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IFB135: 4 Tips for Beginning Investors with Braden Dennis

Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners, led by Andrew Sather and Dave Ahern. To decode industry jargon, silence crippling confusion, and help you overcome emotions by looking at the numbers, your path to financial freedom starts now.

Dave:                                    00:36                     Welcome to the Investing for Beginners podcast. This is episode 135 tonight. We have special return guests this third time with us on the show though it’s a record we have Braden Dennis from Stratosphere Investing. He is our Canadian expert all around, great guy, and very smart and a lot of fun to talk to. So Braden, why don’t you tell us a little bit about what’s been going on with you since the last time we spoke.

Braden:                                00:59                     Absolutely. Yeah, it’s good to get to talk to you guys, and thanks for having me back on the show. Episode 135 that is awesome. Congratulations. And I like you guys enough to miss my two favorite hockey teams. We’re playing each other right now, so you guys should feel pretty good about that. Are you allowed to have two? So we’ll get to it when you’re Canadian, you can have five. Exactly. I live in Toronto, so I have to cheer for the Leafs, but I was born in Calgary, Calgary flames fan. Wow. Yeah, that’s green. Doesn’t know. I know. Well, they don’t play each other that often, so I don’t have to run to this issue very often. Well, good to know.

Braden:                                01:39                     Yeah. So it can be somewhat more entertaining than they pick you up. All right. So yeah, I know it’s really good to be back. As I’ve mentioned before, I am an investor. I’ve been investing since the day I turned 18 when I was able to open up my investing account. And yeah, it’s been great. I think the first time I came on this show I was still in university and I was telling everyone and their dog to buy air Canada stock, the big airline here in Canada. And not to toot my own horn, but I looked back on that episode on the date and the stock is up two and a half times.

Dave:                                    02:15                     Wow. Awesome. That’s great.

Braden:                                02:20                     So yeah, no, I’m a, I’m a rules-based investor. I primarily invest in longterm dividend growth stocks and I’m a strong believer that no matter what’s happening in the economy right now, whether people are fearing our session or not, quality growth companies will continue to do very well with the assumption that you are not entering at outrageous valuations. I am a rule-based investor, which helps me avoid mistakes. And I think avoiding mistakes is not celebrated enough by investors in general. Everyone talks about, you know, that the ten-bagger that they made or whatever it may be, but they don’t exactly two and a half magnet as I talk about that. We don’t talk about, you know, passing up on stocks that had risky balance sheets and we took a pass on it and the stock fell 80%, 90% or even became bankrupt. That’s not celebrated enough. And I think that’s important. And I stay within my circle of competence. It is strictly impossible to be an expert in every industry, especially if you’re like us. You have regular jobs, you know, self-directed investors and yeah. So Canadians are very, very heavily overweight in energy and banking. And we can talk about this later, but I do not invest in energy stocks in particular oil and gas.

Andrew:                              03:43                     So you’ll have to forgive my American ignorance, but I guess since the last time we’ve talked, and maybe you can speak on ever since you started as an investor, how has the Canadian stock market performed and how’s it contrasted with what the US stock market has done? Obviously, for us, 2018 was a down year and then 2019 was just insane. I don’t know if you guys are keeping up or beating us or what the situation is.

Braden:                                04:13                     So we lost more in 2018 and didn’t gain as much in 2019. So, but just plugging my service here, I’d be both indexes with just strictly Canadian stocks in a, in a tax-sheltered account called the DFSA. You’re in Canada that my followers are subscribed to.

Andrew:                              04:34                     Nice. How long has that been out?

Braden:                                04:36                     That’s been out since I’ve been tracking the portfolio since 2016 is publicly available to be a member in 2019 like January 1st, 2019, so just a little over a year now and it’s been an awesome experience.

Andrew:                              04:50                     Yeah, not, not to completely derail it. I’ve checked it out, and I can see your emails every month and I like what you’re doing with the real-money portfolio and the fact that you balance it out with ETFs and I think it goes to show you’re kind of taking the best of both worlds and able to pick stocks, but also have a decent ETF allocation and still able to outperform the market. I think that’s something that a lot of people can find value in.

Braden:                                05:16                     Yeah, well absolutely. It’s required that Canadians get international exposure. We can’t just be strictly buying Canadian stocks. That’d be foolish based on how much better your index has performed. So getting an ETF with international exposure is a piece of cake for Canadians, so I highly recommend that. I mean you can still definitely pick stocks and Canada and pick stocks in the US but super easy to be in a low-cost Vanguard BlackRock fund and get international exposure.

Andrew:                              05:45                     Yeah, I mean, I don’t mean to America’s horn here. Here I come again. Hopefully, I don’t piss Brandon off enough. By the end of this. He likes never wants to come back.

Braden:                                05:55                     Hey man, my parents live in Florida the year, so it’s all good. I have to go there. You get lots of crap. I am sure

Andrew:                              06:04                     You know how there’s a difference in being an investor in the States who’s just buying us stocks versus being somebody in a different country who doesn’t have a currency that’s in the status of a world reserve currency. So as far as investing in my portfolio, you know, something to watch as time goes on is that reserve currency status. Because you know, I’m no economist, but I’m sure a lot of the great performance that we’ve seen, you know, a big reason why the government’s ability to keep these insane deficits and rack up all this debt. A lot of it has to do with the strength of the US dollar. And so as an investor who kind of has that advantage and then not even considering all the tax advantages that go along with that a US investor, you know, makes sense to buy us stocks. And so if you’re not somebody who’s living in the US to have international exposure and you know, not to see us but other emerging markets or you know, major economies. So, you know, that makes sense too. So Braden, like when you talk about international exposure, are you lasering in on a certain ETF? Are you trying to go heavier on the emerging markets? What’s, what’s the game plan there?

Braden:                                07:27                     It’s pretty much a global play, but heavily concentrated in the US when I say international, I mean international for me, like most of that being allocated to you know, the US and if and to, to bring to your point there about being an American and investing in us stocks. Absolutely. I don’t think if I, if I were an American, I’d probably only invest in the US and the reason for that is I make Canadian dollars in my income and have foreign tax implications investing in our companies. If I didn’t, if I wasn’t up against that, I don’t think I would own a stock that didn’t trade outside of the US exchange.

Andrew:                              08:06                     Yeah, it makes a lot of sense. While we’re ripping on Canada

Braden:                                08:12                     Guys were

Andrew:                              08:15                     Like there was a huge how do you say that there is a huge hype that came up and almost as fast as they inflated it deflated. And so I’m curious if you have thoughts about if you’ve heard a lot about it, but all of the cannabis stocks that came up all of the excitement that was coming along with that, you know, all these investors had huge dreams and imaginations of how a lot of these different weed stocks would kind of pounce on this hungry market. And in recent history that those, a lot of the stocks in that industry have crashed by 50% or more. And you know, months before that happens, we, we saw these stocks rise and they were, they were all over the news. They were, you know, not maybe breaking records, but they were the high flyers of those few months where they had their 10 seconds of fame. So where do you hear about that as an investor in Canada? Was that a huge topic? Whether your thoughts on that now enlighten us please.

Braden:                                09:33                     Absolutely. You had to plug your years for several months there if you didn’t hear it. I’m just going to bring up a little quote I like from Ron Chernow, who says during a bull market, you think investing is easy in that you are some financial genius. And that’s what happens with every single person who lived in Canada during the time. During that time. It was a weird time in financial markets where the news was dominated by cannabis and Bitcoin. And if you weren’t in cannabis and Bitcoin while you’re an idiot because they’re going up 15% a day and that’s, you know, that’s going to go on forever. So I wrote an article in September of 2018 which is important because that’s one month before legalization happened in Canada for cannabis. And I documented that the two biggest players can be growth Corp and Aurora Cannabis.

Braden:                                10:24                     We’re trading at 178 and 187 times sales at the time. And then one month later the legalization rolls out in the pro, the provinces of Ontario and Quebec in particular, which are where a large population of Canadians lives did a horrible job at executing the distribution channels and bring it to market. And then all of a sudden these super high flying like 20 billion in market cap companies that haven’t done anything. What are they going to do? Right? So since the day of writing that article in September of 2018, Aurora cannabis is down more than 80% since then. And I had written about, you know, there’s nothing wrong with taking a port position in your portfolio that is speculative but be aware that this is possible that this happens. And sometimes you’re right

Andrew:                              11:19                     And they talk about, I mean, I see a price to sales of 10, and that makes me feel like, you know, a crash is imminent and you’re, you’re talking about a factor of 10 above that one level needle can pop that thing. And it’s amazing how far those stocks have fallen.

Braden:                                11:36                     Yeah. I mean, and, and people would’ve said at the time, well, how are you supposed to value them at, at da, at a price of sales PR or any valuation metric because, you know, it’s hasn’t been legalized yet. And I said, well, I don’t know if you come up with a way to value them, let me know. And I’m, I’m very interested. [inaudible]

Andrew:                              11:56                     Yeah, it’s, it’s, it’s a, it’s interesting to me how there’s, it seems there’s a different way to value a company depending on what industry you’re looking at. And it’s something that I guess if, if, if he works in the industry, you kind of know it’s, it’s more common knowledge. It’s, and it’s, it’s interesting to me to observe that we’re going to count earnings for one industry differently than we would a different industry just because maybe this one industry is retail and this other industry is you know, it could have a similar growth trajectory as far as how we feel the future is going to hold. But you know, we’re, we’re still maybe waiting for sales more weighting earnings more. It’s, it’s, there’s logic to it, but at the same time, it’s silly. And kind of to your point, I think when you talk about how we don’t know how to value these companies, the only thing that pops in my head is a big parallel with a lot of the stocks in the.com bubble and how those, you know, people were valuing those based on how many clicks they got to their website.

Andrew:                              13:04                     And so as valuations get more and more obscene, you have all of these just, you have to start making up justifications for why somebody would pay such a high price for, for a certain stock. So, you know, with that kind of in mind, and you mentioned at the top how you like to try to reduce losses and make that a focus. Are there any other things, maybe Canadian or otherwise that you’re turning your nose up to a, as of the time that we record this January 20, 20 have there been stocks that you’ve seen that have just made you stick your hand up and, and run the other way? Are there industries that way? What are your thoughts there?

Braden:                                13:54                     Yeah, there’s, there’s a couple. And I used to think, you know, mostly all FANG was overvalued and the big tech was just crazy. And I’ve, I’ve turned that corner a little bit. Since you know, their earnings have caught up to them. And I, I used to think Facebook was expensive and now I think it’s cheap. So, you know, sometimes you’re right.

Andrew:                              14:17                     That’s a great example. Their earnings caught up in a major, major way. I mean, major way w we were all doubting that they would find profitability. They did it for sure.

Braden:                                14:27                     They, they did. And so, so props to them and, and there’s a lot of reasons for that. It, you know, Instagram was huge for them. And so, you know, these things happen. And you’re able to adapt it over a couple of years ago, okay, maybe, the stock was cheap. They’re at 50 times earnings or whatever it is. And now it’s, you know, at one point it was like 18 times earnings when Zack was getting grilled. You know, every, for you know, him listening to everyone’s conversation, right? So these kinds of things happen right now. I think some companies are at that point again where I’m like, wow, those valuations are insane, but am I going to talk about them in 10 years and go, Oh, maybe they, they were cheap. For instance, here’s a, here’s a good example. That one that trades on the NASDAQ, but is a Canadian company, which is Shopify inc. They are, you know, a huge eCommerce company that enables a small business to sell things online and figure out the logistics for them. And I thought the stock was crazy at 150 and now it’s set like 600. So I mean, these things happen. So you, you stay away in the short term and then you can reassess later when the story starts to make sense.

Andrew:                              15:45                     Do you know what the market cap is for Shopify? Like roughly? Maybe 80 billion, probably more actually.

Braden:                                15:57                     Yeah, I mean, I could be wrong. I can look it up right now easily. I mean, to your point though, as somebody who’s being cautious like that, you’re going to miss a lot of those kinds of opportunities. But if you could go back to some of the companies in my portfolio, I have a few tech positions that during the nineties, I keep talking about the late nineties. Right? But they were obscene valuations. And then after everything crashed, they became more normalizing. The companies were even better. They had even better profitability and they were cheaper. So it was maybe a stock like Shopify is one that you have to wait around for. Maybe you miss it; maybe you don’t. I think it’s something that as an investor, particularly a beginner, you have to get over the fact that I’m going to miss some opportunities. Maybe I’ll miss a lot of opportunities, but you don’t have to feel bad about that. Yeah, that’s a great point. And I, yeah, me

Braden:                                16:57                     And my cohost that we have a podcast called the Canadian investor. We have a weekly episode, and two episodes ago, we talked about this exact thing. We were talking about awesome businesses that we think are crazy expensive and that if a massive downturn were to happen of maybe more than 25% in the market, these would all of a sudden be very interesting positions because you know, the business model is very good. They are producing tons of free cash flow, but right now is very hard to justify, especially if you’re a rules-based investor. We were talking before about, you know, you know, we should be glorifying that we don’t make mistakes and this is an exact great example. So you know, you sit on the sidelines for a bit and if something happens and maybe you have some cash ready to make, make it happen.

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Andrew:                              17:55                     Do you have any other big takeaways since you guys have started the podcast, when it comes to helping beginners get started, giving them some guideline rules, tips, anything like that?

Braden:                                18:09                     Yeah, I have four beginner tips that I think are important. And we’ve, we talked about them on, on the podcast, especially for, you know, dividend investors, which we talk about a lot is do not chase dividend yield. I see this all the time from newbie investors. They send me a message on my, you know, business Instagram or even to my email saying, Hey, I really, what about this stock? Right? And I look at it and it’s like a 12% yield energy stock that’s paying out 150 times of the earnings to the dividend. I’m sorry, 150% not 150 times. And I say, okay, look at the payout ratio and tell me what that says to you and how much more are they paying out than free cash flow? And tell me if that makes sense. Is that a business that you want to be investing in?

Braden:                                19:01                     And it’s easy to try to lock in yield but be very cautious with that. So that’s the first one. The second one takes price targets with a grain of salt. I when I was a beginner investor, I’m like, Oh look, it’s at 40 bucks and wall street says it’s worth 80 perfect. Or the other way around. Take these with a grain of salt. I’m telling you, they are very hard to predict and anyone putting a price target on a stock that is, that is madness. Another one is 52-week highs and lows. Should this matter? It should never be a reason to enter or exit a stock position. Look at the real business results. If a stock is at an all-time high, chances are they’re executing the business plan. Well, if you accident Apple in 2004 at all-time highs, you know everyone’s saying, Oh, it’s, you know, it’s higher than it’s ever been. You’d be out over 15000% today so that that wouldn’t feel too good. And then familiar is familiarize yourself with the cash flow statement and investigate why finance and wall street is so obsessed with free cashflow.

Andrew:                              20:11                     That’s good. Let’s go home. No, I like those. Those are my top takeaways. I like

[inaudible]

like

Andrew:                              20:20                     The, well, I liked all of them. I could talk about all of them, but we probably share that. But I like this focus on cash flow statements. I think it’s, it’s arguably harder to understand than an income statement or balance sheet, but it also reveals a lot of what’s going on. Like my example that I like to think about when the, when I think about the cash flow statement telling you how a company’s a company like Tesla, you look and this just like for so long they did not turn a profit. But if you looked at the cash flow statement, you would see that they were diluting shares. And so as they dilute shares that provide them with a lot of cashflows. So they didn’t need to go. I mean they still added debt but it wasn’t as extreme. And you’re wondering how the balancing and the profit and loss day Matt, how those things are, are there’s a, there’s an accounting term for it and I do not remember it. And so you can all know, obviously I’m not an accountant. Why, why they’re not. It doesn’t matter when the when those things don’t line up and you’re thinking in your head, why is that the case? Sometimes you can find it in the cash flow statement, and that can be like a big win versus your other type of investors who are just buying based on when something they hear.

Braden:                                21:52                     Absolutely. Yeah. There’s, there’s a lot to uncover in the cash flow statement. You start at the top of the statement with net income and then kind of use it to then decipher all the accounting tricks from there. First of all, by the cash flow statement. Yeah. So I familiarize myself with cash in terms of accounting in the over the last year. Thanks to a Harvard business professor that I, that I know that I interviewed on my first podcast a couple of years ago named Mihir Desai. He has an awesome book that he sent me an opening copy of, or like early readers copy called How Finance Works. The book is out now. It’s, he’s a Harvard business professor. The guy’s a genius, and he talks about why cash is important, why finance is super obsessed with, with cash. Whether it’s overblown or you know, you’d take some very like a realistic approach to it. And that book helped me a lot. So if anyone’s looking for a way to understand the cash flow statement and how cashflow affects the business, that’s a pretty good start.

Andrew:                              23:04                     Yeah, that’s perfect. Dave, can we get that linked up in the show notes?

Dave:                                    23:08                     Absolutely. That’s great. I’m going to be good at myself.

Braden:                                23:11                     Yeah, it’s great. And there’s, there’s so many like it’s, it’s like a textbook, right? Cause I think he wrote it for his students. So it’s like lots of, it’s not a textbook, it’s like, you know, a regular book, but in the way that there are so many figures and real-life examples of statements on companies that you’re all familiar with. So there’s a real application there. And so, I mean, I would take this course.

Andrew:                              23:37                     Speaking of real-life examples, do you have anything that you’re looking at now in the stock market that has caught your Eye, gets you excited, you like the valuation, any of those sorts of things?

Braden:                                23:50                     Yeah, for sure. So there’s a couple, I talked about this today on my podcast. There’s, there’s a company called Brookfield asset management that’s based here in Canada that should be a core holding for all Canadians. They’re a global player and they fly under the radar on the US exchanges a lot. Luckily, for us, so they’re consistently growing top-line earnings, free cash flow, 15 to 20% over the last ten years, like consistently, like haven’t missed a beat. They own four controlling stakes in there for companies that are all individually publicly listed. They kind of reorg a couple of years ago and listed those companies as well. So Brookfield renewable energy partners, Brookfield infrastructure partners, Brookfield property partners and Brookfield business partners. They essentially have feed bearing capital all of the world in mostly infrastructure.

Braden:                                24:46                     And it is an incredible business. They do well in emerging markets. They’re essentially value investors. They take you to know; they take certain assets that are struggling; they have an incredible track record of turning them around, spinning them off and turning them into free cash flow machines. So that is one on my radar. Another one I talk about a lot is a house system, a Canadian company based close to here in Toronto. They are a software as a service acquire around 2 billion in market cap. They’ve had quite the growth over the last year. It’s expensive. It trades at 27 times enterprise value to EBITDA, but they have a crystal clean balance sheet. They have zero debt; I mean zero as you go on their income on their balance sheet, zero short term debt, zero longterm debt and they’re in acquire. So that’s pretty, pretty incredible.

Braden:                                25:46                     They’ve grown the dividend at 20% with a low payout ratio, and you know, this is one of those things where we were talking about earlier when the segment is super hyped up, it’s a software as a service. I think from private equity especially; they can’t get enough of software as a service because it’s, you know, they think that it can grow at no cost and scale, you know, infinitely because it’s just a low capital business. However, that’s not true. They, there are costs to grow. That being said, it is pretty hard to do poorly with these kinds of names like open tech software and code constellation software to other big software as a service acquires around 10 billion and 20 billion in market cap. Those two names I wrote about entering the position back in June and the stock is up 53% since.

Braden:                                26:41                     So you come back to that, and you go, Oh, this is expensive, but like in five years, am I going to think I’m an idiot for thinking it’s expensive. So these are the kinds of questions that I battle with all the time. And I think I’m a pretty experienced investor. So don’t feel in the investing journey that you’re ever, you know, you’re facing imposter syndrome and imposter syndrome is thinking that everyone must know something more and that you don’t know what you’re talking about and there’s no way that’s not true. These are always going to be certain doubts. You’re not going to be right 100% of the time, but you can be right most of the time and do well.

Andrew:                              27:18                     Sounds like, you know, it’s worth taking a shot with.

Braden:                                27:22                     I can talk about another sector that I’m very interested as well that just based on completely recency bias activation. Activision blizzard is, you know, the large gaming conglomerate they own, you know, that very famous call of duty series and blizzard with the Warcraft series. And this is strictly from recency bias. Aaron Bush has a guy online who writes an awesome blog called master the meta and he discusses the business of gaming. I think he’s a big gamer himself and also very good business people. So it makes for a very interesting blog. And he’s talking about how fast mobile gaming is growing and how the freemium model like four out of $5 is going into the freemium model, which is in-game purchases. And I don’t even understand mobile gaming. I call me, call me old school, but I think gaming on the phone sucks.

Braden:                                28:18                     But you look, you look at the numbers of how fast it’s growing and how well it’s doing an emerging market and it’s pretty hard to ignore. And they’re a company with a ton of intellectual property. They’re like Disney, where they own all of the characters and all of the games. Like they can then put it into different verticals and see on their other synergies. And another name in the space, electronic arts., these companies are putting basically all their current games into mobile versions combined with the fact that a console cycles about to happen with, you know, the Xbox and the PlayStation and Tendo about to be on new cycles. This is a sector that at very reasonable valuations, surprisingly is very interesting to me. So I don’t own any positions, but I am looking at it,

Andrew:                              29:11                     Man that, that stock Activision Blizzard. I remember looking at it when I first started investing. Then for whatever reason, I passed on it and I think it was in the teens and I don’t know where it trades now, but I know it’s doubled at least. And you know, to your point with all of the different growth catalysts they have.

Andrew:                              29:33                     I’m not an expert by any means, but I know with e-sports the, the competitive gaming where they’ll have these tournaments, and popular gamers will make teams and, and fight each other in these tournaments. That is growing like crazy. And I believe the call of duty series has a league or is involved with these sports in one way or the other. But to give you some context on how big the EA Sports kind of how big the EA Sports world is right now. There was an, and this is like a data point that’s a year or two old, they had a tournament that was streamed and they got more streams than the NBA finals, you know, more streams versus viewership of the NBA finals and the MLB playoffs and the NHL hockey all combined. I think it was the world series, like the championship series of that.

Braden:                                30:39                     It was probably, it was probably the league of legends. Like okay, big tournament. That’s the biggest one. And it’s crazy. These like e-sports players, they’re their damn celebrities. They, there was a, there was a tournament last year one of the games, you know, I’m not even familiar with what it’s called, and the winning team split 24 million. I’m like, I’m looking at it and it was right around the time of the masters and I was like, Tiger Woods, the man, he just won 9 million and this guy who is good at video games is, is laughing at the chump, change the tiger woods just.com so it’s really, it is really funny and people love it and there’s all the time where you go, well I don’t get it but that doesn’t matter because the numbers say that people like this thing and I guess it’s just like anything else, right?

Braden:                                31:35                     If you are very interested in something and someone plays that game, or in this case video games better than anyone in the world, then that is very interesting to you and you want to see, you know how good they are at that thing. So just like sports, just like basketball, like, you know, you want to watch the Lakers play because LeBron James is incredible. Whether you’re good at basketball or not, it’s very entertaining to watch. So I guess that’s the play here on e-sports as well. I mean call me old school also, don’t get it. But I don’t get why mobile gaming is growing so fast either. So the numbers are there and I’m just interested in it from a, from a macro perspective

Andrew:                              32:18                     Between some of the great ideas you’ve given us. You know, you talk about the numbers being good and you, you there, there’s an assumption when you, when you have ideas that these companies will grow and continue to grow for a very long time. So without getting too deep into it, how would you characterize the way you look at a company’s growth story and how do you decide that this is something that I like and I like it better than this other company over here.

Braden:                                32:56                     Yeah, fair enough. I won’t use gaming cause those two names that I mentioned, Activision Blizzard and EA, I don’t own positions than then not non-expert in them. And I also think that there’ll be a lot of consolidation in that space moving forward. But to answer your question when comparing between the certain companies, look at the longterm growth story, you don’t have to be picking up stocks at IPOs to make insane gains. That’s not true. You can look at the longterm growth story, look at all the financial statements, and then look at the moat that they have, right? Like the reason that Warren buffet has done incredibly on Coca Cola is that Coca Cola is an incredible brand no matter where you go in the entire world. We’re talking offline. Before I won this massive trip like two summers ago, I was traveling all over the world for four months and everywhere sells Coca-Cola. You will not find anywhere that does not, and it speaks to the power of the brand, speaks to the power of the distribution channel. And it speaks to how valuable, you know, that moat is. I would say that those qualitative factors are big when you’re comparing, you know, a longterm growth story.

Andrew:                              34:14                     Last question For you and then we’ll let you go back to your country.

Andrew:                              34:25                     Can you give one example of a stock that you’ve had that did well for you and you were able to take something qualitative and something in there made you think maybe this could work out and then it ended up working out nicely?

Braden:                                34:43                     Yeah, sure. So I will give an example of a very, very small bank in Canada. So Canada’s banking system is very regulated. There are six big players and there’s another little guy named equitable group and they fell massively when they’re, one of their competitors had some big fraud thing happening and their stock fell 50% with it, even though realistically this was good for them, that their closest competitor was not doing so hot in this kind of alternative lending market. And the stock fell to a PE of three while they’re growing the dividend at 20% a year, growing the top line at 15 earnings 15 and everything was gravy. They were executing on all things, doing well, clean balance sheet, all of the above. So I entered her position because really, really good, you know, the Peter Lynch ten baggers have two things happening. They’re growing earnings over a long period, executing the business plan well and they’re growing the multiple, when we’re talking about multiple, just like regular PE, you have kind of a two-pronged attack there where the market realizes its value and investors are more bullish on the stock and they’re growing the actual business.

Braden:                                36:09                     So when you have both of those engines were working at once, that is powerful and those are the big winners that you type, you know, ride home a bell on your portfolio.

Andrew:                              36:21                     Yeah, that’s great. It’s good to be able to combine those things, and you add the compounding and you had the then in the mix. It’s just all; it can all work out nice. But you do have to be careful. You have to limit losses, as you said. A lot of the other tips you had to, they were gray and those are all things we should consider as we navigate with our investments and with our portfolios. So obviously you have your new podcast, please talk, talk to us about that and how people can learn more about you.

Braden:                                36:53                     Absolutely. So just before I, you know, plug that stuff, I want a couple of takeaways. Everyone should know, you know, it is never easier and cost-effective to be an investor in history than right now. And that recession or not moving forward as we go into 11 years ago. Bull market quality businesses will continue to do very well over the long term. And then my last point is if you do not work in finance, don’t feel like you’re missing out on anything. The few degrees of separation from you in the finance industry will probably lead to better management of your portfolio. So you can find me on a weekly podcast every Monday called the Canadian investor or on Spotify. And then as well a link I have here that you can, you can remember it is to get tockmarket.com and that’ll bring you to my website, stratosphere investing. So getstockmarket.com I have a free screener for quality Canadian dividend stocks with the different criteria I’m looking for. And then ultimately that feeds my real money newsletter called stratosphere premium.

Andrew:                              38:01                     That’s awesome. Well. Hey, thanks for your time. Thanks for coming on and for putting up with us and ripping on you a little bit.

Braden:                                38:07                     Hey, well, I haven’t heard Dave, is Dave, is Dave alive? Should we be out?

Dave:                                    38:12                     No, I’m alive. Okay. Forever. You’re just taking it all in, man.

Braden:                                38:15                     Oh yeah, fun judging us.

Dave:                                    38:17                     No, I, I just, I’m enjoying the conversation. It’s, it’s, it’s my job.

Dave:                                    38:22                     Perfect. Well, thanks for having me, guys. I appreciate it.

Dave:                                    38:25                     It was our pleasure. Thank you, Braden and we appreciate it. All right folks. Well, that is going to wrap up our conversation with Braden tonight. I wanted to thank Braden for taking the time out of his busy schedule to come to us tonight. This was fantastic. It was very enlightening and very entertaining. I will put all the links that Braden mentioned to his show, his great podcast as well as his blog and the books that we mentioned as well in the show notes. And if you guys enjoy the show, would you please take a moment and give us a review? We’d love a nice five-star review. If you feel that we are worthy of that, that would be fantastic. Help us raise and a rating so we can help more people. So without any further ado, I’m going to go in and sign us off. You guys go out there and invest with a margin of safety. Emphasis on the safety. Have a great week and we’ll talk to next.

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