The Case for Only Investing in Canadian Dividend-Paying Stocks

[00:00:01] [SPEAKER_01]: This is the Canadian investor where you take control of your own portfolio and gain the confidence you need to succeed in the markets

[00:00:10] [SPEAKER_01]: Hosted by Braden Dennis and Simon Belanger

[00:00:14] [SPEAKER_00]: The Canadian investor podcast welcome into the show my name is Braden Dennis as

[00:00:22] [SPEAKER_00]: Always joined by mr.

[00:00:25] [SPEAKER_00]: Crystal Ball himself Simon Belanger

[00:00:29] [SPEAKER_00]: Dude, I have two things. I want to talk about this podcast before we get into the content one

[00:00:36] [SPEAKER_00]: You know you and I were talking about the war on ad block that YouTube is

[00:00:40] [SPEAKER_00]: Waging right now. Yeah, I could I capitulated today

[00:00:45] [SPEAKER_00]: Really? I still use it. I capitulated today. I don't have a one that works anymore

[00:00:50] [SPEAKER_00]: I've tried them all like the I think I've lost the war. I've lost the game the

[00:00:56] [SPEAKER_00]: YouTube's beat me at my own ad block game

[00:00:59] [SPEAKER_03]: That's fair. That's very I think it's maybe the browser I use because brave is on the

[00:01:05] [SPEAKER_03]: Chrome API, but they still they update it all the time. So I feel like they're they stay ahead of the game

[00:01:11] [SPEAKER_00]: That's probably it. I got to try that out and then second. I wanted to pat you on the back because

[00:01:18] [SPEAKER_00]: Chinese stocks have rallied you did a segment on why you think that they're too beat up and

[00:01:25] [SPEAKER_00]: You know you of all people said that which was shocking to me and

[00:01:30] [SPEAKER_00]: I want to point out something

[00:01:32] [SPEAKER_00]: You are not a momentum guy because people need to realize we record this show

[00:01:39] [SPEAKER_00]: Several days like five days usually before the podcast comes out because you know, we got to edit

[00:01:45] [SPEAKER_00]: We've got four shows that come out. There's a production, you know, there's a whole thing and

[00:01:50] [SPEAKER_00]: They've gone nothing but up

[00:01:53] [SPEAKER_00]: X like to the up and to the right since you said that

[00:01:57] [SPEAKER_00]: There was huge announcements this you we recorded the episode before any of this stuff happened

[00:02:04] [SPEAKER_00]: That's why I called you mr. Crystal ball. Yeah, I wish I would have pulled a trigger

[00:02:08] [SPEAKER_03]: I would have been up 50% on that K web. I think close to that. I was looking at it before we started recording

[00:02:15] [SPEAKER_03]: It's amazing. I mean obviously I did not like

[00:02:18] [SPEAKER_03]: Anticipate the Chinese announcing the Chinese government announcing stimulus and pretty massive package and obviously they're supporting

[00:02:27] [SPEAKER_03]: you know markets in general and

[00:02:30] [SPEAKER_03]: You know, I mean it wasn't impossible that it would happen just because the Chinese economy has been struggling a whole lot

[00:02:37] [SPEAKER_03]: So it's not surprising in itself

[00:02:38] [SPEAKER_03]: But I mean yeah for me

[00:02:40] [SPEAKER_03]: I was just looking at it from a pure valuation perspective and the pendulum had kind of swung too far on one side

[00:02:48] [SPEAKER_03]: When everyone was being so pessimistic, but then obviously I think there was a bit of that

[00:02:53] [SPEAKER_03]: But also the stimulus package that really ramped things up. I mean it's crazy

[00:02:57] [SPEAKER_03]: It's been up since like literally 50%

[00:03:00] [SPEAKER_00]: Yeah, like Ali Baba has been the dog of the year in

[00:03:04] [SPEAKER_00]: global large caps to

[00:03:06] [SPEAKER_00]: I should say dog of the last few years to

[00:03:10] [SPEAKER_00]: 53% total return year to date

[00:03:13] [SPEAKER_00]: That's perfect. Just like that. It's insane. Yeah

[00:03:17] [SPEAKER_03]: No, I mean it was just crazy like I think they announced it because there was about a 12 hour different

[00:03:22] [SPEAKER_03]: If you think about Beijing time 12 or 13 hours

[00:03:26] [SPEAKER_03]: So I think the evening of which would have been in the morning there is when they would have announced

[00:03:31] [SPEAKER_03]: So we recorded maybe like seven or eight hours before that. Yeah. Well well done

[00:03:37] [SPEAKER_03]: Too late now

[00:03:38] [SPEAKER_00]: Yeah directionally on it look like

[00:03:44] [SPEAKER_00]: You've been the bear of all bears on these names and

[00:03:50] [SPEAKER_00]: Your ability to say okay has it gone too far because because at some point

[00:03:58] [SPEAKER_00]: This goes for every a public equity all

[00:04:02] [SPEAKER_00]: Markets when they're in bear territory when there's recessions or whatever. It's when

[00:04:07] [SPEAKER_00]: The market loses all hope is when you typically find some bottom when there's essentially no

[00:04:16] [SPEAKER_00]: Excitement whatsoever is where the market finds

[00:04:20] [SPEAKER_00]: The bottom of Marianas trench and and from there things can recover

[00:04:26] [SPEAKER_03]: Yeah, yeah, and I mean I'm listening right now to an audiobook

[00:04:30] [SPEAKER_03]: Principles by Ray Dalio. So he has it book form

[00:04:33] [SPEAKER_03]: But the audiobook is nice because it's him actually talking and I could listen to

[00:04:37] [SPEAKER_03]: To read all your talk for days on days like I think he's just

[00:04:40] [SPEAKER_03]: Fascinating for a guy who's as rich as he is and successful

[00:04:44] [SPEAKER_03]: Very very humble if you ever listen to him kind acknowledges his mistakes

[00:04:49] [SPEAKER_03]: And that's one of the thing he does say quite a bit time and time again is when you know

[00:04:55] [SPEAKER_03]: there's so many people when things are so obvious and

[00:04:58] [SPEAKER_03]: Everyone's in the trade and it's the best trade ever

[00:05:01] [SPEAKER_03]: Well, usually you know the price is already baked in and when you get the best opportunities is exactly that when something is either

[00:05:09] [SPEAKER_03]: You know so hated or someone loves something so much the market loves something so much

[00:05:14] [SPEAKER_03]: Sometimes just betting against a grain whichever way is where you'll have some of the best

[00:05:19] [SPEAKER_00]: Best investment opportunities Dalio's 30 minute video on YouTube called how the economy works

[00:05:26] [SPEAKER_00]: Should be a requirement to graduate high school

[00:05:29] [SPEAKER_00]: He just all you got to do sit down and watch that video

[00:05:32] [SPEAKER_03]: He was really bad at high school like in school until he got

[00:05:37] [SPEAKER_03]: University because he couldn't make sense of what he was learning and you know how it could apply in the real world

[00:05:43] [SPEAKER_00]: So he wasn't really interested in it. Yeah, we're gonna start today's show with a question from a listener

[00:05:49] [SPEAKER_00]: Something we're mixing into the podcast a little bit more and more is it Bob from Ottawa

[00:05:55] [SPEAKER_00]: Producer Maya you want to throw that audio into the podcast here and then we will discuss

[00:06:02] [SPEAKER_02]: Hi, Braden and Simone Bob from Ottawa here a longtime listener first-time caller

[00:06:06] [SPEAKER_02]: My question is it's no secret that you guys are bullish on high growth stocks

[00:06:10] [SPEAKER_02]: But as you know the data shows that many Canadians invest in blue chip dividend paying companies

[00:06:16] [SPEAKER_02]: Just for fun

[00:06:17] [SPEAKER_02]: Can I ask you guys to try and make the bull case for a strategy that invests in Canadian dividend paying companies?

[00:06:23] [SPEAKER_02]: When might that be an ideal investment strategy? What factors should be considered when you're using a strategy like that?

[00:06:30] [SPEAKER_02]: Looking forward to the discussion. Cheers

[00:06:32] [SPEAKER_03]: Well, Bob, that's a great question. The first thing is first I would say at least right now

[00:06:38] [SPEAKER_03]: I think you're probably more of a

[00:06:40] [SPEAKER_03]: Growth investor

[00:06:42] [SPEAKER_03]: I think that I would be because I do own quite a few is actually dividend paying stocks that are Canadian

[00:06:49] [SPEAKER_03]: I'm definitely a bit more the way of re-organized my portfolio over the last couple years. It's targeted a bit more towards

[00:06:57] [SPEAKER_03]: I would say not necessarily dividend payers, but kind of areas where I see a bit more value

[00:07:03] [SPEAKER_03]: So I think they can definitely you know

[00:07:05] [SPEAKER_03]: Relate to that question. I used to be a bit more growth oriented

[00:07:10] [SPEAKER_03]: I mean it really depends I guess if you consider a Bitcoin more kind of growth or not

[00:07:14] [SPEAKER_03]: It's not a stock I get that but for the most part

[00:07:17] [SPEAKER_03]: I'm definitely trending there aside from the index funds where I do own some of the

[00:07:22] [SPEAKER_03]: Big growth name like the large cap that everyone knows the max seven

[00:07:26] [SPEAKER_03]: But to answer the first part of the question if someone wants to have dividend come from companies that have a lot of exposure

[00:07:32] [SPEAKER_03]: To the Canadian economy then they'll want and they'll want to adopt this kind of strategy

[00:07:38] [SPEAKER_03]: I mean the first thing is if I were to do this

[00:07:42] [SPEAKER_03]: The first thing is I would do is try to diversify

[00:07:45] [SPEAKER_03]: The company as best as I can and one of the big issues and we've talked about it

[00:07:51] [SPEAKER_03]: Time and time again with investing in Canada, and I mean it's not just

[00:07:56] [SPEAKER_03]: Specific to Canada. I think it's specific to countries that are you know for the most part not the US and

[00:08:03] [SPEAKER_03]: It's just very concentrated white as of December September 30th, 2024

[00:08:08] [SPEAKER_03]: I mean financials were 32.2% of the TSX energy

[00:08:13] [SPEAKER_03]: 16.7 industrial 13% material 12.5 and then next one on the list is an

[00:08:19] [SPEAKER_03]: Technology at 8.5 but those top four names are quarter of the TSX

[00:08:25] [SPEAKER_03]: So it is you're not you don't have an abundance of

[00:08:29] [SPEAKER_03]: Sectors to choose from and also names in general

[00:08:33] [SPEAKER_03]: And I think that's something just to keep in mind when you're looking

[00:08:37] [SPEAKER_03]: Really at Canadian stocks because just the reality is it's very limited

[00:08:42] [SPEAKER_03]: And sure there's also utilities telcos obviously the big three there real estate companies to choose from

[00:08:49] [SPEAKER_03]: But again, there's just not that many if you look at telcos. I mean there's what there's three

[00:08:54] [SPEAKER_03]: Maybe I guess kebek all would probably be four

[00:08:57] [SPEAKER_03]: Like I may be missing one or two, but still there's not a big

[00:09:02] [SPEAKER_03]: Big chunk to choose from the second. Do you have anything to add or you'll just add your uh after what i'm done

[00:09:08] [SPEAKER_00]: I've looked at the three points that you've made

[00:09:11] [SPEAKER_00]: And these are instantly where my brain went so yeah continue and then I'll I'll comment and pile on as well

[00:09:18] [SPEAKER_03]: Yeah, and then yeah the number two here is picking the companies

[00:09:22] [SPEAKER_03]: So here are kind of general guidelines and that's a thing you want to try and pick

[00:09:26] [SPEAKER_03]: The best quality as you can and I talked about telcos and not to harp on bc again

[00:09:32] [SPEAKER_03]: Because I think I've been beating the drum

[00:09:34] [SPEAKER_03]: But you have to make sure even if you want to be diversified within the TSX that you still try to

[00:09:39] [SPEAKER_03]: You know invest in the better companies here

[00:09:42] [SPEAKER_03]: So I'd want a company if you're looking just at dividends to have at least flat revenues

[00:09:47] [SPEAKER_03]: I know typically I want to look at companies that are see their cells growing but because the sample is

[00:09:54] [SPEAKER_03]: Is smaller

[00:09:56] [SPEAKER_03]: At least flat revenues preferably growing

[00:09:58] [SPEAKER_03]: I'd want a company to have growing earnings or depending on the type of stock you're looking at could be

[00:10:04] [SPEAKER_03]: growing free cash flow or funds from operation if you're thinking of

[00:10:09] [SPEAKER_03]: a REIT for example and I'm taking talking earnings as well when you look at banks because

[00:10:14] [SPEAKER_03]: Free cash flow is not useful at all for banks

[00:10:17] [SPEAKER_03]: I'd want to have a company that is growing the dividend

[00:10:20] [SPEAKER_03]: Company that has a sustainable payout ratio

[00:10:23] [SPEAKER_03]: And I think that's really important especially if you're looking to invest in this company for long term

[00:10:28] [SPEAKER_03]: You want to make sure that dividend is sustainable if that's one of the primary reasons you're picking these companies

[00:10:34] [SPEAKER_03]: You want to have at least companies and I think five different sectors

[00:10:39] [SPEAKER_03]: I mean like I said if you want quality might be a bit difficult for the TSX just because it's very limited

[00:10:46] [SPEAKER_03]: I'd want to have at least 10 companies in total because even 10 you're pretty concentrated

[00:10:51] [SPEAKER_03]: But again, I think that would be the bare minimum for me probably more in the 20 companies are so ideally

[00:10:58] [SPEAKER_03]: And of course, you know, you want to have the company

[00:11:02] [SPEAKER_03]: To have a good long-term outlook whether it's a secular trend for that type of sector or industry

[00:11:07] [SPEAKER_03]: Good management and all these different kind of more qualitative things that we look into

[00:11:12] [SPEAKER_03]: Into companies and I guess I'll finish here the issue with the strategy is

[00:11:18] [SPEAKER_03]: You'll end up being very very concentrated in just a few businesses and sector if you want quality

[00:11:24] [SPEAKER_03]: Like I said, you might force yourself to invest in companies that you wouldn't necessarily invest in

[00:11:29] [SPEAKER_03]: If you were choosing from a much larger basket of stocks, for example the us or global and you're

[00:11:36] [SPEAKER_03]: Going to be very dependent on the canadian economy and that might be a good or bad thing

[00:11:42] [SPEAKER_03]: Right? We don't know what the future kind of you know has in front of us

[00:11:46] [SPEAKER_03]: I mean you can make some a bull case for investing in canada. For example, uh, you know, canada is rich in natural resources

[00:11:54] [SPEAKER_03]: So obviously, you know going forward is there's a big global boom for

[00:11:59] [SPEAKER_03]: Demand for different goods and services. The economy is growing very rapidly

[00:12:04] [SPEAKER_03]: Then that should benefit the canadian economy or even if there is more

[00:12:08] [SPEAKER_03]: Which looks like may be happening right now

[00:12:11] [SPEAKER_03]: But kind of more spheres of influence where you have kind of north america you have europe you have

[00:12:17] [SPEAKER_03]: Kind of you know a bit more closed trade

[00:12:20] [SPEAKER_03]: But still um you have these kind of group of countries trading together while canada would probably be

[00:12:26] [SPEAKER_03]: You know kind of a north america or america's group and could still benefit from that because of our massive natural resources

[00:12:34] [SPEAKER_03]: So there are some you know positive ways

[00:12:37] [SPEAKER_03]: There are some positive outlooks if you're overly concentrating in canada

[00:12:40] [SPEAKER_03]: But you know you do increase your risk by doing that

[00:12:44] [SPEAKER_03]: Especially if you have your income coming from canadian companies as well

[00:12:47] [SPEAKER_00]: If I just look at the tsx capped composite index etf from bmo called

[00:12:53] [SPEAKER_00]: zcn

[00:12:55] [SPEAKER_00]: for instance

[00:12:56] [SPEAKER_00]: This is a tsx s and p kind of tsx 60 even though there's 220 stocks in it

[00:13:03] [SPEAKER_00]: It gives you an idea of the canadian market on the tsx and

[00:13:08] [SPEAKER_00]: You know you're looking at seven percent

[00:13:11] [SPEAKER_00]: rbc

[00:13:12] [SPEAKER_00]: Another roughly five percent td then you have Shopify enbridge

[00:13:18] [SPEAKER_00]: cp

[00:13:18] [SPEAKER_00]: Like you're the top 20 represent

[00:13:22] [SPEAKER_00]: Well over 50 percent or not well over but more than 50 percent and there's 226 holdings in it

[00:13:29] [SPEAKER_00]: And you know you can make that argument as well against the u.s. Market today too

[00:13:33] [SPEAKER_00]: It's like so concentrated in these mega tech large caps

[00:13:36] [SPEAKER_00]: But google microsoft amazon

[00:13:41] [SPEAKER_00]: Are fundamentally different businesses than

[00:13:44] [SPEAKER_00]: Royal bank td bank and enbridge in terms of diversification and what they do geographies they serve

[00:13:51] [SPEAKER_00]: Business lines. They have

[00:13:53] [SPEAKER_00]: Just raw sheer size and dominance in the areas that they that they control

[00:13:58] [SPEAKER_00]: And so that that argument does fall off a little bit

[00:14:04] [SPEAKER_00]: Now i'll tell you the the bull case for your question on if you're to go that way

[00:14:10] [SPEAKER_00]: Stocks are cheaper in canada

[00:14:12] [SPEAKER_00]: objectively

[00:14:14] [SPEAKER_00]: You can get better deals on the tsx

[00:14:17] [SPEAKER_00]: That's why i like looking there. That's why

[00:14:21] [SPEAKER_00]: Mark Leonard won't list constellation on

[00:14:24] [SPEAKER_00]: The the u.s. Market he wants to keep the share price low because of how they incentivize managers to have to buy stock on the open market

[00:14:32] [SPEAKER_00]: And you know you find little gems like wsp and taravest that i think are trading at really

[00:14:39] [SPEAKER_00]: Reasonable multiples given you know their their track record as of late. So that's

[00:14:45] [SPEAKER_00]: That's the bull case, but those three points you you laid on i think are are spot on

[00:14:51] [SPEAKER_00]: I think the big difference for me is i'm not a factor or thematic investor

[00:14:55] [SPEAKER_00]: And i don't think that there's anything wrong with playing factors or themes

[00:14:58] [SPEAKER_00]: I think lots of money can be made

[00:15:00] [SPEAKER_00]: Factor investing for instance is buying stocks on quant factors like i'm only going to buy a basket of low pe stocks

[00:15:07] [SPEAKER_00]: It doesn't matter what the companies do i'm strictly moving things in and out based on numbers

[00:15:14] [SPEAKER_00]: Like valuation like growth rates

[00:15:17] [SPEAKER_00]: certain thresholds

[00:15:18] [SPEAKER_00]: You know that what the business does is completely

[00:15:21] [SPEAKER_00]: irrelevant

[00:15:22] [SPEAKER_00]: And i see a lot of income investors do the same

[00:15:27] [SPEAKER_00]: Like they don't realize that they're actually factor investors of yield

[00:15:32] [SPEAKER_00]: And a lot of yield ETFs are actually just factors like they're

[00:15:36] [SPEAKER_00]: You know they're buying dividend yields over two and a half percent

[00:15:40] [SPEAKER_00]: Above a certain market cap like that's that's very very common

[00:15:45] [SPEAKER_00]: And this is basically the antithesis of what i do i focus on the business first

[00:15:49] [SPEAKER_00]: And yes, i'm trying to find good value and if they pay a dividend great sure no that's that's fine

[00:15:55] [SPEAKER_00]: But i want the ones that are high quality and i believe that those tend to be growing fast

[00:16:01] [SPEAKER_00]: So it's not that i'm a growthy investor or value investor

[00:16:07] [SPEAKER_00]: Long term return

[00:16:09] [SPEAKER_00]: decomposition of equities on the public markets

[00:16:12] [SPEAKER_00]: Long term is mathematically

[00:16:15] [SPEAKER_00]: Mathematically linked to enduring moats and revenue growth

[00:16:19] [SPEAKER_00]: They're like 90 of long term return decomposition there

[00:16:23] [SPEAKER_00]: And so when i look at the top 10 companies by market cap or let's say top 15

[00:16:27] [SPEAKER_00]: Royal bank td Shopify and bridge brookfield cp thompson roiders cn rail

[00:16:33] [SPEAKER_00]: Canadian natural resources constellation software

[00:16:37] [SPEAKER_00]: bmo bank of Nova scotia

[00:16:39] [SPEAKER_00]: c i bc

[00:16:40] [SPEAKER_00]: kush tarred and manual life. Okay, that's the top 15 by market cap

[00:16:45] [SPEAKER_00]: Ironically, i know i own two of these companies in fairly large

[00:16:50] [SPEAKER_00]: Allocations but it's not a basket i'm eager to own

[00:16:53] [SPEAKER_00]: So if i look at my portfolio cmo on finch at and i type in i have all my allocations there

[00:16:59] [SPEAKER_00]: You can build out your portfolio statistics. So these are the portfolio statistics

[00:17:05] [SPEAKER_00]: Money weighted so this is weighted based on what positions are where

[00:17:10] [SPEAKER_00]: Revenue compound annual growth rate historically has been 18.41 percent same for cash flow from operations

[00:17:18] [SPEAKER_00]: Gross margins are nearly 50 percent

[00:17:20] [SPEAKER_00]: The return on equities like 25 percent one-year performance is like one year 50 percent

[00:17:27] [SPEAKER_00]: Yeah, it's a little bit more expensive. It's trading at forward seven times sales and trailing 32 times ev to ebita

[00:17:36] [SPEAKER_00]: These are

[00:17:38] [SPEAKER_00]: More expensive stocks no question. There's absolutely no question

[00:17:43] [SPEAKER_00]: but i believe that they're a lot more high quality and

[00:17:46] [SPEAKER_00]: If i'm trying to own something for the next 10 to 15 years

[00:17:51] [SPEAKER_00]: The trailing pe is not the exact thing i'm optimizing for and so blue chip is a bit of a

[00:17:57] [SPEAKER_00]: You know, it's a it's a fancy word, but there's a lot of nuance in business and a lot of blue chips

[00:18:05] [SPEAKER_00]: Historically, i've been large caps that have failed. You know at one point intel was the blue chip

[00:18:11] [SPEAKER_00]: Of blue chips, right cmo? So g g is a music example

[00:18:15] [SPEAKER_03]: Yeah, b vc still gets cited as a blue chip, which i think is

[00:18:20] [SPEAKER_00]: Completely fantasy land, but that's just correct these companies can be cloaked in a blue chip blanket

[00:18:26] [SPEAKER_00]: When the underlying fundamentals could be deteriorating and if the company's straight up not growing like you said

[00:18:33] [SPEAKER_00]: It's not top-line growth

[00:18:35] [SPEAKER_00]: it's actually pretty hard to make money unless there's some sort of multiple expansion or

[00:18:41] [SPEAKER_00]: They pay out a bunch of pay out a bunch of

[00:18:44] [SPEAKER_00]: Distributions via the dividend buy back a lot of stock. So there's there's a path to return for these companies

[00:18:50] [SPEAKER_00]: But it's it is an uphill battle typically i'm not a cigar butt investor

[00:18:56] [SPEAKER_03]: Yeah, and probably the biggest advantage or that you can have for canadian companies if you're looking specifically at dividend stocks and

[00:19:06] [SPEAKER_03]: You have a decent amount in your tfsa clearly then yes the canadian companies will have a pretty big advantage

[00:19:14] [SPEAKER_03]: For you because you won't get tax on that dividend where there will be withholding taxes if you have us paying well us

[00:19:21] [SPEAKER_03]: Stocks that are paying dividends in a tfsa. So that is a big advantage that you can

[00:19:27] [SPEAKER_00]: Capitalize on but that's specific to the tfsa. I think what self-directed investors need to

[00:19:34] [SPEAKER_00]: recognize

[00:19:36] [SPEAKER_00]: is

[00:19:38] [SPEAKER_00]: They might be doing yield factor investing

[00:19:42] [SPEAKER_00]: Without knowing that

[00:19:44] [SPEAKER_00]: Meaning who cares if the company has structural decline. Look, they're paying me a six percent dividend

[00:19:52] [SPEAKER_00]: You know

[00:19:53] [SPEAKER_00]: Look, they're paying a growing probably unsustainable

[00:19:57] [SPEAKER_00]: Seven and a half percent yield

[00:20:00] [SPEAKER_00]: Whatever it may be

[00:20:02] [SPEAKER_00]: I think that they don't recognize that they're investing off of strictly yield factors and throwing away fundamentals and actual

[00:20:10] [SPEAKER_00]: Structural importance of the business long term

[00:20:13] [SPEAKER_00]: It's not the way I invest. I haven't been ever

[00:20:17] [SPEAKER_00]: Proven that it's a good way to get total return in the stock market

[00:20:22] [SPEAKER_03]: Hmm. No, I think that's a good way to wrap it up

[00:20:25] [SPEAKER_03]: But again, like I said, you can still find good companies in Canada. I think to wrap this up

[00:20:30] [SPEAKER_03]: And but you do limit yourself a whole lot if you're

[00:20:34] [SPEAKER_03]: Investing only in Canada and only in dividend stocks the pool of company shrinks up the sector

[00:20:40] [SPEAKER_03]: The amount of sectors diversification shrinks up

[00:20:43] [SPEAKER_03]: And I think it's just important to remember that that you're you don't have a whole lot to choose from

[00:20:48] [SPEAKER_03]: I think that that's my biggest biggest

[00:20:51] [SPEAKER_03]: Issue with just focusing solely on Canada. And you know, you've seen my portfolio. I have

[00:20:56] [SPEAKER_03]: You know several

[00:20:58] [SPEAKER_03]: I think four or five names that are Canadian listed not a lot

[00:21:02] [SPEAKER_03]: But I still have decent positions and I just I don't necessarily invest because they're Canadian companies

[00:21:07] [SPEAKER_03]: It's because they're good companies and I find them a bit undervalued for I think what the future holds for them

[00:21:14] [SPEAKER_03]: And they're typically again, you know them like Canadian natural resources and example term align

[00:21:20] [SPEAKER_03]: They're kind of more commodities play and their high quality businesses. And if I'm gonna play in commodities

[00:21:25] [SPEAKER_03]: I mean we have some really fantastic

[00:21:29] [SPEAKER_03]: commodity plays in Canada. I think there are there are some

[00:21:32] [SPEAKER_03]: Crappy ones as well, but there are some good ones. Yeah, there are some good ones

[00:21:36] [SPEAKER_00]: And it would be hypocritical for me to say don't invest in Canadian stocks

[00:21:39] [SPEAKER_00]: Look at my portfolio. It's it's time. There's tons of Canadian names in there

[00:21:45] [SPEAKER_00]: I guess I should I guess, you know what it is

[00:21:47] [SPEAKER_00]: I just don't like the subset of Canadian large caps

[00:21:52] [SPEAKER_00]: As a basket, there are some good ones. Don't get me wrong

[00:21:56] [SPEAKER_00]: It's just that basket of large caps. I'm not chomping at the bit to own

[00:22:00] [SPEAKER_00]: I think there's some really good high quality

[00:22:04] [SPEAKER_00]: More they have a lot of banks in there banks banks telcos railroads and Shopify

[00:22:11] [SPEAKER_00]: Yeah, pretty much. Yeah, right. So there are worse things you can do

[00:22:16] [SPEAKER_00]: Let me just don't hear what I'm not saying. There are worse things you can do

[00:22:22] [SPEAKER_00]: All right, let's move on to a segment called no brainers from Charlie Munger. Yeah

[00:22:29] [SPEAKER_00]: Charlie Munger has a investment memo called the ultimate no brainer

[00:22:36] [SPEAKER_00]: Quote there are actually businesses that you will find a few times in a lifetime where any manager could raise the return enormously

[00:22:44] [SPEAKER_00]: Just by raising prices

[00:22:46] [SPEAKER_00]: And yet they haven't done it

[00:22:48] [SPEAKER_00]: So they have huge untapped pricing power that they're not using

[00:22:52] [SPEAKER_00]: This is the ultimate no brainer at brookshire warn and I raised the prices of seized candy

[00:22:58] [SPEAKER_00]: A little faster than others might have and of course we invested in coca-cola

[00:23:02] [SPEAKER_00]: Which had some untapped pricing power and it had some brilliant management

[00:23:07] [SPEAKER_00]: So we could do a lot more than raise prices. It was perfect

[00:23:11] [SPEAKER_00]: You'll get a few opportunities to profit from finding underpricing yet. They're

[00:23:16] [SPEAKER_00]: There are actually people out there who don't price everything as high as the market will easily stand

[00:23:21] [SPEAKER_00]: And you have to figure that out

[00:23:23] [SPEAKER_00]: It's like finding money in the street if you have the courage

[00:23:27] [SPEAKER_00]: of your convictions

[00:23:29] [SPEAKER_00]: So it's this concept around finding companies that you

[00:23:34] [SPEAKER_00]: You have a lot of conviction in

[00:23:37] [SPEAKER_00]: are heavily underpricing that like

[00:23:40] [SPEAKER_00]: They doubled the price tomorrow and the market will stand it and so I've come up with a list of six or seven

[00:23:46] [SPEAKER_00]: ideas here

[00:23:48] [SPEAKER_00]: Of businesses that I think fit this criteria as a basket sticky b2b enterprise software

[00:23:56] [SPEAKER_00]: They are notorious for raising prices

[00:24:00] [SPEAKER_00]: They do it because their customers will stand it, you know trying to switch

[00:24:05] [SPEAKER_00]: Payroll providers is like trying to you know change the engine

[00:24:10] [SPEAKER_00]: While it's flying right this is the whole idea of sticky b2b software

[00:24:15] [SPEAKER_00]: The costco membership it's funny enough. They just raised that price maybe a month ago. September 1st

[00:24:21] [SPEAKER_00]: September 1st

[00:24:22] [SPEAKER_00]: And let's be honest. It could have been higher right

[00:24:25] [SPEAKER_00]: It they

[00:24:26] [SPEAKER_00]: That definitely fits into this like the market could withstand much more, but it's not their style

[00:24:31] [SPEAKER_00]: This one

[00:24:31] [SPEAKER_00]: I'm curious your take on this because this might be a little controversial

[00:24:35] [SPEAKER_00]: Consumer streaming brands. I'm starting to come around to like netflix spotify amazon prime

[00:24:41] [SPEAKER_00]: I think they have a lot more pricing power than

[00:24:45] [SPEAKER_00]: I would have said two three years ago

[00:24:47] [SPEAKER_00]: I think I've changed my mind on this quite a bit that they have more

[00:24:51] [SPEAKER_00]: Pricing power over consumers than I may have thought in the past

[00:24:55] [SPEAKER_03]: Yeah, I mean, I don't know maybe it's my personal experience

[00:24:58] [SPEAKER_03]: We kind of do a rotation the only one we keep as netflix because we got that account where you can add like

[00:25:05] [SPEAKER_03]: You know additional subscribers for ten dollars and they kind of piggyback on your account

[00:25:10] [SPEAKER_03]: And that's our my parents and my loss. So I yeah, we don't have the flexibility really to stop that one

[00:25:17] [SPEAKER_03]: But the other ones we essentially like we look and when there's deals

[00:25:21] [SPEAKER_03]: We'll subscribe or we'll kind of pick one. We'll subscribe to that one once we're done

[00:25:26] [SPEAKER_03]: We'll switch so we'll do like between crave

[00:25:30] [SPEAKER_03]: Let's say and disney when crave stops we'll start disney

[00:25:33] [SPEAKER_03]: so we have kind of a set budget per month

[00:25:35] [SPEAKER_03]: And we kind of stick to that you're very personal finance savvy

[00:25:39] [SPEAKER_03]: A lot of people don't

[00:25:42] [SPEAKER_03]: Say screw it, you know, they're usually my my trick right is I'll subscribe

[00:25:46] [SPEAKER_03]: Did that recently crave had like a deal for six months?

[00:25:49] [SPEAKER_03]: Like it was like 10

[00:25:50] [SPEAKER_03]: 10 bucks a month for six months and no ad version something like that

[00:25:54] [SPEAKER_03]: And I did it and then canceled right away. So I know it won't auto renew

[00:25:59] [SPEAKER_03]: So that's the trick you have to cancel as soon as they know that a lot of people won't

[00:26:04] [SPEAKER_03]: Right. No, exactly. Yeah. Yeah, it's true. So no, you might be right

[00:26:08] [SPEAKER_03]: I maybe I am too, uh, you know, I don't want to pay for stuff. I don't use

[00:26:14] [SPEAKER_00]: Yeah, your anecdotal evidence is uh

[00:26:17] [SPEAKER_00]: If everyone was like you then definitely not

[00:26:19] [SPEAKER_00]: Uh infrastructure and toll road style businesses where there's no other options, right? This is

[00:26:26] [SPEAKER_00]: Very very classic

[00:26:27] [SPEAKER_00]: Yeah, physical infrastructure projects meet this criteria if there's usually the only thing with those are usually highly regulated

[00:26:34] [SPEAKER_03]: So you there is a limit. Um, it's usually tied to inflation. So um, there is going to be a limit to what they can raise

[00:26:40] [SPEAKER_00]: Yeah, sometimes. Yes, absolutely. Sometimes. Yes

[00:26:44] [SPEAKER_00]: financial services capital markets businesses that have monopoly or duopoly's

[00:26:49] [SPEAKER_00]: credit rating agencies

[00:26:51] [SPEAKER_00]: FICO

[00:26:53] [SPEAKER_00]: Equifax

[00:26:54] [SPEAKER_00]: This is a this is a business. I just love love love

[00:26:58] [SPEAKER_03]: Don't don't say visa because the u.s. Government may take issue with that

[00:27:03] [SPEAKER_00]: Visa doesn't need to flex pricing power. They're just death by a million paper cuts. Yeah, but yeah

[00:27:08] [SPEAKER_00]: I actually don't I don't know if visa has much power on interchange pricing these days

[00:27:13] [SPEAKER_03]: I I wouldn't even classify no, no, but the doj with their law antitrust lawsuit. It's interesting

[00:27:18] [SPEAKER_03]: it's more that practices because I we talked about it dan and i and it's more about the

[00:27:24] [SPEAKER_03]: anti competitive practices and basically, you know punishing people for not using it, right?

[00:27:31] [SPEAKER_03]: It'll be interesting what happens there. This is uh, this is one word keeping an eye on

[00:27:35] [SPEAKER_00]: Yeah, good good good thing to keep an eye on and maybe those things it's fair to go after but I believe

[00:27:41] [SPEAKER_00]: Interchange fees going after those is completely baseless. So I don't know if they'll have anything there

[00:27:46] [SPEAKER_00]: You know, it's actually the banks that take such a ridiculous fee on the on the total total two and a half percent

[00:27:53] [SPEAKER_00]: All companies that do the classic highly controversial gray area

[00:27:58] [SPEAKER_00]: potentially

[00:28:00] [SPEAKER_00]: Illegal, I mean there's been lots of case law on this in the past, especially with Microsoft

[00:28:05] [SPEAKER_00]: The bundling unbundling of business utility suites have a lot of pricing power

[00:28:09] [SPEAKER_00]: It's like oh Microsoft teams is quote-unquote free

[00:28:14] [SPEAKER_00]: And you get everyone on it because you have the distribution

[00:28:17] [SPEAKER_00]: And then you jack up the price the following year on the new bundle, right? It's

[00:28:23] [SPEAKER_00]: It's free quote-unquote and then the bundle goes

[00:28:27] [SPEAKER_03]: Hey wire on pricing. No, I think that's a good point and those will be fascinating because I mean, I don't think

[00:28:34] [SPEAKER_03]: I'm sure you realize it right the department of justice and the us is the the big one the behemoth right like obviously

[00:28:41] [SPEAKER_03]: Canada can have antitrust

[00:28:44] [SPEAKER_03]: Lawsuits, I'm sure we have our own kind the europe who can have them too

[00:28:47] [SPEAKER_03]: but the us is really the one where people take notice and

[00:28:52] [SPEAKER_03]: I mean, I

[00:28:54] [SPEAKER_03]: I think big tech has to be careful because I think it's clear now that they are in their crosshair and

[00:29:01] [SPEAKER_03]: No matter who wins the election. I feel like it's good politics to go after big tech

[00:29:05] [SPEAKER_03]: So I would be surprised if you know, even if trump wins that they would put the brakes on that

[00:29:11] [SPEAKER_03]: so it's just I find that pretty fascinating just this kind of shift and

[00:29:16] [SPEAKER_03]: You know, it's just yeah

[00:29:17] [SPEAKER_03]: They're so big that it's easy for governments to go after them from a politics perspective

[00:29:24] [SPEAKER_00]: What would have been the late 80s or early 90s in that vintage?

[00:29:29] [SPEAKER_00]: Microsoft

[00:29:30] [SPEAKER_00]: Was at war with the doj for the bundling and unbundling of the internet browser

[00:29:38] [SPEAKER_03]: Yeah, yeah, it was late 90s. I think it was late 90s. Yeah. Yeah, okay

[00:29:42] [SPEAKER_00]: And you know that that almost drove the company to

[00:29:46] [SPEAKER_00]: To death

[00:29:47] [SPEAKER_00]: I mean it was just this never-ending expensive lawsuit that like bill gates aged like 40 years and three years

[00:29:55] [SPEAKER_00]: He's like, I think it's basically burnt him out and then steve bomber came in but that that whole

[00:30:02] [SPEAKER_00]: thing is like

[00:30:03] [SPEAKER_00]: We're seeing that now happen with some of the other big tech companies and

[00:30:08] [SPEAKER_00]: Mike I feel like the pain that they endured during those two three years has given them like a

[00:30:13] [SPEAKER_00]: All right, let's not mess with them for a while. Like, you know, like it was so brutal

[00:30:19] [SPEAKER_00]: That I do see, you know history doesn't repeat itself, but it does rhyme with this bundling unbundling

[00:30:26] [SPEAKER_00]: Uh internet explorer windows machine type type thing

[00:30:30] [SPEAKER_00]: We're seeing this right now happen in a major way

[00:30:34] [SPEAKER_03]: Yeah, they seem to be really focusing on the just the actions of preventing competition, right?

[00:30:40] [SPEAKER_03]: I think they focused in on that google

[00:30:44] [SPEAKER_03]: Payment to apple to make sure that every apple device has google as the default search

[00:30:49] [SPEAKER_03]: And it's the same kind of thing that they're focusing on visa

[00:30:52] [SPEAKER_03]: So I feel like they're really zoning in on this specific type. Obviously, they're two different companies and you know

[00:30:59] [SPEAKER_03]: There's different possible outcomes, but it's just interesting to see what

[00:31:05] [SPEAKER_03]: You know, they're going for right now. Which is a little different than the bundling I think

[00:31:09] [SPEAKER_00]: Another thing that I think fits the I got two more here market places

[00:31:14] [SPEAKER_00]: With huge network effects like uber and airbnb

[00:31:17] [SPEAKER_00]: I think that they kind of flexed that pricing power in the last two years

[00:31:21] [SPEAKER_00]: And then they went from mega unprofitable to

[00:31:24] [SPEAKER_00]: Mega profitable via take rates doubling

[00:31:27] [SPEAKER_00]: So they doubled take rates overnight

[00:31:30] [SPEAKER_00]: Can they double them again? No

[00:31:33] [SPEAKER_00]: I I don't I don't think so because they're still competing against the traditional thing which is maybe taxis in uber's cases and

[00:31:42] [SPEAKER_00]: You know hotels or what have you other

[00:31:45] [SPEAKER_00]: Aggregating sites like booking.com expedia these kinds of things so that they don't have pure play monopolies

[00:31:52] [SPEAKER_00]: But they do have really really strong network effects that

[00:31:55] [SPEAKER_00]: If take rates continued to climb up another 25 percent over the next five years

[00:32:00] [SPEAKER_00]: I wouldn't be surprised. In fact, that probably is a pretty good bet to make that they will

[00:32:05] [SPEAKER_00]: Yeah, no, that's fair. Yeah

[00:32:09] [SPEAKER_00]: And last one here anything that is uh

[00:32:11] [SPEAKER_00]: ultra luxury or has

[00:32:15] [SPEAKER_00]: A historic brand with a story and you know, it's uh, you know, it's start

[00:32:20] [SPEAKER_00]: It starts with handcrafted leather goods in idly, you know, like these are these have a

[00:32:26] [SPEAKER_00]: ton of pricing power

[00:32:29] [SPEAKER_00]: Ferrari comes to mind here a brand where

[00:32:33] [SPEAKER_00]: They sell out all 13,000 cars that they're going to make for the year before they make them

[00:32:38] [SPEAKER_00]: Before they even you know put a shovel in the ground

[00:32:42] [SPEAKER_00]: All of them have accounted are been accounted for and they'll they'll probably increase deliveries by

[00:32:46] [SPEAKER_00]: Maybe 2,000 a year for the next several years, but

[00:32:51] [SPEAKER_00]: those cars

[00:32:53] [SPEAKER_00]: As expensive as they are

[00:32:56] [SPEAKER_00]: There is a ton of pricing power still like it's it's mind boggling how expensive these cars are but

[00:33:02] [SPEAKER_00]: People will pay double

[00:33:04] [SPEAKER_00]: I like literally I think people will pay double

[00:33:06] [SPEAKER_03]: Yeah, I'm sure they're making a lot of toronto condo developers very jealous

[00:33:11] [SPEAKER_03]: Like how are they selling all these units and we can't even uh sell all our buildings when they're completed

[00:33:19] [SPEAKER_00]: Well, they don't have that historic italian. That's right motorsport

[00:33:25] [SPEAKER_00]: brand yeah

[00:33:26] [SPEAKER_00]: Porsche is kind of in this category

[00:33:28] [SPEAKER_00]: But not as much because you know, they make so many other

[00:33:34] [SPEAKER_00]: Daily driver cars but the the 9 11

[00:33:37] [SPEAKER_00]: Line that they make is like that or maize is like that some of the lvmh brands some of these bags

[00:33:44] [SPEAKER_03]: Some like rolls Royce would probably fit in that category rolls Royce

[00:33:49] [SPEAKER_00]: Um

[00:33:50] [SPEAKER_00]: Yeah, I don't know. I haven't really

[00:33:52] [SPEAKER_00]: Last time I looked up their stock. I realized that they're making most their money from like

[00:33:57] [SPEAKER_03]: Aviation or something. Oh, yeah. Yeah, they do a lot of engines

[00:34:00] [SPEAKER_00]: But I feel like they still make some super expensive cars. Yeah, I'm looking at their segmented results right now

[00:34:06] [SPEAKER_00]: revenue from original

[00:34:09] [SPEAKER_00]: equipment and revenue from

[00:34:11] [SPEAKER_00]: Okay, wait, we'll compare civil aerospace and

[00:34:14] [SPEAKER_00]: power systems. Did they not have like

[00:34:17] [SPEAKER_00]: Auto they got civil defense power systems new market. I'm gonna say civil

[00:34:25] [SPEAKER_00]: civil aerospace

[00:34:27] [SPEAKER_03]: I don't know. They're still selling cars, but like I've seen some maybe they were just like five ten years old and I just didn't realize

[00:34:34] [SPEAKER_00]: But uh, no, they're still selling them, but like they don't segment it out. It's all

[00:34:40] [SPEAKER_00]: Maybe it's not a little defense and power systems

[00:34:44] [SPEAKER_00]: Very interesting, but yeah iconic vehicles. I don't like them that much, but they are very iconic

[00:34:51] [SPEAKER_00]: So, yeah, I mean these mega luxury brands that basically

[00:34:57] [SPEAKER_00]: Have some scarcity element to them

[00:35:01] [SPEAKER_00]: scarcity breeds pricing power right like

[00:35:05] [SPEAKER_00]: Rolex has had an infinite pricing power

[00:35:08] [SPEAKER_00]: Brand although they're not publicly traded. I think if they were publicly traded

[00:35:12] [SPEAKER_00]: I'd probably look look to own some of it

[00:35:16] [SPEAKER_03]: Well the Rolls Royce Spectre one of their cars starts at a cool

[00:35:21] [SPEAKER_03]: 495,000 so I think they're yeah. Yeah, there's they're still going

[00:35:25] [SPEAKER_03]: Still going

[00:35:26] [SPEAKER_00]: We don't see many uh, is it the no no that's what yeah Aston Martin

[00:35:31] [SPEAKER_00]: No, sir. No Aston Martin Rolls Royce Phantom. That's the car right the Rolls Royce. Yeah, that one is probably even

[00:35:38] [SPEAKER_00]: This is the this is the car I think of when I think of a Rolls Royce. Yeah, that one's like 593 so it's not you know

[00:35:45] [SPEAKER_03]: It's a little more expensive

[00:35:48] [SPEAKER_00]: 93 they're that much. Oh my god

[00:35:52] [SPEAKER_03]: Yeah, I mean, I knew they were expensive. I just didn't realize uh, yeah

[00:35:56] [SPEAKER_03]: It's uh, it's a nice car

[00:35:59] [SPEAKER_03]: What's your dream car? Do you have one?

[00:36:02] [SPEAKER_03]: Money's no object

[00:36:04] [SPEAKER_03]: Yeah, I mean I've always been a big fan of uh,

[00:36:08] [SPEAKER_03]: Volkswagen and Audi it would probably be like an rs5 or something like that

[00:36:13] [SPEAKER_03]: So I would like yeah, I wouldn't go like massive expensive. Like I don't uh

[00:36:18] [SPEAKER_03]: I just find it, uh, you know certain sports car. I just find uh, usually I look and it looks like a guy in a midlife crisis

[00:36:26] [SPEAKER_03]: so

[00:36:28] [SPEAKER_03]: Totally 100%

[00:36:30] [SPEAKER_03]: Yeah, you're right

[00:36:31] [SPEAKER_00]: Yeah, so uh, no, I think it would be that. Yeah, I do want a Porsche

[00:36:35] [SPEAKER_00]: I was listening to the acquired podcast and they they said something funny that I think I mentioned it on this podcast that they have

[00:36:42] [SPEAKER_00]: Porsche has a 40 year sales cycle

[00:36:46] [SPEAKER_00]: meaning that kids

[00:36:48] [SPEAKER_00]: Or like, you know the 12 year old who sees the 9 11 drive across the street

[00:36:52] [SPEAKER_00]: They're like, I want one of those one day and they end up buying them in like their 52

[00:36:57] [SPEAKER_00]: So they have like a 40 year sales cycle

[00:36:59] [SPEAKER_03]: No, that makes sense. I mean, they're not uh, they're not cheap cars and usually you know, you're pretty

[00:37:05] [SPEAKER_03]: You know, you're doing pretty well at that time top earning years. That's probably 40s and 50s. So that would make sense. Yeah

[00:37:12] [SPEAKER_00]: So harry rosen's sponsoring the podcast and so I was in there doing doing the whole thing and

[00:37:17] [SPEAKER_00]: I was actually in there and I met yan carlo esposito the

[00:37:21] [SPEAKER_00]: Gus fring from breaking bad the actor

[00:37:24] [SPEAKER_00]: He's also like in mandalora. He's not much stuff

[00:37:27] [SPEAKER_00]: He's a great villain. Anyways, I go into this one section. It's like all this like italian leather brand and

[00:37:34] [SPEAKER_00]: My girlfriend and I were walking through and the first piece I looked at

[00:37:39] [SPEAKER_00]: I it was a vest. It was felt very nice. It was very nice best. I turn around the price tag

[00:37:45] [SPEAKER_00]: $18,000 and I was like, hmm

[00:37:50] [SPEAKER_00]: I think i'm in the wrong section

[00:37:52] [SPEAKER_00]: Got out of there. They have such they actually have some such amazing stuff. This is not turning into an ad

[00:37:58] [SPEAKER_00]: I really liked it, but I there is

[00:38:02] [SPEAKER_00]: a

[00:38:04] [SPEAKER_00]: segment of the luxury market

[00:38:07] [SPEAKER_00]: That continues to just

[00:38:10] [SPEAKER_00]: Whatever you think is mega luxury like there's always something more insane. Oh, yeah

[00:38:15] [SPEAKER_03]: and I mean we've watched sometimes I don't I'm sure you've seen them but

[00:38:19] [SPEAKER_03]: My wife and I will watch these like million dollar homes like LA and stuff like that and yeah

[00:38:25] [SPEAKER_03]: It's just this stuff

[00:38:26] [SPEAKER_03]: I find like for me most of the time I just find it ridiculous because I'm like

[00:38:30] [SPEAKER_03]: like

[00:38:32] [SPEAKER_03]: I mean, why do you need all this stuff?

[00:38:35] [SPEAKER_03]: Like I mean once you're like beyond 3000 square foot for a house and you have like a nice car

[00:38:40] [SPEAKER_03]: Like do you really need that stuff? But it's crazy. Like you wouldn't believe some of the houses

[00:38:46] [SPEAKER_03]: It's like, you know, there are three people and there's 17 rooms and

[00:38:51] [SPEAKER_03]: 15 bathrooms in the house. It's like, okay

[00:38:54] [SPEAKER_03]: Yeah, I mean, I hope you have a team of cleaners like cleaning the house

[00:38:58] [SPEAKER_00]: Well, that's just it right you need now an entire team to manage your stuff and I have more problems

[00:39:04] [SPEAKER_00]: Have you ever read the book the art of not giving an f?

[00:39:08] [SPEAKER_00]: No, but I like uh, I like the title. Yeah, this is a very popular

[00:39:13] [SPEAKER_00]: kind of self-help be book

[00:39:15] [SPEAKER_00]: But the whole idea is if you have that mega mansion with the 17 bedrooms

[00:39:23] [SPEAKER_00]: Like life is just a series of problems that you have like good ones and bad ones

[00:39:29] [SPEAKER_00]: Like there's always problems. You can't escape problems

[00:39:32] [SPEAKER_00]: So you're trying to coordinate your life around what are good problems and what are bad problems

[00:39:36] [SPEAKER_00]: And people work their whole life. They grind this they sell their company

[00:39:41] [SPEAKER_00]: They get a 17 bedroom house that they think that will make them happy

[00:39:45] [SPEAKER_00]: And now they have mega mansion problems

[00:39:48] [SPEAKER_00]: Now they are like hiring and firing maids or like they bought this

[00:39:53] [SPEAKER_00]: mega yacht and now they have to spend

[00:39:57] [SPEAKER_00]: Around a third of the price of the yacht per year on the team that has to live there and like

[00:40:03] [SPEAKER_00]: Now you've just created a shit show for yourself. You just created a big problem

[00:40:07] [SPEAKER_00]: So I I hear you. I think that that's a crazy thing to do

[00:40:11] [SPEAKER_00]: But

[00:40:12] [SPEAKER_03]: People do it. Yeah, exactly. I mean, you know, maybe they have like, you know, every day of the month

[00:40:18] [SPEAKER_03]: They sleep in a different bedroom

[00:40:20] [SPEAKER_03]: that could be

[00:40:22] [SPEAKER_00]: The 12th the 12th of the month this yeah, exactly. This one's got the theater and the

[00:40:28] [SPEAKER_03]: You know the home theater. This one has a pool. The other one has the fireplace

[00:40:31] [SPEAKER_03]: You know, let's switch it up different vibes

[00:40:35] [SPEAKER_00]: different vibes

[00:40:37] [SPEAKER_00]: That's gonna have to do it for today

[00:40:39] [SPEAKER_00]: You and I both have to run we have

[00:40:42] [SPEAKER_00]: Written here and ready to go

[00:40:45] [SPEAKER_00]: Stocks on our watch list for next week. So we will uh stocks under watch was presented by our friends ecu bank

[00:40:51] [SPEAKER_00]: Will happen next week because we are out of time on the show here today. Thank you for listening to the pod

[00:40:57] [SPEAKER_00]: We really appreciate you guys for tuning in

[00:41:00] [SPEAKER_00]: We're here mondays and thursdays if you haven't listened to the real estate show

[00:41:03] [SPEAKER_00]: They're there Tuesdays and Fridays on the canadian real estate investor podcast really good stuff there

[00:41:10] [SPEAKER_00]: You know timely to tune in there if you haven't in a while with

[00:41:14] [SPEAKER_00]: changing interest rate environment

[00:41:17] [SPEAKER_00]: lots of crazy stuff happening in the world of

[00:41:20] [SPEAKER_00]: Real estate investing especially in some of these major markets

[00:41:24] [SPEAKER_03]: The mortgages too. So they did with the new 30 year amortization

[00:41:28] [SPEAKER_03]: So if you you want to understand a bit more what it means those big announcements that will take effect december 15

[00:41:34] [SPEAKER_03]: Go back a few episodes and uh dan and nick do a great job breaking that down

[00:41:40] [SPEAKER_00]: I got it. I got a tune in because there's been some big hitters in the in real estate in terms of news canadian real estate in the last

[00:41:47] [SPEAKER_00]: 30 days

[00:41:48] [SPEAKER_00]: Yes, oh yeah, it's changing. So it's a good time to tune in

[00:41:51] [SPEAKER_00]: Thanks again, uh, and you know off the top here

[00:41:54] [SPEAKER_00]: You saw the question from bob if you go to our website the canadianinvestorpodcast.com

[00:41:58] [SPEAKER_00]: There's a button on the right to leave a nice little voice message as long as you don't ramble and the

[00:42:02] [SPEAKER_00]: Voice quality is solid

[00:42:05] [SPEAKER_00]: There's a pretty decent chance you get on the show. So that's at the canadianinvestorpodcast.com go buy a $500 mic

[00:42:12] [SPEAKER_03]: Record something send it over and it'll be good. Yeah, then return the mic pull us them on. Okay

[00:42:17] [SPEAKER_00]: You know get the get the intro deal on the crave on the crave subscription

[00:42:22] [SPEAKER_00]: And then just bounce it out of there. That's too good. That's the way to do it. Yeah, that's it

[00:42:27] [SPEAKER_03]: I'll see you in a few days. Take care. Bye. Bye. Bye the canadian investor podcast should not be construed as investment or financial advice

[00:42:34] [SPEAKER_03]: The host and guest featured may own securities or assets discussed on this podcast

[00:42:40] [SPEAKER_03]: Always do your own due diligence or consult with a financial professional before making any financial or investment decisions