The Compound and Friends

Only Tesla and Toyota will Survive

Sep 8, 2023

Financial expert Nick Colas joins Michael Batnick and Downtown Josh Brown to discuss Q2 earnings, Moore's law, interest rates, and the future of the automotive market. They also touch on Steve Cohen and the dominance of technology companies in the global stock market.

01:29:00

Episode guests

Nick Colas

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Quick takeaways

Tesla's disruptive innovation and dominant market position have positioned it as a primary player in the future of the automotive industry.

The concept of the second half of the chessboard helps explain the significant valuation gap between Tesla and traditional automakers, as Tesla embodies disruptive innovation and exponential growth potential.

Traditional automakers are facing challenges such as overcapacity, labor negotiations, and cultural differences, leading to lower valuations and perceived risks compared to Tesla.

Advancements in technology and changing consumer preferences are driving a fundamental transformation in the automotive industry, with Tesla leading the way in pushing boundaries and shaping the future.

Deep dives

Tesla's Position in the Market

Tesla's market cap is significantly higher than traditional automakers like Toyota, Porsche, BMW, and GM, despite having lower revenue. This discrepancy is due to investors recognizing Tesla's disruptive innovation and potential for exponential growth, thanks to advancements in autonomous driving and its dominance in the electric vehicle market. While traditional automakers face challenges such as overcapacity and labor negotiations, Tesla is playing from a position of strength and continues to garner investor confidence.

The Impact of Moore's Law on Technological Advancements

00:42

The Importance of Stock Correlations in Bull Markets

01:09

Stocks not re-rated as expected with risk-free rate

00:47

Lessons from Steve Cohen: Math is Not an Edge

01:18

Introduction

3min

Stock Market Performance and Tech Stock Rotation

13min

Discussion on Sponsor and Introduction of Guest

2min

A Terrifying Helicopter Incident and Earnings Recap

20min

The Dominance of Technology Companies in the Global Stock Market

23min

Stock performance and adoption speed of technology

2min

Comparing the Rapid Adoption of Radio to Current Technology

2min

Valuation, Investing Strategies, and Lessons from Steve Cohen

18min

Exploring The Price of Time and The History of Interest Rates

2min

10.

The Price of Time, Acquired Podcast, and the Attempt to Recruit Technologists

5min

On episode 108 of The Compound and Friends, Michael Batnick and Downtown Josh Brown are joined by Nick Colas to discuss: Q2 earnings, Moore's law, interest rates, the future of the automotive market, Steve Cohen, and much more!

Thanks to GraniteShares for sponsoring this episode. Visit Graniteshares.com to learn more about their single stock ETFs.

Check out the latest in financial blogger fashion at The Compound shop: https://www.idontshop.com

Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers see here https://ritholtzwealth.com/advertising-disclaimers. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information.

Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here:

https://ritholtzwealth.com/podcast-youtube-disclosures/

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The Compound and Friends

Only Tesla and Toyota will Survive

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Tesla's Position in the Market

The Second Half of the Chessboard Analogy

The Challenges for Traditional Automakers

The Future of the Automotive Industry

The Price of Time by Edward Chancellor

Shane Gillis' Netflix special

Acquired Podcast on Nvidia

The Impact of Moore's Law on Technological Advancements

The Importance of Stock Correlations in Bull Markets

Stocks not re-rated as expected with risk-free rate

Lessons from Steve Cohen: Math is Not an Edge

Get the Snipd
podcast app

AI-powered
podcast player

Discover
highlights

Save any
moment

Share
& Export

AI-powered
podcast player

Discover
highlights

The Compound and Friends

Only Tesla and Toyota will Survive

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Tesla's Position in the Market

The Second Half of the Chessboard Analogy

The Challenges for Traditional Automakers

The Future of the Automotive Industry

The Price of Time by Edward Chancellor

Shane Gillis' Netflix special

Acquired Podcast on Nvidia

The Impact of Moore's Law on Technological Advancements

The Importance of Stock Correlations in Bull Markets

Stocks not re-rated as expected with risk-free rate

Lessons from Steve Cohen: Math is Not an Edge

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