Bloomberg Audio Studios, podcasts, radio news. Single best idea is you need to read a book. I've read all this stuff in the zeitgeist recently, mostly from you know, young twenty year old whipper snappers telling me that everything's great. They haven't read a book in six years or six months. Get it to read a book cover to cover. Today's an act of God. Here's a book cover to cover to read. William Priest is Iconic out of epic. There
are three major books on cash flow. One of them is really really thick, really really accounting, really really necessary for pros. Forget about it. There's another book that's sort of midland size, four hundred and fifty five hundred pages, sort of kind of like thick, exceptional, really smart. Okay, we'll move on from that one. It's too long for
today's readers. Pre shareholder yield called free cash flow and shareholder yield is short, sweet to the point you'll agree you disagree, but it lets you explain how in two thousand and seven, Apple was five dollars a share and now Apple's two hundred and fifty dollars a share. Julian Emmanuel worked for Bill Priest now Julian Emmanuel has a privilege of working with Ed Haiman at Evercore ISI Julian Emmanuel on the market forward.
So our view is it actually isn't a trade. It is it is buy and hold secular theme. And what the interesting thing is is that if you look at the last year or two, we've had this bump in productivity that really hasn't been attributable to AI. And it's our view that when you think about twenty twenty five, the upside surprise is likely to come by how much and in what kind of creative ways Corporate America actually deploys AI.
You even going from sixty one hundred to sixty eight hundred, there are an SPX, but critically making clear that like Brian Belsk, get demo capital markets, it's the structural bull market, less so cyclical, volatile and all that. Just get on board, find out what you need. And then we spoke to Bill Priest of Epic, Julian Emmanuel's mentor on his book Free cash Flow and Shareholder Yield. But of course Bill Priest is not looking back twenty years to that classic. Bill Priest is looking forward.
The secret sauce, though, is the substitute of bits for atoms. So let's take information it comes to you in the form of bits. Atoms would be the desk in front of me, this microphone. We're made of atoms. If you run a company and you can substitute technology in the form of a bit for labor, which is a form of an atom, and hold your revenues constant, your margins
go up. And if you can substitute a bit think selling something over the internet as opposed to a physical store, and hold your revenues constant, your sales for dollar assets go up. So if you were to go back and just look at return on equity, if I can substitute technology for labor and physical assets and hold my revenue constant, my Ris, he goes through the roof, and thoseies you need.
Every company should be focusing on that gap. And how do I substitute technology for labor and physical assets?
Bill Priest buy the book free cash flow and shareholder yield? What twenty takeaway three seventeen years ago and it is still a right of passage. Thank you so much for your attention to the show. The commute across America, this build out, this mystery thing for me of YouTube, subscribe to Bloomberg podcasts, building each and every day, and of course on YouTube podcasts. This is single best idea