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IFB50: Discussing the Popular FANG Stocks Interview with Braden Dennis

 

fang stocks

Welcome to Investing for Beginners podcast, Andrew and I are going to do a little blast from the past today. We’re going to talk to our second guest actually when we started the podcast. We’re going to have Braden from Stratosphere Investing talk to us tonight, this is going to be a lot of fun Braden is going to catch us upon what he’s been up to and see all the crazy things that he’s doing so without any further ado. Andrew and Braden why don’t you guys started us off.

Andrew: yeah Braden welcome to the show I think it’ll be very interesting for everybody because last time we talked to you were still beginner kind of. With a lot of different questions and seem like you’re forming an approach and a lot of intelligent questions.

You could tell that a lot of the basics were digested and it was just about finding exactly where you were comfortable and then actually getting that experience in the market.

Take us through how you got started and how you’re able to evolve your approach to now. We talked before the show about how you’ve had some fantastic returns with your stocks lately so kind of walk us through that.

Braden: yeah that’s right well thanks for having me on guys. I’m Braden Dennis and wow what a journey it’s been I guess since even before even before this show to now and kind of I guess midpoint where I came on the show for the second episode I had already kind of digested like you said that we get the basics my questions won’t come and just you know where do I start?

It’s I have this now formed a strategy and how do I how do I continue to grow it and some other questions that maybe others had as well and then fast forward to now I’ve started my blog and podcast. Shameless plug here at Stratosphereinvesting.com and now it’s you know I guess brings me back two years ago, and I had you know the foundations of investing.

I’ve always thought what makes me a good investor is I have the very good temperament. I’m able to block out some of the noise and kind of the other manias that tend to happen in financial markets and really to gain that temperament and have that outlook when I started investing. I mean we started in the middle of a bull market, and now it’s continuing to roar on if you don’t learn from history and you don’t study the Great’s and see the kind of changes that happen in the markets over a long period.

If you don’t study that how are you supposed to know how to protect you know minimize downside risk protect from vicious drawdowns if you don’t understand what’s happening in the past. So I’ve operated with a margin emerging of safety, picked fantastic businesses known my businesses incredibly well.

I’m a Canadian, so you know where I got a look at a little differently my benchmark is the TSX, and it’s not the S&P; 500 I mean some could argue that the S&P; could be my benchmark is now I could just pick up an index fund but not only is that incredibly boring is you know at the end of the day though ETFs are actually carrying an extreme amount of risk in my eyes. their market capitalizing market capitalization weighted and what that really have what that really does is a large portion of that fund is now dumped in what we’ll call the FANG stocks and if you don’t know what the FANG stocks are it’s Facebook, Amazon, Netflix, and Google and depending on who you talk you might throw some other A’s and ends in that mix.

But really at the end of the day, they’ve gone to irrational highs, and you’re carrying that way that that risk of potential massive drawdowns if you own that fund.

Andrew: well just look at thing right you have three of the four our tech Facebook Netflix Google Amazon. We’ve talked about Amazon a lot of times I mean even though it’s growing and the revenues just continue to grow, and they even had an earnings report that came out today where it showed explosive revenue growth to continue.

But they’re still not turning a profit so you can still very easily argue that it’s a much-overvalued stock. You look at a company like Netflix and Amazon they were actually, so the SP in January grew by four almost five percent. I mean from a one-month standpoint that’s huge and a big part of it is because of the market-weighted that you’re talking about.

Netflix gained 40 percent in January Amazon gained 24 percent in January, so you have two of these big players with a hundred million one hundred billion dollar plus market capitalizations that are driving that index up and so the higher that goes as you said, the more the ETF becomes risky. because it’s now becoming more expensive, and you’re getting a bigger and bigger proportion of the ETF in these over bloated stocks and like you said all you have to do is go back into history, and you can see you know it’s not because we’re trying to be boring or trying to be negative Nancie’s all the time.

The facts are overvalued stocks will underperform after a rough bear market, and that’s whether we’re talking about a recession that happened ten years ago 20 years ago 30years ago 50 years ago. These reoccurring themes always happen and so I think as investors just getting yourself away from like a FANG type stock and if you can do so while still picking up great businesses that are going to put you head and shoulders above a lot of the different investors that are out there who are just meddling around and just trying out the whole investing thing.

It’s not something that you should try out this is the hard-earned money you should really be taking it seriously and I commend the amount of research and the mindset you have towards this because it’s obvious that you take it seriously and avoiding the FANG stocks and finding stocks that are not going to be overvalued like the FANG stocks is really key part of that.

Braden: yeah that’s right and like I said I’m a young investor only 22 years old and I operate an environment where a lot of my friends you know they haven’t done the research right here that but they want to get involved. So what ends up happening is they after ten years of you know the extreme bull market, and everyone’s made such amazing money.

Extremely speculative investments start to become the forefront of what everyone’s talking about, and it comes down to the low savings rate and the extreme student debt. Basically what happens is this really low savings rate super high debt what do people turn to it turned to extremely speculative investments because making between 12 to 14 percent a year in the stock market over a long period doesn’t sound like they can that can meet their financial goals quick enough.

They go out to extremely SPAC of investments like cryptocurrency here in the in Canada it’s all about weed stocks now so marijuana companies that are owing in the mania like left right and center with insane trade volume moving up and down 10% a day. sorry and it’s insane so if you’re not it’s kind of like Canada’s FANG where if you’re not in these marijuana stocks then you’re not beating the market and then an interesting little statistic here for 2017 in the Canadian market was our best performance sector was energy as large oil exporter here we are you know it was huge rebound price of oil is going back up and you know the sector is looking good again.

It’s come a long way it was by far owning wise our best-performing sector however on the stock market. It was the most performing sector now let’s move forward to what was the worst performing sector via earnings, and that was health care because of marijuana stocks.

These are companies that are all not turning profits not a single one of them have positive earnings per share what was the best performing sector in the Canadian market in 2017 it was health care. You have a completely backward and insanely hard to understand what’s going on and why that is the case.

And it’s because enough retail investors are tipping the scales to skew into things that you know completely doesn’t make sense and they and they won’t make sense until we see a massive correction and then people will know what I want what we’re currently talking about today.

Andrew: one recording this yeah I’ve heard so many, and I thought those stories about the marijuana stocks and the cryptocurrency the rationalizations that you see people talk about when they see massive losses.

I to this day you know I haven’t had a stock ever lose me more than 25 percent, but you’ll see people lose 50 percent within a period of several days, and they’ll like heard somebody online they just rationalize it to say well you know I gain eighty percent so I’m really playing with the house’s money not really you know and like that as that stock continues to fall.

Not only you’re wiping out your gains but you-you’re not giving yourself a sustainable system to be able to make predictable long-term wealth. whether you are optimistic about the industry as a whole or not all you have to do is look at it like the dot-com stocks and see how all those had negative earnings and very if any actually came out the other side of the bear market intact and not losing massive scales of well for investors and right now we’re still talking about the end of a boom, not the end.

I mean we’re still deeply inside bull market right to say obviously the end, so it’s going to be very interesting obviously you have a lot of volatility and some of the higher flyers it’s like how do you even expect to make great profits when it’s gambling.

I mean there’s no other way to put it right really and I think it really comes down to that whole the mantra’ of investing which I absolutely hate which is you know you’ve been you’ve been told over and over again when you’re growing up that high risk equals high reward and I couldn’t disagree more. I mean high risk if you have high downside risk and high drawdowns means you need super higher reward because it’s an exponential function and how you recover those losses so really at the end of the day the math is not working with you even if you are making some sweet or turns on some high flyers and then to fold how do you not want to have a strategy so that might be working for you right now and you might be onto something but how do you not want to have a strategy long term as you move forward especially as someone like myself.

I mean I’m finishing my engineering degree here, and I’m a lockdown full-time employment, and I’m pursuing my passion you know I love to do engineering, and I love to make money in financial markets I like to do them both at the same time.

Right so someone like me who doesn’t have a lot of time to actively watch companies how can I pick amazing companies with metrics that we can talk about in a little bit and you know we can go through my strategy of how I discover these companies and they’ve worked out an insanely well and that strategy will push me deep into whatever timeframe and time horizon that I can look for.

I mean hopping on and trend following and going for price momentum how is that a sound strategy and how is that going to continue to work for you in the future.

Andrew: yeah let’s dig into that so talk about some of the stuff that you look for when you’re trying to value a business first cherish so right away we live in a world where free screens is an amazing thing for someone for anyone to really narrow down a select group of businesses into what I call you’re investing universe.

Braden: if you only feel comfortable investing in companies that are over a billion in market cap or under a billion in market cap if that’s what you want to do then you now have what you have is your investing universe and vegetable companies that you can start to now research even further. when I once we’ve you know collected a group of maybe twenty to thirty companies that I’m looking at that I’d like to add a position in the well first thing I’m going to look at is revenue I mean earnings can be very easily manipulated and earnings don’t always tell the best picture.

You can look at a price to earnings and completely misuse it as a decision to buy a company if earnings are way up or the price is way down you can you can get really mislead and you look at cyclical consumer stocks and you should actually buy them when they have a high p/e and that’s when the market doesn’t like them because their earnings are down and they’re cyclical. I look at revenues, and I want to see that is growing consistently that is the starting level of all cash flow coming into the business.

Right so if the top-line revenue is at risk in declining how is that a how one is you getting at a good enough discount that you think that the market will realize that there’s a pretty good yield on this if we buy it at this price point. But you can that you can avoid all of that and pick companies that are growing that top-line consistently.

We want to have 5% growth in the top line at least and then the top line is that revenue piece for at least over the last five years then I mean I love dividends. I think investors should have income dividends are the greatest thing in the stock market and if you can pick a company with a decent yield. But not only decent yield but decent dividend growth.

I mean Andrew you had sent out a little email the other day about how the growth of your dividend will actually over a long enough period completely outperform the high yield lower growing dividend.

Andrew: oh yeah so I didn’t talk about that math. Yeah, it was like I took two it was just a hypothetical take one with a 5% dividend yield growing at 5% a year versus like a 1 percent yield growing at 25 percent a year. So after like ten years, you have about the same amount, but then after 20 years, the difference was I think a double after 30 years it was like a quadruple after 40 years.

They’re talking about like the difference between couple million was it like 40 million versus like 300 thousand or something like that so basically insane.

Yeah it’s it was like an equal I might not have those numbers exactly right now I think it was 1.25 yield percentage it was like okay if you had either four times the yield or four times the growth which one without perform and over the long enough period four times of the dividend growth was the one that just vastly outperformed.

Braden: alright and then and then further the next thing I’m going to look at especially if it’s you know a dividend play is what’s the payout ratio. that’s the hidden gem of dividend investing is what’s the payout ratio is it too high or is it too low there’s a there’s a happy medium and I like around forty percent typically rule of thumb that’s something that I really like and it’s the reason that I don’t buy telecom or large utilities.

Enbridge is a company that is facing a massive drop in their in their share price it’s an oil company here in Canada they supply a lot of natural gas, and they have always paid a healthy five percent dividend aristocrat growing one of those too-big-to-fail type companies, and they’re sitting with super high payout ratios and they had a bad quarter and boom their payout ratios sitting at one hundred and twenty-five percent today.

So they’re going to have to start burning cash this quarter, and that’s something that you don’t want to have to see such a lot of telecom companies they have very they’re very leveraged and have high payout ratios I consider them very fragile and that’s not something I want to see.

Andrew: yeah I completely agree it sounds very similar to the type of ratios I’m looking at to do you and then knowledge do that all when I’m looking at the balance sheet I’m mostly concerned with debt, and you know there book value in total. I mean so you can look at a screen and device of what’s the total debt to equity you definitely want that to be lower hopefully or less than to hopefully ideally less than one.

But I mean depending on the type of company or if you’re looking at a financial company I mean obviously they’re going to be a bit more levered but how is that changing?

Braden: so just like I said with the revenue growth at the top up year-over-year how is how their debt load is changing and if it is changing are they also if it’s increasing is the equity and their Book value also growing too.

To keep it conservative I mean a company can’t really go bankrupt if it has more equity than that immediately in the short term maybe over the long term yes but if something happens that company with lots of debt to equity you’ve really hoped on this-this metric for so long is that company was it as interest rates rise and you know we’re going to see that over the next little while is that company super fragile and they super sensitive to changing interest rates or anything going on in their business.

Andrew: yeah I love that idea discuss that a couple of days ago as well I mean when you have debt and interest rates go up you’re talking about less equity fewer earnings power all that all those sorts of things.

You mentioned a lot of different aspects of the Canadian market I have never bought any Canadian stocks. So I’m curious, and I’m sure our audiences as well are you seeing like different characteristics when you break down the numbers. You know for a Canadian stock versus a US stock do you see maybe more deal more deals in one country versus another or are you even just focused solely on companies.

Braden: Uh was it the TSX or the yeah the TSX okay that’s right so you know there’s the S&P;500 and we have what’s called the TSX60s a similar type concept market cap type of methodology, and yes I would say there are a lot more deals in the TSX then than in the US equity market.

Currently, I believe what’s the Shiller P/E of the S&P; these days it’s 32 it’s definitely over 30, and you’re looking at something around 16 for Canadian companies. So it’s incredibly less valued, and I would say that after all this run that you know the US market has had the Canadian market is still a very fairly valued rating. That right in the middle of the spectrum I’d say regarding what’s undervalued and highly valued in financial markets and really what that is that we haven’t had the run regarding the massive returns that a lot of people have seen and on investable index our investable exchanges in the States.

So what that brings is a lot of opportunity for someone like me who can continue to buy incredible businesses at fair valuations, and I mean it’s great the financial companies in Canada like the banks our licenses to print money our banking system looks slightly different and is dominated by what we call the big five.

This is for five Canadian banks Royal Bank CIBC Toronto Dominion Scotia Bank and Bank of Montreal and those five they dominate, and for sure they’re really the big five, and they’re protected in a way, so they give you this they have been growing their revenues at insane amounts growing their dividend at you know they all dividend aristocrats and their payout ratio on 4% yields is anywhere between 35 and 40 percent, so that’s really good to see that they are still able to grow so much with that retained earnings.

You know over 60% of their earnings are going to be able to be retained, and they’re still able to grow that dividend and pay a four plus maybe 5% yield all the time, so I mean yes I’d say the Canadian market is significantly less overvalued than the US one and I mean I don’t mean to say this from like I’m not trying to make a good economic opinion.

But I’ll just say that in general if markets overvalued more so than another that tends to reflect what the investor sentiment is so some market like the US the markets very high sentiment is very high somewhere like Canada might be a little bit less optimistic. But what’s great about when you dig into the numbers right what we talked about a lot of surface ratios but when you start to get kind of intimate with a company and start to learn like the ins and outs of it some of US do this more than others.

I tend to kind of like to take a big-picture approach, but you can start to dive in annual reports and look at things like you know there will be plenty of businesses, and there are, and this is true for any country where the revenues that the business makes might be primarily based in another country. So if for example if you were an investor who was maybe more optimistic about what’s going on in the economy in the States versus what’s going on in Canada.

You can most certainly buy shares on to a Canadian company that primarily does business in the States and so in a way prosperity in the United States would lift that particular stock up and so those kind of determinations are something that once you really start to dig in the financials and really understand try that get a big understanding of what the numbers are telling you.

Those are some of the ways you can kind of find sort of hidden extra deals that might not pop up on the surface. There are some fantastic companies here that a large portion of their sales would be in the States alone off the top of my head is called element action custard. If I just completely butchered this the pronunciation of that to my French Canadians I’m sorry but if they owned all of the Circle K convenience stores that you see all over the states, and they were marketed here as Maxima CS, and they’ve recently consolidated them all to Circle-K.

I guess they found some operational efficiency of just moving them all to that, so that’s a company that started here listed on the TSX move to the states grew at a much faster rate and saw an extreme amount of growth there, and it became the lion’s share of their of their top and bottom lines over the years now and they are super reasonably valued and you know a fantastic company.

I think that’s a prime example right off the top of my head of what you’re talking about an opportunity right there and these are things that you can read in the financials it’s not something that’s you don’t have to be an insider who works at this particular company. you can just pull up annual report, and usually they have I don’t know how it works with the Canadian ones, but here in the United States we break it down there’s consolidated financial statements, and then they’ll break down revenues and they’ll usually have different segments so some companies will segment them off into which country they’re doing business, and some of them will have business units where like if you’re looking at company like Disney to have media entertainment you know TV network got a bit and the parks. Yeah, break it down so that’s something you can do with any stock and if anything it can give you more confidence in an environment of uncertainty where a market might be undervalued compared to maybe the rest of the world right.

Braden: yeah I think it happens all the time and maybe the like when you think about you know companies with extreme competitive moats and where they may be set, and then you look at the US index, and I think a lot of the companies that have an extreme competitive mode. Take Amazon for example that you know what’s the PE today 360 here you ever know it might be four hundred by the end of the conversation and you know of course they’re an incredible business and they’re going to continue to grow at an incredible rate and I think if they were you know a Canadian company I don’t think they would you don’t have that back they would still have that extreme competitive edge, and for sure they’d be listed on the Nasdaq by now. You know it’s kind of like you know company gets big enough and in Canada then they’ll list on US exchanges as well in US currency. But the say it’s not it’s like I don’t know if the American proud of it’s an American company.

Andrew: yeah I’m not sure I’m not sure, but there’s a distinction between you know the general valuation if you were to take on average on the differences between the country’s there’s no question let’s bring an economist in here. I mean without putting the target on my back you know there are there is a lot of liquidity flowing into these markets.

Whether you want to blame the Fed or some other party there’s something going on we’re not going to try to speculate on that bottom line is you can find a lot of great deals today.

Would you say like are you also buying US stocks are you like a hundred percent Canadian right now?

Braden: currently I’m a hundred percent Canadian because I mean we’re at a point right now where I guessed four years ago and don’t call me on it could be could be this thing where it seems like it was yesterday. But it was 10 years ago, but the US dollar and the Canadian dollar were we’re on par for quite a while there for well over a year, and you know here we are in Canada we’ve always start dollar has always been slightly lower than the USD.

And then BOOM I’m not sure who exactly what happened I was a young chap, but it was we’ve been sitting at 75 cents on the dollar for basically since and we see massive growth in our macroeconomy.

fang stocks

Maybe that’ll change, but right off the top, I’m losing you know something that I can control. What’s something that I can control as an investor it will I can control what kind of companies I choose to pick if I choose not to pick a company that everyone is telling me that has amazing growth prospects? This and that and this and that the best thing about investing is I get to decide that I get to decide if I want to move my capital into that.

Here, in this case, I’m going to lose an instantly 25 percent right off the top, and it’s something that I am not able to control, and I’m non-economists its macro factories that I can’t explain not even most economists can explain. Right, so that’s something that’s out of my control and out of my circle of competence so I’m not going to put up 25 percent right off the top for something that I can’t control and frankly I don’t understand.

Well I mean just go back in time until young to buy us dogs because exactly that’s the crystal ball I should have had it the whole time well you I do have one, but I’m saving it just say well lets you do that for now.

Let’s talk about your performance how you have done so far and your investing career? What were some of like maybe I was like maybe the best investment decision you made and one of the worst?

Braden: yeah sure okay so stubborn maybe I don’t know but my worst investing mistake is a position that I’m currently dumping more and more money into, and I don’t think it’s a mistake at all.

It’s Air Canada which is an airline stock which has been perennial dogs I mean you know it’s the old classic Warren Buffett doesn’t touch airline stocks with a ten-foot pole. Now you see Berkshire Hathaway’s portfolio has every airline you can think of and it’s really what’s happened is that’s true is historically unprofitable businesses with the unions and so subject to oil prices their fuel and you know a lot of labor with the unions and high labor costs and what’s gone away is the smoke has cleared, and we’ve had extremely profitable businesses all the sudden.

So I have a position with Air Canada I lost on it so far, and I think it’s going to grow at an insane amount, so I’m dumping more in there I mean Peter Lynch said it sometimes took two years for a value pick to come out. This airline is trading at a p/e of 3.4 today and is only valued at 6 billion and market cap anyone who’s a Canadian knows that Air Canada is the most dominant airline and is now flying more it’s one of the leaders in the world for where it’s flying in terms of total airports, and this is not and it’s definitely you know kind of the air.

I would say it has the most competitive edge you know it’s the smoke has cleared and now it’s there are only two airlines WestJet and Air Canada, and I mean WestJet’s also phenomenal, but I don’t think it’s trading at and such an attractive valuation as Air Canada.

You’re still getting growth as far as revenue standpoint oh my god you wouldn’t believe you wouldn’t believe I wish I’d pulled up there their income statement right now at the ticker is AC. You wouldn’t believe how much they’re going in so that that comes back to it comes back to you know why throw yourself an investing in an investing bucket.

When you have oh I’m a value guy, or oh I’m a growth guy you have an extremely high growth company with an extremely attractive valuation trading at a price to sales which is my favorite valuation quick valuation metric by far of 0.4. So all they have to do is reduce costs as they have been over the last five years they hadn’t turned a profit up until 2014. This was you know this where the airlines were not very profitable because of all the factors that I had just discussed now you see extreme earnings and you know consistency in their earnings, and that’s you know opportunities come up like that, and you just got to act.

Another one I can learn I have to I have to go out for that’s yes just in my nature.

Andrew: yeah that like what you said is so key even now like this idea that you have to either be all-in on value or all-in on growth is completely wrong and I’m like still shocked to this day with these years and years of great bull markets we’ve of great bull market we’ve had I’m still finding great deals I got one today for the eletter and it price to sales one of my favorite ratios as well under one.

I’m talking about the price of books reasonable prices their earnings as reasonable and growth of it was like in the range of like 30 or 40 percent for both earnings and Book value if you took it over a 10-year period. I’m talking about 30 40 percent per year so even if you know you could look at the stock price and see it hasn’t grown that much in this time and it’s a smaller stock. It’s like just under two billion so it kind of breaks one of my rules quote-unquote as far as how small I want to go. but I mean it’s like makes my mouth salivate just thinking about all these different deals I’m still able to find and it’s just one of those things that you can do if you are aware that there are these deals out there and like you said I mean price to earnings of 3 that’s unheard of and if I were to look that’s dominant in their industry right?

Braden: yeah it’s crazy yeah if I would look at a stock and see P/E of 3 I wouldn’t assume that the company is crumbling and not actually to have revenue growth. so that that shocks me and it’s just a testament to this idea that if I’m having no problem finding companies with great long-term growth whether it’s long-term growth you know excellent short-term growth with decent long-term growth whatever the combination may be I’m finding them all the time and still finding them at value prices at valuations, and these value metrics we always talk about that are very good it makes me optimistic.

Even if I’m not invested in the FANG stock or even if my returns aren’t tripling like a cryptocurrency might I still write very good about where my future returns are going to be because an I know about the history, and I can see these stocks in front of me with these great deals, and I’m picking up and now is just waiting it out, and it’s only a matter of time until the rest of these things shake out.

So talk about now have to have cut you off and just really just really quickly I’m going to just give you some quick spark notes on their income statement. So it’s a four-year income statement 2013 to 2016, so they haven’t released the full year 2017 I think it’s next week. Their earnings and so up until 2012 they were unprofitable and in 2013 you know they had the odd quarter of profitability, but you know very inconsistent patterns and in 2013 they had a top-line revenue of twelve point three billion okay with a net income of only six million so they had basically just come out the other side onto the green the next quarter they made a net in the next year sorry they made a hundred million in profit and bring this now to 2016 and the recent quarters in 2017 are fabulous too.

so they’re going to your going to be over or you know even remember this but so they’ve grown that top line to from twelve point three billion to fourteen point six billion and the net income is four years from six million to eight hundred and seventy-six million in four years that is the most insane growth you can find anywhere and you saw those valuation ratios.

Again the these are things that don’t come up without often six billion market cap you just you scratch your head, and you wonder how is this a thing and then you just go for and you don’t listen to you know you just you trust your gut, and you ‘ve done the research you have a story, and it’s going to it’s going to work out very well.

So yeah revenue growth is you know nothing to write home about its definitely growth that you want to see its consistent but you look at the things I was just talking about no profitability, and you know what you go to the airport now, and you don’t really talk to any when you go check-in there’s all these you know it’s like you go to McDonald’s now and you don’t talk to someone you just punch in the on the screen it’s the same concept right.

So they’re using technology, and they’re to their advantage, and they’re you know becoming an extremely profitable business.

Yeah that’s really cool for some successes in the market I mean I have done over seven 17.5% and my three years of investing in three full years investing I had about a couple months before um a full year and I don’t know what how that would work into it was probably my best time ever. but what we’re looking at is over 17% in the benchmark of the of the TSX60 here in Canada has been significantly underperforming the S&P; so when I look at my benchmark I mean I’m doing fantastic and these are things you know I’ve taken from just trying to get my feet wet as we had talked about at the beginning of the episode to now know having the confidence having the temperament which I can’t stress more than more than enough you know that’s really the key here you got to understand what you know you got to have a good story and you got to have attractive valuations and growth at the same time.

Like why would you why would you not go for both you know you can you can kind of hit a home run if you if you have somewhere in the middle of growth value and sometimes you know all cylinders firing like the example we just talked about.

Andrew: yeah I hundred percent agree I mean couldn’t agree more so what you got going on for what’s been going on for the future?

Braden: well Braden is about to graduate his last semester of engineering, and I’m an environmental engineering student. I’ve worked in the power and power generation and manufacturing sectors throughout my university career jumping in and out of jobs through my co-ops and getting my degree. so it’s all good and then I’m about to travel the world basically for four months just going to backpack it my buddy and me and I’m going to continue to podcast and try to teach the world of stocks and really it out in layman’s terms and really create hopefully remove the disillusion that people have been given and hopefully people make the right decisions and I’m hoping I can help them would do that on stratosphereinvesting.com

Andrew: yeah so give us your elevator pitch for your podcast. I was a guest on the elevator pitch I had a fantastic time talking numbers with you on the podcast.

Braden: definitely if you’re into that it’s going to be a fantastic resource if even if you’re not so ready to go yeah so you’re asked for your investment we’re really you know laying out the foundations for people and on the podcast you’ve had lots of guests here including and you’re like yeah just said and it’s been it’s been amazing it’s been fun to talk to people and really it’s great when Andrew came on the show.

We talked numbers or both you know I have that engineering background and that mathematics background so I’m just trying to you know teach people that you don’t need to have a background in finance you don’t even have to be good at math in this day and age with everything calculated for you. It’s not like the old pen and paper in the office like Warren Buffett reading annual reports all day.

You’re able to consume an insane amount of information at a very quick a very short period now with all the tools that are available all for free, and really I’m uh there’s a blog and podcast and on the blog I’m you know providing links to different tools I’m using every day to find opportunities and everything for free it’s a lot of fun and I hope everyone enjoys it.

Andrew: you are a one more time stratosphereinvesting.com.

Braden: stratosphere like the second layer of the atmosphere because that’s where we’re going to bring your returns to and investing.

Andrew: that’s it its great stuff all right folks you heard it here first stratosphereinvesting.com. Braden thanks for coming on it was a great discussion it’s great to get insights on the differences between Canada and America and obviously always great to see somebody who likes approached markets looking for value looking for growth looking for dividends and looking for all three at the same time. so we can shoot for the moon and maybe hit a star.

Braden: that’s right thanks for having me I appreciate it.

Dave: alright folks well that’s going to wrap it up for our show tonight. I hope you enjoyed Andrew and Braden’s conversation it was a lot of fun for me I enjoyed listening to him and I have to give kudos to Braden he has come a long a long way since we first talked to him and I was really impressed with the depth and quality of his thoughts and insights.

it was really quite impressive it was it was kind of cool. so without any further ado we’re going to go ahead and sign off you guys go out and find some great intrinsic value invest with the margin of safety emphasis on the safety and you have a great week and I’ll talk to you next week.