In this episode, we talk about how Palantir CEO Michael Burry is a genius at shorting companies and why it's a good thing. We also talk about why short sellers should be worried about this and why they should not be.
00:01:34.380He puts a chart showing the fact that they're going to be doing – I don't know if he found it or not, Rob.
00:01:39.840The charts that he posted, it showed that he basically thinks that the cloud storage and all – yeah, there you go.
00:01:47.000And the reason why it's gotten out of play because he was on an island and he was proven correct when it came to the bubble in the mortgage environment.
00:01:56.240So that's why people are looking at this.
00:01:58.340Now, every CEO is going to get pissed off when you short them.
00:02:03.280So – but this is something that – the reason why people are paying such close attention is because this guy's kind of gone quiet for a long time and now suddenly another – could this be a – could he be two for two?
00:02:18.720The – is this him breaking down what he foresees happening with him?
00:02:21.920He's comparing it to the tech bubble, saying that there's like a correlation with the charts and everything.
00:02:25.840And then he's – shows the flywheel of the U.S. economy right now, how everything's – like, you know, they're saying like 80 percent of GDP growth has been because of data center building.
00:02:43.140Super triggering because these people, they could pick on any company in the world.
00:02:47.180They have to pick on the one that actually helps people, that actually made money for the average person, that is actually supporting our warfighters.
00:02:56.160And I'll tell you what, though, it's crazy motivating because I'll tell you why the short sellers are constantly getting screwed by Palantir.
00:03:02.080Because every time they short us, we just are like tripling down on getting the better numbers.
00:12:23.020Are we past the point of the Fed even allowing a correction?
00:12:25.400Because, like, I mean, what does a correction look like at this point with everything so built up?
00:12:28.380And, I mean, I think a lot of it, too, has a lot to do with index funds, because the last 15 years, the vast majority of investing has been passive investing from, like, BlackRock and Vanguard index funds.
00:12:37.480So, I think that has a lot of an effect on it, too.
00:12:39.320Absolutely, which is why it's so important, because these leaders are so heavily weighted within these funds that they can have a material influence if they come down.
00:12:49.420You know, Alex Cartman used to say, look, the generals in the market, they drive the market.
00:12:53.940If you shoot the generals, the market really topples.
00:12:56.820So, I'm not saying that this is going to happen, but if you see that, the fact of your point, which is a really good point, so much is indexing.
00:13:04.220If the indices drop, it has a very wide-based effect.
00:13:09.320As far as the Fed goes, just to tell you this, and people aren't looking at this, and I know that the point, the 70 percent chance of a cut, there will be, and Powell was very emphatic about this, but you kind of have to read between the lines.
00:13:22.220There will not be a Fed rate cut without the data, which means if the government doesn't open up in time for the data to be collected, the Fed will not make a cut based upon not having the data.
00:13:32.600You have to kind of read and watch his speech carefully, but there won't be a cut if we don't see the government open in the data that aren't there.
00:13:52.180At that point, in 1999, Cisco had 75 percent market share of routers, and in 2000, at the moment of crash, Cisco had 86 percent market share of routers, and everybody's learning what a router was.
00:14:07.900You needed a bunch of routers to plug in a bunch of things so you could get websites to talk to each other.
00:14:12.000You needed lots and lots and lots of routers.
00:16:45.180That's the thing about these P.E. ratios.
00:16:47.260The market will allow it if you have favorable overall conditions, if you have an accommodative Fed, and if it appears you could grow profits into those P.E. multiples.
00:16:57.320So, to the extent that right now maybe NVIDIA and Palantir look like they can grow their way into these multiples, then the market's going to be pretty lenient on them unless there's an exogenous shock.
00:17:34.560You know, every year when we do the business planning workshop, I openly talk about what threats and events we're concerned about happening the next year.
00:17:43.160We openly share with you, here's what we're looking at.
00:17:45.980Here's what we're seeing as possible enemy, and here's what we're seeing as an operator, the opportunities that exist for us.
00:17:53.780We share with you how we're growing our YouTube channel and our media company, what our consulting firm is going.
00:17:58.960We're sharing our strategies with you.
00:18:00.560If you're somebody watching and saying, I'm sick and tired of playing small.
00:18:03.640I want to take my life and my business to the next level.
00:18:06.400The business planning workshop on December 12th is for you.
00:18:08.660But number two, if you're somebody that's running a business and you are already a millionaire, we have a lot of people that watch this content, you're doing 10 million a year, 100 million a year.
00:18:15.980Maybe you're doing a billion a year, you've got a couple thousand employees, but you've gotten to a point where you're bored and it's repetitive, and it's just kind of like you're doing the same thing over and over and over again.
00:18:25.820This is a very, very good event to even wake you up as a leader of the company.
00:18:29.980So quietly, you can kind of get on the business planning workshop.
00:18:32.840It's not something that you have to be physically here from anywhere in the world.
00:18:36.080So if you haven't yet registered yet, click on a link below, get registered, December 12th.