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1:26

slash Yeah,

1:29

sure thing. Hey, you sold that car

1:31

yet? Yeah, sold it to Carvana. Oh,

1:33

I thought you were selling to that guy.

1:35

The guy who wanted to pay me in

1:37

foreign currency, no interest over 36

1:40

months? Yeah, no. Carvana gave me

1:42

an offer in minutes, picked it

1:44

up, and paid me on the

1:46

spot. It was so convenient. Just

1:48

like that. Yeah? No hassle. None.

1:50

That is super convenient. Sell your

1:53

car to Carvana and swap hassle

1:55

for convenience. Pick up these may

1:58

apply. because it

2:00

your dreams and getting

2:02

rich quick. They actually

2:04

got me into reading

2:06

stats for anything. You're

2:08

tuned in to the

2:11

Investing for Beginners podcast.

2:13

Led by Andrew Sather

2:15

and Dave Ahern. Step-by-step

2:18

premium investing guidance for beginners. Your path

2:20

to financial freedom starts now. Start now.

2:22

Welcome to the Investing for Beginners podcast.

2:24

Today we're going to do a bird's

2:26

eye view. We're going to take a

2:29

look at Uber Technologies or Uber. And

2:31

this is a company, frankly, I don't

2:33

know that much about, and Andrew recently

2:35

looked into a little bit. We had

2:38

a challenge in our value spotlight community

2:40

to take a look at companies that

2:42

were outside of our circle of competence

2:44

and see if we could build a

2:46

little bit. And this is one of

2:49

the companies that Andrew looked into. So

2:51

I thought it would be kind of

2:53

fun for us to talk for us

2:55

to talk about And since I just

2:58

got back from Brazil and used it

3:00

a whole bunch down there, I thought

3:02

it was kind of appropriate, at least

3:04

fresh in my mind, is to find

3:06

out what's what with Uber. So maybe

3:08

we'll start with, what do they do? What

3:10

are you? Yeah, pretty simple. Download

3:12

the app, get hooked up with a

3:15

random driver who also has the app,

3:17

he drives around and you pay and

3:19

go on your way. How was the

3:21

Uber experience over there in Brazil? It

3:23

was a seamless that is it is

3:25

it is here. It was kind of

3:27

interesting and in two of the bigger

3:30

cities that we were in Sao Paulo

3:32

and Cordichiba. They actually for safety reasons,

3:34

they instituted a pin. So when you

3:36

would call up a ride and they

3:38

would send you somebody, they would send you

3:40

a pin. And so to make sure you

3:43

could verify each other, they would ask me

3:45

for the pin and then I would have

3:47

to watch them enter it in and then

3:49

that was like, okay, we're verified that this

3:51

is a. Right driver so it felt very safe

3:54

just like it would here in the United

3:56

States So that was kind of cool. Well

3:58

as you were taking the ubers Did you

4:00

think like, oh, this might be interesting

4:02

to look as an investment? Yeah, for

4:04

sure, because it seemed like a few

4:07

of the people that we talked that

4:09

were driving us, we talked to mostly

4:11

through my life, because my Portuguese is

4:13

not the best. We talked a little

4:15

bit about like their experience with it

4:17

and whatnot, and they were very bullish

4:19

on the company, and they really liked

4:22

working for Uber. That was. Two of

4:24

the two people we talked to, that's

4:26

what they did for a living, and

4:28

they said they made a pretty good

4:30

living doing it. It was interesting.

4:32

After experiencing it, I frankly

4:35

have not used it much here in

4:37

the United States, but I have used

4:39

it in the two times that I've

4:42

gone to. to Brazil and it's

4:44

been very very very helpful because renting

4:46

a car there can be expensive and

4:48

driving especially in a place like

4:50

Sao Paulo is like taking your life

4:53

in your hand so I found it

4:55

interesting and it certainly intrigued me

4:57

enough to think about would this be

4:59

something that I would buy or not? You

5:02

mentioned the Circle of Competence

5:04

Challenge so if listeners out there

5:06

aren't subscribed they might not know

5:08

I haven't yet to this point.

5:10

recommended a stock that

5:12

actively dilutes shares, at least does

5:15

so on a very regular basis,

5:17

and is in that kind of

5:19

early growth stage of their life

5:21

cycle. Uber very much so, they're

5:23

at this inflection point where

5:26

they're reaching profitability

5:28

and they're basically, from

5:30

a financial perspective, they

5:32

are crossing the line from

5:35

unprofitability to profitability and burning

5:37

cash flow to generating cash

5:39

flow. At the same time,

5:42

they're still raising capital when

5:44

I looked at them. So they're

5:46

still in that growthy growth mode

5:48

where they're raising capital. It's an

5:50

interesting time in their life cycle

5:53

for sure, which was what drew me to

5:55

them as the challenge because I was

5:57

like, all right, I'm gonna try to

5:59

look at them. leaders jump outside my

6:01

circle comments and try to

6:03

look at those. And so

6:05

strictly from a numbers perspective,

6:07

company looks really good. Revenues,

6:10

like we said, the margins are

6:12

expanding so now all of a

6:14

sudden they have all these profits

6:16

on sheets, super, super strong, return

6:18

on capital. I looked them up

6:21

on new constructs of a

6:23

membership with them and they

6:25

calculate ROIC with adjustments so

6:27

it's not a distorted, suppressed

6:29

or overstated ROIC, it's just

6:32

crossed the whack, which means

6:34

they're creating value now instead

6:36

of destroying value with their

6:38

growth. So a lot of

6:40

good numbers, and from a

6:43

numbers perspective, it looks, I don't

6:45

know how to say, it just looks

6:47

really good. Yeah, it really does.

6:49

It's interesting too, because looking, I

6:51

mentioned that to you when we

6:54

were looking at the numbers before

6:56

we jumped on here, like it

6:58

looks. It looks good. It looks really good.

7:00

And, you know, I, some of my view

7:03

is jaded a little bit. I watched,

7:05

there was a series on Netflix

7:07

called Super Pump that they talked

7:09

about the early days of the

7:11

company with Travis, when Travis Callanick

7:13

was running the business. He's no

7:15

longer with the company anymore. He

7:17

was the one that kind of

7:19

got it off his feet and

7:21

kept it running when it was

7:23

going through hard times. And it's

7:25

a very interesting. documentary.

7:28

It's not really documentary.

7:30

It's kind of a, I don't know,

7:32

a biopic or something, but there

7:34

were some negative things that were

7:36

taking place during that. And so

7:39

I had that kind of a

7:41

little bit jaded look at at

7:43

the company, but then I heard

7:45

an interview with the current CEO,

7:47

and I really liked him. The

7:49

funny was very sharp, very well

7:52

spoken, clear-headed. And I thought he

7:54

had some good ideas for visions

7:56

of how the company could continue

7:58

to expand and grow. I wasn't

8:00

super up on the company and it's

8:03

always been kind of on a periphery

8:05

for me. I know that our friend

8:07

Vitali Katz and Elsa and Nelson invested

8:10

in them early on and has been

8:12

a big supporter of Uber way before

8:14

I even ever considered investing in it.

8:17

So it's interesting to see the company

8:19

kind of mature like come from a

8:21

child to now it's becoming an adult

8:24

and so that's interesting to observe. But

8:26

I guess what are your thoughts on

8:28

the whole. diluting part

8:31

of it? Like how does that

8:33

enter into your equation? I guess

8:35

it never got far enough along

8:37

where I ever felt like I

8:40

was entering that into the equation

8:42

for any of the companies I

8:44

looked at that were diluters. Kind

8:46

of along that note, you know,

8:49

when you think of dilution, you

8:51

think of capital allocation, what is

8:53

the company doing, what is management

8:55

doing with the money? One of

8:58

the things, if this is a

9:00

bird's having, we're talking about... trying

9:02

to look at companies from a

9:05

big picture. I like to use

9:07

quickfs.net and look at cash flow

9:09

statement. So it shows you like

9:11

a 10 year period of all

9:14

the different numbers. And so just

9:16

scanning through each column, I noticed

9:18

that, oh wow, $5 billion went

9:20

to investments in the last 12

9:23

months. So looking at the cash

9:25

flow statement, then you go on

9:27

the 10K, the annual report, one

9:29

of the things that I thought

9:32

was interesting, they have these non-markable

9:34

equity securities and marketable equity securities.

9:36

So they have 2.2 billion in

9:39

DD, which is, oh, the right

9:41

here in China, they have 1.8

9:43

billion in a company called Grab,

9:45

1.4 billion in a company called

9:48

Aurora. It was like two years

9:50

ago Something like that they took

9:52

like a seven billion dollar loss

9:54

unrealized on their investments in the

9:57

last 12 months they've made cash

9:59

from operations around 6.2 billion stock-based

10:01

compensation 1.8. So that 7 billion

10:03

was a pretty high, I guess,

10:06

mark down in value. It'll be

10:08

interesting to see is that something

10:10

that continues? Are they going to

10:13

be very aggressive in buying equity

10:15

securities and almost become like capital

10:17

allocators in that way versus expanding

10:19

Uber's business? I don't know enough

10:22

about the CEO or the company

10:24

to really make a statement one

10:26

way or the other, but that's

10:28

something that jumps out to me

10:31

that would say, okay, the numbers

10:33

look great, maybe I may or

10:35

may not like the company, but

10:37

what's going to be the cap

10:40

allocation story, particularly if stock-based compensation

10:42

so high and the dilution so

10:44

high. Have you, I have, I

10:47

frankly have never looked at a

10:49

company that's made kind of this

10:51

transition from. cash burner to cash

10:53

generator and I'm wondering I'm curious

10:56

why they would keep diluting when

10:58

they're getting into the whole profitability

11:00

thing that that's that's a question

11:02

that pops into my head. We're

11:05

not just looking at them but

11:07

other companies as they go through

11:09

the cycle like when does that

11:11

when does one turn on and

11:14

the other one turn off or

11:16

do some companies just continue to

11:18

do both? Right. Same here as

11:21

a complete outsider kind of opinion.

11:23

I don't look at companies like

11:25

this hardly at all falls outside

11:27

my circle competence, but you would

11:30

just wonder if the stock base

11:32

compensation is so high, and if

11:34

you haven't announced a buyback plan,

11:36

do you just naturally get that

11:39

dilution from stock base compensation? I

11:41

don't know how hard is it

11:43

to reverse stock base compensation? I

11:45

guess a million different ways you

11:48

could do the stock base compensation.

11:50

2019 they did 4.5 billion almost

11:52

4.6 billion and then 2020 it

11:55

was like 800 million so that's

11:57

that's a pretty huge 2019 had

11:59

a huge one and I would

12:01

want to know why that's the

12:04

case too. So yeah, I mean,

12:06

stock-based compensation is one of those things.

12:08

Like, have we seen that fully play

12:10

out in this market cycle? I'm not

12:12

sure either. Right. Yeah, for sure. This

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get started that select

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quote.com/beginners what do you think are

14:57

some of the potential risks that

14:59

a company like Uber could be

15:01

facing the answer question like that you

15:03

gotta go the risk factors of the

15:06

10k and see what kind of things

15:08

stick out a few things I I

15:10

saw autonomous vehicles could be coming

15:12

for them. And I think

15:14

paired with that, they mention

15:16

in the risk factors about

15:18

criminal activity inside their oovers.

15:20

And so if that becomes

15:22

something that gets worse and worse,

15:24

would people prefer to have a

15:27

robot drive them who they know

15:29

can't be violent versus somebody who

15:31

might be? They also mentioned some

15:33

of the stuff in California

15:35

that's happening around electrification.

15:37

90% of ride share

15:39

miles are going to have

15:42

to come from zero

15:44

mission vehicles. Impact, Uber's

15:47

business, I don't know. Some of

15:49

those things, and I don't know

15:51

if I mentioned this specifically,

15:54

but it was something I wrote

15:57

in my notes, like low

15:59

switching. costs. If you don't

16:01

want to take an Uber anymore,

16:04

how hard is it to

16:06

download Lyft or take

16:08

a taxi? And that's some

16:10

of the problem I have

16:12

with some of the apps

16:14

in general. But obviously

16:17

every app is different.

16:19

But to install an app is

16:21

pretty easy. So we are in

16:23

a very unique time

16:25

where platforms like Uber

16:28

and Airbnb. crazy amounts of

16:30

cash on like very little

16:32

capital intensity. The first seems

16:34

to maybe be moving that

16:36

direction. But they're also just

16:38

apps on an app store. So, you know,

16:40

what's the switching cost? We don't know the

16:42

answer to that. And it makes for a

16:45

very interesting potential range of

16:47

outcomes. If it's something you feel like

16:49

you have an insight towards, maybe it's

16:51

your... one of your big wealth generation

16:53

drivers. If you don't and you're a

16:55

little more cautious, maybe you're just on

16:58

the sidelines going to see how it

17:00

all plays out. And I don't know,

17:02

those are some of the things that stood

17:04

out to me. Is there anything that

17:06

stands out to you? Kind of doubling

17:08

down a little bit on what you said

17:11

about the electrification slash robotic driver

17:13

with the news related to Waymo

17:15

and some of the things that

17:17

they've been doing recently, there's been...

17:20

speculation, if you will, that

17:22

there could be some consolidation

17:25

that goes on or that

17:27

there, for example, I think

17:29

I read somebody saying that

17:31

if Tesla continues to struggle

17:33

with their self-driving, maybe they maybe

17:35

they start to work with Uber

17:37

to develop the electric fleet

17:39

that Uber needs to meet

17:41

the requirements of California,

17:44

for example. I know there's

17:46

been some chatter about something

17:48

like that or there's been

17:50

chatter that maybe Tesla would

17:52

buy Waymo and they would

17:54

use the electric cars, robotic

17:56

cars, and maybe they would lease

17:59

them to Uber. there's a lot

18:01

of, I think there's a lot

18:03

of uncertainty on which way that's

18:05

gonna go. And then I don't

18:07

know if Uber is working specifically

18:10

on autonomous driving themselves, I have

18:12

no idea. But if they are,

18:14

then that could undermine the people

18:16

that are working with them now.

18:19

And if that becomes public. then

18:21

that could be very harmful to

18:23

the company too, because if you

18:25

know the company's coming for your

18:28

job, how loyal would you be

18:30

to drive for Uber if you

18:32

know that they're trying to basically

18:34

take away your livelihood? I'm not

18:37

saying that's happening, but there's been

18:39

some speculation that some of these

18:41

things could play out and be

18:43

an impact on Uber. And then

18:46

I think there's also been some

18:48

noise. about how they could perform

18:50

globally. The United States is right

18:52

now the biggest part of their

18:54

revenues. And there is some concern,

18:57

I think, that maybe regulation could

18:59

bite them in a butt in

19:01

other countries. There's certainly some uncertainty

19:03

with what's going on. And I

19:06

think your point about the whole

19:08

app thing is very apropos. I

19:10

mean, to your point, there's no

19:12

switching costs. When I lived in

19:15

Chicago. where we lived, more people

19:17

used lift than they did Uber,

19:19

and mostly because it was cheaper.

19:21

And my daughter lives in Milwaukee,

19:24

and I know she and her

19:26

friends prefer a lift because it's

19:28

cheaper. I think there is certainly

19:30

some uncertainty with the company and

19:33

some of the goings on. So

19:35

those are things that I know,

19:37

I guess, from an outsider's view,

19:39

that I have heard more recently.

19:42

Yeah, and I think for me...

19:44

Hearing from some of the people

19:46

in our community, because we talked

19:48

about this as one of our

19:51

live streams, just for fun and

19:53

diving into DCFs of, I can't

19:55

remember who the other. company was,

19:57

but we definitely looked at Uber.

20:00

And some of the numbers on

20:02

there are pretty compelling. 19 million

20:04

members across Uber One eats past

20:06

and rides pass. The fact that

20:09

when they get can Uber eats

20:11

customer, that they tend to convert

20:13

into a high revenue ride sharing

20:15

customer. So you start on the,

20:18

you start ordering some Taco Bell

20:20

late one night, now you're, you're,

20:22

you're in the ride sharing. Also,

20:24

the new ads segment, they have

20:27

550,000 active ad merchants now. How

20:29

does that, do investors start to

20:31

look at Uber as an advertising

20:33

business, having an advertising business, kind

20:35

of like they do Amazon now,

20:38

could also be something on the

20:40

upside. So those type of things,

20:42

again, with the numbers, with the

20:44

fact that the PE was what,

20:47

like very... Very cheap. Cook, if

20:49

I say in a 32 PE,

20:51

and I don't know what their

20:53

4P is, is probably under 25,

20:56

I would guess. They have four

20:58

PE of 28 on revenues, what

21:00

does Finn Chat say? Forty-one percent,

21:02

yeah, 41% over the last three

21:05

years. Cager, yeah, Cager, not 41%

21:07

total, 41%. Yeah, 41% Cager over

21:09

the last three years. 26% Cager.

21:11

past five years. Yeah. All of

21:14

those things just point to bull,

21:16

bull, bull, bull, bull, right? Right.

21:18

Yeah. But you go back to

21:20

the moat and the capital allocation

21:23

and those two things. How do

21:25

you feel about switching costs? How

21:27

do you feel about uncertainty of

21:29

the business and how willing are

21:32

you to have the appetite to

21:34

take those risks? And so for

21:36

me when we talked about it

21:38

with the community. There was a

21:41

lot of different insights and to

21:43

hear the different perspectives. Some people

21:45

were up on Uber, some people

21:47

were like, now it sucks. Some

21:50

people were like, ah, I can

21:52

switch between Uber or Lyft. And

21:54

that again, that was a very

21:56

cool thing to see in a

21:59

group of people with diverse viewpoints

22:01

that you might not get just

22:03

kind of in your head in

22:05

the 10K. So I found that

22:08

interesting and it helped for me

22:10

personally, I guess to reduce FOMO

22:12

if this does, if Uber does

22:14

become a huge thing and I'm

22:16

choosing not to buy now. At

22:19

least the thought process has happened

22:21

of like what risks are you

22:23

willing to? Take and and at

22:25

the end of the day, especially

22:28

the the further down the growth

22:30

cycle you are That's what it

22:32

boils down to right? What kind

22:34

of risks are you willing to

22:37

take and and how how is

22:39

that turning into action to you

22:41

as an investor? Yeah Yeah, I

22:43

mean the to your point the

22:46

revenue growth which is really nice

22:48

right now at some point it

22:50

will slow down and then it

22:52

becomes what kind of profitability can

22:55

they generate what kind of returns?

22:57

Can they generate on the profits

22:59

that they have and it becomes

23:01

a different kind of story to

23:04

kind of go back to the

23:06

whole app thing like if I

23:08

think about If you think about

23:10

Netflix compared to Uber the switching

23:13

costs, I feel like and I

23:15

could be wrong But I feel

23:17

like the switching cost for Netflix

23:19

are stronger than they would be

23:22

for Uber because nobody in their

23:24

brother wants to cancel Netflix, but

23:26

Uber you could take it or

23:28

leave it. Like I think there's

23:31

some people that really love it,

23:33

but I also think there's a

23:35

lot of people that are very

23:37

ambivalent or don't like it at

23:40

all because they've had bad experiences

23:42

or maybe they're in an area

23:44

where they just don't have adequate

23:46

service. I don't feel like the

23:49

same rules apply to Netflix. And

23:51

so that's why I feel like

23:53

they're both app-based businesses, but one

23:55

feels certainly a lot stronger of

23:57

a moat than the other. I

24:00

wonder about the whole autonomous driving

24:02

thing and what that does. I

24:04

don't know, I don't follow autonomous

24:07

driving too closely. Did see a

24:09

kind of funny video on Instagram

24:11

of a guy got stuck in

24:13

an airport parking lot and

24:15

the Waymo was just going in

24:18

circles and just continuing in circles.

24:20

That was pretty funny. He was

24:22

being kind of stubborn with the

24:25

customer service person, but made for

24:27

a funny. comedic bit. But

24:29

you know, does that technology continue

24:32

to improve and what does that

24:34

do for Uber? And then to your

24:36

point, can Uber actually benefit

24:38

from that? When we look at

24:40

stories like Tesla, in hindsight, we all

24:42

like to pretend like we all knew

24:45

that Tesla was going to, like it

24:47

would have been, it should have been

24:49

so obvious, you know, Tesla started popping

24:51

up everywhere, we should have just owned

24:54

his talk. They were 24 hours away

24:56

from going bankrupt. So not saying

24:58

that that's the case for Uber,

25:00

but I'm just saying there are

25:02

risks to investing in these

25:04

types of businesses. But the flip

25:06

side is also the payout can

25:09

be really huge, depending on what

25:11

business you're talking about. It's really

25:13

just, I think, a really different way

25:15

of investing. But what's fun about it

25:17

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25:20

if backs change you can change your

25:22

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25:24

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stockmarket pdf.com. Yeah, absolutely.

27:15

You could. And that's, I think that's

27:17

the, to me, that's exciting thing

27:19

about investing is the more you

27:21

studied businesses and worn. about the

27:24

different companies because there's so

27:26

many of them they're so

27:28

diverse and there's so many great

27:30

opportunities and maybe things you want

27:32

to stay away from but the more

27:34

that you learn about them you can apply

27:37

that knowledge to this business and this

27:39

business and even to your point about

27:41

the foam all earlier we don't have

27:43

to swing at every pitch and I

27:45

think that's one thing we always

27:48

have to remember is you can

27:50

find you can find companies that

27:52

have attractive qualities to them, but

27:54

maybe there's parts of it that

27:56

don't fit your personality investing

27:59

style. And that's okay. You

28:01

don't have to swing at this

28:03

pitch. You can swing at another

28:05

pitch. And you can go in

28:07

a different direction. And it doesn't

28:09

mean like the more like you

28:11

did some work on Uber, right?

28:13

And you decided that this doesn't

28:16

fit your type of company right

28:18

now. But the work that you

28:20

do now compounds. such that let's

28:22

say two or three years from

28:24

now, maybe you come back to

28:26

it. And you learn, okay, so

28:28

you kind of learn on top

28:30

of what you already learned and

28:32

you have other experiences in analyzing

28:34

other companies that you can bring

28:37

to what you're looking at now.

28:39

And so you may look at

28:41

it like the facts have changed

28:43

and so you change your mind.

28:45

And that happens all the time.

28:47

And I think that's, to me,

28:49

that's the exciting kind of fun

28:51

part about investing. and looking at

28:53

these companies that that to me

28:55

is the thing that I find

28:58

the most exciting is trying to

29:00

learn about all these new businesses

29:02

and it's just endlessly fascinating to

29:04

me. Do you think that's why

29:06

the mature industries aren't that fascinating

29:08

to study because the facts really

29:10

don't change that much? It could

29:12

be. I mean that could be

29:14

that could be part of it

29:16

too, but then certainly a company

29:19

that's more mature. or air quote

29:21

longer in the tooth than somebody

29:23

like Uber may not be as

29:25

exciting because yeah like you said

29:27

the facts don't change much it

29:29

just kind of keeps doing what

29:31

it does a company like American

29:33

water that's been paying a dividend

29:35

for what a hundred some years

29:37

or what our crazy number it

29:40

is that probably doesn't change a

29:42

whole lot I've never looked into

29:44

it so I'm just I'm just

29:46

guessing here but I think that's

29:48

probably why but the flip side

29:50

of that is that at least

29:52

for me and I think somewhat

29:54

to you too, my psychology is

29:56

more along the lines of heads

29:58

that win, tails I don't lose

30:01

that much. And so my mentality

30:03

fits into maybe the old boring

30:05

companies more so than it does

30:07

to something like an Uber. I'm

30:09

not saying that I can't slide

30:11

down the scale some, but it's

30:13

harder for me to move in

30:15

a direction like towards a company

30:17

like an Uber than it would

30:19

be to something that's a little

30:22

more, a little more, I guess,

30:24

boring. Could you argue though that

30:26

that work should be done anyway?

30:28

Let's say you were invested in

30:30

newspapers. And all you did was

30:32

analyze Buffalo News versus Washington Post

30:34

or whatever, and just completely ignored

30:36

looking at Google. Is that, is

30:38

that a good way to, that

30:40

even if you're investing in a

30:42

mature industry, you should still be

30:45

on top of the places where

30:47

the facts do change? I think

30:49

you should. As a well-rounded investor.

30:51

or somebody that is interested in

30:53

investing, I think you need to

30:55

keep your eyes open. And I

30:57

think you need to have an

30:59

open mind to be able to

31:01

look at something. To use your

31:03

example, if you're looking at Buffalo

31:06

News, Washington Post, and New York

31:08

Times, you still should look at

31:10

Google and understand what it is

31:12

they do. And even though it

31:14

may not be something that you

31:16

invest in potentially, it could be

31:18

because maybe the trends are. or

31:20

drifting that way. And you can

31:22

make a great return, even if

31:24

you don't get in early. If

31:27

you don't buy Google at an

31:29

IPO, but you buy it 10

31:31

years later, you can still have

31:33

a fabulous return. So it doesn't

31:35

mean that you have to change

31:37

your investing style or what you're

31:39

comfortable with just to partaken things.

31:41

But I think as the more

31:43

you learn about something like Uber,

31:45

the more it can apply to.

31:48

Something like an Amazon, a Google,

31:50

a Netflix, any of those kinds

31:52

of businesses because there's parts of

31:54

what they're doing that also fit

31:56

into air. and they're different businesses,

31:58

but they're related in what they

32:00

do. And the more you learn

32:02

about Uber, the more you can

32:04

learn about Airbnb, you could start

32:06

to understand both of them and

32:09

maybe go, okay, Airbnb to me

32:11

right now, the way I invest,

32:13

it fits better than maybe Uber

32:15

does. But doesn't mean that someday

32:17

Uber wouldn't slide into that slot,

32:19

if you will. And I think

32:21

that's how you grow and learn

32:23

as an investor. And I think

32:25

if you look at, if we

32:27

look at any of the people

32:30

that we like and admire and

32:32

have taught us a lot, I

32:34

think that's what they've done, is

32:36

they've evolved as they've experienced more.

32:38

Yeah, and I mean, I think

32:40

of like Nick's sleep and Lincoln

32:42

on their second guy's name, Zach,

32:44

Zacharias, or Zachariah, yeah, I don't

32:46

want to butcher it. No, I

32:48

don't either. That's as far as

32:51

I'm willing to go. Okay. They

32:53

kind of, they looked at everything.

32:55

They, they spent like a very

32:57

intense period of time looking at

32:59

literally everything for I think it

33:01

was like seven or eight years

33:03

and then decided on, okay, I

33:05

think we found something where the

33:07

facts don't change much and loaded

33:09

up and that's done really well

33:11

for them. You could argue maybe

33:14

Buffett's done something similar with things

33:16

like Coca-Cola or Apple because he

33:18

has such a long time horizon.

33:20

You've got to think that he's

33:22

thinking like, what are the risks

33:24

that? I can't even think of

33:26

right now. And how will the

33:28

company fight against those? Right. That's

33:30

gotta come with experience though. I

33:32

mean, that's, that's like taking it

33:35

to a whole, the whole next

33:37

level, right? Yeah, yeah, for sure.

33:39

Yeah, for sure. Yeah, for sure.

33:41

I mean, if you, you know,

33:43

Buffett's an easy example of that

33:45

because if you look at his

33:47

young, younger years, he was, I

33:49

would say he was buying growth

33:51

companies, but he was certainly. He

33:53

was buying way different types of

33:56

businesses and holding them for much

33:58

shorter periods of time than as

34:00

he got older when he was

34:02

in his 30 he was investing

34:04

completely different than the way he

34:06

was when he was in his

34:08

50s. And now in his 70s

34:10

and now in his 90s, he's

34:12

maybe solidified a little bit more,

34:14

but he still is investing way

34:17

differently than he was when he

34:19

was 34, for examples. I think

34:21

that's a perfect example of how

34:23

the more you learn, the more

34:25

experience you get, the more burned

34:27

you get by bad choices. the

34:29

more you learn and more you

34:31

grow. You become a better investor.

34:33

I think that's the way you

34:35

do it. What is your word

34:38

of advice for somebody who maybe

34:40

feels overwhelmed about learning about businesses

34:42

or discouraged? Maybe ran into a

34:44

roadblock and they're trying to analyze

34:46

businesses. What would be a word

34:48

or two of encouragement for them?

34:50

Number one. I think the thing

34:52

that I've always tried to remember

34:54

is water dripping on a stone

34:56

eventually makes an impression. And so

34:59

even though you don't understand, I

35:01

use this example so everybody's listening

35:03

to us for a while is

35:05

sick of me here and saying

35:07

this, but I'm going to say

35:09

one more time. Visa. I didn't

35:11

understand it. I kept trying and

35:13

trying and trying and then finally

35:15

one day I got it. And

35:17

if I can do it anybody

35:20

can do it. So it's just

35:22

a matter of spending the time

35:24

and trying and it's okay to

35:26

not understand something and move on

35:28

and come back to it another

35:30

time because the experience you get

35:32

learning about Google and Microsoft could

35:34

help you learn way more about

35:36

Amazon down the road if that's

35:38

what you're really trying to understand.

35:41

And I think the more. the

35:43

more that you experience the more

35:45

that you learn and the more

35:47

that you learn the easier to

35:49

get to learn about other things

35:51

and I think the most I

35:53

guess the two most important parts

35:55

are for follow your curiosity follow

35:57

things that you find interesting doesn't

35:59

mean that they necessarily It will

36:01

be investments for you, but just

36:04

follow your curiosity because that will

36:06

encourage you to keep going.

36:08

And number two is persistence.

36:10

Just keep trying. Just keep

36:12

picking up the 10Ks and reading them

36:14

as much as you can. And the

36:17

more that you do that, the easier to

36:19

get. I promise you. That's awesome.

36:21

That's gonna do it for us

36:23

today. I hope you found something

36:26

useful. I hope you found encouragement.

36:28

And I hope you found inspiration.

36:30

Maybe not all those three, maybe at

36:33

least one. We would be happy

36:35

with that. You can reach out

36:37

to us at newsletter at e-investing

36:39

for beginners.com, send us your questions.

36:42

We love to answer them on

36:44

the show. Connect, learn, and grow

36:46

with value spotlight. Peace. We

36:48

hope you enjoyed this

36:51

content. Seven steps to

36:53

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36:55

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36:59

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37:01

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37:04

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37:06

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37:08

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37:10

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