Market Insights: The podcast discusses the significant rise of the S&P 500, up 35% from April lows, prompting questions about whether it's time to take profits or hold for potential future gains.
Investment Strategies: Key topics include when to take profits after a stock surge, position sizing, and the balance between letting winners run versus trimming them.
Portfolio Management: The hosts debate the merits of having strict rules like the "5% rule" for individual stock holdings versus allowing stocks to run and using stop-loss strategies to manage risk.
Inheritance Planning: The discussion highlights the importance of planning for inheritances, suggesting a balanced approach to using such funds for savings, investments, and enjoyment.
Middle-Age Investment Approach: For middle-aged investors, the advice is to focus on long-term growth, maintaining a high equity allocation, and planning for future financial goals like travel or property purchases.
Career Advice for Financial Advisers: Young advisers are encouraged to seek opportunities where they can grow and potentially own a business, rather than staying in roles with limited future prospects.
Investment Platform Features: Public, the podcast sponsor, is highlighted for its multi-asset investment capabilities and integration of AI for enhanced portfolio insights.
Transcript
This is Ask the Compound, the show where you ask and we answer. I'm Ben Carlson. The S&P 500 is up 35% or so from Liberation Day lows in early April. A lot of stocks are up way more than that. Is it time to lock in some profits and wait for a pullback to reinvest? We answer this question and more straight from our viewers. Stick around, please. [Music] [Music] As always, we're here to answer your questions directly from our Compound viewers and listeners. Ask the Compound Show@gmail.com is our email. If you're in the live chat, fire away, please. We'll answer your questions directly on the spot. The >> chat's already blown up today. >> All right. Yeah. Brilliant people. All right. On today's show, we discuss questions about when to take profits after a big rise in stocks, how to size your positions, when to let winners run, and when to trim them. Um what to do with an inheritance. That's going to be a question a lot of people are asking in the years ahead. How to invest in middle age, that's me, and how to think about succession planning as a young financial adviser. Today's show is sponsored by Public. Public is the investing platform for those who take it seriously. You can build multiasset portfolios with stocks, bonds, options, crypto, and more. You can also access industry leading yields like 3.8% API. APY you can earn on your cash with no fees or minimums. But what's up what sets public apart? AI isn't just a feature. It's woven into the entire experience from portfolio insights to earning call recaps. Public gives you smarter contacts at every touch point. Plus, earn an uncapped 1% match when you transfer your portfolio. That includes IRA transfers, rollovers, even contributions. Fund your account in 5 minutes or less. Visit public.comc to learn more. That's public.comc. Paid for by public investing. Full disclosures in the podcast description. Click that link. All right. Lots of stuff to get to today. Let's do it. >> All right. Let's dive in. Up first today, we got one from Davis. As of today, the S&P has climbed roughly 38% since the April lows. At what point should investors consider locking in profits given that a market correction or pullback is likely at some stage, whether in six months or a few years down the line? Thanks for the great content. And then do you want to go ahead and knock out? >> Yeah, we got another one that was just like this. So, we figured we'd have them both. >> And then, uh, part B is from Brian. I've got a few stocks that have made big moves since April, and I'm wondering if you have a rule of thumb for selling after sharp short-term gains. Most of my portfolio is in index funds, but I like to pick up a few individual stocks I have high conviction in. I generally hold them longterm, but for more volatile names, I tend to trade more actively and roll the profits into index fund positions. I realize there are tax implications, but I also know I'm never disappointed taking a double- digit gain over a month or two. >> All right, >> good questions. Let's bring in everyone's favorite stock guy at the compound. >> Hey Josh Brown. >> That's my role here. >> Can I call you a stock guy? Isn't that fair? >> Yeah, dude. I love the stock. I fell in love with the stock market at uh 19. So yeah, I own it. >> Okay. I didn't know what the stock market was at age 19. Uh so this these questions these two similar questions one is about kind of index level I think and one is more about individual stocks. I think this is one of the reasons that buy and hold is such an easy strategy and name only, right? It's so difficult to stick with because of questions like this. So, uh give us a chart on guys. So, this just shows the the S&P Russell 2000 and I also threw in Nvidia here and uh the Q's. So, since from the bottoms in April 8th, uh small caps are going nuts. Q's are up almost 45%. S&P's up 35%. I have Nvidia up almost 90%. I put that one in there just to give myself a not to brag chart off please. Uh remember those backtoback down 5% days? I know you've been in Nvidia forever, but I I finally pulled the trigger and bought it on those. I'm like, if this stock is down 40% and we're gonna have an AI bubble eventually, I I got to buy it here. So, I'm probably up 80 85% on this. So, I'm like these people. It's like, okay, what do you do? Do you lock in profits now or and and count yourself lucky? You know, no one ever went broke taking profits or do you continue to hold? Like, obviously the market timing piece is is very hard, but I think it's a different situation with individual stocks. What do you think when you have these big gains in short periods of time? >> What's so crazy is like these generalized questions make absolutely no mention of what these holdings are and why they were bought in the first place. The both of these people by by the way, shout out to everyone that sends us questions. We really appreciate it. And the the goal of answering them is not to dissect anyone personally, but neither one of these people knows who they are or what they're doing here. So, put up the second one. Think I want you to think about this. Most of my portfolio is in index funds. Okay, good start. But I like to pick up a few individual stocks I have high conviction in, but then I tend to trade them more actively when they go up. Well, do you know what the term high conviction means or not? You have high conviction unless it works. Unless it immediately rewards you and then maybe you don't have high con. I don't understand. >> Maybe it's a it is funny because I mean how many people actually have like price targets or thresholds or I feel like with individual stocks for a lot of people it is the wild west where they they don't really go into it with a strategy. It's just >> I don't know this thing goes up. Well, I I kind of relate on that note of not knowing what they're doing. I kind of relate to this question though because I've bought things before. I'm like, I think this is definitely going to go up over the next couple years and then it goes up 40% over a month or two. And yeah, you're like, well, man, should I just go ahead and sell it and make 40%. Or do I really want to hold on to it long term? You know, that's I find myself there. >> Not to brag, a week ago, I interviewed the greatest investor of all time and uh here's what he said. Uh he tells a great story about buying McDonald's in the 1980s. McDonald's had started in the 50s. Okay. And so he's buying it in the 1980s and they're telling him he missed it and then it went up 10fold, right? Or maybe he's buying the late 70s and then went up 10fold. Um so like when you say high conviction, what does that mean? you have high conviction that the stock is undervalued by 10 points and then it goes up 10 points or you have high conviction and the company is an investment. And it doesn't always have to be the same answer for both. But like if if you own shares in a company and you have high conviction that the company is going to be a big success and the stock price is going to reward you, then who cares that it just went up a lot >> unless like what it could do. to turn from an investment to a trade, it would have to be an enormous gain. I think if like because you're right, if >> like so obscene. Yeah. Yeah. >> Yeah. If you're trading if you're changing it from an investment to a trade that quickly, it was never an investment to begin with. >> That's it. That's it. That's what I think. >> What if you thought it was going to go up 40 or 50% over two years and it goes up that in a month? I guess that's kind of >> why did it just go Okay, so why did it just go up 40 or 50%. Maybe something at the company changed where all of a sudden everybody agreed and maybe the opportunity was bigger than you originally thought and now you have to rethink it. But the way this question is phrased, it's not even really about the company. It's about the gain and the the the speed of the gain. That's what they're asking. And so my my answer, which is profoundly unhelpful, is I need to know more. >> And the first question about the should I should I sell out now because we're due for a correction, it's like that's that that we know that one's the hardest one is the market timing piece because guess what we already had the correction the professionals we had the correction no >> see yeah professionals don't uh invest in individual invest in individual companies that way that's that's like more of a macro question or like uh I'm 80% stocks and I'm normally 70 cuz the market just went up a lot and I think we're due for a correction all right then trim back to 70%. That that's a good question. But like on an individual stock basis, I want to sell >> uh Crowd Strike >> because I think we're due for a market pullback. What? Make a What are you? Are you a a macro market timer or are you an investor in a company? Like you All right. So, my my real answer to this is sometimes when I buy a stock, it's cuz I want to be a long-term investor and it running up 20 or 30% a month. Maybe that's only validating why I wanted to invest in the first place and not making me want to sell it. But sometimes I will literally say, I'm buying this for a trade. Um, and so here's an example. Uh, here's an example. Uber. I have prints in this stock in the 20s purchases. It'sund and it's uh 94 whatever. >> Not bad. >> It's I I've been down 50% in the stock and I added to it. It's an investment. The fact that it just it's up 55% year to date. I'm not like, well, should I sell it? No. Because my big my big overarching idea that transportation moving people and or food and or freight is a trillion dollar TAM and the market cap is 220 billion. No, I don't think it's a sell. I'm glad it's up 55% this year, but like I'm not walking around like should I get out because it hasn't played out yet. Philip 66, I bought it as a trade. I like the technical setup. Um, the other two publicly traded refiners already broke out. Valero has made a huge move. Marathon has made a huge move. PSX is the one that hasn't yet and Elliot um or there's big uh there's big hedge fund buying. Activist fund managers buying it. So, it's a trade. I don't want to be in Phillips 66 for 10 years, but I think there's an opportunity as the stock breaks out. Hasn't happened yet. So, I'm still in the trade. I have a predefined stop. If it technically breaks down, I have to sell because I bought it on the technicals. So, two different things. I'm the same person. So, knowing what you're doing with a particular investment going into it will define the answer to that question. >> I think we go to the next question, Don, because I think the next question is someone who actually does have some rules and they're they're questioning them. So, this is a good one, too. >> Oh, yeah. One one thing I was just going to throw in there though, something you guys have helped me with talking about over the last year a lot is not to be afraid of 52- week highs. I think a lot of young people in retail traders, they see that and they think like, "Oh, that means it's due to reverse now because it hit >> what goes up must come down, >> right?" But yeah, you guys have basically shown data that it's bullish when something hits a new 52- week high generally, right? That seems to be. Yeah. Unless you think the market is always wrong, which on this show that's we're not we're not contrarians on this show, per se. We we don't think every other investor is a [ __ ] and we have to fade everything that makes a new high, right? That's not how we operate. So, >> all right. So, up next, question two. Uh given the recent runup, I find I'm finding several of my five individual stock holdings have grown past the 5% concentration level. In each case, I've been selling enough shares to get back to just below 5%. But I get a tinge of regret that I'm leaving additional profit on the table. Does the 5% rule make sense or does it really not matter when the individual stocks aren't part of my core investments? >> Okay, so >> the 5% What is the 5%? >> I think I think for them it's a 5% holding and if it gets above 5% of their portfolio, then they trim. >> Sorry, but that's not like a rule in the I think that's just that's just their rule. They're they seem to be calling it the 5% rule. So part of this could be your Peter Lynch quote that you talked to him and he said like selling your winners to buy your losers is like what? Cutting your flowers to water your weeds. >> But I like the idea of having some rebalancing rules. Like the people in the the first two questions didn't have any rules in place. This person >> individual stocks. >> I don't like it. >> So you So you don't like it at all? >> I like it for uh asset class and allocation. I think it's really important. But you think for these stocks you're you're cutting off your >> I would have sold Apple I would have sold Apple 10 years ago. Like I hate it. It just >> if you're if you're invested in something and it's going well, why have some arbitrary cap on how much money you can make? It defeats the purpose. We should be we should be uncapped in our um So here's what I like better, Ben. Honestly, to answer that question, throw the 5% rule out. Use stop lo use stop losses. Let it ride and raise your stop-loss. You may never get hit. You may you may have a rule where I'm going to trail this thing with a stop-loss and maybe I'm going to use a 200 day moving average or maybe I'm going to use like my initial purchase price like the none of them are like perfect. Obviously, none of these things are if they were all if they were foolproof, everybody would do it. But like why proactively sell something that's in the Charlie Munger said never interrupt the act uh never interrupt something while it's compounding like if if if you want to risk manage if you want to risk manage um because something that should have been 5% is now 10%. Because you were really right okay trail it with a stop loss but by God let it keep >> let me come to the defense of this strategy. I think some people have a threshold in their mind of I don't like having one position be that concentrated in my portfolio, so I'm going to trim it. But >> guess you're allergic to getting rich. >> Someone in the Someone in the chat said that's Kevin Someone in the chat said that's Kevin Oeri's rule. So maybe that's where this came from. >> Oh, you let me just come to the defense here. Some people have an upper threshold where I don't want an individual position to be that much because I'm losing sleep over it. It's You're right. That's how you That's how you win essentially. But I can see having bands where hey if this stock gets to 10% I'm going to trim it back to fi to seven or eight right if it gets down to five then I'm going to buy it back up to seven or eight or whatever whatever the number is. I think having some bands on it to give yourself some sort of rules because the stop-loss situation in your Uber example when you're down 50% what if you got stopped out of it then what that that's so I think having some of these rules is not the worst thing in the world. I don't. So I wouldn't have a stop loss 50% below where I own a stock because it would stop loss. I think I think if you have some of these band I think maybe what they need to do is just increase the size of their bands so that when they rebalance it's a it's a wider range so they let things run a little cuz that's the thing with individual stocks the vol they're trying to play the volatility. So if it does crash 50% then they buy more to bring it back up. >> Okay. I don't I don't hate it. It's just it's bizarre because if it's not cuz the guy is saying it's not part of the core portfol or the gal. It's not part of the core portfolio. So stop treating it like it is. Treat it like it's an individual investment made. >> That's true. If it is this side pocket thing, maybe you shouldn't have as many rules on it. >> There shouldn't be. The rule should be when I no longer think it's a good investment I'm selling, not what percent of my net worth it is. Do I like that for asset allocation? I like that for somebody that's like, "Okay, US stocks are supposed to be 50% of my portfolio and for 10 years international stocks did nothing and the S&P doubled and and now I have too much exposure to US stocks." Absolutely. Rebalance back, add to the areas of the market that haven't been doing as well. Ultimately, you'll be rewarded. Look at this year. international is crushing um the the US large cap indices. So it I I like that when I'm buying a stock and it's a long-term investment and I have an idea about why it's going to 2x, 3x, 4x. By the way, I won't make an investment if I don't think it it could at least 2x. I have no interest. That's a trade. So this is so like some of this stuff Ben is like a nomenclature almost like a semantic thing where it's like if I'm buying a stock for a trade I obviously don't want to own have it be more than 5% of my I don't want to take swings like that on a regular. >> So part of it is you know the part in a few good men when Tom Cruz gives the guy the rule book on the stand and he says show me where it tells you to get to the messaul and he says it's not in the rule book. some of the stuff with individual stocks maybe it's it's more of a rule of thumb >> and it's not you can't make it so systematized because there's a ton of really good books on like how and when to buy stocks. Has there ever been a good book written about how to sell stocks ever? >> Yeah. Um >> I don't think there has. >> No, I I agree with that. And then the the other thing that I would just bring out here is you also have to know what phase you're in. So, I'm assuming most of the viewers of the show are in the wealth accumulation phase. It practically demands that you concentrate if you're doing individual stocks. Like, what's the point of buying a 100 shares of a stock and then it doubles and it doesn't move the needle in your net worth? And what do what are we doing? >> I guess if you're Yeah. If you're diversifying individual stocks outside of your core holdings, like it's easier to do that in ETF than it is yourself. >> Yeah. Yeah, I guess make it count. Like if you're going to if your core portfolio like 90% of your net worth away from your house is like broad diversified exposure. First of all, great decision. And then you're going to go to the trouble of setting up this like sort of like side pocket account with a few high conviction concentrated uh high conviction stocks. They should be concentrated and you should you should win big when you're right and focus on mitigating loss when you're wrong. But like being in the middle, it's like what almost what's the point? Like take a take a swing. Be somebody. >> That's why Duncan has 150% of his portfolio in Ooli. He's got it on leverage. >> Like be somebody though. Do it. Look, I know the I know the advice I'm supposed to give, but I'm not talking to somebody that's 70 and can't replace this money with more income. The the the demographics of this show, most of the people by definition, like watching this on YouTube, are in the accumulation phase. I'm saying go for it. >> Yeah. And I was >> have some risk management, but like, oh, it's over 5%, I have to sell it. >> Why? What are you afraid of? probably more I'm probably more like this person that I have a lot of rules and even in my brokerage account I don't have rules like this because I agree it's this is this is where you should be able willing to take a take a swing that's that's the anyway all right next >> John Carlo in the chat wants to know >> it's risk it's stocks >> right >> yeah John Carlo wants to know why the markets dropped during this show >> sorry yeah Josh stopped trading all right let's do another question >> okay up next we got a question from Molly my husband's Scott is a woman. >> See, I told you we would give more females representation on this show. >> Yeah. Look at this. Yeah. >> Well, I like that Scott game the system here. He had his wife write the question. >> There you go. >> My husband Scott is a loyal listener and has encouraged me to reach out to you with a financial question. My grandmother is unwell and recently told all her grandchildren will each receive a significant inheritance of 150 to 200,000. >> Way to bring the show down. >> Yeah, I know. Yeah. Yeah. Sorry. Sorry to hear. Uh Scott and I live a reasonable lifestyle, max out our 401ks, have the cars paid off, and have a good emergency fund. How should we use this money? My thought was to divide it into thirds. College fund for our son, savings, and a house project or vacation, vacation fund. What are your thoughts on this plan? Are there better uses I should consider? >> First of all, Molly, kudos to your grandmother for telling you this in advance. Most people don't talk about this stuff, so the fact that you can kind of plan on it is good. This is going to be something a ton of people are going to have to work through in the years ahead. We've already gotten a lot of questions on inheritances over the years. Uh like the great wealth transfer, Josh, I don't know if you've seen the numbers. It's 70 trillion or 80 trillion or 100 trillion, whatever the number, depending on who you ask. It's a lot. It's a lot of money and people are going to need advice on this. Um so obviously from a financial standpoint, this is a good problem to have. For some people, the money is going to have an emotional component to it. So I think it's going to be hard to separate that. For some people, if your grandparents, like they're old enough, you probably figure they're going to get there. But for other people, you never know. Um, it sounds to me like Molly and her husband don't have any leaks in the boat to patch up really. Like it's not doesn't sound like they have credit card debt or anything crazy. Um, I don't I don't I like the idea of having more of like an asset allocation when you get a bonus like this. Um, do you have any strategies when you get a a bonus set of money outside of your income for putting it to work? Because I think the way what she outlined seems relatively reasonable to me. >> Can I see Molly's question one more time on screen? I just want to parse something. My husband Scott and is it Ky? Okay. So, it's it's it's Molly's grandmother told all of her grandchildren. So, she is one of uh it sounds like there are at least three siblings, right? You wouldn't say all of her grandchildren. You say both if there were two, >> right? >> Okay. So, the grandmother is going to drop 200 grand on a whole set of siblings, uh her grandchildren who are adults. Okay, got it. So, in Molly and Scott's case, they're sort of good. >> This is not like Right. Okay. So, that's your point. Like patching holes. There's no emergency use of this money, right? Right now, >> there are like smart things to do obviously paying down debt. The kids are going to have to go to college. Yeah. I guess the the most obvious thing is the 529. I don't know how old the kids are, but that's an that's an obvious thing. The grandmother, frankly, should have done it before she passed. Yes, the grandmother you would think would like that as a as a strategy. I >> I think grandmothers should have personally done it anyway years ago, but fine. That's the That's the That's the And I think is that $50,000 you could do in one year as a lump sum. >> Yeah. I don't know. >> Is that the number? >> That's a Bill Sweet question. I don't know exactly what the either is. >> Yeah. No idea. >> I a financial advisor, >> but I like that she included vacations. She said she said we're also going to include in here vacations and house remodels or whatever. But I I think you should take some of it and actually enjoy it, right? That's the whole point of the money. It's like this bonus money that you weren't expecting. I would take I would take some of it and take your kids to Hawaii or something, right? Have do something fun with it. >> Yeah. Or [ __ ] all that 529 [ __ ] Establish a digital assets trust or DAT if you will. Go public. Raise an additional $8 billion because everyone's out of their mind right now. and really maximize the grandmother's uh this inheritance that your grandmother left you. It's another >> I'm just spitballing here. It's another way you could go. >> Just do the air drop to the kids. That's all they need. >> Do do a literal grandma spack. >> Do a granny shot with that money. Granny shots for every all of the the great grandchildren would be the way I would. >> Here's the thing though. Financial adviserss in the years ahead are going to have tons of questions like this about inheritances. There's going to be so much money because as we've discussed many times, a lot of the baby boomers are not spending down their money. They can't force themselves to do it. >> And there's and there you're not going to change them at this. I talk to my wife about this all the time about my parents and her parents. Do you think we're going to change them as people in their 70s and 80s? Of course not. >> It's s it's such a it's such a huge point that you make. There's actually no possible way that they're going to spend the money. No, >> it's it's it's like it's like $20 trillion when they're in their 70s and when they're when they're 80s it's like $40 trillion. Like it's uh so we see like um we see attempts at this. We see patriarchs and matriarchs of families do like these gigantic skies because like in the winter their kids and their kids' kids will come for a week and they'll ski and they'll right or like like a like a house uh like a vacation home in Mexico or something. In your 70s you could do that. In your 80s you just you're not traveling anymore, >> right? >> Yeah. And it's funny one of the the guy >> short of vacation properties. How do you spend that much money? You almost can't. >> The guy three houses down from me at our lake house said, "The reason we bought this because our children are now in their 20s and this is an excuse for them to come visit us somewhere. >> That's a great spend of your That's a great use of your resources, though. I think >> as someone who's older than you, Ben, and and in some ways uh slightly slightly more experienced, uh how am I years older than me?" That's three years older than me. Get out of here. I was going to tell you I want to give you a sneak preview of what I see and maybe you see the same thing actually. >> Uh I have some friends who are a little bit older in their 50s because their youngest kid was friends with my oldest kid, right? So like you probably have some of that and you get like a little bit of a glimpse like a little bit. It's like a little bit of a cheat code to see what their priorities are. So, my friends who are in their early 50s whose kids are now either in college or graduating and starting to move out, it's all about travel. That's all these people talk about. They eat, sleep, and breathe. Where's our next trip? >> I think the madness of sitting at home, >> like just looking at the two of like the two of them looking at each other. >> Yeah. So, it's it's all about travel. It's it's uh hiking trips and cruises and uh uh Europe through the European tour and it's that's it. That's like the whole ball of wax in addition to obviously paying all the bills for their their young adult children's who are away. Like that's what they're going to do with their money. Then in the 60s something interesting happens. It's it becomes more about a second piece of property because the winters are a little bit less tolerable, right? Um >> and the travel is probably less tolerable, too. You don't have as much energy. >> You sort of, right, you sort of slow down the travel. You don't It doesn't cease completely, but then it becomes more about a second home. I got to get out of here for the winter. >> Going away to the Caribbean for six nights doesn't do it. I need to be away for like 3 months. So, when you're 60s, that's the priority. This is a wellto-do 60some is Florida, Arizona, whatever. Okay, the 70s now your kids are having kids and now the priority is proximity to the grandkids, >> right? >> Being in the grandkid's life. So then it becomes about um paying for family vacations, okay? or that second home like let's turn instead of just having a regular second home, let's build like a vacation palace in the Hamptons or in the mountains upstate like a lake house. Let's build something seven bedrooms, something insane where my kids will bring their kids for a week at a time. So that's what I'm seeing in people in their 70s. Then your 80s, that [ __ ] just stops. I wish it weren't so and I don't like saying it out loud and I'm not trying to upset anyone but like the way it ends is you're always ill and if you are not your spouse is you're not pouring your >> In my 80s I'm going to find a bar stool at the local bar and I'll be there every day. How's that? >> Something tells me you'll still be in the gym like Schwarzenegger. But like so so the the cadence of these things and the time and place and the priorities. So, I'm seeing like it starts I don't forgot what the original question was, but like uh >> Yeah. No, that that your what you just outlined there is actually a really good segue to the next question because it talks about like the stages of life. So, Duncan, do the next question. It's actually a good segue here. >> All right. Up next, we got one from Adam. I'm a middle-aged guy like Ben. I'm 45. There's plenty of advice for young people. Just keep buying and old people 6040 and diversify. But what about us middle-aged people? On the one hand, my net worth is doing great. $2.6 $6 million including our house. >> All right. Good. Not to brag. >> Yeah. Not to brag. >> Not to brag. I like it. >> On the other hand, my income is at an all time is at all-time highs along with our savings rate. Should I be rooting for a lost 5 to seven years in the market to buy lower before a bull market that leads me into retirement at 60? Should I be protecting my portfolio? I'm basically 100% stocks besides my emergency fund. How should I invest in my 40s? >> Okay. I mean, I I should be heard at this question, but I'm not. I'm 44. See, how old are you? 47 48 >> 48. >> See, yeah, you're not that old much older than me. >> I'm a very youthful 48, I'm told. >> This is This is a very good question, though, because he's right. There isn't a lot of Because you're kind of straddling two lines here, right? You have enough money where if if there is a severe bare market, it's going to be painful because the the dollar declines hurt more than the percentage declines when you have actually have a portfolio, right? when you see the dollar declines in your portfolio, it could be a 15% portfolio that hurts more than a 50% crash when you didn't have as much money, right? Because you see that dollar those dollars evaporate. Um, but I actually think being middle-aged is kind of a little bit of the best case scenario because you have a little you because he said your income is probably at all-time highs. So, if the market does go nowhere for five to seven years in his perfect scenario and you're you're buying at your at your all-time high savings rate or whatever, that's actually a good thing for you even though you're seeing your portfolio evaporate. The thing you have to figure out is are you okay not having your portfolio protected at all? Like, do you need to hold more cash or bonds or some other type of strategy to see you through so you don't freak out if there is an extended period of of downturns? >> How do you think about investing in middle age? Has your has your mindset changed at all about this? >> No, I'm in Dude, you know me. I I'm 100% Mether >> I'm 100% stocks in my 401k. Um I don't root for downturns. I just accept that they're inevitable, >> right? >> And look, uh my income will suffer is a lot of my income is derived from the registered investment advisory firm that we own. And uh you know, of course, when portfolio values fall, we will make less money, but we will attract more clients and you know, there's a lot of people that they don't know how bad their portfolio is until until that happens, >> right? >> So, we'll come out of that next downturn bigger and better, you know? So, like that's fine with me. >> I don't think people realize how much turnover there is among financial advisor clients in a bare market. It happens. That's like a for our business. It's crazy. >> We're going to we're going to eat on that next one for sure. Um cuz it's been so long since we've had one. Like a legit one. Um >> but so like I don't root for them, but I also don't like uh live in fear of them. And I've been through, you know, I've been through a hundred of them. >> It's part of the game now, right? >> Yeah. I'm I'm the same way. I'm I'm all in socks and I think like gosh, should I take some money off the table here? But >> I'm not going to Why am I going to stop working? You know, you do it. >> Exactly. That's the That's the thing. what am I going to do with it? And I'm I'm fine taking the risk, too. But actually, he said like, "How should I invest my 40s?" I think your whole thing, the cyclical part you went in the last question, like, hey, in your 50s, you're going to do this. In your 60s, you're like, start planning for some of those goals. If if you have, this guy is worth almost three million bucks in his mid-40s. Kudos to him. >> I honestly think AI is going to cure most forms of cancer. I have to be honest with you, you should be investing as though you have 50 years left because you probably do. If you're in the upper end of the wealth and or income distribution in the United States of America, there is a very high likelihood, barring a nuclear conflict with China, that you're going to live to your 90s. >> Oh, yeah. People >> stop talking about middle age. >> Stop stop walking around afraid of your own shadow. Stop worried about hedging. You have like respect respectfully, $2.7 million is a super accomplishment by your mid-40s. It's awesome. But like in the scheme of what you could be worth, if you if you just stop focusing so much on like the next 5 years or what do you say 5 to seven years, >> uh you have no money right now compared to what you will have. You have nothing. >> The thing is all those goals that you laid out, hey, if you want to have if you want to travel in your 50s to Europe and then in your 60s you want to buy the vacation home in your 70s close like you're going to need more money. And so that's why you want to let it grow and >> and unless you unless you have a goal that you want to use it for today besides like the kids, you know, college fund or whatever, like yeah, you have plenty of time to let it grow still. >> You have two, three, four decades to let this money compound. You have plenty of time still. >> Don't get off the right. >> I mean I I mean focus focus on still in your 40s like focus on extending your career. The worst thing that could happen is the worst thing that could happen is you retire yourself and then you have nothing to do and no income. Like it's not it's not ideal for most people. Most people do not thrive. Some people do. Some people spend their 20s and 30s dreaming of retirement and then they do it and they move to a low cost area and they make it and they make it work and they have a hobby that's so important to them that it almost feels like this is their life's pursuit. And I I applaud that. I that's not me. I can't relate to it. >> If we retired early, you and Michael and I would make Duncan still hop on and we do a podcast for each other. >> Be doing more YouTube. >> So, I can't relate to it. But if I had a a job that I hated and I used to, this part I can relate to. >> That would be my goal. Like, how do I turn this 2.6 into 3.6 and then find a place where I can make 3.6 last for uh 40 years? But I that's not I mean that I don't think that that should be most people's agenda. If you hate your job that much that you're dreaming of retirement at 45, maybe invest some money into a career change. >> Yeah. >> Or buying a business where you're in control and you don't hate what you're doing every day. So I look, it's not for me to tell people how to live because I do understand the mentality of like I'm just tired of it and I want to be done. I just >> Everyone's had one of those jobs before where it's soul sucking because you go to it every day. >> Yeah. My first job. So, actually, I don't want to do a whole tangent, but this is the best thing that ever happened to me. I hit my wife's uncle's car. So, my wife's aunt and uncle had like this big gigantic MercedesBenz boat parked in um parked in my wife's parents' driveway. I was seven 16 16 17 shouldn't say I was 16. I was 17. So I was legally allowed to drive and they were pulling they had pulled into the driveway and I didn't see how big their car was and I was pulling up to the house and I took out the quarter pan rear quarter panel the the the brake light. I just I I screwed the car up and I had like I didn't want to tell my parents. Um so I got a job. I went to the hardware store and I swear to God I'm sitting 100 feet away from the hardware store right now. Okay. But I went to the hardware store and they said you could be a cashier. And they put an apron on me. It was called Pergamant. And I uh stood at the cash register and watched the clock all day. I can't wait for this to be over. I went after school. My friends would come in and [ __ ] with me. They'd fill up a shopping cart filled with stuff right at closing and then leave it there. >> Get in the car and drive away. I had to spend an hour every aisle putting each item away. Great friends. >> But I did it for 3 months until I made enough money to give to give to my father-in-law who would give my future father-in-law. Then it was my wife's uh dad. And then he said, "Josh, that's it. I'll pay for the rest. No, you don't have to stand there at a cash register. Focus on your He's like, "You proved your point. you're you're a you're you're a kid with integrity. I appreciate it. I'll pay for the rest. Just go back, focus on school. But that job I that job like taught me so much about being in a like a thing where you're like, you can't wait for it to be over, >> right? >> And I I never had a job like that again. I almost like I refused to to do it. I've had other bad jobs, but like so if you're in that situation um where you can't wait for it to be over, maybe the best investment is thinking about a different career rather than like how quickly could I be retired on like what's the bare minimum amount of money I need to never have to work again. >> All right, let's do uh Josh's career advice for the next one. I saved this question just for you because I know that you talk about this one a lot. So, let's do one more. >> Sean Greish in the chat is very excited about retirement. He said, "I reserved a spot at Delboka Vista 25 years ago." >> I don't know what >> Seinfeld reference, right? >> That's a Seinfeld reference. >> Oh, is it? Okay. >> Yeah. Come on. That's where George's parents go to retire. >> Ah, >> and Jerry's Jerry's parents retire and they wouldn't let George's parents come. >> I was in Bokeh last week. I worked harder than I've worked in any week at all this year. Duncan Duncan will tell you I just spend half the I think I spend half the time on TV, on YouTube, on Zoom calls talking to adviserss and their clients. Like I I don't even know I was away. I could have been in closet somewhere. >> If you guys retired, we just do a nightly two-hour live stream or something. >> Yeah. Right. Exactly. >> Retirement live. >> Yeah. Yeah. There you go. Okay. Uh, last but not least, we got an anonymous one, as you'll see from the question. I'm a 25-year-old adviser at a small firm in the Midwest. I started working here right out of college and have learned a lot over the past three and a half years. Recently, one of the owners mentioned that he would likely never sell the business or might eventually pass it on to his sons who are 11. >> This is the best thing I've ever heard. This this was surprising as when I was hired, the plan seemed to be that he would retire at some point and possibly sell the firm to me or another current adviser. This shift has me questioning the long-term prospects of my role at the firm. I've been fortunate to build a solid client base without needing to cold call, which I appreciate since sales isn't my favorite part of a job, but the clients aren't considered my book of business as every client is technically owned by the firm. Part two, I earn a good living and the firm is generous with 401k contributions. However, since a recent adviser retired, my workload has increased and I find myself spending more time on administrative tasks and supporting other adviserss rather than working directly with clients, which is my favorite part of a job. >> Oh god, this is longer than war in peace. I appreciate it. >> Any advice on how you'd approach the situation? >> This is perfect because Josh has talked about this end. >> Josh has talked about this very scenario before. >> We even cut this one down. Um, his boss, uh, spoiler alert, his boss is Logan Roy. Um, this is a succession episode. Uh, >> that's just He's gonna pass that on to his 11-year-old sons. Uh, >> can you imagine thinking you were gonna get that book of business someday? Wait, >> dude. >> My daughter is 11 and I'm thinking about like, imagine me saying that and passing my my blog on to my daughter someday or something. I can't >> It's twin 11year-old boys in Iowa who show up at the office and tell this guy to go get them a glass of water. Yeah, get my Stanley Cup for me. Uh, so but you've talked about this a lot >> for me, mister. >> But you've talked about this a lot like that how this happens all the time where these adviserss say they're going to retire or they're going to hand down a book of business and they never do because guess what? Being an older adviser is easy when you have younger people doing all the hard work hard work for you. They don't need to retire. They never keep cashing the >> paycheck. Why would they leave? That's this is it. This is the thing. Why would they retire? What if they just stop working but don't retire? What are you going to do about it? You're going to keep you're going to keep showing up until you've had enough and you quit. And then they're going to find some other kid, 25year-old kid, and sell them the same promise. Yeah, I'm going to leave in 5 years. This will all be yours. They don't leave. They're like uh it's like a a stone just collecting moss. It just it just sits in the river. the river keeps running by. Those are the fees. The moss just accumulates and uh they they don't they don't have to do anything anymore because you're doing it cuz you think this is going to be your business. But there's two kids in in sixth grade laughing their asses off. You know what I picture? What's the um the Wes the the the Wes Anderson movie with Ben Stiller? >> Royal of Bombs. Yeah, Royal Town. >> Royal Sen Bombs. He's in like the Adidas tracksuit and his two sons are identically matching. >> No, like no, no disrespect, bro, but like >> But wait, so what do you what do you give this kid? Do you say get your get your experience and then get out after you've got experience or what? >> You should be interviewing right now. First of all, get first of all, get out of Iowa. Um, go to Indianapolis. Go to Chicago. Go some go someplace with a much bigger pool of potential companies to work for. You could always come back to Iowa and estab but you're 20 you're in your 20s I'm like I'm assuming if you are married and there are kids everyone's young everyone's uh mobile you got to you got to go somewhere bigger and be exposed to a wider world and find um a different work situation and um and and you have to focus on your career. Don't focus on this guy's business that he's telling you is never going to be yours. Do not do not spend your I I get it. It's stable income. You can find that elsewhere. Do not spend your 20s and 30s building something that you are already being told will never be yours. >> Especially once you had it in your mind that this was going to be your business. Now you're going to you're going to spite this guy for the rest of your days. There's never going to be a relationship. >> Stop sh in the chat. Josh, a crazy Midwest hater. Shaking my head. Are you deaf? Did you not hear me say go to Indianapolis or Chicago? Where are those places located? California. Okay, sorry. Continue. >> All right. See, >> you guys want to do this live? >> Yeah, I was surprised to to see that I was in the Midwest. >> Josh's wife went to Michigan. She's a fellow fly state person. >> I I love the Mid We just opened our second headquarters in the Midwest. It's like one of my favorite places in the whole world. Never a Midwest hater. >> Yeah, but you're right. This is never going to work out. He's going to hate this firm for the rest of his days there. He's I think you have to especially once you realize you know what you want to do. You can't stay there anymore. It's the same thing about having the job you hate. >> He's in a he's in a very shallow hole right now and he's asking, "Should I keep digging it deeper?" >> Right? Like that's you you have the whole you have your whole life ahead of you. >> You have a whole great big adventure ahead of you. Step one is recognizing that it's not what you're doing today. I know it's easier said than done because it's income. >> I wonder what is his boss expecting to happen telling him this. I just don't understand. >> Yeah, it doesn't exactly help morale. >> Well, he's but he's doing the right thing. What the guy should be doing is is saying, "I'm going to make you a partner, but you're never going to own the whole thing because >> I envision." Now, it's very possible the 11year-olds in 15 years have no interest in doing this. Kendall and Connor aren't going to want to take >> You want to find out? >> Yeah. You want to wait and find out? >> They'll just be stakeholders, you know. >> So, someday this could all be yours. No, I'm good. >> Yeah. >> All right. >> It's possible. >> This is an actionacked episode today. >> 45 minutes and 26 >> Wait, 2,665 people watching right now across Twitter and YouTube. >> Oh, that's super fly. >> We appreciate everyone in the live chat. As always, remember, ask the compoundow@gmail.com. If you have a question for us, leave us a comment on YouTube. Subscribe, rate, review. Uh, idontshop.com for all your Compound needs. I think we're still waiting on the new hats to come back in, right? I think we're still >> keep hammering this. Yes, we're going to get more hats, but they're not there yet. >> Bring them back. All right. All new Compound and Friends on Friday. Do you still have tickets available for the Jim Kramer Show? Are they all out? >> I don't know. >> I think I think we have a couple. I think we have like two. >> Yeah, as in like maybe two or three. Yeah. >> All right. Maybe I'll give them to my mom. >> All right. >> Oh my god. >> All right. Thanks everyone. We'll see you next time. >> Thanks everyone. [Music] [Music]
Is It Time to Take Some Profits?
Summary
Transcript
This is Ask the Compound, the show where you ask and we answer. I'm Ben Carlson. The S&P 500 is up 35% or so from Liberation Day lows in early April. A lot of stocks are up way more than that. Is it time to lock in some profits and wait for a pullback to reinvest? We answer this question and more straight from our viewers. Stick around, please. [Music] [Music] As always, we're here to answer your questions directly from our Compound viewers and listeners. Ask the Compound Show@gmail.com is our email. If you're in the live chat, fire away, please. We'll answer your questions directly on the spot. The >> chat's already blown up today. >> All right. Yeah. Brilliant people. All right. On today's show, we discuss questions about when to take profits after a big rise in stocks, how to size your positions, when to let winners run, and when to trim them. Um what to do with an inheritance. That's going to be a question a lot of people are asking in the years ahead. How to invest in middle age, that's me, and how to think about succession planning as a young financial adviser. Today's show is sponsored by Public. Public is the investing platform for those who take it seriously. You can build multiasset portfolios with stocks, bonds, options, crypto, and more. You can also access industry leading yields like 3.8% API. APY you can earn on your cash with no fees or minimums. But what's up what sets public apart? AI isn't just a feature. It's woven into the entire experience from portfolio insights to earning call recaps. Public gives you smarter contacts at every touch point. Plus, earn an uncapped 1% match when you transfer your portfolio. That includes IRA transfers, rollovers, even contributions. Fund your account in 5 minutes or less. Visit public.comc to learn more. That's public.comc. Paid for by public investing. Full disclosures in the podcast description. Click that link. All right. Lots of stuff to get to today. Let's do it. >> All right. Let's dive in. Up first today, we got one from Davis. As of today, the S&P has climbed roughly 38% since the April lows. At what point should investors consider locking in profits given that a market correction or pullback is likely at some stage, whether in six months or a few years down the line? Thanks for the great content. And then do you want to go ahead and knock out? >> Yeah, we got another one that was just like this. So, we figured we'd have them both. >> And then, uh, part B is from Brian. I've got a few stocks that have made big moves since April, and I'm wondering if you have a rule of thumb for selling after sharp short-term gains. Most of my portfolio is in index funds, but I like to pick up a few individual stocks I have high conviction in. I generally hold them longterm, but for more volatile names, I tend to trade more actively and roll the profits into index fund positions. I realize there are tax implications, but I also know I'm never disappointed taking a double- digit gain over a month or two. >> All right, >> good questions. Let's bring in everyone's favorite stock guy at the compound. >> Hey Josh Brown. >> That's my role here. >> Can I call you a stock guy? Isn't that fair? >> Yeah, dude. I love the stock. I fell in love with the stock market at uh 19. So yeah, I own it. >> Okay. I didn't know what the stock market was at age 19. Uh so this these questions these two similar questions one is about kind of index level I think and one is more about individual stocks. I think this is one of the reasons that buy and hold is such an easy strategy and name only, right? It's so difficult to stick with because of questions like this. So, uh give us a chart on guys. So, this just shows the the S&P Russell 2000 and I also threw in Nvidia here and uh the Q's. So, since from the bottoms in April 8th, uh small caps are going nuts. Q's are up almost 45%. S&P's up 35%. I have Nvidia up almost 90%. I put that one in there just to give myself a not to brag chart off please. Uh remember those backtoback down 5% days? I know you've been in Nvidia forever, but I I finally pulled the trigger and bought it on those. I'm like, if this stock is down 40% and we're gonna have an AI bubble eventually, I I got to buy it here. So, I'm probably up 80 85% on this. So, I'm like these people. It's like, okay, what do you do? Do you lock in profits now or and and count yourself lucky? You know, no one ever went broke taking profits or do you continue to hold? Like, obviously the market timing piece is is very hard, but I think it's a different situation with individual stocks. What do you think when you have these big gains in short periods of time? >> What's so crazy is like these generalized questions make absolutely no mention of what these holdings are and why they were bought in the first place. The both of these people by by the way, shout out to everyone that sends us questions. We really appreciate it. And the the goal of answering them is not to dissect anyone personally, but neither one of these people knows who they are or what they're doing here. So, put up the second one. Think I want you to think about this. Most of my portfolio is in index funds. Okay, good start. But I like to pick up a few individual stocks I have high conviction in, but then I tend to trade them more actively when they go up. Well, do you know what the term high conviction means or not? You have high conviction unless it works. Unless it immediately rewards you and then maybe you don't have high con. I don't understand. >> Maybe it's a it is funny because I mean how many people actually have like price targets or thresholds or I feel like with individual stocks for a lot of people it is the wild west where they they don't really go into it with a strategy. It's just >> I don't know this thing goes up. Well, I I kind of relate on that note of not knowing what they're doing. I kind of relate to this question though because I've bought things before. I'm like, I think this is definitely going to go up over the next couple years and then it goes up 40% over a month or two. And yeah, you're like, well, man, should I just go ahead and sell it and make 40%. Or do I really want to hold on to it long term? You know, that's I find myself there. >> Not to brag, a week ago, I interviewed the greatest investor of all time and uh here's what he said. Uh he tells a great story about buying McDonald's in the 1980s. McDonald's had started in the 50s. Okay. And so he's buying it in the 1980s and they're telling him he missed it and then it went up 10fold, right? Or maybe he's buying the late 70s and then went up 10fold. Um so like when you say high conviction, what does that mean? you have high conviction that the stock is undervalued by 10 points and then it goes up 10 points or you have high conviction and the company is an investment. And it doesn't always have to be the same answer for both. But like if if you own shares in a company and you have high conviction that the company is going to be a big success and the stock price is going to reward you, then who cares that it just went up a lot >> unless like what it could do. to turn from an investment to a trade, it would have to be an enormous gain. I think if like because you're right, if >> like so obscene. Yeah. Yeah. >> Yeah. If you're trading if you're changing it from an investment to a trade that quickly, it was never an investment to begin with. >> That's it. That's it. That's what I think. >> What if you thought it was going to go up 40 or 50% over two years and it goes up that in a month? I guess that's kind of >> why did it just go Okay, so why did it just go up 40 or 50%. Maybe something at the company changed where all of a sudden everybody agreed and maybe the opportunity was bigger than you originally thought and now you have to rethink it. But the way this question is phrased, it's not even really about the company. It's about the gain and the the the speed of the gain. That's what they're asking. And so my my answer, which is profoundly unhelpful, is I need to know more. >> And the first question about the should I should I sell out now because we're due for a correction, it's like that's that that we know that one's the hardest one is the market timing piece because guess what we already had the correction the professionals we had the correction no >> see yeah professionals don't uh invest in individual invest in individual companies that way that's that's like more of a macro question or like uh I'm 80% stocks and I'm normally 70 cuz the market just went up a lot and I think we're due for a correction all right then trim back to 70%. That that's a good question. But like on an individual stock basis, I want to sell >> uh Crowd Strike >> because I think we're due for a market pullback. What? Make a What are you? Are you a a macro market timer or are you an investor in a company? Like you All right. So, my my real answer to this is sometimes when I buy a stock, it's cuz I want to be a long-term investor and it running up 20 or 30% a month. Maybe that's only validating why I wanted to invest in the first place and not making me want to sell it. But sometimes I will literally say, I'm buying this for a trade. Um, and so here's an example. Uh, here's an example. Uber. I have prints in this stock in the 20s purchases. It'sund and it's uh 94 whatever. >> Not bad. >> It's I I've been down 50% in the stock and I added to it. It's an investment. The fact that it just it's up 55% year to date. I'm not like, well, should I sell it? No. Because my big my big overarching idea that transportation moving people and or food and or freight is a trillion dollar TAM and the market cap is 220 billion. No, I don't think it's a sell. I'm glad it's up 55% this year, but like I'm not walking around like should I get out because it hasn't played out yet. Philip 66, I bought it as a trade. I like the technical setup. Um, the other two publicly traded refiners already broke out. Valero has made a huge move. Marathon has made a huge move. PSX is the one that hasn't yet and Elliot um or there's big uh there's big hedge fund buying. Activist fund managers buying it. So, it's a trade. I don't want to be in Phillips 66 for 10 years, but I think there's an opportunity as the stock breaks out. Hasn't happened yet. So, I'm still in the trade. I have a predefined stop. If it technically breaks down, I have to sell because I bought it on the technicals. So, two different things. I'm the same person. So, knowing what you're doing with a particular investment going into it will define the answer to that question. >> I think we go to the next question, Don, because I think the next question is someone who actually does have some rules and they're they're questioning them. So, this is a good one, too. >> Oh, yeah. One one thing I was just going to throw in there though, something you guys have helped me with talking about over the last year a lot is not to be afraid of 52- week highs. I think a lot of young people in retail traders, they see that and they think like, "Oh, that means it's due to reverse now because it hit >> what goes up must come down, >> right?" But yeah, you guys have basically shown data that it's bullish when something hits a new 52- week high generally, right? That seems to be. Yeah. Unless you think the market is always wrong, which on this show that's we're not we're not contrarians on this show, per se. We we don't think every other investor is a [ __ ] and we have to fade everything that makes a new high, right? That's not how we operate. So, >> all right. So, up next, question two. Uh given the recent runup, I find I'm finding several of my five individual stock holdings have grown past the 5% concentration level. In each case, I've been selling enough shares to get back to just below 5%. But I get a tinge of regret that I'm leaving additional profit on the table. Does the 5% rule make sense or does it really not matter when the individual stocks aren't part of my core investments? >> Okay, so >> the 5% What is the 5%? >> I think I think for them it's a 5% holding and if it gets above 5% of their portfolio, then they trim. >> Sorry, but that's not like a rule in the I think that's just that's just their rule. They're they seem to be calling it the 5% rule. So part of this could be your Peter Lynch quote that you talked to him and he said like selling your winners to buy your losers is like what? Cutting your flowers to water your weeds. >> But I like the idea of having some rebalancing rules. Like the people in the the first two questions didn't have any rules in place. This person >> individual stocks. >> I don't like it. >> So you So you don't like it at all? >> I like it for uh asset class and allocation. I think it's really important. But you think for these stocks you're you're cutting off your >> I would have sold Apple I would have sold Apple 10 years ago. Like I hate it. It just >> if you're if you're invested in something and it's going well, why have some arbitrary cap on how much money you can make? It defeats the purpose. We should be we should be uncapped in our um So here's what I like better, Ben. Honestly, to answer that question, throw the 5% rule out. Use stop lo use stop losses. Let it ride and raise your stop-loss. You may never get hit. You may you may have a rule where I'm going to trail this thing with a stop-loss and maybe I'm going to use a 200 day moving average or maybe I'm going to use like my initial purchase price like the none of them are like perfect. Obviously, none of these things are if they were all if they were foolproof, everybody would do it. But like why proactively sell something that's in the Charlie Munger said never interrupt the act uh never interrupt something while it's compounding like if if if you want to risk manage if you want to risk manage um because something that should have been 5% is now 10%. Because you were really right okay trail it with a stop loss but by God let it keep >> let me come to the defense of this strategy. I think some people have a threshold in their mind of I don't like having one position be that concentrated in my portfolio, so I'm going to trim it. But >> guess you're allergic to getting rich. >> Someone in the Someone in the chat said that's Kevin Someone in the chat said that's Kevin Oeri's rule. So maybe that's where this came from. >> Oh, you let me just come to the defense here. Some people have an upper threshold where I don't want an individual position to be that much because I'm losing sleep over it. It's You're right. That's how you That's how you win essentially. But I can see having bands where hey if this stock gets to 10% I'm going to trim it back to fi to seven or eight right if it gets down to five then I'm going to buy it back up to seven or eight or whatever whatever the number is. I think having some bands on it to give yourself some sort of rules because the stop-loss situation in your Uber example when you're down 50% what if you got stopped out of it then what that that's so I think having some of these rules is not the worst thing in the world. I don't. So I wouldn't have a stop loss 50% below where I own a stock because it would stop loss. I think I think if you have some of these band I think maybe what they need to do is just increase the size of their bands so that when they rebalance it's a it's a wider range so they let things run a little cuz that's the thing with individual stocks the vol they're trying to play the volatility. So if it does crash 50% then they buy more to bring it back up. >> Okay. I don't I don't hate it. It's just it's bizarre because if it's not cuz the guy is saying it's not part of the core portfol or the gal. It's not part of the core portfolio. So stop treating it like it is. Treat it like it's an individual investment made. >> That's true. If it is this side pocket thing, maybe you shouldn't have as many rules on it. >> There shouldn't be. The rule should be when I no longer think it's a good investment I'm selling, not what percent of my net worth it is. Do I like that for asset allocation? I like that for somebody that's like, "Okay, US stocks are supposed to be 50% of my portfolio and for 10 years international stocks did nothing and the S&P doubled and and now I have too much exposure to US stocks." Absolutely. Rebalance back, add to the areas of the market that haven't been doing as well. Ultimately, you'll be rewarded. Look at this year. international is crushing um the the US large cap indices. So it I I like that when I'm buying a stock and it's a long-term investment and I have an idea about why it's going to 2x, 3x, 4x. By the way, I won't make an investment if I don't think it it could at least 2x. I have no interest. That's a trade. So this is so like some of this stuff Ben is like a nomenclature almost like a semantic thing where it's like if I'm buying a stock for a trade I obviously don't want to own have it be more than 5% of my I don't want to take swings like that on a regular. >> So part of it is you know the part in a few good men when Tom Cruz gives the guy the rule book on the stand and he says show me where it tells you to get to the messaul and he says it's not in the rule book. some of the stuff with individual stocks maybe it's it's more of a rule of thumb >> and it's not you can't make it so systematized because there's a ton of really good books on like how and when to buy stocks. Has there ever been a good book written about how to sell stocks ever? >> Yeah. Um >> I don't think there has. >> No, I I agree with that. And then the the other thing that I would just bring out here is you also have to know what phase you're in. So, I'm assuming most of the viewers of the show are in the wealth accumulation phase. It practically demands that you concentrate if you're doing individual stocks. Like, what's the point of buying a 100 shares of a stock and then it doubles and it doesn't move the needle in your net worth? And what do what are we doing? >> I guess if you're Yeah. If you're diversifying individual stocks outside of your core holdings, like it's easier to do that in ETF than it is yourself. >> Yeah. Yeah, I guess make it count. Like if you're going to if your core portfolio like 90% of your net worth away from your house is like broad diversified exposure. First of all, great decision. And then you're going to go to the trouble of setting up this like sort of like side pocket account with a few high conviction concentrated uh high conviction stocks. They should be concentrated and you should you should win big when you're right and focus on mitigating loss when you're wrong. But like being in the middle, it's like what almost what's the point? Like take a take a swing. Be somebody. >> That's why Duncan has 150% of his portfolio in Ooli. He's got it on leverage. >> Like be somebody though. Do it. Look, I know the I know the advice I'm supposed to give, but I'm not talking to somebody that's 70 and can't replace this money with more income. The the the demographics of this show, most of the people by definition, like watching this on YouTube, are in the accumulation phase. I'm saying go for it. >> Yeah. And I was >> have some risk management, but like, oh, it's over 5%, I have to sell it. >> Why? What are you afraid of? probably more I'm probably more like this person that I have a lot of rules and even in my brokerage account I don't have rules like this because I agree it's this is this is where you should be able willing to take a take a swing that's that's the anyway all right next >> John Carlo in the chat wants to know >> it's risk it's stocks >> right >> yeah John Carlo wants to know why the markets dropped during this show >> sorry yeah Josh stopped trading all right let's do another question >> okay up next we got a question from Molly my husband's Scott is a woman. >> See, I told you we would give more females representation on this show. >> Yeah. Look at this. Yeah. >> Well, I like that Scott game the system here. He had his wife write the question. >> There you go. >> My husband Scott is a loyal listener and has encouraged me to reach out to you with a financial question. My grandmother is unwell and recently told all her grandchildren will each receive a significant inheritance of 150 to 200,000. >> Way to bring the show down. >> Yeah, I know. Yeah. Yeah. Sorry. Sorry to hear. Uh Scott and I live a reasonable lifestyle, max out our 401ks, have the cars paid off, and have a good emergency fund. How should we use this money? My thought was to divide it into thirds. College fund for our son, savings, and a house project or vacation, vacation fund. What are your thoughts on this plan? Are there better uses I should consider? >> First of all, Molly, kudos to your grandmother for telling you this in advance. Most people don't talk about this stuff, so the fact that you can kind of plan on it is good. This is going to be something a ton of people are going to have to work through in the years ahead. We've already gotten a lot of questions on inheritances over the years. Uh like the great wealth transfer, Josh, I don't know if you've seen the numbers. It's 70 trillion or 80 trillion or 100 trillion, whatever the number, depending on who you ask. It's a lot. It's a lot of money and people are going to need advice on this. Um so obviously from a financial standpoint, this is a good problem to have. For some people, the money is going to have an emotional component to it. So I think it's going to be hard to separate that. For some people, if your grandparents, like they're old enough, you probably figure they're going to get there. But for other people, you never know. Um, it sounds to me like Molly and her husband don't have any leaks in the boat to patch up really. Like it's not doesn't sound like they have credit card debt or anything crazy. Um, I don't I don't I like the idea of having more of like an asset allocation when you get a bonus like this. Um, do you have any strategies when you get a a bonus set of money outside of your income for putting it to work? Because I think the way what she outlined seems relatively reasonable to me. >> Can I see Molly's question one more time on screen? I just want to parse something. My husband Scott and is it Ky? Okay. So, it's it's it's Molly's grandmother told all of her grandchildren. So, she is one of uh it sounds like there are at least three siblings, right? You wouldn't say all of her grandchildren. You say both if there were two, >> right? >> Okay. So, the grandmother is going to drop 200 grand on a whole set of siblings, uh her grandchildren who are adults. Okay, got it. So, in Molly and Scott's case, they're sort of good. >> This is not like Right. Okay. So, that's your point. Like patching holes. There's no emergency use of this money, right? Right now, >> there are like smart things to do obviously paying down debt. The kids are going to have to go to college. Yeah. I guess the the most obvious thing is the 529. I don't know how old the kids are, but that's an that's an obvious thing. The grandmother, frankly, should have done it before she passed. Yes, the grandmother you would think would like that as a as a strategy. I >> I think grandmothers should have personally done it anyway years ago, but fine. That's the That's the That's the And I think is that $50,000 you could do in one year as a lump sum. >> Yeah. I don't know. >> Is that the number? >> That's a Bill Sweet question. I don't know exactly what the either is. >> Yeah. No idea. >> I a financial advisor, >> but I like that she included vacations. She said she said we're also going to include in here vacations and house remodels or whatever. But I I think you should take some of it and actually enjoy it, right? That's the whole point of the money. It's like this bonus money that you weren't expecting. I would take I would take some of it and take your kids to Hawaii or something, right? Have do something fun with it. >> Yeah. Or [ __ ] all that 529 [ __ ] Establish a digital assets trust or DAT if you will. Go public. Raise an additional $8 billion because everyone's out of their mind right now. and really maximize the grandmother's uh this inheritance that your grandmother left you. It's another >> I'm just spitballing here. It's another way you could go. >> Just do the air drop to the kids. That's all they need. >> Do do a literal grandma spack. >> Do a granny shot with that money. Granny shots for every all of the the great grandchildren would be the way I would. >> Here's the thing though. Financial adviserss in the years ahead are going to have tons of questions like this about inheritances. There's going to be so much money because as we've discussed many times, a lot of the baby boomers are not spending down their money. They can't force themselves to do it. >> And there's and there you're not going to change them at this. I talk to my wife about this all the time about my parents and her parents. Do you think we're going to change them as people in their 70s and 80s? Of course not. >> It's s it's such a it's such a huge point that you make. There's actually no possible way that they're going to spend the money. No, >> it's it's it's like it's like $20 trillion when they're in their 70s and when they're when they're 80s it's like $40 trillion. Like it's uh so we see like um we see attempts at this. We see patriarchs and matriarchs of families do like these gigantic skies because like in the winter their kids and their kids' kids will come for a week and they'll ski and they'll right or like like a like a house uh like a vacation home in Mexico or something. In your 70s you could do that. In your 80s you just you're not traveling anymore, >> right? >> Yeah. And it's funny one of the the guy >> short of vacation properties. How do you spend that much money? You almost can't. >> The guy three houses down from me at our lake house said, "The reason we bought this because our children are now in their 20s and this is an excuse for them to come visit us somewhere. >> That's a great spend of your That's a great use of your resources, though. I think >> as someone who's older than you, Ben, and and in some ways uh slightly slightly more experienced, uh how am I years older than me?" That's three years older than me. Get out of here. I was going to tell you I want to give you a sneak preview of what I see and maybe you see the same thing actually. >> Uh I have some friends who are a little bit older in their 50s because their youngest kid was friends with my oldest kid, right? So like you probably have some of that and you get like a little bit of a glimpse like a little bit. It's like a little bit of a cheat code to see what their priorities are. So, my friends who are in their early 50s whose kids are now either in college or graduating and starting to move out, it's all about travel. That's all these people talk about. They eat, sleep, and breathe. Where's our next trip? >> I think the madness of sitting at home, >> like just looking at the two of like the two of them looking at each other. >> Yeah. So, it's it's all about travel. It's it's uh hiking trips and cruises and uh uh Europe through the European tour and it's that's it. That's like the whole ball of wax in addition to obviously paying all the bills for their their young adult children's who are away. Like that's what they're going to do with their money. Then in the 60s something interesting happens. It's it becomes more about a second piece of property because the winters are a little bit less tolerable, right? Um >> and the travel is probably less tolerable, too. You don't have as much energy. >> You sort of, right, you sort of slow down the travel. You don't It doesn't cease completely, but then it becomes more about a second home. I got to get out of here for the winter. >> Going away to the Caribbean for six nights doesn't do it. I need to be away for like 3 months. So, when you're 60s, that's the priority. This is a wellto-do 60some is Florida, Arizona, whatever. Okay, the 70s now your kids are having kids and now the priority is proximity to the grandkids, >> right? >> Being in the grandkid's life. So then it becomes about um paying for family vacations, okay? or that second home like let's turn instead of just having a regular second home, let's build like a vacation palace in the Hamptons or in the mountains upstate like a lake house. Let's build something seven bedrooms, something insane where my kids will bring their kids for a week at a time. So that's what I'm seeing in people in their 70s. Then your 80s, that [ __ ] just stops. I wish it weren't so and I don't like saying it out loud and I'm not trying to upset anyone but like the way it ends is you're always ill and if you are not your spouse is you're not pouring your >> In my 80s I'm going to find a bar stool at the local bar and I'll be there every day. How's that? >> Something tells me you'll still be in the gym like Schwarzenegger. But like so so the the cadence of these things and the time and place and the priorities. So, I'm seeing like it starts I don't forgot what the original question was, but like uh >> Yeah. No, that that your what you just outlined there is actually a really good segue to the next question because it talks about like the stages of life. So, Duncan, do the next question. It's actually a good segue here. >> All right. Up next, we got one from Adam. I'm a middle-aged guy like Ben. I'm 45. There's plenty of advice for young people. Just keep buying and old people 6040 and diversify. But what about us middle-aged people? On the one hand, my net worth is doing great. $2.6 $6 million including our house. >> All right. Good. Not to brag. >> Yeah. Not to brag. >> Not to brag. I like it. >> On the other hand, my income is at an all time is at all-time highs along with our savings rate. Should I be rooting for a lost 5 to seven years in the market to buy lower before a bull market that leads me into retirement at 60? Should I be protecting my portfolio? I'm basically 100% stocks besides my emergency fund. How should I invest in my 40s? >> Okay. I mean, I I should be heard at this question, but I'm not. I'm 44. See, how old are you? 47 48 >> 48. >> See, yeah, you're not that old much older than me. >> I'm a very youthful 48, I'm told. >> This is This is a very good question, though, because he's right. There isn't a lot of Because you're kind of straddling two lines here, right? You have enough money where if if there is a severe bare market, it's going to be painful because the the dollar declines hurt more than the percentage declines when you have actually have a portfolio, right? when you see the dollar declines in your portfolio, it could be a 15% portfolio that hurts more than a 50% crash when you didn't have as much money, right? Because you see that dollar those dollars evaporate. Um, but I actually think being middle-aged is kind of a little bit of the best case scenario because you have a little you because he said your income is probably at all-time highs. So, if the market does go nowhere for five to seven years in his perfect scenario and you're you're buying at your at your all-time high savings rate or whatever, that's actually a good thing for you even though you're seeing your portfolio evaporate. The thing you have to figure out is are you okay not having your portfolio protected at all? Like, do you need to hold more cash or bonds or some other type of strategy to see you through so you don't freak out if there is an extended period of of downturns? >> How do you think about investing in middle age? Has your has your mindset changed at all about this? >> No, I'm in Dude, you know me. I I'm 100% Mether >> I'm 100% stocks in my 401k. Um I don't root for downturns. I just accept that they're inevitable, >> right? >> And look, uh my income will suffer is a lot of my income is derived from the registered investment advisory firm that we own. And uh you know, of course, when portfolio values fall, we will make less money, but we will attract more clients and you know, there's a lot of people that they don't know how bad their portfolio is until until that happens, >> right? >> So, we'll come out of that next downturn bigger and better, you know? So, like that's fine with me. >> I don't think people realize how much turnover there is among financial advisor clients in a bare market. It happens. That's like a for our business. It's crazy. >> We're going to we're going to eat on that next one for sure. Um cuz it's been so long since we've had one. Like a legit one. Um >> but so like I don't root for them, but I also don't like uh live in fear of them. And I've been through, you know, I've been through a hundred of them. >> It's part of the game now, right? >> Yeah. I'm I'm the same way. I'm I'm all in socks and I think like gosh, should I take some money off the table here? But >> I'm not going to Why am I going to stop working? You know, you do it. >> Exactly. That's the That's the thing. what am I going to do with it? And I'm I'm fine taking the risk, too. But actually, he said like, "How should I invest my 40s?" I think your whole thing, the cyclical part you went in the last question, like, hey, in your 50s, you're going to do this. In your 60s, you're like, start planning for some of those goals. If if you have, this guy is worth almost three million bucks in his mid-40s. Kudos to him. >> I honestly think AI is going to cure most forms of cancer. I have to be honest with you, you should be investing as though you have 50 years left because you probably do. If you're in the upper end of the wealth and or income distribution in the United States of America, there is a very high likelihood, barring a nuclear conflict with China, that you're going to live to your 90s. >> Oh, yeah. People >> stop talking about middle age. >> Stop stop walking around afraid of your own shadow. Stop worried about hedging. You have like respect respectfully, $2.7 million is a super accomplishment by your mid-40s. It's awesome. But like in the scheme of what you could be worth, if you if you just stop focusing so much on like the next 5 years or what do you say 5 to seven years, >> uh you have no money right now compared to what you will have. You have nothing. >> The thing is all those goals that you laid out, hey, if you want to have if you want to travel in your 50s to Europe and then in your 60s you want to buy the vacation home in your 70s close like you're going to need more money. And so that's why you want to let it grow and >> and unless you unless you have a goal that you want to use it for today besides like the kids, you know, college fund or whatever, like yeah, you have plenty of time to let it grow still. >> You have two, three, four decades to let this money compound. You have plenty of time still. >> Don't get off the right. >> I mean I I mean focus focus on still in your 40s like focus on extending your career. The worst thing that could happen is the worst thing that could happen is you retire yourself and then you have nothing to do and no income. Like it's not it's not ideal for most people. Most people do not thrive. Some people do. Some people spend their 20s and 30s dreaming of retirement and then they do it and they move to a low cost area and they make it and they make it work and they have a hobby that's so important to them that it almost feels like this is their life's pursuit. And I I applaud that. I that's not me. I can't relate to it. >> If we retired early, you and Michael and I would make Duncan still hop on and we do a podcast for each other. >> Be doing more YouTube. >> So, I can't relate to it. But if I had a a job that I hated and I used to, this part I can relate to. >> That would be my goal. Like, how do I turn this 2.6 into 3.6 and then find a place where I can make 3.6 last for uh 40 years? But I that's not I mean that I don't think that that should be most people's agenda. If you hate your job that much that you're dreaming of retirement at 45, maybe invest some money into a career change. >> Yeah. >> Or buying a business where you're in control and you don't hate what you're doing every day. So I look, it's not for me to tell people how to live because I do understand the mentality of like I'm just tired of it and I want to be done. I just >> Everyone's had one of those jobs before where it's soul sucking because you go to it every day. >> Yeah. My first job. So, actually, I don't want to do a whole tangent, but this is the best thing that ever happened to me. I hit my wife's uncle's car. So, my wife's aunt and uncle had like this big gigantic MercedesBenz boat parked in um parked in my wife's parents' driveway. I was seven 16 16 17 shouldn't say I was 16. I was 17. So I was legally allowed to drive and they were pulling they had pulled into the driveway and I didn't see how big their car was and I was pulling up to the house and I took out the quarter pan rear quarter panel the the the brake light. I just I I screwed the car up and I had like I didn't want to tell my parents. Um so I got a job. I went to the hardware store and I swear to God I'm sitting 100 feet away from the hardware store right now. Okay. But I went to the hardware store and they said you could be a cashier. And they put an apron on me. It was called Pergamant. And I uh stood at the cash register and watched the clock all day. I can't wait for this to be over. I went after school. My friends would come in and [ __ ] with me. They'd fill up a shopping cart filled with stuff right at closing and then leave it there. >> Get in the car and drive away. I had to spend an hour every aisle putting each item away. Great friends. >> But I did it for 3 months until I made enough money to give to give to my father-in-law who would give my future father-in-law. Then it was my wife's uh dad. And then he said, "Josh, that's it. I'll pay for the rest. No, you don't have to stand there at a cash register. Focus on your He's like, "You proved your point. you're you're a you're you're a kid with integrity. I appreciate it. I'll pay for the rest. Just go back, focus on school. But that job I that job like taught me so much about being in a like a thing where you're like, you can't wait for it to be over, >> right? >> And I I never had a job like that again. I almost like I refused to to do it. I've had other bad jobs, but like so if you're in that situation um where you can't wait for it to be over, maybe the best investment is thinking about a different career rather than like how quickly could I be retired on like what's the bare minimum amount of money I need to never have to work again. >> All right, let's do uh Josh's career advice for the next one. I saved this question just for you because I know that you talk about this one a lot. So, let's do one more. >> Sean Greish in the chat is very excited about retirement. He said, "I reserved a spot at Delboka Vista 25 years ago." >> I don't know what >> Seinfeld reference, right? >> That's a Seinfeld reference. >> Oh, is it? Okay. >> Yeah. Come on. That's where George's parents go to retire. >> Ah, >> and Jerry's Jerry's parents retire and they wouldn't let George's parents come. >> I was in Bokeh last week. I worked harder than I've worked in any week at all this year. Duncan Duncan will tell you I just spend half the I think I spend half the time on TV, on YouTube, on Zoom calls talking to adviserss and their clients. Like I I don't even know I was away. I could have been in closet somewhere. >> If you guys retired, we just do a nightly two-hour live stream or something. >> Yeah. Right. Exactly. >> Retirement live. >> Yeah. Yeah. There you go. Okay. Uh, last but not least, we got an anonymous one, as you'll see from the question. I'm a 25-year-old adviser at a small firm in the Midwest. I started working here right out of college and have learned a lot over the past three and a half years. Recently, one of the owners mentioned that he would likely never sell the business or might eventually pass it on to his sons who are 11. >> This is the best thing I've ever heard. This this was surprising as when I was hired, the plan seemed to be that he would retire at some point and possibly sell the firm to me or another current adviser. This shift has me questioning the long-term prospects of my role at the firm. I've been fortunate to build a solid client base without needing to cold call, which I appreciate since sales isn't my favorite part of a job, but the clients aren't considered my book of business as every client is technically owned by the firm. Part two, I earn a good living and the firm is generous with 401k contributions. However, since a recent adviser retired, my workload has increased and I find myself spending more time on administrative tasks and supporting other adviserss rather than working directly with clients, which is my favorite part of a job. >> Oh god, this is longer than war in peace. I appreciate it. >> Any advice on how you'd approach the situation? >> This is perfect because Josh has talked about this end. >> Josh has talked about this very scenario before. >> We even cut this one down. Um, his boss, uh, spoiler alert, his boss is Logan Roy. Um, this is a succession episode. Uh, >> that's just He's gonna pass that on to his 11-year-old sons. Uh, >> can you imagine thinking you were gonna get that book of business someday? Wait, >> dude. >> My daughter is 11 and I'm thinking about like, imagine me saying that and passing my my blog on to my daughter someday or something. I can't >> It's twin 11year-old boys in Iowa who show up at the office and tell this guy to go get them a glass of water. Yeah, get my Stanley Cup for me. Uh, so but you've talked about this a lot >> for me, mister. >> But you've talked about this a lot like that how this happens all the time where these adviserss say they're going to retire or they're going to hand down a book of business and they never do because guess what? Being an older adviser is easy when you have younger people doing all the hard work hard work for you. They don't need to retire. They never keep cashing the >> paycheck. Why would they leave? That's this is it. This is the thing. Why would they retire? What if they just stop working but don't retire? What are you going to do about it? You're going to keep you're going to keep showing up until you've had enough and you quit. And then they're going to find some other kid, 25year-old kid, and sell them the same promise. Yeah, I'm going to leave in 5 years. This will all be yours. They don't leave. They're like uh it's like a a stone just collecting moss. It just it just sits in the river. the river keeps running by. Those are the fees. The moss just accumulates and uh they they don't they don't have to do anything anymore because you're doing it cuz you think this is going to be your business. But there's two kids in in sixth grade laughing their asses off. You know what I picture? What's the um the Wes the the the Wes Anderson movie with Ben Stiller? >> Royal of Bombs. Yeah, Royal Town. >> Royal Sen Bombs. He's in like the Adidas tracksuit and his two sons are identically matching. >> No, like no, no disrespect, bro, but like >> But wait, so what do you what do you give this kid? Do you say get your get your experience and then get out after you've got experience or what? >> You should be interviewing right now. First of all, get first of all, get out of Iowa. Um, go to Indianapolis. Go to Chicago. Go some go someplace with a much bigger pool of potential companies to work for. You could always come back to Iowa and estab but you're 20 you're in your 20s I'm like I'm assuming if you are married and there are kids everyone's young everyone's uh mobile you got to you got to go somewhere bigger and be exposed to a wider world and find um a different work situation and um and and you have to focus on your career. Don't focus on this guy's business that he's telling you is never going to be yours. Do not do not spend your I I get it. It's stable income. You can find that elsewhere. Do not spend your 20s and 30s building something that you are already being told will never be yours. >> Especially once you had it in your mind that this was going to be your business. Now you're going to you're going to spite this guy for the rest of your days. There's never going to be a relationship. >> Stop sh in the chat. Josh, a crazy Midwest hater. Shaking my head. Are you deaf? Did you not hear me say go to Indianapolis or Chicago? Where are those places located? California. Okay, sorry. Continue. >> All right. See, >> you guys want to do this live? >> Yeah, I was surprised to to see that I was in the Midwest. >> Josh's wife went to Michigan. She's a fellow fly state person. >> I I love the Mid We just opened our second headquarters in the Midwest. It's like one of my favorite places in the whole world. Never a Midwest hater. >> Yeah, but you're right. This is never going to work out. He's going to hate this firm for the rest of his days there. He's I think you have to especially once you realize you know what you want to do. You can't stay there anymore. It's the same thing about having the job you hate. >> He's in a he's in a very shallow hole right now and he's asking, "Should I keep digging it deeper?" >> Right? Like that's you you have the whole you have your whole life ahead of you. >> You have a whole great big adventure ahead of you. Step one is recognizing that it's not what you're doing today. I know it's easier said than done because it's income. >> I wonder what is his boss expecting to happen telling him this. I just don't understand. >> Yeah, it doesn't exactly help morale. >> Well, he's but he's doing the right thing. What the guy should be doing is is saying, "I'm going to make you a partner, but you're never going to own the whole thing because >> I envision." Now, it's very possible the 11year-olds in 15 years have no interest in doing this. Kendall and Connor aren't going to want to take >> You want to find out? >> Yeah. You want to wait and find out? >> They'll just be stakeholders, you know. >> So, someday this could all be yours. No, I'm good. >> Yeah. >> All right. >> It's possible. >> This is an actionacked episode today. >> 45 minutes and 26 >> Wait, 2,665 people watching right now across Twitter and YouTube. >> Oh, that's super fly. >> We appreciate everyone in the live chat. As always, remember, ask the compoundow@gmail.com. If you have a question for us, leave us a comment on YouTube. Subscribe, rate, review. Uh, idontshop.com for all your Compound needs. I think we're still waiting on the new hats to come back in, right? I think we're still >> keep hammering this. Yes, we're going to get more hats, but they're not there yet. >> Bring them back. All right. All new Compound and Friends on Friday. Do you still have tickets available for the Jim Kramer Show? Are they all out? >> I don't know. >> I think I think we have a couple. I think we have like two. >> Yeah, as in like maybe two or three. Yeah. >> All right. Maybe I'll give them to my mom. >> All right. >> Oh my god. >> All right. Thanks everyone. We'll see you next time. >> Thanks everyone. [Music] [Music]