Investing Does Not Equal Gambling
In this week’s episode, Greg and Doug Stokes focus on the long-term success of the stock market and not getting caught up in the next big thing.
They’ll also take a look at tech companies shedding excess employee luxuries, the cyclical nature of trendy investment sectors, and the dichotomy of how inflation/employment news is viewed.
Key Takeaways
- [01:15] - Corporations are shedding excess luxuries/amenities
- [03:21] - The cyclical nature of the “hot” industries
- [06:06] - Are AI and Machine Learning the next big investment sector?
- [08:29] - The Warren Buffett philosophy of buying businesses
- [12:43] - Investing ≠ Gambling longterm
- [20:31] - Inflation is coming down, China is coming back
Quotes
[010:44] - “It could be a cryptocurrency or a tech stock, or some software, etc. And now all of a sudden people are saying, wait, when are these businesses going to earn money? When are they going to pay dividends? As soon as that particular mindset shifts, then the Warren Buffet strategy, or others like him, starts to take hold. So we're big proponents of saying we don't know what the market's going to do over the next months or years really, but if we buy a collection of businesses that are growing their revenues and earnings and have pricing power and customers like them, then we feel pretty good about long-term prospects.” - Doug Stokes
[15:40] - “The issue with the [concept of] investing versus gambling is that dichotomy of returns or the percentage difference in returns of periods of time. In the stock market, you have to be willing to grind through some horrible times.” - Greg Stokes
Links
- Xbox revenue was down, but LinkedIn up 10% last quarter
- Celebrities frequently attend Salesforce meetings
- Marc Andreessen: Software is Eating the World
- Petroleum Engineering enrollment down at Louisiana Universities
- What is ChatGPT and why does it matter?
- Compounding Quality: Never invest in the next big thing
- The power of compounding: Warren Buffett's net worth at 52 & 92
- Benjamin Graham: The Intelligent Investor
- Warren Buffet eats McDonald’s for breakfast every morning
- Treyton Devore: Investing vs. Gambling
- Jeremy Siegel, Professor of Finance at Wharton
- Plan Maestro: Global Billionaires & Millionaires
- Plan Maestro: 6-month CPI inflation
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Disclosure
The information in this podcast is educational and general in nature and does not take into consideration the listener's personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.
