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everyone my name is wesley, lucas,

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stay on history of the second world, war podcast on

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a retelling

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of the second world starting out with

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the beginning of the war itself but almost two decades

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earlier to try and determine why

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and how the nation's the world would find

0:37

themselves in a worldwide conflict

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0:42

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history of the second world war on all major

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0:48

of the second world war dot com

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the hike as we did it cause you dreams the

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game requests the as she got me into

0:57

reading stats for any they your duties

1:00

to the investing for me sooner on

1:02

tax led by andrew center

1:04

on the eve of the

1:07

, boom boom on and you're

1:10

all the financial freedom

1:23

eric both welcome to investing for

1:25

beginners podcast tonight entered

1:27

i are gonna do a birds eye view of

1:30

idea international business machines

1:32

are going to talk about the company little bit

1:35

maybe some things you can look for talk

1:37

a little bit about a hurdle rated for me

1:39

that would prevent me from looking further

1:42

into a company like this possibly

1:44

for those of you do to the podcast we might

1:46

discuss some things that are little above

1:48

beginner today it's if you are not

1:51

familiar with these terms

1:53

please check out our episodes forty

1:56

three through forty seven these

1:58

are agree foundation to give you a base of

2:00

warning or what stocks are in all the great

2:02

stuff and that i hope give you a better

2:04

understanding of what was going to discuss tonight so

2:07

without giving it away yet i thought we could

2:09

taco a bit about that so interwar years i

2:11

guess initial thoughts on idea similar

2:14

to what we discussed in the first

2:16

bird's eye view which was walmart i

2:19

want to look at the company's top-line, their

2:21

revenue and i want to see growth

2:23

and growth that tracking

2:26

pretty well and so well

2:28

say pretty well i mean it's alleys getting close

2:30

to gdp or somewhere around

2:33

there and that's and most

2:35

of the cases so when i like i

2:37

b m that's definitely not the case

2:40

there seems to be it as very long term trend

2:42

if i pull up on quick and fast dot net

2:44

from twenty twelve all the way down to twenty twenty

2:46

one revenues almost gone in

2:48

half and that line has

2:50

looked pretty consistently

2:53

lower i mean there are a few ups in there

2:55

but it's not a good trend at least

2:57

over the last ten years so for me that's

3:01

something that i don't consider further

3:03

when i look at a company like this but what stood

3:05

out stood you when you first put up by

3:07

be well that obviously

3:10

was one of the first things that i noticed

3:12

right away because when you look at the income

3:14

statement of a company that obviously the

3:16

top line is the first thing is going to notice

3:19

and a i'm looking at a smaller snapshot

3:21

here sauce i only had like five years

3:23

to look at and it

3:26

was down a fair amount in the

3:28

five years so that wasn't encouraging

3:30

but it may not be a deal killer quite

3:33

yet but as i look farther down the

3:35

income statement so as we kind

3:37

of go down the income statements you talk about the revenues

3:39

the cost of goods sold with your of what

3:42

it costs for the business to you're

3:44

generating sales in materials

3:47

typically or things of that

3:49

nature and then we look at the operating

3:51

expenses so things like are

3:54

indeed or as

3:56

dna which stands for selling general

3:58

as administration or marketing so

4:00

any of those kinds of things those are generally what

4:03

you look at you kind of determine what

4:05

the operating income of the businesses

4:07

so you take the cost of goods sold

4:09

and the operating expenses and that's how much

4:12

it takes for i b m to generate

4:14

the revenues and as for profit that they

4:16

have left over after they pay for those

4:19

expenses because every company is great

4:21

as they are including apple has

4:23

to hey for those expenses

4:25

to generate revenues that they

4:27

do and so is also

4:30

a bit of up proxy if you

4:32

will for free cash flow

4:34

and we can talk about that oh a bit later but

4:36

we are looking at a company when of things

4:38

that i always try to what to look at as see

4:40

that is the company's profitable ana

4:43

operating income level and

4:45

then i also want to see if that's gonna generate

4:47

is that going to translate into free

4:49

cash flow i don't i personally

4:52

don't look at earnings a whole lot because

4:54

there can be some gobbledygook in between the

4:56

operating expenses and the the

4:58

net income that can sometimes make it a little

5:01

questionable and i'm not saying

5:03

that are out now fraud but there's

5:05

this sometimes things can be manipulated

5:08

or best so anyway when i'm looking

5:10

at looking at like i'd yeah i'm the first thing

5:12

that jumps out at me when i worked as the

5:15

operating income is i see

5:17

their margins and are operating margins

5:19

have dropped from seventeen

5:22

point seven percent in two thousand and sixteen

5:25

to the latest twelve months at

5:27

eleven percent that's not a good sign

5:29

and so it kind of matches

5:31

that the revenues are going down but here's an

5:33

interesting thing if you look at the percentage

5:36

of year over year scenes it

5:38

doesn't match the drop in revenues

5:41

which tells me that they're they're not controlling

5:43

their expenses very well in other

5:45

words when revenues drops they're not

5:47

adjusting for that in the

5:49

other expenses it costs them to

5:51

to run the business and sometimes things

5:53

like are a d will fluctuate

5:56

a little bitter may be going up as the company's really

5:58

trying to ramp up a product or project

6:00

or something i get that the when

6:02

do you see those numbers consistently going up

6:05

versus the revenues coming down that

6:07

means that the operating income that the company

6:09

generates is going to be on a steady decline

6:12

and that that's not something you want to see for

6:14

the for me if i was you know screening

6:16

for companies and i saw

6:18

something that like i do with i b m that would

6:20

be for me a hard pass i'm like oh we're done here

6:23

i don't need to dig any further because that's

6:25

not what i want to see it makes sense

6:27

you know i'm not like a growth stock

6:29

expert i've kind of

6:31

notice this from afar that

6:33

seems like you want the you generally

6:36

want to see the officer so gross stock

6:38

investors don't really care if the margin a small

6:40

just as long as it's getting better over

6:42

time when you're describing is the

6:44

opposite case where the margins

6:47

getting worse over time the

6:49

top my head i can't think of a situation

6:51

where that's something the where investors

6:53

want a sushi suffered enough snow

6:55

because even if if you're sacrificing

6:57

margin so the say you should see revenue

7:01

going up basically

7:03

say hey we're spending that were at least grow

7:05

in sales because of it yeah exactly

7:07

and i'm not a grocer duster either

7:09

i i certainly a read about the stuff and i understand

7:12

the concepts to certain extent and

7:14

it isn't something i generally is here too but one of

7:16

the things that i do know is you

7:19

kind of want to start to see some form

7:21

of of operating leverage where

7:23

you see that the company is able to

7:26

leverage those costs those

7:28

expenses to generate more revenue

7:31

and ideally people can see

7:33

my hands here but like to see the revenue co

7:35

ops and the operates fences

7:37

either stay flat or go down that

7:39

indicates that the company has operating

7:41

leverage which means that they're able to

7:44

more efficiently use the expenses

7:46

and costs that they have to

7:49

generate higher margins was gives them

7:51

more money to do other

7:53

things whether it's reinvest

7:55

it's reinvest company whether it's buy back shares

7:57

pay a dividend depending on where the company

7:59

as in their life cycle the world is your

8:01

oyster if they have you know bigger margins

8:04

and that's what makes a company like visa for example

8:06

so ridiculous is that you

8:09

know they have eighty or ninety percent gross

8:11

eighty five ninety percent gross margins

8:13

and sixty percent plus

8:15

operating margins which means they have lots

8:18

and lots of money to play with to figure

8:20

out how to do things and a company

8:22

like i b m it was kind of on the opposite spectrum

8:24

of that right now where you see the margins

8:26

contracting which means that they have less

8:29

available money to go out and do

8:31

the things that they need to do to

8:33

grow and that's what makes it hard

8:35

when you see those kinds of things and you

8:38

know i b m is a legacy company i

8:40

know they've been trying really hard to work

8:42

towards becoming a bigger player in the cloud

8:45

but amazon and microsoft

8:47

and google have already kinda beat them to the punch

8:49

in their kind of johnny come lately and that

8:51

but doesn't mean it's they don't make good

8:53

products but you know you can see in

8:55

the numbers sometimes my buddy oswald

8:57

dumbledore and likes to say is that the numbers

9:00

tell us a story it's our job as

9:02

an analyst depending on what a level of animals

9:04

we are is to to interpret

9:06

those numbers and figure out what that story

9:09

is that they're trying to tell us and

9:11

i think when you look at a company like id m

9:13

the story is telling me that

9:15

things are probably going in the wrong direction

9:18

i'm not predicting any sort of bankruptcy or anything

9:20

like that but it just looks like the company

9:22

is not trending in the right direction and

9:25

that they're either living on

9:27

their past or there are

9:30

the products and services that are offering

9:32

people to start enticing to people

9:34

in are having trouble selling them to people to

9:36

make it relevant

9:38

hello everyone my name is wesley live as saying

9:40

from the history of the second world war podcast

9:42

my podcast is a mostly chronological

9:45

retelling of the second world war starting

9:47

out with the beginning of the war itself but almost

9:49

two decades earlier to try and determine

9:52

why and how the nations of the world would

9:54

find themselves in a worldwide conflict

9:56

just twenty years after the devastation of

9:58

the first world war i hope you'll

10:00

join me on this journey to the most cataclysmic

10:03

conflict in human history as a try

10:05

and answer not just the questions of what

10:07

and where but why and how

10:10

the only on a journey around the globe as he brought

10:12

the scope of second world war history beyond the

10:14

well known battlefields of europe and the pacific

10:17

during weekly episodes i seek to provide

10:19

new insight for long time students of the war

10:22

while also being a great jumping on points for

10:24

anyone seeking deeper understanding of

10:26

world war two you can find history

10:28

the second world war on all major podcast

10:30

platforms or in history of the second world

10:32

war dot com

10:35

i think it's a great example because

10:37

one of the reasons a company could have

10:40

revenues that fall is

10:42

, they could be splitting off parts of

10:44

their business we touched on our with the

10:46

a t and t episode where he talked about

10:48

the spin off for a to anti anti

10:51

sometimes you'll see businesses do that where they're breaking

10:53

pieces off and they're getting they're but

10:56

they could still be executing well if

10:58

the margins going in the right direction so

11:01

you know seem that not happening

11:03

at least now as we look at it today

11:06

makes for another good way to screen

11:08

out for companies or maybe aren't gonna give

11:10

you the gross that you're hoping for fly

11:12

like example with these are having really high

11:14

operating margin so talked about the trend

11:16

in operating margin and and well stocked back

11:18

on a high or low levels in your

11:20

opinion which of those is more

11:23

important is it the trend

11:25

and operating margin or is it the

11:28

operating margin level itself or does it depends

11:30

yeah our favorite two words it depends

11:33

it really comes down to i think

11:35

it really comes down to the business

11:37

sector in and let's

11:39

take opposite ends of the spectrum if

11:41

you look at visa because of the nature

11:44

of their business it's a very asset

11:46

like very capital light type

11:48

of business most of the foundations

11:50

as a run off of was established

11:53

a long long time ago and

11:55

so at this point is they aren't really in

11:57

a position where they're really having to innovate

12:00

what they do to keep

12:02

their edge but they're not really

12:04

out there really pushing to

12:07

really i guess create

12:09

something new something they are investing

12:11

upon comparatively and

12:14

their margins are huge likewise

12:16

in the flipside of as of as like cosco

12:19

which has really really low

12:21

margins because of the nature of

12:23

their business there were a retail business

12:26

the basically cells everything

12:28

for was a forty percent above

12:30

cost or something crazy like that i think they

12:32

have like a set margin that they offer

12:35

to to purely loudly wells

12:37

and so and that includes that

12:40

doesn't include it compensating for

12:42

employees and sir it's

12:44

power the buildings a

12:46

all the stuff that goes into that forty percent

12:48

says i don't know off the top of my head what

12:50

costco smarts and sir are but the one save

12:53

four or five percent summer not rains

12:55

and maybe a little higher than that but

12:58

they're low and especially well comparatively

13:01

to accompany like this up but

13:03

if you will get a copy i cosco you want to

13:05

see those margins stay even

13:08

or even creep up a little bit depending on

13:11

whether they some of that for at costco is

13:13

going to depend on their subscription

13:15

model if they raise those prices

13:18

that could help them increase that

13:20

operating margin is a very well run

13:22

company they are very cost efficient

13:24

and they're very focused on that because they understand

13:27

that there isn't a lot of room for error for them because

13:29

of the nature of their business and we looked

13:32

at walmart a little while ago they're kind of the same

13:34

kind of idea where they there are low cost

13:36

provider so they they offer things are

13:38

very very small margin and amazon

13:41

their retail side is kind of the same idea

13:43

it's just a very very small margin so there

13:45

isn't a lot of room to play with so

13:48

i guess it really kind of you have to for me i

13:50

was trying to look at it in the winds of

13:53

what kind of there's this

13:55

do they operate in as as payments companies

13:58

it's gonna be a lot higher than as it's a pain and

14:00

if it's a retail was going to be lower than

14:03

let's say some sort of technology

14:05

company like an apple or something

14:07

or microsoft just because the nature of what

14:09

they're looking at but if you look at microsoft

14:11

vs i , crowd

14:14

strike cloud where act a

14:16

snowflake you know any of those companies

14:18

then you get a better sense of maybe how

14:21

they're doing margin wise

14:24

so that's i guess that's kinda what i look at what

14:26

about you multiple

14:31

, mode andrews is a free

14:34

market pdf dot com

14:38

that's a great answer i mean i would i

14:40

would basically say the same thing you gotta take

14:42

the margin and contacts with the other

14:45

competitors in this industry and

14:47

also as it's friends

14:49

between itself is it getting better

14:52

stay in the same getting worse they're

14:55

all really important things the only thing i'll add this

14:58

was a pretty big epiphany for me

15:00

when i realized there because huskers

15:02

a good example of you know their margins

15:04

are so small that we're talking about

15:06

hundreds of billions of dollars in revenues

15:09

every year now when you're

15:11

operating margins like three percent on that

15:13

let's say that's on two hundred

15:15

billion or you that a two percent to

15:17

make it easy that's for belly right so

15:20

as you improve that just by one percent

15:22

and what i mean by that is you get from two

15:25

percent to three percent you've

15:27

just added a neither basically

15:30

fifty percent growth on else if

15:32

those numbers makes sense of hearing number basically

15:34

you go from four billion to help

15:36

me hairless of edo from four billion to six

15:38

billion thank you yeah eg four

15:40

billion the six billion adding the two billion

15:42

which is a fifty percent increase crack

15:45

of v sour to go from sixty

15:47

eight percent to sixty nine percent it's

15:49

the same one percent but because a

15:51

starting a sixty eight percent it's

15:54

not making a difference to to process

15:56

thoughts as a move the needle so that's why with lower

15:59

margin this is your tend to see more

16:01

of an emphasis on that kind of stuff

16:03

and then higher margin businesses like netflix

16:05

or facebook everybody's focus on the

16:08

top line because they don't really care about the costs

16:11

because the margins are the so

16:13

high that the difference in costs journalists

16:15

are going to be that motorists the exact that's

16:17

a good insights how do you think a pricing

16:19

power would impact

16:22

and operating margin or would it yeah

16:25

it would it should depends on

16:27

the environment right if if you have high inflation

16:29

like we've been seen lately you just need pricing

16:31

power to just kinda keep up with inflation

16:34

the operating margin stays the same

16:36

if you have an environment where inflation isn't

16:38

that bad but you sell pricing power

16:41

you get that operating leverage you're talking about

16:43

earlier or , can see your hands

16:46

but but revenue as opening

16:48

up while the expensive stay down

16:50

and you're getting this nice sark

16:52

by mouth opening up and

16:54

really unlocking that

16:56

is so you can get multiplication of earnings and

16:59

i know coca-cola in the eighties

17:01

i was a late eighties through

17:03

the nineties for warren buffett they had serious

17:06

growth from the operating leverage a

17:08

it would you find a company that

17:10

has that that is those are some

17:12

of the things that you really want to focus in on

17:15

and it can help you find great

17:17

investments that compound your

17:20

returns over a long periods of time because

17:23

the market will reward companies like that

17:25

and when you see that kinda thing that's

17:27

something you really want to pay attention to the pricing

17:30

power directly affects the gross

17:32

margin and also flows to the the

17:34

operating margin as well and

17:36

the more that apple can charge for an iphone

17:39

the more it's going to help their operating

17:41

margins and their gross margins along

17:43

the way that's that can help the company

17:46

really improve their earnings

17:49

as well as our returns

17:51

and that's really what we want and that's

17:53

why finding these strong companies that have

17:56

that pricing power as much as we

17:58

hate paying an extra dollar for domino's

18:00

pizza we love it when we see that

18:02

on the income statement out the company because

18:04

they've been says translating to more money for

18:06

the company which means they can this

18:09

is good management then it translates

18:11

to better returns for the company which in

18:13

turn translates to better returns

18:15

for us that's why a lot of the stuff so we talk about

18:17

is kind of so interconnected still finding

18:20

companies that have strong financed by companies

18:22

have strong products and pricing

18:24

power that they can improve their prices

18:26

without affecting how many people by

18:29

their units you know netflix

18:31

when they raise their prices does that really

18:33

we don't know it does it affect how

18:35

many subscribers will have it's kinda hard to tell

18:37

right now but that could be something that's going on

18:39

right now with the they have raised the prices over

18:41

the last year or so and there are also

18:43

losing subscribers so they'd be netflix

18:45

doesn't have pricing power maybe it's not an

18:47

essential that we all thought it was

18:50

who we don't know but these are all questions

18:52

that you need to ask yourself when you're looking

18:54

at a company whether it's i b m or

18:57

whether it's texas roadhouse or

18:59

whether it's texas instruments or whether

19:01

it's costco a just the kind of have

19:03

to those are all questions you have to kind

19:05

of try to factor in when you're looking

19:07

at it but it also goes back to the

19:09

management as well because if

19:11

you got this great company that's doing awesome

19:13

things and generating all this income

19:16

from your a great product at

19:18

great design a great service whatever

19:20

it is that they offer but then management

19:22

kind of mishandles that

19:24

money then you

19:26

know that great product over a period of time is

19:29

not going to be so great because they're going to have

19:31

to keep reinvesting keep it where it is or to

19:33

keep it better growing and make it relevant

19:35

for people otherwise that's going

19:37

to be money squandered money squandered why

19:39

understanding and having a little bit of knowledge

19:41

about management and whatnot can help you

19:44

a lot it's kind of take that idea little

19:46

bit further to try the on pack like

19:48

why what about i b m y as their

19:50

margins declining i'm an

19:52

expert and i b m i've looked at the company i'm

19:54

aware of generally what they do something

19:56

that stood out stood me those if you look at their cash

19:58

flow statement than thirty one billion

20:01

dollars on an acquisition and twenty nine team

20:03

that was red hat the ,

20:05

generally look favorably on that

20:07

because they basically injected new life

20:09

into an old tax dodging company and

20:11

then they finally bought something into the business

20:13

and actually grass basically

20:16

with if you look at twenty look at they made

20:18

another pretty spicy acquisition

20:20

of illness as one that i think it was several acquisitions

20:23

but basically in the cosmos they minutes same

20:25

three point one billion dollars

20:28

towards acquisitions and so you

20:30

start to wonder you're talking about how

20:32

management's using money and

20:34

obviously management's gonna do things to try

20:36

to turn things around but you

20:38

start to wonder if you're making acquisitions

20:41

the margins not going up it's going

20:44

down after the acquisition if you don't

20:46

have revenue growth on that that's really stronger

20:48

and and compelling are they potentially

20:50

even squandering what little his last

20:52

i don't know the answer that for a be ambitious in

20:54

general that could be another thing the thing

20:57

about that's a great insight and for

20:59

those of you that quite

21:01

following what we're talking about when

21:03

you can a look at the the three big

21:05

financial statements the income statement balance

21:08

sheet and a cast for statements income

21:10

see that flows into the casual statement which

21:12

flows into the balance sheets and so

21:14

the net income that as a bottom

21:17

of the income statement goes directly to the top

21:19

of the cash for statements and if

21:21

you follow along with us on your

21:24

favorite website whatever that might

21:26

be you'll see is that the

21:28

net income matches exactly what the net

21:30

income was on that the income statements

21:33

and at the bottom of that is a line

21:35

item called cash from operations and that

21:37

basically tells us how much money

21:39

or how much cash i b m has

21:41

generated from that as income

21:44

from the income statements and to

21:46

think of the casual statement i guess it easy way

21:48

to think of it i boys think thought of it's is

21:50

is kind of like that the checkbook of the business

21:53

it's of money going in in the money going out

21:55

and have money left over his money we get to

21:57

use to spend on the saints so

22:00

what are the things that the a lot of companies will

22:02

do is they were use that

22:05

has from operations which is kind

22:07

of a quickie way i see

22:10

what kind of cash for the company can produce

22:12

and if we want to look at cashflow

22:15

just in general you're looking at

22:18

cash , operations wes capital

22:20

expenditures and if you wanted

22:22

us to i know i'm settled tell you what kind of free

22:24

cash flow the company is generating

22:27

an generally once they have that

22:29

number they have choices the

22:31

make with all that stuff now andor was just pointing

22:34

out acquisitions so if you notice

22:36

on the cash or statement is trending

22:38

downwards over the last five or six years by

22:41

a lot and that's not

22:43

good that's never good because

22:45

the free cash flows what the company really can reinvest

22:48

back in the business and like

22:51

andrew like andrew it looks like they're choosing

22:54

to by other companies in an effort

22:56

to try to stimulate growth and

22:58

one of the things about companies that

23:01

do acquisitions there is

23:03

a good and there's than that so good and

23:06

there's not a whole lot in between and

23:08

so and lot of cereal acquirers

23:10

companies like constellation software

23:13

or roper technologies or dana her

23:15

or thermo fisher these

23:17

are our company's are by company's lot of companies

23:19

they have teams that work for

23:21

them that's their whole job as the integrate

23:24

these businesses with their business

23:26

and they have systems they have processes

23:29

they have people that have a doing a for years

23:31

decades so they have lots of experience

23:34

in a very good at it and are also very

23:36

good at finding companies that will be a good

23:38

match for their company as

23:40

well as being able to integrate

23:42

well with the current walter

23:45

and so it's not just about still

23:47

he was caught by this cause this would be

23:49

great addition for a business is

23:51

the culture is completely opposite and

23:54

the systems are completely opposite it's gonna take

23:56

lots of money and lots of times to integrate

23:58

those meanwhile you're paying for all

24:00

the cost of buying that business like

24:03

they bought read have for thirty two billion or

24:05

so and they had to take on a lot of dead

24:08

to do that as well as using some of the

24:10

cashflow that they they generates

24:12

so it became a very expensive proposition

24:15

and if they don't see like

24:17

eight or said if they don't see revenue growth from

24:19

that in a relatively

24:21

the amount of time

24:23

then that's not a good thing and

24:25

that's with set some of these companies that

24:28

require companies integrated really wealth

24:30

apart from the ones that do not an

24:33

i think mckenzie did a study

24:35

and i think it's was sixty seventy

24:38

eighty eighty percent of all acquisitions

24:41

don't achieve the goals

24:43

are to see your state that are going to state

24:45

most of them are either revenue synergies which

24:47

means they're gonna be able to integrate the business

24:49

and as the law to revenue growth from it's

24:51

or it's cost efficiencies like eliminating

24:54

doubled up sectors and i can of things

24:57

but most of the acquisitions

24:59

don't achieve either one of those targets it

25:01

ends up being a a ,

25:04

mistake for shareholders

25:06

and that's why i companies like berkshire hathaway

25:08

with warren buffet or google and microsoft

25:11

and all the other ones i've mentioned those are really good

25:13

companies that make great acquisitions

25:16

that do a good job of integrating for the most

25:18

part the acquisitions and

25:20

they end up performing well for the

25:22

parent company and so

25:24

i think that's one of the things about i

25:26

b m as i think the jury is still out

25:29

on this red hat acquisition and whether

25:31

it's going to pay off for the company and

25:33

see how a and essence save their bacon oh

25:36

over the next few years or not and i think

25:38

that's what people are kind of maybe treading

25:40

water on the company waiting for to see i

25:42

dunno it's an interesting observation

25:45

yeah observation that's a very good one and

25:47

good one a lot of like wisdom

25:49

unpacked there and i hope people

25:52

use that to to look at margins take margin

25:54

seriously and also take acquisitions

25:56

seriously because they can be great ways

25:58

to grow the also be great ways

26:01

to kill value absolutely

26:03

though

26:04

what's your verdict on a this one yeah

26:07

it's obviously a hard pass this pass this to be

26:09

you know and it is kind of interesting

26:11

that we chose us because i've been kind of starting

26:13

to go down the rabbit hole of cloud providers

26:16

and some of that and so i've been reading

26:18

about some of these companies and this

26:21

is this is totally anecdotal so

26:23

ticket for what it's worth but i read somewhere

26:25

not too long ago that people that can't

26:28

get real jobs that like google and microsoft

26:30

and stuff they go to work at i b m so

26:32

i don't mean to offend anybody that works at i b

26:35

m and please i don't have any proof

26:37

of any of this but that's just i read that

26:39

somewhere for some analysts said that

26:41

about i b m so i get picked up for what

26:43

it's worth after that type of invest the i do

26:45

i mean i'm sure there's going to be investors out there

26:47

who can no when i b m

26:49

c by quickly when it's

26:51

cheap so i quickly when it gets expensive that's

26:54

not really my thing i like to buy and hold

26:56

for the long term so for me it doesn't

26:58

pass for all those great reasons that they have said all

27:01

, folks will with that we will go ahead and wrap

27:03

up our bird's eye view of i b m and

27:05

hope you guys enjoyed our discussion enjoyed

27:07

our company as well as the ideas

27:10

behind operating margins

27:12

operating leverage cost of goods sold

27:15

free cash flow acquisitions all

27:17

kinds of fun stuff we talked about if you're

27:19

new to the podcast we have

27:21

beginner episodes that you could go

27:23

back and listen to i would highly recommend you do

27:25

that just the kind of give you a a good base

27:28

for all the things that you're going to learn as you listen

27:30

to our show their episodes forty three through

27:32

forty seven you can find them on

27:34

any of your podcast players and i

27:36

would strongly encourage you to listen to them if you're like

27:39

i have no idea what you guys were talking about

27:41

tonight that will help give you a good basis

27:43

to kind of start learning about the

27:45

stock market and everything that we are trying

27:47

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27:49

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27:51

has this huge search bar at the top

27:53

that you cannot myth that has

27:56

you can find almost everything that we talked

27:58

about today on our website the margins

28:00

operating levers acquisitions we

28:02

have articles about all that stuff to help you learn

28:05

a little deeper about cyber things that we talked

28:07

about you can add those to your tool kit of analysis

28:09

sell out that helps you guys and

28:12

without any further do ago hadn't scientists

28:14

are you guys got there and a vest with a margin of safety

28:16

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