The Smead Book List - Spring Book List

29:03So Cole and I had this wonderful experience where Cole was going through the CFA process back in 2011. And the guy that – I was finishing it back then, yeah. The guy that ran the program said we have more candidates for CFA in the Far East than any place in the world. And the one thing we never have is anybody ever go talk to them about investments, about what to invest in. And through coal, Tom Robinson, I think, was the guy. Shout out to Tom, by the way. Hey, Tom. So he said, we will fly you to Singapore and these first places. We're already going to be in Asia, yeah. Yeah, to these places. And we'll have you talk to these CFA societies.

29:52And we'll put you up and we'll fly you over there. And it was a great experience because we got to go into the heart, and that was at the height of the excitement about the brick trade. Or really China. The growth in China, which was causing a boom in Western Australia because that's where they'd load inputs in Australia on a barge and take it up to China. And it was causing this natural resources boom all the way around the world. And then soon after that, the guys from Australia did this show about the empty malls. In other words, they'd been building condo buildings, and people were buying these condo units as investments like hotcakes, yet they're all empty.

30:46No one was living in them and no one was going to the malls that were built in the same area of the cities where all these new condo buildings were being built. And that is a perfect picture of what you're talking about in the financial bubbles. And now the banking system in China has been poisoned by the fact that there's a lot of default associated with that. Yeah, the interesting part, if you look at their book and you think about what we've seen and what we talked about with Too Big to Fail, levered real estate bubbles always deflate. If you're in a democracy, they deflate quickly. If you're in a communist society, they deflate slowly.

31:32I think that would be the one lens I would say. Those bubbles were there, but in the case of China, it's just taken years. And if you look at the stock returns, you look at the banking returns, et cetera, it's happened very, very slowly over time. So on our way over to fly the second time, Cole didn't go. I went to Shanghai and Beijing. And on the flight over, I told Cole's mom, Becky, I said, honey, I said, I want you to realize that every single person you're going to interact with while we're in China under the age of 35 is an only child. and that just, you know, for somebody that, you know, grew up in a family of four and we have five kids ourselves, I mean, you don't think about that.

32:17And that also means mostly male because they all wanted a name bearer. Yeah, infanticide. And so therefore – Infanticide. So there's way more boys than girls and every one of them is an only child. And I thought – my mom was an only child and she was a wonderful woman but she was a little psycho for that reason. And imagine the whole nation of people that are a little bit affected by being an only child. Yeah, let's see. The book I'm just cracking now is The Great Math War by Jason Socrates Barty. He's giving a history of really math and he does it through three people, George Cantor, which would be theory, L.A.J.

32:56Brewer, which is intuitionism, and then David Hilbert for formalism. And so I've kind of been in this like short history anthology, like Tom Griffith's book was a great short history of like, how do we get to where we are in compute? And so kind of like the wider math angle is something I was looking for when I found that book. Let's pivot to, you know, what you've had recommended to you or books that you're waiting to read. Yeah. A Will to Serve is actually a self-written book by a guy by the name of Jim Ellis. and I've actually been tempted. One of the books I'm tempted to write is I've been told by a number of people that since I didn't grow up in Seattle and I came there in 1980 and I lived there for 40 years and I was heavily involved in the Rotary Club and we attended church there, et cetera, I picked up a great view.

33:51Well, my biggest argument of what's gone wrong in the city of Seattle is - Well, just by the way, if you don't know this, like downtown Seattle is not what it used to be. So that's – if you haven't been there, it's not what it used to be. So what's gone wrong is the people that came before my generation, my parents' generation, they fought in World War II, and they had a strong sense of civic duty. And the number one citizen of civic duty was this Jim Ellis. And he led the effort to clean up Lake Washington when in 1950s and early 60s, you couldn't swim in Lake Washington. It was so polluted. So they cleaned up the sewage system.

34:37They did the same thing for the Puget Sound. And that's not a problem in Seattle right now. But what is a problem is there used to be a wonderful balance between the business community, the body politic, and government service. So the two senators from the state of Washington were two of the most powerful senators in the country. The Speaker, the head Senate guy, and Henry Jackson, they were super strong. The Gold Dust Twins. Yeah, they were there to bring federal resources back to all the major military operations that are strategically in the far northwest corner of the United States, which helped the Boeing Company, which was the largest economic engine in the local area.

35:25So the Boeing company got along great with the body politic. And then everybody felt a sense to serve. I was part of the largest rotary club in the United States at that time at the peak, 736 people. Started the Medic One program nationwide. That was started in Seattle. And what's happened is as the most successful people the last 25 or 30 years became a completely different generation, that the sense of responsibility to take care of the civic part of your community disappeared. So are you like saying that the millennials right, that the boomers just created bag holders? Is that weird? I'm teasing.

36:05Well, again. But to your point, I mean like many of the wealthiest people in society are boomers today and it doesn't seem to have changed the leadership. Well, think about it. We had the two wealthiest people on the planet either come from Seattle and start their business in Seattle or come to Seattle, raise the money for your business, and become the wealthiest back-to-back. And the local, whether it be Catholic Community Services or Salvation Army or Seattle's Union Gospel Mission, were begging everybody else for money because they were not getting – the most successful people in the city were not taking care of the civic side of the city.

36:49And that has hurt the city. Let's see. I got a couple books here. The Emergent Mind by Gaurav Suri. um i also have uh streetwise by lloyd blankfine he's been out kind of doing a roadshow tour um it'd be fun to have him on uh let's see our colleague will recommended the house of fidelity by justin bear which obviously is the history of fidelity and then the last book i just had handed to me that i haven't i've read it before but i i was reminded to come back and read it again was worldly wisdom uh which was munger's talk at stanford uh in the 90s um and i got a little green copy of that. I got one more.

37:27I forgot. The Kid Stays in the Picture, about Robert Evans, by Robert Evans and his closest associate. If you've seen the show The Offer, which is a show about the making of The Godfather, you met Robert Evans. And I'm guessing that this is going to be just a fantastic book. Yeah. So let's see. So to cap it off, we usually go to a couple of questions And I had gone to our client service team and just asked, like, hey, what are things you're getting questions on? And the first question that we get very commonly – I know I was on the road. You were on the road. Will energy stocks fall once the U.S.

38:07stops bombing Iran and the strait is open again? Yeah. So I'll be a little wonky with the first answer to that question. We received a chart in April of 2020 that showed that – We had the chart numerous times before that. Yeah. The commodities were the cheapest relative to common stocks in the 220-year history of the United States. The prior low points were at the bottoms of the Depression in 1932, at the bottom of the Depression in 1875, and at the bottom of the Depression in 1825. And so the answer is we are in probably a 15 to 20-year time period that began in 2020 where we have a rotational bull market in commodities based on scarcity, et cetera.

39:01Underinvestment. Underinvestment and scarcity. And we've seen it so far. Oil took off from 20 to 23. It corrected for a couple of years. We'll be happy to tell you how painful that is because you have to stay involved in it because we think it's going to be better later. And then the next leg starts. So we are in a rotational bull market in commodities. And over the course of the 15 years that end 2035, we expect that commodities will outperform common stocks like they have in all past mean reversion trades that started out the same way. Yeah, and one of the things that I think we have thought a lot about is, okay, so oil's up roughly, call it 50 % year-to-date, the commodity itself.

39:50So I go out and look at the stock and say, what are they up? Well, they're up about 50%, which doesn't make any sense just so we're all on the same page. Because if you look at, say, the EBITDA margins those businesses make, when your revenue goes up 50%, your profits don't go up 50%, your free cash doesn't go up 50%, they could double or triple. And in many cases, their free cash on a daily basis has tripled. And so a company is a leveraged way to suck up pricing power and thus returns when abnormally high returns come about. How do you get abnormally high returns? When there's a lack of competition relative to the change in supply.

40:25Yeah, the ESG people scared everyone out of the industry for about four or five years under the idea we were going to make a complete transition away from carbon fuels. and now AI comes on and you're using a massive amount of natural gas to make electricity and all of a sudden you realize, wait a second, we need oil and gas and we have not been poking holes in the ground for the last five years because we were shamed into not doing it. We hope you're enjoying the podcast. You know, we work hard putting together this show, but we work even harder for our investors at Smead Capital Management. At Smead, we believe in disciplined investing.

41:06which is why the Smead funds have a proven track record of long-term outperformance. If you're an investor who plays the long game and want to invest in wonderful companies to build wealth, we invite you to visit SmeadCap.com. Past performance is not indicative of future results. Investing involves risks, including loss of principle. Please refer to the prospectus for important information about the investment company, including objectives, risks, charges, and expenses. Read and consider it carefully before investing. Smead funds distributed by Smead Funds Distributors, LLC, not affiliated. Yeah, so what I'm probably most excited about is when you start to see these quarterly reports and companies are explaining how much money they're making on a per day basis, because if the stocks are not responding to the level that they should, what are these companies going to do?

41:56Real simple, they're just going to buy back a lot of stock. Buy back stock or swallow each other. So I think that's where we're going. The other thing too is, you just mentioned natural gas. And if our listeners don't know this, the value of natural gas is not based on how cheap it is to extract natural gas. I'll give you an example. If you go look at Waha pricing, which would be the pricing you roughly get in Texas or ACO, as they call it when you're up in Alberta, you'll see those prices are really low. In fact, if you go talk to the companies we own, like, for example, Diamondback Energy, they'll tell you they don't make any money.

42:30They actually lose money in their gas. So how is a company losing money in gas? And supposedly we're going to use all this for AI. Well, it's because you don't actually make money in gas. You make money in gas that gets out of the basin that it's in. And why those basins are so cheap is because it's gas that doesn't get out. So what do you get out with? You got to have a pipeline. And so when we talk about how do you get more than that gas when a country like Qatar goes offline? Well, the answer is it takes time and money because that's how you get things out of these basins through pipelines or transportation or to get it to a port.

43:06And so we're in this, like to your point about scarcity, we're in this old economics paradox where it's like we have an economic problem we need to solve. Huh, what's that gonna take, Bill? Well, it's gonna take time and money. And what's the only way to speed up time? Higher prices. Yeah. Because that incentivizes entrepreneurs to say, if you give me that price and I can lock that in, I will go out and take that risk. But so here's the weird part. The higher the prices go in the near term, the sooner the problem gets solved. Yeah. High prices lead to lower prices and low prices lead to higher prices.

43:44Now, here's one big catch. And there's a chart. I just put this out on my handle on X. And I'm sure we can reshare it. But if you look, historically speaking, the price of oil has roughly tracked the CapEx numbers. Yeah. Until the last four to five years, where prices have stayed relatively high and CapEx is not growing. Okay. And so I point that out because, well, what's different? Well, if we were having this conversation in the 2010s, and many of you know this, but we were bearish as all hell in the oil business. Because ultimately, it seemed like idiots ran those businesses. Well, and the brick trade excitement was causing there to be a huge premium.

44:23Correct. But the capital allocation of those businesses were poor, were terrible. So when you run all these - They were getting by. It was in a boom time. Nobody was paying attention to how well they were run, how efficient they were. Or their capital structure. Or their capital structure. So it was just a lot of idiots. All boats float. And then what happens is capital gets really scarce. And the case that was made, I'll never forget this, in 20, it's like, well, those guys are idiots. Those gals are idiots. They're never going to do things right. Well, now you look five years later, you're like, they've done a lot right.

44:57And they get this. So we always tell people, listen, people do not change over time or overnight. Like our wives would tell you we're not going to change overnight. But over time, yes, people adapt and they have time to adapt. And so what's interesting is to think about how many people said, you know, it will never change. And these companies have all adapted. Now, as we've talked a lot about the political regime and dialogue and ideas out there are that, oh, these guys and gals are always going to drill. And we're always going to have low oil prices. And because of that rhetoric, what is doubling down these energy companies on not investing any CapEx?

45:35Because they are so deathly afraid of the political environment that they sit around. Well, and they can benefit so much more from getting a much fairer price for what they're doing than they can by making it up on volume. I mean, there's a Costco in the retail world, right? And we own what we think is kind of the Costco in the oil and gas world, Diamondback Energy, because they can produce a barrel of oil at just about the lowest cost of anybody we take a look at. But the two - I would say maybe in the Permian, but then again, like those are shorter cycle wells. So there's inherent problems in any of these business models, which is that you ultimately at a high level, you have to reinvest.

46:18Yeah. So basically the next five to 10 years is going to be the cutting of the biggest fat hog we think that they've seen for a long, long time in their business. We were talking about this, but 2020 to your point was the best buying opportunity of the last 25 years in the oil business, full stop. To your point on a rotational bull market, commodities, the metals, actually their low was in early 16. So four years removed. But since oil is the biggest commodity market, you know, the dollar weighted low in commodities was in 2020. So last spring, the spring of 2025, where we had the tariff tantrum, that was the second best buying opportunity in the energy business.

46:56So if I was going to give you a way of thinking about it, are you getting the best buying opportunity at this juncture? No, the mean reversion in multiples has taken place. Here's the catch, and this is to Bill's point, is that the return on capital for these business is just going to be high. Going to explode. So it's like it's taking a business that can make mid-teens return on invested capital. And they might go out and stomp low to mid-20s for an elongated period of time off and on. And then as a backdrop to that, they're starting out being – the energy as a part of the S &P bottomed at 2.1%.

47:38Yeah. It was 16 % back in 2014 or something like that. Yeah. And so it's now gone from 2.1 to, say, 4.5. But from the scheme of things, how important is it as a part of the American economy? And the answer is it's incredibly more important than 4.5. Well, yeah, and here's another, you know, kind of physics equation to add to it. You know, like we said, Newton's third law is for reaction. There's an equal and opposite reaction. So I remember the first week this took place, the stocks didn't even go up. Yeah. It was like a, who cares? Yeah. Because they're so used to getting tricked in the stocks.

48:13Or also like Venezuela was short and cute, but it was adorable and it was over. Yeah. Okay. So that was the first week. And then second week's like, hey, it's going to end right away. And the third week, it's like, it's not ending again. And now we're in the mode of like, people are kind of giving up on the short lived conflict. You know, we're not there fully, but we're almost there. Well, you've opened Pandora's box. Correct, so those stocks are catching a bit. Now, what else are we seeing? We're watching the big dominant, big cap tech companies have trouble for whatever reason. I don't know, the future is unknowable.

48:45But I point that out because if the cool kids were big cap tech and they lose their cool kid status, there is so much capital involved in that. You know, to quote, since you mentioned the commodity chart, that came from Barry Bannister. And I remember when he was talking about this in 2020, he said, yeah, when some of the capital comes out of the things that have been popular and goes into things like this, like the commodity space, he's like, it's going to be like shooting a fire hose into a teacup. Okay? And that is what is starting to happen. It's starting to happen. Where some of the capital tricking out and saying, hey, what if we should do something else?

49:19So I always like to say, you know, why did Willie Sutton rob banks? And, of course, the answer to that is? That's where the money's at. That's where the money's at. So from a historical perspective, where we are right now is Americans own more common stock, just for example, relative to real estate, than they've ever had. There's more confidence since the last 15 years had relatively short interruptions. The bear market in 22 and the 60-day bear market in 20 are basically the only interruptions from the bottom in 2009 to now. Therefore, people have been sold a bill of goods that all they have to do is own the S &P 500 index and live happily ever after.

50:03And what markets love to do is to take the prior narrative and blow it up. They're going to blow it up. So if Willie Sutton wants to rob banks, which is, by the way, what's happening in the market every day right now, the money is in the Magnificent Seven and the technology stocks that used to go with them. Yeah, people are hitting the bid. They're hitting the bid. They're saying, get me out of here. I'm going to go do something else. Now, it just so happens they're trying to get money out of private equity at the same time, which could make even more entertaining things happen. So the other question that we're getting a lot right now is, will home builders do well with all the affordability problems, high rates, high costs, et cetera?

50:47So I love this question because, you know, as an economic historian, Cole and I both love economic history. The weirdest thing is the homes that are built in the United States, the biggest home building booms were in 1972, 1978, and 1984. That's measured by how many homes were built divided by population. We are trolling around right now four-tenths of a percent of population, and the peak in 72 was 1.15%, 0.95 % in 78, and 0.85 % in 1984. Now, why is that important? Because the mortgage rate in all three of those instances was higher than it is right now. So this idea that all the problems of the home builders have to do with affordability problems is not the case.

51:56By the way, you weren't here yesterday. We were talking about what the body politic might do with this subject. And I got to thinking about it. Right now, a couple can only give their child$19 ,000 per spouse that you can give$38 ,000 each year to your kids. Well, what if the United States government said, hey, for the purpose of buying a home, we'll raise that number dramatically. To$100 ,000. To$100 ,000 or$150 ,000. Because what's going to happen is these baby boomers, we're all going to die in the not massively distant future. And would you rather have the inheritance be more valuable to the kids over their lifetime now?

52:51Or would you rather have them be fat and happy as a 60-year-old themselves? Without kids. Without kids. And so that hit us the last couple of days. When it's like a legacy issue, but here's another way. So let's just say, let's not play the cards on the table. Let's just play the players at the table, right? Like cards up, you know, what matters. I think this is all going on under the heading of really two primary thoughts kind of dominating the market right now. One, that this spike in oil prices is definitely going to cause an economic recession. now coming from the same people on wall street that said there can never be another recession said that no no no that said that 22's rate rise in rates was definitely going to cause a recession and they got that wrong and now now why do i mock that because if we're spending seven percent of our gdp on deficit primarily to medicare and social security can we have a recession my theory is we can't.

53:57We just can't, whether we like it or not, because we normally only spend that in deep recessions, okay? So is it going to be the economic problem people argue? I'm not buying that. I haven't been buying that and I'm not gonna be buying it until proven otherwise because as Munger says, fish where the fish are. And there just happens to be a lot of fish betting against that right now. Yeah, most people. And the key to success is weak competition. So that's the first thing. The second thing is the other big narrative going on that again, I think I was driving the home building stocks is back to your point of affordability.

54:29Well, if we're having this trouble in the oil market, do we have the same confidence around the federal government? What if we actually have some fiscal problems on our hands? Well, by the way, my friends, we've had fiscal problems for five years that we're begging on and we didn't care about it for most of the five years. Well, and also - Let me finish. Let me finish. So I say that because what is not being said is what could happen here is that the stock market gets poor enough in terms of doing poorly for forward returns for investors, the idea that investors won't go out and buy treasuries, the AKA risk-free rate, they will go buy treasuries.

55:08Or this takes me right back to, I came in the investment business in 1980. I started cold calling people in November of 1980. And I would call a business owner. And if they were willing to take my call. I'd ask them, what have they been investing in? They said, well, I own the building that my business is located in. I have two rentals. I have a couple of oil stocks and I own some gold. Okay. And that's what people are doing. So Cole's point is well taken. The fact is that people, the average age of a first-time home buyer is 40 years old, which just blows my mind away. In the last 12 months, that is.

55:52Yeah. And having someone loan you money for 30 years to buy an appreciating asset with tax-deductible interest is the greatest thing that happens to 70 % or 80 % of adults in the United States. You're much more likely to create wealth in a normal 20 or 30-year time frame from that forced savings plan than you ever would with the behavior of normal common stock owners, meaning people get into the stock market, does bad for a while, they get out of it, and then they're not around for when the rebound is. The human condition is not that high a percentage of people normally do well in the stock market, which is why they used to hire professionals to do it for them.

56:39But the S &P 500 has been almost a perfect place for 15 years and now is loaded with the stocks that are going to get robbed when Willie Sutton comes looking for money. Yeah, I think there's three things that can go well on the rate side for the home building business at large. One is how do you get out of these big government debts? It's called you put too much cheap money out there and you inflate your way the heck out of it. Inflate your way out. So will I be shocked if we wake up and the short end of the curve is at 3 %? No. Preview of coming attractions, my friends. That's one. Two is that stock market troubles become great for bonds because ultimately if you're not a volatile stock.

57:19You're scared. You're great because you're less – you get a fixed return and you have less volatility. So that's two. The third part to this I think is the interaction of this. So for example, let's say you have a stock market does poorly and you're like, huh, that thing just went down 25 or 30%. My home's gone nowhere. That seems like a much better place to invest. So where we get beyond this idea of affordability, rather it becomes a conversation of what's my opportunity cost. So just so the listeners know, Cole's college education was funded with 10-year zero-coupon treasury bonds that were paying 14 % compounded guaranteed by the United States government in a custodial account where I didn't have to pay the tax because it was – It was below the level.

58:11It was below the level. The threshold. Yeah. Yeah. So think about where we've come from. Well, and by the way, here's the other thing too. Here's some quick math if you want to use this as like a self-help thing. Let's say you have a mortgage that you'd write today at 6.5%, let's just say. Okay. So a 30-year fix at 6.5%. I think I saw that's what Wells was writing on earlier this week, 6.5%. Okay. Free advertising for Wells Fargo there. So at that rate, right, what does it take in after tax income? Well, you just take your tax bracket and, you know, so if you've got a 25 % tax bracket, you divide that by 0.75 and that would get you your pre-tax.

58:51Multiply it by 0.75. No, no, no. Divide it by 0.75. You get your pre-tax return that you're getting when you pay it down. When you'd also have to adjust that by is the tax deductibility. So you'd have to account for that too because you get to write off the interest. So you take that, you take off the interest that you get deducted from your taxes and it'd bring you somewhere down lower on your cost. Here's what I don't get. Most first-time homebuyers, everybody, they're not in high-tax brackets. Shock. So the people that benefit the most off of paying down their mortgage would be actually high-tax brackets because what it does is your high-tax bracket means your pre-tax return is higher compared to your after-tax money you pay your mortgage off with.

59:32So the idea that everyone would benefit from paying off their mortgage, you know higher incomes with higher tax brackets pay off benefit from paying off their mortgage if inflation's running high and you get a you have a low tax bracket with high deductibility you win but the problem is back to like smeeds playing these games that they could take risk you can't win a lot of money playing poker every night and that's what the smeed family learned you can make a lot more money day after day after day in the long run playing risk in the stock market to common stocks and it's a more scalable business.

1:00:06So the great part about a house is it can build you a certain amount of net worth in a non-scalable way. And they don't put the price in the newspaper every day. And that's what everyone's forgetting right now is when the S &P 500 turns sour and that price is in the paper every day, it's going to be crazy watching people fight to get out. Therefore, the home builders, one thing they have going for them right now is they're not a very big factor market cap wise in the S &P 500 index. If you look at the top 100 market caps, that's where the money is. That's where Willie's going to rob. Yeah. And just like where we've been in the last 12 months in the oil business, to go back to our prior question, the thing you really wanted to buy, if someone's like, hey, what do you want to buy?

1:00:53In the oil business, I call it torque, right? Where the revenue growth in the business relative to the fixed cost on operating leverage causes the free cash flow to explode. That's where we're at in the home builders right now. The most attractive risk, in my opinion, is where you get torque, where the change in the business prospects over the next two to three years can take the fixed cost structure and drive the highest amount of free cash flow growth. Because if you go out right now, it's like we're getting the most questions on the home builders. People think they have this very dour picture.

1:01:25We were joking about this the other day. If someone goes back and says, what were the best buying opportunities we ever had in the home builder business when no one could see a bright future? 2012, 2011. Okay. Or in the middle of the pandemic. It was the most – well, first of all, it was a depression in home building. Correct. It was the most anemic economic recovery coming off a deep recession in U.S. history because it was a recovery that didn't include home building. Yeah. And they beat President Obama up about that, but he had nothing to do with it. But here we are right now. There are more people between 25 and 40 than there's ever been in the history of the United States.

1:02:04It's a 30 percent larger group than when the baby boomers, who used to be the biggest group, came through that age. Now, they're waiting later in life to get married. If they're going to have a kid, they're waiting way later. But at some point in time, the set of circumstances might cause them to – for the guys to quit spending all their money in bad sports bets and volunteer to be civilized by a fine woman. And if that happens, there is going to be a steady stream of homebuyers for the next 10 years. So the demand for homes is going to be there. We don't get to choose when the high rates and the difficulties of right now abate, but you're likely to get better prices when there is no end in the difficulties in sight than you would if you wait.

1:02:56See, I forgot something earlier, but I will mention it because you're touching on it. Our buddy and friend, Superfan Steve, had two book recommendations. I'll dovetail what you said. He said the evolution of cooperation by Robert Axelrod. he said this kind of falls into the human behavior biology idea but on your note that you just touched on superfan steve's closer to my age and he said he mentioned to me that he's having his first child his daughter soon so he's been reading the expectant father by armin brought and he also says but if bill is offering any parenting classes to let him know so uh you know for all of our listeners that are in that season, we will have to do like the Bill's how-to guide of parenting.

1:03:44You know, at least I'm here functioning as an adult and I don't seem to have the, you know, miscoded DNA or parenting that's terribly ruined me. And I haven't done enough dumb myself. I think Cole wants to get me arrested because, you know, when I was growing up, it was spare the rod and spoil the child, right? So I don't think that flies in today's world. But, well, that's a nice compliment, but Steve, I, you might be able to do better. So we might have to do like a special episode where like Bill and Becky's how to parent, uh, in 2026 for all the millennials having kids and, and buying houses post the age of 30.

1:04:23Um, uh, dad, thanks for joining me today and sharing with our podcast listeners. What is on the Smead book list for our listeners. If you have a great book that you'd like to recommend email podcast at smeedcap.com. That's podcast at smeedcap.com. You can also reach out to us on X. Our handle is at smeedcap. We'll give you a shout out the next quarter when we do this again, like we do with super fan Steve. Thank you for joining us for a Smead book list on A Book With Legs podcast. We look forward to the next episode. Thank you for listening to A Book With Legs, a podcast brought to you by Smead Capital Management.

1:04:56The material provided in this podcast is for informational use only and should not be construed as investment advice. You can learn more about Smead Capital Management and its products at SmeadCap.com or by calling your financial advisor.

1:05:31Thank you.