Transcript
A (0:00)
Welcome to Chit Chat Stocks, the podcast that helps you discover your next great investment. I am one of your hosts, Ryan Henderson, and I am joined, as always, by the one and only Brett Schaefer. This is our weekly Power Hour episode where we talk all things financial markets. We've got a few interesting topics for listeners today. We're talking value play versus value Trap. We've got a couple names that we've both written down that we think are value traps to avoid, so we'll talk about those. We have Jeff Bezos making a public appearance for the first time in quite a while with some wonderful quotes. And then we also have a couple earnings updates as well as well. We have to talk about it. AI infrastructure bubble slash boom. We aren't sure we're going to talk through it. And then Brett is buying a stock as well. He's going to talk through why he's buying that. But before we move on, if you're listening to this show for the first time, please go ahead and follow us on Spotify, Apple, or wherever you get your podcast so you never miss an episode. And if you enjoy these episodes, please, please, please go ahead and give us a review. It helps the show grow. Without further ado, Brett, where do you want to start?
B (1:12)
Well, Ryan, should we start AI infrastructure or should we not put you through that pain until halfway through the episode? I know you were probably so happy that Sam Altman decided to make billion tens of billions, well, even $100 billion partnerships that have what some may describe as insane gigawatt plans for these data centers. 20% of the United States current capacity actually in the deal with Nvidia. But I'm excited to talk about it. I think it's getting to the point where it's hard to argue it's not a bubble. But I think first, why don't we talk Bezos? He doesn't make many public appearances. We'll get a little, as the guys at Value After Hours say, vegetables out of the way first. And we'll try to learn something from an entrepreneur, a founder that went through the dot com bubble and came out clean on the other side.
A (2:14)
Yeah, let's eat our veggies, so to speak. And this actually is a good precursor to some of the bubble talk that we're going to discuss later in the episode. But Jeff Bezos, who I would say is probably on my Mount Rushmore of favorite CEOs of all time, he might be number one, gave a talk last week at the Italian Tech Week conference. I guess I had never heard of this and he rarely does public appearances since he's been retired and business related ones. I, I can't remember the last time we saw him kind of holding court, so to speak, but I thought it was honestly one of the best explanations of the current AI environment in a long time. And he gave some really thoughtful quotes and I'll go through some of those, but I'll just say I recommend to anyone eventually go listen to this. You can find it online on, on Google and YouTube and other places. But basically he was asked a couple questions around the, the same questions we ask ourselves, are we in an AI bubble? Are we in an AI infrastructure bubble? And he gave some really good quotes. So here's one he says, Benjamin Graham, the great investor, is famous for saying, in the short term the stock market is a voting machine, in the long term it's a weighing machine. And so as founders and entrepreneurs and business people, our job is to build a heavy company. We want to build a company that when it is weighed, it is a very heavy company. We do not want to focus on the stock price. So that will be misleading because it can be disconnected from the fundamentals. And when bubbles happen, that's one thing that happens. Sort of ironically, he says the quote, you want to build a heavy company. I think if you weighed the physical property and equipment of all the companies in the world, Amazon may literally be the heaviest, which I think is just kind of ironic.