like this. Buy hold. Mhm. Yeah, I like that. I think that's your ticker. I like that. And on that note, Jim, we'd love you to smash our chuch-ching button. The double. Great way to end, gentlemen. Thank you so much. Thank you for everything you do. Thank you for everything. You know what?
I think this was like James, this was the best one yet. Yeah. Couldn't have played better, Jim. Thank you so much.
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