5 Stocks That Will Lead The AI Revolution

Welcome back everyone today on the Joseph Carlson Show. We all know that the markets have been going up higher and higher in 2025, with the biggest theme driving the market being artificial intelligence. Throughout this investment theme of AI, it's driven the market, The S&P 500 up 13% in 2025 alone. The QQQ is up a staggering 17%. And as investors, we're always looking for the most predictable

winners. In this episode, I'll be outlining 5 companies, 5 AI stocks that I believe will continue to win over for the next 5 years. Now of course we have a lot of news to get into. Speaking of AI, Open AI just announced another deal, another deal this time with Broadcom. The Co founder of the company, in similar fashion to previous deals just recently has gone on to CNBC and explained how big the story is for this company, how much demand they really have, how fast they need to

grow. We have Tom Lee making his appearance giving more optimism. He also is bullish on NVIDIA and he compares the valuation of NVIDIA to Walmart and Costco. This is a theme that we've seen over and over again. It's becoming more common for investors that are investing in AI disruptive tech companies to compare those valuations of the stalwarts like Costco and Walmart.

We'll be going over why this is a completely flawed comparison and we should stop making it. The former CEO of Intel believes that we are in an AI bubble, but Howard Marks, the guy that predicts bubbles, says that this frenzy isn't a bubble, at least yet. We'll be looking at that. And then we have our fail of the week, which in this case is an individual instructing people on X to risk it all that in your 20s, you need to take on maximum amount of risk.

And then very soon after he ends up losing all of his money, which is $3.4 million, We'll be taking a look at this predictable outcome of risking it all. So we have a lot to get to in this episode. And we kick things off with looking at five companies that will continue to lead in this AI market. The first one's, Google. This is a company that I believe just has it all. It has the low downside and high

up side. When I look at Google, of course, it's not the same deal today that it was earlier this

year. It's not lost on me that Google's up 32% in the past three months. So investors may look at this and say, Joseph, you've missed Google. It's up a lot this year, it's up 27%. Why would you invest in Google Now when you could have bought it a couple months ago? And while that's true, we don't always have all the money to deploy 3 months ago. In some cases, we're just

working our jobs. We're making new money, we have new paychecks, And so now we have time to deploy our capital and we need to look at the best options. When I do that, I look at Google as right now, one of the best options. I believe it's a top five options for investors to buy today.

Although the price and the valuation has expanded, it's still low and it's meaningfully lower than the intrinsic value of this company or one that possesses the qualities and diversification and earnings power of this company. Google today trades at a 23 Ford PE ratio. The thing that I always remind investors when looking at Google of why I like this stock still today so much is because of the

assets they own. Everyone's focused on Google Search, and I understand why that's a huge portion of the company, but Google Search is fine. Not only is it fine, but it continues to grow double digits. It continues to expand. You can also see that it's technologically just far more advanced. You can search anything and it's just as powerful as an open AI search. Google AI mode is incredibly strong. AI Overviews is incredibly fast

and useful. Google Search is better today than it's ever been before and it makes it so it has lower churn to competitors like Chachi PT. But even if we were to get rid of Google Search, we have Google Cloud. It's the second fastest growing cloud. It's growing incredibly fast and continues to compound. They're adding on more and more unicorns for companies that are about a billion dollar valuation that are still private. They're using Google Cloud because it's integrated with Gemini.

It's integrated with all the DeepMind products. You have subscriptions, which can't be understated from Google. Google's transition their company from primarily an ad company now to growing a substantial subscription business. They have the Google One subscription and they have YouTube Premium. YouTube Premium is one of the best value propositions of any subscription and these subscriptions alone are a $44 billion revenue segment.

Outside of the subscription, with YouTube Premium you also have YouTube, just the ad portion of it growing 12 to 13% per year. The revenue will likely be about double, maybe about 70% higher. In five years, YouTube will be likely worth a trillion dollars in market cap all by itself. In five years, just Google Cloud and YouTube in and of themselves

are fantastic businesses. But you add on deep mind, you add on Gemini, you add on Google search, and you have a company that's worth far more than its trading for today. I believe that Google is about $100 undervalued today. So if you can buy this company below $340, I think it's a buy. I own $87,000 of this company in the passive income portfolio. I own another $52,000 of Google in the Story Fund, and this company is going to continue to be one of my biggest winners.

Now we get to #2 of these AI companies that I believe will continue to compound and lead the market over the next five years. And this one's Amazon. This is another one that I believe is just a low hanging fruit, meaning it's the easiest to pick. It's the ones that are the easiest to buy. Amazon trading at 220 dollars is another case where investors may

have anchoring bias. Anchoring bias is when you look at the price of the stock and you look at where it was previously and you say, well, I could have bought it right there, so I don't want to buy it right here. And in this case, I believe that Amazon is deserving of more exposure today than it was even at the beginning of this year. The company's bigger, the company's stronger, and they're investing aggressively. And when I look at Amazon, I believe it has a lot of downside protection.

First of all, when we look at the long term trends of this company, this is one that it's grown as a compounding machine for decade after decade. Still today it's growing 11% revenue year over year. When we break that down by segment, we can see which parts of the company are growing the most important high margin portions of the company are growing far faster than the lower margin, less important parts. Key to Amazon is AWS with an estimated 4 + 1,000,000 customers.

It won't grow at these lumpy rates where it has huge quarters like Oracle or Microsoft, but it will grow at a continual compounded rate, 20 plus percent for a long period of time. And there are reports that are suggesting that Amazon's AWS growth will actually accelerate over the next year. It won't decelerate. Amazon will continue to be an AI leader over the next five years. They're building up their specific deal with Anthropic and more cloud providers.

They have their massive sprawling retail business, which lends more advertisement. They have a huge third party seller business. They're the biggest in logistics. They're figuring out humanoid robots, along with Tesla and other companies. They have Amazon Prime Video, which is about the second biggest streaming video website. Now, this company has a massive subscription business with over 300 million people subscribe to Prime, one of the lowest churn subscriptions.

They're infusing artificial intelligence with sports as well. And all of this, this entire company is selling at one of the cheapest valuations it's been throughout its history. Amazon is a buy today, and it's a company that I believe will continue to be a buy under $300 per share. Now #3 of companies that will continue to lead in this AI revolution is ASML. This is one that's had a great year, and it's now trading at a

29 Ford PE ratio. Another thing that we need to look at with ASML is that this company's earnings are coming up in 2 days, October 15th, we'll get Asml's earnings on the Qualtrm earnings calendar. We can see this Wednesday before market open. We have Asml's earnings. Now we can look at what to watch for. When I look at the different various things to look at with ASML, of course, there's a situation with China and the constant export restrictions. There's geopolitical tariff and

macro uncertainties. This is going to be one of the key things that we need to watch out dealt with this earnings because ASML always has commentary on what could happen, what might happen. The last quarter the CEO said that based on tariffs and export restrictions, we may not even grow next year. If we have the harshest outcome, if we have a really bad outcome. And just to mentioning that caused a huge sell off in the stock, it's still down 10%.

So geopolitical tariff and macro uncertainties maybe a big role in how the stock trades once the earnings call happened. But underneath all of this, the reason that I believe ASML will continue to grow in compound over the next five years at a very constant and predictable rate is this point right here, the install base management and service growth.

When we look at the most predictable revenue lines of ASML, this one is it. Management is expecting the install base management revenue to grow more than 20% in 2025 with ongoing momentum and services as the tool base expands. Virtually every machine that ASML has ever sold throughout its entire history is still in operation today. And all of those machines need

to be serviced by ASML. So as they continually sell more and more machines, they are in effect growing their install base management because every additional machine needs to be serviced. And so this will continue to grow over time. This is a company that I believe will continue to compound above 15% over the next five years. I think that you could safely buy it under $1000 and expect positive returns. But note that there could be a lot of volatility after every quarter.

If you're the type of investor to be shaken out of a company because it drops 10 or 15% after quarterly report, this may not be the one to own for you. But ASML is as solid as it gets, and it will continue to grow. And #4 we get to Netflix. This is one that obviously I have a history with. I'm a big investor in Netflix. I love the company. I own $140,000 of the stock, 85,000 of that being gains. Even though I've done well on Netflix and I could just end on

a high note. I could sell the company, say it was a successful investment, wash my hands from it, and then go on to the next investment. That's not typically what investors should do in these type of situations because it's rare that a company like Netflix comes around the corner. There's simply just not a lot of Netflix's. There are a lot of streaming services, but not a lot of ones at the scale or success or economics of Netflix.

Now, this is a company that, even though it's not as direct of an AI company as an NVIDIA or Palantir or even a Google or Amazon, I believe that Netflix is an AI company and I've made entire videos dedicated to just proving that theory out. AI companies are not just ones creating the models, but they're the ones that are in the best situation to be able to leverage artificial intelligence. Think about it in terms of

leverage. If a company can take a tool that someone else made and they can use it 1000 times more powerfully than even the company that made it, that company's using leverage. And Netflix has all the leverage in the world with artificial intelligence. Netflix has so many use cases for artificial intelligence that they actually have to reassure their partners that they're not going to use too much AI because they could do so much with their

company. They have entire write ups going over the ways that they're using artificial intelligence in content production, that they're not trying to get rid of original storytelling writers or actors, But in fact they're trying to enhance the production, invest more into it, make it better, make things look more real and make the stories more authentic and make it so people can focus on the more authentic parts of the story rather than the low end stuff

that can be generated through artificial intelligence. Think about all the different things that they can do leveraging artificial intelligence to help speed up the content creation of the company. Netflix is already built out an AI search, so you can go in the the app and just say, I'm looking for something that's kind of like this and it will and it will use AI to recommend you specific TV shows. It's going to be able to use AI to catalog, to auto dub different content to make it

easier to find. Of course, they're using artificial intelligence to try to present the best shows to you at the best given time. This is an extension of machine learning, which they've been in for a while, but this is going to enhance these type of capabilities. They can use AI to do analysis on which shows are getting the most retention, watch time depletion rates, which ones are the best investments, the ROI they can leverage, all of this

within their product. It is the most tech focused, concentrated tech talent company that's in media today with the largest scale. So this is a company that I believe has tremendous growth ahead of it. Now, the big counterpoint for Netflix is that the valuation has gotten quite high. It's up to a 40 PE ratio. But anytime we look at valuation, we have to match it with growth rate and predictability of growth.

Even though the valuation is high, the growth rate's also extremely high and the predictability of growth is quite high as well. Netflix's earnings per share grow at 50 plus percent for the past couple of years. In fact, for the past five years, it's grown above 31%.

So while it trades at a higher PE ratio than some other companies, look at the earnings per share growth rate, it's likely growing twice to three times as fast as every other company you're comparing it to. When we look at predictability of growth, we can see that Netflix is a highly diverse revenue generative company and every area that they go into, they're crawling across planet Earth. And at this point, I believe they're simply unstoppable.

Their lead is insurmountable. Other streaming services can't catch them. Even news that streaming services like Paramount are trying to buy Warner Brothers Discovery, Even if they combine together, they're still going to be much smaller than Netflix. This is a company that even boycotts millions of people following Elon Musk can't even affect the stock for more than a couple days. It's at a much higher price than a boycott only a week ago.

Netflix is a company that's geographically diverse, has hundreds of millions of customers, has pricing power, has 15% revenue growth, and it's operating margins are ticking up every single year. It's a company that's already incredibly cash flow generative, making $8.5 billion in free cash flow in the trailing 12 months. Netflix's management team internally said that they can get the company to a trillion dollar market cap if they continue to execute.

They're going to double the revenue, triple the profits, and gain 100 million subscribers at the same time, while having fast growing ad profits as well. If the bare case that you can rely on at this point is at the PE ratios of 40, if that's the only thing you can point out about this company, that it just has a high PE, it's a little bit higher than most companies. That is an incredibly weak bear case. Every other aspect of this company internally shows that it

is going higher. The stock will be higher in the next 5 years, substantially higher. Now, there's some people that have suggested the bear case for Netflix is the content. In terms of content, Netflix actually has some of the best content in the world on their service all the time. We've gone through this over and over again. Squid Game brought in a whole new category of content. We have shows like Wednesday

that are mega hits. We had Demon Hunters, which was a mega hit on Netflix just recently. Later this year we have Stranger Things, the conclusion of this series, which reports are now saying that every episode will be an hour and a half to two hours long with a production budget of 50 to 60 million per episode. These are movie length, movie quality episodes every episode. For the conclusion of the series, they're releasing this final season in three different stages.

The first stage is late November, then we have the next stage on Christmas Day. Then we have the final stage, December 31st. Netflix is owning the holiday season. The times that people are around with their families, gathering around in the living room, spending downtime while it's cold outside, they're going to be watching Netflix. I have yet to hear a good bear case for this company. Even people that complain about the price of the service saying it's too expensive.

Netflix has an $8 per month plan. There's no streaming service that offers as much content for a cheaper plan #5 is a more controversial pick. And I'm aware that many people are not along for the ride and they disagree with me on this company, but it's Duolingo. It's a company that I've talked about before, but I just want to go over the case of it as we're getting closer to their next

earnings. And as a lot of people have made a lot of assumptions and a lot of decisions already with Duolingo, the first thing I want you to do when looking at this company is to just keep an open mind for a minute. Just erase some preconceived notions and keep an open mind. One of the first things people do when you talk about Duolingo as a real serious investment, especially one that's an AI investment, is they roll their eyes and they say it's nothing

more than a little app. They kind of denigrate it and they downplay it. They make it little bit lesser by saying it's just an app. Like why would you want to invest so much in a in a tiny app? Like if you really just back up and think about where Meta makes their money, they make it from the Facebook app and they make it from Instagram as an app. This company's basically 2 apps. Now, I'm not trying to denigrate Meta. It is an incredibly powerful company.

I'm just outlining a point here that this company's primary way of people accessing it is from 2 apps. Google, the majority of its web traffic comes from mobile, and it comes from mobile apps. Many companies that are massive companies are just apps. That's all they are. In fact, one of the things that Duolingo CEO that did was so smart is he actually started things off as an app. He didn't start web first. He started app first specifically because he thought that was a more viral way of

growing the company. He thought it had more demand. And that's part of the reason that Duolingo has been so successful is specifically because it's just an app. That's one of the things that I think is an erroneous argument, an erroneous way of looking at the company. Of course, Duolingo is an app, but so are so many huge companies. Another criticism all address for Duolingo is that this company really doesn't own anything unique. It's easy to replicate what

they're doing. And in fact, Duolingo is more of justice, a ChatGPT wrapper, like it's just using ChatGPT and Chachi BT really has the real power. That's how you do the Duolingo Max where you talk with the AI. All of that is in fact through Chachi BT. So for example, we have this leaked report. This is unconfirmed, but Open AI hasn't denied it. So we can assume for now that it's likely accurate. And it shows the top 30 customers of Open AI through

their API. So these are ones that are using the the Open AI service by their API. And the very top of it is Duolingo. It's the number one company that's using open a eyes technology. Now, the criticism here is that that's just evidence that Duolingo owns nothing unique. They're simply just using other people's technology. They're putting it into an app form and that's all that they can offer. And that's somewhat true, but that misses the point of what makes a powerful company.

Another company that works in similar fashion is 1 called Spotify. Spotify could be called a simple wrapper for Universal Music Group, a company that just takes other people's stuff. Universal Music Group all their music, and they put it into an A. That's basically all Spotify does, but yet it's a massive

company in the process. And even in this scenario, Spotify's much more dependent on Universal Music Group than Duolingo is on Open AI. It's much easier for Duolingo to switch out from Open AI to Gemini to Anthropic or any other AI model. The users on their end would likely not know the difference. So Duolingo has far more flexibility in which service provider it uses for its AI.

And Duolingo controls the most important part, which is the touch point with the customer, the user experience. What this proves is that Duolingo is leveraging artificial intelligence far more than other companies. In fact, any other company that's a customer of open AI, they're literally at the very top of the list of using this technology and distributing it at scale. Now, of course, the bear case for this company, for anybody that does some shorthand research on it, they'll point to

the high PE ratio. But just as I said, in the case of Netflix having their 40 PE with Duolingo's 75 PE ratio, PE ratios should. Be given in context of growth and predictability, Duolingo grew their earnings per share by 73% year over year last quarter. It's gone from essentially in the deep red in 2022 now to producing 2 1/2 dollars of earnings per share. With massive explosive growth and earnings per share, you get higher PE ratios.

In terms of predictability, we can look at the subscription revenue growth of the company, which is growing at 47% year over year. This will likely continue to grow as Duolingo is becoming better at converting their daily active users to paid subscribers. The paid subscribers are growing above 30 and they'll likely grow around that 30 over the next couple of quarters. When we look at Duolingo's growth, it is subscription

based, reoccurring over time. The revenue continues to grow as they engage with more people and convert more customers. I understand that this company, especially this stock is far less of a consensus than other companies that I've looked at. And I believe there is more risk inherent in Duolingo than the other names that I've mentioned. So I've sized my position

appropriate for that. But I do believe this company could represent one of the best investments over the next five years and I believe that it's a buy under $400.00 per share. Now moving on, we have a lot of news to get to.

First of all, Broadcom's up 10% today. This is on news that Open AI announced a multi billion dollar partnership with Broadcom to Co design and deploy 10 gigawatts of custom AI accelerators. Haven't we heard this type of thing before? Doesn't it sound like Deja Vu, like we're just tearing the same thing except with a different

stock? It seems like every day, every day now Open AI is just announcing another deal with another company, another strategic partnership, another Co design, another thing where they go on TV and they say how good this is for the future. In fact, investors today are basically playing whack a mole of trying to pick which company will have the next deal with Open AI, which one's going to surge up 10% with one of these news headlines.

And of course with each of these deals we have the Co founder of Open AI going on to CNBC explaining why they're doing this deal. You've announced big deals with the AMD, You announced a very big deal with NVIDIA. Why do you need still one more deal? Well, first of all, thanks for having me back. The way I'd think about this is we need way more compute power than we are still on trajectory to build.

And so I think that there's a whole industry that still needs to be created in terms of how to have both the power and the computational power available to power the AI revolution that we

see coming. And so part of what we're looking for here, part of what we've been working with Charlie and his team on is how to actually build chips that are customized for specific workloads so that we can take our knowledge of how to build the AI models and combine it with the best possible way of implementing that into silicon. This is another deal of strategic cooperation between these companies and Broadcom continues to move up even after having an amazing past five years.

It's one of these companies that continues to be in all the right places at the right time. Now, while all that's going on with Broadcom and Open AI being excited about this AI move, we have the former CEO of Intel saying that we're clearly in a bubble. Yeah.

And, you know, are we in an AI bubble? Of course, right. You know, we were of course bubble, you know, of course we are. I mean, you know, we're hyped, we're accelerating. We're putting enormous leverage into the system. You know, that said, I don't see it ending for several years. You know, I do think we have, you know, an industry shift to

AI, as Jensen has talked about. And I agree with this, you know, that businesses are yet to really start materially benefiting from it. You know, we're displacing all of the Internet and the, you know, service provider industries as we think about it today. We have a long way to go. What's the sound? Of course, in an AI bubble, he thinks that we're in one, but we're going to go further in this bubble for at least the

next couple of years. Howard Marks takes a different approach, but his overall view is similar. He says his response to date has been that valuations are high, but not crazy. So Howard Marks believes that investors are showing some sort of discretion, even though valuations are high and it's not quite a bubble. Tom Lee is not only not worried about a bubble, but he thinks investors should continue to be optimistic and continue to invest in the biggest AI names in the world.

Why invest should stay pretty constructive on the USI mean JP Morgan, the biggest and one of the and the most powerful bank in the world, is investing a trillion and a half dollars into the US into things that are going to strengthen sort of US advantages, you know, critically important areas. And at a time when the US is dominating AI and of course now we have this big tailwind is as blockchain is an initiative that Wall Street is building products on.

So I think there's a lot of reasons for investors to stay optimistic. And I know there's a lot of talk about bubbles, but I think the thing I would just continue to point out is NVIDIA trades at around 27 times forward earnings. It's still, on a PE basis, cheaper than Walmart and Costco, which traded around 47 and 34 times forward earnings. He addresses the concern of the bubble but points to evidence saying it's not a bubble because it's cheaper than Costco and Walmart.

Tom Lee's not the only one doing this. I've seen this comparison over and over again with people comparing a given AI stock to Costco and Walmart. Costco is a different company than most companies. Costco has a level of predictability, reliability, durability, and visibility into its earnings that surpasses virtually every other company on planet Earth.

NVIDIA, of course, trades at a lower valuation on a forward earnings basis than Costco, and while that may look like it's cheaper, that again doesn't tell the whole story. NVIDIA has proven that there is far less visibility into the future earnings in Costco. And by visibility, that means the ability to accurately predict what future earnings will look like. So for example, if we look at NVIDIA and we look at the revenue growth, this is what the

revenue growth looks like. Could you have predicted what this revenue would look like to even a reasonable degree or even somewhat accurate five years ago? So back in 2020, did you know that Nvidia's revenue would go up 10X in a number of years? Back in 2022, did you have any clue that Nvidia's revenue would go up 7X? Of course you didn't. Well, if you did, you would be filthy rich. But 99% of investors did not because it was highly unpredictable.

In fact, the investors that held NVIDIA beforehand, probably themselves, could accurately say that they didn't predict that it would grow this fast. It was a little unexpected. Costco's revenue, by contrast, is highly predictable. And although it's gone through stages of slightly faster growth and slightly slower growth, it's also grown at a much more steady compounded rate for decades of time.

There's no incredible outlier disruptive technology that spurs the growth of Costco. So what investors in part are paying for is Costco's visibility into future revenues and future earnings. And this goes to the point that if you are not able to accurately predict the growth in revenue five years ago from NVIDIA, what makes you believe that you'll be able to accurately predict the demand that NVIDIA will have in the next five years?

What makes you know that NVIDIA will have the same demand they have now? That AMD and other competitors won't take a bigger share of the pie? That the big tech companies, the cloud computing companies, the hyperscalers that make up the majority of this revenue won't be able to replace a significant portion of their spend of NVIDIA on their own TP us or their own custom made chips. It's very difficult to predict the earnings and future revenue

growth of an NVIDIA. It's very easy to predict the future earnings growth and revenue of Costco because of the products they sell and the industries they operate in. Costco's selling low margin beef, chicken, milk and eggs. Nvidia's selling Blackwell chips, the biggest chips in the world, the biggest GPU's in the world, the most powerful ones of the time. What has more longevity to it? Which one is more predictable between those two segments of

product? Which one is more likely to be disrupted over the next 20 years? Milk, eggs, beef and chicken, or the latest and greatest GPU? Now moving on, we finally get to our fail of the week. In this case it comes from X, so we have LA Brain here. He says if you are 18 or in your 20s, this is the greatest piece of advice I can ever give. Risk it all. These are the only years you can lose everything you have with

minor consequences. When you're older you'll have so many more responsibilities, taking care of a family, paying off loans, buying a house. You won't be able to afford high

risks like you can now. I started this whole meme coin journey by depositing all the money I had to my name and buying meme coins with it. I quickly lost it all but instead of quitting there I took my entire student loan $9000 and deposited it into phantom and traded it all the way back up to 30,000 before losing it all again.

I was left with $70 in my phantom wallet, but again I was not ready to give it up and I turned that $70.00 into 1000, then 10,000, then 100,000 and it's only been up from there. I was able to risk everything I had because I knew even if I lost everything I would still have a bed to sleep on, a home to live in, food to eat, family and friends. So there you have his advice. If you're young, just be

careless with your money. Risk it all and even if you lose it multiple times over and over again, at least you have like a, a place to, to sleep, at least you have a bed and you still have friends, even though if you lose it all, you have no money. So that was the advice that LA Brain shared with all of us. The risk it all, even if you lose everything, it's not a big deal because you'll make it back.

Now, just recently, and this is a lot more recent than that past post, this was as of last Friday when the Trump tariff tweet went out. A lot of cryptos actually went down as a result. There's a big crypto sell off and a lot of accounts were highly leveraged in crypto. The more leveraged, the more dramatic the swings. We have La Braine here giving us an update. He says. I spent three years showing up every single day 24/7. I sacrificed everything from

friends and family and health. I literally put up sweat, blood and tears into this and in a matter of seconds, everything is gone. I have nothing to show for my work and I will never get that time back. And here we have an image of his TNL, his profit and loss of -3,482,000 dollars, 717. So we have him losing about 3 1/2 million dollars in a single day. And not only that, what he said before, you know, if you're

young, you can risk everything. You'll have your family, friends, you know, you'll, you'll be able to get everything back. He doesn't seem to have the same optimism and go get him attitude after this most recent set back. In fact, he now says he lost his health, he lost his friends and his family and all of his time. So he basically lost everything in a single day. And he did so by following his

own advice, by risking it all. This is something that we can talk about and laugh at, but I noticed more and more people doing this in an attempt to skip the line and get rich as fast as possible with the least amount of work as possible, with the least amount of patience or discipline or effort and protecting what you actually have. People are engaging in degenerate behavior, leveraging up as much as they can in a straight out attempt to gamble

their way to financial success. And in every case, it starts off with optimism and what you can gain, and it ends in tears, losing hundreds of thousands if not millions of dollars in a matter of minutes. And this is what happens when people invest in speculative things with a lot of leverage. The truth is that investors do not need to risk it all at any point in their life, nor should they. Even if you are young, the attitude of risking at all means that you can be careless with money.

That money doesn't matter when you're younger, in your 20s. And that's precisely when money matters the most. When making money and compounding matters the most, because compounding works with time. The money that you make in excess of your living expenses in your 20s can be invested in index funds or growth funds. That money can safely and predictably be compounded for long periods of time. Money intelligently invested early on in life can turn to fortunes later in life with

discipline and patience. But if you exercise no patience, if you try to get rich fast, If you play the game of gambling, ultimately you're going to lose it. And that is why LA Brain here is the fail of the week. Now that'll be it for this episode. See in the next one.