0:00

You're

0:00

listening to an Airwave media

0:03

podcast.

0:04

Hello,

0:05

everyone. My name is Westy Louisa

0:08

from the History of the Second World War podcast. join

0:11

me on a journey through the most destructive conflict

0:13

in human history. A journey that will take

0:15

us not just through the famous campaigns in

0:17

cataclysmic battles but also

0:19

to the lesser well known corners of the war

0:22

that touched millions all over the world.

0:24

As we try and answer not just the questions

0:26

of what and where but how

0:28

and why. You could find history of

0:30

the second world war on all major podcast

0:32

platforms or at history of the second world

0:34

war dot com. Hutchison,

0:36

Minnesota had some problems.

0:39

For

0:39

the adults of Hutchinson, the problem was the teenagers.

0:41

They kept sneaking off at night to empty barns

0:44

where they'd brace yourself, dance, Who

0:46

knew what sort of sin and heavy petting in French

0:48

literature these barn dances might lead to?

0:50

No. The adults of Hutchison, Minnesota

0:53

did not approve. neither it

0:55

seemed did the devil. One summer

0:57

night Satan himself suddenly appeared in

0:59

the middle of the dance floor and the debauched teens

1:01

ran in fear. He showed up at the next

1:03

dance too. For a few months, it seemed like

1:05

you couldn't go to a late night barn dance in Hutchinson

1:08

without getting chased out by the devil, pitchfork

1:11

and toe. Until one night, when a fourteen

1:13

year old boy had the good sense to shoot him in the

1:15

chest, at which point the devil was revealed,

1:17

Scooby Doo style the bloodier to be the local

1:19

methodist minister. dressed in a costume

1:22

and thrown from the roof by rope and pulley.

1:25

This is the constant, a history of getting things

1:27

wrong. I'm Mark Chrysler. Every episode,

1:29

we look at the accidents, mistakes, and

1:31

bad ideas that helped miss shape our world.

1:34

Find us at constant podcast dot com

1:36

or wherever you get your podcasts.

1:45

love

1:45

this podcast because it crushes your dreams and

1:47

getting rich They actually got me into

1:49

reading stats for anything. You're tuned

1:51

in to the investing for beginners

1:53

podcast. Led by Andrey

1:55

Sather, and Dave Ahern. Step

1:58

by step premium investing

1:59

guidance for beginners. Your

2:02

path to financial freedom. starts

2:04

now. Starts

2:06

now.

2:14

Alright, folks. Welcome to investing

2:17

for beginners podcast. Tonight,

2:19

we have episode two hundred and forty

2:21

And tonight, we thought we would talk about what

2:23

not to buy the dip on in twenty twenty

2:25

two. We thought we would go through a

2:27

list of different sectors, sections,

2:30

different kinds of ideas that maybe you might wanna

2:32

avoid buying the dip on because

2:34

they may not give you the best returns

2:36

over a longer period of time. because

2:38

that's what we're all trying to do here.

2:40

So without any further ado, I will

2:42

go ahead and kinda start. So

2:44

the first thing, I guess,

2:46

section, if you will, that we wanted to talk

2:48

about was expensive stocks. So

2:50

this is something we do not recommend you

2:52

by the dip on in twenty twenty two. And

2:55

Andrew, why would that be? Why would we wanna

2:57

avoid expensive stocks? Well, because

2:59

when you buy expensive stocks over

3:01

the long term of your portfolio does not do

3:03

well, especially when you have a time period

3:05

like this where the market is struggling

3:08

to find its footing and it's been

3:10

going down for a while. There's two

3:12

ways you can think about whether

3:14

a stock is cheap or expensive. You

3:17

have what's called relative and absolute.

3:20

Relative cheapness would be there's

3:22

several ways you could define it, but

3:25

you could look at the stock and say,

3:27

oh, it's at a fifty two week low

3:29

So this means it's cheap. People

3:32

will say that a lot. A fifty two week

3:34

low means this is the lowest point the stock

3:36

has been in the last fifty two weeks. The

3:38

problem with that type of an idea

3:41

when it comes to whether a stock is

3:43

cheaper or expensive is that's

3:45

not how the market works over the long term,

3:47

unfortunately. sometimes it does work

3:49

that way where you buy a a stock at a fifty

3:51

two week low and it was a great stock

3:53

and it was cheap and then you do well on it.

3:55

but sometimes it doesn't. So

3:57

you have to be really careful about that.

3:59

And the reason is it kinda goes

4:02

back to the basics a little bit where

4:05

you invest in companies because

4:07

you become part owner

4:10

of these businesses. That's why you're in the stock market.

4:12

these companies will produce cash

4:14

flow. Some of that ends up

4:17

coming back to the owners

4:19

of the business in one form or

4:21

the other whether today or

4:23

tomorrow. And so if you say

4:25

I wanna pay a million dollars

4:28

for a company that I only expect to

4:30

pay me ten dollars over the

4:32

next ten years.

4:33

That's too expensive. Okay? I

4:35

don't care if last year it was

4:37

ten million dollars and now it's a

4:39

million dollars that's

4:41

expensive. So you take that

4:43

same logic and you use it with

4:45

the stock market and that's where you get

4:47

absolute valuation. and

4:49

absolute expensive or absolute

4:52

cheap. So you really want to be careful

4:54

that you're not finding yourself in the

4:56

relative I think this is cheap

4:58

because it's gone down a lot. You can get

5:00

burned really, really badly when

5:02

you do that. Yes, you can. And

5:04

the idea that I like to remember is we

5:06

talked about this a while back and

5:08

it's something that I know you've written about

5:11

is this idea of when

5:13

you the price you pay matters. And

5:15

when you buy a company, and I'm gonna pick

5:17

on Cisco here for a second. If you had

5:19

bought Cisco at the height of the dot com

5:21

boom in two thousand, you

5:24

still haven't returned to that same

5:26

level of value. And

5:28

this is what? Twenty two years later,

5:30

and it still hasn't recovered from

5:32

the drop that they experienced during that

5:34

period. Microsoft kinda

5:37

went through the same thing. In two thousand,

5:39

it dropped, and it went thirteen,

5:41

fifteen years, something like that before started

5:43

to prove again, and that kind of correlated

5:45

with the the new CEO coming in, kinda

5:48

changing the business around. But if you had

5:50

bought Microsoft in two thousand,

5:52

you would have had to wait thirteen years

5:54

to see a positive return from

5:56

that investment. And it's not to say that

5:58

you couldn't have had a return if you'd bought

6:00

it in, let's say, two thousand five. But

6:02

the point is is that it was really expensive

6:05

in two thousand. and

6:07

it dropped, and then it took a long

6:09

time for it to come back to that same value.

6:12

Even when it was back at the same price,

6:14

it was still cheaper

6:16

than it was in two thousand because

6:18

of the value of the company. It's kinda

6:20

like buying a Porsche in two thousand

6:23

for a hundred thousand dollars

6:25

you drive it off the lot and now it's only worth

6:28

fifty thousand dollars. And then

6:30

over the period of the next thirteen years,

6:32

the value of the car declines

6:35

because people aren't into porsches or

6:37

whatever. But then you spend all this money

6:39

refurbishing it, and then thirteen,

6:41

fifteen years later, you can turnaround and

6:43

sell it for more because now it's a collector's item.

6:45

So if you look at stocks the same

6:47

kind of way, you have to think about what it

6:49

is you're paying and what the price is,

6:51

right now. And we're not talking, like, absolute

6:53

dollar amount. Like, a hundred dollars is more

6:55

expensive than ninety dollars. It's more about the

6:57

value that you're buying the company

7:00

for. And so you want to stay

7:02

away from companies that are really expensive

7:04

still. Like Andrew was talking about

7:06

earlier, there are companies that have come off

7:08

of COVID, that are down sixty,

7:11

seventy, eighty percent from their highs,

7:13

and they're still expensive. And they're

7:15

still the value that you would get for

7:17

buying that company now is

7:19

arguably too expensive. And

7:22

so you can either wait or you can just

7:24

pass and try to find something else. So

7:26

those are, I guess, some ideas that I had

7:28

for expensive stocks. Do we want to

7:30

move on to the next player value

7:32

traps? What are your thoughts on value traps?

7:34

So value traps is taking the

7:37

opposite side of that. where

7:39

these are actually absolutely

7:41

cheap. Okay. So now we're kind of in

7:43

the flip situation where it's like instead of

7:45

having to pay a million dollars. Maybe I'm

7:47

paying ten dollars for

7:49

this business that's given me good

7:51

cash flow every day. But the reason why it's

7:53

trading at ten dollars because it

7:56

probably will go bankrupt tomorrow, or

7:58

it's just like Braden has

8:00

said melting ice cube. You

8:02

wanna stay away from those type of businesses

8:04

because business made a certain amount

8:06

of profit today. If they have

8:09

something in their industry or in

8:11

their business model that's fundamentally changed,

8:14

and now every day is like a

8:16

ticking time bomb and they're they're shrinking

8:18

and so they're getting bigger, that's

8:20

not a that's not a good value either

8:22

even though it might seem like a good value.

8:24

Price to earnings is a ratio that's

8:26

probably the easiest metric

8:28

to start understanding absolute

8:31

value. whether something's cheaper or

8:33

expensive. If you wanna learn about it, you can go on

8:35

our website. We talk about it. We've

8:37

written about it. But you have to be

8:39

careful with very low

8:41

price to earnings and other

8:44

kind of metrics like that if

8:46

it's not looking forward and if

8:48

it's only looking backwards.

8:51

So easy example would be

8:53

the horse and buggy. They went through a

8:55

time period where I'm

8:57

sure being the horse and buggy maker was really,

8:59

really profitable. and then the Model

9:01

t came around. And so

9:03

you got a bet in that time frame.

9:06

They were trying to ring out as much

9:08

money as they could from that business until it

9:10

eventually failed. You see that a lot actually

9:12

in the stock market and you want to be very

9:14

careful. That's why as much as I

9:16

like to push people to look at the

9:18

numbers, look at the business, use

9:20

some cold hard facts and numbers

9:22

to determine value. You also

9:24

wanna notice if things have

9:26

changed and see businesses

9:29

where their future does not look as

9:31

good for one reason or

9:33

the other. This episode is brought to

9:35

you by Samsung. Unfold

9:38

the all new Galaxy z Fold

9:40

four and expand your

9:42

world. With flex mode, it stands on

9:44

its own, so your hands free to get

9:46

more done during calls. And with

9:48

multi window view, you can use up to

9:50

three apps at the same time. Plus,

9:52

the edge to edge screen allows you to fully

9:55

immerse yourself in your favorite games and

9:57

shows. Visit samsung dot

9:59

com to learn

9:59

more about Galaxy z Fold for.

10:03

Hello, everyone. My name is Wesley Labesee

10:06

from the History of the Second World War

10:08

podcast.

10:08

My podcast is a mostly chronological

10:11

retailing of second World War, and I hope you will join

10:13

me on a journey through the most cataclysmic

10:15

conflict in human history. As we

10:17

try to answer the questions of not just

10:19

what and where but how

10:21

and why. It joined me on a journey

10:23

not just through the famous campaigns, battles

10:25

and events, but also on a trip around the

10:27

globe as we broaden the scope of second world

10:29

war history beyond the well known

10:31

battlefields of Europe and the Pacific.

10:33

During weekly episodes, I seek to

10:35

provide new insight for long time students

10:37

of the war while also being a great jumping on

10:39

point for anyone seeking a deeper

10:41

understanding of the Second World

10:43

War. This podcast has made it to the

10:45

invasion of Poland in nineteen thirty

10:47

nine and start listening now to find out

10:49

how the world would find itself embroiled

10:51

in its second worldwide conflict

10:53

in just twenty years. can

10:55

find history of the second world war on all

10:58

major podcast platforms or at history

11:00

of the second world war. Yeah.

11:01

Absolutely. That avoiding value

11:04

traps is, you know, the following knife.

11:06

Avoiding these companies that are

11:08

in decline can

11:10

sometimes be very hard and value

11:12

investors we've talked about before,

11:14

a lot of them fall in different

11:16

camps. And one of the camps is looking

11:18

for a very cheap stocks and

11:20

trying to buy those because the

11:22

idea is is that you buy this cheap company

11:25

that the market is ignoring

11:27

or is pricing incorrectly and that

11:29

it revert to the mean. In other words, it'll

11:31

go back to being where it should be

11:33

because the value of the business is

11:35

higher than what the stock market is

11:37

valued at. But sometimes, it's

11:39

cheap for a reason. You want to avoid

11:41

it. GE is a good example

11:44

of this. even some of the companies recently that

11:46

have gone bankrupt like Radio

11:48

Shack. You know, avoiding companies like

11:50

Radio Shack. Bed Bath and

11:52

Beyond, even a week ago, people

11:54

were saying that, hey, this may or may not

11:56

make it or not. The company

11:58

is has been cheap for a reason because

12:00

the business is struggling.

12:02

even though there's lots of funny stuff going on

12:04

in the stock market regarding the company, but if you

12:06

look at the basic value of

12:08

the business, it's struggling. J. C. Penney,

12:11

same kind of idea. if you look

12:13

at the, you know, it's very simple

12:15

too to sometimes just notice when you

12:17

go to the mall and see

12:19

different stores that you go into, if

12:21

there's nobody in the store, that's not a good

12:23

sign. Right? And if you

12:25

notice that in all the places that you

12:27

go, that just nobody seems to shop at

12:29

these stores, Well, that's an indication

12:31

that something's happened in the business, and it's

12:33

just not as appealing to consumers

12:35

anymore. And I guarantee you if

12:37

at the financials of that particular company, you're gonna

12:39

see those results. Macy's has been

12:41

struggling with the same kind of thing. Nordstrom has

12:43

been struggling. with the same kind of

12:45

thing. And these companies are all cheap

12:47

because the business is struggling.

12:49

And so the market is expecting them

12:51

not to do well, and so it it

12:53

makes them cheap. And you have to ask yourself, why would

12:55

would you wanna buy a company like that that

12:57

appears to be in secular decline for

12:59

whatever reason? And a

13:01

few years ago, Sears, was one of

13:03

those companies that was it's cheap. And it was

13:05

cheap for a reason because they were on the big struggle

13:07

bus. And one of the next

13:09

Warren Buffett's Eddie Lambert came in and was

13:11

supposed to, you know, reuscitate the

13:13

company that didn't happen. And

13:15

it ended up going bankrupt anyway.

13:17

So sometimes you have to

13:19

understand that it's cheap for a reason and

13:21

avoid it, but it comes back to what Andrew was

13:23

saying, you have to understand the fundamentals and you

13:25

have to understand the business model and,

13:27

you know, a little insider tip. If you see

13:29

sales declining for ten years or

13:31

more, consecutively, you might wanna

13:33

step away. So there's just something to think

13:35

about ground breaking tip. Thank you. Yeah.

13:37

Right. Yeah. Ground breaking. What's

13:40

the best way to get started in the market?

13:43

Download Andrew's ebook for free

13:45

at

13:45

stockmarket TDF dot

13:48

com.

13:48

Alright. Let's

13:50

move on to the next one. This one will be fun.

13:52

So we have Crypto and NFTs.

13:55

So Andrew, I'm gonna tee that up, one up for you,

13:57

and you can take a swing at that first.

13:59

Oh, boy. No. Hopefully, it's not like

14:01

my golf swing. Hopefully

14:03

better. I've learned enough about

14:05

Crypto to be dangerous and I've dabbled

14:07

enough to get a

14:09

general sense for it. And

14:11

I think there's a lot of opportunity in

14:14

that space. I think the technology is

14:17

truly revolutionary and

14:19

it appears that we're

14:21

gonna get the next Google,

14:24

Facebook, whatever, to come

14:26

from the crypto world. And there's

14:28

just so many potential use cases in the

14:30

future because of the blockchain.

14:32

Now that all said, we've said this before.

14:35

It is a minefield

14:37

and not to, like, rub

14:39

people's faces in the mud, but there's been

14:41

lots of fraud and it hasn't stopped.

14:44

and a lot of

14:46

rug pulling, people just

14:48

basically saying whatever they want,

14:50

and people putting money into it and

14:52

having no recourse over how that

14:54

what happens to their money and then they lose it all.

14:56

So you have to be careful. I think maybe

14:58

it'd be helpful just to real quick, just

15:00

to give a basics of most crypto

15:02

projects have been working so people can

15:04

identify it and maybe have a

15:06

better understanding of it. What I mean

15:08

is we've talked before about dilution

15:11

and buybacks. So this is a very

15:13

common thing that stock market investors

15:15

are aware of. It's basically

15:17

when you dilute the shares of a

15:19

company, it means you're giving ownership to

15:21

more people. just like the way stock options

15:23

work. So your slice of that

15:25

pie, that pie of the pizza is your ownership of the

15:27

business. The more people are given

15:29

that slice of the pie, the smaller your

15:31

slice gets. We like to buy a stock. I like to buy

15:33

stocks where that pie is

15:35

increasing because the company is buying back shares,

15:37

which means there's less people who

15:39

own the stock. Okay. So

15:41

the way that cryptos have been

15:43

paying these crazy APRs, like,

15:45

I can think of one off the top of my head.

15:47

Still today, it's paying like a thirty three percent

15:50

APR. So they say, you put our

15:52

money in our crypto ecosystem. You're gonna

15:54

get thirty three percent interest on

15:56

your money. The thing

15:58

that people might not realize about that

15:59

is the way they are paying for that APR

16:02

is they're shrinking your slice of the

16:04

pie. And If you

16:06

understood kind of the way the stock market works, you

16:08

can see it in parallel in crypto

16:10

land. So that's one

16:12

issue. Is that the APR that

16:14

makes sound like you're getting a great deal is

16:16

actually just them taking away your

16:18

pizza and giving it back to you in little

16:20

pieces. And the second issue

16:22

is just in my mind, it's like there's

16:24

no SEC regulation, there's

16:26

no recourse, no accountability. It's

16:28

like they can really say whatever

16:30

they want. and they post it on the white paper

16:32

online, and you just have to take the word

16:34

for it in a lot of cases. So one day,

16:36

maybe it will be legitimate. But in

16:38

the meantime, you're looking at crypto and

16:40

thinking it's cheap because it's ninety

16:42

five percent down. Think of what we

16:44

said earlier with the expensive stocks.

16:46

Again, it's absolute terms. And a

16:48

lot of these the few that I've looked

16:50

at are still trading at, like, a

16:52

thousand times sales, something ridiculous

16:54

like that. Right? So even if the

16:57

financials that they're saying are in fact true,

16:59

it's still crazy expensive even after

17:01

drawing down eighty percent. So be very,

17:03

very careful and I would not put there's so

17:05

much trouble you can get into in

17:07

general in that space. And so I

17:09

would be very, very leery and

17:12

certainly not put a vast majority of your

17:14

wealth into it. Hutchinson

17:16

Minnesota

17:16

had some problems. For

17:18

the

17:18

the problem was the teenagers. They kept

17:21

sneaking off at night to empty barns where they'd

17:23

brace yourself, dance. Who

17:25

knew what sort of sin and heavy petting in French literature these

17:28

barndances might lead to? No. The

17:30

adults of Hutchison, Minnesota did

17:32

not approve. neither

17:34

it seemed did the devil. One

17:36

summer night Satan himself suddenly appeared in

17:38

the middle of the dance floor and the debauched

17:41

teens ran in fear. He showed up at the next

17:43

dance too. For a few months, it seemed like you

17:45

couldn't go to a late night barn dance in

17:47

Hutchinson without getting chased out by the

17:49

devil, pitchfork and toe.

17:51

Until one night, when a fourteen year old boy had the

17:53

good sense to shoot him in the chest, at which

17:55

point the devil was revealed, Scooby Doo style

17:57

the bloodier to be the local methodist

18:00

minister. dressed in a costume and thrown in from the roof

18:02

by rope and pulley. This

18:04

is the constant, a history of getting things wrong.

18:06

I'm Mark Chrysler. Every episode, we look at

18:08

the accidents, mistakes, and bad ideas

18:11

that helped miss shape our world.

18:13

Find us at constant podcast dot

18:15

com or wherever you get your

18:17

podcasts.

18:22

No. No. Not at

18:22

all. Again, like Andrew, I've warned enough

18:25

about it to be dangerous. probably

18:27

even more dangerous than Andrew.

18:29

So the little that I've learned about

18:31

it has really focused around web

18:33

three and payments and some of those

18:36

ideas. and even the people that are writing

18:38

about it and that are far more rewarded

18:40

about it than I am, think that the space

18:42

is in very early innings. and

18:44

there's still a lot to play

18:46

out about where the

18:48

crypto is really gonna fit in,

18:51

whether it's there's still lots of questions

18:53

about it. Whether it's going to be

18:55

a actual currency or

18:57

whether it's going to be a store of

18:59

wealth or whether it's correlated to the

19:01

markets or not. There's lots of uncertainty.

19:03

And like Andrew said, there's no

19:05

regulation at this point. I know that they're working on

19:07

trying to get some. And I

19:09

think that would probably be beneficial for

19:11

everybody concerned. But I

19:13

think right now, there's

19:15

so much money going into it and everybody's

19:17

excited about the possibilities of

19:19

it, but the actual use cases

19:21

are still yet to be determined

19:24

and are still being worked out. There's a lot of smart

19:26

people working in that space for sure.

19:28

But as a general

19:31

rule, having that being a very large part of

19:33

your portfolio is

19:35

in essence gambling at this point because

19:37

there is no sure thing. There

19:39

is no I know that if I buy,

19:41

you know, crypto a, this is

19:43

gonna be the next Google. Or if I buy

19:45

crypto b, this is gonna be

19:47

the next Facebook or Microsoft or

19:49

whatever, you know, insert company name.

19:51

There's just we're too early innings in

19:53

this to really understand

19:55

where it's ultimately gonna go. Is

19:58

it gonna have to have an impact

20:00

probably, but when is that gonna happen? Is

20:02

it gonna happen next year? or is it

20:04

gonna happen seventeen years from now? We don't

20:06

really know and nobody knows. And

20:08

so I would encourage anybody, like

20:10

Andrew was saying, even though there's been a winter recently,

20:13

and there's been a few things that have gone bankrupt,

20:15

and there's been a lot of stuff down

20:17

a lot from their

20:20

heights. it's still super

20:22

expensive. And it's very

20:24

speculative. Even again, some of the people that I'm

20:26

reading of that are trying to teach

20:28

me ideas about crypto are saying it's

20:30

early innings and it's very speculative

20:32

at this point. To be investing a

20:34

large portions of your portfolio,

20:37

into crypto at this point, it

20:39

can be dangerous because you don't know what you're

20:41

getting into, and

20:43

it can turn on a dime very

20:45

quickly, much quicker than companies can. And that's another

20:47

thing that's kind of scary about it is, you

20:49

know, the difference between a ponzi and,

20:51

you know, who's a winner and a loser and a

20:53

ponzi is you know, if you're the one

20:55

holding, you're the loser. So it's really hard

20:57

to know in the cryptospace, what's the pausing,

20:59

what's not. And for me, it falls

21:01

into the two hard pile. Interesting to learn. And

21:04

I'm trying to, you know, to learn a little bit about it.

21:06

But as far as investing in it,

21:08

it's just my thing. There's far other

21:10

greater things that I don't understand that I

21:12

can lose money on as well. So

21:14

I choose other things. Yeah. Just be careful if

21:16

you're gonna dabble in this If you put a small portion

21:18

of your portfolio in it, that's your choice. But

21:20

if you're putting fifty, sixty percent, I would

21:22

caution you to rethink that idea. That's very

21:24

well said. So the last item on

21:26

our list here, IPOs and

21:29

specs. So please

21:31

enlighten us. Okay.

21:33

IPOs and specs. So

21:35

this is a area that

21:37

was one of the hottest

21:39

things during the, I

21:41

guess, the COVID period, if you will.

21:44

So right after the market crashed in March

21:46

of twenty twenty and it started to rebound,

21:49

everything started going up into the

21:51

right and it just seemed

21:53

like nobody could do anything wrong. And that was kind of the

21:55

beginnings of the height of IPOs and

21:57

specs. And really, what what those means?

22:00

IPOs are basically initial public

22:02

offerings of a company. So when a

22:04

company like DoorDash goes from bringing a

22:06

private company to a public company that we

22:08

can all go that's what

22:10

happens. There's a whole process that they go

22:12

through to become a public company

22:14

and they sell their shares on the

22:16

market and now we can become part owners

22:18

of DoorDash for example. And

22:21

so, generally, what happened during that period

22:23

with IPOs in particular is they all

22:25

went crazy. And so

22:27

a lot of these companies when they would initially

22:29

offer their shares, would offer them at,

22:31

let's say, I'll just pick on DoorDash for a

22:33

second. I think they're initially offering it around

22:35

thirty or forty bucks a share. and

22:37

it ended the first day like, around two hundred and twenty. So

22:39

it's just nuts, crazy nuts,

22:42

numbers. Rivian, the electric

22:44

truck company, that Amazon as a part

22:46

owner of have went through the same

22:48

thing. When it went public, the first

22:50

day, I think it ended up a little over a

22:52

hundred billion in market cap, which

22:54

is bigger than Toyota Ford

22:56

and GM put together. And this is a

22:58

company that hadn't produced a

23:00

vehicle at the point at that point.

23:02

So to say that it was speculative. It

23:04

was an insult to the word speculative.

23:06

And it has since fallen quite

23:08

a lot from those highs.

23:10

And if you look at studies, by

23:12

and large, most IPOs

23:15

don't do well from the

23:17

highs of their initial public

23:19

offering. They will go on to they can't go on to

23:21

become great companies, you know, Google,

23:23

Facebook, Microsoft. They've all done

23:25

it. But sometimes buying

23:27

when it first comes public is maybe not

23:29

the best idea. Now you flip that

23:31

to specs and specs

23:34

are I'm gonna blank on the what the acronym stands

23:36

for. But in in essence, so you

23:38

may know. Do you know? Special

23:40

purpose acquisition company. There you go.

23:42

Good job. Excellent. Well, I'll weigh better than me. Do I

23:44

weigh extra credit today? You do. You get a

23:47

nice green cone. So We'll

23:50

go to that favorite place down the street from where you live.

23:52

That's such good ice cream. We could we could

23:54

take Jesse and he can get his little dog dog

23:56

ice cream. Perfect. pretty awesome stuff. I

23:58

think I'm wearing to have phones because I didn't want him to

23:59

hear that. I don't want him to talk to

24:02

you. So specs

24:04

were another form of companies

24:06

being able to go public.

24:09

And they avoid a lot of the

24:11

entanglements and a lot of the red

24:13

tape that using an investment

24:15

bank uses to go

24:17

public. And they generally IPO at

24:19

around ten dollars a share, I believe

24:21

it is. So they're generally really,

24:23

really cheap. And it's an easy quick

24:25

way for companies to generate

24:27

liquidity for their businesses by selling their

24:29

shares on the market very quickly. And these were

24:31

the hottest things in the market. You could not

24:33

go on financial Twitter and not see

24:35

gazillion posts about this back and

24:37

that's back and this back and that's back.

24:39

Everybody trying to get in the

24:41

craze. And you could see the

24:43

general tenor of the enthusiasm

24:46

or the I guess, you know, out

24:48

of people just going nuts to

24:50

buy these things. And some of these things

24:52

would skyrocket in value

24:54

on day one. Virgin Galactic was

24:56

one in particular that I remember was there

24:58

was just so much euphoria about those

25:01

nuts. I think it went from ten dollars a share to

25:03

like a hundred dollars a share in

25:05

a day. or something just obscene. And

25:07

the company was is, you know,

25:09

massively unprofitable. And

25:12

it has since fallen to earth.

25:14

All of these companies have fallen. Most of

25:16

them have fallen back to earth quite

25:19

hard. Shamath, who is one of the

25:21

more famous investors in SPACs,

25:23

and he was one of the big ring

25:25

leaders. Again, the next Warren Buffett, was

25:27

going to be the king of

25:29

SPACs. And I read the other day that all the companies

25:31

that he took public, which is quite a few, I wanna

25:33

say, fifteen or sixteen companies during

25:35

that period, he took public.

25:37

Those companies that are now eighty four

25:39

percent down from their highs when

25:41

they went public. And they're all trading

25:43

below every one of the companies are

25:45

trading below their initial offering

25:48

price. And so they've lost, you

25:50

know, huge, huge amounts of money. And the

25:52

reason why it isn't was

25:54

so a little bit gross is

25:56

that people like Chamoth were making

25:59

billions on retail investors

26:01

because people were piling into these things,

26:03

people were going on social media and pumping

26:05

them and pushing them. and then they would

26:07

be the first people to cash out and

26:09

get out of the businesses and make

26:11

hundreds or of millions, if not billions

26:13

of dollars on these investments.

26:15

Meanwhile, us retail investors would be left hand holding

26:17

bag and we would lose our investment or

26:19

all of it. Avoiding these things

26:22

was and still continues to

26:24

be something you definitely want to to

26:26

do. I have nothing else sad.

26:28

Sorry. I took too much. Oh,

26:30

it's all really good advice. I

26:32

mean alright. Well, after I get off my soapbox about

26:35

IPOs and specs, we will go ahead and wrap

26:37

up our conversation for today.

26:40

Thanks everybody for listening. I hope you guys

26:42

enjoyed our discussion. If there's anything

26:44

in here that we talked about that you're a little bit

26:46

unsure of or not

26:48

quite up to snuff on some of the terms that we were

26:50

using. Please check out our website, e

26:52

investing for beginners dot com. We have a

26:54

great search bar at the top, and we have over a

26:56

thousand articles on the website. to

26:58

help you learn more about investing the stock

27:00

market and everything that goes on that we are

27:02

talking about today. So there's it's a great resource

27:04

to help you learn get little bit

27:06

better educated on the things we are talking

27:08

about today. So without any further ado, we'll go ahead

27:10

and sign us off. You guys go out there and invest with the

27:13

margin of safety. Amsterdam to safety.

27:15

Have a great week. We'll talk to y'all next week.

27:17

We hope you

27:17

enjoyed this content. Seven

27:20

steps to under standing the stock

27:22

market shows you precisely how to break

27:24

down the numbers in an

27:26

engaging, unbeatable way

27:28

with real life examples, Get

27:31

access today at stock

27:33

market pdf

27:34

dot com. Until

27:37

next time. Have a prosperous day.

27:40

The information

27:42

contained is for general information and

27:45

educational purposes only. It

27:47

is not intended for a substitute for legal, commercial, and

27:50

or financial advice from a licensed

27:52

professional. Review our full

27:54

disclaimer at e investing for

27:56

beginners dot com.

27:58

Hello, everyone.

27:59

My name is Wesley Labesay from the History of

28:02

the Second World War podcast. Join

28:05

me on a journey to the most destructive

28:07

conflict in human history. A journey that

28:09

will take us not just through the famous campaigns

28:11

and cataclysmic battles also to the

28:14

lesser well known corners of the war that

28:16

touched millions all over the world. As

28:18

we try and answer not just the questions

28:20

of what and where, but

28:22

how, and why? You could find history

28:24

of the second world war on all major

28:26

podcast platforms or at history of the

28:28

second world war dot com.

28:30

Hunchinson Minnesota

28:30

had some problems. For the adults

28:32

of Hutchinson,

28:33

the problem was the teenagers. They kept

28:35

sneaking off at night to empty barns where

28:37

they'd brace yourself, dance,

28:39

Who knew what sort of sin and heavy petting in

28:42

French literature these barndances might lead

28:44

to? No. The adults of

28:46

Hutchinson Minnesota did not approve.

28:48

neither it seemed did the devil.

28:50

One summer night Satan himself suddenly

28:52

appeared in the middle of the dance floor and

28:54

the debauched teams ran in fear.

28:56

He showed up at the next dance too. For a

28:58

few months, it seemed like you couldn't go to a

29:00

late night barn dance in Hutchinson without getting

29:03

chased out by the devil, pitchfork

29:05

and toe. Until one night, when a

29:07

fourteen year old boy had the good sense to shoot

29:09

him in the chest, at which point the devil

29:11

was revealed, Scooby Doo style the bloodier

29:13

to be the local methodist minister. dressed

29:15

in a costume and thrown in from the roof

29:17

by rope and pulley. This

29:19

is the constant, a history of getting things

29:21

wrong. I'm Mark Chrysler. Every

29:23

episode, we look at the accidents, mistakes,

29:25

and bad ideas that helped miss shape

29:27

our world. Find us at constant podcast

29:29

dot com or wherever you get your

29:32

podcasts.