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He Survived Every Stock Market Crash… Now He Trades $1 Billion/Day | Peter Tuchman — Transcript

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0:00Einstein of Wall Street, Peter Tuckman.
0:02I trade between a half a billion and a
0:04billion dollars a day. Do you think the
0:06average investor can beat the S&P 500?
0:08>> So if you were to buy $250 into the S&P
0:12500 every month from the age of 18, you
0:14would have $1.4 million by the time you
0:16were 60. But I believe if you follow the
0:19rules, you could probably beat the S&P.
0:21Did you meet Jordan Belfford?
0:22>> Of course. He came down to the New York
0:23Stock Exchange and he tried to recruit
0:25brokers to They were all taken off the
0:28floor by the FBI in handcuffs.
0:30>> Have you seen greed ruin a lot of
0:31people's lives?
0:32>> Absolutely. I've seen them go broke over
0:34it. This is not a get-richquick scheme.
0:36It's not for people who just want to
0:38find the easy way [music] out. That's
0:39not the way to do this. I got CO March
0:4115, 2020. Patient zero got the worst
0:43strain that was out there. I was given 3
0:45months to live. I lost a big part of my
0:46left lung.
0:47>> Peter, with the life and career that
0:48you've built, how do you want to be
0:50remembered? So, I think that um I always
0:52get emotional about it. I want to be
0:54remembered as somebody who
0:57What's going on everyone? Welcome back
0:59to the School of Hard Knocks podcast.
1:01I'm James. I'm here with Jack and Josh.
1:03And we have an incredible guest for you
1:05all right now. My good [clears throat]
1:06friend Peter Tuckman, otherwise known as
1:09the Einstein of Wall Street. He is the
1:11longest ever standing trader on the
1:13floor of the New York Stock Exchange,
1:15the most famous stock broker in the
1:17world. [laughter] Peter, thank you for
1:19being with us. I am honored to be with
1:20the three of you.
1:21>> It seems like every time I'm in New
1:22York, I have to see you.
1:23>> We have to be. We have to be together.
1:24That's it.
1:25>> You know what I mean?
1:25>> Yes, I do.
1:26>> I want to get I want to get right into
1:27it. I want to get started.
1:28>> Let's go.
1:29>> You've been on the floor of the New York
1:30Stock Exchange for now four decades.
1:32>> Correct.
1:33>> You've been through some of the most
1:34insane financial booms, financial
1:36crashes. I want you to take us back to
1:38the most chaotic day on the floor of the
1:41New York Stock Exchange. What happened?
1:43>> Okay. So, um I started on March 28th,
1:461985. And it wasn't until recently they
1:49put up a photograph uh uh at the stock
1:52exchange that that that was in fact the
1:53day that I was so I I was 25 years old.
1:55I had just come back. I'd been living in
1:56Africa and uh uh I got a summer my
2:00parents said, "You know what? It's time
2:01for you to like put on your big boy
2:02pants and let's let's get down to
2:04business." And I had a much older
2:06brother who had been who was a pretty
2:07big uh takeover guy on Wall Street back
2:10in the day. And so they got me a summer
2:12job. I come back from Africa on the 23rd
2:14of March and I'd been there for a year
2:15and a half. and I just sort of walked in
2:17this job. It was a summer internship.
2:19Turned out it was the day that Ronald
2:20Reagan rang the opening bell. I was 25.
2:23I was overwhelmed by the, you know, back
2:24then it was open outcry. There was 7,000
2:27people in that room that you've you've
2:28been in a couple of times. And uh so I
2:32was fortunate enough after the summer to
2:34move my I loved it. I loved it. The
2:36minute I walked on the floor, the chaos,
2:38the the adrenaline that's kind of that
2:40defi that's my that's my sweet spot,
2:42right? Some people would go, "Oh my god,
2:43I don't want I I need to, you know, have
2:45a cigarette and a newspaper and a coffee
2:47to get going. That's not me. I'm kind of
2:49I'm thoroughbred out of the gate." And
2:51so, um, I was able to move my way up.
2:54And by the time the crash of 1987
2:56happened, uh, everyone needs to know
2:58that all the crashes that we've seen,
3:00and I don't use that word lightly, we've
3:02had a handful of them in history. Uh,
3:051929, there was probably one during
3:07World War II. uh there was a crash of
3:1087, there was the internet bubble, there
3:12was um the financial financial crisis
3:150708 08 09 and then obviously COVID and
3:19then last year's um uh the tariff
3:23selloff that we had 20% and then I would
3:25say we had a maybe a couple of mini
3:26ones, you know, we just came out of one
3:30around the um the war with Iran. So each
3:35I would say each one of these crashes
3:37you know didn't happen in a day although
3:39the crash of 87 did and each one of the
3:43crashes pullback you know their their
3:45crashes and then their pullbacks
3:46sell-offs consolidations. So um they the
3:49components that made up each one of
3:50these things which were major the only
3:52thing that is similar about all of them
3:54was that before they happened the market
3:56was trading at record highs before it
3:58happened. A crash did not happen when
4:00the market had sort of been eroding. It
4:03happened when it was at the high. You
4:04can go really literally go back to
4:06February 19th um of um of last year uh
4:11in 2025 when Donald Trump decided to
4:14start talking about tariffs was the high
4:17of the market. February 12th of COVID
4:19when the market started to un unravel
4:21around COVID and and obviously that uh
4:24where we really sold off you know
4:26probably 14 15,000 points on the Dow.
4:28February 12th, record high. The day
4:30before the crash of 87, also a record
4:33high. But each one of these crashes had
4:36a different component that made it
4:37happen. Right? Obviously, COVID was a
4:39health global health crisis. 0708 was a
4:42a predatory lending crisis. 87 was a
4:46little bit different and I've still not
4:47been able to get to understand what
4:49really was going on. But, you know, it
4:51was open outcry. It was paper things.
4:52There was no technology at that time,
4:54right? We were all paper, all screaming
4:56and yelling like you've seen in the
4:58movies. And I was a clerk at the time,
5:00right? So I stood in front of a a
5:03battery of telephones back in the day.
5:05You would have these black regular
5:06receiver phones and you'd have those
5:08little buttons you would push. And I had
5:10over a hundred telephone lines. And then
5:12we had these machines called DOT
5:14machines which were were sort of
5:15spitting out this this was the most
5:17technology there was at the time would
5:18be spitting out these small retail
5:20orders. Buy 500, sell 500. And uh we
5:25came into work that day and there was
5:26sort of a lot of
5:29anxiety around the day before but uh it
5:31was black Monday right percentage- wise
5:34it was the biggest selloff I think we've
5:36ever seen you know because back then
5:38market was not you know we're now at Dow
5:4050,000 so sell offs are different
5:42percentages versus how they were I think
5:44the Dow was you know in the 80s Dow was
5:46at 3,000 I think the Dow was at
5:506,000 at the time and we sold off 600
5:52108 points. It was so percentage- wise
5:55it was the biggest. I think it had to do
5:57a lot with there was some insurance
5:58stuff going on, a little bit of in
6:00incoming technology, but my memory of it
6:04was as a clerk um
6:07was sort of desperation. I mean, the
6:09machine was spitting out orders like
6:12like you couldn't even I would imagine
6:14it's probably like in a restaurant if
6:15you've seen like the show The Bear when
6:17things get chaotic and their orders are
6:19coming in from the you know, from the to
6:21the kitchen and whatnot. orders were
6:22just spitting out and I was just tearing
6:25and ripping and tearing and ripping. I
6:26had these what we call $2 brokers. They
6:29were independent brokers who were just
6:30lining up. I would hand them stacks of
6:32orders and they were would just go out
6:35into the crowd and basically by the time
6:37the market started to just implode like
6:40way to give you an understanding of how
6:42much of a selloff it was, there was a
6:44company back then. It was one of the
6:45first computer companies. It was called
6:46digital equipment uh deck and the stock
6:50opened at 168. It closed at 40 just to
6:54give you a sense of the value lost
6:56obviously. Now you see stocks go up and
6:58down you know millions and billions of
6:59dollars in a day that back then if there
7:01was a three or four point move in the
7:03Dow it was a big day.
7:05>> So to think that we sold off 608 points
7:08was was quite devastating. So there was
7:11definite mayhem. There was definite
7:12chaos. You know, the bottom line is
7:14though, you're in you're in the at at
7:16you're in the heat of battle, right? And
7:18so, as a clerk, being on the front lines
7:20of it, it's not like I I already had a
7:23sense that when something like this
7:25happened, I could not crumble. I could
7:28not waver. I could not like freak out,
7:30right? You needed to, you know, it's
7:32like, and I'm not comparing myself to a
7:34soldier at war, but you know, you're in
7:36the front lines and it's there's money
7:38involved, right? I, you know, and if I
7:40make an error, it's going to it's going
7:42to come out of my my hide and it's going
7:43to be costly. And so I had to navigate
7:46the room and navigate the order flow
7:48coming in and navigate the brokers I was
7:50giving it to. And all I remember was
7:54just a look of absolute horror on
7:56everybody's face and and you know,
8:00you know, when when and stress obviously
8:03too. And so, um, but it's funny, you
8:06know, some people can't, some people can
8:08handle that, some people cannot. I kind
8:10of rise to the occasion, you know, that
8:12that was one of my first introductions
8:14to where it's like, okay, this is sink
8:16or swim, you know, that was where I I
8:18really cut my teeth. And I would have to
8:20say it was, you know, by the end of that
8:22day, if you kind of think of that
8:24trading places movie day, you know,
8:26where at the end of it it's like
8:28everybody throws their paper on the
8:30floor and it's like, you know, now is
8:31the time to, you know, uh, margin call,
8:34Mr. Duke type of a moment. Um, hysteria,
8:38chaos, mayhem. However, you know, I knew
8:41that I had every dot, you know, uh,
8:44dotted and every tea crossed. So that at
8:46the end of the day I probably collapsed
8:48to the floor but but I knew I had done
8:50you know a good job. Peter, this is
8:53maybe an interesting question, but I
8:54feel like when you look at the course of
8:56finance, in particular, New York City,
8:57Wall Street, right? One of the most
8:58competitive districts for finance,
9:00right? It's the financial capital in the
9:02entire world.
9:03>> You know, in the times that I've met you
9:05and anybody that I feel like has met
9:06you, you have this I I want to call it
9:08like a delusional optimism about you,
9:10which I think is one of your
9:11superpowers, you know, beyond just the
9:13the tactical trading side of things. But
9:15when you think about in finance all the
9:17highs and lows that come, I mean, I I'll
9:19put it blank. There's people that that
9:20jump out of buildings because of because
9:22of, you know,
9:23>> 100% because of money.
9:24>> 100%. How have you maintained such a
9:27levelheadedness throughout your four
9:29decades being in finance and still being
9:31just a very optimistic and happy person?
9:33Because I've interviewed, I've met a lot
9:35of successful people, financial traders,
9:37and you can tell that deep down they are
9:38miserable. How have you kind of, you
9:40know, maintained your happiness and your
9:42peace of mind despite all that's gone on
9:44and all that you've witnessed? So, you
9:46know, I it's I love the question because
9:49it's um I've never really thought of it
9:51before that way. But, you know, um
9:55I think the real answer to the question
9:57is that I never up until recently I
10:00never owned a share of stock in my life.
10:03Now, people would go like, "What are you
10:04what are you kidding me? That makes no
10:06sense. You're a stock broker. Of course,
10:07you you bought and sold stock for
10:09yourself. You had a 401k or whatever."
10:12Literally, you have to realize that as a
10:14broke, I I got my first seat on the
10:16stock exchange, uh, April 17th, 1988.
10:20So, I'd been there about three and a
10:21half years. It used to take most usually
10:23between 13 and 15 years to get a seat. I
10:25got lucky. One guy retired, one guy got
10:27fired, one guy quit, and I just got
10:29moved up. I was in the right place at
10:31the right time. And I was told at that
10:33time that as a broker, you have certain
10:35regulations and uh you're not allowed to
10:38own a stock within a 30-day period for
10:41yourself and a customer, right? So,
10:43because obviously there's a conflict of
10:45interest. Like if I'm in a in a stock
10:47for myself or the customer, I I know
10:49that I have a million shares to buy for
10:51for one of my customers and I go out and
10:54buy the stock for myself. Well, that's
10:55called front running. You know, that's
10:57that's Jordan B. That's what Jordan
10:58Balfford did. you know, when Jordan
11:00Balfford came down to the floor and
11:02recruited eight brokers uh to be his his
11:05his sort of lackey, you know, he came up
11:07to to all of us and he said, "I'll pay
11:09you a million bucks if you when you get
11:11a big order, right? If when you get a
11:13big million share order, you buy the
11:15first 5,000 for me and then when you're
11:17done buying it, you sell the last 5,000
11:20for me. That's called front running."
11:21>> Did you meet Jordan Belfford?
11:22>> Of course. He came down to the New York
11:24Stock Exchange and he tried to recruit
11:26brokers to um to do his bidding which
11:29was that which was front run the stock
11:32market because there were uh uh there
11:35were house brokers, there were $2
11:36brokers and then there were people who
11:38were had good relationships. There were
11:41people had really good relationships and
11:42they stood in one stock. They had a
11:44great feeling for the stock. You know
11:46the stocks are funny that way. If you
11:47trade a stock all the time, you've got a
11:50feeling for it. So there were market
11:52makers who ran the stock. IBM was a guy
11:54named Brian Yunker. Amazing guy. He knew
11:57there may have been be a hundred people
11:58in his crowd. He knew what everybody
12:00had. That was the that was his secret
12:01sauce. And then there would be one guy
12:03who stood in the crowd. One guy stood in
12:05Philip Morris. He just knew how to trade
12:07in Philip Morris. So if any of us had a
12:09order in it, we'd give it to him to
12:11protect us because he had all the orders
12:13in his hands. Um
12:16yeah. So Jordan Balfford came down to
12:18the floor. He found the people who were
12:20those people who stood in one stock and
12:22he went up to them and said so you get
12:23million share orders in a stock and they
12:25said yes. He said okay what I want you
12:27to do is I want you to buy when you get
12:30an order to buy a million shares you
12:32call me up and I want you to buy the
12:34first 5,000 for me and then as you buy
12:36the million shares by the time you're on
12:38the end of it it's probably up a few two
12:39or three dollars you sell my last 5,000.
12:42That is classic called front running.
12:44It's buying stock with the knowledge of
12:46a buy order, right? It's as illegal as
12:48you can get. And about eight brokers on
12:50the floor took them up on the deal. He
12:51offered a million dollars and uh they
12:54were all taken off the floor by the FBI
12:56in handcuffs with the uh you know with
12:59the the the jackets on. Um and uh and
13:02most of them spent more time in prison
13:04than he did. But let's move away from
13:05that. Um
13:08you asked me how I was able to navigate
13:10all of that. And so, honestly, up until
13:13recently, my wife passed away a couple
13:16of years ago and she left some money and
13:18so I uh I figured out a way that I could
13:20open up a uh retirement account and have
13:24no control of it or no contact with it
13:27and so that I wouldn't because I am I
13:29built a trading strategy in 19 probably
13:3126 27 years ago trading the S&P 500. So,
13:34I'm actually in every one of the 347
13:38stocks in the S&P every day. So
13:40literally I can't I couldn't you know
13:42and what other stocks I mean I could
13:44probably pick a couple of outlier stocks
13:46to invest in but le leg legally I
13:48couldn't actually buy any of those names
13:50and be in them for a customer.
13:52>> And for context how much stock are you
13:54trading a day? So I the best way to
13:56describe it is it's hard to know how
13:58many shares, but I know the dollar
14:00amount because on my handheld computer
14:03that routes the orders out, I get to see
14:06what my credit limits are, which is how
14:08much am I allowed to, you know, my
14:10machine will has sort of guidelines like
14:14I don't want it, you know, because you
14:16your your we make mistakes. There are
14:18errors. There are things like that. So,
14:20we'll put a credit limit, which is the
14:22the total amount of money that my
14:23machine will let me accept so that
14:25somebody doesn't send an erroneous, you
14:27know, billion share order or something.
14:29My machine will flag it and say, "Oh,
14:31that's that must be a mistake, right?
14:33You're over your limit." And so, I trade
14:36usually between a half a billion and a
14:37billion dollars a day in uh in in stock
14:41and in in the S&P and in the S&P 500
14:44with my son. My son is my partner. We're
14:46the last father and son team on the
14:48floor. When I got on down on Wall Street
14:50in ' 85, there were 70 market makers and
14:53almost all of them were family-owned
14:55businesses,
14:56>> right? There were fathers, uncles,
14:57brothers, and they all there was the
14:59Henderson brothers. There were the Cohen
15:01brothers. There were Irish, Italians,
15:03and Jews. Came down to Wall Street in
15:05the early part of the century. They had
15:07a little money. They came down. They
15:08were give allocated one stock. They
15:11traded it. They did well. They were
15:13given another stock. And then they grew.
15:15And that's kind of how it happened. But
15:18without having skin in the game, without
15:20me worrying about my own portfolio, like
15:23if I'm in a crash and I know that my my
15:26retirement fund just went from being
15:28worth $100,000 to being 5,000, I would I
15:31would be stressed over it no matter
15:33what. Money's just that way. But if I my
15:36sole purpose of being there in the day
15:38is taking care of my customer,
15:41>> right? Then that's where my focus is,
15:44then I don't need to be stressed. I'm
15:46just doing the right thing by him. I'm
15:47not in a financial adviser. I'm the
15:50executor guy, right? I'm the guy who's
15:52doing it. So, all I need to do is be
15:53hyperfocused on doing the right thing
15:55for him. And so, at the end of the day,
15:57whether the market goes up or down, I
15:59don't care as long as I've done the
16:02right thing for my for my customer. So,
16:04I'm not my P&L, my profit and loss is
16:07not connected to whether the market's
16:09crashing or rallying. And so, I think
16:12that's a big part of why I've been able
16:14to navigate it. And also, you know, for
16:16me, I one of my secret superpowers is
16:19that I I I I uh rally into adversity,
16:26right? I've had I've had wonderful times
16:28in my life and I've had really hard
16:29times. And so there's this level of
16:31resilience in me, right? And there's,
16:34you know, when I see uh a situation that
16:37needs like triage or, you know, I run to
16:40it. I don't run away from it, you know?
16:42And so
16:42>> you're trading 500 million to a billion
16:44dollars every single day. Who are your
16:47customers? Is it family offices? Is it
16:49the everyday retail investor? Like who
16:51who works with you primarily?
16:53>> Okay. I've had the same three customers
16:55for almost 30 years, right? And uh my
16:59it's a hedge fund. Okay. It was it's a
17:01bunch of young guys who um actually were
17:05um uh card counters. They all went to to
17:08school together. One of them is the
17:10number one uh uh Magic card player in
17:13the world and they uh they started a
17:15small hedge fund together and they were
17:17searching out this crazy guy who used to
17:19walk around the floor asking for what
17:22the imbalances are for the close and
17:24that was me, right? And I used to do it
17:26every day and I'd scream into a phone
17:28and and they found me and we developed a
17:30relationship and we've been trading
17:31together. So, it's a hedge fund. It's a
17:35uh highwealth guy from Texas and it's a
17:38trading desk out of Texas as well. And
17:40then we've picked up a couple of small
17:41people. So, it's not retail customers.
17:44It's not real individuals. It's
17:46basically uh small hedge funds and and
17:49and and and prop shops.
17:52>> Do you think the average investor can
17:54beat the S&P 500?
17:56>> So, good question. Um so we are people
18:00need to understand that something really
18:02radically changed around COVID right
18:05before COVID you needed to be an
18:06accredited investor to trade the stock
18:08market. What did that mean? That your
18:10parents, your grandparents open an
18:12account at Meil Lynch, Smith Barney, any
18:14of those old firms, they had to when
18:16they gave them $5,000 of their
18:18retirement fund or something to, you
18:20know, advise and run their money for
18:21them if they had money. Um, they had to
18:24prove that if they lost 100% of it, it
18:26would have no effect on their standard
18:27of living for five years. That was that
18:29sort of because, you know, they didn't
18:31want to take on the responsibility. They
18:33one of the main things about Wall
18:34Street, you don't you don't quit a job
18:36to start trading to feed your family.
18:39That's not a great thing, right? You
18:41don't take your last $5,000 and start
18:43trading hoping you're going to get
18:44yourself out of a jam. Usually, it's
18:46it's, you know, it's it's disposable
18:48income that one puts into the market. So
18:51when COVID came along, uh, Weeble, Robin
18:53Hood, uh, it suddenly went from an
18:56exclusive, not inclusive place, Wall
18:58Street, where most people were not, uh,
19:01had access to it to basically everybody
19:04where, you know, with with Robin Hood
19:05and Weeble and a couple of the other
19:06firms, TDMR trade, anybody with an
19:08iPhone and 100 bucks could suddenly
19:10trade the stock market. The
19:11accessibility was wide open. Everybody
19:13was invited to the party. Okay? And uh
19:16there was this 50 million plus was a
19:19number that people threw out of all the
19:21new retail pe people who came and think
19:22about it. We were COVID sheltered in
19:25place, locked at home. Everybody got a
19:27little stimulus check. Uh Reddit popped
19:29up. Wall Street Bets came around. The
19:31meme phenomenon happened. All eyes were
19:33on Roaring Kitty. All eyes were on Wall
19:35Street, right? It suddenly from out of
19:37nowhere, the whole world was looking at
19:39Wall Street, right? stocks like GameStop
19:41going from two to 483, back to three,
19:44Rivian, all that. You know, everybody
19:46wanted a piece of it and they suddenly
19:48had access to it, right? And so they
19:51created this new sort of a whole new
19:54generation of young traders that came
19:55along. I think 80 90% of the people who
19:58came around that time blew themselves up
20:01hundred times over, you know. They said
20:03stocks are going to the moon, you know,
20:05and I always said to them, nobody got
20:07broke taking a profit. sell that stock,
20:09you know, and sure enough, it didn't go
20:11to the moon. It went from 483 right back
20:13down to two. But what's come out of that
20:16is a new generation of incredible young
20:19traders, right? I work for a firm called
20:21Apex Trader Funding. They are a
20:22simulated trading prop shop. They give
20:24accessibility and funding to people who
20:26couldn't have access to the market to
20:28trade. I've seen now a new generation of
20:30young people 18 to 25 day trading the
20:34stock market who have become so
20:35successful. You have to realize that the
20:38people who are day trading the market
20:39now are coming out of the uh the video
20:41game generation. They are really good at
20:44sitting down in front of a you know I've
20:46never played a video game in my life but
20:48I don't know Grand Theft Auto or
20:50whatever that you know crazy video
20:51stuff. They know how to work a keyboard
20:53right? So when they were suddenly given
20:55an opportunity that they could do that
20:57and make money doing it, they the the
21:00transition from I guess video games to
21:02to day trading stocks was a very easy
21:05one. And I've seen this generation and
21:08it's become so successful bringing in
21:11hundreds of thousands of dollars a
21:13month. I mean, I have some young traders
21:15that I've seen who I've mentored who are
21:17who went from, you know, inspired by me
21:21at saw my first video when they were 12,
21:2313 years old who are making $20 million
21:25a year now in their 20s and have these
21:27amazing communities around them. So, I
21:31truly believe they've become there's
21:33this new generation of retail that's
21:35become smart money. They become great
21:37traders. you know, surely a majority of
21:40them, you know, are making up a lot of
21:41stuff and blowing their accounts up and
21:43everything, but I believe if you're a
21:46responsible, disciplined, consistent day
21:48trader and you follow the rules, you
21:50could probably beat the S&P.
21:52>> Peter, I think that in our interview you
21:54said this, but I saw in a clip with you
21:56and I show speed where you told him you
21:59need to buy stocks and not products and
22:03you buy stocks, not stuff. And if you
22:06buy stuff, you need to go buy the stock
22:08associated with that stuff. For example,
22:10if you have an iPhone, you should go buy
22:11Apple stock. If you buy Nikes, go buy
22:14Nike stock. Uh, break that down and
22:16maybe any other tips that you have for
22:18for, you know, just young people who are
22:21wanting to get into investing. You said
22:22Robin Hood, they've Robin Hood, Weeble,
22:25like all these new apps have have opened
22:27up for the retail investor to be able
22:29you could take a $100 and start, you
22:31know, trading. And so like for you like
22:34what what would your message be to that
22:36young retail investor uh who's just
22:39getting started today?
22:40>> Gotcha. So I uh thanks for that question
22:42as well. So the I show speed thing there
22:44you know there was a gentleman who was a
22:46market maker on the floor who who's
22:48that's his line. Invest in stocks not
22:49stuff and I have never taken credit for
22:51it. I just I have a bigger platform than
22:53he and so I I I love getting across that
22:55message. The concept behind it is this.
22:57We have we are now you guys. And I I I
23:01consider myself a young generation
23:03person are the greatest consumer
23:05generation of all time. We we are
23:07incredible loyal brand customers, right?
23:09We you know I always when 13 14 year
23:12olds ask me like what should I invest
23:13in? I say walk down the corridor of your
23:15high school and ask everybody check out
23:18what sneakers they're wearing, what
23:19phones they use, what computers they're
23:21on, what they do in their spare time,
23:22what social media they're on, and then
23:24go out and buy one share of every one of
23:26those things because it you're going to
23:27get probably Nike. Nike has not always
23:30performed as well as some people would
23:31like, but it's still a great company.
23:33You'd probably get Apple, Nike,
23:36Snapchat, Instagram, um, you know, uh,
23:40maybe a little bit of betting, you know,
23:42uh, uh, stuff like that. You know, we
23:44are loyal to our brands. I mean, I know
23:46I am, you know, I have the same kind of
23:48phone all the time, the same kind of
23:50clothes all the time. I do things like
23:51that. And so the the idea behind it, the
23:54mindset behind it is if I am so loyal to
23:57a brand that I love it. Think about
23:59this. If every time the which is how I
24:02was able to get across to to I show
24:04speed and he he was spectacular. Um uh I
24:07said, "So every time the new iPhone
24:09comes out, do you get it?" And he said,
24:11"Absolutely." And I said, "You mean even
24:13if the your iPhone 16 is not broken, you
24:15get the 17?" He goes, "Yeah, of course."
24:16I mean, obviously he's a wealthy kid,
24:18but you know, but everybody does that.
24:20you know, they want the next iteration
24:21because it's got a better camera, a
24:23better this or better this. And I said,
24:25"Well, just imagine if you go back a
24:27little bit and instead of, you know,
24:29jumping to the next iPhone, you know,
24:32you went out and bought five shares of
24:33Apple stock with that $1,000, right?
24:35It's $250 a share, you you instead of
24:38spending $1,000 on a new phone, you wait
24:41you wait some time and buy Apple shares,
24:44right? It's a mind. It's just
24:46understanding that you love the product.
24:48it's being made by that company. So, if
24:50you're thinking about investing and
24:52growing some kind of a portfolio, then
24:54you you go out and buy the stock because
24:56we should be buying stocks that we are
24:58familiar with, that we like the company,
25:00and that are in in good condition. And
25:02normally that that Apple's obviously I'm
25:04not no recommendation. I'm not an
25:06adviser, but it's a great company, one
25:08of the greatest companies of all time.
25:09And so the idea is that, you know, if
25:12from
25:13iPhone one to now we're at 17. If I, you
25:17know, I surely don't want to sit around
25:18with an iPhone one still, but think
25:21about it. If I bought five shares of
25:22Apple every time a new phone came out
25:24and kept my phone, right, uh, I would
25:27now have probably, I don't know, you
25:29know, 20 25 shares of Apple, which is
25:32probably worth tens of thousands of
25:33dollars as opposed to a drawer full of
25:34old broken iPhones. So, it's the it's
25:37the mindset that that instead of going
25:40out and just buying something, we love
25:42to buy things. Think about Instagram. I
25:44do it. I'm I'm a terrible culprit of
25:46this. I see something I love, you know,
25:48scrolling at 2 o'clock in the morning. I
25:50see something, not only do I buy it, but
25:52I pay an extra $25 to have it delivered
25:54to me yesterday. And so, think about all
25:56that money. There's a number out there
25:58and I think I told it to you in your
25:59first interview with me that if at the
26:01age of the S&P 500 is a basket of 500
26:04stocks that kind of give you a wonderful
26:06footprint of tech, consumer staples, a
26:08little bit of everything. You know,
26:10Shake Shack, you love burgers, Madison
26:12Square Garden, you love basketball, go
26:13nicks. Um, uh, all you know, Apple,
26:16Amazon, stuff like that. Um,
26:19[clears throat]
26:20and so if you were to buy SPE, put $250
26:25into the S&P 500 every month from the
26:27age of 18 to the age of 60, you would
26:30have $1.4 million by the time you were
26:3260. Now, I always say this 60s, it's not
26:36the sexiest part of that scenario, but
26:381.4 million is. People always think that
26:40they need to have figured everything
26:42out. You talk about this a lot, too.
26:45People don't you don't need to have
26:46everything figured out to do something,
26:48right? To start something, right? You're
26:51just waiting around wasting time. Gary
26:53Vanichek also says that also. Just get
26:56busy. Do it, right? It's that great the
26:58Nike line. Just do it, right? And so the
27:00same thing with with investing in the
27:02market. If most people wouldn't even
27:04think that was possible, that think
27:06about all the $250 that we waste on too
27:09many Starbucks or whatever people waste
27:12money on. And I'm I do it too. If you
27:14just put that into the stock market,
27:16never thought about it into the S&P.
27:18Think about all the things that have
27:20happened over the last five years with
27:22all the wars and and oil and and the
27:24tariffs and this since co the S&P is up
27:27over 145%.
27:29So to think that any kid now who's now
27:32and I I have followers who are 9 10 11
27:35years old ever since the I Shallow Speed
27:37interview. If they put $5 a week or $10
27:40a month or whatever, you don't have to
27:42have 250. But if you just once again,
27:46it's a mindset of investing in your
27:48future. And you know, we all have
27:50closets full of stuff that we bought.
27:52The minute we bought them, they went
27:54down in value. We used them once. We
27:55really don't need them, right? That urge
27:57to have something literally la urge by
28:01definition lasts about 20 minutes. So
28:04every time you want to go out and buy
28:05something, walk around the block, have a
28:06piece of chocolate, and then go put that
28:08money into the stock market, right?
28:10You'll probably end up being a wealthy
28:12guy. So that's that was the whole point
28:14of that concept.
28:14>> But I want to go a step further on this
28:16because in our interview, you also
28:17talked about how like I love the
28:20philosophy of invest in stocks and not
28:22stuff, but it's also like the little
28:23parts of these devices, for example,
28:25with Apple, like the chips that make up
28:27Apple. And so you're [clears throat]
28:28very diligent about looking into all of
28:31those little components right now. Like
28:32we talked about Nvidia in our last
28:34interview, but you also break down that
28:36side of things as well.
28:37>> 100%. So we think of products uh as as
28:41the end result of of of the
28:44manufacturing of them, but we don't
28:46think of when you're sort of like Jim
28:48Kramer is really wonderful about this as
28:50well. You know, we always want to find
28:52the next big hit, the next trillion
28:54dollar company. Jensen Wang, Nvidia's
28:56CEO the other day said that Marll is
28:59going to be the next trillion dollar
29:00company. It was trading at $264. It went
29:03up $75. Was up 36% on that. So, um,
29:08Marll, I don't know that much about the
29:11company, but I know it makes some of the
29:12internal workings of of of AI, right?
29:16So, think about it. So, we buy we buy uh
29:19Nike because we like their sneakers,
29:21right? We buy the Apple phone because
29:23we're just it's the best phone out
29:24there. We all we all think because it's
29:27the most popular one. And but people
29:29want to know how do I actually a lot of
29:32those stocks have already made their
29:34move right and so if you think about it
29:37Dan I is a number one tech analyst in
29:39the world who's one of my mentors al
29:42also has taught me a lot about this that
29:44there's what's called the secondary and
29:46tertiary trade around AI around a lot of
29:50different things around the iPhone the
29:53things that go into an iPhone the things
29:55that are the components right those are
29:58all individual companies as well. Apple
30:00doesn't own all the things that go in
30:02there, right? Like rare earth minerals
30:04that go into all these products or or
30:06the chips that go into uh AI and what
30:09makes G G G G G G G G G G G G G G G G G
30:09G G G GPUs work and all that kind of
30:11stuff, those companies are all
30:14independently publicly traded companies
30:16as well. So if people actually do that
30:18kind of due diligence and investigation
30:21and want to sort of get in on the ground
30:23floor of Right. So there's um Jensen
30:26Wang also said in December that the next
30:30thing that's going to either be the
30:31obstacle or the catalyst to make AI be
30:34even bigger than it is is going to be
30:36energy. Right? So they never thought it
30:39was going to be I mean if you go back
30:40four or five years Dan Ives was touting
30:43Nvidia back when it was $30. Everyone
30:45said oh AI it's never going to be
30:46anything. Okay it turned out to be
30:49something. the building of data centers
30:52now is is is as a result of the fact
30:54that AI is so huge they need GPUs and in
30:58order to get GPUs which is the the the
31:00component that makes AI happen you need
31:02data centers to make more GPUs are a
31:05limited thing it's like Bitcoin right
31:07there were Bitcoin miners right you know
31:10who are making Bitcoin in their home in
31:12the basement right there are now GPU
31:15entrepreneurs who are setting up that
31:18and I'm working with a company called
31:20Argentum, right? It's a guy named Andrew
31:22Sopco. He had a company called Batch,
31:24which was a logistics uh um uh company
31:27during COVID. He started Argentum, which
31:30is a marketplace for for GPUs. So, every
31:34product that we use and that we own and
31:36that that
31:39we're going to be using, right, has
31:41every has all the components in it,
31:43right, that are being made by a company.
31:46And so it's it smart investing my I
31:49believe is to go out and find out what
31:52those companies are that are making the
31:54inner the inards right like our you know
31:58like our internal organs of those
32:00products that are going to be the next
32:02thing and sometimes you can get in on
32:04the ground floor of that because they're
32:06they may not be trading at $180 a share
32:08but they they may be you know on the way
32:11up. I'll give you one example. Uh, a
32:14company called Hilleion. And I'm not
32:15recommending anything. I'm not if I
32:17disclaimer across the board.
32:18>> Are you Hilon?
32:20>> Hilleon.
32:20>> That's Thomas Healey.
32:21>> Yes. Thomas Healey is a good friend of
32:23mine. He's been on the show.
32:24>> Oh, he he's wonderful. Thomas Healey,
32:26youngest CEO of a publicly traded
32:28company in history. At 23, he invented
32:30the 18-wheel electric truck back when
32:34electric vehicles were the thing, right?
32:37He came down to the stock exchange. He
32:38and I were in a big commercial together
32:40that the stock exchange did.
32:41Extraordinary young man and EVs were
32:45hot. He was hot. Stock came out at 10.
32:47It went to 60. It was a beautiful thing.
32:49And then they went out of out of favor,
32:51right? And the stock went straight down
32:53to two. And he and he had a couple of
32:57choices. He could just go to bail and
32:58just realize like, well, you know, this
33:00I had my run and whatever or pivot.
33:05He's also the youngest man to ever take
33:06a company and completely change their
33:08trajectory. And what he ended up doing
33:11was he realized that he listened to
33:13Jensen Wang who said that the energy
33:16part of the AI trade is going to be the
33:18next thing that'll either be the
33:20obstacle or the catalyst and generators
33:22things of be able to create the energy
33:24grid that will run the data centers is
33:27key. And so he went out and I believe
33:29bought from General Electric a 3D
33:33printable generator that has the
33:37capacity to
33:39produce energy for data centers. Now
33:42that stock has gone in the last I I hope
33:44you listen to him when you when you
33:45interviewed him because that stock has
33:47gone from two to eight today, right?
33:50Over the last three or four months. Um
33:53and so think about how amazing that is.
33:54He pivoted. He saw an opportunity. He
33:56saw a problem, he looked for a solution
33:58and found it and he pivoted.
34:00>> He's been getting some big contracts
34:02with like the Navy and stuff like that
34:03>> and everybody that's so that's a perfect
34:06example of where you know how that that
34:08pivot works. So for the average like
34:10retail investor as well
34:13there's I I know that they pretty much
34:15find out a lot about what's going on
34:17within the market via news or social
34:19media
34:19>> or me
34:20>> or you [laughter] I and I was actually
34:22going to ask is like what is the best
34:23way for someone to stay in touch with
34:25like okay how can I get in on markets
34:27and stocks before they actually are too
34:29big for there's not that much of a a
34:31change or it's not really worth
34:32investing in anymore
34:33>> right so uh first of all I I don't think
34:36it's ever too late to invest in the
34:38market overall, but obviously individual
34:40stocks have had great runs and and you
34:43know some at some point they may be
34:45overbought you know or they may be a
34:47little bit too expensive. So there is so
34:49much information is is you know uh we
34:52know that data is gold and information
34:54is really important. Um you know to be
34:57perfectly honest Instagram is actually
34:59you know if you take it with a grain of
35:01salt there's a lot of information out
35:03there. go out and pick. I mean, I could
35:05give you a list of about five people who
35:07are really smart who are on social media
35:10who give really great information. Just
35:12beware because there are a lot of bad
35:14guys out there, right? There are guys
35:16who have created large social media
35:17communities. Once again, going back to
35:20the pump and we we talked about front
35:21running. Well, there's pump and dump was
35:23one of Mr. Balfurt's other things that
35:25he did. He used to go out and buy
35:26millions of shares of penny stocks. And
35:28then he'd have all those people in the
35:30movie, you know, cold calling, you know,
35:32old men in Florida and going, "Oh, we've
35:34got the next big thing. Go out and buy
35:35it." You know, and they already owned
35:37millions of shares of it. And then when
35:39they talked these people into buying it,
35:41they were selling it. It's called pump
35:42and dump. So there are a lot of bad guys
35:44out there. There was a gentleman who was
35:46had a big Twitter following, he did that
35:48as well. So there are good people on
35:50social media. Uh, obviously the
35:52information is out there. You could
35:54listen to Jim Kramer for information and
35:56educational purposes. you can listen to
35:58me, right? Uh I don't advise, but I I
36:01give you an explanation of forensically
36:03why the market does what it does. Um
36:06there are people like Dyn there's lots
36:07of really good podcasts. There's a lots
36:09of really good information out there on
36:12on there's a newsletter. There's a
36:14gentleman I I don't know if you've
36:15interviewed him, but you probably
36:16should. He liquidity, you know him on
36:18from Twitter. Do you remember when COVID
36:20came out? He was the guy who basically
36:22invented the meme. Um, in the beginning
36:25he was the first guy to put a meme on on
36:27Twitter and Elon Musk uh uh liked it and
36:31reposted it and that was the beginning
36:32of his so he he he's known as liquidity.
36:34He was anonymous for many many years.
36:36His name is Henry Medina. Wonderful guy
36:38and um uh he uh ju just you know he has
36:43a newsletter called Execum. It's my
36:46go-to in the morning. Literally in five
36:47minutes I can find out everything that's
36:49going on in the market. things about
36:52mergers, acquisitions, you know, the
36:54next big thing. Uh there's a gentleman
36:56named Wall Street Trapper. Great story.
36:59Uh when I was uh dying of COVID, right?
37:01I got COVID March 15, 2020. And uh
37:05patient zero. And I got the worst strain
37:07that was out there. And uh I hadund uh
37:10uh 103.7 for almost uh eight weeks. I
37:14was given three months to live and my
37:16cervical spine collapsed. A and I was
37:19short of just dying. I lost a big part
37:21of my left lung and I was sitting at
37:22home, you know, back then they didn't
37:24know what was going on. So I was suck,
37:27you know, secured plastic sealed
37:29apartment and all this and I was
37:31basically dying and I was alone in the
37:32apartment and all I had was my iPhone
37:35and uh I was sort of reaching out to
37:38just trying to you know keep myself
37:39going and a couple of people popped up
37:41on my feed on my feed. One of them was
37:43David Meltzer, another person you should
37:45meet. Uh you probably have uh my mentor,
37:49one of my mentors. He's the gentleman
37:51they made the Jerry Maguire movie about,
37:53right? He was somebody who made hundreds
37:54of millions of dollars in sports
37:56management, lost it all, went bankrupt,
37:58and then built himself back up, had a
38:00spiritual awakening, and now embarked on
38:02a mission to bring joy to a billion
38:05people in the world, right? Man with
38:07great advice with and a lot about things
38:09that you talk about as well. But Wall
38:11Street Chopper was a gentleman uh uh an
38:13African-American who had been in prison
38:16for uh sent to prison for 10 years for I
38:18think it was attempted murder or
38:20something. He had been in a gang in New
38:22Orleans where he grew up. And while in
38:25prison in solitary, he was uh he met a
38:29guy who was a Wall Street Ponzi guy,
38:32right? And they uh they sort of started
38:34chatting and the the the white Ponzi guy
38:37said to him, he goes, "You guys got it
38:38all wrong. you know, you're you're on
38:40the streets, you know, and you all end
38:42up in jail, you should um no disrespect,
38:45you should uh you should be doing Wall
38:46Street. Wall Street's just the the the
38:48the the not less dangerous version, you
38:51know, of what that hustle that you guys
38:53are doing. They spent the next 10 years
38:55together and he taught him everything he
38:57knew about Wall Street. And Wall Street
38:59Chopper came out of jail. He's now worth
39:02tens of millions of dollars. He has a
39:03community in the millions giving I I
39:05spent probably an hour last night
39:07listening to him about how you get
39:09exposure to SpaceX and what are the next
39:12stocks you know within the water space
39:14because Mr. Trump just said that water
39:16is going to be the next big thing. And
39:18Warren Buffett also said it. There are
39:20he's had an trap became a good friend of
39:23m there are people out there who have
39:26come from nothing who have learned
39:27everything about Wall Street who are
39:29sincere and giving out amazing
39:31information. I think uh one of the
39:34interesting things is that you know for
39:37a lot of people who you know trade
39:39stocks and things like that if they're
39:41just following the news then of course
39:42it's just like oh well this bad thing
39:44happened to a company so we're going to
39:45sell and this good thing happened to a
39:46company so we're going to buy and
39:48there's always the you know sell high
39:51buy low right but for you what what do
39:53you feel is like that extra edge I I
39:55feel like I'm asking the magician you
39:57know the the secret tricks here
39:59>> no you're not actually
39:59>> but like what do you feel like gives you
40:01know maybe a young trader or so or just
40:03anybody that's in the market like the
40:04extra edge to maybe they could be like
40:06one or two steps ahead of like all the
40:08big news craze that's out of course
40:10getting close to the source what we've
40:11kind of talked about but is there
40:13anything like in the in the trends of
40:15what's what's going on like what what
40:17for you is like the things that people
40:19should really be looking for of when
40:20they know like hey when is it time to
40:22get out of a position or when is it time
40:23to like I really need to go all in
40:25>> right so obviously there's news and
40:28obviously there is um people who are
40:31really doing their homework about this.
40:33There's a lot of really smart people out
40:35there who are, you know, the stock
40:36market has become, you know, um uh I I
40:41mean
40:43my my surge on social media has taken me
40:46to a whole another level. You know what
40:47it was like when you had 200,000
40:49followers and you went to the millions.
40:50It's a completely different world. My
40:52life has changed forever, right? And so
40:55I see that, you know, I was in Sardinia
40:57this weekend and I posted one little
41:00thing that I was in somewhere in
41:01Sardinia and uh I walked out of my hotel
41:05and there was a apparently there's a
41:07school in uh Switzerland, which is like
41:10the school where billionaires send their
41:11children. And it turns out they was five
41:15kids who were on a trip uh who were in
41:17that school and who were big fans of me.
41:20And they may had talked the mom into
41:22staking out my hotel and they waited for
41:24five hours for me to walk out of the
41:26hotel and I walked out and they were
41:28just like, "Oh my god." You know, this
41:31there are people from eight, my
41:33demographic is from 8 to 80. It's
41:36amazing how incredibly excited the world
41:39is about the stock market. All eyes. It
41:42is the number one thing. I can at this
41:44point barely walk down the street
41:46without, you know, w without just being
41:48in on I get on the subway within five
41:50minutes it's like the whole half of the
41:51car is like talking to me and wants to
41:54know the inside line and the you know
41:55and all that. Um Wall Street is the
41:58hottest topic of of the world right now
42:00and I happen just to be at the forefront
42:02of that and that's for me it's
42:03wonderful. I love every minute of the
42:05fame. I love the platform. for my you
42:07know for for people like us the more
42:09people the more eyeballs that are on us
42:11we we have a mission and that's that's
42:13incredibly exciting um to get the edge
42:16it takes a lot of work you need to know
42:18who you're listening to get in touch
42:20with the right people and I'm happy to
42:22tell people who I think the right people
42:23are not I'm not you know I know I look
42:26like Einstein I'm not that smart uh but
42:29I got the look um you know there there
42:32you can do your own homework as well
42:34because you know those who are smart are
42:36doing the homework, right? Um, and so
42:39sometimes it's just a matter of
42:40listening to a story that seems exciting
42:42like the space story, right? Like
42:44SpaceX, right? Uh, and then listening to
42:47a couple little things and then going
42:48out and doing your homework. The
42:50information is out there. That's kind of
42:51the amazing thing about first of all
42:53about AI and secondly about the internet
42:56and just the amazing scope of of
42:59information that's going around. All of
43:02this stuff is publicly public
43:04information. Like you can they just file
43:07SpaceX just filed their for their IPO
43:10the the the filing that they put out to
43:13go public is public. You can read
43:16everything about what's in the company,
43:19how much money they make, right? I mean,
43:21you know, that's information that's
43:22really key. And you may even find
43:25something inside, like you asked me
43:26about the components about something
43:28little inside of it that may be a
43:31little, you know, the the outlier,
43:33right? Don't always go with the big
43:34story because sometimes that's already
43:36the trains that train left the station.
43:38Look for the little secret thing inside
43:41that. Uh like what's the littlest
43:43component inside of an iPhone is
43:45actually it's a rare earth mineral and
43:47so you know and then well who controls
43:49rare earth minerals in the world? Well,
43:50China does. But they actually just made
43:52kind of a deal with Mr. Trump around it.
43:54I mean those kind of you you try to
43:56connect the dots. It's this is not a
43:59get-rich quick scheme. It's not for
44:01people who just want to, you know, uh,
44:03uh, uh, try and find out, you know, find
44:05the easy way out. That that's not the
44:07way to do this because the information
44:10highway is moving so fast that that
44:13train has left the station. The minute
44:14you hear about it, it's like we talk
44:16about buy the rumor, sell the news. You
44:18know, the minute you've seen a stock,
44:20you know, go from two to 483.
44:23You know, I I I was tracking those meme
44:26stocks when they when they came out and
44:28uh majority of the purchases by the
44:31retail community back then was at the
44:33highest price of all. That was where you
44:35saw the volume and all those people had
44:37some idea that it was going higher,
44:40right? And most of those people were
44:41left holding the bag. There are we we
44:44talk to traders all the time who are
44:46still who still own GameStop at $483.
44:48That was the high or or who own Rivian
44:51at $92, right? because that was one of
44:53the meme stocks or Blackberry or all
44:55those things because you know they just
44:57they they it's FOMO fear of missing out
45:00hype. This is one of my lines but it's
45:03it's a good line is FOMO, hype and hope
45:06are not sustainable trading strategies,
45:09right? You want you just do the homework
45:12or not. And if you if you don't want to,
45:14but you want to participate in in the
45:16game, that's why I always say the S&P
45:18500 is sort of, and this is not a
45:19recommendation, it's a great place to go
45:22because you can put your money in there
45:23at 18, 250 bucks, and at 60, you're
45:27going to have a $1.4 million. Peter, you
45:29said earlier in this podcast episode
45:31that nobody ever went broke taking a
45:33profit, and you were just talking about
45:35then where it's like people, they wanted
45:37more and more and more. They wanted to
45:38keep going. Have you seen greed Have you
45:41seen greed ruin a lot of people's lives?
45:44>> Absolutely. I've seen them go broke over
45:46it. Right now, if you go back to the
45:48first Wall Street movie, Michael
45:50Douglas, Charlie Sheen, it was the story
45:52of Ivan Boowki, uh, who was somebody I
45:55was offered a job with the day before he
45:57was indicted. He believed that he was
45:59hearing voices. He told everyone he was
46:01hearing voices about potential
46:02takeovers. And uh he he worked in the
46:05firm right next to the the company I
46:07worked when I got down to Wall Street.
46:09Uh it was called Somala was his company.
46:11And he claimed that he was in the middle
46:13of the night he would hear about
46:14takeovers and his mind and then we'd get
46:16to work in the morning and he would be
46:18buying millions of shares of of uh
46:20Beatrice or Tropicana or RJR Nabiscoco
46:23and then four days later they would
46:26announce a merger and everyone would go,
46:27"How did he know?" Right? Well, it
46:29turned out he had some guy up at Goldman
46:30Sachs who um who was giving him inside
46:34information. Uh but there's a famous
46:36line from that movie when he says he's
46:39giving a speech, Ivan Boowki, it was
46:41Michael Douglas and he said greed is for
46:43lack of a better word greed is good.
46:46Right? So you can look at greed two
46:48different ways. If you think of greed
46:50like um I bought the stock at two and uh
46:54everyone's telling me don't you know and
46:55it's trading at six uh everyone's saying
46:58don't sell it it's going to 50 but I
47:00sell it I've made a profit I'm walking
47:02away with four points on that thing
47:04that's being a little bit greedy right
47:06um uh
47:09that's where greed is good but if I look
47:11at greed as I bought it at two and it
47:14went to six and I uh I I want to get
47:17every penny out of it because I'm greedy
47:20and it goes to 50 and I never sell it
47:22because I want I my greed makes me want
47:25to get another dollar out of it and the
47:27next thing you know uh it's trading at
47:30two. Well, that's where greed didn't
47:31work. I'll give you a perfect example.
47:34Um uh it was the internet bubble. I was
47:37on the floor trading.
47:40Yahoo came out. It was one of the first
47:42uh internet companies. It came out at
47:43three. it I think it went to 600 and
47:47everybody on the floor was in it.
47:48Everybody bought it at three and and
47:50boom boom boom and then one day we came
47:52into work and it was trading back at
47:54three and the day before everybody was
47:56walking around. They had all were their
47:58port their P&L looked beautiful. They
48:00were all talking about going I'm going
48:01to Disney World. All my money, my kids
48:04are going to private school. It's all
48:05good. And the next day everybody walked
48:08in and they were broke because the stock
48:10had dropped to three. And there was one
48:11guy sitting in the corner on the floor.
48:13And I remember that I have a
48:14photographic memory. I remember it well.
48:16His name was Frank Murphy. He was
48:17sitting in the corner. He was a funny
48:19little man. And he had this big smile on
48:21his face. And I walked up to him and I
48:23and everyone on the floor was miserable.
48:26They had the day before they had their
48:28their their portfolio looked like a
48:30million dollars and now it was
48:31worthless. And I said, "Frankie, how
48:33come you look so happy everybody's so
48:35miserable?" He goes, "Pete, I've been
48:36here a long time." He goes, "I bought
48:38Yahoo at at three. I sold it at eight. I
48:41bought it at 50. I sold it at 60. I
48:43bought it at 100. I sold it at 180. By
48:47the time the stock went to 400 and back
48:50to three, I had made $20 million and I
48:52didn't care what happened to the stock.
48:54So that was where that line of nobody
48:56got broke taking a profit. It's a matter
48:59and also where greed plays into it that
49:02you know that people need to understand
49:05that this is it's only gambling if you
49:07don't know what you're doing. And you
49:09know it's like let it ride, let it ride.
49:11Well, you can let it ride to a point
49:13where, you know, I mean, I would rather
49:15be, you know, should a would a coulda is
49:17also not a trading strategy. If I buy
49:20something at five and it goes to 10,
49:22discipline and consistency are the key
49:25to a successful trader. Somebody who
49:28hits singles and doubles is going to be
49:30a successful day trader. And that's what
49:32we we I have a company with my partner
49:34David Green. It's called Wall Street
49:35Global Trading Academy. That's what we
49:37teach. You get in and you get out. You
49:39buy a 100 shares at 50, right? You put
49:43in a stop order. Stop order risk
49:44management is also another key to for a
49:46successful trader, right? So the stock
49:49market gives you this amazing ability
49:51that I can if I buy a 100 shares of a
49:53stock at 50, I can put an order what's
49:55called a stop order at 49 and a half
49:57that if it goes against me for whatever,
49:59you know, I may have bought it for all
50:01the right reasons, Mr. Trump puts out a
50:02tweet that we're going to war and the
50:04market, you know, goes down and I will
50:07lose whatever whatever I'll lose that 50
50:10cents, but I'm not going to lose $20.
50:13>> And the next thing we teach is that if
50:15it goes to 50 and a half, immediately
50:17take a profit, a partial profit, right?
50:20Move my stop order to break even. I just
50:22made a little money and I can't lose
50:23money. And so that kind of a mentality
50:26around trading, hitting singles and D.
50:28If you go for the home run, you may hit
50:30a couple of home runs, but you're you're
50:31you're for the most part, you're
50:33probably gonna lose money.
50:35>> Earlier, you'd mentioned uh Elon Musk,
50:37and he's about to have one of the
50:39biggest IPOs in history, the SpaceX,
50:41>> the biggest
50:42>> the biggest IPO in history,
50:45buy or bust.
50:47>> So, it's hard for me to recommend it or
50:49at all. I think I'd rather give you a uh
50:51an explanation of what's happening in
50:53it. um because it's uh I don't know and
50:57that's a legitimate answer. uh you know
51:00it could go it's they say it's going to
51:02open uh it's going to be issued right so
51:05uh when a when a company decides to go
51:07to uh to initial public offering they
51:10they pick a price where they say the
51:12value of the stock and $135 is
51:14apparently the price it's coming out at
51:16the valuation is 1.75 trillion now that
51:20is a function of the fact that he's Elon
51:23Musk and he wants it to be big and he's
51:25thrown all of his assets into the pot,
51:28right? He's even considered throwing
51:30Tesla into the pot. Uh surely people who
51:33suffered from his Twitter debacle are
51:36now going to get a payoff because
51:37they're in they're if they held their
51:40stock, they're going to make money
51:41because it's part of the SpaceX thing.
51:43So they're the the revenues are 20
51:46billion. Okay. The um they just got a $4
51:49billion contract I think day before
51:51yesterday with the US government for
51:53doing satellites for all of the army,
51:55right? And so it's actually going to the
51:58valuation is almost a hundred times
52:01earnings. Now if you go back uh I think
52:04Meta uh Facebook uh is trading at 11
52:08times earnings. Nvidia is trading at 18
52:10times earnings, right? A 100 times
52:13earnings to come out is it's a a little
52:15bit frothy at best like a really good
52:18cappuccino at Starbucks. It's way out
52:20there. Um, but something is to be said
52:24for the irrational enthusiasm around a a
52:27sector. You know,
52:30Elon Musk only had one competitor, which
52:32was Jeff Bezos's Blue Oyster Culture,
52:34whatever that stuff was called, and they
52:36just blew up, right? You saw that last
52:38week. The other the only other big space
52:40company uh just got decimated. Not only
52:43did it blow up the rocket, but it blew
52:45up the landing pad. And it takes a year
52:47and chains to do that. So if there if
52:49there was any competition there's no
52:51longer competition. So you have to look
52:53at all of these components right uh you
52:56know is it and also Mr. Musk has
53:00rewritten the rules of IPO um uh what do
53:05you call it unlock an unlock what does
53:07that mean so people are the insiders
53:10think about this that um the guy who
53:13painted the mural on Facebook's office
53:17uh who didn't they didn't have enough
53:19money to pay him and he got some stock
53:22uh early on in the beginning of of of
53:24Facebook is worth now $260 million right
53:28because he got shares on the inside,
53:29right? There are people who bought
53:31SpaceX stock five years ago when
53:33everyone thought it was crazy for
53:35pennies on the dollar and now they're
53:36going to become instant millionaires. So
53:39the people who get insider stock, people
53:41who are employees or who are early
53:43investors, right? They are there
53:46restrictions on when they can sell. You
53:48cannot just uh be an insider and get
53:50early allocation stock and the day of
53:52the IPOs you dump your stock. That's
53:55illegal. You can't do that, right?
53:57There's what's called the lockdown. They
54:00there are strict rules that the stock
54:01exchange has given you that there's a
54:03six-month lockdown, a nine-month
54:04lockdown of when certain people
54:06depending on when you got your stock and
54:08what kind of stock is it, is it
54:10preferred stock, limited stock, all that
54:11kind of stuff. Um Elon Musk has
54:15apparently rewritten the rules on the
54:17lockdown that you're that most people
54:19are not going to be able to sell their
54:21stock um until he's he's ready to let
54:25them sell the stock. then there's some
54:27stock that he would that people got that
54:29he's not going to let them sell it
54:31unless it's trading at a 30% premium to
54:33the IPO. So, you know, normally in an
54:35IPO, uh there's excitement around it. It
54:39opens, it it rallies. I mean, there
54:40there have been all kinds of stories
54:42around IPOs. If you look at Figma or
54:44Bullish, some of the biggest ones we've
54:46had this year, priced at 30, opened at
54:4890, went to 120. You know, there was
54:50some Chinese stock that went from 14 to
54:532,700 in one day. I mean there's a wild
54:56story and then right back down. Um you
54:59know any this stock could go anywhere.
55:02There's so many little components and
55:05stories within the uh Elon Musk story
55:07and in the SpaceX story. Uh it's almost
55:10impossible to get uh now uh exposure to
55:14SpaceX. Somehow there are ways of doing
55:15it with these special vehicles that
55:17they've made. You know um uh I it's
55:21going to come out at 135. I would bet it
55:23opens at a thousand. Uh just because
55:26there's such a limited supply.
55:29So many people want it. It is the flavor
55:31of the freaking moment. Everybody wants
55:34something. You know, there are people,
55:36if you listen on on on Instagram, people
55:39who say, "Wait for wait for the unlock.
55:41Wait for some of that stock to come in
55:43for sale. Let we don't know what's going
55:45to happen. It's trading at such a high
55:48level of excitement that uh maybe let it
55:50open. Watch it. This is my best
55:52recommendation without recommending
55:54anything is to let it open, watch what
55:57happens, see it. I would rather like
55:59that Frank Murphy story. If it's going
56:01to go higher, I would rather wait and
56:03you know, you don't want to catch a
56:04falling knife. That's how we always talk
56:06about you want to buy into the momentum.
56:08So, I would wait. Let it open. Let it
56:10Let's see what happens because this is
56:11unprecedented. What's happening is unpre
56:14the valuation's unprecedented. The
56:15numbers are unprecedented. Let's see
56:17what happens. It could go it could go to
56:202,000 and it could go to 50, right?
56:22That's the that's the problem. So, I
56:24would rather wait and see and then like
56:27reanalyze it. If it's going to go
56:29higher, I will have a chance to do it. I
56:31may not pay bottom dollar, but I will be
56:34able to buy it and it'll probably go
56:36higher, but I just need to know that I
56:38made the right decision.
56:39>> I love it. So, Peter, oh, you know, been
56:43for decades been the longest standing
56:46trader on the New York Stock Exchange
56:48for you h like how is it becoming a
56:52broker today? And compared to like when
56:54you first started, like, you know,
56:56everybody sees the movies Wolf Wall
56:58Street, Wall Street, you know, Margin
57:00Call, like the craze of what it is,
57:03especially in like the 80s and 90s of
57:04what the the floor looks like, right?
57:06What does it look like today? And what
57:08does that process look like if if you
57:10wanted to become a broker? Like what
57:11does it look like? Okay. The New York
57:12Stock Exchange look like today.
57:14>> In 1903, they issued about 1300 seats on
57:17the stock exchange which gave you the
57:18right to trade stock. Kind of like a
57:20taxi medallion. They never added them to
57:22it. They never subtracted. That was the
57:24number. And they they were a trading
57:27vehicle for many many years based on how
57:29the market was doing. Before the crash
57:32of 29, I think it was trading at
57:34$30,000. Then it went down to 8,000 and
57:37then it rallied up. When I got to Wall
57:38Street, it was trading at around
57:40$183,000 for a seat. You could not buy a
57:43seat with anything but your own money. I
57:46I could not borrow money from my parents
57:47to buy a seat. I I lease I've leased a
57:50seat. I've never owned a seat. I never
57:51had enough money. I had almost had my
57:53one in my grasp a couple times and
57:56people knew that it was every penny I
57:57had. I had one at 187,000, someone
58:00outbid me. I had one at 1.2 million and
58:02someone outbid me. Um, so I've never
58:05owned one. Um, back in the day you had
58:08to be sponsored by a brokerage firm. Uh,
58:10it was a huge crazy honor to get a seat
58:13on the stock exchange. When I did it, my
58:15parents came. I signed a book that was
58:17signed by by Carnegie by JP Morgan. Like
58:20the real JPont Morgan signed the book
58:23that I signed. It was like Santa Claus's
58:25book, right? It was this huge thing.
58:27They still are at the stock exchange. If
58:29you guys want to come down, I'll
58:30introduce you to Pete Dash. He'll he'll
58:32show you the book. When my son signed
58:34the book, it's a funny story. Um, George
58:38Lopez, the comedian, uh, had a show on
58:41A&E called very superstitious and he
58:44would he traveled around the country
58:46interviewing people who are very super
58:47I'm very superstitious. He found out
58:49about it and he came and we did an
58:51episode of the show. It's it's called it
58:53was it's the episode's called Money.
58:55It's on A&E. It's a fun episode. He
58:57spent the day with me at the stock
58:58exchange. It was the day my son was
59:00signing the book and uh he came up and
59:03uh Benny was signing the book and it was
59:06just it was just a funny thing and he
59:08was just going like this there no
59:09[snorts] Spanish people on this um you
59:11know in this book it was you know the
59:12book goes back to 1680 right and he goes
59:16I don't see a Lopez anywhere on this you
59:18know in this book they were like
59:19Carnegies and JP Morgans and John Paul
59:22Getty's you know all the people who were
59:24the early early people to have a seat
59:26Um,
59:28back then it took 13 to 15 years to to
59:31get to a point to to get a seat from
59:33when you started. There's no training
59:34for the job of a broker. Uh, you have to
59:37start as a squad, a runner, a teletypus
59:39is how I started, making 47 bucks a
59:42week, wearing a little blue jacket,
59:43running around, and then if you were
59:45trustworthy and somebody noticed you,
59:46you needed to be the exception to the
59:48rule. Someone would pick you up, give
59:50you a job as a clerk, and you would
59:51spend years and years before somebody
59:53gave you a seat. Uh, and as I said, it
59:56was a huge honor. Your parents showed
59:57up, you signed a book, you went out for
59:59a big dinner. It was a huge exclusive
1:00:02club, right? The boss of your company
1:00:04took you upstairs and bought you a dozen
1:00:07oysters, and you felt like you were
1:00:08special. You had a badge with a number,
1:00:10which I've had for
1:00:1337 years now. Uh, my number is 588. It's
1:00:16uh, it was a number that was just given
1:00:18to me. It turned out to be a very lucky
1:00:19number in in numerology. And in Chinese
1:00:22numerology, it means success and money.
1:00:24So, that's always been a good thing,
1:00:26except when the market's down 588
1:00:29points, and then I I'm on the front page
1:00:30of some newspaper and everyone's going,
1:00:32"It's not that lucky now."
1:00:33>> Um, and so up until a few years ago,
1:00:37there was a you could come down to Wall
1:00:39Street and get a job as a clerk and work
1:00:41your way up and the company the company
1:00:43whether it was Goldman Sachs or a small
1:00:45brokerage firm would hire you and
1:00:47sponsor you and you would become a
1:00:48broker. It's happening way less and less
1:00:51because the floor that used to have
1:00:537,000 plus people on it pre-technology,
1:00:57you needed that support staff to run the
1:00:59floor of the stock exchange. There were
1:01:00clerks, reporters, backup clerks, market
1:01:02makers, brokers, all that kind of stuff.
1:01:04We used to have a hospital at the stock
1:01:07exchange, a tailor shop, a barber shop,
1:01:09uh a restaurant. I mean, because it was
1:01:11a whole city. Technology came along like
1:01:14any industry and it kind of outsourced
1:01:16human beings. I can send out a thousand
1:01:18orders in 4 seconds on a machine now. I
1:01:21you don't need uh uh you know uh 1388
1:01:25brokers any longer. So a lot of people
1:01:27either retired or or or quit and had to
1:01:29go find work elsewhere. They weren't
1:01:31able to pivot. Uh I was I'm I'm a
1:01:34pivoter. I'm somebody who, you know, if
1:01:36I'm if I go up against the wall, I'll
1:01:38keep moving like Pac-Man. I'll find a
1:01:40way and an opportunity. You know, you
1:01:42always ask how people, you know, make
1:01:44money and stay is I I will I
1:01:48failure
1:01:49right for me is is great because it
1:01:52gives me an opportunity to jump over
1:01:54that that that threshold and go find
1:01:56something new. So, um unfortunately now
1:02:00the floor is a different place. There
1:02:01are uh probably 700 people, not 7,000
1:02:04people. There's a lot of technology. Uh
1:02:08very rarely do do new seat holders come
1:02:10up. We've brought out a couple of new
1:02:13people over the last couple of years at
1:02:15our company trade moss. Uh uh you know
1:02:18um 10 years ago when my son started
1:02:20working on the floor uh he took a couple
1:02:23years but he got a seat. Um
1:02:25unfortunately now it's not a job that
1:02:28really exists. They're they're not
1:02:30adding to the brokers. I believe we are
1:02:32more relevant than ever before because
1:02:35you know in this world of technology
1:02:37there's a couple things where I want a
1:02:39human being involved. I don't want to,
1:02:41you know, be on a plane to Europe and we
1:02:43hit turbulence and I go to the cockpit
1:02:45and look and there's nobody there except
1:02:46a bunch of robots. I don't want to get
1:02:48into a back of a driverless car, you
1:02:50know, and hit some traffic or some
1:02:52craziness and there's nobody driving it.
1:02:54And I don't want somebody running my
1:02:56money who's an either an AI or a bot.
1:02:59Those are the three places where I want
1:03:00a human being. Right? So even though
1:03:03technology has outsourced a lot of the
1:03:05brokers on the floor, we are more
1:03:07relevant than ever before. We have a big
1:03:09edge. The stock exchange has made sure
1:03:11that that those who have stayed have an
1:03:14opportunity in edge. I just did a little
1:03:16thing with all the seauite owners of all
1:03:19the brokerage firms in Asia two days
1:03:20ago. We explained to them about the the
1:03:24need and the advantage of having a human
1:03:26being at the point of execution of stock
1:03:28and they were like oh my god we didn't
1:03:29know that. So um unfortunately the
1:03:32transition's already happened that I
1:03:34don't think it's going to grow back but
1:03:36those who are still here who have
1:03:37reinvented themselves like me and my son
1:03:40and others are super relevant and and
1:03:42there to stay. But you know there last
1:03:44thing I'll say is though that's a floor
1:03:47broker. That doesn't mean you cannot be
1:03:48a trader or a broker upstairs on a desk.
1:03:51Those jobs are out there. They're there
1:03:53for the for the getting. There are
1:03:55hundreds and thousands of young people
1:03:58going to college now coming with degrees
1:04:00in finance who are going to be portfolio
1:04:02managers are going to be financial
1:04:04adviserss. I just did a thing with State
1:04:06Street. They said there is a massive
1:04:08under supply of financial adviserss in
1:04:10the United States and they are going to
1:04:12start heavily pumping that thing and
1:04:14they asked me to be the face in the
1:04:15funnel of telling that story to all the
1:04:18young people who are afraid that AI's
1:04:20outsourced them or there's no jobs in
1:04:21finance. There are tons of great jobs in
1:04:23finance. Unfortunately, the floor is not
1:04:26one of them now because it's it's sort
1:04:29of a just a little entity onto itself.
1:04:33We are viable. We're relevant, but it's
1:04:35not growing in that way. Uh I mean, it's
1:04:37growing for those who are there. It's
1:04:38not that open. But within the other
1:04:40community, there are brokers, there are
1:04:42traders, there's jobs out there
1:04:43available. So, everybody run, don't
1:04:46walk.
1:04:46>> I love it. Well, Peter, we like to end
1:04:48these podcasts off with two super quick
1:04:50questions. They're kind of rapid fire.
1:04:52I'll start and then Jack will end us off
1:04:55here. Peter, in one sentence, if me and
1:04:57you were to die tomorrow and you could
1:04:59leave one more message with the younger
1:05:00generation, what would that be?
1:05:07Um, okay. Be kind.
1:05:10Um,
1:05:13find gratitude.
1:05:16Don't burn bridges.
1:05:21Search for joy. Find something you love
1:05:23to do, get really good at it, and have a
1:05:25whole bunch of fun.
1:05:27>> Yeah, I love it.
1:05:28>> Great. [laughter]
1:05:29>> And Peter, with the uh the life and
1:05:31career that you've built, how do you
1:05:33want to be remembered?
1:05:38>> Um
1:05:43so I think that um I always get
1:05:45emotional about it. Um, I think I want
1:05:48to be remembered as somebody who um, you
1:05:51know, my parents had um, uh, Holocaust
1:05:55survivors, lost everyone in their
1:05:57family, came to America and found this
1:05:59wonderful life. And my father always
1:06:01said that, you know, it's it's not about
1:06:03the the he was a humanist. He was
1:06:05somebody who said that a handshake and
1:06:07the relationship and the touch from of
1:06:08two human beings was really the most
1:06:10important thing in the world and that
1:06:12all the cash and prizes and all that
1:06:13stuff's not that important. So if if I
1:06:15can leave any kind of a legacy, it's
1:06:17that if I've um
1:06:20uh affected any one person in a positive
1:06:24way to follow that path, which is find
1:06:27something you love to do, get really
1:06:29good at it and have a whole bunch of
1:06:30fun. If I've done that to one
1:06:32person and hopefully tens of thousands
1:06:34of people, then I've done my job at the
1:06:36end. Nobody gets out of here alive. So I
1:06:38just want somebody to go, you know what?
1:06:41I I was down on my luck and that guy
1:06:43inspired me and I'm a better man today
1:06:46because of it. And uh
1:06:49>> and I I I I I met him on your podcast
1:06:52and that's a cool thing.
1:06:53>> Amazing. [laughter]
1:06:54>> I love it.
1:06:55>> Well, Peter, this was an excellent
1:06:56conversation, my friend. Thank you for
1:06:58being here, my friend. Pleasure. It's
1:06:59always amazing to see you. For everybody
1:07:01watching right now, be sure to like and
1:07:02subscribe for amazing content, amazing
1:07:04guests coming every week to the School
1:07:05of Hard Knocks podcast. We're going to
1:07:07put the links down in the description to
1:07:09check out all of Peter Tuxman, the ENT
1:07:11of Wall Street's social media handles,
1:07:13as well as you have a trading academy
1:07:15where you're teaching a bunch of people
1:07:16how to trade.
1:07:16>> We are. It's called Wall Street Global
1:07:18Trading Academy. My partner David Green.
1:07:20We started on Wall Street together. We
1:07:22have thousands of students globally. Uh
1:07:24if you want to learn how to trade and
1:07:26you want to trade and you want to get
1:07:27paid to trade, uh check us out. It's in
1:07:30link is in my my bio. We we we inspire,
1:07:34motivate anybody to come on. The
1:07:36accessibility and the funding to learn
1:07:38how to trade the stock market is out
1:07:39there and we're the ones to do it. I
1:07:40love it. And lastly, we're going to put
1:07:41a link down in the description to access
1:07:43the number one entrepreneur community in
1:07:45the entire world, the School of Mentors,
1:07:46where every week we host live calls with
1:07:48the eight, nine, and 10 figureure
1:07:49entrepreneurs we interview on the School
1:07:51of Hard Knock. So, we can't wait to see
1:07:52you on the inside. With that being said,
1:07:54we'll see you in the next

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