hey everybody thank you for being here have glad everybody could join us a happy Sunday I hope everybody’s having a good weekend or as I like to call it the the two workdays between Friday and Monday we’re doing these live streams every Sunday now from I think I’ve got it down to a 1:00 p.m. Eastern I think that’s working for for a lot of people and not conflicting with with a lot of other schedules but let me know if you’d like to see different times we’re looking at maybe Saturday or Sunday but it’s just a great opportunity to reach out and and talk to the community and get this kind of back and forth kind of idea and really talk about you know talk about creating creating that financial future that we talked about on the channel so much there’s gonna be a very special live stream you know I’ve never I talked about stocks and investing and my background as an equity analyst a lot but we’ve never really covered that deep analysis that that goes into professional stock thinking what those Wall Street analysts do and how they find some of those stocks to recommend and how they put together those you know those those estimates but I asked in our last in our last video if you wanted to see that more detailed and an in-depth analysis you answered overwhelmingly yes so I am going to I’m gonna fit as much as we can into this livestream today but I’m also going to be putting out a series of videos on you know financial statement analysis fundamental analysis and really what goes into actual Wall Street analysis of stocks how they pick stocks and and and how you can use that to it to make better decisions and really just be a better investor so we’re gonna get started here I see some people joining a thank you for being here I appreciate I appreciate you being here taking part of your day to be here with us what we’re gonna cover today is we’re first going to cover some some community and Channel shout outs you know some some comments that I got over the last week that I want to I want to point out as well as you know shouting out some some channels that are also great channels to follow here on YouTube but then we’re going to talk about some of the videos we covered last week and this next week too coming it’s all about investing you know I’ve missed like I said I come from that equity analyst background started in real estate analysis in college but then quickly moved on to working with venture capital and portfolio managers and I love talking about investments so so you’ll probably see I’m a little more enthusiastic this week then maybe last week although I you know I mean I love talking about making money but but this is where I come from and this is this is a great place to be for me and then you know we’re going to talk about that fundamental analysis we’re going to talk about you know really how to find those stocks how to look deep into the financial statements and I really see what a lot of people aren’t saying because you know 99% of what you see on TV on blogs you know on CNBC it’s not really what investing is all about you know an analyst might come on there and give a couple of quick stock picks and you know a couple of talk talking points but it’s all that that quick bullet point mentality that you know that’s not stock picking that’s not professional analysis when they go back to their office and they’re spending 60 70 80 hours a week you know looking into these financial statements calling their suppliers calling their contacts and even reaching out to management because management gives a lot of time a lot of a you know face time to these analysts I’m going to show you exactly what they do and what they watch for and and it’s interesting you know some of the stories that you come across as an analyst and some of the shenanigans that people that companies and management try to pull it tough to fool investors it’s it’s it’d be funny if it wasn’t tragic and if it was and didn’t lose a lot of people a lot of money so we’re gonna do a lot of that James ocean Mist thank you for being here freedom love her max thank you for being here but yeah you know and for example one of those stories I was covering a I mean this was quite a while ago but I was covering a company called MicroStrategy software and you know as a smaller company but they came out with this press release that they were you know they had a huge contract coming up and if you look back a couple of weeks they’d actually just announced a joint venture with NCR which is your NCR corporation 20 million dollar investment in NCR which of course you know and we’ll talk about this that doesn’t go on the income statement so that twenty million dollars they invested in NCR doesn’t you know it doesn’t count as expenses so it doesn’t hurt their earnings during that quarter it comes out on the cash flow statement which is what we’ll be talking about today well so lo and behold you know a couple weeks later they announced this huge contract worth nineteen point five million in sales to this one company to in CR their new best friend you know so so if you looked at this and you said oh just a minute they just gave NCR twenty million dollars investment and then NCR turned around and bopped nineteen point five million dollars worth of their stuff but the way that you know financial accounting works the the twenty million dollar investment didn’t hit them on expenses so he didn’t lower their earnings but of course that nineteen point five million dollars came back and you know that sales that’s higher earnings and it’s a you know so smaller companies so that nineteen point five million was was pretty material so basically they were trying to kind of hide the fact that basically they were just you know moving money around not doing anything extra and we’re getting these these great sales and great earnings so these these kinds of shenanigans are everywhere you know company’s management tries to pull this over on investors and you really know you need to know where to look and and how to look for it if you’re gonna see through these some some of these lives really an accounting tricks that that companies try to do so that’s all that mostly what we’ll talk be talking about today after we talk about some of those some of those other things and of course we’ll get to Q&A at the end I appreciate everybody being here if I don’t see your question in the live stream during you know during the live stream because it’s it’s hard to jump back back and forth with my notes and the end the chat and go ahead and you know ask it in the Q&A I try to hit every question and answer that gets asked so you know mr. personality setting Nash thanks for being here what’s your why for sharing your information for free with us this is this is my this is my life you know I like I said I come from an equity analyst background I spent 10 years working with venture capital firms portfolio managers as an economist as an analyst and you know it’s just it’s just what I like doing you know I’m at a point in my you know in my career where I can I can just basically just kind of talk to you guys and and do these videos because I’ve made enough money as an equity analyst and and some of my other you know wealth hacking side hustles and that kind of thing so yeah it’s it’s kind of a nice nice financial freedom to have to be able to just kind of you know create a YouTube channel and talk with everybody so we’re gonna get started here like I said we’re gonna cover some community and and comments shout out some some channels or some great channels to follow talk about some of the investing videos we’ve got and and then we’re gonna go right right into that fundamental analysis because that’s it this is it’s gonna be an exciting video I’m gonna be covering some some really interesting stuff that you never see on CNBC or these blogs basically because it’s it can’t you can’t fit it into a soundbite but it is gonna make you a better investor and it is going to you know show you how to pick stocks better so I want to you know first shout out to some of the some of the comments some of the community members I got over the past week got a got a comment from Edward and how talking about you know how he did want to see some of this analysis to pick stocks and wondered if I could pick the look at the can slim stock picking strategy now you see a lot of these stock breaking strategies that are kind of boiled down and the can slim specifically is it’s interesting but it’s not enough you know a lot of these Slim’s downs through strategies will are just kind of cut touching the surface of what you really need to look for basically can Slim is just I starts off with looking at you know some earnings and sales stuff and then goes into kind of like Porter’s five forces which if you don’t know that’s kind of assessing the competitive landscape for an industry you know so so what are the competitors what’s the macro-environment stuff like that and this is all a good place to start but you really do need to dig deeper into a financial statements the cash flows things like that things like that we’ll be covering in this video today in the livestream and you can’t you know you can’t spend too much time on these these uh you know boiled down strategies because because they’re not real that they won’t get you anywhere okay the next one is by aji Stroud one to one to highlight his comment because he brought up a very good point that that we had talked about in the penny stocks and I actually had missed and you know he said he stays away from OTC and pink sheet penny stocks which is absolutely correct you know there’s a penny stocks trade on different exchanges right some of them will trade on NASDAQ just like regular stock some of them will trade on the OTC which is the over-the-counter and some will be pink streets and you know the difference is kind of might seem like semantics you know you still buy them on online trading platforms and stuff like that but but they’re very much different you know these OTC or the over the counter and the Pink Sheets stocks are very much less regulated and there’s much less oversight and reporting that they need to do so basically you get you know legitimate companies that trade on the Nasdaq the penny stocks are otherwise they have to report you know every every quarter every three months after before their finances they get audited by a separate and independent accounting firm whereas a lot of these others these OTC and pink sheet companies they don’t have a lot of those requirements so you know any time you watch a movie about like boiler room or wolf of Wall Street right they’re always talking about these pink cheek socks you know if you remember wolf of Wall Street one of the first first scenes when he actually goes and first starts working with those those pain at that penny stock company then you know the guys like oh no these are all pink sheet stocks with you you know and II asked him about it what do you know about this company I don’t know half these stocks are dog anyway but you know who knows it’s it’s all pinki and they’ve got so few reporting requirements nobody really knows a whole lot about them they could be you know like like in the movie so somebody shot you know somebody’s garage and they’re in their backyard and and it’s really hard to know with a latte so so definitely if you’re looking at penny stocks and we’ll talk a little bit about that video I definitely stick with the ones that are trade on the Nasdaq and and whenever you look at those you’re you’re gonna look on your your online trading platform or on Yahoo Finance or whatever and it’ll say Nasdaq or it’ll say o T C or it’ll say you know something like that so you want to look for for stocks trading on the Nasdaq just to make sure you know they’ve got they’ve got a little bit more of those those regulatory and reporting requirements and of course you always wanted to look at the financial statements and and kind of do a little bit a little bit more research which is like I said what we’ll talk about today so so we’ve got that I now I want to call out a couple of channels a couple of great channels here on YouTube to follow first Brian Brian runs a kind of a making money site online entrepreneurship he calls it and it’s just a really great channel for you know finding those online side hustles those kind of things fifteen thousand subscribers so he’s doing really well and you’ll see a lot of these you know a lot of these videos are you know online entrepreneurship mistakes entrepreneurs make and then you know his the the best video is the ones I like the most are just so how to make money you know those those strategies that he’s tried and the ones that I love things like that so check out Brian’s channel another channel I want to point out is Dennis Dennis Ruffin he runs the the true financials channel here on YouTube I know Dennis from a financial bloggers conference great guy and some really excellent you know excellent videos on budgeting paying off debt stuff like that you know some of the stuff that I like to cover on the channel a little bit but we really don’t get to it so much because I’m so much more excited about investing and making money so yeah a lot of those ideas on you know budgeting and you know watching your money and stuff like that so check out check out Dennis’s channel it’s true financials he actually does a live stream every Sunday at 2:00 p.m. Eastern so directly after this if if you want to check that out he’ll be lying pretty soon so now what I want to do we’re going to get to those of that financial statement analysis and you know what analysts actually do to pick stocks but I want to cover you know talk real quick about you know last week’s videos this next week’s videos and like I said it’s all about investing we’re doing an investing for about two weeks here and some really interesting ideas you know we did institutional buyers and penny stocks last week the penny stocks video on Friday is over 7,500 views in two days our it’s our fastest ever so definitely a hot topic and and some great upside some great potential in these penny stocks but you have to know how to how to pick them how to do some of this analysis that we’ll talk about today because you know like I said even if they are traded on the Nasdaq so they’ve got those financial reporting requirements and that auditing requirement there’s a lot of stuff that you just don’t see it we’re going to talk about some of the ways that they can try to trick investors and you have to try to get a get over that so I’m actually linking to the penny stocks video in the video description to this to the to our live stream check that out because I show you a screen or on on you know how to find out how to start finding penny stocks and then some ideas as well as sharing three three penny stocks that I’ve been watching and a couple that I’ve been investing on investing in lately as well next week we’ve got our portfolio update so our 2019 stock market challenge dividend portfolio that I’ve been running on m1 finance it’s up 24% so far over the first three months which I’m excited about because the stock market’s up about 14% so we’re beating the market by by about 10% that’s Monday’s video so that’s tomorrow I’m going to I’m going to be updating you on the portfolio and talking about the efficient market hypothesis and before you yawn and fall asleep there sorry I gotta get a little bit nerdy on you but the this this efficient market hypothesis just says that you can’t beat the market right it’s a theory that you know all the information that we have about stocks and companies is is immediately reflected in prices and there’s just so many people that are following this and chasing socks and stuff that that you know nobody really has an advantage and I think you know with that portfolio beating the market there and some of the stuff what we’re going to talk about today you know it’s it’s clearly busted you know that you can use some of these some of those fundamental analysis so we’re going to be talking about today some of these tricks and and financial statement analysis to actually you know find out a little bit more than what the average investor has so I’m excited about that video tomorrow I’m also going to be sharing a video Wednesday on the investing sites I use a lot of people have been asking about that and you know a lot of people think ok well I’ve got a neat trade account or I’ve got an Ameritrade account what why do I need more well I mean there’s there’s a lot of different reasons I use m1 finance for for no-cost investing so I save a lot of money on the fees there I use II trade for research because I get access to like Credit Suisse and Morningstar and a lot of other tip ranks a lot of other research there use ally invest for just that broad financial access you know a bank account checking they’ll pay a lot of those other things so there’s there are reasons to use other accounts so I talked about the five investing sites I use and why and just besides the fact that a lot of these will run bonuses for for signing up so you know you each year you look for some of the bonuses out there open a new count get get maybe 500 bucks at free and and you know maybe you closed it out in a couple of in a year or two and transfer it to another account but that’s 500 bucks free money for basically doing nothing so so I talked about that and then Friday we’ve got a video on long-term investing you know picking stocks that are gonna be there for 30 years or more so I’m gonna be looking at long-term macro trends and and how to really kind of spot some of those but you know I see I see a lot of people on the call I appreciate everybody being here and we’re going to get to that Q&A at the end and and I love just being able to share this book but I want to get to that fundamental analysis the reason why we had this video today like I said I asked in our in our Penny Stocks video if you wanted to see this deeper view at how professional analysts about Wall Street analysts pick stocks and and you said you did and I’m excited because I mean this is something that I don’t get to talk about a lot anymore that deeper financial statement analysis now I do want to say that you don’t need to do this we’re gonna be talking about some pretty deep analysis into the financial statements looking at press releases I’ve put out by companies looking at their statement of cash flows and you know this is something that MLS do 60 80 hours a week I mean there is no 40-hour Work Week for your average analyst and you go blind for the first two years making cash flow models so you know it’s it’s a it’s pretty detailed and it’s intense but you don’t have to do that to invest if you don’t want to you know you’re just investing in funds like we talked about in that Vanguard fund portfolio video that we had you know spread your spread your money out over five five or six Vanguard funds to get that diversification and you’ll be fine what we’re talking about here is you know going a little bit further put put in a couple hours a week to actually dig into those financial statements and what we’ll be talking about and you know like like we’re doing with that 2019 stock market challenge beating the market by 10% so far in the first three months another thing another important note that I want to make here is that you know if you’re doing this financial statement analysis and this is really how it’s done by analysts on Wall Street you need to focus on a specific sector or industry okay you can’t just say okay this week I want to find a tech stock and this week I want to find a you know consumer staples stock or utility company it doesn’t work that going because you know what happens is you need to know the ins and outs of this industry to really know how the competitive forces are shaping up you know how other companies are making money how a specific company is is doing you know the the trends in the industry so what that means is and how it works on Wall Street with analysts they’ll cover maybe one sector new industries in the sector so-so sectors are broader parts of the economy like consumer staples which are you know things you have to buy food household goods stuff like that consumer discretionary which is stuff that you buy you know clothes but you don’t necessarily need it though you kind of need clothes right utility companies energy companies that’s a sector within the sector as industry so you know Old Navy and stuff like that within utilities would be like the regulated utilities the alternative energy companies those would be industries so what a lot of analysts will do you know a lot of them will have worked in that industry for a while and then come over to be an analyst covering stocks in that industry or that sector and why this is important like I said you know and this is something that Peter Lynch made famous and invest in what you know you know and find those those two or three industries or sectors where you have deep experience deep professional knowledge you know how that industry works how they make money and you know more of the so than the average investor you’re gonna be able to look at these financial statements and look at these press releases put out by by the companies and you’re gonna be able to spot the financial shenanigans the tricks that they’re trying to pull and you know which ones are best to breathe so what you do is you’re gonna be investing in a handful of stocks from those sectors after doing your analysis and your financial statement analysis and and all that you pick a few of the best breeds from that industry the rest of the money you’re just gonna put in those broad index funds right so you’re gonna get market exposure so you get market returns from from maybe half or 50 or 60% of your of your portfolio but then you pick these industries are these stocks within these industries that are best to breed that you know about for that extra solid return okay so that’s that’s that’s really how how this all works on Wall Street so we got a few more people Susan I want to want to call out a guys good thank you for being here Dennis from true financials and Kelly from freedom in a budget thanks for thanks for coming out so we’re still we’re just getting into our financial statement analysis and what I want to do now is kind of low and you know what what an analyst is looking at when he when he gets into these these financial statements and really what you you can look for really quickly to to be able to tell what’s going on with a you know with the stock now now of course I’m not saying you have to become an accountant or a numbers nerd like me you just have to know you know some quick places to look and and y-you know really kind of that mainstream media investing is is really not not how analysts actually do it so when you go to a stock now you know when you when you look on when you look to CNBC or blogs the first thing you’ll hear is earnings right how many sales are they making how many how much profit are they making and it’s kind of crap you know because you’ll find out when you when we talk about this and we look through this that those those earnings are completely manipulated you know like we said like we talked about earlier that that example from the software company that had started a twenty million dollar partnership investment in NCR which didn’t go on the earnings statement didn’t hit them as an as an expense and then miraculously they had a new best friend they got a twenty million dollar contract from NCR like two weeks later that counted as sales counted as higher earnings so you know the average investor wouldn’t put this together they wouldn’t see that you know basically they’re just moving money back and forth to make them look like they had more sales and more earnings so this is what they do with the with the income statement and when I talk about the income statement let’s let’s look at their I’ll use the Apple as an example today it’s not necessarily that Apple’s trying to pull pull a lot of a lot of shady tricks or stuff I just saw somebody where’s the bowtie yeah it’s Sunday I kind of got to relax okay but but what you’ll see is so you look on the income statement and the income statement is basically just all the profits that a company made over three months or over a year okay so you start off with sales which is revenue okay and then you take off the cost of revenue which is how much they paid for that those raw materials and stuff you take off operating expenses which is all their staff and and all the other stuff they spend on to run the company and then you got some other stuff and then finally you get down here to net income and of course that’s everything you always hear on CNBC or on on blogs is net income and earnings per share and and price to earnings and this is what’s important right well when you find out when you actually do you become an analyst or look at some of the stuff we look at today is is it’s bull okay you know there there are so many different ways for management to hide and manipulate and change these earnings that it’s really almost kind of meaningless so what we’ll do is we’ll look on a different statement here to really show show you what you know what we’re looking at but on this say you know on this income statement a lot of times you’ll see you’ll see companies recording sales or revenue you know before the contract is completed or they’ll defer expenses so so they’ll you know they’ll they’ll have though some they’ll stretch their payments out to all their suppliers you know especially towards the end of the quarter they’ll stretch all their payments out so they don’t know they’re not paying for a lot of their stuff so they’re not recording those expenses of course so if you get sales and you’ve got less expenses the less payments that you’re not making your expenses then you’re gonna have higher earnings what a notorious example of this is a lot of companies and you know in the light analyst community will call it a thirty five day month because a lot of companies and when you read into their reports or their financial statement reports you’ll see this but it’s a thirty five day month because you know towards the end of the month if they’re if they haven’t hit their earnings numbers they think then they’ll start they’ll stretch that out you know so they’ll maybe you know cut off their reporting three or five days later or even ten days later to make sure to get those revenues in so so when they do report those quarterly earnings then then of course they look much higher and they beat those those estimates that everybody’s expecting and you know a lot of times even successful companies they can actually manipulate earnings lower sometimes to make the next quarter or future Cordys quarters better so so conversely they might you know not record a contra or sales that they had in the corner they’ll wait to record it in the next quarter or maybe they’ll prepay a lot of their expenses in this quarter you know if they had a good quarter you know they’ve already they’ve already met their goals for that quarter but they’re a little bit worried about about the future so that’s a lot of what we’re going to be talking about today finding those little tricks that they do and you know one one one way you can find this a little analyst secret that works no ninety percent of the time you always look at a company’s press releases and this is so funny because nine times out of ten when a company is caught pulling some of these shenanigans or some of these financial gimmicks or tricks then they told you what where to look for in the press release you know as an example they’ll put out a press release claiming you know how well they’ve done on a specific part of their financial statements so maybe for you know for four months and or four years or quarters they’re your receivables the money that they booked as sales you know they got these contracts from other people to pay them for for goods goods and services has been going up and up and up you know so people people are worried that they haven’t been getting paid for these receivables well then they’ll send out a press release to the to the media to the public about oh hey look or you know we lowered these so much we collected on so many of these we’re doing great and it’s a warning flag it’s it’s as an investor as an analyst you should just be saying thank you because now you know exactly where to look you know how were they able to get that number to change you know why are they pointing that out and a lot of times it’s you know it’s it’s some kind of financial trick that they tried playing plain and we’ll go and specifically into some of that pretty soon so you know what’s your what you’re looking for we talked about the income statement a little bit but you know what the real analysts actually look at is called this cash statement of cash flows okay and why this is important because that income statement is all accounting right it’s you know you can actually you can record sales and Rhett revenue you know whether you actually collect the money or not you know you can there’s a lot of things in that income statement that aren’t necessarily happening in real life they’re just happening on on paper you know so so obviously it lends itself to a lot of tricks and a lot of shenanigans pulled by companies well the statement of cash flows is part of three financial statements that all publicly traded companies have to put out this balance sheet which is their assets their liabilities what they have and what they owe the income statement which shows like I said the the revenue the sales they had and then all the way down to the earnings and profit for that quarter and then the statement of cash flows now why the statement of cash flows is important is because this is actual cash okay you know and that’s not to say that there aren’t some sneaky ways that companies can can trick this but it is much harder to do than the income statement you know you can’t say so so like the like we talked about in the income statement if you’ve got a contract that pays out with a another company for three years right you know you there’s some certain accounting you know differences where you can you can say okay well we expect all of that to be paid within you know a month or two so we’re gonna book that revenue now or there was receivables now whereas you know in reality you’re probably not going to get all of that money you know maybe maybe there’s some terms in that contract where that the customer probably isn’t gonna come through with over three years so maybe you get maybe you can actually rely on two years worth of revenue on there but you can book all that money on your income statement you know and it makes that quarters or maybe that’s those first few quarters of sales look really good but there was no cash there you know so so what an analyst will do he’s first looking at that statement of cash flows and you know looking at where actual cash is coming in and and you know how that kind of jives or doesn’t jive up with the income statement so we’re going to be talking about how to how to match the two up and kind of how to look for some of the red flags and the first way to do this go into the big statement real quick here because I mean I don’t to put happy to sleep I I know I kind of get excited about all this stuff because it’s kind of where I’m from you know looking at the numbers and kind of being a financial detective on this and investing detective but I know it’s not not that way for everybody but as a sort of finance so a statement of cash flows is is broken down into three sections okay cash flows from operations is my favorite okay this is this isn’t good stuff because this is actual cash the company makes from the business which you know should be immediately obvious how important that is okay this is actual cash generated from that business this isn’t you know investing tricks or debt tricks or anything like that so this is that first section is really important you know and what they do they actually take net income here that they reported on their income statement and then they add and subtract different things that aren’t actually cash you know okay so so a lot of companies especially the ones with like lots of the equipment and stuff like that will have a lot of depreciation okay so they bought this this building or this this factory or whatever you know 20 years ago paid cash for it and and every year they get to pick money off of their sales to reduce taxes as depreciation right and you know it makes their it makes their earnings look differently better or worse but it was an actual cash so so this cash flow from operations is just a way of takes saying okay you report these earnings you said you had this profit this quarter but here’s all the things that weren’t actually cash so how do we get back to how much cash you actually made in the quarter so very important part there then you go a little bit further down a cash flows from investing you know and a lot of this is usually this is either SSL so a company that’s selling parts of their business or assets like factories or that that capital equipment that they have or it’s investments they’re making in that kind of in in businesses or you know acquiring other businesses so this is this is important as well because you know if you see a company that’s you know their cash flow is looking good but it’s because they’re selling all parts of their business you know they’re then maybe it’s a conglomerate with wind turbines and you know defense sectors and lots of different parts of the business and they’re just selling all kinds of those a lot of those assets off well you know that might look great that might help them pay their dividends and shore up some some leverage and stuff but you know you can’t do that forever so eventually you run out of assets and you can’t make any more money you run out of business parts of your business so that’s an important section to look for this purchase of investments that’s you know them them buying assets and then sales of investments so for example here you see you know Apple Apple invested 3.3 billion in the last the last court I think this is just showing quarterly 3.3 billion in last quarter buying you know equipment and stuff they they spent 7.5 billion that was probably you know acquiring smaller companies stuff like that and then they sold almost 17 billion dollars in you know as other assets okay and not necessarily to say they’re selling businesses and stuff that they might just have a you know investment security stuff that are coming off their books and stuff but you know yeah so you can look into that the last section here that we’ll cover before we look at some of the some of the tricks and some of the things you can look for is this cash flows from financing and then so the last one was investments now this one is debt and this one is is going to be really important too because you know you’ll find a lot of companies when they get in trouble they just start issuing debt you know they got this huge they got this huge dividend that investors love investors look forward to a recorder but the business isn’t doing so well so they have to start you know issuing more debt more and more debt to and to cover that dividend they’ll also you’ll see here also you know how much of the stock are they buying back as well as you know how much money that dividend is paid so so all three sections here are very important this last section down at the bottom you know free cash flow and that’s really you know how much of their operational cash flow so that actual cash generated from running this business – kind of the money this it’s called capital expenditure it’s the money that they have to say kind of keep the keep the business running okay they’re there buying different you know equipment factories businesses whatever they need to buy to keep the company going and then so your cash flow from your operations – that is called free cash flow and it’s kind of a nice nice metric for okay what’s left over you know say you got this company they’re making cash from the business – whatever they need to keep that business running what’s left over for investors free cash flow so that’s an important one and what you can do okay so so this first metric we will look at is called your CFO which is your cash flow from operations you compare compare that to EBIT da now EBIT is over on the income statement so so we’ve got cash flow from operations right and this you get this from the net cash provided by operations these numbers down here okay so you’re going to take one of those and then you’re going to go over the income statement and what EBIT die is it’s called earnings before interest taxes depreciation basically it’s there it’s the company’s earnings – a lot of these non-cash things right this is your interest well interest is interest as cash obviously they have to pay that interest out but but we don’t count it in that that core business part of their their earnings right this is basically their business earnings – some of that financial tricks that they use in depreciation and you know in tax gimmicks and stuff like that and you’ll find that and on the income statement it usually at the very bottom right so for Apple the this the cash flow from operations I think of this last this is your this is quarterly let’s go to yearly because it’s best to look at these on your the basis so 77 billion dollars Apple made just from the cash collected cash for its business seventy seven billion dollars in the last year and then you go down to ebay da and it made eighty seven billion in earnings that’s what it’s reported in these earnings so what you look at is that CFO number that cash flows number divided by T beta divided by the earnings they’re saying and you know optimally you want these numbers about the same right you them collecting the same amount of cash or saying they collected this amount of cash and saying it’s about the same as what they’re reporting on earnings what they’re saying they earned as far as profits you know and what happens though is and most of the time you know cash flow is a little bit less than II but you know because cuz every every company is going to use some financial tricks right even Apple that definitely doesn’t need to use any financial tricks even Apple it uses some of these just to make them make itself look a little bit better right so you get your earnings are gonna be a little bit higher right so if you take cash flow from operations / EBIT de then if they’re if they’re even it’s gonna be one if EBIT de or that earnings they’re reporting is higher then it’s gonna be less than one right see if I’m / EBIT done now what’s what’s us showing you is that you know how many kind of how far off are they trying to make their earnings look you know most companies they want their earnings to be as high as possible every quarter you know because that’s what investors are looking for that’s what the analysts are looking for the street they want big blowout quarters right so they try every book every gimmick they can in the book to make this earnings this EBIT doesn’t look higher right well they can’t fudge that cash flows so they’ve got cash flows which is saying one thing they’ve collected this cash in the quarter then they’ve got a beta that earnings that is way higher so it’s just kind of a warning sign right you know if you see if you see earnings so much higher than the cash flow okay there’s something I need to find here in these financial statements because because something’s not quite right you know another another trick a lot of them will try to try to pick try to try to find and this is a little bit deeper into the end of the financial statements is you’ll see a lot of times they’ll call it a provision for doubtful accounts you know and this goes back to the receivables part that we talked about now receivables are just you know on the net income statement you know and they don’t break it down here but basically you’ve got sales that you you sign the contract right now and you’ve you know you paid and and did all that and then receivables where you know you you did your service you sold somebody some goods but they haven’t paid you yet right you know they don’t they’re saying okay well maybe we’ll pay you over the next three months or two years or whatever well what happens with a lot of a lot of companies when they get into trouble they start letting their their payers they’re the creditors slide a little bit right or not creditors but debtors right the people that took their services or took their goods you know and haven’t quite paid them yet right now they they reported that as sales so that goes down as sales and they would think they can show investors that hey we had all these sales we made all these earnings this quarter but they didn’t really collect that money you know they they collected that they showed on their income statement that they made the sale business is doing great and then receivables is where they kind of they kind of balance that they say okay well you know we recorded this as sales we said we had we had the revenue but they haven’t paid us yet so so this is where we put this to kind of offset that and show investors what’s really happening well the problem is and what you need to look for when you see these are this receivables is you know receivables going up and up and up and up because what that means is a company is saying okay you know we don’t care who we get sales from we don’t care if you know they want three years or five years to pay us we need those sales you know so they’re gonna be putting out terms for their customers lettin them slide for a lot of these so you know the litt terms go out and you know obviously they’re not going to collect a lot of this money so all these sales that they’ve been saying the thing they had it’s it’s it’s just accounting gimmicks okay so a lot of times you can look for look for hire receivables in that or they’ll say it’s call it the provision for doubtful accounts you know because another part of the financial reporting that they have to do they have to say hey you know okay we probably won’t collect on some of these this is this is how much we think we won’t collect on these sales that we booked in in these other quarters and so that will keep going up and up and so as well another thing you want to look for is the statement of cash flows you just look at where you know where that growth and where the money is coming from and where the how they’re paying some of these cash flows so so this is actually kind of what happened to warren buffett when he invested in IBM and why that went so badly because you know that the business wasn’t doing so well they had a huge dividend that they had to pay every quarter and you know they had to start they had to start you know raising Becht just to pay the the dividend and I mean I warned Buffett’s a genius and he’s got an army of analyst behind him but nobody ever seemed to look at the statement of cash flows and looked at okay you know what there’s there’s a problem here with all this debt and they’re just using debt to pay off the dividends so you know what’s going on here so so a lot of times you can look at this statement of cash flows and you look and look at the you know the debt issued that repayment so kind of you know how much debt are they are they collecting or how much debt are they taking every year and how much are they paying back and then come down here to this common stock repurchases and dividends paid you know so so obviously okay Apple is buying back seventy two billion dollars of their own stock a year they’re paying almost fourteen billion in dividends but you know they’re they’re they’re making that money in this cash flow from operations so they’ve got good cash flow generation what you want to look for obviously is his company’s paying out so much more in dividends but it’s they’re not making that cash in the you know in the cash flow from operations they’re not actually generating that cash so it’s kind of a warning sign to look for as well because you know obviously you can’t do that for a long time and if if a lot of a lot of times what happens you know like I said every company uses these financial tricks and these shenanigans but when they start getting in trouble that that that urge or that pressure to do even more and more doubtful tricks or or shadows or outright scams or frauds it just Rises that pressure because you know investors want to see earnings every you know every quarter and every year so so some of the you know some of the warning signs that that pressure is building is that you know they’re paying out dividends more dividends than they’re collecting in cash so you know they’re gonna be they’re gonna be wanting to pull some of these what else some other things that we want to look for I want to get to your questions really quick now to understand we’re just kind of looking at some of the tricks and some of the shenanigans a lot of companies will pull on their on their investors here what I’m gonna start doing is a series on videos on looking a little bit more detailed a little bit more you know step by step into how to look at these financial statements what to look for and really how to do your own analysis but I wanted to start you off with this live stream just for some some bit parts of where to look really quick before you get that whole process a lot of a lot of things we’ll talk about is you know some of these income statement stuff so we talked about the the long term receivables that you get that you see on the on the income statement and a lot of times like I said they’ll start booking those sales that aren’t necessarily expected to be collected for for more than a few months or even even further out or the the doubtful ones you know the ones where hey we know that you’re not gonna make this whole three-year contract you know you’re gonna pay you know pay every quarter on this contract to us and you know most these contracts they they end in two years and and nothing it nothing happens those three years but we need to book some sales here so so we’re going to we’re going to record this so they start doing that you know and and you can look at some of these some of these ideas you know and a good example here is like companies that have two parts of their of their business so for example Apple sells a hardware you know in its phones and a lot of its products and then you know future software and sales well a lot of times what these companies can do is they say okay you know what we know people that buy a phone we know people that buy our hardware they tend to buy this much in sales from our software and other services so we’re going to record that they can actually do this in the county they can record as sales you know their estimate for a lot of these other services and software sales that they think they’re going to get in the future from this customer okay and it’s an accounting gimmick like we said it’s a it’s just a it’s just numbers are on a page it’s not real cash flow but they can say hey you know we got this customer we think you know on average he’s going to bring in this much in sales over this period so we’re gonna take some of those sales this quarter because you know we need we need the sales and we need the earnings to meet those estimates and those expectations so I just saw a lot of different different ways people people do this a lot of people if you’re you know old like me then you remember AOL back back in pre 2000 you know in the 90s was sending out all those little CDs those discs of you know free trial or downloading AOL on your computer and what they had said was okay we’ve got this you know we we just spent billions of dollars this quarter on sending these CDs out but you know we’re gonna say we’re not going to say that this this is an expense in this quarter because I mean that would have just destroyed their earnings right you know they they paid out all this money for marketing in this one quarter or this this year and you know they wouldn’t have had any earnings left over to show for it so what they did they said okay well you know this is this is really a long-term marketing thing that we’re doing so we’re gonna take this and we’re to capitalize it so so we’re not actually saying that we spent this money this quarter we’re gonna say that we spent this money over years and years so they take chunks of that of that spending that they did and they you know they just stretched it out over years so they only needed to put down a you know a very small part of what they spit actually spent in cash they had to pay for the all these CDs and the and sending them out and everything they only put a small part of that on their income statement so obviously you know the Ernie’s looked much higher and you know investors were happy for a while until they figured out what they were actually doing and then of course you know the the bottom just dropped out of the stock because everybody realized okay you know you’re you’re you’re saying that you’re gonna make so much more in sales than you’re actually make from this marketing gimmick that you did and you know your earnings aren’t nearly as good as what as what you’re saying saying there so I mean that’s kind of just kind of what we’re looking at and what we’re going to be what we’re going to be covering in the next couple of months in kind of that process of you know looking at these financial statements looking at some of those examples that happen in the past of you know how analysts found these these gimmicks and these tricks that companies play so you know we’re gonna we’re gonna we’re gonna be covering that now I want to get you get to your get to your questions and you know answer as many of those as we can you know feel free to ask a question that you had you know during the you know during the live stream I’ll try to go back and see if there was any any here okay max so mentioned futures and a few of your videos I haven’t seen a video dedicated okay yeah I am putting together a how to trade futures video for the channel it’s it’s a really it’s gonna be kind of complicated because you know these are these are very complicated and risky investments but I am putting that together on you know how to open up a futures account how to trade futures and basically if you know I mean futures are you see a lot of gold medals energy futures so crude oil people will buy contracts to buy crude in the future they’ll pay you know they’ll pay they’ll contract for a certain price to pay in the future and basically they’re just saying okay I think I think oil the old price of oil is going to go up over the next month or over the next three months and I’m gonna I’m gonna play off of that and basically what it is it’s a hugely leveraged position because I can put down a thousand dollars on a on a contract on this investment and be able to invest in it’s it’s about 30 to 1 a lot of times it’s in some of these so I can invest in thirty thousand dollars worth of worth of oil barrels of oil you know so you can see I mean even so a five percent move if you’re twenty to one leverage right if you if you’ve got a thousand dollars and you invested in twenty thousand dollars worth of these contracts then you know all your gains and losses are twenty times what you had so-so a 5% move and that can be you know that’s 100 percent twenty times five is a hundred so you double your money if something goes up five percent in futures of course you know if you if it goes down five percent you just lost all your money as well so so there’s there’s definitely some risk there but I am putting that that Futures Trading video back together look at some of these others you think the blogosphere is oversaturated how niche do you have to niche a good question drill this is you know talking about some of the making money and the how to start a blog videos that we’ve run in the in the past couple of weeks and you know I go to a blogging conferences every year and every year there’s people with sale blogging is dead blogging is tool you know move on to something else and you know I mean I didn’t start my blogs until 2013 and Here I am you know five years six years later making you know six to eight hundred a hundred thousand plus a year and even in 2013 there was people saying blogging is dead you can’t make money blogging you can’t and so you know I think the trick is now is to like I’ve talked about diversify your income sources so you’ve got a blog but you’re making affiliates on there you’re doing sponsorship posts you’re doing your own product so you’re doing like self-publishing you’re reformatting your contact for content for books so you’re not relying on just one you know one income source and then like you talked about niche you know you obviously you don’t want to talk about personal finance broadly you want to talk about a part of personal finance so budgeting or investing or making money and you want to maybe talk about to a specific group so Millennials or military people or something like that so you can become an authority for them it’s all about reaching a specific group of people intimately and and personally so that they rely on you and come back and you know you can build that community really this blogging is certainly not dead you know I would you know start a blog but you know you you have some of your other assets might like maybe a YouTube channel or some other stuff and and you can there you’ll always be able to make money on a blog what else we got with three best tips for speculation simple tips if you could yeah I don’t even know what to say there I mean I I can’t because you know speculate if you’re just talking about give me three stock tips like you see on CNBC well you know what good does that do it’s not it’s not something that’s going to help you find more stocks in the future even even if I could tell you three stocks that are going to double in the next three months so you do that you make tons of money and you’re excited you’re confident you’re like hey I can do this and then you pick three more stocks just out of the blue and they all crash so you know you really you really need to look at this fundamental analysis this financial statement analysis learn how to pick stocks rather than just speculating and just kind of you know flipping a coin it’s the speculators that are that are losing their money really because yeah you might have that that one or two good picks but then you know then you have nothing to go off of them so so like we said in this in this live stream you know pick pick two or three industries in which you have deep experience deep professional knowledge or you can build that knowledge just by reading you know industry journals magazines stuff like that to understand the industry understand how its competitive and really be able to spot those best two breeds companies in there so you can find those stocks that are going to do better than their peers in that industry you take the rest of your money you just index it you get broad market market returns and then you pick me you know maybe five or six stocks within that industry that you know that you know not speculating that you know are going to do better that’s that’s so that’s investing you know investing isn’t turning on CNBC and getting you know was that one show fast money come on it sounds sexy but but come on how many people has that show actually ever helped yeah just just give me five stocks quick you know in a minute sorry I mean honestly we used to call them guaranteed loss orders and if you don’t know so glosses you buy a stock and then you immediately say to the platform to your critics say hey if that stock goes down a certain amount if they if it goes down to this amount I want to sell it right you know something obviously went wrong I wasn’t I was I was wrong about the stock and so I just want to sell it if it goes down to this point well the problem is when stocks move up and down quite a bit you know some more than five three or 5% or so so a lot of people will set their stop-loss at they say okay if the stock goes down by 10 percent from where it is I want to sell it because you know something’s wrong right it just plunged by temperature well what happens when most stocks when they go down by that much they go down by more I mean they’re that you know some news hit like you know the plane crash or something or you know Elon Musk says something about the SEC again so anyway the the stock will just crash and it’ll crash way through your stop-loss so maybe it’ll go down fifty or fifteen or twenty percent and what happens is you know it goes down from it goes it just immediately goes past your stop-loss it goes past that price and there’s nobody to buy your shares from you you know it’s just a median so basically you get you get hit it triggers your stop-loss so your brokerage says okay they wanted to sell it here there wasn’t anybody to buy it now the price is here so we’re gonna sell it for down here we’re gonna sell it for this 20% loss well what happened is is you know the the market sees this news it overreacts because the market always overreact this is what something we’re going to talk about in tomorrow’s video about the efficient market hypothesis and our 2019 portfolio update and how the market is a market of humans and they’re batshit crazy all the time okay so so you know the market always over X and what would have happened is if you didn’t have this stop-loss order yeah you would’ve woke up in the morning and oh my god the stock’s down 20% that sucks I just lost all this money but you know it comes over the day it comes back up a little bit and then you can sell or then you can decide whether you still want this stock whether you like it now whether the financials are there and that kind of thing and then you make the you you make the decision you know because a lot of this information it goes immediately into stocks and and it’s not something you can you can just set on this what else we got so don’t listen to Cramer on Mad Money I mean I got a lot of respect for Cramer he Kramer was actually a great analyst a great hedge fund analyst in his day and you know he sees kind of Conda I call he’s gotta kind of gone over the dark side and you know because because what do people want people you know I mean people don’t want to sit here and talk about financial statement analysis and and the real work that goes in here they want they want some guy leaning on a button that says buy buy buy sell say and they want excitement and they want you know hey what do you think about this talk what do you think about this stock and quick quick stuff so you know that’s that’s what sells CNBC has to sell those add spots it has to sell you know brokerage has to sell a lot of stuff and it’s not going to do that by by talking about cash flow statements and cash flow modeling you know I don’t have to worry about the money so so I just you know I talk about what I enjoy and what I think will make you a better investor you can watch Cramer it’s a it’s a Drishti and I watch it every once in a while but you know listen to what he says some of the ideas and points but don’t just go jump out and buy the stocks he recommends you know go take the ideas that he has the points that he makes and then look at the stocks and you know maybe pick one out of every ten shows that you hear because you know I mean he’s jumping on five or ten you know 10 stocks an hour and you just can’t you can’t invest that much so what else were we got here what motivated you to start this channel well I mean a lot of thanks Susan you know a lot of it was just you know I’ve been blogging since 2013 and never really felt that that face-to-face personal connection with a lot of with with the blogs you know it’s hard to blogs it’s just it’s just writing on a page right so I started looking at YouTube started looking a lot of my friends on the financial bloggers that we’ve talked about and you know that face-to-face connection they get with with the communities and work I started a started the YouTube channel up while sorry started it kind of in December 2017 so in you know 16 months 63,000 people in the community here on let’s talk money and that’s 63,000 people that I get to talk with I get to talk with you know people on the live streams here and and it’s a good feeling because there is a financial crisis in America you know what is a 60% of people say they don’t have enough money safe to cover $1,000 emergency expense in the average the average 401 K value is like $180,000 when people go to retire which is like a thousand bucks a month on top of Social Security you know there is a financial crisis in America and I don’t think it’s quite hit yet how how bad it is and it’s going to become so you know it’s kind of kind of nice to be able to create this this community you know help people with with what I’ve learned over over the last you know 10 years as an equity analyst and more as an investor and really just you know kind of have that interaction I won’t tell you that the money is not good to you know I make about thirty five hundred dollars in ads that appear on the YouTube channel every month I do right around 1,500 to 2,000 and sponsorships companies that I’ve worked with before I like the products like for example m1 finance that I use for the the stock market challenge no fee no fee investing saves you thousands I like it I use it and I recommend it and you know I get a I get a commission every time you know somebody somebody opens a opens an account so the money is good but you know honestly I did pretty well as an equity analyst you know Wall Street guys make decent money so it’s just something that I can do and you know have some fun with it and reach 63,000 people it sounds weird to say it but but yeah it’s it’s a great feeling to be able to connect face to face with with a lot of people here what do we got what else foreign real estate company said yeah I don’t you don’t have to I I don’t know what for a real estate company you’re talking about you have to give me a little bit more on that what is your opinion on Harry dents Oh Harry okay for a little bit okay chip for a little bit I you said Harry dead I was thinking Batman Oh what’s the the herod dent Harvey Dent from Batman two-face you had me there for a little bit no Harry dent I have to I’d have to I’d have to read it again I read his book a few years ago about the the generational crisis coming and I think you know like I said I have to read it again I don’t quite remember what he was talking about but I mean he’s been pitching this dark this this dark crisis for probably about a decade or more you know it started with the the huge baby boomer apocalypse so you know all the baby boomers were retiring there were gonna be taking their money out of out of investments so you know you’d have stocks crashing you know they typically older older folks two older demographics they don’t spend as much so consumer spending it’d be crashing on that would bring the economy down so a lot of this a lot that’s really dark and scary stuff it just hasn’t materialized right you know what we see a lot of with you know that the Millennials is the largest generation in history and they’re you know they’re right right getting right into their prime spending ages and in investing ages so so they’re picking up what we’re seeing as coming off of the the generation or the the baby boomers excuse me so yeah the baby boomers are they’re taking money out of their investments there they’re not spending quite as much but the Millennials are picking it right back up so so again I’d have to kind of read read back up on what Harry’s saying but you know a lot of these guys I mean not so much Harry because I haven’t seen him a lot on CNBC or Bloomberg or a lot of these others but a lot of these guys that they just they have to have the most extreme view because they want that press you know they want they have to get funds for their hedge fund so you get a lot of guys like who’s I want to say I want to say Peter Schiff a lot of these doom-and-gloom guys dr. doom himself Nouriel Roubini I haven’t seen him a lot lately because you know not all of his doom and gloom hasn’t been coming true you know you give these guys and they really suffer in a ten-year bull market because they keep you know they keep hitting on these theories in these theories and and you know people are only going to listen to them for for so long and then say you know what you preached that over the last 10 years and nothing’s happened bowing Nick Nick yeah Boeing is scary I would not I wouldn’t touch bellowing honestly and I mean first way it’s kind of surprised me how resilient the stock has been okay somebody actually I think maybe it was last week or two weeks ago is right right as that the that Ethiopian crash happened and you know stock dropped down to about 370 375 somebody in the community bought it and you know thought thought they’d get it on the rebound in it went pretty quickly up to back up to like 380 or so that day and kind of stayed around there and and I said you know what the the risk the what we don’t know is just too much it’s not worth the risk right and now we find out that the pilots did everything right they did what was in their manuals they did what Boeing told them it was a software so now we’re looking at Boeing and they’ve got you know over these last two crashes they’ve got 300 people that died that they’re pretty much responsible for so we don’t we still don’t know that what the financial implications of that are it’s actually a really surprised me that the stock is right around still I think it’s like 385 390 something like that so it surprised me that when a lot of that came out that it hasn’t come back down even more so it’s interesting that it hasn’t sold off more than it has I mean you know I just I just can’t call it a value stock at this point you know I mean nobody’s talking about about insolvency or they’re dead or anything like that and I don’t think they’ve got a that kind of a problem but it’s kind of like AT&T you know I see all these problems all these question marks and I don’t see the return the potential return in it you know so so yeah you know if everything comes out roses for Boeing or for AT&T then now you might make you might make an annualized seven ten percent a year or even even as much as eleven percent but that’s kind of the upside and you don’t know the risks on the downside the risks on the downside are much higher if they’re found you know all these civil suits that are going to be coming out going to be be filed by you know families of these 300 people you know there’s a lot of downside there and I mean there’s there’s just a lot of other stocks out there you can still get that 10 12 percent upside and not have those big question marks so yeah I I wouldn’t necessarily touch the bowing right now so what else we got what do you think about REITs love rates Reid sir I’ve got one I’ve got a retirement account and an IRA that is completely in reach you know I mean I’ve got I’ve got a lot of different accounts in different different places so it’s not that all my retirement money is in Reid’s but so real estate investment trusts but but yeah I’ve got one IRA that’s completely underrated it’s like forty fifty thousand dollars and in that one account because yeah you know I mean okay why I come from real estate right I started as a real estate as a commercial real estate analyst in college you know worked in that professionally for a while managed my own real estate portfolio so you know I’ve kind of got a soft spot in my heart for real estate you look at it and no other asset has created as much generational wealth you know I know we’ve got a present right now that that owes his fortune to to real estate and his family his family’s generational wealth in real estate okay you don’t often talk about that in stocks or bonds or a lot of other stuff so real estate is just a great asset for building that long-term wealth there’s a lot of tax benefits not only on REITs but in direct direct holdings of real estate but one thing that a lot of investors don’t you know don’t don’t look at with REITs is it’s just a great way to take some of that stock market risk off the table okay you know that the the last financial crisis was kind of an anomaly is kind of weird because you know it was a real estate crisis but if you look back beyond that you know these Reed’s these real estate investment trusts and specifically like the V&Q the Vanguard real estate trusts that ayat that I recommend to everyone they didn’t you know they weren’t one in one with with stocks you know they didn’t go down to quite as much and and that so so if you’ve got you know it’s 15 20 percent of your money of your entire wealth in real estate you know you have some in bonds you have some in stocks it’s really gonna you know level out those risks and that stock market volatility that rollercoaster that that we all see in stocks so so definitely you know look for some rates as far as investing I’d recommend the same strategy I use forth for the overall strategy you know overall stocks it was kind of like a core satellite strategy right so you have your your core whatever you gonna put in REITs in this broader real estate theme put you know most of it in one or two funds so maybe you’ve got the vnq which is the Vanguard real estate fund which is a mess in u.s. real estate companies you’ve got the it’s a Vanguard international real estate fund it’s like ex-us I can’t remember the ticker right now but but look for that one and that’s basically that’s going to give you real estate exposure outside the US so you’ve got these two funds you put most your money in that it’s going to give you a broad a broad exposure to real estate and then you maybe you pick out a few a few individual real estate investment trusts like the you know the DLR which is I use digital Realty I own that one it’s a it’s a data centers real estate company you own you know ventas which is I think B I’d have to check that the the ticker on that Ventus it’s like a health care real estate company so you pick some some really solid individual names so so yeah best dividend stocks to leave alone for the next five or ten years that’s that’s a great question actually we talked about the the videos that are coming up this Friday we’re talking about a competent in for the next thirty years okay so these are companies that are going to be safe from a lot of these these changes in the market this is this is the macro themes I’m looking at so so I’m gonna defer that question to that one and is really yeah talks about how you know how to invest three ways to invest for even longer than ten or twenty years twenty thirty years looking for companies that are going to be are going to be hit by the AI or automation companies that actually have a tailwind that are going to be driven by these demographic changes and all this other this technology and stuff like that expecting buy back soon or something like analyst yeah it’s I I haven’t talked much about buy back so that might be some other Channel last month corporate stock buybacks I saw a video in regards to gold what do you think about inverse ETS J yeah I don’t I don’t do that the leveraged or the inverse J inverse d TF square so much more of a buy and hold or longer term investor and what you see in a lot of these leverage DTS or the inverse ETFs things like that is is they have to they have to have derivatives so they’re buying futures and stuff in different different ways to to keep up this this leverage or this inverse relationship and it’s just huge costs on on the portfolio so they end up being very expensive to hold you can’t hold them for the long term because because those you know that that those expenses really weigh on returns so their short-term investments and I just don’t I don’t use them a whole lot so I well over an hour here I’m gonna I’m gonna kind of cut off here if I didn’t get to your question this video is gonna process first it usually takes about an hour to process and then show up on on YouTube please ask your question in the comments I read every single comment that I get and try to answer every single one and so so ask your question and I’ll definitely get to that you know every week we’re doing these Sundays 1 p.m. Eastern I appreciate everybody being here and like I said it’s it’s just fun to have had this kind of face to face and that’s this community that we can we can build and really look at some of these stuff that they’re gonna make us all a little bit richer so until next week I I appreciate it thank you