Jim Kramer has advice, so get ready to do the opposite of that to Wi Wasserman. Schultz apparently caught in a violation of the Stock Act violation. We'll tell you about her three hundred and thirteen percent bump since her trade, and we'll talk about this with Zach Abram. Also might touch on the mayor of New York or the likely new mayor of New York. He's got himself a plan, a bold one. Zach Abraham joins U, Chief Investment Officer, Bulwark Capital Management.
The Todd Herman Show is one hundred percent disapproved by big pharma technocrats and tyrns everywhere from the hind mountains of Free America. Here's the Emerald City EXI.
Todd Herman. Today is the day the Lord has made, and these are the times through which God has decided we shall live. It is wise count today. Zach Abraham joins us. Zach, Welcome back to the Todd Herman Show, starring No Let's say it this way. Welcome back to Zach Abraham with Todd Herman.
I didn't think it's I think it's the other way around. But I'm the side this year. But no, good, good, to be back man plenty to talk about obviously, So.
Jimmy Kramer and I don't even get this. I'm normally I can kind of sus things out by anything.
Uranium.
Is this because Iran? Is this just because Jim Kramer.
It's because the chart broke out? Okay, Now, to be fair, that's it to be. To be fair, we have had uranium as a staple in our portfolio for probably the last five years.
You don't say precious metal.
Yeah, this is so let me give you. This is why if you want to listen to your Kramer at home, I would urge you not to. Okay, all right, So perfect example. So Camico for those for those at home, picker symbols CCJ, they are by far the biggest supplier and contractor of uranium outside of Kazakhstan. Okay, so they're they're the biggest company. They're kind of the bell Weather right yep. Jim Kramer is talking about everybody go buy uranium.
When we got into Camico, we got into it about five or six years ago at about eight dollars and fifty cents a share. Today it hits seventy one eighty seven. And now Jim Kramer is telling you to go out there. So it's only nine xt since we bought it, but now it's a buye if you want to know Jim kra like, there's Jim Kramer right right. This is also this is also why this is also another example of why in the short run it can be so tempting to chase the things that are running by the breakouts.
But this is why we believe in value investing, and and sometimes it takes a while, sometimes it's going to be frustrating. But when we were back buying Camico at eight point fifty, it was so bloody cheap. The only thing you were worried about was what would be the catalyst to get people to notice the stock right. And I'll be honest with you, it was a frustrating trade for the first two years. But then you look back six years and you know, a nine x return in
six years isn't too bad, Todd. I'll take that annualized grade of gain right right, And it works over the long run, and that's how you're going to get big wins. And that's how we've gotten the majority of our big wins. Unfortunately, it's just become a very unpopular way of investing because
everybody is so short term minded. But it's still not going to be how you find your biggest wins, and it's certainly not going to be jumping on the Jim Kramer bandwagon after nine x returns of already been name.
Let's tell you a second. He did a feature the day about business ideas. He's trying to help young entrepreneurs out, and I'll tell you an ID he had, and I'll see what you think of this one. This is a good opportunity to talk about this halfway webinar you're doing. It's you're looking at our country as if people's retirement accounts are sports teams, they're financial advisors. How are they
doing if they have a fiduciary, big difference. Fiduciaries have to put their their financial interests behind ours, your fiduciary at Bulwark. So you're looking at it halfway through the year, and then you're gonna be looking at risk profiles, costs. How you guys are always looking to cut costs? Can you give people any like maybe hint in this because the webinar's free, but these things like they fill up. It's Know Your riskpodcast Dot com to register for this
Know Your Risk podcast dot com. Just give someone just maybe a tiny little tease, just a taste of the cocaine.
Yeah. So, in investing, I think one of the biggest misnomers is that there's a right way to do it and there's a wrong way to do it. There's a lot of different ways to do it. But the thing that has always re resonated with me, and I think it makes all the sense in the world is our job is not to sell you a B and C. What our job to do. What our job should be as a money manager is to accomplish your goals while taking as little risk as possible.
Right.
So a perfect example of this, now listen, people hear me say this, Like, we have plenty of clients that don't use these products. It all depends on what's right for you. But a big example of what makes us different is we have we always used to own stocks and bonds. Okay, interest rates went to zero, so bonds lose money when interest rates go up. When should you get out of bonds, I'd say when rates are zero, it's probably a pretty good time.
Yes.
So instead of using bonds, we used our bond replacement strategy if it was appropriate for somebody, and we use something called the fixed indextinuity. Now they get ranked on a lot and people take shots at them. But the one thing I'd like people to remember is one of the reasons they take shots at them is because everybody taking shots out of them is an investment company. Okay, Annuities are an insurance product.
Yep.
They Investment companies can't charge fees on insurance products. So that doesn't mean all. Yeah, it doesn't mean all insurance products are good. It doesn't mean that. It doesn't mean
that you should have insurance products instead of stocks. Yeah, But what it does mean is if I've got a bond that is paying me less than the inflation rate, and I am paying a management fee for that and interest rates are zero, and I'm doing that because that's a safer investment, why not go buy this investment that has no fee, that averages you know, four to six
percent a year and is insured against loss. So a good example of this was in twenty twenty two, the worst year ever for bonds, when bond portfolios were down thirty to forty percent. Our clients didn't lose a dime, right, Yeah, So now again, we have plenty of clients that don't use those products. It's not right for everybody. But my whole point is saying, we're looking at a portfolio and going, Okay,
what do you need to accomplish? What out there? What is the best way we can build this portfolio to insulate you against risk but also give you the most upside at the same time, right, because that's the other thing. Oh, you're you're a nuity. Didn't lose And I'm like, well, yeah, but you know what that means. That means that when that's used with the stock portfolio, not only did it not lose, but you have a higher net return, right Like you made more money, taking less risk, paying less
and fees. That should be the goal, And those things change from time to time, and so you've got to stay up on it. So our attitude is, hey, when things are like this, we do it this way. If they change, we do too. You know, right now, a lot of our clients have way more exposure to value type stocks, international type stocks, commodity type stocks, specifically precious metals, way more than the average you know, just market oriented portfolio.
Why we're in an inflationary environment and inflationary environments, a totally different type of stock benefits, So you should change your you know, your approach one of the and this is something I keep bringing up, and this is one of the things that you know. This to me, I feel just as adamant about pounding the table on when rates were at zero and people were still in bond portfolios, where you're sitting there going you are in a can't
win investment. Okay, You're going to sit around and make less than the inflation rate until interest rates go up and you get hit for twenty five to thirty percent. I was saying that since twenty fifteen, that's exactly what happened. Right you flip around, you have a very similar dynamic
right now. Not only are you in an inflationary environment, but because this past period of time has been so dominated by one type of stock, the kind of stocks you need right now also happened to be generationally cheap, which is a wonderful opportunity. And so you know, it's not just about avoiding risk, and it's not us saying
the sky is going to fall. What it is saying, though, is there is a generational opportunity in so many of these types of things to buy them at valuations where you have never seen those types of things is discounted to the normal US stock market than they have ever been. So I like to buy things when they're really cheap.
It's a weird investment strategy, but it might work out. So if attend this halftime webinar at Zach is going to look at the country's performance. Halfway through, go to Know Your riskpodcast dot com to register investment advisors services up through check Financial LLC and sec Richard Investment Advisor Investments volve risk can not guaranteed past performances and guarantee
future results truck twenty five. That's two five two. Since we have bagged Don Kramer a little bit and had some fun to expense, I did want to tell you I saw this feature. Apparently he does, and it's sort of to help out young entrepreneurs. And this was an interesting theory. He was talking about taking something that's sort of commodity, like just available anywhere, building an experience around it,
like a you know, kind of a place. I think he called it a third place you would go and it would say And what he did is he said coffee that you could really kind of.
Okay, that's like literally, that's literally like Starbucks. I mean he's a little he's at themselves the third place. Like that's literally what they call you know that.
I know you know that No, I was, I was, I was not. I was babbelon being you.
He didn't.
He didn't really do that. Okay, but but you bought it because it would be very Cramer esque. Okay, let me run this by you.
Uh.
Look, is a guy is guys that are doing deep research all the time and really trying to find nuggets for our clients. It kills me because he's always telling these people to buy this stuff after all the money has been made right, and when it's dirt cheap, he doesn't like it. When it's expensive. Is he dirty?
I mean, you can't say I don't don't don't answer that legal problems, so I don't think something you's just think he's dumb.
I don't think he's dumb. I think that Jim is a I think he is a horse for a course, and I think, like a lot of investors for reasons that I will never understand, adapt completely to the environment they're in and forget all the lessons they've learned before. Why that happens every time? I don't I've never understood it. But that's you know, like the uranium thing's a perfect example.
Right.
We were buying uranium when literally the the price of uranium was was one third the production cost. So you knew it had to go up or it wasn't going to exist.
Right.
He didn't want to buy those stocks then because the stocks weren't doing well. And you're like, that's that's where buy it, you know, So you know, yeah again classic And guess what. Remember when I told you Camico, right is number Yeah, so he's like, buy anything uranium. One of the things he listens is you rn M. That's a fund, right, guess what the number one holding of you rn ms? I have Cammaco CCJ. And so you're just like, it's my it hurts. He's good on the TV.
I mean, I'll give him this credit. He's good on the TV.
He is. This is exactly. And now I'll tell you a real life story too, really short, same thing coming out of covid. Okay oil goes negative thirty eight. Now that was pretty wild to see, right. I remember a conversation we had in our office that day where we go, all right, boys, plug your nose, we're digging deep, load up on oil. Okay.
Yeah.
Everybody's like why and I'm like, cause they're giving it away, right. So Jim Kramer comes over out the next day and he goes, now, oil's uninvestable, and I'm going, you, you want to buy that sixty, but you don't want to get it when it's good. They're giving it away. Yeah, it's uninvestable. And so literally we heard that and we went double down. We increased our oil holdings on him, saying that because sitting there going it's never been better,
it's never been cheaper. You know, the world needs oil. You think oil is gonna stay it twenty dollars a barrel?
Anyone ever? Does anyone ever confront him? Does he ever go to industry meetings? And does anyone ever like on a panel I got to tell industry. Okay, So I said this in a super rude way, and I deeply, deeply hate that I said this. I would love to figure out who this man is. I would love to go apologize to him. I was not to discappled Christian
at the time. That's no excuse. I'm on a panel in Hollywood and there's a guy from a major agency there and we're talking about Facebook, okay, And I was in a period of time where Microsoft had asked me to study Facebook. How is this singing to make money?
What is it?
Is there any tech? What's our role in this? Should we buy it?
What should we do?
And so I'd come back with this recommendation, and what I was saying is, look, this is a data and an app play and that's what it was at the point. They have so much data, but it's behavioral data. You can't think of buying that they're getting in terms of how people interact, when they interacts, There's looks like they're looking at emotional data. There's a whole it's a massive data suck, data vacuum. So I'm on this panel and the panel leader, the moderator, says, do you think Facebook
will be a viable platform for advertising? And this guy with a major international ad agency says, you know what, that really remains to be seen, That means to be seen. And it came to me and I said, well, are you asking me if the world's number one social platform that has data on when people are going to do
a thing together? Such as twenty people going to a movie together, all of them are going to need gas, probably a place to eat, going on vacation together, that there are people who joined this support group for pre diabetes. Are you asking this, I don't know.
This is how rude it was.
Are you asking me if that's going to make money? That is the stupidest question I've ever heard in my entire life. And anybody who doesn't see that should never be in the advertising business.
Again.
Now, I mean, that was very, very rude, But this was in.
Hey, listen, you were dead right and all to the point where I was. So I learned I learned that same thing way later than you did, because I all of a sudden, I remember, I just kept it was social media, right, and it was just tech, and it was hype, and I just kind of dismissed it, dismissed it. And then all of a sudden I was reading and doing some research and I went, oh, my goodness, this is the greatest curator of consumer data that has ever
been invented. Yep. Yes, Like, and you realize all of a sudden, You're like, they know where you're going, they know what you're buying, they know what you're wearing. They know who you're doing it with, they know who you're shopping with, they know what you're using to buy it with. Right They literally they know everything. They know when you do it, they know what types of the year you spend.
More like you're putting it all on Facebook. It yes, you saw it earlier, and I did, man well, I was assigned to go look at it.
And then when when we had a product at Microsoft, I don't remember what it was called, there was MySpace. I think it was called spaces, and this is where you would go store notes, you know, ideas, are things you wanted to do, snippets of writing you're working on, pictures, photos, songs that you liked. And I looked at this and I remember going back to the guy who was running
this and said, I've got a question for you. Why not take this and integrate it with Messenger so that everybody can see everybody else's stuff and you could share this with your friends. And he goes, why so you could share it? But but this is what that's that's we don't see it this way.
This is true.
This is a storage place, this is a utility. And this was the same company I begged them when when when Facebook started to hit, I begged them to buy classmates dot com member that site yep, yep. Why it's not make any money, Because it's not making any money. They've got all this data, they've got everybody and where they graduated from, and they don't let them interact. All it is is you can you know, you know, sometimes go scan and see who's going to the reunion. They've stopped.
They sell reunion books, they sell pictures of what you look like that and now they haven't said visit with your old high school friends. This could be a legit Facebook competitor tomorrow. And these mindsets, man, these mindsets people get. You don't work a software company and you know we're going to produce productivity software. That's great, be a productivity software company. Then don't pretend to go be a media company. Don't do that well.
And to get to your point, I mean in corporate America is very much the same. But investing too now and obviously like you can't be a contrarian just for the sake of being a contrarian, but contrary, it's but when you when you're chasing popular, when you're just following the crowd, especially in investing. If you think about it, Warren Buffett has a saying which nobody ever really thinks about, But it's so true that the number one thing that defines the success of an investment is the price you
pay period. Right, Like that's the people don't think of that, but that is what defines it.
Right.
So, uh, even if that asset goes down, how much are you gonna lose, depends on what you bought it for. If the asset goes up, how much you're gonna make, it all depends on what you bought it for. Right, So when do you want to buy things? By definition, you want to buy them when all the guys like Jim Kramer aren't talking about them because by the time they're talking about them, right, because they're chasing what's hot.
Right now, you're gonna have to pay, like for in the in the case of chemical, by the time Jimmy came around to uranium, that stock at already nine xt right.
Ye.
By the time he came around to oil, oil was backup at eighty a barrel and not fifteen where he said it was uninvestable. So like that's just the there's times where you see things. Why did we jump all over the oil trade? What are you joking? You think oils are gonna keep giving it away? It's gonna stay at twenty dollars a barrel. You're an idiot. How long do you think it's How long will it take to bounce back up? I don't know, but they're giving it
away right now. So we're going to back up the truck.
But there's another way to not rocket science. There's another way to invest and this and I don't look you. You manage my money, most of it for a reason, my fiduciary, But there is another way. And I'm going to challenge you here, okay, And I don't like doing this, but I'll do this in just a second. So Zach, and one of the things that Zach and I both agree on is that politics is downstream of culture, right, and that culture is downstream of God Almighty, because God
Almighty is upstream of every single thing. And Angel Studios appears to believe the same thing. Angels makes movies that's absolutely affirm faith. They're absolutely family valued, and they've done this despite the fact that they were told you can't do that, you can't build a family oriented faith oriented studio that can't happen. They it breakout movies like Sound
of Freedom, breakout movies, or breakout programs like The Chosen. Recently, they took on Snow White, they took on this ridiculous Pixar movie that failed, and they won with King of Kings that is right now streaming on their platform. It was no longer in theaters, though it dominated theaters, and it's part of a very important movement that you should invest in. If you pay any money at all from media, any subscription money at all from media, some of it
is stuff that doesn't even abide by your values. Like you probably have a Netflix subscription, you might have a subscription of other platforms. You might have a subscription to a gaming platform. So why would you not buy a subscription to the Angel Studio Premium Guild membership because you get much much more. Number One, you go stream King of Kings tomorrow, great story about Jesus Christ and an
animated feature that will draw kids into it. Number two, you get to get two free tickets to any of their theatrical releases every time they come out. Number three stream all their fan creative programs and go back and watch your favorites like Sound of Freedom and a whole bunch of other shows that they're bringing in, all of them around faith and family. Then there's this. We vote this audience, the million people who've joined this, We vote
on the movies. They pipeline, they make, they distribute, they promote. We're basically running the jerret So it's angel dot com slash todd. That's angel dot com slash todd. So, Zach, there's one other way to do this, and I get this is it's a it's a narrow path, it's difficult to get in. But what you do is you become Debbie Wasserman Schultz. So that's that's step number one. And let me run man, okay, man, let me run this through you. This is from Quiver quantitative breaking. We just
caught another Stock Act violation. Representative w Wasserman Schultz just filed a twenty twenty four purchase of new gold stock NGD. She's the only member of Congress who've ever seen by this stock. It has risen three hundred and thirteen percent since you're trade. You just didn't dag that Schultz through what what?
What? No?
I think you've just reacted physically well yeah.
Well, because first of all, I love seeing congressional people buying gold miners. Yeah, that tells me that.
That's yeah all over it. So this is a gold mining company.
Oh yeah, yeah, yeah, yeah yeah.
And uh oh look Zach, Yeah no, I'm just yeah, you're all you're all a Whippley woodlash Now or whatever his name is. You're all rubbed your fingers together, Mary Burns. Excellent.
Yeah, because people like it and it and it's crazy how blind the market is because people do not understand. Like, I'll give you one of our top holdings. In the last year, their cost of production per ounce has gone up five dollars. Over the course of that same period of time, the price of gold has gone up eight hundred Okay, So like these guys are throwing off margins that are more than double Google okay, as a gold
mining company, and nobody cares, nobody wants to own. These things are pumping out so much free cash flow it makes your head spin and no one's paying attention. I just I love it. I'm sorry, I digress.
Wait, actually was looking at our sub stack and I just saw a d Wasserman Schultz as a premium subscriber. Oh yeah, she might be listening to listening to this talk about this. This came off of your This came off of your Twitter. Sometimes you are show prep, or at least your Twitter is, and you you you posted something about or you reposted something about bitcoin, and we
talk about this from time to time. And I had a discussion through the day because there's in this gym and there's a young guy there and I'm warming up, and hey, what do you do for a living?
Oh?
You know podcasts and radio. Oh that's interesting, et cetera.
What do you do?
Well, you know, I'm trying to be a professional athlete, so work out here because James works out here. But really I'm supporting myself through bitcoin. I go, oh, okay, so you're successful off this. He goes, well, you know, my dad bought bitcoin really really early, and he died and passed it on to me. So I'm kind of managing the portfolio. And so what does that mean, Well, I sell a little herd there.
This is what he said.
So apparently dad bought a lot of bitcoin, because I don't think he's stewarding it as much. It sounded to me like he's spending it, which is different.
This is from Sea.
Wolf Capital talking gold Bitcoin meals under this on a podcast with D M.
Moses.
Bitcoin's a hard one for me. You know, I much prefer gold over bitcoin. You know, I think in the near term the flows into bitcoin are going to keep going. When the flows stop, it's over. I mean, there's nothing else but flows, right, So I just but I think that the central banks are going to keep buying gold. I think that, you know, we have a nice pladium size in the pladium or platinum, which is I think
now a substitute for gold. So if you go and get a jewelry, right, much cheaper to buy a platinum ringular or a lab diamond, yeah, or a lab platinum in a lab diamond.
Yeah, there you go.
There you go, platinum in a lab diamond seting, go out, perfect quarter.
You see that.
It's great.
Tell my wife what you should be making these days?
Actually making that.
So he's talking about the flow continuing into bitcoin, but governments and big entities continued by gold, like wa Washerman Schultz, she's buying minors. Now does bitcoin?
Does?
Is there a possibility? I mean I guess everything's possible, but is there a reasonable possibility that's bitcoin? I mean ultimately fails for real, I can't imagine, but could that happen?
Yeah? Well, in funny side note, actually, so that so the two guys getting interviewed there were Porter Collins and Danny Moses. I've actually had both of them on our podcast before. And and the reason if that name that those names sound familiar, they are two. They are two of the animals. Well, one was an analyst, one was a trader on the team in the Big Short where Steve Corell was the boss. Right, remember, they're like, why why are they bragging? Or no, no, why why are
they why are they why are they confessing? They're not confessing, they're bregging, right they So if you go watch that movie again, they talk, they say the name Danny Moses, Porter Collins, They're they were on that Big Short team that had that Big Short, big win. That one of the reasons I was laughing in is because when I interviewed them, we had a ridiculous amount of crossover and our portfolios, like we were drawn to the same things. And he immediately said, we've got we've got a position
in platinum and Palladium. We do too, So I I just they're they're great guys, and I love the way they think about things. But could bitcoin go to zero? So in investing, there is something that we look up look at called intrinsic value. Okay, so we intrinsic value can be a lot of different ways. Uh, we bought a we bought a South American airline company recently, all right, and when we counted up the the value the net value of all of their assets, so what we call
their NAV or their net asset value. Right, So it's it's equity assets minus all liabilities. That equalled about eighty five percent of their total market capitalization.
Right.
So I would look at that and say, okay, that company has an intrinsic value of somewhere around eighty percent of its market cap, meaning we could part it out and sell the parts for this much.
Right.
That's the that's the internal value. The one of the issues that bitcoin has is that its internal value, its intrinsic value, is zero. Now, everybody that owns bitcoin, now keep in mind, we own some bitcoin in all of our client's portfolio, is a very small amount, and we trade it. Recently. We sold it at one oh eight, probably three or four months ago. The last time it was there. Bitcoin got smacked down, We picked it back
up at seventy eight, wrote it back up. And the reason we trade it like that is because it does not have intrinsic value, meaning I'm not gonna sit there and hold it while it drops. And now when I say it doesn't have intrinsic value, I do not mean that it doesn't have any utility. Right, it does have some utility. It's it's a wonderful way to transfer money from one part of the world to the other. But what is its intrinsic value? It's zero, right, So could it go to zero? Yes? Will it go to zero
at some point? I will be shocked if it does not. And the reason I'll be shocked if it does not is there is no asset on the face of the earth that has zero intrinsic value that doesn't eventually go there. People say, well, what about gold. Gold has a Hey, if you could buy gold for one hundred bucks an ounce, it has a ton of intrinsic value, right like, think
about what gold. Think how useful gold could be like in the maritime industry, right like if gold was cheap enough to where you could coach somebody's out drive in gold and they never have to worry about erosion for the rest of their lives. I mean, I'd be all over that, right. What about electricity conducting if gold was cheap would yes?
Right?
So gold has tremendous utility and tremendous intrinsic value, meaning if the price of gold dropped to a certain level, you would get it. See, you would see it get used for all kinds of stuff. Not to mention it's fun, it's nice to look at, right. But what is bitcoin? And again this is coming from a guy that's owned some This is coming from a guy that when it first came out in nine said, quote unquote, this is
a shot across the butt bow of fiat currencies. But if you want to get down to brass tax and you want to be intellectually on now, that doesn't mean you can't own bitcoin. But this is where I tell people, be honest with yourself about what you own to thine own self. Be true. Right, Know that to a certain degree you're playing with fire. And when I look at people that are sitting on giant winds of bitcoin, they look at me and go, you're saying you should sell it?
And I go not all of it. But if you you have a big life changing win, if you have one hundred x win, if you have a two hundred x win, why would you not memorialize some of that win and put it into assets that do have an intrinsic value. That way, regardless of what happens. You know, if you own five bitcoin and bitcoin goes to one hundred million dollars.
You're gonna be in good shape, decent shape.
Okay, yeah, okay, So doesn't all have to be one or the other.
You know, this is how and you tweeted this guy named junked my Chronics wrote, someone said, I don't get I don't get bitcoin. This is a Twitter covers I don't get bitcoin. This guy writes back, imagine if Keeping your car Idling twenty four seven produced Solve Seducos, you could trade for heroin.
I had to repost that because that was so funny, right, Like, I mean, because that, if you think about it, that's effectively what we're doing.
Yeah, right, yeah, I mean, that's that intrinsic value thing. I mean, it's not it's not the same thing. But Ray Kroc, who was an unbelievable scoundrel, can we admit he was a just greasy scoundrel of a man. Smart, oh my gosh, smart vicious. He used to say about himself, it's croc with the K like a you know, like a crocodile, but not spelled that way, right, crocodile, not
spelled that way. He used to have fun going out and making fools of business NBA students, and he'd get up and offer them money and a bunch of it. Who can tell me what business I'm in? The raised their head. You're in the people business. No, wrong, you're in the service business. No, I guess food business isn't right now. You're in the business of pleasing families. No, I'm in the real estate business.
Right.
I'm one of the biggest holders of real estates in America. And that wasn't his idea. By the way, that someone he was about to fail, and someone came to him and created the McDonald was Leasing Corporation, and they rode into the agreements with the franchisease. You had to purchase your land or leach your land through the McDonald's corporation. And that was the big turn. And he made a point, I owned real estate in Times Square, New York. I own real estate in downtown Los Angeles. In Tokyo, it
was a real estate play. So can a McDonald's franchise go to zero?
Sure?
Right if they just do hold the horrible things. They get bad reviews, they make people sick, they make porrible dis iss decisions, but they've got that intrinsic value of the land, and that's the thing about bitcoin that it doesn't have. We'll continue to talk with Zach about this because speaking of real estate, there's a brilliant plan the likely new mayor of New York City is revealed, and we'll run through this with Zach and maybe this is
an investment opportunity for us. In some former fashion. Zach's also joined me in Mexico, went down to Port of Art to Mexico with me to go to renew Dot Healthcare, and we both had different outcomes. I'm at a different time in my trim and I went down because my lower back was really bugging me. In any debt lift over like two seventy five, my back clicked. It felt like my if any decently heavy squat, it felt like my s I was shifting, which in your SI joint
that's not a good feeling. By the way, with weight on your back that it feels like your backbone is shifting. Not a big, not a fun thing. I get a lot of pain doing this. So now I'm about three and a half months after treatment with the stem cells from umbilical cords in this world class lab. I've drawn from this world class lab at Debt renew and I have done now workouts with let's see deadlift at two twenty five. I think a total of fifty reps at that and then cleans and jerks in this and jush
sit ups. Not a hint of clicking gone. And I'm not even through the rebuilding phase, Like my rebuilding tissue phase doesn't end for six months. Already changed. So and the numbness I was getting that's gone. Now this is just me want of the lift ways. You have a situation in your life where you need to move, you need to work, You maybe can't use your hands, You're you're at a different stage, and I don't think you're the clicking stuff. But how's it for you right now?
I you know, it's feeling, it's feeling really good. I the knee isn't. Everything feels better than when I went down there for sure. The the some of it is some of it is. One of the tough things you realize when you get some of these things is it creates some body imbalance. So my knee is not where I want it, But that's because I haven't gotten the
imbalance part of it figured out. Mean I was, I was out shooting hoop with my boys last night and I realized I was just putting a lot of weight on my left knee in a in an abnormal way, and it has to do with kind of being off kilter. But man, the I went and did yoga for the first time yesterday. I got back on my yoga. Yeah, felt phenomenal. Woke up back felt great. So I you know, yeah, I just if anybody's dealing with some of those long, long term injuries that are bugging you, yeah, I can
recommend them enough. And it's also just a it's also an enjoyable experience as well. Great people.
Yeah.
Yeah, And they really like the lab. And you look at that lab and realize it's one step below a biohazard lab. It's a big did they're doing a webinar, Zach. I'm going to join them for this. It's a July eighth to two o'clock Pacific. You go to the renew website register for that. You have to sign up, and they're gonna have their caregivers there. Steve is gonna be there as a managing partner. Some of their docks and stuff are going to be there. I'm gonna be there.
It's renew dot Healthcare r e n u e uh dot Healthcare. So this is then likely.
Well, one other thing I think it's important to point out too, like they don't sponsor me, right like, so I went down there and paid for my treatment like everybody else. Yeah, that's won everybody. You know, when I'm repping them, I have no business affiliation with them. I went down and paid like everybody else else. I stayed in the same place everybody else stayed. Yeah, and I do it again. As a matter of fact, I will. I will go down there again at some point.
Thanks for pointing it out. And that's why I hope you take your wife next time, because we do this time.
But yeah, yeah, I thank you for.
Pointing out that is important our e n U e dot healthcare.
The new.
Nah I keep saying he's the new mayor. That's not a FATA company. It's Andrew Colma's going to stay in the race, and I think that this is just the I think Democrats know if this guy gets in, he's going to tank New York City and he's going to create New York is a Los Angeles two point zero. They know that people are watching this, They know that outside of the Manhattan Corridor, this guy's scene as nuts. Here's his plan for housing in New York.
We can establish community land trusts to gradually buy up housing on the private market and convert it to community ownership. We can give tenants a right a first refusal to buy out their landlords when buildings go up for sale. And we can fully commit to a new era of social housing, ending subsidies for luxury housing development and using our wealth to build beautiful, high quality social housing projects
that offer good homes and strong communities to everyone. We won't decommodify housing overnight, but we know what we have to do, and we have history to guide us.
That's a very very smart phrase, because who doesn't like housing, who doesn't like society, who doesn't like being social? Very very smart. But I love this as well. We're not gonna then, that's a popularizing phrase, so he's using that phrase to make it seem friendly. Then he goes and obscures it. We're not going to decommoditize housing right away, so then he uses a more complicated phrase for what he intends to do. Is there a single model where
this has worked? You guys did this in Seattle. I was there when this began, and they started buying up hotels and putting street people in the hotels with no rules like drink, sex, traffic, drug traffic. Do it everyone. Is there a model in the States where this has actually worked anywhere? And I'm open to it. Maybe there is.
Not, not in the States that I'm aware of. I mean, you could maybe point to some places in third world countries where you came and instituted some stuff, but no, not in a free now the one just to just to be fair and try to be amimal about this. The one thing that I think is somewhat interesting that that I don't think and I'd have to look into it. But giving current tenants a first ride a refusal to
pay a market price, I wouldn't have a problem. I don't think I necessarily would have a problem with that, because because it's not coercive, right, You're just getting them a shot and saying, hey, would you like to would you like to buy that you know, would you like to buy this building instead? Or you get the ride of first review if you if you put that that language into a lease agreement, I would have no problem with that. So here in lies the issue. It is
going to do a couple things. It's going to be disastrous for the city because perversely it's going to make real estate more rare in the sense that they're going to suck it up. But it's going to be controlled by the state. So I think what you're what you will see is you will see inadvertently way less so apply at the lower end, which will make prices worse or there just won't be any availability. And then it's probably going to hit prices at the higher end, which
means less property tax, et cetera for the state. So it's just basic economics. And like he said in there, he goes, and we've got history and our and I'm like sitting there going which one yet? So history through this idea on the trash heat man, right, like your and and and and and the unfortunate part of it. The unfortunate part about this argument is that it always descends into like, well, that's your worldview, that's what you believe, that's not what I believe, and you go, Okay, I
understand why you're approaching it this way. But this is actual, very basic economics. Okay, let's just picture this in a city that's too expensive to live, which means there is an off balance and supplying to me. Yep, the government is going to step in. Who is not a natural buyer, right, meaning they don't respond to market moves or gyrations. They're just buy it using the public checkbook. They're buying up more land and effectively giving it to people that couldn't
otherwise afford it. Okay, so a that will make those properties much more scarce, right, there will be less supply. Uh. And then on top of it, I remember I got in a debate in college in a philosophy class about social No, yeah, it was philosophy. We're debating socialism versus capitalism. Can't remember how we got out of that topic, but we were going. I was going back and forth with professor because you know, everybody's like, you go to college
to get liberal. I went to college to debate and drive my professor's nuts just because I wasn't much more soist. Oh yeah, this is I was like, this is nonsense. And I remember looking at the class. Oh, hey, guys, stop, let's let's say this. Let's say you got a Street of Dreams that you've been working your whole life to afford,
and you finally get on there. You've been living on the Street of Dreams for a year, two years, whatever, and all of a sudden you find out that the state bought up eighty percent of the houses and the Street of Dreams and it's going to give it to low income people. What are you going to do? Everybody in the class said, we're going to sell the house, get out of there, right. Why Because it's not just the economic dynamic that housing, the quality of that housing
is going to go in the tank. Those things are going to be magnets for crime. It's just it's just unfortunate because the outcome is certain. You don't even need to run the experiment we already have.
If you've different lived around government housing and I have, or next door to it, or in a neighborhood where it's dominated by housing, not vouchers, but housing. Subsidies. If you've different experienced this, there's a reason that what Michelle
Obama called food ghettos, there's a reason they exist. And there was a UCLA professor who set out so look into this with the intention of killing gentrification, because he had determined emotionally that gentrification was a horrible, horrible, horrible thing. And then he went looked at the data. And I want to talk about this too with you in just a second. Sac there's like gentrification of housing.
This is what this is called.
There's this whole idea of independent housing. Now that you have this these independent dwellings in the backyard and you can become this you know, little Airbnb thing. There's also this reality of independent businesses. And we have reserved a slot on this program from day one for businesses that could not afford to advertise here. Alan SOPs is one of those businesses. Okay, here's why it is. Because soap
is a very very low margin business. We do this because we love the mission of Allan's and it's not just the mission. The soap is amazing soap. It's made in America, it's gentle, it's it has no chemicals in it, all natural and it's the mission that we support. It started with Alan thirteen. He's been through about eighteen operations nonverbal because of autism. He was the reason for this because his parents wanted to have a place their son
could work. Ian his brother joins him, Amy, and just to just imagine that you're neurotypical, you're in And this was her. She was in college, neurotypically, doing well, and then she started to get brain fog and have trouble like man, I can't read anymore, and she got autism in her late teens early twenties. She works at Allen's and she's thriving. And the soap is at the core of this. So it's an independent company. It's small. They could never afford to advertise here. We do this because
we love them and we love John. So that's not a sob story by the soap. If you love the soap, subscribe. If you don't love the soap, then just you know, love the people. It's Alan Soaps, Alan Soaps dot Com, slash Todd tempercent off all other products there, Alan soaps dot Com, slash Todd so Zach. When I lived in what is correctly called the ghetto, I noticed that there were no nice stores. That the grocery stores had substandard goods. Because remember I grew up a kid in Spokane Valley.
We weren't rich, far from it. In fact, we were, you know, lower middle class. I noticed that the like silly things like the beef jerkys in the little so called you know, little tiny convenience stores were a day from expiring. Sometimes after that, I noticed that the restaurants had like really decrepit seating and maybe questionable health practice.
Is great food.
By the way, there's a place this guy he knew branding. It was called barbecue. That was that's what it's called. First time it went in there, and the one white dude walking in and I sit down, he goes, want to get you, And I said, uh, I guess I'd like to try the ribs. Seems like a specially. What do you want to drink? I go, I said, die cocouse grape juice. I said no, I said, diet cocyus No, no, no, diet coke with ribs grape juice. So he made me have grape juice. By the way, grape juice and ribs.
I'm telling you something. The way this man cooked these ribs. Incredibly. He cooked them out of fifty five gallon old oil drums. I'm not even sure the oil was out of it. I didn't care. But that was the rawity because the people in the neighborhoods couldn't afford the beef jerkey that had a week left on it. They couldn't afford the name brands. There are companies that they're not predation companies. They know who they're targeting. But the crazy thing is,
and I finally noticed this. I started to drive over to the QFC, the Knights or Food Place when I started to make a little bit of money, and I had my little studio apartment in the true ghetto building where they were drive by shootings. I saw a dead man in my elevator. I knew he had a kid, heartbreaking. The food was less expensive. That was the crazy thing.
I go to QFC. It's better food, it's less expensive, and in the ghetto, they're able to take advantage of people, not just and I'd up saying that these store owners were predators, but no one wanted to be there. It's a long drive to QFC. I had a car, A lot of people didn't. So this guy from UCLA. He did this study and he was looking at situations like this. Okay, well,
the solution's not it's not gentrification. You know Whatady found out, gentrification helps the black communities because these people have held their homes forever. They have no idea they could make this much money. And those who don't sell, they all of a sudden are surrounded by nicer things. Their kids go make better money, they have better job opportunities. Then they get to clean up their houses, and then they start to get hip to Oh wow, you know the
Johnson's up the street. They sold their house for ten times what they bought it for. They don't take that money and say, hey, let's move to another ghetto. They take that money and say, hey, you know what, we have some cash, let's go move to a nicer place for kids, put them through these private schools. He had his whole heart change from this.
Well, I mean, are we making the argument that desegregation isn't better for society written large?
Right?
Because I mean that's because it kind of gets down to a segregation issue, right. The idea is, Yeah, the same ethos that drives this whole idea about being anti gentrification is the same ethos that drives let's bring back black only dormitories on college campuses. Yeah, where you go. And here's the other thing that people if I if I had if I had a if I had a way to if I was talking full a room for young people at college level. Yes, And the debate of
the topic about socialism versus capitalism came up. The one thing I would say to them, as guys, first of all, you're going to learn in life that there is no perfect solution. That what we need to look at is the costs and benefits of each thing, right, and what gives us the most at the least amount of cost. And when you look at capitalism, it is not perfect. There are some downsides to it. Why do we stick with it? Because there's way less? Yeah, right, there's way less.
Will we see some inequality peak up at per cup at times? Yeah, But I'm gonna sit here and look at you and tell you right now, I think the majority of wealth and equality of this country is not something that can be fixed by government. I think it's something that's been caused by government, agreed, right, And and it is this unholy union between government and big business. It's the Federal Reserve has played a key role in this.
People who have the Federal Reserve play role. Well, when you come in after a disaster, right, and normal people's uh, you know, normal people's balance sheets, normal people's credit scores have been wrecked. And in that environment, you dumped trillions of dollars into the market and artificially lower interest rates.
What did you just do?
Okay, you you just excluded everybody because they're they've lost their house, their credits wrecked, they can't buy house anyway. So now the only people that can take advantage of record low interest rates and all the stimulus money you pumped out there are the people that are already rich. And guess what they get to take that zero percent interest rate and go buy up neighborhoods full of four closed houses at fifty cents on the dollar. Right, So
you're sitting there talking about housing getting too expensive. I'm sitting there going you guys NodD adhering the capitalist policies are the biggest reason for housing being where it's at in the last twenty years. Well, so why don't we focus why don't we focus on that?
Well said man, you get heated with this stuff.
You know, man, I do, because when you see the folks getting lied to, yeah, and they're getting told that this one thing that has been the greatest lever to get people out of the mere and the muck of poverty that has ever been introduced, and that you're going to sit there and tell them that the greatest enslaver of people, socialism is the answer. Not only are you wrong, you're a moral boom.
It's good to have you on the show, my brother. Thank you so much for wise counsel Zach Abraham, Know Your Risk podcast dot com. This is the Todd Herman Show. Please go, be well, be strong, be kind, and forget trying. When you stop that trying, just go follow the light of Jesus Christ.