From well timed and timeless optimism, to risk-rating frameworks, to cutting-edge, AI-driven Q&A, plus a first-ever Market Cap Sport Present World Championship, this Rule Breaker Investing extravaganza highlights 10 outstanding episodes from the podcast’s 2024.
Here is to a different yr of smarter, happier, and richer!
The place to take a position $1,000 proper now? Our analyst crew simply revealed what they imagine are the 10 finest shares to purchase proper now. See the 10 stocks »
To catch full episodes of all The Motley Idiot’s free podcasts, try our podcast center. To get began investing, try our beginner’s guide to investing in stocks. A full transcript follows the video.
The place to take a position $1,000 proper now
When our analyst crew has a inventory tip, it might pay to pay attention. In any case, Inventory Advisor’s complete common return is 901% — a market-crushing outperformance in comparison with 173% for the S&P 500.*
They only revealed what they imagine are the 10 best stocks for buyers to purchase proper now… and Chewy made the listing — however there are 9 different shares you could be overlooking.
*Inventory Advisor returns as of December 23, 2024
This video was recorded on Dec. 11, 2024.
David Gardner: This yr has been one for the ages, often opposite to expectations, generally to all expectations, stuffed with improvements which have modified the character of human thought and creativity, ChatGBT anybody, challenges to our assumptions, challenges for all of us at factors worthy of an X prize, there have been really clever moments, and others had been dangerous. But when we had been paying consideration, we bought higher at calculating dangers.
We treasured optimism and people who may deliver it in 2024. Sure, regardless of election obsession, nonpartisan Fools like me wish to level out by occasional turmoil, the dividend nonetheless bought paid each quarter. We had been all reminded as soon as once more, that it is the firm that you just preserve that most likely finest explains the place you are going, your future. These are ideas each well timed and timeless. What a yr. I am solely simply speaking about this podcast. Films have their Oscars, tv has its Emmys. Music has its Grammys and Broadway, it is Tony’s. I am not likely certain what podcasts have. However the one podcast I do know finest anyway, this podcast has its Besties. You deserve it, we deserve it. The celebs are again, taking a look at this yr’s work collectively, waiting for 2025, all tied up in a bow for you. Is that this truly one of the best podcast yearly? The Besties of 2024, solely on this week’s Rule Breaker Investing.
[MUSIC]
It is the Rule Breaker Investing podcast with Motley Idiot co-founder David Gardner.
David Gardner: Welcome again to this presumably probably the most particular version of Rule Breaker Investing this yr. Cameos from lots of my finest company this yr, reflecting again and searching ahead. It is our Besties of 2024. I’ve recognized 10 of my favourite podcasts that we introduced you this yr. These should not ordered. These should not ranked in any method, form, or type. However wanting again and pondering by the roster of the 50 podcasts we have achieved thus far in 50 weeks this yr, I assumed, what are 10 that stand out to me? In all probability to you. Why not speak briefly about them and when potential, have some voices returned to share some reflections, each in regards to the yr that was and the yr that will likely be? Now, once more, these should not ranked.
Of the 40 podcasts that aren’t included right here, I would not need anyone to suppose that I did not suppose they had been actually nice, too. I like all my youngsters. However you’ll be able to solely match a lot in a Besties and similar to the Oscars and Emmys and Grammys and Tony’s, in the long run, you must choose just one or right here, solely 10. After all, an enormous cause for doing the Besties yearly is to encourage you in the event you did not hear any of those 10 podcasts. In reality, to return and pay attention, I feel you may actually be educated, amused, and enriched.
Now, earlier than I get began, I wish to point out subsequent week’s podcast, and that is the Market Cap Sport Present. Emily Flippen and longtime Idiot producer Mac Greer will likely be right here competing in America’s twenty seventh favourite sport present. I do not suppose we’re within the prime 25 anyway, however for buyers, I hope we’re #1. Get the wooden within the fire, invite the in legal guidelines over time for a heat cider, conventional or laborious and light-weight it up with us subsequent week with the Market Cap Sport Present, Vacation Version that will help you shut out the yr. That is the second final podcast of this yr, however let me, particularly, additionally point out our final podcast of the yr, which is, in fact, your mailbag.
The rationale I am underlining that’s as a result of we’re recording each of these podcasts that I simply talked about, early subsequent week. That method, Dez and I can get pleasure from our holidays, and you may, too, figuring out that we’re bringing you superior podcasts to shut the yr. However we’re doing them forward of time, so we now have further time with household and pals. Thus, if you would like to be featured on the yr finish mailbag, you have to write to us immediately. We’re recording that subsequent week. We’ll want to listen to from you now or proper after ending this week’s podcast or over the weekend. Anyway, did I get it proper with my Besties picks? Did I overlook a gem? Did one among my all star company enhance your life this yr? Do you might have a narrative for us? The e-mail tackle is [email protected], and, in fact, you too can tweet us at RBI podcast.
To summarize, subsequent week the Market Cap Sport Present, the week after the yr finish mailbag. However we have to hear from you immediately if you would like to be thought-about for the mailbag. Now, women and gents and Fools all over the place, the pink carpet has been rolled out, you might be invited. We welcome you to this yr’s Rule Breaker investing podcast Besties full with our personal theme music. Chosen specifically by my producer, Dez Jones. Dez, thanks to your nice first yr with this podcast. I do know the method for choosing the theme music for our Besties might be onerous, generally multi layered. One of many larger challenges on this planet of leisure, if I’ll, the Besties theme music every year. Dez, I am questioning the way you got here up with this, the method what did we find yourself with?
Desiree Jones: We right here to take a look at the harmonies. I am fascinated about the totally different devices, a whole lot of totally different households of devices. We needed to break it down and actually construct it again up. It was undoubtedly a course of.
David Gardner: Dez, you are any individual who’s, I feel you are knowledgeable caliber performer on the viola. Is there a viola included on this yr’s Besties music?
Desiree Jones: Not this time round, however I am unable to make any guarantees on the subsequent time, so time will inform.
David Gardner: We’ll each come clear as a result of this yr’s Finest’s music was truly supplied by longtime listener Erick DeVore. Those that had been listening in August of Investing within the Fools I sing or keep in mind, Erick, knowledgeable composer who’s achieved music for movie, TV, and video video games and is a longtime Rule Breaker listener, supplied us a ten.5 second clip, which Dez I feel you and I will likely be rocking all through these Besties. Shout out forward of time to Erick DeVore. That is Erick with a Okay at Erick DeVore on Twitter, X. Erick, thanks for being a longtime Idiot and yeah, for offering free music for us for the Besties this yr.
Bestie #1, this yr goes to optimism with Invoice Burke, which debuted on April third, 2024. Now, what made that episode stand out, was how blended actual world expertise with inspiring analysis backed views. Invoice’s clarification of optimism versus hope, utilizing his beloved Detroit Lions who’ve by no means made a Tremendous Bowl. Was not solely amusing, but in addition confirmed a nuanced understanding of realism in optimism. He went a step additional describing how our brains are plastic and malleable, like understanding at a health club. We are able to prepare our minds towards positivity, as neuroscientist Richard Davidson has proven, it is this mixture of private anecdote, science, and humor that made the dialog each timeless and well timed. Add to that, Invoice’s vivid portrayal of immigrant optimism, exemplified by an opportunity encounter with a Korean Uber driver in New York.
The episode grew to become a lesson in perspective. Simply as his years on the Climate Channel taught him that, nobody cheers for forecasters once they get it proper, solely once they’re incorrect, Invoice reminds us that individuals usually deal with the unfavourable. But by staying alert to small acts of kindness within the streets of Manhattan, we are able to rediscover our shared humanity and notice how usually our climate forecasts, our fellow residents, and, certainly, our world do get issues proper. This uplifting message could not be extra related in a world anxious for causes to imagine once more. The person himself is again to affix with you and me right here on the finish of 2024. Invoice Burke, thanks for that podcast we did again in April and welcome again to Rule Breaker Investing.
Invoice Burke: It’s so nice to be again, and I like that journey down reminiscence lane. I would forgotten a few of these issues. I additionally respect the present of with the ability to point out the Detroit Lions. Now, again in April, would I do know they’d be 12 and one proper there, my bio on our web site says he is a lifelong optimist (he must be. He is a Detroit Lions fan.) [laughs] In some unspecified time in the future, I might need to alter it. That is loopy.
David Gardner: I feel you are proper. Perhaps that time is now, Invoice. This could not be the primary time {that a} galvanic second occurred on a Besties podcast the place any individual made a dedication to alter the course of the long run.
Invoice Burke: That is it. I owe it to you. Who knew?
David Gardner: I’ve two questions [laughs] for you, Invoice Burke. One’s I will be asking my gifted company all through this hour. Any additional reflections since on that podcast we did collectively or on optimism on this planet at giant?
Invoice Burke: Positive. In reality, you simply hit on it once you stated the Lions as a result of we additionally talked in regards to the Tigers. In actual time, in that interview, you helped me crystallize my fascinated about hope versus optimism. The analogy we used was the instance was if the Tigers are down by 9 runs within the ninth inning with two outs, I am not very optimistic, however I nonetheless have hope. If the Lions are down by 9 factors with two seconds left, neither am I optimistic [laughs] nor do I’ve any hope. It is bodily inconceivable. That has actually caught with me and also you and I labored it by. It was, like, a remedy session. It was nice. It is actually useful method to consider it. It additionally helped me perceive a part of the romance of baseball. There’s all the time that hope. So long as there’s an out left, it is a timeless sport with out a clock, besides a pitch clock. That actually caught with me, which was one thing.
David Gardner: That sticks with me, too. Thanks for bringing that again as a result of I feel a whole lot of us, listening to us proper now, respect sports activities. We frequently make sports activities analogies on Rule Breaker Investing. I am not saying you must love sports activities to hearken to this podcast, nevertheless it’s further enjoyable in the event you do. Even when I’ve a buddy, we’re simply speaking about optimism, there we find yourself on sports activities, and that analogy is so excellent, Invoice, since you had been proper. That was your contribution on that April third podcast.
I hadn’t actually thought of that earlier than, regardless that I’ve watched any variety of baseball [laughs] and soccer video games in fact of my 58 years. But it surely’s true that baseball is such a sport stuffed with hope, if not optimism, as a result of you’ll be able to all the time hope with yet another out spared, you’ll be able to all the time hope we are able to come again and so respect that time. Invoice, what’s a want, an fascinating thought or a prediction that you’ve got for the yr 2025?
Invoice Burke: I’ll go along with a want that is likely to be an fascinating prediction [laughs] How about that? I’ve a sense that 2025 would be the first yr in many who we truly reduce on our use of social media and information consumption. I am going to inform you why I feel that just a few causes. I feel for youthful individuals, I feel Jonathan Hight has created a legit or has contributed at the least, mightily to a legit motion to essentially take into consideration social media, smartphones and our children. We’re seeing momentum behind that. I’ve to say, that is after I’ve truly studied a good quantity each anecdotally and studying these books, and I feel he is actually onto one thing. I additionally imagine that on the opposite aspect of this election.
I do know I’ve talked to sufficient individuals, so that is all anecdotal, however I feel individuals have stated, I am exhausted. I am unable to do that anymore, I am unable to preserve this up, I am unable to examine every thing that comes out of candidate X’s mouth or candidate Y’s, I am unable to do it. I’ve to take a break. I’ve bought to get my sanity again and my hopeful prediction. As a result of I feel this is able to be an excellent factor for all of us, I truly suppose our consumption goes to drop subsequent yr, and that’s my daring prediction for 2025, and it’s an optimistic one as a result of I feel it might be an excellent factor for all of us.
David Gardner: Coming from you, which means quite a bit, and I agree. It’s daring and it will be fascinating. I do not know in the event you’re truly scoring that, in case you have a single metric in thoughts that you will be eyeing.
Invoice Burke: I do not. I do not know the place I can measure. I do not know who forecasts that or who publicizes that.
David Gardner: Let’s simply go along with the efficiency of Meta Platform inventory. I do not know [laughs] However we wish that to go up, regardless that individuals are going to be utilizing it later.
Invoice Burke: Let’s conserving shares out of this. I need metrics of utilization.
David Gardner: You are proper. You possibly can take into consideration that, and that is your area. We needn’t have a solution for that now. I actually respect that thought, although, and I agree on the research and the work being achieved, particularly about chopping smartphones out of colleges and faculty use, which is beginning to take root in some states or at the least some jurisdictions and that is actually fascinating as effectively. Anyway, Invoice Burke, what a delight it was to spend this time collectively right here on the finish of 2024, and I stay up for checking again. We could? Someday in 2025?
Invoice Burke: I might love that, David. It is all the time an amazing pleasure.
David Gardner: Idiot on, my buddy.
Invoice Burke: Thanks.
David Gardner: Bestie quantity 2 goes to Calculating threat Foolishly, quantity quantity 3, Kinsale versus Chewy. It appeared on January twenty fourth, a lot earlier this yr. The podcast had two analysts be part of me, we went by my 25 level Danger framework, a framework that teaches Rule Breaker Buyers to do one thing most different buyers and even skilled analysts not often do. That’s put a threat score on a inventory. An precise quantity backed by a framework like seven or 13, as an alternative of simply saying a inventory is one among my least favourite phrases, medium threat, no matter which means. Calculating threat is one thing we have achieved on this present solely two different instances up to now, first shared in 2016. Then as soon as once more in 2021. It is all the time a pleasure to ask in two Motley Idiot analysts to assist take us by the 25 level threat score framework. On this case, it was Motley Idiot Chief Funding Officer Andy Cross, taking a look at Kinsel and Motley Idiot analyst and advisor Emily Flippin taking a look at Chewy. In reality, spoiler alert, we will hear from Andy a bit bit later this present, and we will hear from Emily subsequent week on the Market Cap Sport Present. However there have been three nice issues about this episode. I feel the primary is a tangible methodology.
Once more, as an alternative of obscure phrases like medium threat, we bought a transparent numerical threat score. We took one thing fuzzy and made it actual and utilized it to Chewy, a very talked-about inventory amongst Motley Idiot members, and Kinsel, a really fascinating inventory amongst Motley Idiot members, one effectively like, simply not as a lot of a shopper model identify. The second factor I feel that was nice about this episode was two totally different corporations, however the identical system. We tackled each Kinsel and Chewy, however we used the identical threat framework and utilized them to 2 wildly totally different shares.
The third and closing factor I wish to underline, it was a listener empowering week January twenty fourth, as a result of by the top, everybody listening knew tips on how to charge threat themselves and why that issues. We’re turning idea into the sensible on a regular basis investing talent of fascinated about and estimating threat, one thing that issues to all of us. I do need earlier than we transfer on, outline briefly how I take into consideration threat. Danger for me can imply many issues, however after we speak in regards to the inventory market, particular person shares, threat is the probabilities of you shedding a considerable portion of your unique funding over a significant period of time. Lots of people have a tendency to consider threat as volatility, the Beta, so referred to as, of a inventory and its actions. I’ve all the time disagreed. I feel the danger we’re attempting to keep away from is that we’d lose a whole lot of our cash holding for an extended time period.
That is actually deadening to a portfolio’s efficiency. That is what threat is, and that is what we’re score with our calculating threat quantity 3 framework. This one goes residence a winner, and that is why it is Bestie quantity 2.
Bestie quantity 3 occurred in mid September of this yr, when Rand Stagen joined me to debate long run management, enterprise, and life. Founding father of Stagin Management Academy, Rand Stagen exhibits us that significant transformation in enterprise, investing and life requires affected person, steady effort far past fast fixes, and by treating management development like a long run funding. Rand’s strategy parallels profitable inventory investing. What we speak about on a regular basis on this podcast, compounding returns constructed up over a long time, somewhat than chasing quick time period wins. What wins in investing additionally wins in enterprise. Rand urges leaders to combine function with revenue, see compassion and authenticity, not as comfortable extras. However as strategic necessities that elevate each efficiency and humanity.
David Gardner: In reality, one among my favourite exchanges with Rand was when he was speaking about how individuals need a fast repair, enterprise leaders will strategy him hoping he’ll work on a two-day program the place he and his crew are available in at their offsite and supply management recommendation that may construct belief. Rand, what I keep in mind you saying is critically? Do this in two days. Welcome again to Rand Stagen. Rand, congratulations in your Bestie.
Rand Stagen: Properly, I used to be smiling as you had been telling that final piece of the story and earlier than we start, I wish to lengthen my gratitude for being included on this prestigious award. I assumed that in the course of the summer time after I introduced the Stagen school collectively for our annual crew retreat in Dallas, and we had a really severe competitors as a corporation. It was a 40 yard sprint. I participated. I used to be so proud to win my age group, regardless that I used to be the one one within the above 50 age group. I assumed, David, that was going to be the spotlight of 2024. However no, successful a Bestie will now go down for me because the spotlight.
David Gardner: You are inspiring me to suppose that we have to make this {hardware} sooner or later. I am sorry it is simply digital.
Rand Stagen: I assumed I used to be going to get one thing within the center. I am very upset [LAUGHTER] Properly, so long as the music for the 2024 besties outdoes the 2023 music, which was fabulous. I will likely be high-quality.
David Gardner: Owen, clearly, it has, and listeners, because you’re quantity three already will acknowledge that. I am fairly certain Rand, initially, we had an amazing change simply close to the top of that podcast on September eleventh of this yr, the place you shared a few of your favourite quotes, which I assumed had been great. I am hoping perhaps you may deliver one or two, perhaps only one, as you want, again right here. However I do have my two questions for you first. You prepared?
Rand Stagen: I am prepared.
David Gardner: First query for you. Rand Stagen, what’s a mirrored image you’ve got since had, albeit about three months later about that podcast that we did collectively or extra broadly about management? Take it anyway you need.
Rand Stagen: Properly, you opened up this phase with the acknowledgment that those that are listening are clearly followers of compounding as I’m and our group is an advocate for. You talked about how the identical rules of making compounding returns and investing present up in enterprise. What I wish to usher in that we did not get an opportunity to speak about in September is that those self same rules have the context in life, too. So it is not simply investing. It isn’t simply enterprise. It is also life.
After we take into consideration the timelessness of those rules, we didn’t have an opportunity to return into the really lengthy arc of time in our first dialog. If we had the time to do this, I suppose, pun supposed, we’d have talked in regards to the Greeks and we might have talked about how they’d a recognition of the 2 sorts of time. Chronological time, that horizontal time that we reside our lives by after we’re in that rat race within the scrambling nature of urgency versus the vertical model of time that they referred to as chiros and they’d consult with that as divine time. Some individuals would possibly give it some thought as God’s time and even timeless time. So I noticed we did not get an opportunity to return far sufficient, just a few thousand years, at the least.
David Gardner: That could be a great reflection. A key theme of this yr’s besties is the well timed and the timeless and I did not even immediate you with that. In reality, it simply began rising naturally by this week’s present. You have fantastically spoken of one thing I hadn’t even ready you to do. That is referred to as synchronicity, my buddy.
Rand Stagen: That is proper. You and all of us. We’re in a jazz ensemble proper now and it is simply rising. I am going to herald a quote. It is a quick one and that is from John C Bogle that I suppose most of your listeners will know is the founding father of Vanguard and we misplaced him, I suppose, a number of years in the past. However his quote, which is a brand new one, which been added to my listing since September, “Time is your buddy, impulse is your enemy”.
David Gardner: “Time is your buddy. Impulse is your enemy”. What do you suppose he meant by impulse?
Rand Stagen: I feel that he meant the impulsiveness of seeing shares go down and turning into captured by concern and panic and really pulling out of the market when instances are robust and chasing when instances are good and so is the sample, shopping for excessive and promoting low is what most buyers finally create for themselves once they’re being pushed by reactivity and impulsiveness. That is my interpretation.
David Gardner: So effectively put, Rand, and there’s synchronicity electrifying this week’s podcast now as a result of we simply did it. The third type of time, I am making that up synchronicity. [laughs] I used to be simply checking longtime listeners to this podcast will keep in mind Jack Bogle on this podcast. In reality, let me have a look at it. It was this very week in December of 2016. Love Letter to Jack Bogle was the title of that week’s podcast. Jack bought wind of it and we reached out to one another, and he got here on for an interview the very subsequent week. That was December twenty first, 2016. Anyone can google it. Why We Make investments plus Jack Bogle interviews. A love letter that bought a solution one thing I am going to all the time respect.
Rand Stagen: Wow, what a tremendous expertise. As you had been describing that concept of a love letter Mom Teresa was as soon as quoted as saying, “I’m a bit pencil within the hand of a writing God sending a love letter to the world”. You consider a lot of what we talked about in September and what we will speak about proper now could be the concept there’s this dimension of time after we’re fascinated about our investments, we’re fascinated about our enterprise, after we’re fascinated about our household and the alternatives that we wish to make that’s past rational pondering. It requires a religion, it requires a belief. It requires in some methods, surrendering to win the paradox right here. How do I give up to my very own, let’s return to John Bogle, to my very own impulsiveness, to my very own reactivity, and the way do I truly simply loosen up into the lengthy sport?
David Gardner: Find it irresistible. Shedding to win, once more, a bit bit associated to surrendering to win one among my key themes by this podcast. So Rand, thanks a lot. I do wish to mirror that you just and I’ve gotten to spend a while collectively through the years. I feel, the inventory market doubles each seven years on common. So which means in the event you’ve been collectively 14 years, which I feel is about how lengthy I’ve recognized you.
Rand Stagen: That is about proper.
David Gardner: At market pacing, 9-10% compounding, which means we’re 4 instances higher appreciating the opposite than we did 14 years in the past. I am wanting ahead to the subsequent seven and the seven after that. Rand, it would even be between you and me. We’d speed up quicker than 9-10%.
Rand Stagen: I wish to imagine that we’re beating common. Particularly that we had been collectively on the Aware Capitalism convention and I awakened after the primary night time of being there and I assumed to myself, why do I not really feel rested? I used to be like, I used to be with David Gardner at one o’clock within the morning being overserved wine on the fireplace pit. I truly suppose if we spent an excessive amount of time collectively, we would truly decrease our return. I feel we’re proper on this optimum place in our relationship proper now.
David Gardner: Properly stated. I am all the time late night time crew fireplace pit and I so respect you had been there as effectively [laughs] Rand, let me ask you my parting query, which is pondering of the yr forward now, Rand Stagen, what’s a want, an fascinating thought, or a prediction you might have for 2025?
Rand Stagen: So I’ll go along with want. So now that we’re on the opposite aspect of the presidential election and we’re nonetheless right here. The civilizations nonetheless right here. The Web’s working, every thing’s working and there was such a there was such this catastrophic predictions, and our nation is powerful and has a robust basis. My want for our fellow Individuals and actually for individuals who are combating hyperpolarization all all over the world, is that we are able to begin to see a few of the finest in one another, particularly these which can be on reverse sides of points, as an alternative of solely seeing after which amplifying the worst in one another. My hope is that our shared humanity can truly be part of the calculus. I like disagreeing with individuals. We get higher by discourse and I wish to proceed to embrace that, however I would like us to humanize our opponents a bit bit greater than we now have within the final 4 years.
David Gardner: That could be a stunning want. I feel wishing is step one to creating one thing come true. Rand, thanks for serving to us visualize a greater yr 2025. I do not know that the inventory market can have a greater yr as a result of it has been a fairly hopping 2024 and 2023, by the way in which, however I all the time suppose the market’s going up yearly. Rand Stagen, thanks for that thought, and for that podcast we did collectively in September and I am wanting ahead to continued affiliation over the airwaves with you in 2025.
Rand Stagen: However I bought to interrupt a rule. I bought to cease you from stopping. I’ve one other prediction. My prediction is that I will likely be invited again to the Rule Breaker podcast or return look in 2025 and that it is going to be such an excellent podcast that I will likely be thought-about for a bestie as soon as once more [laughs] That is my prediction, that is going to occur. I am simply going to you stated, all of it begins with dreaming and hoping. I feel I’ll have to simply personalize that and make that a part of my manifestation for subsequent yr.
David Gardner: that I am honored that you’re so centered. You might be that centered on that prize. You deliver one thing particular to this podcast, Rand, thanks a lot. Blissful holidays to you, my buddy and see you in 2025.
Rand Stagen: Blissful holidays.
David Gardner: Bestie quantity 4 proved how rewarding it may be sometimes step off the trail, attempting to find new locations and Rule Breakery insights. I had wished for a while to take a look at artwork as an funding. What would breaking the principles imply if we’re speaking about artwork and is artwork an excellent funding? Properly, on this planet of artwork investing, the artist is not the only creator. Our new buddy Tonya Turner Carroll stated, and I quote, “The artist is barely half of the expertise. The collector brings the opposite half.” Tonya and her husband and enterprise associate, Michael Carroll, are each longtime gallery homeowners and advisors and on February 7 of this yr, they confirmed us tips on how to up your sport when investing in artwork. Construct relationships with insightful sellers, perceive the artists cultural and historic context and get your hands on iconic material that speaks in a well timed and timeless method. Approaching investing in artwork on this method can rework a mere buy into one thing that resonates deeply and extra valuablely.
Properly, the Carolls are again, Tonya, Michael, initially, congratulations in your Bestie. Despite the fact that it is all digital, there is no fancy inventive {hardware}, sadly, this award. If we ever do fee a trophy, guess who I am calling.
Michael Carroll: Wait, who?
David Gardner: You each.
Tonya Turner Carroll: We’re actually joyful to be right here.
Michael Carroll: Blissful to be right here.
Tonya Turner Carroll: Honored to be on the besties.
David Gardner: Thanks. Tonya and Michael, inform me, the place are you proper now?
Tonya Turner Carroll: We’re exterior on a collector’s stunning balcony in Fort Lauderdale, Florida. We simply wrapped up the Artwork Basel Miami week. We had been exhibiting for a complete week in Miami and we’re putting in proper now portray in a brand new buddy’s residence. We’ve a brand new collector that we met on the artwork truthful, and we’re hanging that paintings on their wall after an evening.
Michael Carroll: They made us lunch. We’re right here. We could not be happier. We have been in an enormous tent for per week and now I’m wanting on the water.
David Gardner: I actually want that this had been a video podcast since you are excessive up wanting over a stunning view of Fort Lauderdale, Florida, Blue Skies. You guys clearly have had a enjoyable week and congratulations. I do know Artwork Basel is a reasonably large deal and I am certain you made it your playground over the previous couple of days. Properly, Tonya and Michael, I’ll ask you an identical two questions. I am asking every of our visiting visitor stars coming again for our besties. Let me flip to you first, Tonya. Any additional reflections since on that podcast we did collectively or any developments within the artwork world or in your personal pondering?
Tonya Turner Carroll: Sure, truly. I am glad you requested. Doing the podcast with you actually made us dig deeper into our personal observe as artwork employees. So one factor that we have achieved is we now have labored to get licensing ourselves on our personal crew to have the ability to present one thing else that we would not have talked a lot about on the podcast earlier?
David Gardner: Inform me.
Tonya Turner Carroll: It is a member of your crew., you have to have a trusted crew, a trusted artwork advisor who can assist you make a good selection that is private to you. However you additionally have to have any individual on the opposite finish of it and that is one thing we have all the time achieved, however we have not been in a position to articulate it. That’s to make a bridge between the person who has already invested in artwork and what they do with it once they wish to both promote it or donate it to a museum or make it a part of their property planning. What we have achieved is delve into skilled appraisal certification in order that we are able to now monitor values as they rise and fall yearly of sure artists and artworks and determine developments in order that we are able to inform if an artist is on an upward trajectory or a downward.
David Gardner: It is like a inventory.
Tonya Turner Carroll: I suppose it’s. It is necessary as a result of the artwork historian, I suppose, in our group, I am the artwork historian and I’ll all the time inform you that somebody like Charles White is any individual that you should purchase. He is an unbelievable artist. However there are specific instances, clearly the worth of a Charles White work goes to be increased than it is going to be in a yr. The one method you’ll be able to know that’s to know which museum exhibitions are upcoming, if there are any main auctions which have simply occurred. One factor I might add to what we stated beforehand is that, along with an artwork advisor, you have to have an actively engaged appraiser in your crew of consultants.
David Gardner: That is actually great, Tonya. I am glad each for the non-public development that that sounds such as you’re attempting one thing new, you are getting larger with what you are doing, but in addition connecting it into one thing that a whole lot of us would respect as buyers, which is that you have your finger on the heart beat and there is some extra well timed instances to purchase or to promote than others. Michael, let me flip subsequent to you and ask you any additional reflections on our podcast or in your 2024.
Michael Carroll: I’m with Tonya on this. It is turn out to be extra obvious that de-accessioning is sort of as necessary as accessioning. So we toss the phrase collector round as sellers, nevertheless it’s actually anybody who buys a bit of paintings. However what number of headlines have you ever seen these days that say the youngsters don’t need the stuff? [laughs] Persons are up in opposition to the sundown of the property tax exemption. That is all actual world stuff, it is not artwork world particular. It is very clear that extra planning must be achieved in a really explicit method. Cultural objects aren’t money.
A complete assortment of issues isn’t going to go to at least one museum. It is simply not going to occur. In a method, museums do collectors favors by taking their cultural objects as a result of they’re promising to maintain them in perpetuity. We as donors suppose that, we made this nice present and we’re serving to out. That is true, too. But it surely’s an infinite dedication from a museum to take a bit of artwork or an vintage or an object of some variety. That course of can take years for one object. I am guessing that the property tax exemption goes to get kicked down the highway, I imply it is not going to shut to be the decrease 13 or $14 million for a pair.
Michael Carroll: Nevertheless, this stuff play together with politics, and so they’re actually, actually, really not predictable. Except you’ve got bought an excellent plan, and until you are speaking to your youngsters about what they need, and if they do not need 95% of what’s hanging in your partitions as a result of they do not have the tales, like we who purchased the items have the tales, then it may be a much bigger drawback for the youngsters and the legacy that you just as a collector, have tried to create to inform tales and to have recollections of assembly these individuals and the travels and the artists and all. Nice wine you drank hanging round. All that is going to be offered at a fireplace sale. That is one thing that is actually been on my thoughts, and we’re increasing our enterprise traces to assist individuals do accession as a result of there’s a whole lot of nice work popping out of collections as as acquire.
David Gardner: That is one thing that almost all of us who should not a part of the skilled world do not take into consideration fairly often, however that formal course of by which a museum or gallery or different establishment completely removes paintings or objects from their assortment and what occurs to it. You each are serving to us suppose. There’s a bit little bit of Wills States pondering occurring right here too, by way of what’s our legacy, pricey listener? What’s your legacy, and are you going to make sure that it may be what you anticipate it to be? Properly, thanks each for a few of that pondering, persevering with to teach us. Fast query too shut, then I am going to flip again to Michael first for this one, Michael, what’s a want, an fascinating thought or a prediction that you’ve got for the yr 2025?
Michael Carroll: An fascinating thought is that I need paintings to get extra fascinating once more. The artwork world, at the least the sellers particularly, appear to have taken a break from pushing the envelope. Election cycles all the time take the wind out of the artwork market, and there is a secure haven to make use of, like, a monetary time period world of motion into items of recognized artists, 40% of the artwork market. That’ll swing again and that particularly after I say thrilling, I am actually speaking about youthful artists, the brand new methods of claiming, the brand new methods of pondering that that materials goes to be extra current as a result of it is actually been out of the attention of the artwork gala’s and the sellers and the general public for an excellent yr or so. Something within the museum usually talking, that is been curated two years in the past or so. That is my want.
David Gardner: Thanks, Michael, for that want. Tonya, turning to you to shut. A want? An fascinating thought or a prediction for the yr forward.
Tonya Turner Carroll: A want is that the whole injustice of there being just one.2% artists of colour in museum everlasting collections, and solely 11% ladies artists in everlasting collections of museums. My want is that collectors would come ahead and particularly fund acquisitions for museums of works by these underrepresented artists. My prediction is that that may solely occur if individuals like us have symposiums the place individuals who could be these buyers can meet the curators who need the works by these artists, however cannot afford them and that a few of these collectors step up and begin funding these necessary acquisitions.
Michael Carroll: Yeah, it is not clear tips on how to donate a piece, and that is maybe a topic for an additional time, however there you might have it.
David Gardner: Properly, thanks, Tonya Turner Carroll and Michael Carroll, for the podcast that we did collectively earlier this yr, which goes to proceed to be a useful resource that I am going to level anyone to who’s curious about investing in artwork and doing it higher. I might say extra F, Foolishly. From one F Idiot to 2 others, thanks each for becoming a member of us and making a Bestie for 2024.
Tonya Turner Carroll: Thanks.
Michael Carroll: Thanks, David.
David Gardner: Bestie quantity 5 was one I would been planning for years. I talked final yr about how I might do it this yr, which I did. On July tenth, 2024, evaluate of Palooza Ultima 35 inventory samplers in 10.5 chapters. This evaluate of Palooza Ultima podcast arose from a singular experiment. Over six years on this podcast, I picked 30 totally different 5 inventory samplers, all tracked for accountability and studying. Impressed by each enjoyable and seriousness, every sampler had a theme, generally foolish like all shares beginning with the letter M as in M, good.
Different instances well timed, like 5 shares for the coronavirus. I hope that this playful creativity would supply listeners not simply inventory picks, however ideally, ideally, a grasp class in long run market beating funding methods, all taught transparently and in actual time, accounting for each loser and winner. What makes this episode of bestie is its grand finale nature, a meticulous closing accounting of all 150 inventory picks and their multi yr journeys. Towards an S&P 500 common achieve of 40% over these commonplace three yr home windows, these samplers averaged a 76% return, delivering a placing margin of victory. That is 150 shares successfully placing 76% returns up in opposition to 150 rivals, the S&P, placing up 40% every time. This in a world, in fact, the place individuals are influenced, endorsed, taught in some circumstances, to not choose particular person shares as a result of you’ll be able to’t beat the market. That will simply be luck. Properly, I’ve disagreed with that assertion my complete life lengthy, and in many various contexts, Motley Idiot Inventory Advisor, Motley Idiot Rule Breakers, the unique full portfolio, that launched after we launched day 1 on AOL in August of 1994, my CAPS web page for individuals who comply with Motley Idiot CAPS, in each one among these contexts, all of which happened over years and years, not only one market cycle.
I’ve crushed, certainly, I might say crushed the market averages, together with those that merely copied or adopted me, which is what you possibly can together with these 35 inventory samplers. For these listening to this podcast, which is, by the way in which, I feel you understand a free podcast, you are not essentially Motley Idiot members or followers. You might not know a lot about The Motley Idiot or my monitor information or investing in any respect. Perhaps you are right here to be taught. Right here was one other enviornment through which to play in some methods, probably the most public of all as a result of, yeah, tens of 1000’s of listeners and free. So, 35 inventory samplers, small baskets of shares picked each 10 weeks or so, over six years and tracked ever since. It really was an final second of enjoyable for me to attain these samplers as an entire the complete mission over the largely three yr contests they compose.
On that July day this yr, I additionally revealed one thing extra outstanding, their long run comply with by efficiency, merely persevering with to carry and monitor these shares past the three yr home windows that we gave them, reviewing outcomes from the times they had been first picked, beginning in 2015 into July of this yr, which pushed the mixed benefit of these 150 shares in the event you’re listening, you may keep in mind to now even loftier 168% return versus the market’s 102%, which demonstrates once more how time and endurance multiply your edge.
Once more, over three yr home windows, these 150 shares from large time losers like Peloton or to you to large time winners like Tesla or Nvidia , in radically totally different market environments, effectively outpaced the market. I’ve yet another particular replace for this, bestie. Let’s replace these 150 shares now. Up to date by this Tuesday morning, December tenth, as we document, these 150 shares purchased and held all through now at the moment are up 239% on common versus the S&P 500 119%, which means these proportion factors of common at efficiency have now turn out to be plus 120. In reality, we have now doubled up the S&P 500, 239-119. However sufficient about that, I do know it comes off as bragging, and that is a whole lot of numbers. However in my evaluate of Palooza Ultima, I hope that listeners, each new and previous will likely be amazed by tales of sudden COVID period spikes. Dizzying collapses within the face of a lot victory and the enduring lesson that shedding to win is crucial for Rule Breakers success. In that podcast, I inform the unbelievable to me story of the 5 shares for the coronavirus, which as a sampler famously soared 240% of their first yr, then fell into deep losses and have turn out to be the worst performing 5 inventory sampler of all. In reality, updating to now as a basket, these 5 shares are down 8.3%.
That is not horrible. They’re simply down 8% on common. The issue is the S&P 500 from April eighth, 2020 is up 121%. As a basket, they’re -129. Excellent news you’ll be able to lose badly and nonetheless win nice, which is such a elementary lesson of Rule Breaker investing. The most important takeaway, I feel, from this experiment and from our evaluate of Palooza Ultima Bestie is timeless. True wealth constructing is not about by no means shedding. It is about all the time holding on to your largest winners. In a world the place quick time period fears abound, these samplers proved but once more that taking part in the lengthy sport and trusting in development and innovation creates not simply victory however a legacy of ever increasing Alpha. It is a becoming and triumphant ship off to a six yr journey that has now turn out to be a 9 yr journey and counting. That’s sufficient for a bestie.
On to Bestie quantity 6. Now on 1st of Might, Might Day. We revisited the world of dividend investing on this podcast. It is a topic usually overshadowed by the flash of dynamic Rule Breaker shares, however nonetheless elementary in constructing wealth and stability. Joined by longtime Idiot advisors Matt Argersinger and Buck Hartzell, we examined why dividends have grown much less widespread over a long time, citing low rates of interest, regulatory modifications enabling simple buybacks, and the tech pushed choice for reinvesting over getting payouts. But we additionally famous that the tide may flip as market circumstances shift. We tackled the sensible virtues of dividends from their function as a money cushion throughout downturns to the self-discipline they implement on corporations, and we clarified widespread misunderstandings, highlighting that dividends do not sign the top of an organization’s development and that not all buybacks equate to real shareholder returns.
This podcast receives a bestie for the prime quality of my company. Flat out, each Matt and Buck have been serving Motley Idiot members for years and years. It was a delight to have such gifted pals again on this podcast, and in the same method that I loved my dialog about investing in artwork with the Caroll’s effectively, dividend investing dialogue additionally presents, I feel, a pleasant in to the younger of Rule Breaker Investing. Matt and Buck deserve a return cameo on this podcast. Matt Argersinger, Buck Hartzell, nice to see you.
Matt Argersinger: Nice to be right here, David. Thanks.
Buck Hartzell: Yeah, thanks. It is nice to be again, David.
David Gardner: Thanks. Matt, let me flip to you first. You guys know my two questions. The primary query, Matt, be happy to talk to a few of the corporations we mentioned seven months, two quarters in the past. Matt, what’s the reflection you’ve got had since or one thing you’ve got realized since our podcast in Might?
Matt Argersinger: Properly, I’ve to say, David, the three corporations I shared on the finish of that podcast have all had fascinating summers slash falls. The primary one, RPM Worldwide, ticker RPM. It lately hit a brand new all time excessive, which is nice. Most significantly, as a result of we love speaking about this in the course of the Might present, nevertheless it simply raised its dividend by 11% in October, and that was the 51st consecutive improve within the dividend for RPM.
David Gardner: Incredible.
Matt Argersinger: Proper on monitor, and the inventory is, you are an all time excessive. The second firm was Hershey Firm, which we had enjoyable with on the time. It was buying and selling round $190 a share it is roughly proper there proper now. Cocoa costs, which had been at document highs again in Might, are nonetheless close to document highs, in order that’s hurting the corporate. However Mondelez, the meals firm is as soon as once more, in accordance with Bloomberg, attempting to purchase Hershey. They made an try again in 2016, I imagine, rebuffed. It is a tall activity to attempt to purchase Hershey due to the character of the possession of the belief that is there. We talked about that within the final present.
David Gardner: That is proper.
Matt Argersinger: We’ll must see if Mondelez is profitable this time.
David Gardner: Yeah, Hershey, that is all breaking information this week, Matt, so very ocaron.
Matt Argersinger: That is proper. then Starbucks had a fairly eventful summer time. As you understand David, Brian Nichols, the previous CEO of Chipotle, got here on to be Starbucks CEO right here. That grew to become efficient in October. The inventory has rallied about 30% since that announcement in August that he was going to turn out to be the CEO. It is had a pleasant transfer. A number of confidence in Brian Nichols. We’ll see if he pulls it off. He has his what he is calling the again to Starbucks technique, which incorporates bettering the story expertise, growing order throughput. Two large duties, large challenges which can be going to be laborious to get proper, however he definitely has the appropriate expertise coming from Chipotle.
David Gardner: Incredible. Matt, thanks. Thanks for updates on the three corporations you talked about. That’s so F, Silly. Remembering what we stated and talking again to it, being accountable, whether or not we win or lose, you bought some good winners there. Buck, let me flip it over to you.
Buck Hartzell: Yeah. I had three corporations too, not most likely as a lot motion within the enterprise as Starbucks naming a brand new CEO. All my leaders are nonetheless there. However some fascinating stuff with the shares, I picked all three Canadian shares.
David Gardner: I forgot that is superior.
Buck Hartzell: Yeah. I feel buyers want to comprehend there’s some great companies. I feel everyone knows Shopify up north of us is a Canadian firm, however there are a whole lot of ones that individuals have not heard of which can be great. That is what I did, as a result of that is what I used to be feeling on the time again in Might. Fast replace on these MTY Meals Group. They’re the proprietor of Chilly Stone Creamery and Candy frog, in the event you’ve ever gotten the frozen yogurt from them, TCBY. The inventory is down about 3.7%, however the enterprise has carried out rather well. They raised their dividends 9.1% over the earlier yr. That is effectively forward of inflation. Additionally they are paying down debt from two large acquisitions.
They purchased BBQ Holdings, which is a conglomerate of barbecue eating places and likewise Wetzel’s Pretzels. For these of you are from Lancaster County, Pennsylvania, you understand Auntie Anne’s. It is the identical factor, nevertheless it’s Wetzel’s scrumptious comfortable pretzels. They’re paying down that debt. However the fascinating factor that I actually like is that they’re shopping for again inventory now. They’re placing a few of their capital and so they generate sturdy recurring money flows as a result of it is largely a franchise operation. I feel what you may see occur within the subsequent couple of years forward is that they’ll pay down a few of that debt, and the a number of for the inventory will go up. Enterprise goes very effectively at MTY, however the inventory’s down, so I prefer it extra.
David Gardner: How about your different two, Buck?
Buck Hartzell: Yeah, the opposite two, Enghouse is one other one the place the inventory is flat, however in simply two quarters, they’ve raised each dividends. In complete, the dividends are up 18.5% over the earlier yr. They’re sitting with no debt, document money steadiness that they get from an growing quantity of recurring revenues, near 70% of their income recurring. They seem to be a software program enterprise with $258 million in money. The enterprise is doing very effectively, and so they’ve had their fourth consecutive quarter of double digit income development. We’re sitting at a time the place it is a 10 yr low on a a number of, however but the enterprise is rising properly, and so they have document money for extra acquisitions. I actually like Enghouse right here as effectively.
David Gardner: Is sensible.
Buck Hartzell: The final one is Brookfield Infrastructure, which is up about 40% simply from Might. That is forward of, I feel, my expectations. They had been a excessive dividend yield inventory on the time. They had been yielding shut to six%. Now it is down fairly a bit simply because as rates of interest have come down and the Fed has began to chop charges, a few of these increased dividend yielding shares have turn out to be extra preferable. I feel that is additionally taking place throughout actual property funding trusts and issues, however Matt covers these greater than I do. However I would say Brookfield Infrastructure is doing precisely as we thought. The inventory has achieved higher than I might have thought after we really helpful it, however that is up 40% since we have gone, and so they’ve raised dividends 5.8% over that point.
David Gardner: Incredible. I like proper in the course of our besties we’re getting inventory updates for dividend shares. That’s precisely what I need from my besties yearly and from my good pals, Matt and Buck. Thanks guys for updating us on the shares that you just talked about. I am fairly sure lots of people listening Half 1 or extra of them, and I am delighted to listen to that we’re doing fairly effectively. These are corporations, a few of them making information, others quiet, and but they’re all paying and/or elevating dividends. That was the principle level of dividend Fools Quantity 2, our bestie winner. Let me shut it out. I am going to flip again to you Buck. First, what’s a want an fascinating thought or a prediction you might have for 2025?
Buck Hartzell: I had a whole lot of needs as a result of it is that point of yr, David. However I am going to throw my first one on the market, and this comes actually from a visit that I did proper earlier than we bought collectively in Might. I went to Patagonia for about three and a half weeks and had a while in Argentina. What I noticed after I was there was that it is actually necessary for Individuals to be exemplars for the remainder of the world and I imply that simply not solely our management politically, however of our companies and people. I feel simply collectively, after I go searching, my want for America is to simply be extra civil, to be extra crew gamers and simply achieve success. I spend a whole lot of my time on the Idiot taking a look at incentives and the way they’re aligned, and I might simply say, would not it’s great if everybody on our favourite sports activities groups had been incentivized for one factor, successful, not simply what number of touchdowns or catches or yards or no matter else, however they’re paid based mostly on how effectively the general crew performs. I really feel that method about corporations, and I really feel that method about our nation. I might simply say, be crew gamers, be extra civil, and take into consideration the end result greater than your self.
David Gardner: Properly stated, Buck Hartzell, hear hear. Matt, what about you? A want, an fascinating thought or a prediction?
Matt Argersinger: Let me additionally echo that was rather well stated, Buck, and I do not wish to must comply with that, however I’ll. I’ll simply say we have had two fairly spectacular years in a row for the inventory market. Should you go by the S&P 500, the market is up almost 30%. I do know we nonetheless have a few weeks right here, however up almost 30%. In 2023, the market was up 21%. Two improbable years in a row and David, I do know you stated many instances, the market is usually up two out of each three years. That additionally means, although, in fact, that it is usually down one out of each three years, and we have had two superb years in a row. I feel in the event you’re an investor, this doesn’t suggest 2025 goes to be unhealthy. I simply suppose it means we most likely want to go into the brand new yr aware that the chance of a down yr is increased now than it was, I feel, coming into 2024. That additionally means there are going to be alternatives. However I feel if buyers go in a bit bit with that mindset saying, hey, issues been nice, I ought to most likely put together myself for perhaps a bit extra volatility or the possibility that we now have perhaps a not so nice yr in 2025. I feel there is a Silly strategy to that, which is simply, be aware of that and search for alternatives.
David Gardner: I like it. Properly, in fact, I feel the market’s going up subsequent yr, however that is the market name I make yearly, Matt, and I am incorrect as you talked about, about one third of the time. Actually respect that thought and, I feel for lots of us, effectively, it is enjoyable to consider how good this yr was, how good final yr was, frankly, how unhealthy the yr earlier than that was and the way subsequent yr is likely to be. However I feel in the event you’re taking part in the sport that Buck, Matt, and so lots of our members play, the lengthy sport the place you make, I might say, in the event you’re making a lifetime dedication to the market and staying invested all through, I feel, A, you may do higher and B, by shopping for and holding and simply including these dividends proper alongside as we go quarter by quarter, you truly do quite a bit much less work than people who find themselves consistently leaping in or leaping out and buying and selling. I feel that is additionally a part of the magic of our dividend Fools. Properly, Buck Hartzell, Matt Argaing, I actually wish to thanks for that podcast we did collectively to your ideas and to your cameo look on this yr’s besties, huzzah.
Matt Argersinger: Thanks, David.
David Gardner: Blissful holidays.
Buck Hartzell: Thanks.
David Gardner: Bestie Quantity 7 got here on October ninth. Innovating the long run with XPRIZE, Elaine Hungenberg proved exceptionally well timed and timeless by revealing how one daring problem can spin off industries value trillions. Listening to in regards to the first XPRIZE which ignited personal area journey, we see how providing $10 million set into movement a brand new period that governments alone could not have achieved. Simply as spectacular was Elaine’s account of the wildfire XPRIZE, a visionary problem that calls for instantaneous autonomous suppression of harmful wildfires. I feel we are able to all vote for that. These and others of Elaine’s tales present that moonshot pondering can reshape not simply merchandise or industries, however whole international methods. Properly, in a yr of massive concepts, Elaine reminded us to purpose for the moon. Should you fail, you may land among the many stars. One listener mirrored, and I quote, “I simply completed your dialog with Elaine Hungenberg episode twice”. Positively a 2024 besties nominee. Her constructive vitality is thru the roof, and in a good way, she’s very inspiring and “she is”, and he or she’s again. Elaine Hungenberg, thanks for that podcast we did in October. Welcome again to Rule Breaker Investing.
Elaine Hungenberg: Thanks, David.
David Gardner: Properly, Elaine, the 2 questions I have been asking every of my treasured company this week, in fact, the primary one is any reflections on that podcast we did collectively. Now, admittedly, it was simply two months in the past, however any ideas again on the podcast or on our world at giant within the meantime?
Elaine Hungenberg: Sure, numerous ideas, David. It was a lot enjoyable. The primary thought we talked quite a bit about innovation and the artistic minds of everybody all over the world. For me, I actually imagine within the energy of contrarian pondering, and driving change. However the significance of difficult dominant narratives to create breakthroughs, they actually need to do extra good than they do hurt. It is the hidden threat of innovation. The problem of balancing daring concepts with moral or societal concerns. I’ve simply been lately enthralled with when the underestimated strategy or, the underdog find yourself being the groundbreaking resolution as a result of they do it in a method that’s surprising and is extra inclusive. We speak about this on the Motley Idiot Basis on a regular basis. {That a} highly effective collaboration of ingenuity. It raises the boat. For me, within the period of contrarian pondering, whether or not that be politically or in society, I feel it is necessary to be inclusive and to consider who you are innovating for and who these options will likely be utilized by. I am inspired by the world at giant, as you understand, however I feel that we’re at an inflection level the place, customers and buyers, particularly, have a task to play in that. That is my reflection on our podcast. That was simply two months in the past and was a lot enjoyable, David.
David Gardner: I like it. You have been all over the world. You journey greater than most individuals I do know, Elaine, and you are going to fascinating locations and assembly fascinating individuals, and we do not have time for that. However we did share a few of that collectively on a podcast. I hope anyone who missed it is going to be in a position to be impressed to return and hearken to. However Elaine, thanks for that contribution, and it does make me suppose a lot about my very own investing strategy and Rule Breaker Investing, the identify of the podcast, as a result of we actually do have a good time the Rule Breakers. As Steve Jobs as soon as stated, and Apple went large with this marketing campaign, suppose totally different and once you do, it may be a bit bit disquieting or generally you seem like a loopy underdog that has no shot however when that works out, particularly within the inventory market, we actually can get smarter, happier, and richer as a consequence. We have a good time the underdogs and the muckrakers and the dream scapers. Thanks for that very a lot, Elaine. My closing query for you is, in fact, for the yr forward, do you might have for us a want, an fascinating thought or a prediction?
Elaine Hungenberg: I do have a want, David, and my largest want for 2025 is that we’ll start seeing options for the world’s most intractable issues, not as a zero sum battle, however as a chance to unlock exponential development for everyone. The place issues like tackling local weather change or poverty or well being is not seen as a sacrifice, however as an funding. You and I do know that after we put money into good, that we do effectively. That is my want for 2025.
David Gardner: I like it. It places me in thoughts of the good Harry Truman line. I do know you understand this when Elaine, optimists make alternatives of their difficulties, and pessimists make difficulties of their alternatives. I like that spirit of searching for options. Usually in life, one of many large secrets and techniques in life to me is we discover what we’re searching for. Let’s be certain that we’re searching for one of the best issues. Elaine Hungenberg, I am so glad to be your buddy. Thanks for becoming a member of me on that particular podcast in October, which has obtained a bestie. Particularly, thanks for making time for our cameo for this particular episode. Idiot on, my buddy.
Elaine Hungenberg: Thanks for having me, David.
David Gardner: Recording the episode that wins bestie Quantity 8, made for a singular experiment. I requested ChatGPT the AI device a lot talked about on this podcast earlier than and by the world at giant to give you 5 of probably the most stunning, difficult, ingenious, useful, provocative and or Silly questions on Rule Breaker investing, and I might endeavor to reply them. As an alternative of me interviewing a visitor, I let AI interview me on that podcast, responding on to its queries. This can be a enjoyable twist. It blended emergent know-how with timeless investing rules. I used to be genuinely curious to see how effectively ChatGPT knew this podcast and what it might ask. I feel it delivered one thing particular.
This one earns a bestie as a result of it completely illustrates why we preserve pushing the boundaries. New tech like AI integrates with new pondering as a result of by the way in which, Rule Breaker investing could be very a lot new pondering for the world at giant, in addition to you and I’ll realize it. Rules like high-quality prime canine, let winners run, embrace acutely aware capitalism and by no means concern shedding as a part of successful. That is very a lot new pondering for the world at giant. Now in the event you miss the episode, anticipate just a few aha moments how human centered AI can enrich, not exchange our creativity in investing judgment. How one colossal winner can dwarf quite a few flops and why sustaining a portfolio that really displays your finest imaginative and prescient for our future is indispensable. I feel this dialog reveals one thing well timed, and that might be our consolation in experimenting with AI and likewise one thing timeless as a result of we’re all learners, adapting to new landscapes with out abandoning core values. In the end ChatGPT asks David Solutions reassured me that whereas know-how evolves, the core rules of Rule Breaker Investing and the human spirit behind them keep fantastically intact.
There was an amazing line that I bought to rock in that episode. I’ll rock it once more right here. It is from @ creator J Mac, Joanna on Twitter, X. Here is what she stated. She stated, I need AI to do my laundry and dishes in order that I can do artwork and writing.
Not for AI to do my artwork and writing in order that I can do my laundry and dishes. Should you did not hear that episode, give it a pay attention and see what you suppose. Should you loved it, know that on that day in June, a brand new Rule Breaker Investing episodic collection was born. In reality, I’ve already added Quantity 2 into it, full with some new baseball theming, the place each query ChatGPT challenges me with is like right into a baseball pitch, a fastball curve, a screwball query for ChatGPT. That was Quantity 2 a month in the past on November thirteenth, however the bestie goes to the OG, the Quantity 1 that bought us began.
Bestie Quantity 9 was, what are my favourite recollections from this podcast in 2024? Seventy three of the extra memorable minutes I spent all yr lengthy. It was our first ever Market Cap Sport Present, World Championships, that includes longtime Motley Idiot advisors, personalities, vivid lights, Andy Cross and Invoice Mann, every of whom had secured his place by first advancing from a closing 4. This was not simply one other pleasant guessing sport. This was excessive strain, excessive talent competitors at its most interesting, as they fenced with numbers, calling out tight market cap ranges and wrestling with corporations each obscure and legendary. We listeners had been handled to an epic tug of battle the place every level felt like a triumph. By the point we reached the ultimate showdown, the stress was palpable.
Our two sensible Fools had been tied, leaving a closing tiebreaker to without end enshrine one among them as our inaugural champion, the precision, the drama, the razor skinny margins, all of it. Made for a uniquely exhilating episode that showcased not simply monetary acumen, however the enjoyable and camaraderie that outline this podcast spirit. If investing is usually described as a marathon, effectively, this was the dash. An unforgettable laughter laced coronary heart in throat sprint towards glory. Now world champion Andy Cross and world runner up Invoice Mann are again. Guys, let’s mirror again on that podcast we did collectively a bit. Andy, I am going to flip to you first, ideas.
Andy Cross: Hello, David, it was a lot enjoyable. It was so nice going in opposition to Invoice for that competitors. Mixed, we now have like 90 years of expertise or greater than 80 years of expertise right here at The Motley Idiot with investing. A ton of enjoyable. It’s humorous to look again on that, and in the event you have a look at it from that point, in regards to the market’s up about 17%, so an amazing inventory market. Our mixed batch of shares we talked about is up about eight or 9%, so hasn’t stored up with the-
David Gardner: I like you are monitoring that.
Invoice Mann: How did we get blamed for this? They had been random.
Andy Cross: I do not blame myself, Invoice. I simply blame you for this. However here is what’s actually fascinating. Once I mirror again on that, David, there was one which I bought so horribly incorrect. It was simply embarrassing. It was Synaptics. I got here out with a guess of 80-$100 billion in market cap for Synaptics. Synaptics is a sub 10 billion. I misplaced that in opposition to Invoice. I feel he tied me on that spherical. However what’s fascinating is Synaptics is even smaller at this time trigger it is down 15% since we talked about that. My guess of Synaptics was so incorrect. After all, I like taking a look at inventory in investing, enterprise, sports activities, no matter it’s. You may have winners, you might have losers, Synaptics. I bought terribly incorrect that day, however I ended up nonetheless taking the championship trophy, so I respect that.
David Gardner: It was epic, Invoice. Are you continue to heartbroken? Have you ever gotten over this? Was there a course of? The 5 phases of grief? Have you ever gone by it?
Invoice Mann: This was Chris Hart on the buzzer. This was Diakite of the fingertips. It was the closest of margins, however I keep in mind that actual second, too, as a result of each Andy and I assumed it was a wholly totally different firm.
David Gardner: Synopsis, child? Sure. I assumed it was synopsis
Invoice Mann: We had been each off by, an element of 10, and but one among us was nearer than the opposite. By the principles of the sport, somebody, and I imagine it was Andy, bought a stinking level for that.
David Gardner: Properly, guys, I’ve requested you for one further little bit of perception. I feel you understand what’s coming. Flip to you first this time, Invoice. What’s a want, an fascinating thought or a prediction you might have Invoice Mann for the yr 2025?
Invoice Mann: I simply wish to win.
David Gardner: Simply wish to win.
Invoice Mann: One of many fundamental tales of 2024 has been the dominance of the magnificent seven and the focus of the US inventory market among the many prime 10 corporations, and actually the highest business being know-how. The US has what I describe as a structural and philosophical lead in know-how. I feel in 2025, if something, we will see that lead prolonged. That is not likely a inventory market name as a result of I feel we’d say that the inventory market has actually found out these corporations.
However I do not suppose in 2025 we will look and say, hey, there’s an organization that is arising from anyplace exterior of the US that has any actual alternative to upend these phenomenal turbines of capital.
David Gardner: That’s an fascinating thought, certainly, Invoice. I do know a whole lot of us, I am certain a few us included personal at the least one, if no more of these corporations, and so they have been mainstays for our portfolios, and a whole lot of the out efficiency, in case you have skilled out-performance pricey listener, could effectively come down to simply a type of since you choose any a type of shares. If it goes up 100 instances in worth over 10 or 15 years, you are going to be beating the market, and I am joyful to say there are some Rule Breakers amongst these. However thanks Invoice, I respect that.
As a fellow American, I hope that we’ll proceed to share our studying, information, and wealth and a spirit of freedom worldwide and encourage increasingly individuals in different nations and cultures to embrace one of the best of what we now have. Not every thing that we now have, as a result of let’s face it, we suck too at some issues. However the fact is that I do agree that acutely aware capitalism, particularly vegetation its flag, to not begin stepping into an Ohio State Michigan dialog Michigan alum, Andy Cross, however there’s a whole lot of good flag planning in terms of acutely aware capitalism in the US of America. I hope that extends out additional. Andy, what’s an fascinating thought a want, an fascinating thought or a prediction you might have for 2025?
Andy Cross: Simply in a short time, if I’ll, I agree 100% with Invoice’s remark. I am wanting ahead to studying the NVIDIA method, the brand new guide that is popping out about Jensen Wong and what he has constructed and the way he has constructed it NVIDIA, which is popping out quickly. Simply the reflection on that, I am actually to see I’ve two fast feedback, David, if I’ll, actually to see how the growth of AI know-how and automation begins to influence so many extra corporations, and we begin to hear much more about it on the enterprise degree from corporations throughout all sectors and industries on how they’re benefiting, and we have to see that as a result of the expectations is that the earnings potential will likely be someplace within the 13% for the S&P 500 versus, I feel it is barely flat this yr, just about on the incomes aspect. To proceed that margin development, we have to see that innovation to have the ability to develop margins.
I am excited to see how that performs out throughout different industries. Nevertheless, the factor that I am actually curious about, David is Invoice and I had been speaking about Berkshire Hathaway earlier. I’m a shareholder, have been for a few years, and I’ve by no means been to the Berkshire Hathaway annual assembly ever in my life and Warren now, Mr. Buffett is approaching 94, I feel, perhaps round that and I hope to make it out to Omaha this yr for that, and I hope he does, as effectively.
Invoice Mann: Let’s do it.
Andy Cross: All of the yr.
David Gardner: Find it irresistible. Street journey with Andy and Invoice. I am signed up. It may stream most likely not Netflix, guys, however Peacock, perhaps. Like season 1. I wish to a cameo in your streaming present.
Andy Cross: I bought it.
David Gardner: However highway journey with Andy and Invoice to see Warren. That could be a enjoyable documentary, that I might assist fund.
Andy Cross: Fantastic. We’d want funding for that.
Invoice Mann: David, we’ll speak after.
David Gardner: Talking of leisure properties, within the meantime, you added a whole lot of worth to this one with Bestie quantity 9, which was the Market Cap Sport Present finals with Andy and Invoice. Guys, thanks a lot. Not only for the enjoyable of that hour and this Bestie, however the friendship that we have loved, the worth we have created collectively. Trying again over these 90 mixed years, I belief that’ll preserve going ahead. I hope much more years too. Andy, Invoice, joyful holidays, guys, Idiot on.
Invoice Mann: Identical to you. Thanks David.
Andy Cross: Thanks, David. Blissful holidays, Invoice.
David Gardner: I had such enjoyable with the podcast this yr. I am pondering of my authors in August, which aren’t represented right here this yr, however had been such a delight. As an illustration, the dialog with Stanford neuroscientist David Eagleman and his wildly ingenious guide, Sum. Certainly, in that podcast, he helped create perhaps one among our greatest purchase promote maintain segments in Motley Idiot Historical past so cheers to David and to all my authors. However I’ve reserved Bestie quantity 10 for what was my favourite podcast of the yr, truly, two, as a result of it spawned a Companion Weekend Further, and that was February 28, after we recorded our particular one centesimal Mailbag episode, February 2024 Mailbag, quantity 100 excellent firm.
It featured the voices of seven longtime listeners and contributors, Jason Moore, Dave Geck, Jim, Jason Trice, Adam Nelson, Mike McMahon, and Jason Newman. That hour provided wealthy testimony to what makes this podcast neighborhood so particular, the facility of relationships, the worth of optimism, the inspiration of shared insights, and the enduring assist discovered proper right here throughout their tales, a typical thread emerged that investing is greater than shares and returns. It is also about beneficiant dialogue, mutual encouragement, and the chums we make who have a good time our successes, share our burdens, and remind us that we’re all in it collectively.
Every visitor affirmed the significance of neighborhood, making it clear that as we be taught from each other, all of us develop smarter, happier, and richer collectively. Certainly, every of my contributors drop me an replace this week within the type of quick solutions to my two bestie questions. One, any reflection since, two, what’s their want, fascinating thought or prediction for 2025? In the identical order that I introduce them on the one centesimal mailbag, I’ll shut out this yr’s podcast, this bestie with Bestie quantity 10 with their updates from our excellent firm.
Jason Moore up first reply #1, reflecting on the February podcast, Jason writes, February already. I am struck by the way it emphasised the enjoyment of shared experiences, not nearly investments, but in addition about how genuine tales encourage others to search out worth in surprising locations. I beloved how every visitor had distinctive backgrounds however shared widespread themes. Being a part of such a milestone episode was a humbling expertise. Jason Moore goes on, and I am so glad I had an opportunity to attach and be taught from the others concerned. It jogged my memory of how important communities like this are for development. Whether or not monetary, private or mental. It has additionally led me to match my investing portfolios from February to now this week, and guess what? It appears to be like just like the market goes up this yr. He features a winky Emoji. Thanks once more, Jason writes for the possibility to share and develop alongside such a improbable neighborhood and reply quantity 2, he says, I predict we’ll see AI powered animal communication instruments emerge, an echo of Babltricity from the RBI episode The 12 months the market skyrocketed. Think about your canine explaining its deep seated hatred for supply vans or your cat delivering a TEDTalk on why people won’t ever really perceive class.
As Larry McCloskey might need stated, each creature has his story, and due to AI, we would quickly hear them, although hopefully with fewer exploding ferrets. Thanks, Jason Moore. Subsequent on to Dave Geck reply #1 on reflection. Dave wrote, “I dedicated to getting in form to do one pull up and bench press 90% of my weight. I’ve realized that for me at 71, that isn’t simple to do. I am as much as my lips and about 75% have to preserve at it. I am shocked however surprisingly not upset as a result of I’ve come to mirror that going for enchancment is extra necessary than getting there”. Reply quantity 2 from Dave Geck, my hope for 2025 is that David Gardner begins a brand new annual phase on reviewing his 5 inventory samplers. My favourite podcast by far throughout the spectrum of not solely Rule Breakers, however all podcasts. I’m listening to or have listened to through the years, Dave writes, “If you would need to toss one thing out to shoehorn this in, I suggest the video games evaluate”.
Let me add I hearken to these opinions, although I’ve by no means purchased or wished any of the video games, however it’s fascinating to see how video games and video games inside video games evolve. I do not wish to see it go, however dot, dot that is the place Dave Geck leaves it. Thanks, Dave Geck. Onto Jim. Jim, reply #1, the previous few years, particularly 2024, have felt so politicized with division and excessive voices taking heart stage, however what stood out to me about our group is how none of that mattered. We did not care who lived in pink or blue states or political variations. We actually have a Canadian at Jason Moore. As an alternative, we linked by our interactions, views, and what we every delivered to the desk. It made me notice I used to be surrounded by really variety and noteworthy individuals. Trying again, I am certain we may have had a respectful, significant dialogue about politics if it had come up. John’s reply quantity 2, on that observe for 2025 and past, my want is straightforward.
Let’s deal with respect, character, and the great in others, as an alternative of labels or affiliations. I imagine we now have extra in widespread than we expect. I imagine significant conversations achieved with empathy, endurance, and humility deliver us nearer collectively. Such as you stated, David, most individuals are average. What we see within the information would not mirror the true majority. Let’s not let these extremes persuade us in any other case or push us into taking pointless sides. This unbelievable neighborhood has been such a constructive reminder that the world is stuffed with good, considerate individuals. I am excited to continue to learn from one another and including extra worth to the world, wishing you and everybody a yr crammed with good well being, kindness, and pleasure. Thanks, Jim.
Now on to Jason Trice. Jason, reply primary, I used to be overwhelmed, he writes, by the sense of neighborhood between what I assumed had been strangers. Inside a few minutes, it felt like I used to be chatting with lifelong pals. It is a testomony to the neighborhood you’ve got created by the Idiot and the Rule Breakers investing podcast. It additionally serves as a reminder that the issues that unite us are a lot stronger than those who divide us. His reply quantity 2, I am going to follow a neighborhood theme. Jason Trice writes, “Understanding how integral neighborhood has been in my life. My want for 2025 is that everybody will discover a neighborhood that embraces, helps, and challenges them. I hope to do my half by supporting current communities or doubtlessly beginning my very own. I suppose that is additionally a prediction. Persons are hungry for connection and smart corporations will place an emphasis on creating and constructing communities in 2025”. Thanks, Jason Trice.
On to Participant quantity 5 of seven, Adam Nelson, Adam’s reply #1, reflections. So much can change in a bit time, Adam writes, Should you really feel caught, preserve transferring, and you will not be for lengthy. In 9 months, I began a dream job at an amazing firm. I’ve traveled quite a bit, together with a visit to Berlin, the place I inline skated a marathon with my spouse. I had a again harm earlier than Berlin and subsequently recovered, and we added a brand new pet to our household.
On prime of all that, Adam goes on, many shares have made large strikes increased in lower than a yr. My largest reflection, although, is to encompass your self with prime quality individuals, like your company from the one centesimal mailbag and his reply quantity 2, a prediction for 2025. Adam goes, quite a bit will change in a single quick yr. Sustain the great work. Thanks for every thing. I want you and all of the Fools an exquisite vacation season. Thanks, Adam Nelson, without end enshrined within the Rule Breakers Investing Corridor of Fame for being the catalyst behind the day the world modified. The day we modified the principles of the Market Cap Sport Present. All a part of historical past now a historical past that can’t be rewritten.
How lucky am I that as I walked on this Earth, Adam Nelson was there with me. On to Mike McMahon store man as he is recognized on Twitter X and a useful contributor to Motley Idiot Reside. Mike says, I reply to query #1, in February, I said that my finest funding was creating habits, emphasizing the significance of relationships, lifelong studying, and self enchancment. Now, right here we’re 10 months later, Mike says, with over 1,600 miles walked, 750 hours of podcasts listened to, over 20 books learn and greater than 500 hours of Motley Idiot work. I’m smarter, happier, and richer as I enter my seventh decade on the planet, wow. Thanks, Mike and his reply quantity two, in 2025, I stay up for utilizing AI to question all the fabric I’ve amassed and saved in Readwise, Rome, and Twitter, which can supercharge using my second mind. Very effectively put and one thing I stay up for you performing on. In 2025.
Thanks, Mike McMahon and we shut out Bestie Quantity 10 with the individual I’ve recognized the longest amongst this group of Fools, and that might be Jason Newman, whom I first met at a Motley Idiot guide signing our first guide in New York Metropolis again within the Nineties. Jason, your reply to query #1, reflecting on 2024, being a part of Rule Breaker Investing’s one centesimal episode stays a spotlight for me, having listened to each episode earlier than and since, my appreciation for this outstanding physique of labor is actually past phrases.
Thanks, David, and your complete crew. Past the enjoyable dialog and considerate insights shared, it is the friendships shaped and strengthened that I treasure most. We had Dave’s, Gardner, and Geck, Jasons, Moore, Trice, and Newman, Jim, Adam, and Mike. Many people have stayed in contact, persevering with to encourage and assist each other. That sense of neighborhood is the best present from the expertise. Jason’s reply quantity 2, I am going to depart the wishing to dreamers and the predictions to pundits and as an alternative share an fascinating thought for 2025. Turning 50 this yr prompts reflection for me and whereas I’ve witnessed unbelievable improvements from the Web’s rise to reusable rockets, nothing has matched the transformative energy of synthetic intelligence. As an early adopter, Jason writes, I’ve seen my life change in methods I could not have imagined, but this future stays erratically distributed. My thought it is going to be fascinating to observe this unfold, and I am going to stay each a champion and curious observer of this outstanding development. Properly, listening to that, Jason Newman, or, frankly, anybody would have heard each podcast we have achieved is simply humbling, stunning, surprising.
However I suppose that is all a part of the neighborhood encouragement cycle that grew to become so evident on this Rule Breakers investing of 2024. Thanks to producer Dez Jones, who’s achieved a high-quality job for me most all of this yr and simply produced her first Besties no imply feat. Thanks once more to each one among my particular company. Every of those women and men in a technique or one other is a hero of mine, perhaps of yours too. It is an honor to have them sit with us briefly right here in Foolhalla close to the top of one other yr. In reality, thanks for all of those that made 50 stellar weeks of this podcast for 2024 thus far, occur. Thanks, most of all, pricey listeners, a lot gratitude. I had such enjoyable and realized quite a bit, and I hope you probably did, too, that’s the Coronary heart of the Besties, 2024, well timed and time much less, Idiot on.
Randi Zuckerberg, a former director of market improvement and spokeswoman for Fb and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Idiot’s board of administrators. Andy Cross has positions in Apple, Berkshire Hathaway, Chipotle Mexican Grill, Kinsale Capital Group, Meta Platforms, Mondelez Worldwide, Nvidia, Shopify, Starbucks, and Tesla. Bill Mann has positions in Berkshire Hathaway and Starbucks. Buck Hartzell has positions in Apple, Berkshire Hathaway, Brookfield Infrastructure Company, Enghouse Methods, and MTY Meals Group. David Gardner has positions in Apple, Berkshire Hathaway, Starbucks, and Tesla. Desiree Jones has no place in any of the shares talked about. Matthew Argersinger has positions in Chipotle Mexican Grill, Hershey, RPM Worldwide, Shopify, Starbucks, and Tesla and has the next choices: quick January 2025 $175 places on Hershey. The Motley Idiot has positions in and recommends Apple, Berkshire Hathaway, Chewy, Chipotle Mexican Grill, Enghouse Methods, Hershey, Kinsale Capital Group, MTY Meals Group, Meta Platforms, Nvidia, Peloton Interactive, Shopify, Starbucks, and Tesla. The Motley Idiot recommends RPM Worldwide and Synaptics and recommends the next choices: quick December 2024 $54 places on Chipotle Mexican Grill. The Motley Idiot has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
