Are Cheap Stocks All SCAMS?

24 Feb 2026 · 7 min · 3 chapters

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In short

Earn Your Leisure Podcast Episode Notes

Podcast Overview

  • Title: Earn Your Leisure
  • Hosts: Rashad Bilal and Troy Millings
  • Description: The podcast provides financial insights into the entertainment and sports industries, highlights entrepreneurship stories, breaks down business models, and examines finance trends, merging financial education with pop culture.

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Episode Title

Are Cheap Stocks All SCAMS? Episode Description

  • The episode discusses the validity of investing in stocks priced under $20, exploring why many are cheap, what metrics are important for evaluating stocks, and why it is advisable to focus on a select few high-quality companies instead of chasing after numerous low-cost stocks.

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Key Takeaways

Understanding Cheap Stocks

  • Cheap Stocks: Generally considered to be priced under $20, but many may be low for valid reasons:
  • Lack of volume
  • Weak fundamentals
  • Absence of a strong competitive advantage (moat)

Investment Philosophy

  • Quality Over Quantity:
  • It’s recommended to focus on 4 to 6 strong companies rather than spreading investments too thin among many cheap stocks.
  • Historical data shows that even large firms like Google and Microsoft derive most of their revenue from a few key acquisitions.

Current Stock Recommendations

  • The hosts were unable to present a list of promising stocks priced under $20 and cited the following potential acquisition targets as noteworthy but not necessarily recommended for investment:
  • Warner Brothers Discovery: Identified as an acquisition target.
  • Lyft: Mentioned as a possible candidate for acquisition.
  • Snap: Noted for potential value as a social media platform.
  • Ford and Mercedes-Benz: Discussed regarding their partnerships and future prospects.

Managing Investments

  • Concentration Strategy: It’s advised to maintain a concentrated portfolio (4-6 stocks):
  • Easier management
  • Reduced risk of conflicts between investments
  • Allows more capital to be allocated during market drops.

Other Investment Discussions

  • A debate regarding XRP (a cryptocurrency):
  • Opinions were divided on its viability, with some suggesting it is a long-term investment while others expressed skepticism.

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Discussion Highlights

  • The hosts emphasized the challenge of finding worthwhile investments among low-priced stocks, reiterating the importance of understanding the underlying reasons for their low valuation.
  • A key focus was placed on successful companies and the concentration of investments in them rather than diversifying into many underperforming stocks.
  • The need for engagement in the stock market was highlighted, with hosts encouraging listeners to reconsider their investment strategies based on the discussions.

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Concluding Thoughts

  • The episode serves as a cautionary reminder that not all cheap stocks are worth pursuing. Informed decisions based on company fundamentals and a concentrated investment strategy can yield better long-term returns.

For more insights and to join the community, listeners are encouraged to visit:

  • [EYL University](https://www.eyluniversity.com)
  • [Invest Fest](https://www.investfest.com)
  • [Earn Your Leisure YouTube Channel](https://www.youtube.com/@EarnYourLeisure)

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Additional Notes

  • The discussions emphasized the importance of ongoing education in investing and the various factors influencing stock market performance, advocating for a measured and strategic approach to building a portfolio.

Written by AI. May contain mistakes. Listen to the episode to check what was said.

Chapters

Tap a time to open that second in VO

Exploring Cheap Stocks

1:55 to 3:22

Discussion on the viability of investing in stocks under $20.

“And then after I left Xander's birthday party, I compiled an amazing list of 10 that I thought.”

Investment Strategies and Stock Picks

3:22 to 6:30

Insights on selecting stocks and investment strategies, emphasizing quality over quantity.

“I'm not even saying that I would invest in these per se.”

Debating XRP and Cryptocurrency

6:30 to 8:00

A lively discussion around the merits of investing in XRP and cryptos.

“I just said it's a good investment long term.”
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Transcript

Automatic transcript. May contain errors.

0:00Troy Millings:What if mind control is real? If you could control the behavior of anybody around you, what kind of life would you have? Can you hypnotically persuade someone to buy a car? When you look at your car, you're going to become overwhelmed with such good feelings. Can you hypnotize someone into sleeping with you? I gave her some suggestions to be sexually aroused. Can you get someone to join your cult? NLP was used on me to access my subconscious. Mind Games, a new podcast exploring NLP, a.k.a. neurolinguistic programming. Is it a self-help miracle, a shady hypnosis scam, or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

0:39Troy Millings:Run a business and not thinking about podcasting? Think again. More Americans listen to podcasts than ads supported streaming music from Spotify and Pandora. And as the number one podcaster, iHeart's twice as large as the next two combined. Learn how podcasting can help your business. Call 844-844-iHeart. You can scroll the headlines all day and still feel empty. I'm Ben Higgins, and If You Can Hear Me is where culture meets the soul. Honest conversations about identity, loss, purpose, peace, faith, and everything in between. Celebrities, thinkers, everyday people, some have answers, most are still figuring it out.

1:14Troy Millings:And if you've ever felt like there has to be more to the story, this show is for you. Listen to If You Can Hear Me on my iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This is Ryder Strong, and I have a new podcast called The Red Weather. In 1995, my neighbor, Anna Traynor, disappeared from a commune. It was nature and trees and praying. And drugs. No, I am not your guru. Back then, I lied to everybody. They have had this case for 30 years. I'm going back to my hometown to uncover the truth. Listen to The Red Weather on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

1:55Rashad Bilal:What's the best stocks on the$20? Oh, I love this question. And then after I left Xander's birthday party, I compiled an amazing list of 10 that I thought. You got 10. That would give you a great return. All of them. Okay. So write this down. Let's do it. None. That's great. I was like, if you got 10, bro, you were like, yeah. It's not a stock, but XRP, that's under$10. that's on the yeah that's on the definitely it's a great long-term investment but as far as publicly traded equities i went through the list i went through gpt i analyzed myself there's even just from a warrant standpoint and pre-ipo standpoint like most people who are getting in may be getting in that 15 bucks or 20 bucks so if you want something great at 20 or below there's no volume in it and no one wants to buy I wish there was.

2:56Rashad Bilal:I know we want to recreate the Palantir from 20 to 150 moment. There's not, they're an exception to the rule. There are none that I will put my money into. And I wish it was because I'm like, man, if this can go from 20 to 200, I look like an icon again, right? There are none. There are none. I'm glad you said that because I was searching. I'm like, I got five. Couldn't find one if you wanted to. I'm not even saying that I would invest in these per se. But I'm looking at it from the standpoint of who might come by them. What if we did that? Okay. An acquisition maybe? This might be something that's worth an acquisition.

3:35Rashad Bilal:So I got a list of like five. Okay. It's open on the list. So the first one, Warner Brothers Discovery. Okay. Which is, I mean, we already know. That's the acquisition target. Acquisition target. So that's under$20. Lyft. that 27th look yeah yeah i like the people over lift so i talked about this a few months ago or or tesla that's that's the tricky part they're not going to sell the uber but a competitor that needs a uh the technology of a ride sharing maybe you mentioned a company that makes a lot of sense that yeah so that would be an interesting one Snap like I said that social media that they have is still something that is worth somebody might find value in acquiring adding to the portfolio Ford Legacy Company not that just throwing it out there I'm not saying I'm investing I'm just saying these are under Mercedes now we talked about what they've done in terms of partnership and we actually first hand saw their partnership that they announced with NVIDIA could they could they change the way autonomous luxury looks in the future we don't know I don't know interesting but it's one that's under after that I couldn't find anything I really don't that was it and to the person who asked the question is two tech, two index to build confidence, to then build into seven to eight stocks.

5:23Rashad Bilal:No, you only need four good ones. If you rotate to six, great. If you study any business, even if you go to Google, Google has acquired hundreds of companies, Microsoft, hundreds of companies. There's usually four to six that drive 80 % of the revenue. Just a behemoth as YouTube that we're on right now. It takes you a while to invest in a bunch to understand that you only need four. At some point, you can replace the indexes and then just have concentration of four companies that you believe in. And then you want to push to have five to 10 ,000 shares of each of that company. But no, you don't want to have eight, ideally like four to six is a sweet spot because then you can manage all of them properly.

6:08Rashad Bilal:Not have too much risk on the table, not have them conflict with each other. Some of you like will message me and be like, hey, I got 16 stocks. What should I do? my first answer is always pick the four that you believe in that would do well for the long term because it's really tough to manage. You have your own index at that point. There's no need to have 14 to 15 stocks. Then you can pour more capital into them on the drops like we had on Thursday and Friday. So you don't believe in XRP? Let's get back to that. I just said it's a good investment long term. Would you invest in XRP? How much money?

6:43Rashad Bilal:I have positions in XRP. Would you invest$10 ,000 in XRP? Yeah.

6:51Rashad Bilal:Click down. Would you invest$100 ,000 in XRP? At what price? See, now we got to get current price. I'm never doing market order for nothing. Sorry. It's down tremendously from its all-time high. Where you at on XRP? I never believed the XRP. okay yeah all right you're shot every time my brother we need to make

7:19sediment could have changed that's our piece of shit coin whoa they're up 33 000 all time

7:26Rashad Bilal:yeah they are if you got it if you got it at zero zero zero hold on hold on when when did it turn the shit going every xrp has been a shit coin rishard you trolling my boy you trolling that's the first i've heard i've that's the first time i've heard that okay my boy trying to go viral okay come on i'm with you oh it's like sweet sweet so you and troy get into it then me and you okay i got you i got you the fuck you mean xrp or shit going clip that up the army with me the army with me all right i said this in thought club though if you do have an asset like xrp or your michael sailor you have to know who your enemies are though you have some big enemies that will thwart you for decades until they can take the asset class over i know a lot of the bitcoin maxis no black rock and the government didn't take it over the first iteration of it was from langley i say that every two weeks and i haven't had a cease and desist yet the first iteration of bitcoin of bitcoin you talk about

8:38Rashad Bilal:once again it's satoshi a person or a title like pope like that's

8:49Rashad Bilal:who knows yeah i know i know the dan pina clip but it's certain it's eras it's eras of the ming dynasty. They had a run. Russia had a run. The Island Boy had a run. Different runs, but what do I know? No, not me. Dame Kareem. Stop your run. One of the reasons that they called the game Kareem. Clip it up.

9:17Troy Millings:What if mind control is real? If you could control the behavior of anybody around you, what kind of life would you have? Can you hypnotically persuade someone to buy a car? When you look at your car, you're going to become overwhelmed with such good feelings. Can you hypnotize someone into sleeping with you? I gave her some suggestions to be sexually aroused. Can you get someone to join your cult? NLP was used on me to access my subconscious. Mind Games, a new podcast exploring NLP, aka neurolinguistic programming. Is it a self-help miracle? A shady hypnosis scam? Or both? Listen to Mind Games on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

9:57Troy Millings:You can scroll the headlines all day and still feel empty. I'm Ben Higgins, and If You Can Hear Me is where culture meets the soul. Honest conversations about identity, loss, purpose, peace, faith, and everything in between. Celebrities, thinkers, everyday people, some have answers, most are still figuring it out. And if you've ever felt like there has to be more to the story, this show is for you. Listen to If You Can Hear Me, on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This is Ryder Strong, and I have a new podcast called The Red Weather. In 1995, my neighbor, Anna Traynor, disappeared from a commune.

10:35Troy Millings:It was nature and trees and praying. And drugs. No, I am not your guru. Back then, I lied to everybody. They have had this case for 30 years. I'm going back to my hometown to uncover the truth. Listen to The Red Weather on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

11:20Troy Millings:and visit Myrtle Beach. Listen to Charlie's Place on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This is an iHeart Podcast. Guaranteed human.

From the publisher

Should you buy stocks under $20? We break down why most cheap stocks are cheap for a reason, what actually matters (volume, fundamentals, moat), and why focusing on 4 to 6 great companies beats chasing “the next 20 to 200” story.

 

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