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.