What Warren Buffet *JUST* Said.

so Warren Buffett just gave some

wonderful life and investing advice that

I think is so wonderful and uh really

genuine and I wanted to make a special

segment just to highlight some of my

favorite parts of what Warren Buffett

mentioned uh first probably by far the

biggest mention that I think will go uh

really uh under uh the the news

coverages uh that is most people won't

pay attention to it is that Warren

Buffett's biggest

goal in business is making sure that his

companies are run by good people who

basically do the right thing and provide

a good or service that makes happy

customers that's it and I I can't

emphasize enough how important that is

it's one of the things that I built my

business on is the idea of providing

value providing more than what people

are expecting whether it's in uh when I

was working at Jamba Juice or Hollister

as a real estate agent as real estate

broker hopefully as a YouTube content

creator in my courses as a financial

advisor who cares whatever it is my goal

is provide more than people are

expecting and I think Warren Buffett

reiterates that exact notion and he

invests in businesses that do exactly

that for example one of these incredible

comparisons he makes is he makes this

comparison of how people will go out of

their way to pay more money for the next

iPhone he reveals that he has an iPhone

and even though he doesn't understand

how the iPhone Works he understands that

people are willing to pay a premium for

that iPhone what he's really describing

is pricing power what is a product a

good or service where people are willing

to pay for it no matter what the price

is is that potentially a Tesla with full

self-driving is it an Nvidia Graphics

chip is it an AMD is it uh the Nvidia

server chips or uh or you know is it an

end phase micro inverter because people

just have to have that particular

quality micro inverter over another who

knows but Warren Buffett makes a

fantastic argument if the company has a

goal of making their customer happy they

win and that's his only goal he doesn't

care about economic forecasts he doesn't

really care about the new cycle he cares

about the business and even though in

some of his businesses he's realizing

negative 22 percent year-over-year

declines he's seeing that some of his

managers in fact a lot of his managers

are seeing uh things are down a lot more

than they thought they would be six

months ago and part of that could be

because of Prior orders basically

keeping the pipeline full and now

they're slowing down even the railroads

which transport a lot of essential Goods

for the businesses Warren Buffett

invests in even railroads are seeing the

Slowdown he's seeing the Slowdown but he

ultimately just says look he's been

doing this for well over 50 years

probably well over 60 years at this

point the one thing to focus on is

providing good value and making sure

you're doing the right thing you're not

a criminal you're putting one foot in

front of the other and you're investing

in basically pricing power style

investment it's a fantastic Insight

really it doesn't matter what economists

say in fact he says he goes as far as

saying that Economist or a waste of

money and then if there's an economist

providing projections at a company they

should not uh be spending money on that

person in other words the company is

wasting their time and money listening

to that person because nobody knows the

biggest thing that matters are numbers

he's asked about the credit crunch or

the banking crisis and He suggests hey

you know what the banking crisis

probably isn't over there's probably

more damage to come and a lot of people

ask me they say Kevin uh and I'm not

trying to compare myself to Buffett I'm

just simply you know people ask me they

were Kevin what do you think about the

banking crisis like is it is it going to

get worse and the reality is there are

always going to be companies that the

fringes that go bankrupt especially

during recessionary times always that

that will always occur there is no doubt

that in recessionary times businesses

will fail those will be Banks those will

be companies that you know and love

those will be companies that you hate

there will always be companies that fail

that is extremely normal and so am I

terribly concerned about a banking

crisis no am I terribly concerned about

credit conditions tightening not

terribly there was a fantastic piece in

the economist this morning though that

did make a fantastic argument and the

Fantastic argument they made uh was

actually I wrote it down right here they

say uh the final source of stress will

be firm's own liquidity that is

companies have been basically able to

pull inexpensive debt but if there are

future shocks being able to pull new

liquidity going forward may become more

difficult so maybe we haven't seen the

full shocks yet because we need another

shock to actually strain businesses and

then we will see a real liquidity Crunch

and it's an interesting argument because

it basically says don't look at the

banking crisis today and try to find

what the explanation is for credit

crunch today instead look for what a

credit crunch could potentially do

during the next shock now Warren Buffett

does the usual when it comes to bitcoin

he says Bitcoin has the same Allure as

playing Russian roulette in other words

words he eludes or Associates it with

gambling he says that a Taiwan

semiconductors is the best in its field

it was uh his decision to end up parting

with the company sometimes he does that

because he sees a better opportunity

somewhere else and in his case it seems

to be cash because they've got about 100

billion a billion dollars in cash

sitting around do keep in mind they've

been spending a lot of money on stocks

as well uh Warren Buffett calls AI

technology extraordinary he does cite

some concerns with him he says that

inflation is a constant threat to a

country because ultimately you fade away

the value of a dollar and this is why

you invest in assets uh although Warren

Buffett does invest heavily in cash a

lot of that money is held in treasuries

he says he's not into commercial paper

he prefers treasuries

he does say there could be further bank

failures and that the government won't

save shareholders from troubled Banks

which they really shouldn't he says that

troubled banks are not value stocks this

is something I've mentioned as well is

that I think troubled Banks could be a

way to maybe speculate and gamble but uh

in the long term they're not something I

would want to hold

he says uh let's see here dumb things

Banks do lead to mistakes and bank

failures I think that's a great argument

basically puts the blame where it

belongs right on the banks

take a look at some of the other things

he says he uh does talk about streaming

I think this is a fantastic lesson as

well when he talks about streaming he

talks about streaming is basically being

a very low pricing power business he

doesn't use the words pricing power but

he talks about streaming being a quote

not really good business in other words

Becky quick responds and says you mean

it's for suckers and he kind of laughs

and says well it's just fundamentally it

isn't a good business and that's because

even though it attracts people the way

you attract more subscribers is by

lowering the price and that's the

opposite of pricing power right uh and

and he says look what they're offering

people is they're offering content for

peanuts do they really have the ability

to raise prices he says now so he gives

a lot of negatives for maybe a Disney or

a Netflix one of the reasons I haven't

been exposing myself to Disney stock is

because I feel like they're taking the

profitable business and they're putting

all that money into the unprofitable

business of streaming kind of like with

Facebook and look I know Facebook stock

has done fantastically over the past few

months from the bottom obviously I mean

if you time anything at the bottom the

stock will have done fantastically but I

hate that they're taking a very

profitable ad business and dumping all

that money into the metaverse which I

don't believe in in terms of the future

I actually think that augmented reality

will be substantially uh more profitable

and will be substantially closer to our

near-term reality than virtual reality

uh augmented is think about kind of like

wearing glasses and then maybe having

like your Twitter feed off to the your

peripheral vision or something just as

an example uh that that's more of just

my production though uh not something

that we're about to talk about but I do

think it's very interesting how he

regularly when it comes to analyzing

businesses talks about pricing what is

their ability to get somebody to part

with their cash and think about the

businesses that he pays that that he

owns I mean some of the biggest

businesses apple right Coca-Cola Sees

Candy these aren't discount businesses

by any means none of them are businesses

where people go to them because they're

the cheapest consider a company that uh

Warren Buffett holds called netch Jets

it's a charter airline company it is a

company that that is a premium service

there are cheaper services for example

like wheels up uh private air Charters

however netchats which is a non-public

company it's owned by Berkshire Hathaway

in whole uh it's a quality product and

it's solely focused on making their

customers happy now I've used multiple

different Charter services and I'll tell

you netjets is the best by far it's the

best it's the highest quality they're

the ones that make sure you have catered

food when you come the other companies

don't do that they have the nicest

planes they have the nicest service they

seem to have the best Pilots

Warren Buffett focuses on quality uh I

mean consider catch-up uh it's such a

simple company but why invest in ketchup

in the eyes of Warren Buffett people are

willing to pay for it no matter what the

price is such a simple business look at

his 20.4 stake in American Express

American Express caters to the higher

income customer the premium brand

so I think it's fascinating I think he's

got some really great arguments in terms

of businesses that he holds some of the

companies that he invests in I'm not

biggest fan of I'm not the biggest fan

of investing uh directly in companies uh

like uh most specifically at this point

companies like Bank of America but that

may be because when I got started in the

real estate business I had terrible

experiences with Bank of America uh

especially after their Countrywide

takeover but hey who knows maybe things

have gotten better uh he's also got

smaller exposure to some of the Staples

like Procter and Gamble Johnson and

Johnson uh UPS these are businesses I'm

not terribly excited about myself and of

course he's made a lot of money

investing in uh some companies like

Occidental Petroleum or Chevron a lot of

these companies the way he's describing

them is having potentially pricing power

not only because the fact that we need

oil but also uh that they're moving into

these carbon Tire capture Technologies

and green technologies I will say though

one of the problems with the carbon

technology or carbon capture

Technologies for example at Austin

Dental Royal is that they're massive

money losers if you look at the annual

10K report for Occidental Petroleum

massive money loser uh you you solely

lose money on carbon capture technology

and so I think it's sort of the

companies are doing that to try to

appear green to make Regulators a little

bit happier shareholders a little

happier so that way people have a

defense and eventually those

technologies will be good if these

companies have the money to make the

Investments and sort of make have losses

over there so maybe that makes sense but

uh in the more grand scheme of things

here I think Warren Buffett has has made

a fantastic argument this morning uh on

his

um CNBC interview that you want to focus

on where pricing power is and whether

that is a simple product again like

ketchup or Coca-Cola or does a premium

product like apple focus on pricing

power and ultimately you win and that is

something that he clearly said without

saying it right and I think the best

example was the his actual quote on

streaming which was his actual quote on

streaming I wrote it down right here

it isn't fundamentally a good business

you've got some people with Deep Pockets

who won't quit but what they're offering

people is for peanuts can they raise

prices eh that was sort of his

quote and I thought it was fantastic

because it reiterates so much of what we

talk about on the channel and again

anything I could do to compare myself to

Warren Buffett I I don't want to say

that I'm trying to Pat myself on the

back here I'm not at all I'm just saying

I think that is the right path to be

trending on anytime you could be on the

trend towards uh towards where Warren

Buffett goes I think that's uh that is a

great starting point so I'm very excited

about that so that gives me uh some

admit or that shares some opinion on

Warren Buffett let's next talk a little

bit about uh the fed

and let me see here what Wall Street has

to say about the Fed so standby force of

head

CBI fed bond market okay let's see here

American Aaron says quarterly profit

likely below estimates so we got a

little heads up there on American Air

that just came in

okay so the minutes are coming out today

as well the fomc minutes will be out in

about four hours the minutes are likely

to show uh this this price stability

mandate we're gonna these are gonna be

the first minutes coming into or coming

out of rather well hold on let me let me

check really quick let me see when was

the last meeting fonc meeting I think it

was the February 22nd

oh these minutes are gonna be good oh my

gosh let me give you a preview on this

hold on a second here meeting was the

22nd oh these minutes are gonna be

fantastic