Episode of My First Million with Sam Parr and Shaan Puri.
Transcript
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Kind: captions Language: en [Music] sean you and i were sent something from our friend jack steph i’ll fill you in so basically there’s this guy named ryan cohen ryan cohen he started chewie.com which is a like amazon for pet stuff when he was young right sean i think he was like in his early 20s and he was aggressive when he started it he raised a ton of money he started out of florida so he was very much like an individual thinker he was like no we’re not doing silicon valley we’re gonna do this out of florida he raised like a billion dollars a huge sum ended up selling it for three four five six billion i don’t know the exact amount then it goes public worth uh many billions but after doing that he made i think around like 600 million dollars like a huge amount of money and after he made that money there was an article written where he goes i pretty much put all of my money into two stocks apple and wells fargo so he put like all of it in there and since that article went live that means that the money that he put in there has gone up 361 then about a year and a half ago he noticed that there was a brand that he loved that wasn’t doing so well and he thought these guys could totally revolutionize the game but they’re just really like getting they’re getting crushed right now i’m gonna buy 10 of the company which he did for 76 million dollars and that company was gamestop and when he bought gamestop that’s when this whole like meme stock thing went down because everyone was like brian cohen bought it and he actually it worked he turned the company around or at least it’s in the process but it’s being turned around and his 76 million dollars he turned into 1.1 billion and he currently still owns like 13 of the companies on their board of directors now just this morning it was released or announced that he just bought 10 percent of bed bath and beyond so he’s doing the same thing and this guy is a madman i think i’m almost positive he’s still only 34 35 years old i also researched on linkedin i’m almost positive that it’s just him like he doesn’t have an employee maybe as an assistant but it’s like just him like searching around for stuff so this man’s crazy and i love him so his money’s already up uh yeah okay he’s amazing i feel like there should be like a ticker for just like stocks that aren’t small that have fallen like 80 plus percent from their highs it’s like what crazy operators want to like come in here and totally turn this thing around i feel like you could also have a podcast about that where you just like you find a stock like bed bath and beyond and you’re like look highs were at 80 it’s now at what was it before this like six dollars like what would you do if you were operating this business and have people like come on and battle like jeopardy style and see who comes out with the best strategy that’s kind of cool yeah right now there’s like a whole bunch of growth stocks that are down you know somewhere between 50 and 80 percent from their all-time high and you know stocks like zoom and uh you know vastly and a bunch of others and uh there’s you know there’s like kind of that one buffett phrase you know be uh be greedy when others are fearful and fearful when others are greedy it sure does seem like now is a good time to be greedy when others are fearful right like uh there’s a lot of you know opportunity everywhere in the market and so you know if these are things that you believe in on a 10-year time scale then like this is a fantastic entry point uh here’s another interesting one so i was thinking about this bed bath and beyond thing and game stock and my friend joe sent this to me so have you guys remember express yeah i don’t know if they if they have that in canada stuff but express mostly women’s clothes it’s like it was like fast fa fast fashion before that was like even called the thing so look at what their market cap is i think their market cap is 250 million dollars right now but their ebitda is 150 million so i think express is an interesting one too yeah but you got to look at like the debt and all all these other obligations they haven’t they have a ton of debt yes they have a ton of debt that’s the problem they’ve got a ton of time jack was a ryan cohen is basically he’s doing the tai lopez playbook of buying old retailers and spinning them into like you know e-commerce and sort of rejuvenating these big old brands you know he’s doing the same playbook as tai lopez just without being tai lopez which is actually a great idea in general that’s a great business plan to follow do the tai lopez playbook without being tai lopez is like a a great great idea when people talk about buying when the like buy buy the dip i hate that i’m because i’m like i don’t i don’t have any money to buy chew the dip yeah that’s what i gotta do i don’t know whenever people say buy the dip i’m like with what i i don’t own anything what do you what do i do you don’t keep any uh dry powder i feel like you always you’re always mr like safety net with cash and other things you have dry powder why aren’t you buying the dip i have a hundred thousand dollars in cash oh wow okay i think you used to have way more in cash now there’s now that’s your short-term real estate mobile you’ve deployed everything or what i’ve deployed everything yeah i don’t i yeah i don’t have that much cash i don’t have enough what do people just hold like keep cash in a checking account yeah certainly people do that they do cds they do you know different like different versions of like a market neutral like you know cash position i own bonds i own a ton of bonds seven figures of bonds but i guess who told you to do that uh it’s five percent of my net worth is impossible who told you to do that don’t nobody buys bonds on their own everybody gets told to buy bots my my a lot of my portfolio is 90 10. so 90 equities 10 percent bonds you’re not you don’t play do you own a bond i don’t know a single bond steph do you i don’t own a single bond really but i feel like sean’s right like what what rate are you getting on these bonds aren’t interest rates at like zero yeah nothing like two percent yeah i don’t know it’s just like traditional yourself into a money losing position congratulations well actually that’s a good question with with havoc going on right now sean from one is your net worth down from one year ago today if assuming you did not add any new cash yeah for sure one year ago because one year ago was like a market high right like uh if you’re talking about right after the covet bounce so like let’s say kovid crash then covert recovery all happened in like a three month period or six month period basically so let’s just take the all-time high last year to today i gotta be down 25 30 percent easily easily 30 percent i would have thought it would have been a lot more because of you have more high-risk stuff uh yeah but like a lot of myself’s in amazon stock and amazon stock has done fine you know it’s down a little bit but uh yes that one’s not so bad and i would say like you know that’s a pretty large position so that’s not super that’s not very risky in my opinion and um you know crypto cryptos you know down one over 30 30 35 from last year most of it but i have a few like altcoin bets that have done really well so like uh i was on here talking about luna not long ago luna’s up 100 so it’s like you know that that doubled while other stuff went down 30 so it’s okay you know we do all right but sean where’s your psychology at because i feel like you know everyone knows the strategy like yeah buy low sell high but when this actually happens when all your stocks or all your investments go down it’s like so hard to actually maintain that psychology and be like oh yeah i’m totally gonna put more more money in the market so are you like is your conviction still as strong as it used to be are you like yeah this is like awesome i’m going to buy the dip or are you struggling quick interruption do me a favor scroll down and you’re going to see a link to the hustle so if you want to stay up to date on the tech and business news you need to know check out the hustle it’s a daily email i used to help write it i love it so check it out scroll down below let me guess don’t talk sean don’t talk yet i have a feeling that this means nothing to you and you’re totally cool about this uh it’s actually even better i don’t even look like i don’t look at it because i’m like oh why would i look it’s just gonna be down so i just don’t look which means i don’t think about it which is actually like the correct way i should have been doing it all together like waking up and seeing green put a nice little pep in my step but was sort of this like false uh positive and um and now i just don’t look because i’m like oh yeah of course i’m down five percent again today like what i just lose five percent every day or two percent every day that’s just like a an average day now so i just don’t even look at it and because i’m not looking at it it doesn’t matter because i wasn’t selling i wasn’t selling when it was going up but i’m not selling when it’s going down so it doesn’t really matter the day-to-day fluctuations of it so now it’s just i just get some time back because i don’t like want to go look at it because i don’t want to see any carnage so i’ll just like kind of ignore it and just go about my my day and uh you know i kind of asked i’ll pause i’ll ask myself you know has anything changed meaning do i view these investments differently now do i no longer believe that these are good good investments to be in over like a five to ten year period no okay so then you know what am i thinking about there’s nothing nothing nothing to think about essentially at this time do i buy the dip uh that’s one where you know sometimes i do like to just chill and just like sit on the sideline for a bit um because i’m a pretty like i’ve spent a lot of time in my life gambling like i literally played a lot of poker a lot like i’ve spent so many days in a casino and so i know the feeling of chasing a loss trying to win it back and um and so i just like to make sure that i’m not doing that so there’s a difference between buying the dip and chasing a loss and you know throwing good money in after bad and so just trying to differentiate between the two like am i on tilt or do i actually believe that you know this is a good good entry point and you know whatever else so i would say the one thing this does do is it heightens my focus on earning money because like oh i need to like earn money i can’t just rely on my investments you know completely so like what do you know i got off my ass i taught my course and i like submit my invoice for for the podcast and i like i do things that like will bring cash in because otherwise you know it’s easy to get lazy when when everything’s just going up so much right there’s many days where you could just look at your portfolio and just be like wow that was a whole year’s worth of salary just today swing like swing up so that kind of makes you kind of lazy to like do the work that day in a way right because it’s like oh well this if this just could earn that much money just doing nothing every day like why do i need to go hustle for that you know that next dollar i feel like yeah i feel like a lot of people are feeling that way they’re like oh right i have to work like this doesn’t matter which is very healthy very healthy position to be in