How SpaceX Is About to Break Markets

We break down the SpaceX IPO and what it means for liquidity, markets, and one of the largest wealth creation events in history.

Plus, we discuss the AI boom, rising geopolitical tensions, and what a new Fed chair could mean for rates and risk assets.

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Transcript

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From Wall Street to managing hundreds of millions in client money, Nick and I used our alphabetic tube of credentials to discuss the investing and tax strategies that actually work. Oh, and we played Division I college football together. So strapped in. This one hits hard. Let's go. Alrighty, folks. We are going to talk SpaceX, Warren Buffett, the war, and Kevin Warsh is just about to have his first meeting as the new Fed chair. And to do this, we're going to talk with Taylor, the CEO of Life Goal Investments, 10-year veteran on Wall Street, and somebody who constantly works with the top 1% of the 1%. Taylor, how are you doing, buddy? I'm doing great. We've got a lot of underlying dynamics playing out here. Market seems to be digesting everything incredibly well. Uh, let's go. Let's talk. SpaceX. You you you give it to me. Let's do it. Yeah. So I think I think SpaceX is going to be interesting because again, it uh it undoubtedly has a level of interest, frankly, that we may never have seen before. Never. At least never, never. Um, but that doesn't mean it's going to be a good investment. Nope. Right? I have uh I actually heard a very interesting analogy, credit where credit is due. This comes from Scott Galloway. This is not mine, but I'm stealing it. He says that SpaceX, while an amazing company standalone, is being cobbled together and is now like Snow White and the Seven Dwarfs. What does Scott Galloway mean by this? This is my opinion, but I'd love yours as well. Basically, SpaceX, the company, is Snow White, beautiful, gray, yada yada yada. But it has been cobbled together with XAI, which is just a money-burning machine, and other things that are uh less attractive, according to Scott Galloway. So I'm curious, does that analogy land? I know you got young kids and whatnot, but yeah, is SpaceX just sleeping beauty and the seven dwarves, or what's going on? I read I read SpaceX. I read Snow White to my daughter putting her to bed last night. So I'm very funny with that story. She's four. Um, yeah, it interesting take on it. And and he's not wrong. Um, and and you know, maybe Tesla ends up being a part of that party here very soon as well. That's obviously up for debate there. Um, but it's interesting. I you know, what I'm more interested in is not as much, hey, SpaceX centric, it's more of the impact on the on the broader markets. Yeah. That is, you know, it June 12th is going to be a day of of fireworks to the extent that we've never seen before. Um, what you have, and I think most people don't really understand the full dynamics of an IPO. So let's let's walk through that real quick. So on IPO day, you're going to see new issuance of SpaceX stock to the tune of about 75 billion. And let me be very clear on this. What I'm not saying is that Elon Musk, employees, private equity companies that own it are going to spill that, sell it into the market. No, this is creation of $75 billion worth of new shares. Yep. And so to put some context around that, that is three times larger than we have ever seen in an IPO in history. That is six months worth of net flows into the world's most popular ETF, which is VOO, all to be absorbed in the market in one day. What what is your take? I mean, it'll be that is undoubtedly a headwind for public stocks, all else being equal. Yeah, again, I think SpaceX is going to be such an interesting play. Because I mean, if we just want to talk the real talk, not only do we have SpaceX, but we got uh open AI and Anthropic right behind it. Yep. And I think I think it's the combination of all three that's gonna be the problem. I think the first one to go, and it does appear like that, will be SpaceX, will be relatively fine because I've seen numbers like we've got six trillion dollars in in you know money on the sidelines. So, you know, most of that won't go, but but and again, the Elon Musk factor, I think SpaceX is gonna be fine. I really do. I don't think it's a great investment. I think it's gonna be bid up to such an enormous level that it's it's not a great investment. But trust me, there will be people at the retail level that say I own SpaceX, even if they're losing money, they're just gonna they're gonna that's like it'll be like it's the new Bitcoin. SpaceX is the new Bitcoin. Yep, it's gonna be a mean stock, and and people are not gonna know what it does. And I saw one stat that like SpaceX does 20 billion or whatever, and Walmart does 280 billion or whatever it is, and the valuations are just gonna be cray cray. So, um, but that said, you know, I don't know if anthropic and uh open AI have a date yet, but I hear they're weeks away, and then that becomes a big problem. Yeah. And they're not alone, like the the IPO calendar is now building, right? So the excitement around this is building the broader IPO calendar. You brought up an interesting topic there of just retail trading and the fact that this could become the next hot dot or meme stock or whatever it is. This is also an interesting play and and such an Elon Musk move that they've dedicated roughly 30% of the shares to retail. So, by way of context, typically retail will get an allocation of 5% on the high end. Right. Now it's 30%. So what you're going and seeing now is when they file their S1, which is basically their prospectus, and that was two weeks ago now, which is when they come to market and say, hey, here's what our company's financials are, here's where the total adjustable market is, which by the way, they give a $28 trillion number, which is mind-blowing. But nonetheless, um, they bring all of that to market and then they they they kind of give the breakdown of where these shares are going to be allocated. So typically what you see is the lead investment banks, which the lead investment banks on this are Goldman, Morgan, and I'm forgetting the third. They'll get a really significant chunk of that and they'll sell it down to their underlying clientele. And then it'll go to people like Schwab, but also now we've got Robin Hood and these underlying. So it's not gonna be just incumbent upon the normal markets to absorb this underlying new capital that's being created, this new entity that's gonna be basically a sponge taking liquidity out of the market. Um, it's also gonna be incumbent upon retail's ability to digest it. Now, I I get from your interpretation, and I don't think you're wrong, that retail will happily digest. Oh, no question. No question. But it it goes further too. So that's the IPO date of June 12th. But what happens when companies IPO is there are lockout periods. And so the insiders that hold it ahead of time in the private equity market, they experience lockouts. And so it might be a month, it might be three months, it might be six months, it might be 12 months. Now, Elon has structured this actually, I I think very, very well. I agree with that. I think he's agreed. Yes, I agree. Go ahead. So so part of it becomes available after they the after they report Q2 earnings, only if the Q2 earnings come in above forecasts, right? And so basically what they're doing there is he's saying, Hey, I'm not gonna allow insiders to trade this into a downward vacuum. If we don't report earnings at where the market thought and the stock starts to sell off, I'm not gonna let people dump their shares into that vortex. But my point of bringing all this up is in time, you're going to see selling at different incremental rates over these staggered lockout periods for these insiders. You think about private equity, like private equity, their mandate is private equity. It's not public equity, which SpaceX is going to be. So they are going to do their best to get out of these shares as quickly as they can. And so that's another headwind. You think about these employees. A lot of these employees have had 50% of their paycheck be paid in SpaceX stocks. So, like they're really rich on a computer screen, right? But they haven't felt rich in their pocket. They're going to want to get out of this and liquidate some of it and become rich on paper and go out and buy a Lamborghini. So you've got all these sellers that you know are going to come, and the market's now got this new massive entity selling things in the market that didn't exist before. The capital's got to come from somewhere. So that's that's persistent headwind, right? And then again, you throw anthropic and open A on the back of it. But you think about it from the other perspective, too, of like, what's this mean for private equity? Private equity is about to get the biggest paycheck it's ever gotten. And private equity buys private equity. So, what's that do to valuations of companies that are younger in their life cycle in the pri in the private equity pipeline? So it creates this headwind for public equity and a significant tailwind for the much smaller private equity market. Yeah, this is gonna be one of the biggest liquidity events we've ever seen. And that is both for the employees and private equity. I heard, and again, you're you're the guy that's in this, that some early investors, if they were to dropped 50 grand, they're gonna turn that into something like 18 million dollars or some crazy ass number. Is that true? Yeah, yeah. Those numbers that math maths. There's been 11 billion dollars of checks written for equity in SpaceX. It's gonna come to market at two, you know, whatever. We don't know exactly, but call it two trillion trillion. Yeah, that's 180x multiple, right? And that's that's that's average. That's average. That's that's that's that's not early. That's not early, right? So it it's just absolutely bananas in the you know, wealth creation that a company, you know, like this can provide. And and granted, this will be the biggest ever, right? But anthropic is anthropic's right behind it, and there is insatiable demand for anthropic as well. Anthropic, this is nuts. And I know you've seen this. Anthropic and q1 80x their revenue. Revenue. That's not that's not an 80% right. That's not an 80% increase, that's an 8,000% increase in their revenue. That's nuts. That's just that's that's to say that's unprecedented is a is an understatement and a half. It's it's really interesting. So the there's like this paradigm playing out in in in AI right now where every bit of compute that's being built is being used, like tokens are are being used, right? And so so it's it comes this question of like, hey, do we just need to continue to build more data centers and more data centers and more data centers? Or the other side of it is like playing devil's advocate is Uber has said no more tokens, no moss, no moss. We can't justify the spend, and so therefore, we're not going to use any more compute on this. Yep. And then I think the the kind of the the tertiary thing is whatever we've seen in the past technology-wise, is we get more efficient, right? And so, so maybe there is you know deep seeks out there that can, you know, maybe they created chat GPT with six million dollars, maybe they didn't, like we debated that year a year ago, and and probably not, but nonetheless, like, are we gonna get a lot more efficient at this? And and and how does that go to the digestion digestion of all this infrastructure build-out? It it's totally up for debate. Yeah, I you know, I think you know, you brought up Uber, but I'm sure you heard this as well. I think the most insane thing I've heard around AI in the last seven days is there was a large public company who burned half a billion dollars because they forgot to meter the usage of AI. I didn't hear that. That's dude, half a billion. Who is it, or didn't they divulge? They haven't divulged yet because I'm sure that would be quite the embarrassment. But it's gotta be a big company. I mean, there's probably what 50 or less companies that could, you know, stroke that check. Yeah, so um, you know, the other thing is I I don't think anthropic is the uh the uh good company that they pretend to be. I was listening, I think it was the all-in podcast this weekend, and anthropic seems to have this godlike attitude, right? They're trying to birth a deity, and that is uh that's just not okay. I think this whole anthropic, you know, we do good things. I think it's a smokescreen. I think they're evil people. Well, the CEO comes out and and and just says the most blasphemous things that anyone ever said. You're like, What who is your PR person? This is a it's media training, you jackass. Between him and Altman, it's like, who are these morons, these nerds? Like, guys, you have to sell this to investors at the end of the day and have to sell it for a greater good of humanity at some point. And you guys are just openly doing the exact opposite. What are you doing? We're gonna whack 50% of the employees, you're not gonna have a job anymore, blah blah. Yeah, they just uh they don't get it. But I, you know, I the other thing I think we talked about the last time we spoke. I actually think the bigger threat to AI is China, and you brought up Deep Seek. I truly believe, and I've said it five or six times now, that China is executing you know what we call deal stumping and or uh steel dumping in the 80s. I think they have developed a model that is good enough, uh, that it's uh that is somewhere between 10 and 30x cheaper, and they're just gonna keep dumping into the US, and then eventually all of these crazy stories about Uber and half a billion, and people are gonna stop using the expensive stuff and they're gonna use good enough, and that is just gonna burn billions of dollars, if not hundreds of billions of dollars, in capital because you know, these data centers, if the if the technology is not being used, the data centers are worthless, it's gonna be interesting. Let's transition to the war, right? We just had an update in the last 10 minutes that Iran has stopped negotiating, they're gonna block the Strait of her moves. We have the Exxon COO or somebody talking about $150, $160 oil. Um, you know, where do we go from here? Who the hell knows? And who the hell do you trust? Right? Do you trust our commander in chief? Like, I don't know that you can fully take what he says uh as 100% truth, and that's that's not here nor there. Stop it. You can't take what he says as 100% truth. I was being a little bit more uh politically inclined there. Come on. Um, like you know, in his defense, and I'm I'm not a MAGA hat wearer by any stretch of the imagination, but maybe we don't want him always telling the idea, right? Um, but the other side of it is like who are we dealing with over there? Like in reality, who the hell knows who we're dealing with on the other side? Who the hell knows who's calling the shots? Like, we took out the supreme leader, they put another one in place. Is that supreme leader actually the one calling the shots, or did they put him on the beheading throne, putting him in that position? And it's actually you know some underlings that are making the decisions. I saw a really interesting take on it the other day that says that Iran could actually be using their negotiation, whatever, to their own financial benefit, where they let some good news come out, they let some good news come out, they let some good news come out, they short the market, and then they say, by the way, we're blocking the Strait of Hermuz, you're all effed. And thank you. We just made a boatload of money because our economy right now is shuttered. We don't have any income coming from any direction because we're completely oil dependent, nothing's passing through. So we got to get creative here, and it's pretty easy to come out with a bombastic headline. We know the market's gonna sell off on it. We'll short it, bang. Yeah, yeah. No, I that absolutely could be. I think that I think the biggest thing when I look at the war today and and uh is I don't think Trump has a way out. I really do think Trump thought this would be a version of Venezuela. You know, maybe it's not a three-hour operation, but I really do think he thought it would be a three-week operation. We're now into three months or whatever it's been. And um yeah, I I've I've been pretty pretty clear. I think this this is not over, it's gonna get worse before it gets better. And my fear is we have $200 oil sometime this year because of this. Well, my fear from a market participant standpoint is that everybody on the planet disagrees with you. Uh and what I mean by that is every market participant on the planet absolutely. Yeah, I listen to that. I'm used to that, Taylor. I'm used to that. Yeah, yeah. Well, I know, I know, and that's what we love about you is you're not you're not afraid to stick your neck out there. But I listened to nine podcasts this weekend. I was running around the house doing chores, etc., whatever. And every single market commentary podcast that I listen to start out with, well, this is under the presumption that we come to a deal relatively quickly. And it's that that's a scary thought when everyone's on that side of the trade, because that's what's priced in the stocks right now. True, very true. Yeah. So I I I I tend to agree. So now I go here. I tend to disagree with you that there will be an off-ramp that just literally the Republicans are gonna get blown out of the midterms. Absolutely. Oh, yeah. If we if this doesn't get shut, absolutely, but I think at some point Trump's gonna say, fuck it, I'm still the president. I'm I've got two more years to run and I'm gonna do what I do. Because I think he's trapped. There's no good exit. There's just no good exit. And oh, by the way, let's forget this is a three-party battle. Just because we want it to stop doesn't mean Iran wants it to stop, doesn't mean Israel wants it to stop. You just drop you just drop one little missile in the wrong place and kill enough people. This thing gets freaking nasty. Facts. You see an you see an oil tanker take a missile right now, and we are all effed. Yeah, all effed. I I will I will tell you this the one thing Trump has done that I don't think is by coincidence, that I think is very smart, and let me be clear, not everything Trump does is smart. Um is he's he has not stated a goal. True. He hasn't he has not stated a goal. So at any point he could back out and say, look, we decimated their economy. Oh, yeah, we decimated their ability. That's it. That's it. Take his victory lap. Like what I what I think the intent was is to get them to demilitarize their nuclear capabilities. Like, I think that that was absolutely the intent, but you have not seen that uh publicly said, like, hey, we are in there to do this primary task, this is the sole task that we are there to accomplish. Because right now, we certainly cannot say that they are not enriching uranium or are disposing of their enriched uranium. And I think that that is wise uh for Trump to not have said that because in the event that things do get nasty and we back out, we don't back out with our tail between our legs. Yeah. Yeah, the wars are messy, right? They're easy to start, hard to finish. Uh, I do sit on the side that this gets worse before it gets better. And boy, have I never hoped to be wrong in my life more than this. Me too. But um, that doesn't change my opinion. So let's switch up to Kevin Walsh. Kevin Warsh is gonna have his first Fed meeting uh later this month. Uh, I actually think uh if you look at Kevin Walsh's 90-day or six-month plan, I think he's gonna try to do four things. So I'm gonna give you the four things. Let me know what you think of these, reorder them, whatever you want. Uh, but these are the four things I think he's gonna try to do. Number one is I think he's gonna change the communication. I think he believes that the Fed talks too much. I think he was raised in the Greenspan era where only the chair talks and everybody else sits silent in the back of the room. Yes, there's occasional, you know, college presentations and you know, all of that, but stop talking to the media, right? Only the chair will do that. So I think that's one thing that he will bring an institute. Also, he will uh get rid of the dot plot because I don't think he likes the forward guidance and the dance of that. So I think that's number one. Number two, I think he's gonna try to change not really the definition of inflation, but the definition of inflation for the average consumer. What do I mean by that? For the last 30 years, we have been told ag nauseum that the favorite Fed metric is PCE core, right? PCE core, PCE core, PCE core. And I think Kevin Warsh is gonna come in and try to play magic and flush PCE core down the drain. He's gonna pull out something called mean trimmed mean inflation, something produced by the Dallas Fed. Now, why is that? Well, I think he honestly believes it's a better metric. I think he believes ignoring food and energy does a disservice to the American public. But it's not lost on me that PCE quarterday is 3-3 and trimmed mean inflation is two three. Right. Yeah, I mean, just magically change the definition. You can almost declare victory. Yep. Right? So I think he's gonna do that. Number three, I think he's gonna shrink the balance sheet. I think this is gonna be a surprise to a lot of market participants. Uh, I think he will never buy mortgage-backed securities again. Right. I think he's gonna take the duration and actually shorten it, which is frightening uh for a guy, you know, who understands the math. And then finally, he pinky swore to Donald Trump to cut rates, and he's gonna do his best to do that. So I think those are the four things Kevin Warsh does in 90 days to six months. What do you think? What I miss, what I get wrong, what do you think? Well, I can't add anything on because my brain can only handle four things, which I'm gonna split into five things. So I'll just comment on what you said there. So I think you are 100% correct that the communication point one from the Fed presence all over the United States um needs to stop. And I think he will stop it. I think it's I I think it's crazy. I think that they set themselves up for future jobs, book tours, et cetera, on what their commentary is, and they don't control their commentary well. And what the market will do is parse every last word of what they say. I hope, on the same token, that they don't do away with the dot plot. Yeah. I think the dot plots forces folks to cast their opinion. And I think the market does take real direction on that. And I think the market should take real direction out of that. I don't want the communication because they're terrible at it. They say shit they shouldn't say. And everything gets scrambled by the news, and they pull out one line segment that is going to create a headline and the market trades off of it. So point one, correct. Point two, I think you're right on him changing, trying to change his best, the way that we define inflation and what we're tracking most closely. Um, it'll be interesting just to see how he integrates with the underlying current chair of Jerome Powell, and then just the broader members. Yeah. Um, because they're used to pushing the PCE topic. And the ability to change that title and change the importance and put a primary on something else will be interesting. Um, and it's it's so convenient to your point that the timing of that is one looks really good and one doesn't. Exactly. Uh shrink the balance sheet. I I I definitely agree with that. That is, he's a hawk when it comes to that. So he's a hawk and a dove. He's a hawk and a dove. He thinks that balance sheet um tightening needs to happen. And so his ability to control that is not buying treasuries in the open market to the extent that we are, not buying mortgage-backed securities. I, you know, market manipulation is tough because at the end of the day, like, that's what the Fed does when they begin purchasing. And I think broadly speaking, let markets trade where markets trade. I I do have this nagging, like, maybe this is my uh very leftward leaning or whatever thought in my head that, like, man, wouldn't it be nice for them to have bought mortgage backed securities a year ago, two years ago, and try to pin down rates a little bit for that first-time home buyer? Sure. Um, and and maybe not be buying some of the other things there that they're buying in the market. And and by the way, like now I'm playing Monday morning quarterback, they bought mortgage backed securities for far too long. Oh, amen. And too much, too much and too long. Yes, and that was just stupidity, is all it was, because you had a housing market that was absolutely ripping ripping, and then you're adding to it by suppressing as best as the Fed could, even though that wasn't what they were saying, mortgage rates. It was yeah, that was stupidity. But I I do like it when when um you know, potentially, as I know it's manipulating the market, and I'm a free market guy. I do like the thought of hey, let's try to pin down mortgage rates at times when they get out of control. So um, I guess I agree or disagree there. And then to your point, number four, he's gonna try to cut rates, yes, but he has a very, very, very tall task on his hands, right? Yeah, he's only one vote. He's only one vote, he's only one vote, right? Yeah, right now there's a zero percent chance this year. Zero, zero, forty, forty percent chance of a rate hike this year. Oh, by the way, which is the guy that told you rate hike was coming first? Right here, this guy, and I'll tell you what. So, so I heard uh a buddy of mine, his name is Darius Dale. Um, he's a rock star. So literally played offensive tackle at either Yale or Princeton. Um, dude grew up in a van, homeless. Um, Princeton grad. He is one of the absolute sharpest market commentators that there are. He runs a firm called 42 macro, um, and he puts out macro commentary on a day-to-day basis. He is the best I've ever seen at breaking down really complex topics into simple bites. Um, and he is just a rock star. So check out Jared Darius. Um, and I haven't spoken with in a while, so he has no idea that I'm saying this, but he's incredible. But he's he made a comment the other day, and I thought he was, you know, just spot on. He's like, whether we're in a bubble right now or not in a bubble, he said the market will bubble based on one thing, definitively. If Kevin Walsh comes in and says we are going to stare through persistent inflationary pressures, which is what he's gonna have to do, is he's like, the market will undoubtedly bubble. Yeah, rip. Yeah. Yeah. So that'll it'll be interesting to say that, but he was the one that put it so so bluntly that that is a very binary outcome. And to be clear, that is a complete unknown. No one knows how he's gonna take that. And that's why everyone says the market tests a Fed share, the market tests a new Fed share. Like that is how it's going to be tested right there. All right. Well, let's close with our fourth and final topic. We've got Warren Buffett. There's actually two things we should talk about. One, the Warren Buffett indicator has never been this high before. From memory, it's about 260%. Uh again, market cap uh divided by US GDP. But we also have again, it may not be Warren Buffett, maybe it's Grave Abel, but they just dropped 6.8 billion buying a home builder. So uh feel free to talk about either one or both of those. Yeah. So on the Buffett indicator, it's at nosebleed level. Let's not call it anything different than what it is. It's really been higher. Never been higher. You're gonna call that nosebleed? Nosebleed or smell it, Taylor. My my dot, my other daughter, not the one that I read Snow White to woke up in the middle of the night, comes in, she's like, My nose is bleeding. She's got nosebleed issues. I'm like, middle of the night. I'm like, uh, she's gushing blood. I'm like, this is awesome. Um, but anyway, um it sounds scary when you just say this is hey, at all-time highs, never been higher. I think the the the realization of like the market right now is that, and and whether this lasts or not is up for debate, is that AI is is ruling the planet. Oh, it's everything. And so, where is the money flowing into? It's flowing in the United States, and companies are taking it, and that's driving that buffet indicator higher and higher and higher. At the same time, they're also growing earnings at absolute breakneck pace. Breakneck pace. Not only that, they're growing profitability at breakneck pace right now. So it's it's you know, you have earnings growth, you have profitability growth, they're not skimming and doing things like that. You're having ballooning of both those underlying numbers. We are the world's AI, we are leaps and bounds ahead of everybody else. And I know that you, you know, your comment earlier on on China potentially coming into the fold and and producing cheaper options is certainly real. Yeah, well, let's be clear cheaper and good enough. I'm not saying they're anywhere close to where we are technology, never said that. But again, at some of the at the end of the day, cheap enough and good enough sometimes wins. Yeah, yeah. If you can, you know, take my email that's written poorly and make it sound good. Um, you know, like that's the use case of a lot of people for what for what we're using here. Um, so so I I I I I I completely agree with that. But like it and now you see, um, but I I guess my point of this is like we are kind of years and years ahead of most people. We have the talent here, um, more so than anywhere else on the planet. And like SoftBank now uh just this morning announces a five billion dollar yeah, they also say it's gonna be 50x bigger than dot com. Okay, yeah, yeah. So there you go. They're gonna start to build out okay. So oh, we so you're saying the the AI build out will be 50x. Yep, that uh he said this morning. Mo Mohatasan or whatever his name is. Yeah, and he also announced a a big investment in France to build out their AI, which I thought was interesting. As as of all places, France is the place that they have chosen, um, which is odd to me. But nonetheless, so we are trying to uh you know create some some global when I say we the globe in general is trying to create some some competition globally. Um, but right now you describe why the Buffett indicator is so high. It's it's because of AI, and at least at this current juncture, it's not to say it can't change going forward because it absolutely can snap a finger. But right now, I think it's actually relatively justified. Whether that's a say going forward, it can continue to justify itself. That is totally up for debate. Yeah, I think the biggest thing about the Warren Buffett indicator, if you really study this like both of us have, it's not a market timing indicator. It's never been a market timing indicator. It's a it's a it's an evaluation of where we are, kind of market sentiment to to the actual economy. So, yeah, this is just because it's at the record high doesn't mean in fact, it will probably go much higher. Yeah, but at some point I mean, you look at you look at earnings, right? And price of earnings multiple in a lot of areas in the market this year, you've actually seen contraction. Like NVIDIA stock cannot get out of its own way, yet it's 2xing its revenue or fork or forecasting, you know, 80% growth or whatever. So, what you're getting there is just multiple compression, which makes it a more palatable investment than it had been two years ago when it was scorching further north and no one could actually catch up to it, and it was trading at a multiple that was nosebleed levels to use that continued analogy. Now it's now it's not anymore. And so that it's just interesting to see that, like you know, and and it shouldn't. It shouldn't. But you can, you know, if if NVIDIA traded the multiple it traded two years ago, it'd be an 11 trillion dollar company or something crazy like that. It it'd control the world from a from a capital standpoint. Yeah. Well, let's uh let's close this out again. Uh something happened over the weekend is Taylor Marison, Taylor Morrison is joining the Buffett family, uh, you know, Berkshire Hathaway. 6.8 billion dollars certainly sounds like a lot of cash, but in reality, it's less than two percent of the horde of treasuries that Berkshire Hathaway has. Any thoughts on this? I know it just hit the wire. Maybe you don't have an opinion, but uh what say you about this acquisition? I yeah, I I think that to your point, it's it's pennies on the dollar, but it's it's it's Buffett or Abel doing what Buffett or Abel do, and that's buying depressed assets. You know, home builders have been an unloved area because the housing market's frozen. You got inflationary pressures driving labor costs higher, you've got them driving input costs higher, you've got high interest rates, high mortgage rates. Um, but their bet is that you know, some of that will normalize. And their bet is also the fact that we've underbuilt now, and that underbuilt has been persistent for a 15-year period of time. Yeah. Well, this is always a lot of fun. I love hitting these hot topics with you. Where can people find you? Yeah, find us on Instagram, on TikTok, at LifeGoal Investments daily 60 second videos. Folks, again, I say this all the time, but check him out on Instagram. I have no idea how he gets 10 minutes of value in 60 seconds, but he routinely does it. So check him out, subscribe, send him a note, say hi from one rental at a time. I would greatly appreciate it. Take care. Have a good week. You're the man, Michael. Thank you. Quick ask: if you're enjoying the show, hit the follow and drop a rating. It helps more folks find our podcast. Thanks so much. The information discussed in this video is for educational purposes only and should not be considered investment, tax, or financial advice. Investing involves risk, including possible loss of principal. 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