Capitalist Investor

In this week's illuminating episode of the Capitalist Investor titled "Taking Emotions Out of Investing," hosts Tony and Derek dove deep into the complexities of emotional investing and its pitfalls. The conversation was rich with insights and practical advice for investors looking to refine their strategies and optimize their financial outcomes. Here are the five hot topics that stood out in their discussion:
1. The High Cost of Emotional Investing:
Tony started the episode by illuminating the costly mistakes that can arise from emotional investing. Citing industry studies, particularly from JP Morgan, he noted that the average investor typically underperforms the stock market by 3-4% annually. This segment set the stage for a deeper exploration into behavioral finance and the detrimental impact of letting emotions drive investment decisions.
2. Timing the Market vs. Time in the Market:
A significant portion of the episode was dedicated to the common trap of trying to time the market. Tony pointed out that attempting to anticipate market moves can be incredibly harmful. He shared a compelling statistic noting that missing just the five best days in the market over 30 years could lead to a 2% decrease in annualized returns. This effectively illustrated the risks associated with exiting the market during downturns only to miss out on substantial rebounds.
3. Strategic Financial Planning:
Moving the conversation from theory to action, Tony emphasized the importance of having a solid financial plan in place. He argued that a well-crafted plan isn't just about wealth accumulation but about managing risk and ensuring long-term financial security. According to Tony, a good financial plan provides a "blueprint" that helps individuals navigate through volatility without succumbing to impulsive decisions.
4. Behavioral Finance Pitfalls:
Derek chipped in, discussing how many investment losses are not necessarily due to bad stock picks but are often attributable to poor timing decisions influenced by behavioral biases. The hosts discussed how the fear and greed cycle affects investor behavior, leading to common mistakes like selling in a panic or getting overly aggressive after a market dip.
5. The Role of a Financial Advisor:
The discussion also covered the critical role of financial advisors in helping clients manage their emotions when it comes to investments. Tony detailed his approach to client interactions, offering multiple pathways and emphasizing the importance of sticking to a plan tailored to individual risk tolerance and retirement goals.
This episode of the Capitalist Investor not only highlighted common investing traps but also provided listeners with valuable strategies to remain disciplined and focused on their long-term financial goals. By understanding the importance of staying invested and adhering to a well-thought-out financial plan, investors can significantly improve their chances of achieving investment success, irrespective of market volatility.

Will Microsoft soon take the throne from Apple? We delve into the perceived lack of innovation from Apple and the escalating investments from Meta in the AR and VR industry. And, what's this about Vuzix joining the AR glasses realm?
As always, we make sure to cover where the best deals are for Black Friday and, surprise surprise, they're not in tech! From pre-packaged Thanksgiving dinners to unpredictable furniture sales, we leave no stone unturned. In the world of stocks, we're focusing our sights on up-and-comers in the EV market, while keeping our eyes peeled for traditional car stocks, a hot topic for our hosts.
In the spirit of the season, we dish on our favorite Thanksgiving foods and introduce you to the mythical beet sandwich. Will this be the year a $10 Thanksgiving feast goes viral on TikTok? To wrap up, we delve into a sports update and share our current stock picks. Buckle up and let's get started; you don't want to miss this episode of Capitalist Investor."
War for the Tech Giants:
Microsoft and Apple are locked in a battle for world dominance, with Microsoft on its way to overtake its traditional rival. While Apple faces criticism over a perceived lack of innovation, particularly in virtual reality, a wildcard enters the fray. Meta has built a considerable investment footprint in AR and VR technology. The hosts also spotlight Vuzix, a stock specializing in augmented reality glasses and seen as a potential acquisition candidate.
The Illusion of Black Friday and Cyber Monday Discounts:
Once steeped in both anticipation and buyer's remorse, Black Friday and Cyber Monday could potentially lose their luster this year. According to the hosts, packaged goods and appliances might see the biggest price drops, while tech and furniture prices could stagnate. They also discuss how consumer attitudes have shifted, with less confrontation over mispriced items. This trend could affect the sales of big box stores dealing with compressed margins and a reduced sales forecast.
The Unhealthy Reality of Processed Foods:
Thanksgiving brought about a wave of patrons looking for cheap meal options, and the hosts sounded the alarm over heavily processed and unhealthy options. They weigh in on the health implications based on their own experiences with fast food and condemn the false economy and health risks of rock bottom prices when it comes to what we put on our plates.
The Rise of the EV Market:
Amid discussions about growth and green initiatives, electric vehicles (EVs) have piqued the hosts' interest. They cover stock movements from earlier in the year, interest rate hikes affecting businesses, and the current market valuation. The hosts show particular interest in a company with significant potential in the EV space, setting them up as potential winners in the EV market.
OpenAI under the microscope:
The hosts dive into the dismissal of OpenAI's CEO and what that may mean for Microsoft. Speculation arises over how this could affect Microsoft's strategic plans and whether they may incorporate OpenAI's technology into their own products. Similarly, Elon Musk's involvement with OpenAI comes under scrutiny, with speculation mounting about his intentions and any potential developments.

Welcome to the Capitalist Investor podcast, where your hosts Derek, Tony, and Luke navigate the intriguing world of finance and investments through the lens of the everyday capitalist. Our trio starts off by touching upon the chilly Cleveland weather and travel disruptions, before quickly transitioning into a robust debate on the geopolitical chessboard with President Biden's stance on Taiwan and the recent elections there. Amidst these discussions, they delve into the potential economic tremors a US-China conflict might send through global markets, particularly focusing on the technologically crucial semiconductor industry.
The Geopolitical Powder Keg: Taiwan's Elections and US-China Relations

Our hosts didn't shy away from the frosty topic matching Cleveland's own cold snap—the heated debate about President Biden's stance on Taiwan following its recent elections. Derek, Tony, and Luke explored the delicate dance between supporting democracy and avoiding an escalation with China. They pondered the potential economic fallout of further tension, with an eye on the global supply chain's frailties, particularly concerning the microchips essential to technology sectors worldwide.

Cable Cutting: The Economic Shift in Home Entertainment

In a personal anecdote, Luke shared his parents' consideration of ditching traditional cable in favor of YouTube TV's cost-effectiveness. This move mirrors a broader trend in consumer behavior, as households pivot to streaming services like Hulu Live, induced by the sting of rising cable prices. Derek and Luke analyzed the budgetary implications and generational preferences, including the priceless need for channels like Nickelodeon for Luke’s family.

Debt Dynamics: Generational Views and Personal Finance

The conversation took a sobering turn towards debt—its influence on younger generations and the overarching attitude towards borrowing. The hosts drew from personal insights and broader market observations to trace patterns in financial decision-making, spending, and the staggering instance of Robert Kiyosaki’s controlled leverage. This discussion underscored the mantra of the podcast—weighing risk and grasping opportunity in fiscal matters.

Tech Wars: AMD vs. Nvidia in the Evolving Chip Market

Luke brought to light a critical investor’s dilemma: the contrasting paths of AMD and Nvidia within the investment portfolio. While Nvidia has experienced a valuable surge, it prompted a strategic 'trimming' from the portfolios, whereas AMD's positions have been bolstered. This segment proved to be a masterclass in adaptability and foresight, two essential traits to surviving the volatile tech market.

The EV Conundrum: Electric Vehicles in Cold Climates and Global Markets

Lastly, the crew didn't miss the chance to discuss the chilly implications of electric vehicles in less-than-ideal conditions, mirroring the recent weather woes. The limitations of EVs in the cold led to considerations of hybrid alternatives and the evolution of automobile technology. Moreover, with EV price cuts across China and Europe, they examined the effects these could have on the competitive landscape of the US market, and even touched on industry titans like Tesla and the ambitious visions of leaders like Elon Musk.

Our hosts are always game for a dinner plan, promising a deeper dive into these topics in future episodes. So tighten your seatbelts as Derek, Tony, and Luke serve up yet another insightful blend of economic trends, personal finance tips, and a sprinkling of everyday wisdom — all while reminding listeners to consult with a professional for tailored advice. Let's talk money, markets, and what it means to be a true capitalist investor.

Mark “The Iceman” Tepper is joined this week by both Derek and Luke for a very special show! The guys discuss the implications of the current proposal for the IRS to be able to look at your bank account records for any account with $10,000 worth of transactions and any transaction above $600. Will this lead to more people moving money to Crypto? The big question you need to ask yourself, is why is the government trying to look into your bank account? Data and privacy concerns are always front and center in today’s world. Should the Government be forced to produce long term financial plans for the country that don’t change every election season? Will the US remain the #1 superpower in the world? Has Mark changed his nickname again? Has big brother become too big? All of this and more, next!
Outline of this Episode

• [2:10] Biden's IRS proposal and privacy.
• [4:11] What's the deal with the Billionaire Tax and the ever-changing narrative?
• [7:35] Can Crypto and Bitcoin provide privacy?
• [10:35] Is the IRS getting "stronger" and digging through people's data?
• [23:30] Is there something to be learned from China's Hundred-Year Marathon?
• [27:45] Finances & Spending: It doesn't matter for our Goverment, but it matters for our households.

Connect with Derek Gabrielsen

• Twitter: @DerekGabrielsen
• Follow Derek on LinkedIn
• Send Derek a message here
• Check out Derek’s YouTube channel!

Connect With Mark Tepper

• Twitter: @MarkTepperSWP
• Follow Mark on LinkedIn
• Send Mark a message here
• The SWP Connect YouTube Channel

Connect with Luke Lloyd

• Twitter: @Lloydboyluke
• Follow Luke on LinkedIn
• Send Luke a message here

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Football is BACK! At least for now, the NFL season is kicking off, 6,000 fans are allowed in the Browns Stadium—and we couldn’t be more excited. So Derek and I thought this would be the perfect time to talk about the rise of sports betting. In this episode of The Capitalist Investor, we share some pertinent stats, talk about the expected growth of the industry, and share how YOU can take advantage of the uptick in sports betting with stocks. Do not miss this one!

Outline of This Episode

• [0:19] It’s finally September: Football is back!
• [1:45] The different ways to bet on sports
• [4:31] The sports betting industry is expected to 10x
• [7:48] Statistics by the American Gaming Association
• [10:41] A conversation about fantasy football
• [12:30] The first way to play: DraftKings
• [19:02] Some numbers to leave you with

Resources & People Mentioned

• Visit Your495Plan.com for a $495 comprehensive financial plan!
• DraftKings
• Penn National Gaming Inc.
• American Gaming Association Statistics

Connect with Derek Gabrielsen

• Twitter: @DerekGabrielsen
• Follow Derek on LinkedIn
• Send Derek a message here
• Check out Derek’s YouTube channel!

Connect With Mark Tepper

• Twitter: @MarkTepperSWP
• Follow Mark on LinkedIn
• Send Mark a message here
• The SWP Connect YouTube Channel

Send your questions and comments to us at [email protected]

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