AI Judged My Portfolio, Here’s what it said.

Welcome back, everyone. Thanks for joining. On today's episode. We have artificial intelligence that we know is getting better and better every day. It's being used in more and more applications. We've seen it advance so much and just like a year or two now, this raises a question for investors of what can we do with this technology to better help us invest?

Not only do we want to make great investments in AI companies, but what if artificial intelligence in and of itself could help us guide our investments? That's going to be one of the things we look at today. I have well over $1,000,000 invested when I combine the passive income portfolio and the story fund. Now I invest in companies that I define as super high quality, dominant companies, ones that are scalable, high margin, fast growing. These are my favorite type of

companies that I like to buy. But what if we asked AI about my entire portfolio overall and my investing philosophy? What would it say about that? Well, that's what we're going to be looking at today. We have my entire portfolio combined $1.266 million and we're going to be going through

what AI has to say about it. We also have another example portfolio here, all in on Tesla. We'll be looking at AI's review of this approach and all in on Palantir and reviewing the commentary and analysis that artificial intelligence gives. Now, of course, we also have some other news to get to. Trump is back on the tariff train. He is announcing 25% tariffs on imports from Japan and South Korea. I have some thoughts on this and how it will or will not impact the markets.

And of course, we have more news, more drama with Elon Musk. He is running out of Rd. in China, according to the Wall Street Journal. That's what they say here. And on top of that, Elon Musk just recently announced his own political party, the American Party. We'll be looking over this news and seeing how it's impacting different companies like Tesla and Uber. And then finally, I wanted to throw in a company I have yet to talk about on this show up until now.

And it's one that I think, in fact, I'll argue in this episode that it's become more innovative than Apple. That company is Shark Ninja. Shark Ninja is a fast growing company that's innovating rapidly. It's very impressive what they're doing. And I believe they're beating many top tier tech companies at their own game. So we'll be looking at this underdog Shark Ninja and seeing if there's an investing

opportunity here. Now we start things off today by looking at the theme of artificial intelligence. We know that as investors, we look at artificial intelligence through investment opportunities. What do we want to invest in? Which companies are creating the AI? Which ones are creating the hardware to run the AI? Which ones have the network effects in the user base to implement AI? Which ones can replace humans with AI enabled robots, so on

and so forth. And that's the major focus most of the time, which we spend a lot of time on this channel discussing. Many of the top companies in My Portfolio are ones that I believe will benefit directly from AI, like Google or Amazon. But not only is AI providing us a set of great investment opportunities, different companies we can buy equity in, but it also may help us directly manage our portfolio, manage our investing philosophy.

It may help give us ideas and feedback, like a bit of a financial advisor, an investment broker, someone that you can call up and get a little bit of help when you're discussing an investment decision. AI is getting much better at understanding context and philosophies, different investing ideas and approaches. I understood this when I was looking at different LLMS and asking them different investment questions. I do this regularly and these

AIS are getting much better. For example, the two LLMS I use the most is Chachi BT and Gemini. I bounce back between these two regularly testing both of them out and one of the conversations I just recently had with with ChatGPT was very impressive of its understanding of my investment philosophy. Let's go ahead and just take a look here. The discussion was whether or not I should sell Costco because it has a 50 PE ratio. We know that Costco in My Portfolio is a very large

position. We look at it right here, $85,000 position. So this is a very meaningful position. It's massively in the green. The majority of the position is gains because I started buying the thing back in early 2018. So Costco's up around 3:00 to 4:00 X since when I was buying it to begin with. So that the kegger of Costco has been incredible, but a lot of Costco's gains have come from multiple expansion, not just

earnings growth. They have earnings growth, they have special dividends, and they've had multiple expansion from the 20s and 30s PE up to A50. So I asked Chachi PT based on Joseph's strategy, would it be good to sell Costco stock now that it's trading at A50 PE ratio? Now here's the answer it gives, based on Joseph Carlson's investment philosophy, which prioritizes business quality, predictability, and long term compounding over short term valuation concerns.

Selling Costco solely because it trades at A50 PE ratio would be inconsistent with his approach. Here's why Why Joseph would likely hold Costco despite the 50 PE. Exceptional business quality. Costco's membership model, scale advantage, low turnover cost, and defensible Moat aligned squarely with Joseph's focus on high quality, low drama businesses. Predictable growth.

It's long history of steady inflation beating growth and market share expansion in retail market makes it one of the most predictable compounders in the market. Valuation discipline and not obsession. Joseph acknowledges valuation, but he's shown in his own ownership of names like S&B Global and MasterCard that he's willing to pay a premium for businesses with enduring economics and consistent reinvestment opportunity. Now this sounds pretty accurate so far going on.

It highlights a few caveats here. Maybe exceptions, it says. That said, when might he trim if another holding offer superior risk adjusted upside? For instance, if Costco's Ford returns compressed a low single digits due to multiple expansion alone, and they're similarly high quality compounders trading at far more attractive valuations. Reallocation might make sense if growth decelerates while valuation stays elevated.

If comp growth starts to materially slow and the PE stays above 40 to 50, Joseph might reassess whether the business still meets his hurdle rate for Ford returns. Bottom line, no, Costco should not be sold just because it trades at A50 PE unless a clearly superior opportunity exists. Joseph's philosophy favors holding elite, predictable businesses for decades, not trying to time their valuation peaks. Now. I look at this and I think it

sounds pretty accurate. This is, I believe, an accurate assessment of my behavior and philosophy. It doesn't stray too much from my own thoughts, and in a way it is just my thoughts being relayed back to me. So naturally I agree. I, in fact, I think this is good advice. I agree with myself here.

Now, overall, when I look at this, it shows the power of LLMS to be able to look through a lot of information and give you a concise, valuable input based on your own investing philosophy or what you're trying to accomplish. And I think that can be very helpful. You may not agree with everything, but the AI at least gives you some food for thought, some things to think about.

And when you look at this not only just with one company, but your overall portfolio construction, the entire composition of it, I think the advice is even more interesting. When we built this feature in the Qualtrim, I was able to look at lots of different portfolios and investing philosophies and see both the qualities and risks of them. When we look at this month's update, and this is updated as of this morning, this is how My Portfolio stands as of today.

We can look at the top holdings. We have Netflix right at the top here. From Netflix we go down the list. Some of these I've gained 39,043 thousand, 34,000. We can look at the percentages. Some of these are older holdings or ones that have gained a lot more than others. The only one that I'm in the red right now is Salesforce. This is my worst investment as of right now, but I'm only in the red by around $1600 on this one, so we haven't had too much of a loss on it.

The companies that I've been buying the most recently include Equifax, Google, and Amazon. These are three companies that I'm incredibly bullish on. I think the future is very bright for him, and I think they're all undervalued. Now with the overall combined holdings and the weightings being taken into account, we can see what the AI thinks of my overall portfolio. Now. This AI portfolio analysis was updated this morning with all

the latest data. And the way that this works is we have the quality section here, which builds you up and makes you feel so good about your portfolio When you run the AI analysis and you'll get the qualities, you'll be thinking, wow, I, I have great, I have a great portfolio. It, it's, there's so much opportunity here. You know, it gives you all the qualities that highlights all the strengths. Then you get to the risks.

And this is where it really highlights the stuff that you might not be as eager to hear about the stuff that's more of a problem for your portfolio. So that's what it does here. It, it builds you up at first, then it kind of tears you down to give you a full, full analysis. You get both sides of it in the qualities. And this is a part where it's going to build us up.

It says this portfolio is comprised predominantly of dominant blue chip companies with entrenched global franchises, platform advantages, resilient reoccurring revenue streams. Companies such as S&P Global, Moody's and Equifax possess wide economic moats derive from data, regulatory position and essential services offerings that underpin financial infrastructure globally with high margins and substantial pricing power. So we have a lot of good qualities here.

One of them that I do focus on intentionally is resilient recurring revenue streams. Most of the companies in My Portfolio are subscription or highly recurring revenue. They also I believe have substantial pricing power. Each company has proven that MasterCard, they say. The AI says exemplifies a business model built on toll collector economics characterized by asset light operations and robust transaction based revenues unconstrained by secular payment growth.

Intuit in Salesforce reinforced the portfolio's technology exposure with sticky subscription based business models that serve critical back office enterprise needs and enjoy high customer retention. Microsoft and Alphabet further enhanced the portfolio's quality with their dominant software ecosystems, reoccurring cloud and productivity suites, revenues and best in class scalability in the respective

segments. It goes on saying that the consumer resilience and global scalability are reinforced through Costco's durable business model, which delivers stable cash flows regardless of macro cycles.

Amazon's omnipresence which most leading logistics and cloud infrastructure along with formidable first party and marketplace platform economics and ASMLASML represents a unique technological gatekeeper in semiconductor manufacturing, underpinning industry innovation with virtual monopoly status and EUV lithography systems integral to chip advancement. Booking holdings in Netflix also sector defining.

They're also sector defining with strong network effects and operational leverage inherent in their digital platform models. Collectively, the portfolio's holdings are marked by pricing power, high free cash flow generation, strong management teams and significant long term growth runways driven by entrenched positions in essential, scalable and capital

efficient businesses. So this last sentence here where it says that these companies have pricing power, high free cash flow generation, they have strong management teams and significant long term growth. That's all stuff that I repeat routinely on this show and the AII believe gets this correctly. Now this is the qualities of the portfolio, which this portfolio is at no lack of incredible quality. It is a very, very high quality portfolio.

So it makes sense that it's giving this glowing review trying to characterize all the different qualities in just two paragraphs here. But then we get on to the risks. And this is something that I like looking at monthly because it reminds me about the risks of my companies. I think it's easy when you invest in really high quality companies to just kind of brush aside or sweep under the rug some of the risks that you're actually facing.

It says that the portfolio is notably concentrated among large cap, high multiple growth companies, leaving it exposed to valuation compression risks, particularly if interest rates rise or macroeconomic conditions lead to lower risk tolerance among investors. Technology and digital platform businesses represent a significant allocation, which, while resilient in many respects, brings heightened susceptibility to regulation, emerging competition and rapid

pace of technological changes. Companies like Alphabet, Microsoft, Amazon and Netflix all face increasing scrutiny from global regulators concerning data privacy, antitrust and digital market power, any of which could impact their long term growth and profitability.

Additionally, the cluster of financial service providers, SME Global, Moody's and Equifax means that the portfolio could be vulnerable if there are meaningful shifts in the credit markets, regulatory frameworks or structural changes that erode their Moat such as decentralized financial alternatives. So defy all these companies doing stablecoin and that type of thing. It's highlighting as a risk rescue Global Moody's and Equifax, which I do think is is

a notable risk. It also highlighted in this first paragraph that the very first one, the very first thing it came up with is that these are high multiple growth companies leaving them exposed to valuation compression. And I think right now that is probably the most significant risk of My Portfolio. Now it highlights a couple other things here. It says a further risk is the underwriting of more defensive and non discretionary segments.

Despite Costco's presence, the portfolio has limited exposure to traditional healthcare, utilities and industrials outside EFX materials or energy. So I really have no, I have no investment in healthcare, utilities, industrials, material or energy. Now it highlights that is a risk because it it means a portfolio's less diversified, but I believe this is a risk worth taking.

In my opinion. You can try to diversify into every sector, but I believe that some sectors are just worse to be in. I think that overall, even though these defensive sectors, or at least they're considered defensive, they're more stable. You have sectors like utilities, industrials, these Big Blue chip companies that are in the Dow.

They're a lot slower growing. And if you want to outperform the market, if you really want to have alpha, I think it's very difficult to do that while investing in all of these slower growing, more defensive companies. But it does note that this makes the the portfolio less defensive

in some situations. Now it also says this sector concentration leaves the portfolio more cyclical than it may appear, particularly given Booking Holdings, Texas Roadhouse and Amazon sensitivity to consumer spending trends. While most holdings demonstrate impressive scalability and recurring revenues, several require continued innovation and CapEx intensity to retain their competitive positions, especially ASML, Amazon and Netflix, raising execution and

investment risk. Finally, relying on a concentrated handful of global leaders brings idiosyncratic, headline and operational risk. Idiosyncratic is an investment term that means that it's very specific. It's specific to these companies. When you diversify to an ETF, you don't have those very specific finite risks that exists with these companies,

with these leaderships. They say where these operational risks or headline risks, where reputational, legal or technological missteps could materially impact portfolio performance. Now, I think overall that's a good look at My Portfolio. It's a nice reminder of both the qualities and the weaknesses that I can look at every month and kind of assess what I'm doing, especially as I'm making changes to the portfolio and the allocation.

Now let's go ahead and take a look at some other portfolios with more aggressive investing strategies. Let's go ahead and just look at an all in Palantir one. I haven't done this before. I'm not sure what it's going to do here, but let's run the analysis and see what happens. I click analyze portfolio. We can wait a few moments here for it to load in and there we have it. It's loaded in. We have the new portfolio analysis and again this is 100% Palantir.

So the only holding this is what the AI has to say. The portfolio is solely invested in Palantir Technologies, the company recognized for it's strong foothold in the data analytics and enterprise software sector. Palantir Score competency lies in it's highly entrenched data integration platforms which are tailored for both governments and commercial clients who rely on secure mission critical

insight generation. The company benefits from deep relationships with its clients, often with multi year high value contracts, creating a durable Moat that is hard to replicate, especially given the sensitive nature and complexity of its deployments. Its government contracts, in particular, are associated with long procurement cycles and high switching costs, further solidifying Palantir's competitive position and enabling relative predictable

reoccurring revenue. Another strength of Palantir is to focus on scalability and expansion across various industries owing to its modular, customizable software platforms. The company demonstrates A scalable business model with high gross margins characterized by enterprise software firms.

Its offering is deeply integrated into client workflows leading to high client retention, strong pricing power management led by visionary founder continuously seeking to innovate and expand the platform's capability, extending its runway for growth both domestically and internationally. These qualities position Palantir is a potentially resilient business capable of thriving through different economic cycles driven by demand for analytics and data-driven decision making.

That's pretty good. In fact, that's really good. It's not. It's almost convincing me at this point to invest in Palantir. I look at this and it's a bit different than the the investment analysis you're getting from Dan Ives that Palantir. You know, if Dan eyes was here writing these AI write ups, if it was him instead, it would say it's time to get out the popcorn. Palantir is the messy of AI, you know, a bit different of analysis here, but this is really good.

I think it's a thorough look. It shows all the benefits of Palantir, at least many of them, the strengths of the company, which I've said for a long time. I think Palantir is a great company, I really like it. But let's go ahead and take a look at the risks. What does it have to say here having 100% of your portfolio in Palantir says? However, the portfolio single holding concentration in Palantir exposes it to considerable company specific

risk. Any operational setbacks, strategic missteps or negative development specific to Palantir, such as major contract losses, regulatory scrutiny regarding data security, or failure to sustain innovation ahead of competitors, could result in significant capital impairment. With no diversification across sector or business model, the entire portfolio's performance is tied intrinsically to Palantir's fortunes.

The government's segments of its business, while a source of stability, can also be subject to political and budgetary uncertainties that are outside the company's control. Market perception of Palantir's controversial dealings and evolving regulatory landscape involving big data and privacy could also pose a risk of its valuation of long term business

prospects, it highlights. Again, without any other asset class, the portfolio lacks a cushion against these idiosyncratic sector wide shocks. Investing solely in Palantir seems incredibly risky. Let's go out and see if it mirrors those same thoughts about Tesla. My thoughts are it's going to highlight the very same issue. Just having all of your portfolio in a single stock is just way too much concentrated risk. So let's go ahead and take a

look at it here. Now, I'm not going to read the whole thing, but it goes over a lot of the technology of Tesla. Some of the things that we've heard before says nonetheless the portfolio's concentration or concentrated exposure to a single stock. Tesla represents A substantial risk as it's performance is closely tied to the fortunes and volatility of one company. Within the consumer cyclical

sector. Tesla operates in an incredibly competitive market facing both legacy automotive players, scaling EVs and new entrants in China and beyond. Execution risk remains high. Furthermore, Tesla's premium valuation hinges on the company's ability to deliver relentless growth and achieve ambitious targets. Any perceived slowdown or missteps could result in

substantial price corrections. Now I wonder if it's going to I, I wonder if it's going to mention that Elon Musk getting involved in politics is a potential risk. Maybe that's not baked into the models quite yet. It says. Tesla's business is also exposed to broader changes in consumer discretionary spending, especially given its concentration in high ticket durable goods. Macroeconomic slowdowns. Rising interest rates can dampen vehicle sales.

The company's aggressive expansion comes with capital requirements that could pressure margins and lead to dilution if not carefully managed. Additionally, the highly visible and unconventional management style primarily driven by Elon Musk introduces key person risk and the potential for headline driven volatility. It's exactly what we're seeing today. The lack of diversification in this portfolio magnifies the impact of any negative

development specific to Tesla, reducing the resilience of the overall investment of the sector and company specific shocks. So there you have it. Investing in any single company, especially one like Tesla or Palanter, I think you're taking on significant risk in doing so. And overall, I think the AI is mostly correct and I think it's good feedback. Now, when we look at headline risk, there's one piece of news

that happened just today. Trump announced a 25% tariff on imports from Japan and South Korea starting August 1st. He gave these letters on Truth Social with this announcement. And basically the letters say that they're not working with us fast enough, they're not getting enough done, we're going to tariff them. And then he says if they announce reciprocal tariffs, we are going to match and increase the tariff on them by whatever number they choose.

So if they say they're going to tariff us by 2025%, we'll raise the tariffs another 25% on them or whatever it may be. Now we look at how the market's reacting. Right now, we're down 1.2 percent, 1.4 down a percent or two after having a great start to the month. This is big headline news, right? Tariffs rattle the market, but we're really only down a percent

and a half. And I believe my prediction is, even if these tariffs get more and more extreme, if Trump re announces a bunch of them or we get Peter Navarro on TV talking about the tariffs again, I think we're very unlikely to have the same type of dip with the same magnitude that we had back in April. For the simple reason that it's more scary the first time when you're buying the dip in any situation, the first time that something happens, it's far more

shocking, far more uncertain, far more scary to the market. In April 2nd, that's where Trump came out for the first time and really relayed how extreme these tariffs and reciprocal tariffs were. They are far above people's expectations. That shocked the market and dropped at 10%. That's what I was saying is a buying opportunity. When investors are unsure, when they're scared, that's when you buy the second time. Something happens each time Trump announces tariffs.

For now on, investors will have in the back of their minds that he can change his mind quickly, that Trump doesn't like having the market go down, that investors that bought the dip last time were rewarded. So they're more likely to hold on to their shares. And in fact, they're more likely to buy any smaller dip when it happens. And overall, it's just less scary the second time something

happens. So it's far more unlikely that the market will drop to the same extent it did the first time. You can look at any other example. You can look at COVID that dropped the market 45%. But if we had another pandemic, if we had another disease, it's very unlikely in this lifetime that it would drop the market to the same extent because investors would have a reasonable expectation of how things would play out. We'd be able to adapt and know without as much fear.

That's the way the market works. So I believe we're very unlikely

to see the April lows again based on tariffs, even if President Trump ramps him up again like he did the first time. Now we also have Elon Musk making news again. This time, Tesla shares are down 7% because Elon Musk says that he's launching a political party. Now, he's not just saying that he has. He's actually launched a new political party, a new one that he calls the American Party.

The goal of it is to be the centrist party, to try to take away key votes from swing states so that he can kind of control which party wins and which one loses. Now, obviously, this gets deeply into politics, and there's a lot of opinions on this. Some people say that Elon Musk should stay out of this, that he shouldn't be involved in politics. He's not good at it. It's not what he does. And while you may agree with those arguments, I'm very reluctant to have the stay in

your lane attitude. I think Elon Musk should be able to do whatever he wants. He's a a free person. If Elon Musk wants to share his political views, he's free to do so. If he is not satisfied with either political party, he's free to create another one. But I also believe there's a view from the Tesla investor perspective that Elon Musk, while he's free to stay out of his lane and and move to any lane he wants, he's free to get into politics. He also has a role and a

responsibility. He's still the CEO of Tesla and he seems to be pursuing politics at the direct expense of Tesla. Now for the CE OS of companies that I invest in, I've been very consistent on this. I am OK with them getting involved in politics if it benefits the shareholder. If my CEO is going out and becoming political, but it's

benefiting me the shareholder. The politics play well into the company and the role at the benefit of the company, then I believe the CEO in that case is doing its job. It's representing the shareholder base and it's advocating for its shareholders. But in the case of Tesla, you can see investors reactions to what he's doing. Tesla stock is continually getting pummeled by Elon Musk getting further and further involved in politics.

He seems to have set his Tesla CEO position secondary to his political ambitions. Seems like it's not even as big as focus. If you look at what occupies Elon Musk's mind, it's not Tesla's success, it's politics. Everyday more frequently he's tweeting about politics, about political subjects. Most of the time it's not even related to Tesla at all. It's very difficult to interpret that this is some long term gambit to make Tesla in a better

situation. If anything, it's actively damaging the brand and distracting the CEO. We've seen that Elon Musk has alienated a lot of people on the left by supporting Donald Trump. Then he's alienated a lot of people supporting Donald Trump by having a big fallout with him. And during that time period, he managed to swing around Europe and alienate a lot of people there, which were some of his biggest customers.

Elon Musk's involvement in politics has overall been a complete unmitigated disaster for Tesla. The company would be better off if he focused on Tesla. And I believe this puts Tesla investors in a very difficult situation. They have ACEO, that's a legendary CEO that has the ability to lead this company in the right direction, but he's continually focused on other ambitions, and that is playing into the company. The big winner of this, of course the entire time is Uber.

Uber investors are very satisfied with what Elon Musk is doing. Uber investors have ACEO that's strictly focused on leading the company, integrating it with EVs, making sure that they become the de facto robotaxi network. While Tesla stock is down nearly 8%, Uber stock is up nearly 2.2%. We look at Tesla on the full year basis, we can see that the stock year to date is down 23%. We look at Uber during the same time period. Uber is currently now up 52%

year to date. I don't know how long Tesla investors will continue to tolerate Elon Musk not caring about the company, focusing on other things and in some ways directly sabotaging their portfolios and gains. But I think it's just a matter of time. We're already seeing discontent with people like Dan Ives, Gene Munster. We've seen some funds already pull out money that they are planning on investing in Tesla.

And I think we're going to see more of that fallout in the future. Now moving on, I'm going to highlight a stock that I believe is a story of innovation, one that's becoming more and more dominant every single year. And that's the type of companies that I like. Looking at innovation is a part of my investment criteria. Although it's not necessary for a company to innovate to have good returns, you can have ones that just kind of do the same

thing over and over again. Companies that do innovate and invent and create new things typically end up creating a lot of value for shareholders over time. These are companies like Amazon or Google creating leading AI models or always innovating like Amazon.

So when I look at these type of companies, sometimes you get focused on the bigger, larger market cap companies, the Max 7, you know, all these wonderful companies at the very top, but they're not always the most innovative in the market. You can take for example, Apple. Apple has struggled with innovation. The updates in the iPhone are becoming less and less noticeable over time. The new product launches like the Apple Vision Pro have been

mostly a flop. They haven't gained a large market share and Apple seems to be stagnating a bit. While that's happening, there are much smaller companies, in fact, one that I'll highlight right now that I believe is incredibly innovative and it's one that you may not suspect. Shark Ninja, the combination of both Shark company, the one that makes the the vacuums. You know, they make a lot of different vacuums as well as different products.

And then Ninja, which makes tons of products from healthcare, beauty, lots of foodie products, different food gadgets. This company combined to form what I believe today is one of the most innovative companies, and I say that not ironically. It is incredible what this company's actually doing. This is a video given to investors highlighting what this company's actually doing and how important they're becoming. Shark Ninja's a story of innovation and we've been at

this for over 20 years. Our business started with. So they have, they have these things which are like, it's like a blender built into a, a bottle. So you, you blend it and then you just drink it straight from where you blended it. Like you don't even take the thing out. So it's, it's just a completely portable blender. I don't have one of those, but I, I, I see them, I see them being sold. They seem to be quite popular this.

Started with cordless sweepers, steam mops, irons and today we go. The the air fryers, those are huge. I mean, they're they're probably one of the most popular cooking items ever made and I think for good reason. They are incredible. They do a bit different than a convection oven. If you haven't tried out an air fryer, I think you're missing out big time. But Ninja in particular with the shark Ninja brand has capitalized on this.

Every time I go into Costco, I see a Ninja branded air fryer every single time. And the only reason that Costco keeps them on the shelves is because they keep selling They stop selling. They would no longer they would no longer be ordering them back at Costco. Go to. Market under 2 multibillion dollar brands that we created called Shark, which is a market leader in cleaning home environment and beauty and our. Yeah, they also have a lot of beauty items.

They're they're gaining market share in beauty, which is an area that I would not think Shark would be a part of. It seems like it would be difficult to go from vacuums to hair products, but it seems like they're making that leap. And our Ninja brand, which is a market leader in kitchen appliances, outdoor cooking appliances, other outdoor products. The Shark brand is in 14 different categories. The Ninja. Brand is in 20 different categories.

It's coffee makers, it's knives, it's cookware, it's ovens, grills, it's outdoor grills, it's air purifiers, it's hair care, it's vacuum cleaners, corded, cordless and robotic vacuum cleaners. We have one of these too. We got, we got the little Shark matrix vacuum. I don't know where it is one of these things, you know, it just goes around and vacuums your carpet. If you have the, if you pick up stuff off the floor, it'll go through and vacuum it. They work quite well.

Shark has one that they use by the way, they use LIDAR, so that expensive technology, they use lighter on it. Many of these use a combination of sensors. They use LIDAR. Some of them are vision only, some are Lidar vision. Other ones even have sensors to identify what type of floor you're on because they'll switch from a mop to a vacuum. Like, if it knows it's on a carpet, it'll vacuum. So these are getting quite advanced. And I believe that this is where

Dyson has missed out. Dyson fell behind in the robot vacuum game. That's what every millennial in Gen. Z wants. They don't want to vacuum their own floors. They want a robot to do it. And Shark Ninja is on top of this. Shark has all sorts of ones. They've really gained market share in this category. They're on the forefront of all the trends, all of these home items. And I must ask, just just pausing here, why doesn't that have an Apple logo on it?

Seriously, why do we not have an advanced integrated Apple robot vacuum that you can control with your iPhone that's part of the ecosystem that that's sleek and well designed? You know, they couldn't figure out the the cars. Maybe that's just a little too intense. Maybe there's too much liability. People get killed in cars. But Apple could have certainly made a stab at it to do a vacuum if they sold 100 million of those. How much does that equate to?

These things can sell for four hundred, $500. And I see it as a massive trend. I really believe five years from now, nobody's going to be vacuuming their floors. The sensors are so good. Everyone's going to do it by vacuum. But Shark came in here. These other companies came in here and adapted and they capitalize on this market before the likes of Apple, the ones that should be doing this. Vacuum cleaners. We sell our products today in 32 countries, 70 million products a

year. We have hundreds of millions of consumers around the world. Others can identify problems, but we can solve the problems that others can't. Just in the last three years, we've entered into 19 new categories. There's real innovation. Before this year, we never made it home. These things are now they're just everywhere. The they have two different ones. They have one where they make you make slushies with them like

this one. Another one you can make ice cream with it. Those are two more shark products that they or Ninja products that they invented and they're getting on the shelves of Costco. They're getting on the shelves of Walmart. They're everywhere in people's households now. And these things are not cheap. They are premium items. This company is inventing all new categories, creating new home products all the time, and I'm seeing more and more of this

in my household. I don't have one of these but I keep seeing more and more of it. We never made in home slushies, we never made in home espresso, and we're only getting started. We work for one person, which is the consumer. There's no shortcut to success. It's earned one product at a time, 1 five star review at a time. When I look at this company, I'm impressed by how highly innovative it is. A lot of this stuff just doesn't exist and they're coming up with it, making it viable.

Products entering into new categories. And this is what I expect to see from top tier companies. When we look at another product here, This is one that my wife tells me she wants. She wants this thing, and I didn't even know that this existed. Now I've seen this type of things at different parks like Six Flags or sporting events where you have a fan tied to cold water and it mists you with cold air. So it really cools you down during the hot summer time.

Now Shark makes this type of product. They have a fan here you can see it's, it's misting these people with ice water. You fill up this thing with ice water, you hook it up and then it, it siphons the ice water up. It pumps it up and then shoots it through the fan. So you can have this outdoors. It says it can cool up to 70 feet across and you have yourself like a sports cool Mr. for outdoor activities and that mist fans a very successful

product. It has 4.5 stars on Amazon and they sold 10,000 of them in the past month. That's just on Amazon. Not to mention they're huge retail outlets. So I'm very impressed by this company's ability to continually innovate. Not to mention the past five year performance is 150% and that's starting at a bad time. If you bought the dip right after that, it's more like 200 at 300%, but even at 150%, this

beats out Google's performance. Shark Ninja has outperformed Google over the past five years and it trades at a 24 PE ratio. Now though I'm very impressed by this company. What I believe it lacks right now is at least a deep Moat, an operating system to tie itself together.

I think if they integrate their products more into a smart app, if they make a more unified, they have some way to tie consumers to their name brand loyalty, they'll be less reliant on just purely innovative progress in the future. But I do believe this is a stock worth of watching, and I believe many investors could do well in it. That's for this episode. See you in the next one.