Ouster & Schaeffler: Two More Investicon Stock Picks, One Year Later | Stock Club 323

0:28This episode is brought to you by Accenture. Welcome to Stock Club, the podcast where we find and discuss stocks that anyone can buy, many of which we believe will go on to grow your wealth. As I mentioned last week, normal service is somewhat suspended, or at least it's tweaked, as we dedicate Stock Club to some of the insights that came out of last year's Investicon. In the anticipation, or in the hope that we excite you about the possibility of attending this year's event, which is on the 27th of August in just three weeks time.

1:10We are going to have an amazing event, which will be headlined by Michael, my co-host and I, and our VIP guests, which include co-founder of The Motley Fool, David Gardner, investor extraordinaire Bill Mann. We have chief investment officer of Texas Christian University, Jason Safran. We have sporting legend Simon Zeebo, who's the founder of Black Emerald Irish Whiskey, and indeed Robert Johnson, who is an Irish whiskey auctions expert, who together will tell us where we should invest in liquid gold. We also have Eric Bleeker, one of the most insightful and brilliant AI investors of our generation.

1:52Peter Slagers is going to be there, the founder and chief investor at Compounding Quality, which is probably the most followed investing newsletter and sub stack. He is also followed by people like Jeff Bezos and many other luminaries of the business world. We have Dean Mary Margaret Frank, who is the Dean of UNC, the University of North Carolina and she is not only a teacher and researcher and academic but she's a leader in the world of investing and thought leadership for investing and we have also have James Giardella who's the CEO of Liquid. We have an amazing lineup. There is no substitute for in real life experiences especially one of this caliber between the buzz and the beer and the brilliant minds and each speaker will give you the three investments that they believe will create the most wealth over the long term.

2:51And as I said last week, this year's InvestorCon is going to make last year's look like a warm-up act. We're going to save three early bird tickets per week that you can only get by emailing Brian, B-R-I-A-N, at mywallstreet, that's M-Y-W-A-L-L-S-T dot com, and he'll hook you up. right mike cadet and scale as we say in our native tongue yeah a bit slow moving here after a long weekend um some mates some mates came over so it's been a heavy few days just trying to get back into things but a little horse i think you might be able to hear my yeah always a little raspy you've given me four cues that two irish people will immediately identify as you are over served between i'm a bit hoarse i had a long weekend like these are so in ireland there's a kind of i think culturally it's a cultural insensitivity to say someone is alcoholic because historically you're saying now to me no no no no no no no no i know you're not i know you're not but my point is that we don't ever we skirt around the subject of saying alcohol because historically uh it just wasn't discussed it was impolite so we've a load of code language that talks about long weekend bed horse i'm a bit tired and all of these are code languages i believe to tell someone that you had a few drinks yeah pretty much i think i feel like the implication was there yeah right so what we decided we're doing as we did last week and we're going to do this week we're going to pick some of the handful of stocks that were discussed at last year's investicon to check in on them to describe them to see how they've gone and also to see where they're going and um i'm going to go with another that eric bleaker pitched to the room who are you going to go with mike this week same again yeah i have a really interesting company here um actually i'm going to start out i have this this is for real stock nerds now but i think there's like a subset of the stock market or a niche of the international stock market where it's a collection of stocks that all come from europe they all have someone's last name as the company name yeah they're all about 100 years old they started off making some industrial machine or steel girders or ball bearings or pots and and have developed into some massive industrial conglomerate that hires 100 ,000 people across the world.

5:14More likely there's some bad history there in the 1940s that nobody wants to talk about. There's a collection. So we're talking about Schaeffler today. There's Schneider Group, Siemens, Ericsson, Phillips, Henkel. I just thought, oh, I was reading about this company more and more. I was like, there's so many companies that are very like this. Oh, yeah. So you're talking about your implication from what I'm hearing is like their involvement in war efforts on possibly the wrong side. Is that correct? A lot of them are all German companies. Yeah, yeah. But it is why they all have this similar origin story of like John Siemens went and figured out how to make ball bearings.

5:51Yeah. And then 150 years later, there's 100 ,000 people working for Siemens across the world. Wow. Or whatever it is. I sometimes think of like Hugo Boss, the premium tailor to, is it men? Did Boss only do male wear? It's good to do both. Okay, well, either way, Hugo Boss was Hitler's friend, as far as I know. Yeah, yeah. He designed him lots of uniforms. Yeah, he designed him lots of uniforms. And now all these decades later, just a couple of generations later, there it is on a Main Street brand and history has forgotten, if you like. Okay, nonetheless, we're going to put history in history's box and move forward with where the businesses are now.

6:30What company are you thinking of, Mike? So the company is called Schaeffler AG. And it's been a really interesting 12 months since Derek picked it at last year's Investicon. So he picked it as a potential frontrunner for what he called the next big thing, which is robotics and automation. That doesn't really tell the whole story of the business. It's kind of a burgeoning aspect of it, but it has been the story of the business in the last 12 months. It's up over 50 % in that time, but that was absolutely not a straight line. So from last August to January, the stock rallied about 150 % more or less.

7:04and since about all-time highs in January had a rough Q4 report in March and it's roughly down 40 % from there. So a really strong 2025, quite weak 2026, but in the last 12 months, very impressive returns. It's a lot of volatility to get along those ways as well. So we'll go through that, we'll go through the volatility, we'll go through the robotics angle. But first, you kind of have to explain the underlying business because the robotics is only a small aspect of it. And that kind of lays into the whole story of the stock right now. So at its core, it's a major supplier for the auto industry and it's got four main divisions.

7:48So it's got e-mobility, which focuses on electric vehicle systems, power electronics, hybrid drive systems, and electric motor components. Then it has the more classic internal combustion engines division called power training and chassis, which covers engine systems, transmission components, chassis technology. Then it's got vehicle lifetime solutions, which is the aftermarkets business. So you have that recurring, consistent revenue supply and spare parts or repair services, essentially. And then the last division is called bearings and industrial solutions. So this comes in the form of precision bearings, linear guide systems, industrial components across like a bunch of sectors here.

8:29We've got wind, energy, aerospace, heavy machinery, automation, robots. So just looking at that on a helicopter view, very diversified business straight off the bat. You've got the EV trend while also still serving the glass combustion engines. You've got the entire auto industry, but there is plenty of non-auto-related revenue too. And then you've also got some reliable recurring revenues in the aftermarket spare parts business. So it is a big, classic, old European industrial conglomerate. It touches an awful lot of industries. It has, I think it's got like 120 ,000 staff across the way. But all the excitement around it, why Eric picked it, and all the attention the stock is getting is the robotics aspect.

9:20So within its deep library of IP and patents are essentially the necessary building blocks for humanoid robotics so this is stuff like rotary and linear actuators precision gearboxes e-motors sensors like really high tech stuff the routers and gooders like you always say but like precision precision engineering so according to schaeffler a single humanoid robot requires between 25 and 30 integrated actuators for its major joints so if you're thinking of a robot like is in the major joints it look like humans major joints so these the ankles the shoulders the elbows um so it's basically building out how these robots move uh and the thing which jper then is that it builds out every key component of those actuators in-house so it's all vertically integrated now we compare it to other robotic startups that would have production bottlenecks schaeffler has all of this 80 years of manufacturing process factories and conveyor belts all across the globe as i said over 100 000 staff and also i think what's the most important distinction here is it's got existing cash flows to support the robotics projects that you know will likely be unprofitable for a while so it is a really interesting fight interesting point of a business where you're in this hot new industry that's got an awful lot of excitement got an awful lot of hype but you are a kind of old stalwart in it so you kind of there's an aspect of enjoying the best of both worlds while also you'll see later on the inverse of that too so what's interesting about this as well is that because of these conveyorbusters factories all across the world it actually employs humanoid robots in its own manufacturing process too so it can see them in action it has a feedback loop it sees what's needs improving and it passes that information on to then the oems that go and make them because it doesn't actually go and make them put them all together itself but in this sense it's both a customer and then a supplier to the ones that do so far it's it's some really exciting progress really exciting partnerships so it's partnered with neuro robotics n-e-u-r-a um humanoid another startup from the uk a chinese startup called roke r-o-k-e robotics so all three of these are like the futuristic looking uh i i robot was that the woodsmith movie um those humanoid robot startups that you would see out of sci-fi essentially um or like the uh the tesla optimus really exactly yes tesla optimus will be the most famous again is is kind of in a similar situation although it is actually the end manufacturer of them in that you know it's not reliant on this project for revenue whereas the pure plays are um so it kind of falls into that category too and then it also has deep relationships with more traditional industrial automation companies like kuka kuka is another one as well so it really is establishing itself in this industry and it's very exciting so like the company has a president of robotics and he recently said the future of humanoids depends on production readiness uptime serviceability and serviceability at physical ai progresses sheffler's expertise in scalable automotive manufacturing special machinery and life cycle services addresses the hardest barriers to adoption positioning us as an ideal partner for for humanoid oems so that's really putting itself out there as one of the key suppliers we're the key pick and shovel plays for robotics as a whole or for this new wave of humanoid robotics which people are getting really excited about and they use the term physical ai and that's what i think a lot of people see a manifestation of this new wave of technology becoming like it's what tess is getting really excited about it's what an awful lot of startups are getting really excited about what like you see private equity getting really excited about and you get that in schaeffler with a sleepy old Germany company that's been around for, well, it's been around since 1946 officially, but it's been around longer than that too.

13:39So it's a really interesting business and it does provide both aspects of it, kind of has the new access to the exciting industry while also having reliable cash flows from the auto industry. And now that has kind of bit it in the backside of Smallbish so far in 2026 i think the stock is down stock's down about 40 since late january uh it's down about 15 on the year and all the hype kind of that the air got let out of the balloon around march of this year so at its uh final year results forecast came in way below expectations both in terms of revenue and margins thanks to a fairly look grim looking outlook for the global auto industry so there's a bunch of price competition brass tariffs the european and chinese markets aren't looking particularly great for this year and which is a good reminder of the fact that this is this is not a pure place do you know what i mean it makes over 20 billion quid 20 billion euro a year robotics is going to be a tiny portion of that and yes this has plenty of advantages compared to pure plays but it also means that its results are dictated by so much more too so it's an interesting one it's high potential but then it's also a legacy business and if you think about a business that takes in that much revenue 23 billion quid or something uh i think from last year mostly from the auto industry for the robotics component to become so significant it's going to have to grow leaps and leaps and bounds in a very short space of time so it's a weird one it's kind of caught between two two ferns in a sense um but yeah it is it's really interesting like there's loads of excitement there i mean like the speed at which it rallied at the end of last year i think it was up 144 percent in the space of about six months it was completely related from you know this auto supplier to this new exciting technology this next step i was in physical uh physical ai technology there's some very very positive signs around it but again, it's also a Sleepy Auto supplier at the same time.

15:43So it's weird to see kind of two companies in one in that sense. But I can see why investors are excited. When you look at ancient companies, specifically from, usually from Europe, I should say, you very often find they've over the dozens and occasionally hundreds of years, they've managed to float everywhere. So when I stuck in Schaeffler there, as you were describing it, into my stock finder, I noticed it's more or less floated everywhere. Munich and Hanover and Hamburg and Stuttgart and Vienna and whatever. But it seems like their primary listing is Frankfurt, maybe? Well, Frankfurt would be the biggest German exchange.

16:28Yeah. They're listed in India and they have OTC in the US. over the counter, which means your regular American brokerage firm should be able to buy them. But when I look at them, so it's a seven billion dollar business, or sorry, euro, I'm looking at the euro exchange, seven billion euro, but it has so many stock exchanges. It is just unbelievable. As I said, you occasionally see it in these European ancient businesses.

17:04Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most. Learn more at Accenture.com slash Spotify. Yeah, and there's also funny stuff like the family trust still owns half the company. There's loads of funny stuff. Again, that's just the old European business story, whether you're talking about Porsche or whether you're talking about Schaeffler.

17:43You get that kind of funny business happened over 100 years, as it invariably does. and for our listeners interested spelt S-C-H-A-E-F-F-L-E-R Schaeffler you probably got that but nonetheless it's worth knowing so yeah if there's any if there's any golfers listening yeah it's a mixture of Scotty Schaeffler and Xander Schaeffler but yeah no it is it's an interesting one because the humanoid robotics is such a speculative industry right now and there are companies we we had this conversation you know you talked about quantum and i kind of said the pure plays would be way too risky for something that will come to fruition so far away um but it is interesting to see that there are companies like tesla or like schaeffler that have very much skin in the game while also not be completely reliant on revenues from humanoid robotics in any time in the next five or ten years Yeah, there's similarities to that too.

18:50I was reading a very interesting paper on the challenges of developing a humanoid robot and the hand. The humble human slash humanoid hand has so much mechanics in there, so many intricate parts that work. We were given at birth things that technology in 2026 is really finding it very difficult to create, although it will get there. and the motor control of our fingers and the sensitivity required and the feedback loop in each finger and the small mechanical movements is unbelievably complex. And I guess to the layperson who's probably watched too many sci-fi movies from Star Wars, you kind of think, eh, that doesn't sound too hard.

19:34But I don't know if we'll see a robot put a guitar on their lap in the next 20 years and be able to play a tune with the dexterity of a human being, that feedback loop. Maybe 20 years is a bit long, but I was certainly thinking... But a guitar is a great example. It is a good... Something you never want a robot to do. Do you know what I mean? That's art. That's what you protect. You want the robots to be doing the meal tasks. That's right. And I changed direction during that sentence because I was going to say the piano and I realized, no, I'm sorry, we've already had robots play pianos for a while, but definitely the guitar where there's a sensitivity the feedback loop on both hands but yeah it is amazing the complexity of this industry it's not as simple as it looks and it seems like we have a 100 plus year old giant seven billion dollar mover of giant metal things going into the area and making it bringing that dream kind of closer to us yeah very much so it is interesting I would say the natural progression would be that Schaeffler would end up spinning off its robotics division and to get its own valuation based purely on that rather than based on the current stuff.

20:53but it has the safety net, I suppose, to develop it as much as it wants within this ecosystem already and pour in the cash flows to where the business has the highest potential to earn money and earn a higher multiple. So it is interesting to see what plays out. I would be very surprised if we don't see a spinoff in the next 10 years. What also adds an interesting dimension is very often businesses that pay a reliable dividend are in businesses that are super old, super established. They just turn out profit and turn it out in the form of dividends, usually to keep pension investors happy. And big family members are key shareholders happy.

21:36But Schaeffler is pumping out a dividend at the moment of 4.2%, which might very well be tied to the thing you said earlier, where a family has a controlling interest or sorry, a significant interest. But 4.2 % dividend is huge, folks. So for every million bucks you have invested in Schaeffler, you're getting a check through the door, metaphorically, of 42 grand a year. That's pretty nice income from an albeit big investment for most, but a big investment that is future relevant. They're not just going into something that's in slow motion decline, whether you might regard that as Philip Morris or Diageo or something like that.

22:19We're talking about a business that really is churning out stuff that is powering the next generation of machines. Okay. What have you got for us? So what have I got? Well, it was also another Eric pick. So Eric sat up there. He was brilliant. And he's back this year. He just, as you said in last week's episode, he threw out idea after idea. And the guy has the Midas touch and isn't known as one of the best AI investor commentators in the world for nothing. but he brought to all of our attention a business that I subsequently pitched in Horizon because I liked it so much and still like it. I have not bought shares but I watch it closely and I keep an eye on it quarter to quarter and it's called Ouster.

23:06Do you remember Ouster Mike? You're gonna have to remind me is this LiDAR? Yeah well done yeah it's a San Francisco based lidar sensor maker born out of a 2023 merger with velodyne and it builds high resolution digital lidar for four markets at the same time i'm going to explain what lidar is in a minute but for now it builds stuff lidar stuff for automotive industrial robotics and smart infrastructure now so yeah you picked the other robotics pick i didn't realize this yeah there you go, a quinky dink, as one of my kids used to say. As one of my boys who was now a man used to say when he was a child, that was a quinky dink.

23:53So just to remind listeners, because I'm pretty sure I spoke about Ouster on the podcast before, and I know as a fact that you spoke about LiDAR. We spoke extensively about Tesla, but just LiDAR stands for light detection and ranging. light detection and ranging that's lidar and it works by firing rapid laser pulses pulses and measuring how long they take to bounce back we've all read when we were in school how a bat can see a cave it shoots out a little squeak and then it can hear the shape of the cave well think of lidar a bit like that it builds a precise 3d map of everything around the sensor it's the eyes for autonomous vehicles it's the eyes for robots and drones and it tells them exactly how far away objects are down to centimeters regardless of lighting conditions so in the pitch dark a lidar sensor can see what's in in in its vicinity and older mechanical lidar used lots of spinning parts inside them and they were expensive and they were fragile but new digital lidar such as the stuff that ouster makes runs on standard semiconductor chips instead which has driven costs down very significantly and made it viable for mass market use across all the sectors i mentioned like automotive and robotics and defense and smart infrastructure and all those kind of applications and just for the sake of the conversation uh tesla notably does not use lidar for its self-driving system.

25:35And it's one of the, I suppose, best known and best discussed contrarian bets in the industry. And whether you listen to Elon Musk or more, Kathy Wood in ARC, who is a commentator on this specific choice made by Tesla, they are arguing, Elon and Tesla are arguing that LiDAR is a crutch and it's unnecessary if you solve for vision well enough. So Tesla specifically has full self-driving, as we know, and it relies purely on cameras, plus the AI neural networks are a vision-only approach rather than the camera, plus LiDAR, plus radar sensors, as used by companies like Waymo and Cruise and most traditional auto manufacturers.

26:23So that's not LiDAR. But what Ouster does is it makes the eyes for machines. and it tells them, as I said, where things are. And it is a very future-relevant business. So let me just start by saying, when Eric spoke about Ouster at Investicon 2025, it was floating around, do-do-do, like something like 28 books, and it is now about nearly 45 books. So it's up about 90 % since Eric said, this is a good one. And it is capitalized today. its size of the business is about a$3 billion business. So it's about half the size of Schaeffler if you were to try and buy the thing in its entirety. And good luck to you if you can.

27:13But what's really interesting about Ouster is the margin story, the margins in this business. So the gross margin that Ouster has for every 100 bucks of sensors sold went from about$10 in 2023, So they sell 100 bucks worth of sensors and they had a margin of 10 bucks up to about 43 bucks in Q1 of 2026, the most recently reported quarter. That's a real serious business model improvement. And Q1 also brought a record number of units shipped in the quarter, 12 ,600 units. And it was the company's 13th straight quarter of growth. So it is a business that is highly future relevant, is growing, and is getting more efficient, as evident by its gross margins.

28:06However, recent volatility has been extreme. And I think when you look to the big picture, as you said earlier, Mike, the 40 ,000 foot view, we all know AI and all things to do with AI, whether it's software, hardware, infrastructure, or something in between that I haven't thought of, is very much a hot topic. And it's very much in flux. So the stock has been on a wild run. shares were up 37 % year to date heading into q1 earning earnings in early may and then by late june the stock ran from the high of like 30s to mid 40s to the close today um they even hit 62 26 um look sorry no they hit 64 bucks um there in recent weeks as a result of a whole bunch of catalysts which is expanded manufacturing partnership at benchmark electronics which which is targeting production capacity over 100 ,000 units a year for the new Ori V8 sensor family, which is a deal with AIM, Intelligent Machines, for autonomous heavy machinery, and a collaboration with Field AI, extending Rev8 into industrial robots, and so on.

29:19They have a higher demand for the stuff they're building, and they have a pipeline of production that will meet that demand. So it really is, I mean, it is a business that is being used, like to bring it into a more practical example for American listeners, it's going live over 40 New Jersey highway sites near the MetLife Stadium ahead of, it went live rather ahead of the World Cup. So it kind of, Ouster was looking down at you during the World Cup. So what more can I tell you about it? Well, Ouster's OS1 sensor earned the Department of Defense certification, which, as you can imagine, if you are going to partner with the United States' Department of Defense, it's a high bar.

30:07You've got to build stuff that is unhackable and as close as possible unbreakable. And that is very significant competitive advantage or competitive moat rather than just another customer. You are serving the US government, which is the gatekeeper for a lot of safety for a lot of the world. So the 2026 revenue forecast was revised from around$200 million to about$220 million, which is great. So very recently they said, hey, we're going to do 10 % more cash in the till than we originally anticipated. and the earnings per share which ideally we'd like to be positive because it should be a profitable business but it's not there yet is has been they anticipate it's going to improve from minus a book 37 a share to minus 95 cent a share which is a good improvement for a business that's moving towards profitability and very often high-tech businesses remain unprofitable for a long time um and earnings is projected to grow 48 over the next two years which is really impressive and i don't know if we put much weight on them as price targets but they're kind of saying it's around 57 to 60 bucks thanks to a customer attraction for this rev 8 and a widening widening addressable market and expectations of better pricing and so on but the catalyst that everyone is watching is the thing to talk about now.

31:33OUster reports Q2 2026. Wouldn't you know it, Mike? Mike, guess when they're going to report Q2. What's our special? Is it the day between we record this episode and when it comes out? Correct. So you, our little trick is we don't record this live. We record it a day or two before it goes onto the app store or sorry, into the podcast store. so they're going to report market close on august 6th which is the day that these words and my dulcet tones are hitting your ears so two days from now analysts have been modeling a sequential revenue decline heading into q1 so the pattern of beat expectations and guide cautiously is the thing that we're going to be watching out for and then i just want to wrap before before i shut up and we both decide how we'd split$10 ,000 across the two stocks we've pitched.

32:26And that is, I'd like to just talk about risks because it's a company with negative earnings. As I said, it's losing money. It's competing against Luminar, Innovis and a whole load of other makers of these little seeing machines in a pretty crowded field. And I do think they have the full supply, sorry, the full vertical wrapped up. They make not only the routers, but the gooters. They not only do the software, but the hardware. So insiders have collectively sold a whole bunch of shares. That's also worth mentioning. Not a lot by the world standard, about$2.6 million more than they've bought over the past 12 months, which I'm not too worried about because insiders sell.

33:13I wouldn't take too much on that. Nah, it's pretty negligible. And I think a lot of the recent share price move was driven by headline chasing momentum kind of traders. So the bottom line is that the fundamentals of this business, an improving margin, 13 straight quarters of growth, Department of Defense Certification, diversifying into robotics, and the defense really support a bull case. And it's one of these businesses that is, I wouldn't like to say hobbling along. I think it's assertively moving forward, but has the benchmark and attributes of a highly future relevant business in a complex area that is making hay and i think it's going to be way bigger in the future so um the earnings that we see the day after tomorrow will be very interesting you'll try and listen to our conference call not only because i'm interested in the business but because it is a horizon pitch not a horizon purchase but is one that I have liked.

34:14So that's Ouster and I continue to like it. So that's the one that I like. So you and I have both, thanks to Eric, revisited two quality businesses I believe and we should decide how we're going to split up our metaphorical granny's 10 ground. This episode is brought to you by Accenture. When your advertising operations fall out of sync, everything else follows. Spotify and Accenture are working together to reinvent the rhythm of ad sales, using automation, analytics, and smarter workflows to simplify campaign delivery and access better data across the business. The result? Less time spent on operations, more time connecting brands with the moments and fandoms that matter most.

34:58Learn more at Accenture.com slash Spotify. Yeah, well, it's pretty interesting looking at them side by side because in Eston's, and I know Schaeffler is a lot more than just that, but you have two potential pick and shovel plays for this new nascent robotics industry, which is high tech, loads of interest, loads of hype. One, you said, was guiding for $210 million in revenue this year. It's got a 3 % market cap. The other is it had 23 billion euro in revenue and has a 7 billion market cap, 7 billion euro market cap. I knew you were going to say that. I knew it. I mean, yes, that is a good point.

35:42It does. It's two ends of the scale there of the pure play and the hype that surrounds that. And so many factors behind that, including private investment, how it came to market and all the rest. And then the stalwart that is also playing in that market. And there isn't really a comparison. You know, it's tough to say one or the other because it would be kind of like, I don't know, do you want to invest in Google or do you want to invest in CRISPR? But like, well, there's a place for both in a lot of portfolios, but like they're not a direct comparison from one to the other. Even though in this particular case, they both are providing a similar role of being that supplier to these robotics OEMs.

36:27So yeah, it's kind of an unintentional robotics episode today. It was, yeah. A bush. Good a funk. now tell me so you have to tell your granny how you're gonna split to 10 grand so she's like right michael sit down there what you do my 10 grand where did you how much did you invest in schaefer how much did you put into ouster i would go well first i get the ouija board out patsy i don't know how to get you your dividends fuck there rest her souls both your grannies god bless them both but I would probably go eight, two eight and a half one and a half Schaeffler, Alistair Inverted for me baby cakes I'm going the other way around For sure if you're going there's no point no, any Schaeffler you're going to own a small price No, why would you say that?

37:13Why would you say that Michael? Well like it's the old argument of you know if this works out if it's this hype gentile business you know only a little bit will be enough yeah but more is not enough wall street baby probably my was it that michael douglas just more is not enough great greed is good more is not enough i want loads of the thing that's going to go big okay look we're uh so that is that so what i would say is i was talking to one of the forthcoming vip speakers at for investigon in just over three weeks or three weeks from the day we dropped this episode and the stocks that they're going to recommend are face melters they're mesmerizing you don't miss it we're not going live we're not putting this on tiktok or youtube or any of those other things you got to be there because we're building an in real life experience we want you there folks email brian if you need a deal email brian if you're up against it but just please come because you're going to enjoy it and meet someone the greatest concentration of the world's greatest investors and you're going to leave with their best ideas.

38:21And David's track history alone is just something of legend. So Brian at mywallstreet.com if you want one of the three discount vouchers this week. Mike, I hope you're thinking about what three you're going to recommend. But just if we're looking at the last four stocks and obviously we're cherry picking a little bit, but the last four stocks we recommended, we've got basically two doubles, Invertive and Ouster, and then Cloudflare and Cloudflare is up about 30 % and Schaefer is up over 50%. So worth the ticket price alone just there in those four picks. No question or doubt about it. We are going to have a laugh anyway.

39:02So that's that. Mike, I enjoyed this week's podcast and I look forward to speaking to you imminently about the next thing we talk about. 100%. All right, Evan, thank you for joining and thank you everyone for listening. We'll talk to you next week.

39:46This is sick!