Live Birthday Q&A Stream # 5

0:00 [music] Ah, [music] hey.

0:25 Hey, hey, hey.

0:51 [music] Heat.

0:53 Hey, Heat.

1:32 [music] [music]

1:41 Hey, hey, hey.

1:49 [music] [music]

2:28 Hey, [music] hey, hey.

2:40 Hey, hey, hey.

3:26 Hey.

3:27 Hey.

3:28 Hey.

3:31 Hey, hey, hey.

3:46 [music] Hello everyone.

4:25 [laughter] Can you hear me?

4:26 Okay.

4:28 I swear every year I have to relearn

4:30 this live streaming stuff and [laughter] I'm

4:33 so paranoid because I think last year

4:35 we froze like within two minutes of starting.

4:38 So, let me know in the live chat if you guys can hear me, okay?

4:41 If I'm freezing or if I look good.

4:43 Okay, perfect.

4:44 We're hearing some some good stuff loud and clear.

4:46 Hello.

4:47 Thank you for coming, guys.

4:48 Welcome to the annual happy birthday well birthday live stream Q&A.

4:53 uh kind of the one time a year I I consistently go live.

4:57 Um live streaming is not really a big part of the channel, but it's always fun.

5:02 I I enjoy um doing these once in a while

5:06 and figured the birthday had come once again.

5:08 It was a good time to jump in and and chat about the year,

5:11 chat about what's happened so far and mostly answer questions in the live chat.

5:16 So, if you have any questions, feel free to leave a comment there.

5:20 Um, when I've done this in the evening, I've enjoyed a a beverage.

5:24 But, uh, today, well, an alcoholic beverage, but today it's work day,

5:29 so I have Timmy's uh, coffee,

5:31 dark roast coffee to enjoy with the live stream today.

5:37 Uh, [sighs] now I just want to make sure, God, I'm so paranoid that Yeah.

5:43 Okay.

5:43 Okay, so for some reason my live chat's taking a moment to to update,

5:46 but uh thank you guys for joining.

5:49 Tyler Evans, hey Richard, happy birthday and greetings from Nova Scotia.

5:52 Thank you for joining today.

5:54 I appreciate you being here.

5:55 Happy dude.

5:56 Happy birthday.

5:57 Thank you.

5:57 Happy dude.

5:59 Happy birthday.

6:00 Happy birthday.

6:00 Appreciate it, guys.

6:01 Um yeah, and uh you know, as always,

6:05 um the Q&As's are always tricky because every

6:08 so often you'll have someone asking personal advice.

6:11 I am registered as an adviser, but I don't give advice in the live chat,

6:14 but feel free to ask questions about general economics stuff,

6:18 [clears throat] uh, what's happening in the news lately.

6:20 And sorry, I have a gain over a cold,

6:22 so I apologize if my voice is a little scratchy today,

6:25 but double double or plain and black.

6:28 Uh, right in between single, single, I guess.

6:31 Uh, just one milk, one one sugar.

6:34 The coffee like Timmy's coffee is not I'm a Canadian,

6:39 but Timmy's coffee is not very good.

6:40 But the dark roast is not too bad.

6:42 Um, and I was swinging by, so I figured I'd I'd grab a drink.

6:48 All right.

6:48 Turtle called Call Me Q1.

6:50 When do you release a financial rap single with Patrick Bole?

6:53 Clap coming.

6:55 Uh, yeah.

6:56 You know, I I've heard he's been uh dropping my name a little bit,

7:00 which uh, you know, not cool.

7:02 And maybe I have to address that at some point with a rap battle,

7:04 but I'm going to save that heat until uh until everyone's ready for it, I think.

7:10 Uh, happy birthday from Quebec.

7:12 Thank you very much.

7:13 Gravy salad.

7:15 You don't go to Timmy's for coffee.

7:16 You go there for extremely cheap, decent, warm food.

7:19 That's right.

7:19 I mean, Tim Hortons used to be better.

7:23 They got bought by an international conglomerate.

7:27 Uh well, I don't even know if that's the right

7:30 term because they own mo like [clears throat] fast food chains.

7:32 They own Burger King, too, I think.

7:34 Um and then the quality really went downhill,

7:36 but you get what you pay for, right?

7:38 Like probably one of the cheapest lunches you can find in the area,

7:42 but um you get what you pay for.

7:45 [laughter] I'll leave it at that.

7:47 That should be their slogan.

7:48 I know it's it's like always fresh or whatever,

7:50 but should be uh you get what you pay for.

7:52 [laughter] Uh, Tyler Evans, as a young CFP,

7:56 I just started at a big five bank as a financial planner.

7:59 Can you share any tips for growing your book as a new professional?

8:02 So, I wish I could give more pointed advice.

8:05 Uh, I'm very lucky in my regard because uh, one,

8:10 the company I work for is very easygoing in terms of sales,

8:14 which is very rare in the finance space.

8:16 Sadly, a lot of advisor roles are really sales positions,

8:20 and they really encourage you to kind of bring clients in the door.

8:23 uh the company I work for is is not

8:25 like that which I'm very fortunate with and a lot

8:28 of my job is actually to take over a book

8:31 of business from someone who's looking to slowly exit the the business.

8:34 So um you know and and I haven't really used

8:40 the channel to promote my financial planning in part because of that.

8:44 Um there's already a capacity considerations on that side

8:48 in terms of the the books I'll be taking on.

8:50 Uh but also just I like keeping the two separate, you know.

8:53 Um I like what I do.

8:54 I'm I'm proud of the work I do.

8:56 Like I'm proud of the the investment management we do.

8:59 Uh but I don't feel a need to to really market it or push that stuff.

9:03 Um on the channel, I like having them separate because

9:05 on the channel I can kind of do things the way I want.

9:07 And in my works, uh to their credit, they've been done a very good job

9:11 of of allowing for that independence as best they can.

9:14 Uh there's some compliance considerations,

9:15 but for the most part they're very very hands-off,

9:17 which I'm very lucky because very rare in the finance space.

9:21 Um let me read through some of these.

9:25 It's past 7.

9:28 Sorry, it took me a second.

9:29 7 p.m.

9:30 in South Africa and it's your birthday.

9:31 One drink won't hurt.

9:32 Uh well, it's uh noon here, I think, and I'm doing some work after this.

9:37 But happy birthday.

9:38 Thank you very much.

9:40 [sighs] My friend just became private equity bro.

9:42 Should I be concerned for his mental health in the future?

9:44 Again, I don't have any experience in the private equity, but I mean,

9:47 your guess is as good as mine, but uh you know,

9:50 maybe uh pray for him a little bit.

9:53 Uh did you hear Michael Bur from Big Short is closing his hedge fun?

9:56 I did hear that.

9:56 Scion Cap uh Scion Capital, is that right?

9:59 Um seems to be alluding to some other action he's taking,

10:03 like some other activity he'll be pursuing.

10:05 So, I don't know if it's indicative of bad performance.

10:08 I haven't looked too much into it.

10:10 Uh but um seems more so just some sort

10:14 of transition he's he career transition he's he's going through.

10:19 Uh B2 career CPA or CFP.

10:22 I want to go for my CPA.

10:23 Should I do both?

10:24 [clears throat] I live in New York City.

10:26 Uh two very different designations.

10:27 So it depends what you want to do.

10:29 Um and that will ultimately guide which one's better.

10:33 So the CPA is an accounting designation.

10:36 uh kind of the gold standard in accounting for accountants to have.

10:40 Uh so any accounting work definitely the one to pursue.

10:43 Uh CFP is is certified financial planner.

10:47 Uh and to I don't have my CPA.

10:48 I have my uh CFP uh designation in my CFA charter.

10:53 Um the CFP is strictly financial planning

10:57 for individuals and families and the like.

10:59 So uh it's a kind of a broad overview of a bunch of different topics.

11:03 insurance, taxation, estates, uh, investing,

11:07 and it's intended for one-on-one financial planning advice.

11:11 So, it's just two different realms.

11:12 It depends on on what area you want to go down.

11:15 Um, CPA probably has a broader application in terms

11:18 of the the jobs you can have with a CPA.

11:21 Uh, but very different job, you know, an accountant versus an adviser, right?

11:28 Uh, happy dude.

11:30 Did you read the article in the Financial Times on South Korean retail

11:33 investors causing big swings in US markets getting called the squid game market?

11:36 No, I have not heard that.

11:37 That's interesting though.

11:38 Um, you know, I think with retail investors,

11:42 it's always tricky to um understand what's

11:45 moving the markets because retail investors can start

11:48 a trend and then that can be amplified by momentum based funds and the like.

11:52 So, uh, but interesting.

11:54 No, I hadn't heard about that.

11:55 That's that's something to to look into.

12:00 Um Tyler Evans, absolutely.

12:03 That is a rare thing in the industry.

12:04 Appreciate the answer and happy birthday again.

12:06 Thank you very much.

12:06 Yeah, it's um it's actually near

12:09 impossible for most registered adviserss to have

12:11 a social media presence um without kind of the full backing of their firm.

12:16 most banks will just veto it because a they're such a large operation

12:19 that the idea of kind of compliancing every individual who wants a social

12:23 media presence is it's opening a can of worms I don't they don't

12:26 really want to deal with and b there's a lot of liability because

12:29 [clears throat] as a excuse me um as a registered adviser there's

12:34 liability that comes with what I talk about online so if I were

12:37 to say something that were to be construed as advice someone were to follow

12:41 that and then lose money um there could be a responsib ibility there,

12:46 perhaps even more so than an unregistered individual.

12:48 It's a really gray area because a lot of social media stuff is

12:53 not considered financial advice because it's not

12:56 in part because it's not one-on-one advice.

12:59 So, if you uh go on a YouTube channel and you say, "I like this stock.

13:04 I think everyone should buy this stock."

13:06 That's not generally considered a registered activity,

13:08 like an activity you need to be registered to to carry out.

13:11 Um, and so that's not that doesn't

13:13 fall under the legal definition of financial advice.

13:16 But if I were to go to one person and say you should buy this stock,

13:19 that can be construed as advice.

13:21 So it's it's a weird precedent.

13:22 Um, but the idea is that the one is

13:25 tailoring the advice and that's why it becomes a registered

13:28 activity and the other one is kind of a broad

13:30 dissemination of of information um and your opinion.

13:34 Um, let me read through some of these.

13:38 I got to catch up a little bit.

13:41 Uh, just checking in to say happy birthday

13:42 and thank you for spreading common financial sense to YouTube.

13:45 Thank you very much.

13:45 I appreciate that.

13:46 Chicken Keeper, happy birthday, Richard.

13:47 Do you think the finance industry can be partially replaced by AI?

13:50 Will some CFAs lose their jobs?

13:52 I mean, not at this point.

13:54 um [clears throat] like grunt work maybe,

13:57 but like so at my company we use some AI tools,

14:03 but it's more kind of on the search side of things

14:07 and we just don't trust [laughter] anything that comes out, right?

14:10 Um you search for a figure and they give you a number,

14:14 but that number isn't always what you're looking for.

14:16 Um because you have to remember like these are are prediction models.

14:19 They aren't the the program doesn't understand what you're asking.

14:22 It's just predicting what you're looking for, but it's not always accurate.

14:25 Um, what it is good for is cert is the the program

14:30 will link the articles or the sources of that information.

14:34 So, it is handy in that regard where I

14:35 can look for a very specific figure um and then

14:38 it will link a source and I I almost

14:39 never actually look at what the AI tells me.

14:41 I just look at the source of that of what the AI has found.

14:44 Um, and that helps quite a bit.

14:46 But um definitely uh yeah, I don't think it's going to replace anyone.

14:54 It will augment the industry just like many other industries,

14:56 but replace certainly not with with what we currently have.

15:00 Um the financial planning is different.

15:02 I'm talking more on the analysis side.

15:04 I I could see some interesting tools on the kind of financial planning,

15:07 but uh could the US ever use Bitcoin as a reserve to ease long-term debt?

15:12 and how would the impact that impact the dollar's reserve currency role?

15:16 Um, so good question.

15:20 Uh, if the US uses Bitcoin as a reserve,

15:24 I don't know what the impact on the dollar reserve currency role would be.

15:28 Um, you know, the the dollar as a reserve currency is slowly decreasing.

15:33 the the problem with having Bitcoin as a reserve, people kind of assume, well,

15:36 you put Bitcoin in the reserve and then it's going to, you know,

15:39 just grow in value and that will help all the problems.

15:42 Um the issue is that uh that doesn't always happen.

15:45 We're seeing that today, right?

15:46 Bitcoin has fallen below $100,000.

15:49 Um and central banks don't want that.

15:53 [laughter] Central banks don't want volatility.

15:56 It's the same reason why central banks

15:57 don't hold stocks in their foreign reserves, right?

16:01 Um, stocks have proven a very good long-term investment,

16:04 but that's not the purpose of the reserves, right?

16:07 The purpose of the reserves is to have that liquidity, that cash on hand.

16:10 Some countries use reserves uh to float or uh sorry,

16:14 imp fix the value of their currency, right?

16:16 They'll buy or sell other currencies.

16:18 So, they need that to be very easily

16:20 accessible and not to be fluctuating day-to-day in value.

16:23 Even if Bitcoin increases in price,

16:25 that volatility alone kind of discourages that idea of using

16:29 as a reserve asset because it's not a stable value that it has.

16:33 Um Rusty, thank you for the the super chat.

16:37 Happy birthday, Richard.

16:38 Love the content, man.

16:39 Thank you very much.

16:40 Uh question, I believe you mentioned the tech

16:42 to finance pipeline on last year's stream.

16:44 Do you know how it works?

16:47 Dev who likes finance?

16:48 Yeah.

16:49 So um there's a specific indust so

16:51 it's more on the quantitative side of finance.

16:54 So different investment [clears throat]

16:55 firms will have different investment philosophies.

16:58 Some use uh statisticians and the like to build models.

17:02 And in that realm of of quantitative investing,

17:05 there's a lot of demand for kind of tech engineers and the like to build

17:10 these programs and models for for um investing and trading on on a daily.

17:14 other areas uh not as much of a of a demand.

17:18 But you know, I think so what I I think what

17:21 I probably said last year is that when I was in university,

17:23 I had a finance professor say the best kind of dual um major you can do is

17:28 in IT and and finance because um it

17:32 gives you that competitive edge in the finance industry.

17:35 And I'm I'm sure there's merit to that.

17:36 Uh but I think it is certain certain industries

17:39 are looking a lot more for those those technical skills.

17:42 Uh, big pap 90.

17:44 When is the plain bagel memecoin coming out?

17:46 Uh, I don't know what you're talking about meme coins.

17:49 We only launch utility high utility coins on this channel.

17:52 The bagel bagel booty coin or I don't remember what I called it.

17:57 Um, let me read a couple of these.

18:01 Have you ever tried options trading yourself?

18:05 No, not really.

18:06 Like I've bought and sold options, but not like day trading.

18:10 Um, and in fact, it's usually sell because some way or another

18:14 a client ends up with an option and and we we look to exit,

18:17 but no, not really an area I I pursue.

18:21 Bagel co bagel coin is backed by a bagel reserve in Montreal.

18:24 That's right.

18:24 Yeah.

18:25 Truth.

18:27 Uh, do you think that amount of passive investor skews the market?

18:30 Meaning because of number of people buying broad market indexes,

18:34 it becomes overvalued and it stops being sound investment strategy.

18:39 Uh I actually covered this it would have

18:41 been years ago like probably five years ago there's

18:44 kind of [clears throat] this this growing concern

18:45 of that there was this ETF bubble kind of concern.

18:49 Um it's been a while since I've reviewed that idea

18:52 but I think it ultimately landed on the idea that uh it

18:55 doesn't really matter how many people are holding an investment

18:59 the value of a stock is determined by the at the margin.

19:03 So the buys and sells um of investors that day and that can

19:08 be a very small float to move the price of the stock.

19:10 So you don't need a lot of the um outstanding shares

19:13 of a stock to be changing hands for its price to be impacted.

19:17 So I think and again I haven't reviewed the research but back then sort

19:22 of the conclusion we came to was you know yes if it continues to escalate

19:27 if we see more and more passive flows this could eventually become a thing

19:31 but right now there's ample active trading

19:34 of these stocks to impact their valuations.

19:36 Um, but you know, then there's other

19:38 considerations like the the index inclusion effect, right?

19:42 The idea that when a stock enters the S&P 500 that it's price increases,

19:45 but that might be a self-fulfilling prophecy as well.

19:48 Um, let me see here.

19:50 I think my chat is frozen, but now myself, happy birthday.

19:56 Thank you very much.

19:57 Uh, yep, there we go.

19:59 [laughter] For some reason, updated super quickly all of a sudden.

20:02 Um, let's see.

20:05 The investor Uh, you live in Canada, right?

20:08 Do you speak French?

20:09 Uh, no.

20:10 If not, I recommend you use an allin on duel,

20:14 but seriously, any option on that stock?

20:16 Any opinion on stock?

20:17 Sorry.

20:17 I haven't looked into dual um Dualingo.

20:20 I've used them.

20:21 Um, so my family is actually on the one side French.

20:25 My my mother is is franophhone.

20:27 Uh, it's a big disappointment on [laughter]

20:29 on their side that I'm not fluent in in French,

20:32 but [music] um I'd love to learn French.

20:34 Uh it's it's hard to find the time,

20:36 but if I were to have all the time in the world,

20:37 definitely I'd be I'd be putting more effort into learning French.

20:40 I had used Dualingo for a period of time trying

20:42 to to learn French and then that kind of fell off.

20:45 But uh let's see here.

20:50 Bull Run, how is the Canadian economy growing?

20:52 Uh good question.

20:53 I haven't looked too much into into broad stuff.

20:56 You know what?

20:57 Actually, Mark, our our government just released their budget.

21:02 I know there's a lot of infrastructure spend.

21:03 I still haven't taken the time to go through it,

21:05 which is a kind of a poor reflection on my part, but uh I want to pursue CFA,

21:12 but I've heard it's not something that has career growth or it's

21:16 better to have low ambition for growth and that's it's very saturated.

21:20 Happy birthday and love your content.

21:22 Uh yeah, I mean it depends, right?

21:25 So uh it's definitely a competitive industry finance.

21:29 The CFA I think is if you want to work in finance on the analysis side,

21:34 I think you should pursue a CFA.

21:36 Uh that's kind of my own opinion and I've seen it's almost

21:40 a bit of a bare minimum for a lot of these companies.

21:43 It's a lot of effort though.

21:44 So if you want to be an analyst, it's something worth pursuing.

21:48 But will finance jobs exist in five years?

21:50 Yes.

21:51 Many many happy returns.

21:53 What's your views on 100% allocation to gold?

21:55 Can gold demand be brought down again like 2011 2015?

21:59 Uh it could.

22:00 Uh good question.

22:01 Again I can't give much I won't I don't give much advice

22:04 on these but uh gold again it's um it's a speculative asset.

22:10 I don't mean that in a [laughter] you know

22:12 disparaging way but it is a speculative asset right?

22:15 People buy because of its financial use not because of any other purpose.

22:19 Um, I always like to highlight that palladium is 30 times more rare than gold,

22:25 has many similar properties and even more industrial use.

22:29 So, it has more commodity value and yet it

22:32 trades at like a third of the price of gold.

22:35 So, it's not just the rarity of gold that makes

22:38 it uh have the value price that it does.

22:40 It's it's that social inertia.

22:42 I often use that term but really it's just it's a socialized

22:46 you know gold is just a concept man like the value of gold

22:50 it really is a societal concept right because we are taking this thing

22:53 we're designating this as a financial asset and then demand on that thing

22:57 comes from that designation um padium game to be clear I'm not

23:02 a palladium investor uh I just I like that example to highlight

23:06 because a lot of people they sort of they have this mental

23:08 model of like if something is

23:09 scarce its value will increase mathematically, right?

23:13 And they have this kind of framework that, you know,

23:17 quantity of dollars increases, this thing's scarce,

23:19 therefore it's its price will equal X or increase over time.

23:23 It's a bit more complicated than that because

23:24 you have situations like palladium and gold where

23:26 one's much more rare than the other and it

23:29 trades at a fraction of the price, right?

23:30 That's the only reason I highlight that.

23:33 Uh, have you seen Ben Felix's Rational

23:35 Reminder podcast where they cover passive investing dilemma?

23:37 Market efficiency is not the question.

23:39 What are your thoughts about it?

23:40 I have not seen that although great podcast um

23:43 you know two very very smart guys hosting that.

23:47 Um Michael Jorgensson Jorgensson happy birthday.

23:51 I'm curious to your view on investing

23:53 in [clears throat] perspective to climate change.

23:55 Do you think about it this in your own investments

23:57 or has it changed anything about the way you invest?

24:00 Um so our company is not a a green investing company.

24:05 Uh however, we view climate related stuff as uh a risk

24:12 factor and I know that you know there's kind of the issues

24:16 with ESG definitions and stuff but we do consider

24:19 that in the regard of in the sense that a company that is

24:23 say a high poller um uses forced labor just as a you

24:28 know bad example but uh those are companies that are

24:31 likely to face a lot of regulatory risk over time right

24:34 as regulations crack down and advance and look to eliminate these practices,

24:38 those companies will be hurt.

24:40 So, that's a risk consideration as an investor.

24:42 So, it kind of aligns to to find good companies that treat people

24:45 well and are generally green uh versus kind of high polluters and the like.

24:51 I I definitely wouldn't say it's a a high priority or consideration,

24:56 but it is a consideration.

24:57 It's something we we you know we don't

24:59 want to invest in in diabolic diabolical polluters,

25:03 right, that are are destroying communities because

25:05 that is going to lead to a crackdown.

25:06 That's a risk uh at that of that company's operations.

25:10 That might be heartless.

25:10 That that's not my intent,

25:12 but I just that's my role as a as a portfolio manager, right?

25:15 My role as a portfolio manager is to preserve capital of our investors.

25:19 So, um that's how we view that.

25:23 Uh just dropping in to say I love your videos.

25:25 Thank you very much.

25:25 Keep up the great work.

25:26 Appreciate that.

25:26 Thank you for coming by.

25:28 Uh, [sighs] let's see.

25:32 Bagel or donut or waffle?

25:35 Get out of here with that.

25:37 Happy birthday, Richard.

25:38 Any chance on reviewing financial economic books like you do with films?

25:42 I have covered I I had a old video like five of my favorite investing books.

25:48 I have read more since then, couple more.

25:51 Um, I don't know if I highlighted it in that video,

25:56 but debt the first 5,000 years is a really,

25:59 really good book in terms of if you want

26:01 to jump down the rabbit hole of like what is money?

26:04 Uh, because I actually so I read the Bitcoin Standard.

26:07 Yes, I read that.

26:08 Uh, you know, I got kind of tired of the argument of like,

26:12 oh, you just don't understand.

26:13 Like, so I I I'm not even I'm not a Bitcoin bear.

26:16 I'm not a Bitcoin bear.

26:17 I just think that people are are highlighting

26:20 arguments for Bitcoin that are are not true, right?

26:22 In terms of why it's increasing in value.

26:25 It's not really this fundamental adoption of its of its use case.

26:28 That's fine.

26:29 That's just the reality of it, right?

26:31 It's not a a you know, a political opinion on it.

26:35 But, uh, you know, I a lot of people were highlighting,

26:38 well, you have to read the Bitcoin standard.

26:39 You have to read the Bitcoin standard.

26:40 So, I eventually read it.

26:41 Um, and it was interesting.

26:43 The first part was was interesting.

26:44 I really like the history part of it.

26:46 Um, that was my favorite part of the book.

26:47 You know, they highlight history of money over time and then they kind of dive

26:52 into arguments of why fiat currency is doomed

26:54 to fail and why fiat currency is so bad.

26:56 The problem I have with bitco and I've

26:58 actually so to this question I have debated doing a book on a video sorry

27:03 on the bitcoin standard because I really didn't like it.

27:07 Um the reason being that so much of the the book

27:12 just makes sort of these huge leaps in uh assumptions.

27:18 I guess it makes these massive assumptions

27:19 and these uh assertions with no backing for it.

27:23 So one example is they argue that like fiat currency is

27:28 literally correlated to um like the declining ethics and values of society.

27:35 like the idea that as countries adopt fiat currencies,

27:38 people just become more unethical.

27:40 Like they make that argument that and they

27:42 argue that money is the reason for that thing.

27:44 And there's a quote and I'm not I don't have the exact quote,

27:46 but it's something along the lines of like

27:49 Beethoven's uh you know symphony was created

27:55 in the time of uh you know hard money like this idea of like fixed supply money.

28:03 Miley Cyrus's twerks were invented in the era of fiat currency.

28:07 Like that's the the justification they make

28:09 for like fiat currency being bad for society.

28:13 And it's like okay well that's a bit of a a bit of an oversimplification

28:16 like there's you know sexual liberation of society and things of that sort

28:19 that that might factor in as well but sure you know we can

28:21 assume that they uh that they're money is the only reason for these things.

28:26 So that's what I found difficult about the book.

28:28 Like I think for understanding Bitcoin it does a good job.

28:30 It does a good job of explaining the network and and things like

28:32 that, but those those arguments and and things about

28:36 like society and how societyy's shaped by its money,

28:39 it made too many stretches for for my liking.

28:41 And but that book did lead me to debt the first 5,000 years,

28:45 which uh dives more to the history of money.

28:47 And it's it's by a um a guy who's not an economist.

28:51 He he studies the history of of humans, human civilizations,

28:54 and he just recounts basically how money

28:57 has developed in different societies over time.

28:59 One of the key takeaways for me, sorry I'm going on about this question.

29:02 I'll move on to other questions in a moment.

29:04 But one of the questions uh one of the takeaways for me is he

29:06 argues that uh there's not this linear

29:09 progression of money like many people assume.

29:11 People assume we used to have barter and then that didn't work.

29:14 So we switched to precious metals and then that was tough to transact in.

29:17 So then we switched to coinage and then we switched to fiat currency, right?

29:22 And then people that kind of leads

29:23 to the argument that Bitcoin is the next money.

29:25 What this book argues is that money has historically fluctuated

29:28 between commodity money and uh fiat currencies or or non-backed currencies.

29:34 And that fluctuation back and forth typically revolves around trust in society

29:39 or or trust in well just levels of trust in society, sorry.

29:43 So the higher the level of trust,

29:44 the more fiat currencies prosper and the more civilizations can prosper.

29:49 And the lower the level of trust, the more you see commodity money take over

29:52 because you don't trust who you're transacting with.

29:55 So you rely on commodities to to carry out to maintain that value.

29:59 So it's a really interesting book.

30:00 Really good book.

30:01 Um really quite liked it.

30:03 Uh yeah, sorry I got to catch up on on some of that.

30:07 Um Kenny when uh is coping FOMO on BTC by buying

30:16 a small portion of it makes sense in your point of view?

30:18 I myself own 5% of Bitcoin since I have the feeling feeling

30:22 of fearing missing out on the growth of Bitcoin despite it being irrational.

30:27 Um I mean so that's the thing right is my view is is everyone

30:31 has to make that decision for themselves

30:32 whether they want to hold Bitcoin or not.

30:34 I don't hold it personally.

30:36 Um I know many people that do.

30:39 You have to make that decision but definitely you know if you do hold it

30:42 just recognize that there are risks that are

30:44 often overlooked by a lot of people.

30:46 you have kind of this dangerous movement where it's kind of a religion, right?

30:50 And all downside is sort of irrelevant to to them and they don't highlight that.

30:54 I've seen Bitcoin called a risk-free asset which is ridiculous.

30:58 Um, so as long as you're aware of those arguments and really the point of all

31:01 the videos I've highlighted is just to present

31:03 both side like the the other arguments I guess.

31:06 Um, but yeah, something to in terms of uh

31:10 whether you should buy it over fear of missing out.

31:12 Yeah, it's it's generally I I wouldn't encourage

31:15 buying anything out of fear of missing out,

31:16 but I buy it for for like the reason of you

31:22 have to make the investment thesis for for the buy, right?

31:25 Uh don't buy something just because it's increased in price.

31:28 Buy it because you have an underlying thesis

31:30 and the price is something you're willing to pay for it.

31:34 Uh happy birthday, big dog.

31:38 May you get blessed by all of life's blessings.

31:40 Thank you so much.

31:41 So, it's very sweet.

31:42 Um, take a sip and pull up

31:44 one of these questions about investing growth companies.

31:49 They're usually priced at a premium and rarely get cheap.

31:52 How do you decide when to invest in such

31:54 a company when you really believe in it?

31:55 Yeah, I mean that's been the the challenge for the last few years, right?

31:59 Um, you know, something to consider consider with valuations and growth.

32:04 So, you know, I invest in some growth companies.

32:06 Um, I consider myself like growth at a reasonable price.

32:11 But I think some people misconstrue that as like, you know,

32:14 you have a a cap on the PE you'll pay for a company.

32:17 That's not necessarily the case.

32:19 I think growth investing at a reasonable price,

32:22 you consider how an investment will play out even

32:25 if you see a contraction of the multiple, right?

32:28 So just as an example, and this is, you know,

32:30 this is a crude example, uh, but just stay with me.

32:32 If you have a company that say every year is consistently growing 20%.

32:36 but they're trading at like a 40 times multiple.

32:39 Uh you know the standard value investor might say well 40 times is expensive

32:42 for a stock I don't know if that 28% growth will continue into the future.

32:45 If you have high conviction that that growth will continue um then you can kind

32:50 of calculate out with 20% growth if we saw say that 40 times multiple drop to 20

32:56 times what kind of return could I expect over say 10 years if that 20%

33:01 growth continued and even with that contraction you

33:03 might find that you earn a solid return.

33:05 So, those are things to consider as well, but yeah, definitely a tough area.

33:08 Humphrey Yang, happy birthday.

33:10 Love your videos.

33:10 Thank you very much, Humphrey.

33:11 Thanks for dropping by and saying hi.

33:14 Uh, happy birthday.

33:14 I've been learning from your videos since 2019.

33:16 Thank you for what you do.

33:17 Thank you very much.

33:17 I appreciate that.

33:18 Release the files.

33:19 I don't know what you're talking about.

33:20 [laughter] Wrong wrong social media account.

33:24 Um, in what aspect do you see being in a bubble?

33:27 In theory, couldn't anyone just keep investing in all assets to keep high

33:31 prices to avoid a bubble since the country is at a high time debt?

33:35 All alltime high debt is what I'm guessing.

33:38 Um, good question, man.

33:41 Uh, yeah, I mean, so things to consider, right?

33:45 Uh, on the one hand, we have selloffs like today,

33:48 um, where part of that there's other factors, right?

33:53 It's not just who's all investing.

33:56 uh it's what the liabilities of those investors are.

33:58 Um there's things like uh liquidity in the market.

34:03 So we've seen liquidity in the market decrease quite a bit recently.

34:06 Uh you might have heard of stuff like the repo market kind of drying up.

34:10 Um some kind of mistaken takes on that, but it

34:14 is true that we're seeing liquidity decrease.

34:16 And what that means is that investors

34:18 are either becoming more riskadverse or they're having

34:20 less access to cash um or using it for other methods outside of safer loans.

34:26 So that eventually will feed into other areas if it continues

34:29 and means that investors will likely

34:31 decrease valuations and for higher risk stocks.

34:34 But um yeah, it's a very it's a very high level question.

34:37 I don't know if I can answer it properly,

34:38 but uh Ronald Pado, how do you feel about prediction markets like Kolshi?

34:44 I actually just commented on the on a advisor

34:47 upside newsletter article on this exact topic.

34:50 Um, so they're actually those markets are actually banned in Ontario.

34:55 So where I live in Canada, uh, these prediction markets are banned because

34:58 they don't fall under current legislation.

35:01 So the government just took the step to ban these platforms in the meantime.

35:05 Um, in the US it's controversial because it's federally regulated by the CFTC.

35:12 So, they've made the argument that they're not a gambling website.

35:15 They are a contract kind of derivative site that should fall under the CFTC.

35:21 Uh, which means states don't have the authority

35:24 to to legalize it or criminalize it, I guess.

35:29 Um, and I think it's it's dangerous uh in the sense

35:35 that it's sort of the continuation of the gamification of of investing, right?

35:38 You have people who have very

35:39 valid concerns about investing of traditional finance

35:42 uh the traditional financial industry and they have um [sighs] you know they

35:50 have this distrust of like traditional investing insider trading things like

35:52 that and this kind of pops up as like a a an alternative I guess

35:57 and it's being you know you saw Robin Hood is now offering

36:00 this as an option on their platform right I think that's dangerous because it

36:03 kind of blurs the line between gambling and investing yes you can do

36:06 your research and maybe have an edge on one of these bets pets,

36:09 but the idea of consistently profiting seems very slim.

36:12 Uh, and yeah, I don't know.

36:14 I I don't like it.

36:15 I'm cautious of it.

36:18 Uh, geez, let me go through some of these.

36:21 Sorry, I I told myself I wouldn't spend

36:23 as long answering questions so I could read more comments,

36:25 and here I am falling behind quite a bit.

36:27 Uh, thank you for all your content.

36:29 What are your thoughts on financial literacy education for younger people?

36:32 When to start, what to focus on, does it even matter?

36:35 Yeah, I mean, one of the best things for if you I don't know if

36:38 you're speaking from the perspective of a younger

36:40 person or you have kids or the like, but um definitely something to to you know,

36:44 like the idea of spending and debt management,

36:47 all that stuff is is are very good skills to have very early on, right?

36:51 If you're a teenager,

36:52 those are skills that you can be developing or or just learning about, right?

36:55 Learning about credit scores and things like that.

36:57 Um let's go through some of these Have

37:10 you ever reached out or reached out to Atriarch?

37:12 I think you guys I am somewhat familiar with Atriarch.

37:17 I haven't watched a lot of his content,

37:19 but you you guys are mentioning him a lot in the comments.

37:22 So, I'm guessing we I think he I saw his circular financing video.

37:26 So, he and he's funny.

37:27 Like, the video I saw was was was very funny and pretty good.

37:31 Um, yeah.

37:33 I mean, I'm I'm always I I'm

37:35 always cautious with collaborations because of, you know,

37:39 what's happened in the past [laughter] with some finance creators.

37:43 Uh, but yeah, I mean, I'm I'm always happy to meet other people and and, uh,

37:46 chat with them about potentially collabing.

37:49 Uh, happy birthday.

37:50 I like to consume finance economy related content online.

37:54 What solid, relatively unbiased other creators than yourself can you recommend?

37:57 Uh, for economics, I I've talked about them all the time.

38:01 Uh kind of biased because I've I've spoken to him offline.

38:04 Well, not offline, but off of YouTube.

38:06 Uh but Money Macro, uh it's run by Yuri Shassford.

38:10 He's a I think still a professor in the Netherlands.

38:13 He might be doing YouTube full-time now,

38:14 but he uh has formal education in economics.

38:18 He's taught economics at an institution,

38:21 and he covers a lot of interesting economic topics like

38:24 a lot of the trade war stuff and and things like that.

38:26 So really smart guy and I've actually passed some content by him before.

38:31 Uh not to say he's like, you know, signed off on my content,

38:34 but I've asked him questions and he's been a great resource for me.

38:37 Um so definitely I can I can't recommend him enough.

38:41 Uh happy birthday.

38:43 I have a question.

38:44 What is something you learning too late

38:45 or you wish you learned sooner about investing?

38:49 That's a good question.

38:50 I feel like I learned about investing at a good time.

38:52 Uh I like I started my career in finance, right?

38:55 So right when I started making money, I was learning to invest.

39:00 Uh so I'm very lucky in that regard.

39:02 And even before that, like my parents put me in a GIC and a government

39:06 bond I think I got for my birthday when I was growing up.

39:09 So you know, I had some exposure to investing as a kid,

39:12 but I didn't really fully understand it until I studied it and started working.

39:16 But uh something I regret learning too late.

39:19 I mean like as an analyst, I've I've learned a lot through trial and error.

39:23 some stuff like um I think one thing that's that I've had

39:27 a hard lesson on is uh putting too much faith in historical performance.

39:34 There have been companies that are like dividend aristocrats,

39:38 meaning they they've consistently paid a dividend for a long

39:40 period of time and we've and I've invested

39:43 in them and then you know it pivots 180

39:46 like all of a sudden their dividend gets cut.

39:49 They stop paying a dividend.

39:50 they they fall a good amount of they fall a good amount.

39:54 Um so that's something that that you know I had

39:57 to teach myself again you know you the history of a company

40:00 matters because it shows management skill and things like

40:02 that but you you can't sort of project that into the future

40:06 without justification right um so that's one one example I

40:10 would give uh I've seen some people argue that the reason

40:14 Bitcoin increases in price is because everything else in the world

40:16 isn't fixed in quantity and is getting devalued versus Bitcoin.

40:19 What do you think of that?

40:20 No, money's just not that simple.

40:22 Um, you know, there's and certainly

40:27 there's other stuff that's fixed in quantity.

40:28 What about NFTTS, right?

40:30 Uh, the whole point of an NFT was quite literally

40:33 this is a one-of-a-kind that doesn't inherently give it value.

40:36 Um, so no, it's more complicated than that.

40:39 There's there's things like flows, institutional demand, um momentum traders,

40:48 there there's all these factors that aren't fundamental to the use

40:51 case of Bitcoin that are going to impact its price.

40:53 So, so no, it's not that simple.

40:54 Um that can certainly be part of a thesis around Bitcoin,

40:57 but it's not as simple as Bitcoin's price

40:59 is increasing because everything else is falling in value.

41:04 And also the idea that you know on a given

41:05 day like something would fall like five or 10%.

41:07 Everything else has fallen five or 10% in value is just obviously not not true.

41:12 Um happy birthday Richard.

41:14 I've been watching your videos since 2018.

41:15 Wow.

41:16 Right on a real one.

41:17 I that's when I launched a channel I think.

41:18 So thank you very much for uh for hanging on this whole time.

41:21 Your videos have kept my fear in check especially during the 2022 selloff.

41:25 Thank you.

41:26 Oh, I'm honored.

41:26 Thank you very much.

41:27 I appreciate that.

41:28 Um, let's say that this guy gives horrible advice.

41:34 Be safe and save for 30 years and then be rich.

41:36 If that I want to be rich now.

41:38 Yeah.

41:38 Well, I mean, you're welcome to pursue that.

41:40 Uh, that's okay.

41:41 We take we take negative criticism here, too.

41:44 We we take all the feedback.

41:46 Birthday crash in the market.

41:47 Yeah.

41:47 Sorry, guys.

41:48 [laughter] That's my bad.

41:48 I shouldn't have turned shouldn't have turned another year old.

41:52 Uh, turning 32, by the way, uh, for those those unaware.

41:55 Uh let's see value at least requires utility and scarcity I assume I think

42:02 the question open question on crypto is utility utility is doing a lot of work

42:06 there yeah I mean I don't know much about the broader crypto kind

42:11 of ecosystem I think you have to we have to see a lot more scaling

42:14 of that utility before it it kind of cements its its place but uh

42:18 that certainly could be happening and you know

42:19 like there's a I covered DeFi the idea

42:21 of DeFi a while ago and kind of highlighted some risks and issues but I

42:25 I think the idea of like someone

42:27 launches a successful cryptocurrency is certainly possible.

42:29 Like you if you have a good idea and a good kind of system around it, great.

42:33 Um it's just there's kind of this inflated

42:37 like any new technology like like AI, right?

42:39 You have a lot of people rush into the space and then a few might stick around,

42:43 but unlikely that you see that the area take off like expected.

42:47 Uh Dwayne session, thank you for the the super chat.

42:49 Happy birthday.

42:50 I was considering becoming a financial adviser.

42:51 Then I hear that it can be automated.

42:54 [clears throat] Is financial advisory still a growing field?

42:57 That I don't know high level if it's a growing field.

42:59 I would say that um even at the company I work

43:01 for, there's still plenty of demand for for the stuff we do.

43:06 I think people are going to have a hard time replacing stuff.

43:08 Like frankly, this argument of advisor being

43:10 replaced has been around well before AI.

43:13 Like since I've I've started in my career,

43:14 I've heard about advisors being replaced.

43:17 And I think there's definitely been a trend towards DIY investing.

43:20 So, it's definitely been an impact, but not for the reason people are saying,

43:23 which is people are saying, well,

43:24 advisors can just be replaced with a a program.

43:26 Well, they they were able to be replaced by a program,

43:28 if you're being quite literal, for for a decade at this point, right?

43:33 Um, I think the reason they haven't is that people still

43:36 value having human and and human input on on their situation, right?

43:40 Um, Kenny, thank you for the for the super chat.

43:45 Appreciate it.

43:46 Uh, any advice about Irish doicile ETFs for non

43:51 US residents wanting to invest in US index funds?

43:54 No, sorry.

43:55 I should read these before I click them [laughter] just

43:58 because I don't want to disappoint people highlight their question.

44:00 Just say, "Oh, sorry." Um, Patrick Bole is a great finance YouTuber, too.

44:04 Yep.

44:05 I think he's great.

44:06 Patrick's, you know, for me, it's it's,

44:08 this is not to say that finance channels need

44:10 to have that professional background to to put out good content.

44:14 Um, I think a lot of great content comes from people who are

44:16 just sharing their experience and and are

44:18 honest about it being their experience.

44:19 But, um, you know, because I work in the industry,

44:23 I don't usually watch that content.

44:24 I look for people who have more

44:26 experience or or different education than I have.

44:28 And so, Patrick Bole, Money,

44:30 and Macro are two examples of of channels I really think do a good job.

44:34 Um, let's take a look at some more of these.

44:41 He's a great hip-hop YouTuber.

44:42 I've heard.

44:42 I've heard.

44:44 Uh, happy birthday.

44:46 I've invested for about three years now.

44:47 Congratulations on getting started.

44:49 Why do so many investors chase complicated products and strategies when

44:52 just buying and holding a global index fund is so easy?

44:56 You know, that's so speaking of of YouTubers,

45:00 Ben Felix has really been having it with the the covered call ETF community.

45:04 I've actually chatted with him about this topic, but yeah, you know,

45:09 the unfortunate like we're at a point where we I

45:12 think we have more ETFs than we have individual stocks.

45:16 So, there are wider array of strategies for investing in stocks,

45:20 which I guess makes sense, than the stocks themselves that you can buy in.

45:23 Um, and the issue is that companies are just

45:30 financial engineering different augmentations to attract more buyers, right?

45:33 Because from the ETF company's perspective, yes,

45:36 index investing might have been how they got popular,

45:39 but they want to cast as broad of a net

45:41 as they can to capture any sort of investor out there.

45:43 Because if there's an investor out there who says,

45:45 "I want to buy the S&P 500, but without this company,

45:48 this company, this company,

45:49 then and the if they find an ETF that has that exact combination, great.

45:53 You know, they they've bought one more investor." And the idea

45:56 like you know yes ETFs are expensive to run

45:58 but if you get enough demand the marginal cost

46:00 of launching a new ETF to get more investors is

46:03 is it's great payoff right um so you have

46:06 to be careful because yeah companies are the a good

46:10 investment strategy doesn't have to be complicated but companies are

46:13 profiting by continually launching more and more complicated uh strategies.

46:19 Uh Julian Julian Joseph thank you for the super chat.

46:23 I appreciate that.

46:25 Uh, I'm going to stay on for another What time is it?

46:28 Uh, 13 minutes or so, kind of around 1 PM.

46:30 Call it call it quits and, uh, get back to working.

46:34 [laughter] But, uh, no, I appreciate you guys coming by for again,

46:38 I don't think I'll live stream more often than than once a year.

46:41 This is kind of a good amount, uh, to to, uh, chat with people.

46:45 But, and I apologize if if I don't get to your questions.

46:48 I had told myself this year I'd have someone moderate my my chat so I could

46:51 actually get to more people and have them

46:54 keep me on top of get reading more comments,

46:56 but alas, uh, do not get organized this time.

47:01 Uh, take a look through some of these.

47:03 Hey, birthday.

47:03 Tomorrow's my birthday, too.

47:04 Hey, right on.

47:05 Congratulations.

47:07 I don't know why I said congratulations on getting older, buddy.

47:10 [laughter] I'm right there with you.

47:11 Happy birthday, Richard.

47:12 Thank you very much.

47:13 Appreciate that.

47:14 Um, let's see here.

47:20 Happy birthday to channel.

47:21 Uh, not quite the channel.

47:22 This is this is personal birthday.

47:23 I think my channel's birthday is in August.

47:25 Um, I think we're eight years old.

47:27 Eight or nine years old at this point.

47:30 I'm older than eight or nine.

47:32 Uh, just to be clear.

47:33 Hi, Richard.

47:34 I love your videos.

47:35 Thank you for the super chat, Brian.

47:36 Uh, do you have any advice for other aspiring finance YouTubers?

47:40 Ah, man.

47:41 Uh, I get this question a lot and I wish I was more I

47:45 wish I knew what I was doing more so I could give good advice.

47:48 A lot of it has been trial and error.

47:50 I hate looking at my older um Oh, sorry, Julian.

47:56 I did not see I highlighted your question,

47:58 but there was no no uh there's no text there.

48:01 But if you comment again uh just a normal chat, you don't have to super chat.

48:04 I will try and highlight it and answer your question.

48:06 So, I'll look for for your comment and I'll I'll try to get to it.

48:09 I don't know why I don't know why that didn't show up.

48:10 Sorry about that.

48:11 Um, but I'll look for your name.

48:14 Uh, yeah.

48:16 Advice.

48:17 I don't know.

48:18 Just post like look out there, see what what there is,

48:22 see how you can do things differently.

48:24 But if you add value in the space,

48:25 I like I always encourage people to go for it.

48:27 Like I know a lot of professionals who um have thought about entering the space.

48:31 I always highlight that you have to be careful

48:33 going into it with like a marketing first mindset.

48:35 Like a lot of companies are like,

48:36 "How do we get into the social media space?" And the thing I always

48:39 I usually highlight is that look like I I don't think it works that way.

48:45 Like I don't think you can build trust by starting

48:47 off as a as a marketing uh you know strategy effectively.

48:51 Like some companies have done it successfully,

48:53 but it's a really hard sell to be like I'm a finance company.

48:56 I'm going to try and build trust with people

48:58 and advertise my service while I'm doing it.

49:01 Um, you know, I think go into it, add value to your audience,

49:05 and like that's the best you can do, right?

49:08 Uh, it doesn't have to be amazing quality.

49:10 One thing I would say is lighting.

49:12 Uh, technically, lighting is such an important thing that I learned.

49:15 Like you can have the best camera and your video

49:17 will look like crap if you don't have good lighting.

49:18 So, definitely invest in lighting if you want to do like a full production,

49:21 but you don't need like I had a very cheap setup.

49:24 My setup was like under $200 or $300 when I started.

49:27 you can tell [laughter] but you know that's how I got started right

49:31 okay there's your question given that AI is now framed as a national security

49:35 priority does that extend to life the lifespan of the bubble since US can't

49:39 realistically afford to lose the AI race

49:41 yeah good question I mean government intervention

49:43 will certainly impact the area right like

49:46 if the government continues to to support

49:48 the area there's a whole bailout comment that came out right as I

49:52 was putting out my video and then you know they kind of walked back

49:55 those statements so I didn't bother like rush out a quick update for that.

49:59 But um yeah, I mean certainly the government can

50:02 kind of prop up any industry and that can

50:04 cause problems but you know ultimately the government

50:07 also doesn't want to make bad investments, right?

50:11 Because that also drags on their own finances.

50:13 So government finances are different than household finances but they matter.

50:17 Um and you know if you put too much

50:21 money into the system that's inflation and things like that.

50:24 Good audio is the most important thing to make good YouTube videos.

50:27 Audio is important, too.

50:28 Um, definitely invest in a a I mean, again,

50:32 I didn't have a very good mic for like

50:34 my mic was like 30 bucks for the longest time.

50:37 You can tell [laughter] again, you can tell.

50:39 You can tell as I've updated my stuff and I've learned what I'm doing.

50:42 Um, because it's all trial and error on my part.

50:45 But, uh, yeah, I mean, good microphone you can get for not too much money.

50:50 just do a bit of research and uh good lighting like not

50:55 expensive lighting but just make sure that you have proper you know there's

50:58 kind of the three-way light system that people have of like a key

51:01 light I think filler light and uh background light or I don't know

51:05 what's properly called but I agree that lighting is an easy way

51:09 to make it look very professional even with an iPhone that's right I

51:12 mean iPhone cameras have have like are great at this point right um

51:17 [laughter] Marco Rubio do you own

51:19 any alternative investments like Pokemon or collectibles.

51:22 Thanks for your question, Marco Rubio.

51:23 Um, [laughter] uh, no, not as investments.

51:28 Like I might have a collectible somewhere, but not not like as an investment.

51:32 No.

51:33 Is S&P 500 buy and hold still the best strategy and will it be the future?

51:38 Uh, I don't know.

51:41 Maybe.

51:42 Uh, it's tricky because of the concentration, right?

51:44 Like a 10 companies make up like 40% of the index now.

51:49 I don't invest just in the S&P 500.

51:52 Uh it's been a great strategy.

51:54 I think index investing is still a good strategy for a lot of people,

51:58 [clears throat] but you have to be you have

51:59 to be aware of those risks and you have to be aware of of the type of call

52:03 you're making when you buy the S&P 500, right?

52:05 I think people unfortunately they buy the S&P

52:08 500 and they sort of wipe their hands clean.

52:09 They're like, I didn't have to make an investment decision.

52:11 I just bought the market.

52:13 But the S&P 500 is really a bet on US large cap stocks, right?

52:18 That might work out, but that is an active investment you are making,

52:22 an active bet you're making.

52:24 So, you have to kind of own that, right?

52:25 You can't just ignore it and pretend

52:27 that you're doing a perfect passive investing.

52:29 Now, the US market is representative of a good chunk of the global stock market.

52:34 I think they're over half the global stock market in terms of market value.

52:37 So, you know, you are

52:38 and and there's global companies with diversified operations,

52:41 but just something to consider, right?

52:42 I think some people buy the S&P 500 to shut off and not think about it,

52:46 but you have to own the decision that you're making.

52:49 Uh, happy birthday, man.

52:51 What do you think about the CFA and the investment banking sector?

52:53 Don't know much about the investment banking sector,

52:54 but I imagine CFA is still worthwhile in that area.

52:58 Hi, hey, hi Plane.

52:59 What do you think of the capital assets pricing model?

53:02 Munger used to call it stupid.

53:03 Yeah, I mean, it's it's it's dated.

53:05 Um, you know, it's good from a theoretical standpoint,

53:08 but you don't see it used much in practical terms.

53:10 I've used it for uh calculating expected returns.

53:15 Sorry, uh equity the cost of equity in uh cash flow models before.

53:21 So I've used kappam before for equity.

53:25 I'm getting lost in my terminology.

53:27 For cash discounted cash flow models,

53:29 I've used kappam as part of the calculation,

53:32 but it's not something that like we we you know for expected

53:34 returns or things like that that you would use too much.

53:37 Uh Mario, thank you for the super chat.

53:39 For young investor already using factor tilts and leverage,

53:42 what are the next strategies to consider

53:44 for taking on more long-term compensated risk for young?

53:49 [sighs and gasps] I mean, if you're already using factor tilts and leverage,

53:52 I don't know what else there is.

53:53 Like, um I think you have to be careful not to overengineer investing, right?

53:57 Um it's okay that you just uh turn up the input on Oh,

54:00 I'm just getting a comment here.

54:01 African crypto warlord.

54:03 Turn up the input on your mic.

54:04 The LED part on your mic.

54:07 Is this better?

54:08 Sorry, have I been quiet this whole time?

54:10 You guys said I was crystal clear.

54:11 God, we're almost done and I'm just fixing that.

54:14 Thank you for for the comment.

54:16 Um, yeah, Kappam is used for whack in valuations.

54:19 That that's what I was trying to get to.

54:21 Uh, thank you for putting it in words.

54:23 Um, happy birthday.

54:26 Oh, yay.

54:27 Happy birthday.

54:27 I watched all your videos.

54:28 Much better, guys.

54:29 Ah, come on.

54:30 [laughter] Damn it.

54:32 I I'm at the end of the live stream and I I relied on you guys.

54:35 Ah yikes.

54:36 Okay.

54:37 Well, maybe next year.

54:39 Maybe next year I'll learn how to do it properly.

54:42 Okay.

54:42 Well, thank you for joining anyway.

54:44 I got five more minutes.

54:45 I'll ask a few or answer a few more questions.

54:47 But how do you think demographic pressure people getting older

54:49 and AI will affect jobs in financing of doing accounting myself?

54:52 Maybe.

54:52 So, I want to know if it might have negatives.

54:56 I mean, like I I would think that would increase the demand for finance.

55:00 Like you typically see people engage with adviserss as they get older.

55:04 Um, AI, tougher to say,

55:07 but I don't think it'll have as pronounced of an impact on finance.

55:10 Maybe kind of the more of the grunt work like I said,

55:12 but uh, how to hedge against tech and AI overweighted ETFs.

55:18 Uh, you can look into things.

55:19 It's not again financial advice, but there are alternatives like, uh,

55:23 equal weight ETFs where you put less weight on large

55:27 cap stocks and more weight on small or medium cap stocks.

55:30 Um, more international, right?

55:31 Other countries don't have as much weight as the US,

55:34 but again, that's a decision you have to make.

55:37 Uh, Richard, can someone with a mental disability

55:40 possibly study any of the CFP, CFA, etc.?

55:43 I mean, it depends on what it is, right?

55:45 Um, I like finance overall and you and Ben Felix,

55:49 I also had the finance bachelors.

55:51 I mean, if you did the finance bachelors, I don't see why not,

55:53 but I, you know, I don't know your situation.

55:56 How do I tell if funds uh the minor?

55:58 Thank you for the Thank you for the super chat.

56:00 How do I tell if a if a fund's fees are high when FX hedging is included?

56:05 My Thai bank offers an IBV feeder with FX hedge at 1.2% ABR.

56:11 That's pretty expensive.

56:12 Uh but I don't know what what's normal, right, for for Thailand.

56:16 Um that's that's expensive though.

56:19 Usually like in the US where you know natur even naturally

56:24 it's a more I would expect a larger market financial market sorry.

56:29 Um, it's, you know, 10 20 basis points sometimes that you see because of FX.

56:36 I I actually don't even know what the figure would be,

56:37 but it's not it's not that much.

56:38 That's that's a huge fee.

56:40 Uh, but that comes with currency risk maybe as well.

56:44 Uh, Alex Wong, hi Richard, this is not a question,

56:47 but I want to thank you for bringing all this content into the YouTube space.

56:50 Thank you very much.

56:51 I appreciate that.

56:52 Um, how are you so rich, handsome, and successful?

56:57 Uh maybe one of those is right, [laughter] but I appreciate that.

57:04 Um I'll let you guys guess which one.

57:07 If you could do a bachelor's, you'll have no problem with Yeah,

57:10 that that was my thought in terms of the the mental disability question.

57:14 I think if you can do a a bachelor's,

57:15 I don't see why you couldn't do one of those.

57:17 CFA is definitely tougher than the CFP, and I haven't done the CPA,

57:20 but um yeah, I mean, if you can do a bachelor's, I don't see why not.

57:25 Uh, two more questions and then I'll have to sign off.

57:29 But, hi Richard.

57:30 Any tips for someone trying to break into equity research?

57:32 How difficult is it for someone with limited professional finance experience?

57:35 It can be tough.

57:36 Um, one things one thing I I talk to a lot

57:38 of students who are trying to enter the finance industry.

57:41 Um, I go to a lot of like my old

57:42 universities like networking events and stuff like that with students.

57:46 One thing I always highlight is if you want to do research,

57:49 if it's a passion of yours and you want to kind of get your foot in the door,

57:53 look into doing research yourself, right, in your spare time.

57:57 Um, if you can put together a research report for a stock you like,

58:02 then you have something you can bring forward as an example of your work.

58:05 It doesn't have to even be that good of a of a recommendation, right?

58:08 Um, I got hired on a bad recommendation on JP Morgan.

58:11 I think I said to sell the stock based on like you know I

58:13 I did a very fine calculation and it was like within 10% of the stock

58:16 price and I was like well it's over that so uh we we we were

58:20 going to sell it and then of course JP Morgan has been a huge winner.

58:24 Um but the point was I was able to so show a process

58:27 and my company kind of acknowledged well we can teach him how to invest

58:30 right we can teach him how to research he's got the the technical

58:33 skills we can teach kind of the the philosophy and stuff like that.

58:37 Um, and what I would suggest is there are

58:40 student funds that you can that will publish their research

58:43 publicly and you can kind of take a stock

58:45 and base it off of one of the published research reports.

58:48 Um, that will help kind of uh you can

58:54 you can sorry I'm losing my train of thought.

58:57 Uh, you don't want to copy the research they're doing.

59:00 like you don't want to do the same

59:01 company and just copy and paste what they did,

59:02 but you can take the framework of what they've done

59:04 for researching the stock and apply it to a different company.

59:07 Um, something I I definitely suggest.

59:08 It's a lot of work, but uh, Breto, thank you for the super chat.

59:13 Variable or fixed mortgage?

59:14 I do fixed.

59:15 Some people would argue variable.

59:17 So, in Canada, everything's variable.

59:19 [laughter] Effectively, every five years at least,

59:22 you have to uh, update your rate on your mortgage.

59:25 Companies don't lend for a full 30 years like they do in the US.

59:29 Uh but um I do fix just because for a budgeting standpoint, it's less risk.

59:33 Yes, you can get a discount if you do variable,

59:35 but for me, I just I like the more consistent budgeting.

59:38 That's personal choice.

59:39 It's not even I would say like explicitly

59:42 the advice I'd give to someone based on their situation.

59:44 But okay, last thing.

59:46 Uh that that was I'll I'll give

59:48 that an extra question because that was a super chat.

59:50 But um let's see.

59:55 Uh, [sighs] I'm going to pick one more question here.

59:59 Got to pick one more.

1:00:00 It's a lot of pressure.

1:00:04 Smash your faces on the like button.

1:00:05 Thank you, Af African crypto warlord.

1:00:07 That's definitely That's my advice.

1:00:10 Um, oh, I I [laughter] went to click another one and that one popped up.

1:00:14 I'll I'll do this one and one more.

1:00:16 What impact do you think demographics and aging

1:00:17 population will have on returns in the coming decades?

1:00:21 Good question, man.

1:00:22 [laughter] Um, like demographics matter.

1:00:24 There's there's a good there's a Canadian economist I think he who

1:00:27 is famously quoted saying demographics explain

1:00:29 twothirds of everything I think was

1:00:31 the quote um I don't know enough about it in terms of you

1:00:36 know it'll it'll impact different areas so you know you have people

1:00:40 retiring where is their money invested but I don't have the the highle

1:00:44 answer there sorry uh this was the one I was going

1:00:46 to answer and then I'm I'm done for the live chat uh

1:00:50 Ben how confident were you after

1:00:52 you graduated university with your finance degree.

1:00:54 I am a fourth year and I am and am not too confident in my knowledge of finance.

1:00:58 Did you do any extra research while in school?

1:01:00 I yeah you know I can I can empathize with that.

1:01:03 Um I had a somewhat similar experience where you know I did

1:01:08 a lot of research in university like you research companies but then [sighs]

1:01:12 like in terms of having the whole comprehensive view of like investment research

1:01:16 it just wasn't there when I graduated and I you know I was

1:01:20 like I have some technical skills but like I don't know like

1:01:23 I can look at a stock but and I can tell you what

1:01:25 the different things say but like I don't know how to make the ultimate

1:01:27 judgment of like yes this is a buy or no this is not.

1:01:31 Um so working in the industry definitely filled those gaps.

1:01:35 So I started at one finance company in the back office but while

1:01:37 I was there I [clears throat] spoke a lot with the finance department um

1:01:42 and eventually worked into more on the investing side of the business and that's

1:01:45 where I really learned the most of my investing knowledge and stuff like that.

1:01:49 So it is unfortunate that the technical skills even the CFA is to the same

1:01:52 extent right like the CFA teaches technical

1:01:54 skills uh but it'll say like these are

1:01:57 all the things but it's up to you to prioritize which ones matter and which

1:02:00 ones don't right so um it is it is a tough call but that's

1:02:03 where I'll stop it for today thank you everyone for for coming for the annual

1:02:06 live stream I'm sorry the microphone was quiet for the first five sixth

1:02:11 of this video but I appreciate you guys uh toughing through it I will try

1:02:15 to make sure next year is better uh every year we're learning right uh don't Oh,

1:02:19 I think we're our quality is probably staying a bit flat,

1:02:22 but I appreciate you guys popping by and saying hi.

1:02:24 Uh, a few more videos planned for the rest of the year.

1:02:26 I will probably take a break in January as I typically do,

1:02:30 but uh kind of regular once every two weeks, we'll do a a video on the channel.

1:02:34 And yeah, I'll leave it there.

1:02:35 Happy holidays, guys, as they come up.

1:02:37 I know not quite in that season yet, but uh since we're live,

1:02:40 I'll say I hope you guys have a good holiday season in December.

1:02:44 And uh yeah, we'll see you in the next video.

1:02:46 Until then, stay safe out there,