MI Rewind: Peter Lynch & GARP Investing w/ Robert Reynolds

22:37And investors can be quite fickle in the sense where you go through a bit of a period where there's a lot of volatility. And without looking at that volatility as an opportunity, for argument's sake, I'll give you an example. In February of 2021, I wanted exposure to the fintech space. And when I looked across the board in terms of valuations, of course, there's lots of companies that I liked. For argument's sake, I would have liked PayPal, I would have liked Square. But I ended up investing in Fiserv because it was still a good opportunity. But the valuation of the company was, it wasn't as good an opportunity as for argument's sake, PayPal in terms of the business or Square in terms of the business.

23:11But it did give me a really good opportunity in terms of valuation relative to its peers. It wasn't my first choice, but in terms of valuation, it made a lot of sense. If you fast forward to the past couple of weeks, I've been unwinding my position of Fiserv to position myself in PayPal. And one of the reasons why I've been able to do that is because I focused on valuation. Fiserv is down 10%, but PayPal is down 65 % to 70%. Right now, I see that as an opportunity. So when we go into times of volatility where PayPal is down in the last six, seven weeks, 47%, 48%. And relative to its future growth, it's expected to compound at 20%.

23:47It's far more attractive than Fiserv. I see it as an opportunity. I did like Fiserv. It'd done very well for me to offset an awful lot of that downside risk. But now like this sort of storm, yeah, there's a little bit of volatility, but it's absolutely 100 % an opportunity to reposition your portfolio in what I would consider better opportunities. And so that's just a classic example where you get a little bit of volatility. Fund managers, they've got to position themselves to offset that volatility. Either raise cash, they have a problem with what's known as VAR, value at risk, and they conduct what's known as de-grossing when volatility increases.

24:20And the way I look at it is when volatility increases, that's where you want to get a little bit heavier. That's the risk and the market purchasing an awful lot of premium on the downside in order to offset that risk. And if that risk doesn't come to fruition, it's usually a massive opportunity. So that's another opportunity that retail investors have is we can view volatility as opportunity and not necessarily risk to reposition the portfolio, whereas fund managers really just got to balance that risk in terms of downside volatility. It's funny you mentioned Pfizer. I actually just recently had an episode where we talked all about Pfizer.

24:55It was with Bill Nygren and Mike Nicholas from Oakmark Funds. Fantastic episode if you or anyone in the audience would like to check it out. And we talk about the risk. We talk a little bit about PayPal and some of their other competitors, Square. But I wanted to transition. We talked about retail investors' potential advantages over Wall Street. Let's talk about their advantage over passive investors. You've had a video recently where you talked about how Peter Lynch has said that active investors have a massive advantage over passive investors in today's environment. Why do you believe this to be true, what Lynch said?

25:31If you take the index, it doesn't matter, S &P 500, and you were to break down its components and its weightings, and then you were to look at the valuation of the index in terms of forward price earnings, I think it's somewhere around 19 at the moment. So if you were to look at its weightings, 22 % of its weightings come from the top eight companies. So it's heavily skewed towards a small number of companies. And so the valuation is heavily skewed to a small number of companies. And that's the first sort of point that I would look at and say, oh, wow, that's kind of interesting. If you break down the full 500 companies, there's a number of companies in there that are disproportionately lower in terms of valuation.

26:07Like for argument's sake, energy coming into this year, the sector as a whole was only about 1.5%, 2 % over the past year of the entire index. And that was down from about 8 % a decade ago. So you can see there's disproportionate opportunities in terms of overvalued companies and undervalued companies. If you take that one step further and you look at companies that are not in indexes, so over the past 10, 12 years, we've had this revolution of passive investing where everyone just owns the indexes. Just dollar cost average every single month, month, month, month, month, just keep dollar cost averaging.

26:36That absolutely impacts those bigger positions in the index and they continue to grow and the valuation gets bigger and bigger and bigger. But companies that are not represented by an index will have a far lower valuation, produce a hell of a lot more cash flow. And there's an awful lot more optionality on that because they don't have that mechanism of passive investing. And so when you fast forward after a decade of passive investing, there's a lot of bloated companies, and there's a lot of very lean, very undervalued companies. And a lot of people talk about how overvalued the market is, looking at price earnings, but I don't think I've ever seen a period where we've seen so many fantastically valued companies at the same time we've seen so many overvalued companies.

27:15And so this is a massive dichotomy, and I think it's largely driven by passive investing. And so when you kind of break it down, if we start to see outflows for argument's sake, the indexes start to slow down a little bit, we start to see outflows and passive investing starts to reverse, active management is really going to start to excel. It's not necessarily that I'm bearish on the indexes. I just think that the upside is likely a little bit more limited, and you're probably going to see an awful lot more capital flow from passive into active, and there's a hell of a lot more opportunities. Some of the companies that I've bought recently are just bizarrely cheap.

27:48So I'll give you a quick example like Overstock is a company I'm very bullish on. It's got a market cap of 1.8 billion with 500 million in the bank and no debt. And it's producing 145 million in free cash flow. So I'm paying an enterprise value of 1.3 billion for 145 million in free cash flow. Plus they also have MDC Ventures, which is a sum of the parts valuation somewhere anywhere between$4 and$10 billion. So I get all that for free. Plus I get a business that produces in excess of 10 % in free cash flow yield on its enterprise value. And so I've never seen this sort of opportunity where there's so much value in the market at a time where there's so much overvalued companies.

28:24And I think we're going to start to sort that out over the next five to 10 years. Higher inflation is driving interest rates higher. And I think over the past year, what we've seen is not necessarily a recessionary sort of environment, but more so we're repricing risk. Let's say a company is at 100 times price of sales. Let's say they have a 50 % net income margin. Let's just say they're really lucky to have a 50 % net income margin, trading at 200 times price to earnings. So if you look at an S-curve, right? And a company normally starts at the bottom of the S-curve, and rightfully so, it should have a very high valuation because they're called essentially long duration assets.

28:57So you're overpaying today for all that cash flow that's expected to come. And so it has a high PE here. And eventually you're expecting the growth rate to ramp up, valuation to moderate, and eventually get to a point where it's a mature company and the valuation will be 20 times price to earnings. In order to go from 200 times price to earnings to 20 times price to earnings, you need to have a hell of a lot of growth just to get a decent return. And so I think as we move forward, we're starting to see a repricing of risk. And it's still early, but over the last six to 12 months, it's starting to look like we're moving into that direction where active investing should outperform passive investing over the next decade.

29:31I think if you adopt the principles of somebody like Peter Lynch, which is super simple, you have a massive advantage, just a huge advantage, certainly in today's market. Robert Leonard Very interesting. You mentioned Overstock as one of your holdings. I'm curious, what is your process for narrowing down your selection of potential stocks to invest in? Are you using some sort of stock filter or how do you approach that? Robert Leonard Overstock more specifically, I'll tell you how I came to that conclusion. I'll tell you a couple of different ways. I invested in digital assets. I bought Bitcoin at a broad amount of investments.

30:07I bought Bitcoin and a little bit of Litecoin back in late 2018, early 2019. And I've just been sitting on it ever since. And then midway around June, July of 2020, if you look at all these charts where it goes from, we'd be moving into the institutional phase in terms of adoption. So that was the next phase for Bitcoin. We've already seen early adopters and whatnot. We're moving into the institutional phase. And then MicroStrategy came out in June or July of 2020, and they bought like a billion dollars worth of Bitcoin. And that to me was a signal that we're moving into an institutional phase.

30:39We've since found out BlackRock are dabbling. We already know now that Bill Miller has half his portfolio in Bitcoin. Dan LeWeb is a third point capital. You have all these super investors that are allocating capital. KPMG now store Bitcoin in their vault, but that wasn't the case in 2020. And so I kind of made a little bit of a bet on what we were going to see increased volumes on exchanges while institutional capital comes in. It's not Joe Blog down the street investing$100 into Bitcoin. It's like this institution buying a billion dollars. And all of these exchanges would be able to get a couple of basis points or whatever it may be on large amounts of money and generate ridiculous amounts of cash.

31:15That was the thesis. And then when I started to look a little bit deeper, I came across all these exchanges, whether it was Binance, whether it was Coinbase, and I was looking at what was available and I came across T0, which is buried inside overstock. And then I realized that, and that's how I came to that conclusion was just Googling, trying to find out where all these exchanges are, how to get exposure. And it started out looking for a digital exchange. And then I bought an online furniture retailer because I got that for free. And that's sort of how I went down that rabbit hole. Other ways, when you have a good quality company, such as Facebook, which we can talk about in a moment, but Facebook is a company that I used to own.

31:51I'm familiar with the business. The earnings come out and I listen to the earnings just out of interest. Share price drops 26%. It comes down to a valuation where most of my fears and concerns are completely dissipated. And all of a sudden, I'm back in. So you look at pretty decent discounts in markets, you look at an awful lot of turmoil. Going back to my experience, March 2009, I bought into depressed assets. 2011, 2012, bought depressed real estate. 2018, 2019, bought depressed digital assets. And so anytime I see that kind of depressed asset, I like to do a little bit more digging. And then finally, just through screeners, where it's screening out specific multiples, free cashflow, balance sheet, growth and earnings, that type of stuff.

32:33They're the three different ways where it's more specific. It might be something that's, for argument's sake, a special situation. So Discovery was more of a special situation. The merger between Time Warner and Discovery, that was all over the news. And I said, you know what, let's see what the valuation would be, what the market would be willing to pay for, comping it relative to its peers, stuff like that. And then sometimes you invest in them, sometimes you don't. But once you do all that analysis, it's already there. It's stored in the back of your mind. It's in a folder on your computer.

33:01And if price continues to drop lower, then you just strike. You just put it to one side if you're not interested at a specific price. But if at some point in the future that comes around, you're ready to roll. And that's sort of how I do it. Let's take a quick break and hear from today's sponsors. Hey, it's Sean O'Malley, just popping in with a quick message. If you like this podcast, well, I've got great news for you. We've got a handful of other shows for you to explore, from learning about Bitcoin to embracing a richer, wiser, happier lifestyle. Just go into your podcast app and type in We Study Billionaires to find our collection of shows.

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36:36All right, back to the show. You had a video where you kind of walked through your stock filtering process. And I know Peter Lynch is pretty famous for using this approach of GARP, growth at a reasonable price. When you're looking at this filter, what are you typically looking at for growth rates? Maybe the multiple, say, price to earnings or price of free cashflow or however you look at it. I would look at the multiple in terms of price to earnings, price to cashflow, enterprise value to EBITDA, depending on the business. So for argument's sake, if I look at Amazon, which is a company I own, I'm not going to look at the price to earnings.

37:15I'm going to look at the enterprise value to EBITDA because they're in a massive reinvestment cycle. It's like$60 billion. So if I look at price to earnings, it comes in really high but I'm penalizing the company for reinvesting in the future. If I look at price earnings, I'm penalizing that reinvestment in the business. But if I look at enterprise value to EBITDA, EBITDA adds back an amortization of the capital expenditure. So I get a fair reflection of what the earnings would be. And so it depends on the business, depending on the ratio that I'd look at. So for something like Amazon, I prefer to look at enterprise value to EBITDA, but something that's that's consistent, the net gets close to zero, I'd probably look at price to earnings.

37:53If it's a lightweight business, I'd probably look at price to cash flow. And so depending on the business, I'd look at a specific metric. If it's got high capital costs, like a business that I own, for argument's sake, would be micron, I'd look at price to book. So what's the replacement value of that company? And how many more times should I pay for that replacement value if it produces cash flow? And so I'd look at a multiple to understand what a valuation is. And then I'd look at different stuff, like for argument's sake, return on invested capital to understand, are the management team generating a reasonable return for me?

38:23And what would you determine a good sort of return on invested capital? Well, if you think about the cost of capital, how much capital costs to a business, so there are simple calculations you can do, like the weighted average cost of capital. This will give you an idea of what capital costs to a specific business. So every business has a different capital structure. And so every business has a different sort of discount rate, let's call it that. You've heard it and discounted cashflow models and whatnot. So let's say it comes up at 8%. I want the return on invested capital. That's my hurdle rate.

38:50I want it to be above 8%. And so that's normally how I determine whether they're creating shareholder value. I'm paying a discount to what the market's willing to pay for it and stuff like that. Both of those are very important. It's also very important to dig a little bit deeper and understand what the competitive advantages are of a specific business. So one company I'm building out right now, I look at Crocs. From the outset, you might look at that and say, oh, it's just a boring sort of shoe company, but then you realize that they have patented materials like Crosslight, which is actually a competitive advantage.

39:20My wife will only buy Crocs because the plastic alternatives give you blisters. And so it creates this little barrier to entry that you can start to realize that the revenue growth is probably going to be a little bit more consistent. And so yeah, understanding the business, but also looking at metrics, such as valuations, return on investment capital, and stuff like that. So interesting. Now, I'd like to talk about another topic related to Lynch. He, sometimes in his fund, he held hundreds or maybe even over a thousand companies in his portfolio, whereas someone like Buffett tends to be a lot more concentrated.

39:53How do you approach the number of holdings in your portfolio? When I was reading about Lynch's strategy and how he holds so many companies, I was actually pretty surprised that he held that many, how he would be able to keep track of all these and keep up with all their earnings reports and things like that. So I'm curious what your approach is since you're a huge fan of Lynch yourself. The sweet spot for me, everyone has a different view on it. I mean, Charlie Munger has literally gone a leverage long bet into Alibaba. So everyone has a different view. For me, the sweet spot is like 25, 30 positions.

40:25As of right now, I think I have 23 positions. And so the reason why I've got a sweet spot there is because I know I'm not smart enough to get everything right. And I mean, when you look at, for argument's sake, Warren Buffett's track record, 20 % compounded for 60 years is incredible. And then if you look at some of the flaws over the years, so for argument's sake, selling airliners in March 2020 lows, or he had Kraft Heinz, IBM, all of these different mistakes that were made with Berkshire Hathaway, yet he still returned 20 % year on year. When I look at somebody like Warren Buffett, who's absolutely an investing genius, make mistakes like that, I'm sure I'm going to make a lot of mistakes along the way.

40:59And so I look at it in the sense where if I'm very concentrated, like Buffett's not going to invest in IBM unless he thinks he's going to make money. He's not going to invest in Kraft Hines unless he thinks he's going to make money. And those have been disastrous investments. And so the way I look at it is, look, I don't want to be over concentrated in one position because I can absolutely be wrong. But I don't want to have like 100 positions because I don't have enough time to look after those. Somewhere in between 25, well, let's say 20 and 30 positions is sort of like my sweet spot. And as of right now, I'm getting more concentrated because as we start to see pretty decent corrections, I just find more sense in concentrating some of my lower conviction plays into my higher conviction plays.

41:36And so that's sort of the way I see it. I have no idea what Peter Lynch was thinking to have over a thousand positions. I don't even know if I know a thousand companies. I really can't comment on that. Somebody had mentioned to me though that he did own like one share of a company in order to get their annual report sent out to So he might spend like a dollar or something buying one share to get the reports. So I don't really know what he was thinking. I would say that that's probably closer to the truth, buying one share in order to get the annual reports because a thousand companies, I don't even know if I know a thousand companies.

42:05It's pretty remarkable you can achieve a 29 % return holding that many stocks. You'd think he'd be more concentrated. So that's pretty interesting. How do you think about entering positions? You seem to be someone that really takes disadvantaged opportunities once they're presented. So does that lead to you scaling out of positions that are maybe closer to what you'd call intrinsic value and entering positions that seem to be good opportunities? I'm never afraid to enter a position. If I look at the company, there's always a chance I'm going to be wrong. And that's why I diversify and I split up the risk.

42:40So there's always a chance I'm going to be wrong. And I sort that sort of systematic risk up by diversifying. And then when I buy into a company, I'm usually looking for some sort of barrier to entry, some sort of mode, some sort of competitive edge that will give me some sort of conviction that the revenue is going to be consistent for argument's sake moving forward. Or there's some degree that will give me confidence that if I value a business on a specific multiple, it will be a fair multiple. So I'll buy into a specific company and I'll start a position. And if it goes down like 20 or 30%, I know the company, I know what it paid for, I was happy to pay for it.

43:11I'll increase that position. I have a problem increasing that position. If it continues to go down, I'll get heavier and heavier and heavier. And so over time, what I realized is if I'm happy to pay a specific price and I start a position and it gets cheaper, one of my edges has been if I really understand the business, there's usually a pretty quick mean reversion out the other side. When you get deep discounts on specific companies, like for argument's sake, I started to buy in Discovery at$31. It went down all the way to$21.50. And I bought a lot more at around$26, $24,$24.50 and around that region.

43:45My average cost goes from$31 down to$27, and then the share price bounce back up to$30. I have an opportunity then to lighten the load because I got a little bit too heavy, and I still have a position on a better cost basis. And so if I'm happy to pay a specific price and I get an opportunity to buy more, that's absolutely what I'm planning on doing. So it goes back to what Peter Lynch used to say. He doesn't diversify, he buys into 10 different stories. And if story two goes up 50 % and story seven doesn't, well, he'll take money out of story two and put it in story seven. He suggests that you should rotate capital as opposed to selling because if you sell, you're not really committed to the stock marketing.

44:22The question is, where are you going to buy back in? So he has this idea of rotation, rebalancing positions. And that's how I look at it. When one company has a pretty big bump and another company is down, the two of them have the same opportunity, but one of them is a hell of a lot cheaper, rotate a bit of capital. And you'd be surprised how much that adds to your annual performance and reduces your risk. Positions correct all the time. And certainly after you get a big pop, for argument's sake, a 50 % jump in a short period of time, like what happened with Micron last year, I invested in Micron, which has continued to grind lower.

44:52And then inside six, eight weeks, it's a 50%. And if you can seize that opportunity to rotate capital into another company that's underperforming, that's essentially what I like to take advantage of. So when I'm investing into a position, the most important thing for me is not to go too heavy. And then the second most important thing is if it does get cheaper, buy more. And that's how I look at it, but don't overexpose myself. Very interesting. And I did have a chance to take a look at your portfolio. And I did notice that you used to own Facebook. And Facebook and also Google are companies I've considered adding positions to.

45:26And since you sold your Facebook position, I'm curious what your thoughts are on the company and also maybe some thoughts on Google as well. I bought Facebook back after earnings. Originally, I had a problem with Facebook in that I think the opportunity is great. I thought the valuation was fair, but I was concerned about antitrust challenges. I was concerned about corporate governance risks regarding insider trading and how that might impact, create a lack of focus for management. So I sold out of the stock, but then obviously earnings came around, the share price drops 26 % in one day. And so there's a number of things that I needed to consider.

46:01If you look at Facebook, first and foremost, you understand the opportunity that exists in Facebook. So Facebook, everybody throws around this idea that their specific company that they've invested in has network effects. Well, most of the time, there's very few actual companies and assets that actually have huge network effects. Facebook is one of them that actually does. And the idea of a network effect is each incremental user adds value to this sort of network. And so what I mean by that is if you look at the US population, it's 330 million. If you look at the Canadian population, it's 38 million.

46:30So you've got 368 million people. And if you look at the number of people from that region that are on Facebook or Facebook's products from those regions, it's 195 million people. So you've got over 50 % of the entire population, including old age pensioners, newborns, 52%, in and around 52 % of the entire population on the platform. If you need to contact somebody that you haven't seen in ages, you can't find the number in the yellow pages because it doesn't exist anymore. You can't look them up. You pop onto Facebook and there's more than likely you're going to find that person. So if you go back to 2018 during the Cambridge Analytica scandal, and there was this sort of like all over social media, people were saying there was campaigns to ban Facebook and get off Facebook.

47:10It never happened. No one ever left Facebook. In fact, the numbers continue to grow. And so that's a sign of just how strong the network effects are on Facebook because it's so convenient. If you want to keep in touch with family members across the world or whatever it may be, you know they're on Facebook. And so when I look at that for Facebook, it's not something that I ever think is going to be recreated. There's 2.93 billion daily active users on the site. And it's not something that I think is ever going to be recreated. And if you look at, for argument's sake, recently, people are talking about a concern over users actually leaving the platform.

47:40Well, if you look at the revenue breakdown, the 195 million people from the US and Canada, the ARPU on those users is$60 per user per year. And if you look at rest of the world, it's$3.60. So the users that they're losing is in the rest of the world. So for every 20 million people that they lose in the rest of the world is the equivalent of 1 million in the US. So I'm not really concerned about them losing users. And the network effect is really, really, really strong. It still remains very strong. So the business as a whole is a solid business. And then it comes down to problems with antitrust.

48:13They've been scrutinized significantly about antitrust issues, monopoly and whatnot. On the latest earnings, they came out and they said, Apple have impacted our business, going to cost us$10 billion this year. And at the same time, TikTok are stealing all of our users. How on earth, first and foremost, can the FTC come out and say, that's a monopoly when you see a billion users in four years on TikTok and Apple have impacted the business by 10 billion? Very, very, very difficult to accuse them of that. But secondly, antitrust laws only apply to businesses that are over$600 billion in market cap.

48:46And after the drop, they drop below$600 billion in market cap. So they can make acquisitions now and not be scrutinized by it. And I find that quite appealing as well. So the FTC issue at these prices, it's not really that worrisome. A lot of people are worried about the metaverse and all that type of stuff. It's a$10 billion investment into reality labs, plus their business is going to be impacted by$10 billion in free cash flow because of iOS. So their free cash flow is going to go from$39 billion down to$26 billion, which is a pretty big drop. But at the same time, the valuation has dropped pretty significantly.

49:18So I get optionality on the metaverse plus a 4.7 % free cash flow yield. Little to no scrutiny from the FTC, as long as the market cap's below$600 billion, they could go out and buy Roblox or something like that, maybe Take-Two, something like that, where they can get younger engagement on their platform, have some sort of metaverse today while they build out some sort of monopoly into the end of the decade. And so I see it as a very compelling opportunity. It's interesting how Facebook stock has seemed to act a bit differently than some of these other big tech names. Facebook, you mentioned the Cambridge Analytica scandal, the stock went from roughly$210, huge drop on earnings down to roughly$125.

49:58Then COVID, it went back up to the 220 range down to$150 or so. And then now just recently, stock went up to$380 in the fall of 2021. And now we're just north of$200. So many times, people have scrutinized Facebook while the business has been a compounding machine in terms of revenue and free cash flows and things like that. But the stock has been pretty choppy. But in general, it's been up and to the right with now looking to be potentially another one of those opportunities. Robert Leonard Yeah. I mean, last year, they bought back$44 billion worth of stock. So you think about like, they've got no debt, they're producing all this free cash flow.

50:37They're already reinvesting tens of billions of dollars in R &D and capital expenditure, and they still have 26 billion left over. They're not going to issue dividends, they're just going to keep buying back their stock. They've got$58 billion on their balance sheet. It's a really unique situation where it's got so much hate, really strong network effects that don't seem to be waning. And I just see it as a very compelling opportunity. And so Back to your point regarding the differences between them and Google. I don't own Google, to be honest. I'll tell you why I think it is. If I go back to 2012, Peter Thiel done an interview with the CEO of Google at the time.

51:10And he pretty much said, you guys have a monopoly on search. And you guys are lazy. And you guys are not innovating. And you guys are going to turn into a bureaucratic sort of company that's slow growth. And it's going to start to slow down. When I listened to that, I was like, you know, I think it was maybe shades of what happened to Nokia in the late 1990s, the most innovative company in the world. Bureaucracy takes over, and then they just crash and burn. I was thinking to myself, and I think it's that sort of memory kind of pushes me away from it. But if you look at the company today, it's like they've got a monopoly on search, a duopoly on advertising with Facebook.

51:42You also have Android. And so, yeah, I think it's an interesting one. Robert Leonard Yeah. I mentioned Google to Bill Nygren. He's heavily invested in that one in his Oakmark fund, and he believes that YouTube still has a lot of runway to grow. And they bought YouTube back in the day for a billion dollars and now seems to have a ton of potential, just like many of these other platforms like Google to Search and Facebook, what they have with the Facebook social media platform and Instagram. Facebook and Google both seem like very similar picks to me in that they have these huge platforms with these massive network effects that they have just been able to monetize so, so well.

52:21You know what's funny? So I got a new machine and I've got Windows running on it and they keep trying to get me to move over to a Microsoft Edge and I just can't do it because it's just so convenient and easy to search on Google. And so that's a testament to their network effects. Yeah. I mean, there's not really too many companies that have those type of network effects. And YouTube as well, in the latest quarter, I think it was about$8.6 billion in revenue in a quarter. So they bought it for a billion, pretty successful investment. Yeah. There's another sort of, I heard Terry Smith talk about Google.

52:53He's invested in the company now, but he had a hard time investing for years. And one thing he was pointing to is like, they've made 235 acquisitions and none of them, none of them actually were successful. And so he's come to the theory that they were just buying the competition and putting it on a shelf and getting rid of the competition that way while they were early. I guess if you come to that conclusion as well. You've got all this cash, you've got a perfect monopoly on the market, and it's trading actually at a very reasonable price. It's not expensive at all. Certainly, when you're looking at a relative to some of its peers, it's trading at a very reasonable price.

53:24And every single quarter, they just continue to perform very well. I think both of them are interesting. I personally chose Facebook. I love getting involved with the hysteria that goes around it. And I think it's quite low-hanging fruit at its current valuation, but Google, I could put it in that category as well, for sure. Yeah. Two very interesting picks that have both been on my mind quite a bit recently. So Robert, before I let you go, where can the audience go to connect with you and learn more about your YouTube channel? I guess you guys can check out my YouTube channel. The Popular Investor, I post more sporadically on YouTube, Twitter.

54:02I speak a little bit about Twitter, but it's more speaking my mind. Sometimes I'm wrong. Sometimes I frustrate people, but it is what it is. And you guys can check out my portfolio on eToro. So I've got an open portfolio. You can see my stats and the growth rate in my portfolio. My username on eToro is Robert Merck. And you'll see all the different positions that I'm holding and the ones that I talk about on YouTube as well. Awesome. Robert, thank you so much for coming onto the podcast. Thanks for having me. All right, everybody. I hope you enjoyed today's episode. Please go ahead and follow us on your favorite podcast app so you can get these episodes delivered automatically.

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