Podcast Summary: Earn Your Leisure

Episode: Are Cheap Stocks All SCAMS?

Date: February 24, 2026
Hosts: Rashad Bilal & Troy Millings
Platform: iHeartPodcasts

Overview

This episode of Earn Your Leisure dives into a common investing question: Are cheap stocks (particularly those under $20) a good buy, or are they mostly traps and scams? The conversation centers around whether low-priced stocks are inherently greater opportunities for outsized returns, or if investors should instead focus elsewhere. The discussion also briefly touches on alternative holdings, like cryptocurrency (specifically XRP), and the best strategies for portfolio construction.

Key Discussion Points & Insights

1. The Myth of “Best Stocks Under $20”

[02:33–03:54]

• The perennial question surfaces: "What are the best stocks under $20?"
• Matt Rogers humorously shuts down the myth:
  • “You got 10 that would give you a great return? … None.” (Matt Rogers, 02:52)
  • He explains: after careful analysis, he couldn’t in good faith recommend any sub-$20 public equities. The idea that cheap stocks offer great, quick turnarounds is “the exception to the rule.”
• The rare outlier – Palantir’s run from $20–$150 – is acknowledged, but the hosts are adamant that this shouldn’t be seen as typical or repeatable.

2. Acquisition Targets vs. Value Investments

[04:00–05:54]

• While most cheap stocks may not have direct value for retail investors, Guest 2 suggests some low-priced stocks could be compelling acquisition targets:
  • Warner Brothers Discovery: “That’s under $20… it’s the acquisition target.” (Podcast Guest 2, 04:19)
  • Lyft: Discussed as a potential buyout, though restrictive because “they’re not going to sell to Uber.”
  • Snap: Its social media assets could appeal to a larger acquirer even if the company is underperforming stock-wise.
  • Ford: Mentioned as a legacy company with remaining value, especially given partnerships (like with Nvidia on autonomous luxury).
• Still, the conclusion is that even among these, strong cases are rare.

3. Concentration Over Diversification

[05:54–07:11]

• The hosts advocate for portfolio concentration:
  • “You only need four good ones… At some point you can replace the indexes and then just have concentration of four companies that you believe in.” (Matt Rogers, 06:05)
  • Over-diversifying with 14–16 stocks is discouraged: it’s hard to manage and no longer provides real index coverage or focus.
• Advice: Pick four to six companies you truly believe in, pour more capital into those positions, especially during downturns.

4. XRP & Crypto: Long-Term or Trap?

[07:11–08:39]

• The XRP (Ripple) coin conversation highlights the different perspectives on altcoins:
  • While Matt acknowledges he has a position in XRP, he's cautious:
    • Would he put $10,000 in it? "Yeah." (Matt Rogers, 07:26)
    • $100,000? “At what price?” – highlighting the need for careful entry and skepticism about market price buys.
• There’s playful debate about the value and history of XRP and Bitcoin, with a touch of conspiracy-flavored commentary:
  • “If you do have an asset like XRP or, you’re a micro sailor, you have to know who your enemies are – you have some big enemies that will thwart you for decades until they can take the asset class over.” (Matt Rogers, 08:40)
  • Matt hints at rumors and skepticism around Bitcoin’s origins: “The first iteration of it was from Langley… I say that every two weeks and I haven’t had a cease and desist yet.” (08:50)

Notable Quotes & Memorable Moments

• On cheap stocks:
  “None that I will put my money into. And I wish it was because I’m like, man, if this can go from 20 to 200, I look like an icon again."
  — Matt Rogers (03:06)

• On portfolio construction:
  “There’s usually four to six that drive 80% of the revenue… You only need four good ones. At some point you can replace the indexes and then just have concentration of four companies that you believe in.”
  — Matt Rogers (06:05–06:15)

• On crypto investing:
  “If you do have an asset like XRP… you have some big enemies that will thwart you for decades until they can take the asset class over.”
  — Matt Rogers (08:40)

• On Bitcoin origins:
  “The first iteration of it was from Langley… I say that every two weeks and I haven’t had a cease and desist yet.”
  — Matt Rogers (08:50)

Timestamps for Important Segments

• 00:00–02:33: Ads and sponsor messages (skipped)
• 02:33: Main segment begins: Cheap stocks under $20, panel discussion
• 03:54: “Palantir” and why it’s the exception
• 04:19–05:52: Acquisition target discussion: Warner Bros Discovery, Lyft, Snap, Ford
• 05:54–07:11: Portfolio construction: minimal concentration beats over-diversification
• 07:11–08:39: XRP/crypto debate: risk, long-term prospects, institutional control
• 08:39–09:16: Bitcoin & Satoshi skepticism, playful conspiracy notes

Conclusion

The overall tone of the episode is skeptical and realistic. The hosts challenge the get-rich-quick mindset often associated with buying “cheap” stocks and urge listeners to skip hype in favor of concentrated, well-researched investments. They warn that while there are rare outliers, most low-priced stocks are not sources of easy wealth—regardless of acquisition rumors or crypto hype.

If you're looking for the next Apple at $5, this episode makes it clear: “You only need four good ones." Quality and conviction matter far more than bargain hunting.