0:00

Happy Saturday! I've said that some over the years.

0:02

We've probably done, I would say, 15 or

0:04

20 weekend extras in our nine

0:06

years. Well, it was time for a

0:09

16th or a 21st because if you

0:11

got to spend time with us earlier

0:13

this week, you already know what to

0:16

expect. Great camaraderie conversation, shared wisdom, maybe

0:18

a little love too, with some of

0:20

my favorite Fools contributors to this podcast's

0:22

mailbags over the last nine years. And

0:25

we thought, well, in addition to the

0:27

earlier podcast we recorded this week, why

0:30

wouldn't we spend a little extra time, if you wanted

0:32

to spend it with us, for the

0:34

first time together as a group? And

0:36

explore some open-ended questions. So I've

0:38

got four of them, and that's

0:41

what we got for you for

0:43

this rare weekend extra. Let's

0:45

get started. Welcome!

0:56

It is an extra.

0:58

We don't do extras enough. It's extra

1:00

fun to do extras. And this week

1:02

it made extra sense to do extras

1:04

because of the crowd that we had.

1:07

And I hope you, dear listener, spending

1:09

some time with us on your weekend or

1:11

some time after, I hope you're looking forward,

1:13

as I am, to opening

1:16

it up with this group of Fools. And

1:18

I have four open-ended questions, just to have,

1:20

I hope, an enjoyable discussion, full of some

1:22

wisdom, maybe a laugh or two. It's not

1:25

going to be too long. This is a

1:27

weekend extra. But I prepared four questions, and

1:29

I'm going to take them one

1:31

at a time. Are we ready, team? Yeah,

1:34

let's do it, David. All right.

1:36

Question number one. We're going to reflect

1:39

on change and adaptability here with this

1:41

first question. So I want you each

1:43

to look back over the years of

1:45

investing and engaging with Rule

1:48

Breaker Investing. What's

1:50

one significant change that you've made

1:52

to your investment strategy or mindset

1:54

as a result of

1:57

an unexpected lesson or experience, maybe?

1:59

something that might surprise

2:02

you or us to hear. How

2:04

has adaptation contributed to your

2:06

growth as an investor? And Jason

2:08

Newman, I see you with your hand up. Start

2:11

us. Sure, David. So, you know,

2:13

I gave this one some thought, and

2:16

I can't help but think

2:18

back with wonder about the

2:21

concept of a spiffy pop when

2:23

I was first getting started, when

2:26

this podcast even was first getting started.

2:30

And I longed for the day, and

2:32

every now and then we get those days

2:34

where there was just, you

2:36

know, I remember you always used to say and

2:38

probably still do, spiffy is for closers, because I'd

2:41

be so excited at the first thing in the

2:43

morning after a good earnings report that I might

2:45

have a spiffy pop coming. And

2:50

the change for me

2:52

was when the term

2:55

forget me pop became

2:57

old hat. The

2:59

change for me, which was just, you

3:01

know, truly remarkable and

3:04

amazing, was when spiffy

3:06

pops were not even

3:08

celebrated anymore, because the

3:11

power and the value of the

3:14

time that had passed made

3:16

them almost inevitable on a

3:18

daily basis in some cases.

3:23

And really, the impact

3:26

that's had on me as an investor has

3:28

been to be, A, comfortable

3:31

enough to just let my winners run,

3:34

but more importantly, perhaps comfortable enough to

3:36

just let my losers lose. I

3:39

used to comb through my portfolio

3:42

on a biannual

3:44

basis and sort of sell the

3:46

real dogs. Now

3:49

I'm totally comfortable having mine. And

3:51

I like you, I still have never lost

3:54

all of my capital, but I've got some

3:56

that are like minus 80. I

3:58

just never sell any. And

4:00

that's, I guess, the change. That

4:03

really is a change. And Jason, just defining our

4:05

terms briefly, because many listeners, many fools, fellow fools

4:08

will know what a spiffy pop is, but there

4:10

are also new people all the time. So this

4:12

is when you make more money in a single

4:14

day than the cost basis that you have for

4:16

that stock. So if you bought a stock way

4:19

back when at $12 a share,

4:21

let's say, and years later, it usually

4:23

does take some years, Jason. Years

4:25

later, the stock goes up by more than $12 in a single

4:27

day. We

4:29

call that not just a pop, but a

4:31

spiffy pop and a forget me pop, which

4:33

Jason also as a fantastic fool knows, and

4:35

I hope the whole world knows this, but

4:38

for those who don't, once you

4:40

get 13 of those, when

4:42

it happens for a 13th time for the

4:44

same stock, which by the way will happen,

4:47

if you get them and you behave this way,

4:49

you will have your winners keep winning. It

4:52

becomes a little bit not worthy of celebration

4:54

anymore. So we call the 13th, the bakers

4:56

doesn't, the forget me pop because we're just

4:58

going to not count it or celebrate anymore.

5:01

Adam Nelson. You

5:03

may think that I always thought about stocks

5:06

in terms of market cap based on my

5:08

mailbag track record, but that is one thing

5:10

that I actually did kind

5:12

of glean from listening, you know, to

5:14

your podcast and participating in

5:16

the community. I

5:19

still hear many people to this day talk

5:21

about stocks being expensive because the per share

5:23

price is high or other ones are cheap

5:25

because they are low and they think they

5:27

can afford to buy that particular stock. But

5:29

I think thinking about the

5:32

size of companies and how big

5:34

that that market cap can grow

5:36

to is really powerful. The

5:39

market cap game show kind

5:42

of teaches you that, you know, if you

5:44

think the market cap is much higher than

5:46

it actually turns out to be, perhaps maybe

5:48

that's a company that you should take

5:50

a deeper look at. One

5:53

of the examples I have, I think

5:55

where this is really powerful is just thinking

5:57

back to 2018. You

6:00

may have exchanged a message about this, but

6:02

when Apple first crossed the $1 trillion market

6:06

cap threshold, I remember

6:08

thinking, well, how much larger could this

6:11

thing actually become? It's huge. It surely

6:13

has to stop. And

6:16

I think a little bit later that year,

6:18

it did lose something like $300 or $400

6:20

billion of

6:22

market cap in the fourth quarter of 2018

6:25

when we had a brief

6:27

bear market, but memorable in

6:29

some ways. But then it now has gone

6:31

on to be $4X that amount

6:33

at $2.8 trillion. And

6:36

who knows where it can stop. And

6:39

that's just one example. It's not

6:41

necessarily an endorsement, but I think

6:43

it's amazing to think about how

6:46

much potential that these companies have and

6:48

how they can continue to grow and

6:50

impress us in unexpected ways. Such

6:53

a good point, Adam. I do

6:55

remember back in the day, people

6:57

saying, could there ever actually be

6:59

a trillion dollar market cap? And

7:01

the answer is yes, multiple times

7:03

so far and multiple trillions. Jason

7:05

Moore. Yeah, thank you. And

7:08

I think just to further on

7:10

Adam's point there as well, so

7:12

if listeners have gone

7:15

back and actually listened to

7:17

Wednesday's episode and set up, you

7:20

know that Shopify was something that

7:23

sort of introduced me into this as well. And

7:25

Shopify has, I do continue to

7:28

hold that, but

7:30

coming back to your original six traits

7:32

of the rule breaker, you know, number

7:34

three is a strong past price appreciation.

7:38

And building on what Adam

7:40

said, looking at Shopify and how much

7:42

that had gone up as a company,

7:44

it did make me nervous when I

7:46

was first purchasing stocks to do that.

7:48

But as I've held it throughout

7:50

time, I'm actually more confident in

7:52

the companies that have shown their

7:54

ability to have stock appreciation as

7:56

they also expand as a company.

8:00

and feel more comfortable holding those

8:02

for the long term. Jason,

8:05

I really appreciate that point. Shopify has been just

8:07

unbelievably volatile and I know you know this because

8:09

you've held it all the way through. Those

8:12

spiffy pops that we all enjoyed who are

8:14

running there, especially through 2021, they

8:17

dried up awfully quickly as the stock dropped from 170 to 40, actually

8:19

below 40, some of 2022. Very

8:24

happy to say it's tripled off of

8:26

its lows a few years ago, but this

8:28

is one of the better, bigger companies of

8:30

our time exhibiting that kind of

8:32

volatility. Many people, especially who are new,

8:35

especially to Rule Breaker Investing, need to know that's

8:37

part of what you're buying into. If you're gonna

8:39

buy into a I'm

8:41

holding approach to

8:44

investing and I'm pretty sure that each of us

8:46

is doing that and we know the benefits, but

8:48

you have to know the detriment

8:50

as well. Dave Gek, you have your hand up.

8:54

Yes, I wanted to mention about

8:56

how when I switched from the

8:58

dark side of team

9:00

Tom to team David

9:04

and when I originally came on to Motley-F

9:24

or in line with Tom's

9:26

thinking than I was of David.

9:29

I had a great name, but Tom had a better look. So

9:33

then, then

9:35

I noticed, my God, Dave

9:39

keeps trouncing his brother. So maybe I ought to

9:41

look into this and I thought, well, no, the

9:43

first thing I'm going to do is I'm gonna

9:45

set him in his place. And

9:47

at the time it was with Priceline,

9:50

which is the forerunner of booking. And

9:53

you kept recommending Priceline and you kept going

9:55

up and you recommend Priceline, then kept going

9:57

up. And I said, well, I'm gonna buy

9:59

Priceline. Not. Because I think it's gonna

10:01

go up. But. I'm on a put that boy

10:03

in his place. And it'll go down.

10:06

I had done the same thing with Wayne

10:08

Computer many years before and was able to

10:10

put them out of our business. Or

10:12

for those but who you who don't know

10:14

weighing was gonna be the replacements for I

10:16

B M. And. For a while, it's certainly

10:19

look what they were going to it. But.

10:21

Anyway, Lo. And behold, A.

10:24

Price, line and and booking get going

10:26

up also. So. That's when the

10:28

first started thinking you know what there is

10:30

something may be to a by good companies

10:32

and hold them and if they go up.

10:35

Maybe. That's a dime to jump on him

10:37

and I've done that many dogs and said. I.

10:40

Really appreciate that. A yeah can you

10:42

know it takes having a habit you

10:44

a few times and not being part

10:46

of it to realize? I don't think

10:48

it's possible just to intuit that without

10:50

having that experience as A and I

10:52

had that to and by the way,

10:54

some nice years. So many like minded

10:56

thoughts about investing, but sometimes the focus

10:59

is on what what what makes us

11:01

different? But I appreciate all of those

11:03

points. All right under question number two,

11:05

this one's about the intersection of passion.

11:07

And investing So friends we often

11:09

talk about the importance of investing

11:12

in what we know and what

11:14

we love, making our portfolio reflect.

11:16

Our best vision for the

11:18

future. Could you share a

11:20

story or anecdote about. About

11:23

how your personal passions are interests

11:25

lead you to and investment or

11:28

business opportunity. How did this alignment

11:30

influence the outcome? Might.

11:32

Make ban. On

11:34

I think. It's more

11:36

of an interest. I still remember

11:39

when month or the age of

11:41

ten. Going. To place where

11:43

my mom work, where she had. Worked.

11:45

In the computer better route Punch cards

11:48

were. Being. Processed. And.

11:50

Had a fascination with. The.

11:53

Whirling. Cards and then when there

11:55

were in college. And going to

11:57

punch stacks to be able to compile

11:59

program. Which. Then led to

12:01

my fascination with compute, took year

12:04

technology and. It's. When overall

12:06

pastor my and or interest actually.

12:08

Were. of casa Look tried to learn and miseries

12:11

also. Has. The. Most.

12:13

Of my. Dot. Or soul is

12:15

not. technology best. Like. You're

12:17

a little older than I am, but not

12:19

that much older and not so much older

12:21

that I don't. Also remember the punch cards

12:24

and I remember a daisy wield printer and

12:26

that's how you didn't have screens back then.

12:28

it printed you if you're reading a little

12:30

program, it printed it on paper back to

12:32

you so I can get in touch with

12:35

that. but I really are We glad we

12:37

got to grow up and invest during the

12:39

computer age that then turned in to and

12:41

age of connectivity and information. or it has

12:43

it's downsides. But. I think the upsides

12:46

are greater than the down. And man, as

12:48

investors, how lucky have we been to experience

12:50

this kind of Brother Jason More. Yeah.

12:53

Thanks David! Well I am sort of

12:56

a jack of all trades, but one

12:58

of the actual trades that I have

13:00

is that I'm a qualified electors and

13:02

and I can remember back. In

13:06

late two thousand this having

13:08

a discussion with family friends

13:10

about this in oh really

13:13

up and coming business called

13:15

Tesla and how amazing it

13:17

was and I spent. Probably.

13:20

Close to an hour on my

13:22

soapbox that night talking about how

13:24

amazing Tesla was in the products

13:27

of they had coming and how

13:29

the future was shaping up. But

13:31

unfortunately at the time I still

13:33

had not sound my way to

13:35

individual investing and I'm. So.

13:37

Over the course of the next decade

13:39

I sat there and still continue to

13:42

talk about Tesla and and build them

13:44

up. but I didn't have a part

13:46

in that company and so luckily he

13:48

things do change And Twenty Twenty! I

13:50

finally found my way there and was

13:52

able to get initial investment there and

13:54

it's done well for me and I

13:56

plan to hold that potentially till the

13:58

day I die. That them.

14:01

You know it's I, I. I heard

14:03

you talk about the circle of competence

14:05

and investing in what you know and

14:07

it says that's just a home run

14:09

for me. Really? Appreciate that

14:11

point Jason and you know I've always

14:13

thought, how wonderful is it that we

14:16

live in a society in a culture

14:18

where we can actually become part owners?

14:20

Of. The Things That we esteem. I

14:22

mean that is itself as a small

14:25

miracle for the most of human history

14:27

that was completely impossible. but the more

14:29

people who are switching on. To.

14:32

That who kind of death that and then

14:34

actually do. It's the better and stronger our future.

14:36

A thing out of Nelson. So.

14:39

My wife is a big runners

14:41

he is so Boston Marathon qualifier

14:43

and has done that. And

14:47

run many marathons and. After

14:49

the pandemic, I actually took

14:51

up trail running alongside her

14:54

and wanna be. Your

14:56

brands that we became familiar with was hooker.

14:58

And after a little bit of research I

15:01

came to find out that of his his

15:03

own by a publicly traded company at Deckers

15:05

Outdoor. Corporation. And they

15:07

also make odds and you that stock

15:10

has just. Been. On a remarkable

15:12

run, my wife still own that I saw

15:14

that way too soon. of course, Another

15:17

a lesson in itself. but I

15:19

think ab. It's just amazing

15:21

how you know just paying attention in

15:24

observing your own passes but also the

15:26

passenger of other people around you can

15:28

have a a really positive impact on

15:30

on you're investing. You know? it's funny

15:32

to hear Adam say that because I

15:35

myself neither a Trail Rudder North ever

15:37

will be a marathon runner, but I

15:39

do a little bit of running on

15:41

my own to try to I don't

15:44

know, live longer, feel good about myself

15:46

and I asked a friend of mine

15:48

who actually knows running like what shoes.

15:50

Should I guess And that friend said

15:53

hulk is now. this is not a

15:55

paid for advertisement. Although it is an

15:57

advertisement I think for hope as but

15:59

but I. Not here to time and hookers. I'm

16:01

here to say. I. Was the lazy

16:03

bum who didn't even look up. Who. Owned

16:05

hope our whether they were independent often people

16:08

think will debut know you've you've invested for

16:10

thirty years. You do the pods as you

16:12

capella will surely you would Now right that

16:14

hookers was done by Deckers actors but no.

16:17

Not. Until Adams's said that, are this. Podcast?

16:19

did I know that? And now I see.

16:22

That. I've missed the great stock and

16:24

that's to my regrets. So the

16:26

process of asking the things around

16:28

you that you love. Could.

16:31

I be a part owner of that that process.

16:33

Never. Ends. And we

16:35

probably don't. Ask That

16:37

question. Enough. Before we move

16:39

on the question number three. They get

16:42

quick thought from you. Okay

16:45

are one thing is that saw

16:47

I'm a little bit outside of

16:49

just buying know what I know?

16:51

Are sometimes I like to buy stocks that just

16:53

I hear about it and and had just gone

16:56

in treats we didn't find out something about? And

16:59

so warrior on investments in

17:01

know. Sometimes it turns out

17:03

very well. Sometimes it turns out the

17:05

ducks? oh well. I

17:08

try not to remember which ones they are business

17:10

and for to dominate the or think was one

17:12

of them The turcotte my interest for whatever interest.

17:14

Or for whatever reason when up for

17:17

a while. But it plunged horribly. Boots.

17:19

But. I. I like to do that just

17:21

on the fringe. in that's how I ended up with

17:23

about two hundred companies. And against the dial, As.

17:26

If. That's fantastic

17:28

and fifty three years of investing will do

17:30

some of that for you as well. But

17:32

let me say Daves that I totally celebrate

17:34

that. Of course I'm I'm a huge fan

17:37

of buying the things that we we do

17:39

know. And. that we steam most

17:41

of all but i'm also a big

17:43

fan and i have circle of competence

17:45

of phrase that i think we used

17:47

or earlier this week it may have

17:49

come from jason more his mouth on

17:52

our one hundred mailbag episode but what

17:54

i've often said is yes we should

17:56

keep our money inside that circle inside

17:58

the circle of things that we know.

18:01

But we should always be

18:03

looking to extend the perimeter of

18:06

that circle, to make the radius,

18:08

the diameter, am I remembering my

18:10

geometry right of that circle, to

18:13

keep extending outwards. So widening

18:16

our circle of competence by leading a

18:18

more interesting life, part of that I

18:20

do think Dave Gack is being a

18:22

little uncomfortable, not buying a lot, but

18:24

buying a little bit of something that

18:26

you think is interesting and that will

18:28

cause you by dent of being

18:31

a part owner to pay more

18:33

future attention. I'm glad to hear it's at

18:35

least some of the time worked and we're

18:37

all very comfortable with things that don't work.

18:39

As somebody who I think a big part

18:42

of this podcast has been me talking about

18:44

losing a lot, I think that's very important.

18:46

Let's move on to question number three. We're

18:48

going to call this one

18:50

predictions versus principles. In a

18:52

world where, do you notice

18:55

market predictions often grab headlines?

18:58

The rule breaker investing philosophy, I would

19:01

say we prioritize timeless principles

19:04

over timing the market. Can

19:07

you share a moment when sticking to

19:09

your principles over following

19:11

a trend paid off or

19:13

maybe conversely a time when it

19:15

was challenging but ultimately you reaffirmed

19:18

your commitment to some of our

19:20

rule breaker principles. Jason Newman. Sure.

19:23

Yeah, I can think of a couple. I think the two

19:26

most prominent ones that come to mind for

19:28

me over the last decade

19:30

or two were number

19:32

one when Reed Hastings came out and

19:34

said, we're going to split the company

19:36

in two and we're going to call

19:39

the DVD by mail business quickster and

19:41

the streaming business is going to be

19:43

Netflix and Mr. Market didn't like

19:45

that too much. Yeah, that was

19:47

a fun drop on the roller coaster

19:50

looking back. Certainly wasn't fun at the

19:52

time, but when everyone else

19:54

was running for the hills, for

19:56

me at least, I always remember Jim Mueller and of

20:00

the commentary that he had on the message

20:02

boards. Probably full analyst Jim Mueller. Love it.

20:05

If you watch CNBC, which I

20:07

don't, but if you

20:09

read the trade press, it

20:11

was consensus out. And

20:13

if you read the message boards or

20:16

trusted your gut, it was consensus in.

20:18

And that was one of

20:20

the first

20:23

and only times that I've really doubled

20:26

down. I know you always say, add

20:28

up, don't double down. Certainly one of

20:30

our principals, Jason, although I want to

20:32

support you in saying that occasionally, rule

20:35

breakers can break our rules. And I've

20:37

certainly occasionally added very infrequently,

20:39

but to something that has lost

20:41

a huge amount of value. And

20:45

I that day added up

20:47

on or doubled down on Netflix, when in

20:49

my gut, I knew I was adding up.

20:51

And those, as I mentioned on Wednesday show,

20:54

are some of the

20:56

shares where my cost basis is under

20:59

$3 and some

21:03

of the life changing returns on an investment,

21:05

no matter how small it is. And

21:07

then the other one I'll add to that is I

21:11

had never heard of a Dutch auction before, but

21:13

being as innovative as they were, when Sergey

21:16

and Larry took Google public, they did

21:18

so in a very democratic

21:21

way called the Dutch auction. And I

21:23

knew I wanted shares of Google at

21:26

the IPO, even though as the Motley

21:29

Fool has always said, you don't always have to

21:31

be first, you just have to be in. And

21:33

I just

21:35

wanted, I was interested and I subscribed

21:37

to a Dutch auction. And most

21:39

people don't know that that was an, that,

21:43

that Dutch auction was undersubscribed. As a

21:45

matter of fact, shares of Google went

21:47

public at $85 a share, as opposed

21:49

to what I think they were

21:52

expecting to be somewhere north of a hundred dollars

21:54

a share. And so those of

21:57

us that participated in that Dutch auction, um,

22:00

And benefited from that, those

22:02

returns are

22:04

also life-changing returns to be clear. But

22:09

I knew that the puck was going

22:12

in the direction of Google in the

22:14

future, and I wanted to be along for that

22:16

ride. Thank you for both

22:18

those memorable examples. John? Well,

22:22

we're talking about sticking with the

22:24

timeless principle, right? I don't

22:26

know if this would tie into this, but I

22:29

have my passion

22:31

about investing, or the

22:34

rules about investing is diversification.

22:36

So diversify your portfolio. And

22:39

I talked about it on the

22:41

Wednesday, the 100 Mailbag Podcast, that

22:45

it is very important for you to have

22:47

a diversified

22:49

portfolio, because that will allow you

22:51

to have both loser and a

22:53

winner, and then for the

22:55

luck to turn you away. I have a

22:58

story about me and my friends were looking

23:00

into this penny stock. It

23:03

was a stock that was working

23:07

towards nanotechnology

23:11

for the vaccine, the virus

23:13

vaccine, right? So

23:16

this is a very interesting story.

23:19

We were both looking at it. I

23:21

wasn't so much into the idea

23:24

of investing into the micro

23:26

cap or a very, I

23:29

don't know, penny stock, so to speak. But

23:32

he convinced me into, let's

23:34

look at this, you know, they're working into

23:36

something interesting. So I put some money into

23:38

it. Not a lot. I

23:40

bought 500 share at a very, very

23:43

small amount of money, maybe

23:46

not even $2,000. So

23:51

fast forward, he put all of

23:53

his money in that one

23:55

company. So

23:58

A couple of years goes by. Happen his

24:00

I am gonna sell it. This is two

24:02

thousand and. Nineteen. So.

24:05

You can say was a bad

24:08

this going. So. As soon as

24:10

he sold it and I thought I'll as

24:12

haven't done anything for a couple years, maybe

24:14

I should sell it to. That. Because

24:16

I have others. Are the

24:18

companies that I'm investing hims I wasn't

24:20

paying attention. In. Two

24:23

thousand and twenty when told it hit.

24:25

You. Could tell how that stock. Has.

24:28

Gone up because sets of one of

24:30

the company that was working towards the

24:32

vaccine. For. The

24:34

pivot. So. That

24:37

stuff. that's my. Line.

24:40

About like the importance of you have

24:42

to diversify your portfolio you can not

24:44

was just and I will allow you

24:46

for some time some luck to turn

24:49

your way. So. It to

24:51

prosper and I appreciate that point about

24:53

luck. Would you did say was these

24:55

shows where we didn't have time to

24:57

talk about that much be you just

24:59

illustrated a good example. I mean it

25:01

was really bad luck, they covet even

25:03

ever happened. But it did happen and

25:05

the timing of it was also lock

25:07

and yet I'm wow. So the difference

25:09

between getting a when and not there

25:11

was being diversified because for you job

25:13

you know it was just another holding

25:15

and you could just sit there and

25:17

let it linger languish for as long

25:19

as the be. Your friend had

25:21

gone all in which is isaac always have

25:23

a say but and as a consequence with

25:26

nothing happening for of just felt like I

25:28

need to get out of this because all

25:30

my money's not doing anything so. The.

25:32

Difference As you say

25:34

of diversification. Jason

25:37

more. Yeah, thanks Davis

25:39

Skirts. I've got a couple of quotes

25:41

that are ringing around in my head

25:43

that are coming love Us from Muslims

25:45

So the first one comes to probably

25:47

my most listen to episode of Rb

25:49

I with Frank Reich to Fools from

25:51

a few years ago. so

25:54

i fourth twenty one i believe

25:56

him frank says no men become

25:59

suddenly different from his habit and cherished

26:01

thought, right? And how

26:03

does that play into my investing?

26:05

Well, there's another great quote from

26:07

somebody who may go unmentioned on

26:09

this one. It sounds something like,

26:12

make your portfolio reflect your best

26:14

vision for our future. Some

26:16

of you might know that one as

26:18

a David Gardner special, something

26:21

he will go to the grave well

26:23

known for. And

26:25

the final one comes back

26:28

to a

26:30

quote that I've been saying for 25 years now, and

26:33

it's unattributed, but it's been mentioned

26:35

here before is, people

26:38

of integrity expect to be believed. And

26:40

if they're not, they let time prove

26:42

them right. And

26:44

when I look at the combination of all three

26:46

of those and how they tie in together, I

26:49

look back to my very early days

26:51

of starting to invest in individual stocks

26:54

and trading in and out. And

26:58

really what that was is that I

27:00

didn't have a system and

27:02

I didn't have a belief, something to sort

27:04

of help me as a North star going

27:06

through my investments. And

27:08

so when a little bit of bad news

27:10

came around, it was very easy to sell

27:12

it off and then you would learn to

27:14

regret that later on. And as

27:17

I have really centered in

27:19

on these three quotes, it

27:24

helps me understand A, what

27:26

I cherish the most and

27:28

B, what companies

27:31

I want to invest in because of

27:33

what they believe and where I believe

27:35

they're going. And so focusing

27:37

in strictly on those two, it

27:40

allows me to sit through sort

27:42

of stormy waters that their stock

27:44

price may reflect, even though the

27:47

business themselves are still heading towards

27:49

that direction of growth. What

27:52

a great combination of three wonderful quotations.

27:54

Well, at least two of them, since

27:56

one of them is mine, I won't

27:58

say that. But, but. really appreciate

28:00

that, Jason, because conviction

28:03

has to come from somewhere and it needs

28:05

to be in place for somebody to hold

28:07

something that's underperforming or if

28:10

the entire market is dropping, you have

28:12

to have conviction. So where does your

28:14

conviction originate from? And

28:16

I think it's one measure,

28:19

knowledge base. I mean, being an

28:21

electrician and seeing Tesla in

28:23

a way that I couldn't see would be

28:25

an example of that. But also your hope

28:28

and your passion. We talked about that earlier

28:30

this week on the Mailbag Show.

28:33

When you really hope for something, you

28:35

make it much more likely that your

28:37

own actions will be in accordance and

28:39

alignment with that hope, not disbelieving

28:41

yourself, trading out. And what a sad reflection for any

28:43

of us and we can all have it because we've

28:45

all done this before and we'll probably do it again

28:48

when you had a conviction but

28:50

you didn't have the courage of

28:53

your conviction. As a consequence, you

28:55

missed out on the reward that

28:57

you deserved but you didn't have

28:59

the mindset or habits in place

29:01

to benefit from that. Dave Gack?

29:05

Yes. I was thinking

29:07

about how back in 2008, the plant that I

29:09

was running, I was

29:12

the night before

29:15

it was about 10 o'clock at night

29:17

and the next day was going to be a horrible

29:19

day because I was going to have to go in

29:22

and tell everybody we were shutting the plant down. So

29:25

this was going to affect 500 people

29:27

or so. I get

29:29

a call from my boss at about 10

29:31

o'clock at night saying, Dave, we

29:33

don't have the money. You're

29:36

going to stay open until we have, until

29:38

the economy turns around. And

29:40

I said, what? This is General Electric.

29:42

How could we not have $1 million to

29:46

close a plant that's going to lose over

29:48

a million dollars in the next year? He

29:50

said, we don't have it. So

29:53

at that time I told my wife, I

29:55

said, well, this is Quite amazing.

29:57

She says, maybe we better get out of

29:59

the market. Zola. Everything that we have

30:01

united know there's no place to run of

30:03

g he's gonna go under. This is generally

30:05

the best. This is either going to be

30:08

the best time of the worst time, but

30:10

I have no place where I can run

30:12

slow as it. Okay. Readable

30:14

my a person and and stayed the

30:16

course. On. Fortunately,

30:20

Or. Unfortunately, her. Eye.

30:23

Or do I can have a job

30:25

I couldn't afford to closely. And

30:27

our sure enough, about ten months later they

30:29

didn't give a call and they said okay,

30:32

Thanks. A good look at Okay. Go ahead,

30:34

make the announcement tomorrow. And

30:36

that was a. And was

30:39

tough. There was tough. But. On

30:41

one side but on the other side I said

30:43

okay good. I'm glad I stayed

30:45

in and things just shot up for

30:47

their. Well. Well. To.

30:50

Do reflect back on that time, there

30:52

were some. There is so much stress

30:54

I mean I the most listeners whether

30:56

or not they were investors at the

30:58

time, most were alive at the time

31:00

and just a systemic shock. The gut

31:02

punch that our entire banking and mortgage

31:04

system took and are and to all

31:06

of our financial markets. It. Is

31:08

it's hard to get back in touch with how

31:11

scary that was. And. Really how painful

31:13

that was and so and day view in

31:15

the position of leadership that you were and

31:17

and having to got it out of her

31:19

months. Some combination trying to

31:21

think about your own nest egg and

31:23

what your conversations with your wife and

31:25

think about your employees and the decisions

31:27

being made by the leaders at a

31:29

big company. It's. Just A

31:32

It's a swirl of goodness and badness

31:34

and and harden Easy. but I'm glad

31:36

it got easier from Two Thousand and

31:38

Nine I that in retrospect we all

31:40

look back and say that was an

31:42

incredible time to be buying stocks. Kind

31:44

of like a quick ceremony was a

31:46

new and medicine for Netflix a few

31:48

years later. Are

31:50

I did as a close

31:52

out this weekend extra at

31:54

a special week to this

31:56

podcasts with my hundreds nail

31:58

baggers, let's conferences. No open

32:00

ended question. I'm gonna

32:03

call us when the ripple effect of

32:05

foolish investing. In this thing.

32:07

Isn't just about personal

32:09

gain? It's about

32:12

impact. So. Good.

32:14

Any view Share an example

32:17

of how your investment decisions

32:19

have led to positive outcomes

32:22

beyond just your portfolio. Might

32:25

be influencing your community. Maybe family

32:27

or others? someone around the water

32:29

cooler at work, or. Maybe.

32:32

Promoting innovation, Opening eyes around

32:34

you about the ways things

32:36

could actually be or maybe

32:39

some contribution to. Community.

32:41

Or social change? Some aspect where

32:44

there was a ripple effect. That.

32:46

You did that thing that you did

32:48

as an investor. Do

32:50

some more. Sir, I'll

32:53

jump in on this one. I

32:55

might have mentioned it can't remember

32:57

in a male beggar in a

32:59

tweet somewhere I'm A, but when

33:01

I was a lot younger my

33:04

very first introduction to investing I

33:06

suppose looking back on it was

33:08

that my older brother had taken

33:10

some of his hard earned money

33:12

and this as a teenager had

33:15

made an initial investments in a

33:17

few companies. And it's just

33:19

so happen to be right around

33:22

the time of the.com bubble. And

33:24

so he put initial investment as

33:26

things were going up and very

33:29

very quickly lost. Most.

33:31

Of his money at that point

33:33

sold everything that he could and

33:36

of basically salads and he know

33:38

not to do something ever so

33:40

crazy again and that was one

33:42

of my take Always going through

33:45

my twenties as well and as

33:47

I started getting back into investing

33:49

in understanding the difference between investing

33:51

and trading and the ups and

33:54

downs that are associated with that

33:56

I've had. Several. Different

33:58

conversations with him, The time

34:00

and sharing the wisdom I've learned through

34:02

Motley Fool, but also through the the

34:04

books that I've read as a. As.

34:07

A side project to that. I'm a

34:09

got him back. Interested

34:12

in it, at least at this point.

34:14

I'm. But the you

34:16

know it's only one small impact.

34:18

Butts is certainly. The conversations that

34:20

we've had have helped me as

34:22

I talked to several other people

34:24

my kids included. And.

34:27

Dell letting them know that you

34:29

know there's there's no way to

34:31

tell when you're first at decision

34:33

to invest, when might that might

34:35

be. But as it's been stated

34:38

so many times you know given

34:40

enough time it tends to go

34:42

up into the rights and if

34:44

you can have that convicts in

34:46

with in it you know things

34:48

will work out for the best.

34:51

Thank. You for that Jason Well said Mike

34:54

big man. I'm a

34:56

sucker. Richard on the Wednesday or

34:58

podcast about. Investing in your

35:00

Salford best mean myself or my

35:03

soul recall. Reading. One

35:05

of the first books. That

35:07

I read when I was a teenager. but. During.

35:09

The number different steps to a goal setting and

35:11

stuff and one of them was to create a

35:13

bucket list. I. Was a result

35:16

of craving a bucket list arm. I

35:18

had one of them that said diced

35:20

widow run for public office. So.

35:23

Starring in Nineteen Ninety Six, I

35:25

ran for school board lost. Ninety.

35:27

Eight. Ran. Again

35:30

last. Ran. In two thousand

35:32

last. And then finally, two

35:34

Thousand Two. I. Was elected to

35:36

school board, local school board, and. As

35:39

a result of that bucket list item I

35:41

I serve for twelve years. And

35:43

down. The. Gap to the point where I

35:45

think people. Came. Up tremendously

35:47

thought they were voting for an

35:49

incumbent by the time is running

35:52

for to assess assess. Ah that's

35:54

what a wonderful example and in

35:56

like at you it. You've.

35:58

Talked a lot about journaling. And

36:00

that was in fact earlier this week

36:02

referenced by one of our other members,

36:05

the importance of doing so and future.

36:07

Ah, and and so I know how

36:09

contemplative and reflective you are as a

36:11

person has clearly been there. All.

36:14

The way through your life. but I see

36:16

it in you as an investor. Earlier this

36:19

week on the mailbag you talked about how

36:21

you really only just starting as an investor

36:23

and you you're you're aiming for twenty five

36:25

plus years going for Do you have been

36:28

investing for several years now? weren't That is

36:30

said. One of the for lessons of self

36:32

knowledge is. As number for

36:34

actually he closes with this one.

36:37

the importance of reflecting. In

36:39

order to learn. Going. Forward

36:42

we have to reflect on our past

36:44

experience as it the stock market gives

36:46

us a great opportunity, not just our

36:48

own experience, but to reflect on the

36:50

world at large or companies. And even

36:53

though I don't use crafts or charts,

36:55

I think that's a mistake and approach

36:57

to try to pick stocks. I love

36:59

stock crafts because they show me graphically.

37:02

Were. Something has been so any

37:04

quick thought back from you about

37:06

that Mike. I think if he

37:08

also as a t miss one of the own

37:10

contributions are new to Europe. Are.

37:13

Be a podcast with the hundred fifty words

37:15

somebody. Has no bills bill

37:17

mans ruff hundred kids were some the

37:19

i sense you when the to or

37:21

every. Which is exactly the to the

37:23

same fourth. Okay, Yeah, I'm channeling.

37:25

I can't keep up or remember all

37:27

of the might mail that contributions, even

37:29

for my most esteemed contributors. But yes,

37:31

that's a good example would be to

37:33

serve insulting herbs, bringing in what I've

37:36

learned and then just saying it and

37:38

not remembering were same sandwich I think

37:40

is gonna happen increasingly for me going

37:42

forwards I think it's already happening. job.

37:45

The as well as and all they

37:47

can tell kind of a close here.

37:49

I was. Wanting to

37:51

say something about I was able to.

37:56

Kind of seen some people in

37:58

my life. Said. Someone's

38:00

mind. About. Capitalism.

38:03

By. Introducing them to the conscious

38:05

capitalism ideas on his I have

38:07

one thing that really stuck with

38:10

me is what Rides has said

38:12

in one of his wrath so

38:14

they are has said and one

38:16

of the podcast and you interview

38:18

him. It. Said that if you

38:21

cannot respect the way you earn it. Might.

38:23

Be has no guiding. Of

38:25

you cannot use it to make people's

38:28

lives better. Money has no purpose. So.

38:31

That is kind of what stuff with

38:33

me and that's what makes me wanna

38:35

to help other people get on building

38:38

their own. Wow so that when we

38:40

have more people. Become.

38:42

More finances as. Table.

38:45

Financially stable. Than. We can

38:47

help more people then I'll is paying

38:50

it forward so that that was kind

38:52

of one thing that I have done

38:54

in my own. Phone. Light.

38:57

Is. Getting people started investing. That.

39:01

Is such a gift that you are

39:03

giving that you probably will never fully

39:05

be able to understand the value of

39:08

that gif that you've been giving is

39:10

probably been. Three degrees of influence is

39:12

probably been spread in concentric circles outward

39:15

from that person, whether through word or

39:17

deed. that's really wonderful. Job. And

39:19

I'm so glad you sure that roster

39:21

surgical. What a great quote census I

39:23

dig Jack tickets home. Oh.

39:27

And we along with our. Whizzing.

39:30

Says that the when I think about

39:32

impacts outside of my investments is that

39:34

so when I was a T. We.

39:38

Had to know why boss's was came

39:41

by to her. Every so

39:43

often. And. This was the first time

39:45

I was gonna meet him. And.

39:48

P. Ran about how he had about one

39:51

hundred play managers under him. Of

39:53

which I was one. And.

39:55

Every time he drum he would have the

39:57

young him up being. Rising. Stars

39:59

of. Opening yard the join him in

40:01

the play managers were there to to

40:03

go also. And. For some

40:06

reason it was just part of the culture that there

40:08

was way too much you drink. Way.

40:10

Too much drinking that's at this festivity.

40:13

But. That's what. what? Was.

40:15

Just so happened that I had was under some

40:17

medication at that time so I didn't drink at

40:19

all. And pay a

40:21

trying to stood out of I gotta

40:23

admit but afterwards couple of the people

40:26

came up to me and said oh

40:28

I'm so glad you didn't drink. I

40:30

don't drink but got it. It showed me

40:33

that You know I don't have to. Go

40:35

along with everything. Just. Because

40:37

of that was like and so I

40:39

probably would have been drinking but as

40:41

such a such a such as to

40:44

that it kind of set mean in

40:46

fact that I couldn't drink at these

40:48

functions anymore and so I didn't because

40:50

I always felt were responsibility to those

40:52

that did not what. Went

40:54

on my book one time My boss's

40:56

boss is I noticed that you don't

40:59

drink that these functions and dub. You.

41:02

Know. Maybe. Personal but his

41:04

or reasoner er at det du.drink at

41:06

all in his at all no I

41:08

I I I direct. I. Don't drink

41:11

at this one since he goes, why not

41:13

And I didn't want to let in on

41:15

on those. Some was I don't I told

41:17

him I said well I just remember something

41:19

that my dad always told me. he said

41:21

would set. In. It and I said.

41:23

Don't drink around people who don't trust.

41:27

And is just kind of game. You're shocked. Look, And.

41:29

Then he says. Of a

41:32

darn good advice. Up.

41:36

Afterwards though when he retired.

41:38

Law. I got up with them

41:40

and member we drank to access

41:42

just to show that yeah I

41:44

didn't have as a. As

41:47

a great Dave get story, there are

41:50

many to close and we are going

41:52

to close it out right now. I

41:54

really want to thank again. My guests

41:56

and my contributors are not all could

41:58

be part of this weekend actually. But

42:00

I want to reflect again the names

42:02

of Jason More. Dave. Jack.

42:05

Jam. Who like other, no

42:08

sorrow or prince only needs

42:10

one named because we know

42:12

who that is. It had

42:14

a don't need a surname

42:16

Ah, Natalie Jump Jason thrice.

42:18

Adam. Nelson. Mike.

42:21

Mcmahon. And. Jason Newman.

42:23

so thank you to each of you

42:25

for this these extra contributions but most

42:27

of all to the mail bag that

42:30

we shared together Number one hundred for

42:32

rule breaker investing this week. My.

42:34

Friends. For. Ah,

42:37

right. Well, I think we can

42:39

put a wrapper on February, especially

42:42

because it's not even February anymore.

42:44

It's March, and if you followed

42:46

our podcast in recent weeks, you

42:48

know what to expect for the

42:50

first time. And rule breaker investing

42:52

podcast history. Yeah, they do this

42:55

in college basketball too, But we're

42:57

bringing. March. Madness to

42:59

rule breaker investing. It's March.

43:01

Martin. Tap. Madness.

43:04

Bringing back for task champions of

43:06

the Market Cap Game Show and

43:08

over the next three weeks this

43:11

final four. Will. Do to

43:13

semi final shows and a

43:15

finals. so naming the Two

43:17

Thousand Twenty Four. Market.

43:20

Cap game so national champion for

43:22

the first time. Very excited! Already

43:24

rubbing my hands together for March

43:27

market tab mad. Is coming soon.

43:29

In fact this coming Wednesday.

43:31

To a podcast platform. Mere use. Yes,

43:34

I'll be watching some basketball to. If

43:36

you're a fan, perhaps you will, but

43:38

I hope everybody will to did said

43:41

March. Market. Cap. Madness.

43:44

See. Soon, fool on. Us

43:47

Always people on this program may have into

43:49

some stocks they talk about and the motley

43:52

fool may have formal recommendations for or against

43:54

still buy or sell stocks the solely on

43:56

what. You hear more about Rule

43:59

Breaker investing? Rb I sat for

44:01

that com.