גלעד סלונים ויואב זליקוביץ - פרק #70 - הנוסחא של שרי למציאת מכונת כסף- האם קלי פרטרנס היא כזו?

Good afternoon, folks, just for a few hours you'll be listening to the podcast. We've been talking for two hours and we haven't heard anything. So let's start recording. That we have more power to podcast first in the new year. The answer is generally still with Israel tomorrow celebrating the new year for Black Saturday. If he still has the mental strength to hear about the investment, maybe it's good that the episode came out the day before tomorrow starts. But the good part will be here how you spent Christmas. It was perfectly fine. In the same dimension as the Spirit of the State that night. Not easy, but a long time. Who's stronger than me? There's nothing else. It's true. These days before you have your new idea today on Channel 2 I can't see it I just saw the test from the really really funny and easy. Well, we have a very interesting episode, so let's start with a short disclaimer, friends. All we're saying is that we're not advising investors to do this or that with a security. My powers and I have no interest in the departments we are talking about it is only for the purpose of studying and expanding knowledge and request. Treat the content in this way and not all the investment advice today is a good lesson we have today we are doing a lesson that we also learned prepared and clarified to you the formula of Sri asked us in the responses. And they asked us to give it to you because it was a little bit complicated so we said we'd actually do a whole chapter dedicated to her. And try to clarify it so please have you have also returned to us providing interacting broker and we remind you. This is the cheapest investment broker in Israel that as far as we know allows you to raise money outside of Israel as well. To exchange money for foreign currency to get interest on the loan you have to do it on a fixed basis. The purchase of shares and the conversion of shares is a very safe and secure business. We are very, very fond of it. You're welcome to open an account by clicking here. I really doubt we really like it so it's fun for us that you're making us a sponsor invite us in and I can give myself a sponsor who needs help and advice within these bills it's something we also do with us. It's true that the manager really loves the consultant and builds people files of documents of value according to the method we talk about and we have a link even below to whoever wants to contact him. There are many people who are now for various reasons and others who want their money not to stay in the country then. Interactive also Interactive Israel reports on the bans. So you have the links below where you can sign up for anyone who is interested in him or me. You want to give us a quote first. I'd like to think it's particularly relevant to what we're doing today and what we did with a guy named Jim Ron. He was someone well-known in the United States a few decades ago. I translate formal education into high school, university and all. Allowing you to promote yourself will help you survive but self-education will help you to really get established. What you're saying is you understand the meaning of this. Why do you think this is relevant today? It's not today. No. We're doing a self-study here based on the theory of an investor that we're going to really figure out how. How do you do that? I'm very concerned with this. I think I think it's characteristic of you too, except what else you can see. Thank you. You know if I talk about it in a few words first I'm very concerned with it I think really. Self-learning dictates your ability to take something and dig deep here and understand it that's what makes Godgreat it's like that. If you only take things that other people have taught you you will achieve things that other people have achieved if you want to achieve more you have to learn certain things yourself. The only place I can share it is with kids who are just hard for me to learn. Teach me something specific. I have an idea and I need to do it I just can't I can't understand I have a limitation And to understand this I have to unpack it, dig into it, ask questions and then when I understand the inner essence of it I really manage to understand otherwise I fail to understand so it's milk. But it's beyond that age it's beyond some syllabus taught in schools without teaching at a university in building business. Looking for a company that's a compound has no such course at any university I know of. What we're doing here is beyond formal education so now even what you're saying is this is what he meant but I think it's even more simple than that. Digging into a subject that interests you. It's not just for the money but to understand how things work I'll quote something here and it's not on account of my quotes to this article it's just in response to yours you have know who is Confucius. It's a fact that our hosts know is one of the rules of traditional Chinese culture and writing. A lot of things that the Chinese Empire was based on for many years, a religion called Confucianism, which he taught in a way that can be expanded upon a lot, has a book called the Essays of Luni. He brings up his main things that are really very very significant quotes and one of the things I quote from the head I'm sure is exactly his fault but he says which one is the smart one. The man learned a thing from a thing. I mean, who is this wise man? A person who does not learn that you teach one thing he learns it but he draws from it another conclusion and connects it to another thing he develops it this is true wisdom. Very interesting what Shirley calls it. She's English but you have no fear. It's actually her famous book that takes all kinds of classes from economics to psychology. Judges and connects them together and it's not to be afraid. I'm not going to lie. If he's lost one word, it's like you're collecting ideas from a school book that goes to a library. Charlie and Confucius will stand by Charlie's side. Okay, I'll give you two with the permission of one simple of the founder of Bert Kelly's. It's very interesting that I'm in the middle of her investigation and enthusiasm for her. The judge in my eyes is the great life he said. I'm going to be happy. So don't you ever get tired of the time-blade. Take this exact quote to look like I wrote it. I'm being exact. That sounds reasonable. But here. I'm sorry, I'm just going to fix this. Timebide has been a great help. That's the exact quote and it's very, very true in my eyes and just to illustrate this thing to you guys. You'll understand how short the time is. Think about it. How long has it been since 15 years ago 20 years ago where were you? You think after 20 years you realize that it's two blinks and it's over. It's moving so fast, the same thing will happen for the next 20 years. So it's important not to waste time on people who aren't good enough. And spend time only with people who are worth spending time with. And that's true in my opinion about the content we consume, about how many news we see and how many interesting books we read. And let's come to your request. Sure, I know. I'm reading now of Howard Marks's beloved. The most important thing is that he just points out something that in my eyes is huge and can be expanded upon in a very big discussion. He talks about the efficient market theory they talk about a lot. And he says, I agree. That's because investors work hard to evaluate every new piece of information. The price of an asset immediately reflects the consensus view of the significance of the information. I do not, however, believe that the consensus view is necessarily correct. What's he saying? He says, listen, he's just trying to explain to you the ears. The efficient market theory was developed at the University of Chicago in the 1960s when he was a student there. I mean, he'd give it to her in his student years. He says, it's true that every new information that exists is processed by the market and reflects what the market thinks about it. If you're now publishing certain data on inflation or have estimates for certain data, All prices weigh what the market thinks and expresses. But he said, but what everyone thinks about it is not necessarily true. And it's something that really makes me realize the opportunity to make Alpha Chapter 100,000. You sent me this for Christmas too. Nice, yeah, it's important. By the way, maybe a few words before we start on the formula. First of all, just a little bit of concern about what's happening in the markets, who doesn't watch at Christmas. Suddenly, we're talking about the big government in the United States. But suddenly last week in China they announced they were starting to take a little bit of all kinds of restrictions there, And suddenly the stock market is there, you do what I tell you, Because you see why it's so important to me to use even the most imperial tools, Identify good investments and good prices. I basically love the Chinese market so much, And we can have a full discussion about it too. You don't like parties like this, but in general, Our formula, of cheap and quality management, For a long time, there were companies that competed in the United States that were Chinese. But we trade at low prices, And I was always hesitating to let you in, not to let you in, I finally bought a few of these in the basket. And they just in a few days flew by tens of percent, Almost all the departments are connected to China, But even though it's after years that they're, I also saw the grandmother, we can discuss this separately, That's not the point of the article, just that people need to connect them to current events. The subject, though we have already spoken on the subject of today, I want to maybe before... Before that, I just asked you from the European Commission's presentation, This is for the compounders, For the companies that have made the most progress in the last 25 years, And between... Under this, do you want us to see it? Yeah, I'll explain in the meantime what it is. This company that they're running, we're investing in, And this is connected first of all to the philosophical discussion, And for the sake of our private mission today, It's where it's best to find a girlfriend who'll come up from the fridge, Say, where, first of all, how, And the best place to find a company that grows ten or a hundred times its current value. So for once, say, it's better to start small, who don't have too many track records, But they have a very long run. And the next year, say, "I'd better go", And I'm not saying there's a right and wrong answer, But I'm more inclined here today, To find companies that already had 100 baggers, And in the process find a friend who can make 100 more baggers. Or even a girl who's already made 10 baggers, And can do it again and again and again. Because you see, this is a sort of philosophical discussion, And what we're saying here, It's from an annual report from a company that's had 100 baggers, One of the companies that made the highest annual returns in the last 25 years, A French company called Eurofins, Which is a partly manufactured laboratory for pharmaceutical companies, Company with management reporting, They both have very dominant control over a controversial change, But from their recent rejection, They published the companies that generated the highest annual income from coffee in the world, In the 25 years that will end in 2022. And they showed that these companies include Monster Beverage, We already talked about it in one of the episodes, Apel, who is known to us all, The food, the Eurofins itself, That we now present from her, NVR, this is Medellin, Built in the United States, ODFL, these two companies hold, Tractor Supply, ResMed, that I don't know, Copoi and O'Reilly, The ones with the highest annual returns, They all made over 20% a year on average, for 25 years, And those numbers of 100 Bagger or close to that, And I'm presenting it here so that people will understand the... First of all, there are companies that offer exceptional numbers. And today we'll try to learn, Identify some formula I learned from a preacher of Sheri's, I'm not here to mess up, He agreed to come to our podcast, He'll be on the podcast later, And fix every mistake we made in his presentation of the formula, But we wanted to bring you his formula today. Identify these friendships in advance, How can I find a company that can get numbers like that even in the future. So that's the topic of today's episode, I'll put this list at the end of the chapter. Glade, notes, insights, what's the start of the list? First of all, a very respectable list, let's be specific. Guys, when we talk about compound, We want to find a company, like we saw here, That can generate a very large savings on the investment on an ongoing basis. You know, by the way, I'll give you a little tip related to the matter. You know, there's all the private equity, And private equity, they're actually measured by the IRR, And there's some interesting practice that they do, People who don't know so well, that are worth treating, And it's relevant to the subject, which is why I'm presenting it. Private equity, how does it work? You want to invest in private equity, you make a commitment, Say, of half a million dollars, You promise to invest half a million dollars when they call for money? And they call for money when they have deals. Now, usually, they're gonna raise the money, Then in another year, two years, we make the investments themselves and the purchases, And then after a few years, sell and give you back the money, It could take up to ten years, overall, Cycle. But recently, I came across this thing called, They sign with you on the commitment, They don't pull dollars. You mean, what, two, three years, they didn't make a deal? And then it turns out they do make a deal, But they just take her in the meantime loan from the bank, And keep the money with you. And why are they doing this? Because when they consider the cost of their investment, They only count the time they spent the money. But why is it a little cheating? Because it lifts the population up, to about 30 percent, But you should have kept the money available. You couldn't invest it somewhere else that made a higher bid, You should try it at a 5% discount, no risk. So in your personal capacity as an investor, You've done less than the newspapers advertise. And that's their way of making a great track-record, She saw them coming to sell and said, Listen, we're doing a 20 percent, 25 percent, 30 percent increase, and we're going to be doing a 20 percent increase. But the investor doesn't take into account how long his money actually works. And that's something you should remember, Because when we invest in a stock that makes us a 25% gain over 25 years, Like the things here, It's called a powerful machine for increasing wealth, More banks that take your money and return it, Not to mention the tax incident that's on the way. By the way, if you make 25 percent for 25 years, You're not 100 Bagger, you're 264 Bagger, Just this math. You make 20 percent a year for 25 years, you're almost at 100 Bagger. So that's enough to make 20 percent a year. Let's understand the number, let's understand the number. If you invested $100,000 in a company like that, What did you say, 225? Depends on what models you used there. If you've been doing 20 percent for 25 years, $100,000, almost doubled themselves by 100. Wait, you said Ph... No, I used 25% at first for 25 years. Is that what you want? 25 and 25, no problem, you got it. So $100,000 becomes 265, That turns into 26 million dollars. 22 million dollars, I don't know what. - I got 26. 26 million dollars, notice what this does, What is it called to create wealth. Compound, 25 percent and 25 years, we... By the way, if you want to know how I calculated this, there's a mathematical formula, But there is... Leave, leave, wait, the financial account, The future value, let's focus, I don't put too much stock in it. So today, we'll try to discuss the question, How can I identify a compound using Sheri's formula, And we'll use it on an interesting company, We're asking ourselves now, Can she be a compounder, of course without recommending, We still don't have it, but we're hesitating, Yes, and study her, And about the girl we talked about and mentioned before, Kelly Partners Group, KPG, sold in Australia, The head of the head of the head, A market value of 300 million Australian dollars, Company released in 2017, And I will tell you briefly her story, I'm not gonna be too close to her right now, But then we'll use her data to figure out Sheri's formula. So what's the story with Kelly Partners? She says she has a very, very dominant boss named Burt Kelly, I brought his quote earlier, a 49-year-old guy, A guy who is exceptional, I don't know if for good or not, he's very very dominant, They carry some links to podcasts that were with him, And he's very interesting, he talks about the company. He has a nice story. When he was young, his dad had a business. If he had an accountant who had him, Because of that he lost a lot of money, He had a difficult childhood because of this financially, And then he becomes a reckoner himself, Started working at Price Weatherhood Scooper, For those who don't know, PwC, that's what they call it, one of the Big 4 companies. The biggest companies in the world, They're in charge of the stock market companies all over the world, He didn't survive there after two years of being locked up. He doesn't seem like the type to frame too much, Unless he controls them, he's a guy with a lot of opinions. Self-education, as they say. Yes, yes, yes. I know. At 22 he was unemployed, He decided to write a book. Who tells the success stories of the best people in Australia, Nobody wanted to let him write, he did it alone, He was a writer, a best-seller. He wrote six more books, Do all kinds of other things, And after a few years, in 2006, Because he knows the world of accounting very well, Notice he spoke very specifically to his colleagues, And it's something that's very exciting and connected to this company, He showed me that accountant, Like many freelancers, They can be excellent professionals, But they can't always be the best business owners. I mean, you can be a great professional, Who knows the profession, But business management requires more than just knowing the trade. You should know how to run a business. You should know, To do marketing, you need to know how to do work processes, You need to calculate, you need to thank, you need Skill. Running a business is one thing, There's exactly one second profession, and most professionals, they don't know how to do it better. As a result, they work too hard and don't earn enough and suffer, And there's also a very difficult problem with the way accountants provide customer service. There is, in fact, a present discussion that allows us to deepen it, Accountants are usually busy reporting on the past year. Now, guys, I know, I know there are great accountants, thousands of them, I know them, But most of the time, they're usually busy reporting on what happened last year. And then they usually come in the name of the customers, They need to be modeled, not planned, not done right, There's frustration a lot of times, because in the customer's experience, The accountant is his financial asset, his job is to think of the best way to run the business. But an accountant is usually busy reporting to the state how much money you owe them. It creates a lot of frustration and everything. So this deviation creates very, very large black holes in this area, And anyway, in general, taxes are something that's pretty certain, They never stopped, they never stopped demanding from us taxes, And as time goes on, there are more and more taxes that need to be paid, Taxes are becoming more complicated, issues are becoming more global, Tax laws all over the world are very, very complicated and complex. And it requires more creativity, more knowledge. Now, for many by the way, accountant, don't have the necessary knowledge, It's very hard to learn all the time, that someone passed the exams and started working, He's not necessarily an expert, and guys, I'm telling you here's a tip personally, A good accountant, who understands the metaria, and knows how to help you, And to use it, saves you a lot of money and taxes. And all this gives a platform, to create a lot of very valuable, incredible value, Both to the accountant, both to the client. And he came to his friend and said, "We'll do this, I'll run the business, and it worked for them, and it worked for them great. And then, now he's an educated guy, who reads everyone, and admires Beft, He said, I'll start offering the accountant partnerships like this, I'll come to see an existing accountant, I'll offer to buy 51% of his business, And I'll bring him all the information about how I run the business, I'll help him, according to what he says, double the profit, I mean, he may sell 50%, but he stays at the same income level, Less work, and give him a chance to retire in the future he wants to retire. A very very interesting model, doing this since 2006 in Australia, In 2017 the company produced itself, from a turnover of about a million Australian dollars in 2006, They're in the millions today, sorry, over 100 million, 110, 120, Already at this rate, the increase in the profit, the increase in the volume, Now he's started to spread to the US and UK, In his quest to make a global company, his quest, his ambitions are very, very, very great. Great, great, he wants to be a serial entrepreneur in this field, He wants to be the Constellation Software of the World Accounting, And note, one of the directors at Constellation is also a director at his, Very interesting, in short, very interesting company, that's worth learning, Michael Cappe, there may be a chance she's the 100th, or maybe not, we're still not standing, But we said, this is a good opportunity to learn Sheri's formula. You want to give us a little theory about what Sheri's formula says, Joel, Before you use the numbers? Sure, Gode, so what I'm saying is, it's actually, to identify, In the end, a company is created for the sake of production, The less money, the more it's going to cost her owner or shareholders. To find a company that knows how to grow in the long run, You actually need to identify two main components. You need to see a company that has the ability to grow, that is, When a friend's growing up, I mean, taking the money she gets on the boat, And invest it in other projects, buy more companies like KPM, Find another investment fund with the money she's making, in order to generate the interest rate. Why not make a good friend as long as she's with someone who shares all her profits with David, Or pay all the salaries to her landlord, You won't make it to that size. Actually, finding a company that creates the best value, It should be a company that has the ability to take the flow of cash and reinvest it, But Sheri's greatest strength is that it's not enough. We should do this and at the same time invest it at a high bid rate. We're always talking here in this episode about companies with a high bid rate, And we understand that, but it's a one-time thing. Shari's formula helps us find friendships that last longer. Do the two things so perfectly, that again, Invest a high percentage of the exams back into the business and do it at a high bid rate. Each of them alone is not enough. The winning combination is that you do both, say, a company that makes $100, She earns every year, we say just 100 shekels, If she can take all those hundred shekels and invest them again in a class of just say 100, So it increases its value every year by a hundred. If you reinvest everything in a lesson in the command of the epic, Or not invest at all, so she won't grow at all. So we're looking for the combination, a bid rate that's reinvested and high, Glad, that's a little long in words. Yeah, no, the letter is great, the letter is great, and let's make it a little more specific, And let's understand the matter, let's understand the matter behind this. We have, all those who studied economics, micro-economics, I remember the rise in marginal production. What do you mean? He says, listen, you start working, you earn X, But when you, as the business gets bigger and more complex, You need more machines, more people and more of this, The marginal profit for every additional unit you produce, is going down. It's getting harder, because it's getting harder. When the system becomes complex to maintain the same rates of profitability. Think, just think small. Say, you go and do work for someone, you don't have employees, you have nothing, You're just working, even if you're mowing his lawn, yes, you're a gardener, And you go and you do the work, And you bought some equipment and everything, Everything you earn goes to the quarterly line. In the morning almost everything, but if tomorrow you take eight gardens, And you'll manage them, and you'll send them, and you'll have to pay them, And you'll have to buy them equipment, and you'll have to do marketing, And you'll have to put every cent that you can handle, Your profit on each unit is decreasing, You might make more, because you'll have a bigger cycle, But your marginal profit will go and scare. The scary side of the production. Sheri said, If I want to identify a company that has the potential to grow substantially, To be a composer, to grow as we speak in a tremendous way, I want to see a company that can grow without reducing its profit margin. I want to see the capital reinvested, You stay at the same level or you don't decrease significantly. As long as a company can reinvest its profits, And to maintain the same level of order, So her ability to grow is amazing, And that's what I want to identify. And he developed a formula that helps us see it. But only one and great, and also with you, even without the second sacrifice, If the same genie is left alone, Okay, if the same genie is left alone, So he'll have a hard time growing up anyway. I mean, you also need the ability to take the profits And invest them in other people, while the investment is made, And keep the order rate high. Even the second effect alone is not enough, You need both. I always think of the example of the Beef of the Sea Candies, That was their most important investment, That actually invested, in my opinion, a few tens of millions of dollars, And to this day they've made profits of $2 billion from that one investment, But they're always shooting at each other, Because there is no way to make a new investment. Imagine that instead of sending a bag of candy every month, every year, to a friend, If you were to take this pace, And invest it at a rate of command of even one hundred percent, While similar products are available in other countries of this chocolate or in countries of responsibility, So the profit of the paternity petition is a little bigger. I mean, it's a combination of the two parameters that... Obviously, yes, it's obvious if you don't grow, then you don't grow. That's right. But it's true, we talked about the difference in the McDonald's chef restaurant. Chef's restaurant, a very very profitable business, But it's very hard to be a big skinner. Okay, I got it. Anyway, so what Sheri does, if you want me to explain it in numbers, And we'll take that from the example we brought today, It's basically a formula that uses three parameters, It is best to monitor them for as long a period as possible, We've only been using this place for seven years. Because the public company only in this period is better than ten, Even in ten years you can get a picture already. And we must remember again, that the past does not always tell the future, But a company you see that succeeds over a period of several years, to produce value, A friend who is worthy of examination, That doesn't mean it's worth investing, certainly not at any price, But this is a company that deserves to know what's going on there. Okay, so let's have a little fun, We'll try to strip her as much as possible. He's basically testing two main ingredients. One, the free-floating company and how it has grown over time. Two, the company's assets and how they grow over time, And what is the relationship between them. Now, for assets, he's not taking all the assets of the company, Because many times we have company assets that are assets that aren't really worth the money, They're not really tangible, Instantly, it can be monetary, Or any kind of website or stuff, And the wealth that is very hard to fight them with money, It's not that they're worthless, it's not that they're not valuable. But it's really hard to give them an exact value, So he neutralizes them, okay? Why don't we just do it? When they do that he doesn't neutralize debt, He actually compares friendships, With or without a minus, it doesn't matter where the growth in assets comes from, Even if the company is very profitable, He'll look at it in the final video, But in the end, apples compare to apples, The last one, Whether you're financed by debt, I'm not going to do it by myself. It's interesting. G.B., I think if you talk closer to the microphone, You sound a little better. I will continue, This is the microphone. Okay, interesting is the point that he doesn't take into account the debt. That could actually see us as a company that's self-sufficient, right? But it's a trick he does separately, yes. Okay, please note, That's an important point that he's making here. Which in fact could be a company that's financing its growth through debt, The same growth, And you must note that this debt is not too dangerous, In terms of her level of benefit. I mean, there could be a compounder who manages to do that, But to do that she's very self-sufficient, And that she might bring her to trouble, You should pay attention to that point. So what's he taking? First of all, he's got some data. One, he sees the free invitations flowing, And whoever sees the message we share, And by the way, I don't know if you noticed, You can also upload videos on Spotify. We started uploading videos of this podcast to Spotify as well. For people who listen, pay attention, and in a way... I see myself every day in the mirror, that's enough for me, But whoever wants it, he might not know. So we're sharing right now, And we see the data from the financial reports of K. F. G. I'm with the Partners Group. As we pulled them out, their financial reports, We need a little freedom in... But we can use the Wicca. But we worked with the financial statements themselves, What are the company's free-time transactions? From 2017 to 2024. We see that in 2017 we had six million Australian dollars, By 2024 it will have grown to 22. The money is in my pocket, the money is in my pocket. $96 million in cash. Egypt from 2017 to 2024. In addition, we're checking how many increases in engagement per year, From the beginning to this day. That is, as of 2017 there have been six, Today he's 22, and we have a revenue of 16 million dollars. These are the first data we're throwing, the difference. The next thing we do, it's try to figure out the growth in assets. Growing assets, again, as we said, Takes into account short-term assets, In the year 24. The assets of Goodwill and other businesses. Not all the assets. By the way, in their case, we also brought in intangibles, Because this is about, check our reports, For my clients they paid for them to the partners they bought from, So it's a real and intangible asset, and we chose to put it here. So we have accumulated 95 million dollars. And he's not going to make any short-term commitments. It doesn't neutralize long-term commitment, only short-term. Here's just a thought, who wants to understand, What they use in the short term, is what's called in English Networking Capital, It's the stock, I don't know, it's already paid, like, the stock's money is back, Therefore we neutralize the short-term commitment, But we're not committing to long-term commitments, so we're looking at another season. I mean, let's be specific and understand this point. We have on the balance sheet, what we call, short-term assets and short-term liabilities. Short-term assets, it could be bills that our customers are paying us and still not paying us. Short-term liabilities, it could be a loan we took from the bank while we worked with the money, Because we have two months before we get the money from this bank, He's neutralizing it, because it's not really a created asset, it's really just something temporary. But not that, if we took a loan to buy property over 20 years, So he doesn't care, he doesn't care about things, but he does care about the property. This is a very, very important point to make. And we're doing the same thing on the 2017 reports. I mean, we see that on the 24th, we had assets, according to the third formula, of $86 million. While in the second stage, in 2017, we had only 22. I mean, the assets increased by $57 million. So what do we see here? Over the past seven years, the company has generated a total of $96 million. In addition, it generated free streams and bandwidth of $16 million more per year since its inception. And in addition, she has set her assets at this time at $57 million. And now, we are coming... In this formula, we're not talking about dividends and dividends, it's also something that needs to be looked at separately. It popped up in the data, but it's ultimately, we're currently completing it. Explain to us why, what do you mean? Because we don't see what they did, we haven't combined the data yet, We haven't checked how much the company is spending on the records. But if it doesn't seem like she's investing, as all of us seem to be, it doesn't seem like she's spending a lot, So I'll try to figure out where the money went. Maybe wait for the dividend, maybe make a buyback, so yeah, it's worth me taking a look at it at the end. If there is a financial industry. But what we're looking for right now is investments, How much of the resources the company can and can invest itself at a high rate of output. Not in financial industries, which can create value, but right now we're putting them out there. They don't seem to even count. I mean, she's just giving us the machine. Can the machine produce for us more and more and more the same output again and again and again and again? I'm not going to. Then you need to check other things, it doesn't stand on its own. It's just a test of the engine, it's like you think that when you're going to buy a car, You take him to the machine, she'll check the engine. Maybe later you can check the chassis and check the brakes. But first, you want to know if the engine works well. And finally you'll stick to the price, even though it's a really good ride, I can tell with how much I need. Okay, now let's understand the formula. He's fixed two parameters. One, that he wants to reinvest. What we said, how much the company manages to record on the money it reinvests, Only on the tape. So what's he taking us here for? Or in English it's called incremental. Incremental, yeah. I'm adding to that time. Additionally, my, my. From me, yes. So he says, growth in the economy is partially due to growth in assets. Which means, in our case, $16 million is a growth in the stock market, Part of the increase in assets, I mean, the extra assets, the 57 million dollars, Stop us with 16 million bucks. Which means we managed to get a return on our capital of 28%. You're a good man, you're a good man. For 10 years, for 7 years. Over 7 years, that is, over a period of 7 years, We managed to reinvest. In the course of the re-employment. We were able to buy property for $57 million, Let's get another 16 million dollars. We've got another 28%. We want to know how much of the money we invested. It's not all the $96 million we invested, Just a part of it. By the way, there will be friendships, by the way, because of the private friendships, that they reinvest more than they stopped, They may have stopped loans or from other places, It could be more than 100. But you can also have a girlfriend, To understand why the second part is so important, give it a moment, So if a company reaches a screaming rate, like I said, 28 percent, But achieving that at a reinvestment rate of one or two percent of her profits, I mean, if the reinvestment is almost $1.50, So it won't move in the next few hours, right? The second part is so much more important, Because if a company can achieve a high screaming rate, But it doesn't actually do that, part of my profits, You didn't do anything with it, there are no compounds here. So please, part two. It's very important. So basically we say we divide the growth in assets into partial manufacturing mixtures. We take the $57 million assets that have been created, And we'll split them for the $96 million the company has created over the years. I mean, out of the $96 million that was created, The 57 went to buy more assets. And that means the company invested about 60% of its Hunt. And then we come to the final result. That the first is double the second. Exactly, that's 60 percent of the 28. Over the past seven years we've produced 28 percent of the screams, But that's only about 60% of the time we've been together. It says that on the re-invested zambzo, Which by the way, in cash, is $59 million, 57 divided by 96, sorry, that's 57 million dollars, We made a 28% bid on him. That means we've made an annual order of 16.7 percent. The capital we reinvest. Now, it's important to say that this is a restraining order, This is called value creation. How much value the company has created. What's this about value creation? Now, this number is a number you see, as we said, Back then, he didn't say anything about the future. He just says, every number over 15 is here, He usually starts me, as well as Sheri, He's the one who gets the credit. And for you, Gil, credit is due. I think you're the man who understood this formula in the shortest time. I've been sitting on this formula for years, And every time I understand again. I have a good teacher, I have a good teacher. Sheri, you know, anyway, this trip is not easy. Sheri, I wasn't there with you at the time, And let you beat his head like I beat yours? Yeah, he explained it to me, but he didn't, It really, you need a lot of doors to house alone, And also to understand the logic, Gil, As I think whoever doesn't understand it the first time is fine, I have to try to understand that logic says not enough to understand, Like I told you before we went up, Not enough to understand what a company's investment ratio is. It's important to understand how much it is, how much she does it over and over again. And there's a company that also manages to reinvest, And to do it at a high level, And that tells us that once again, there is a candidate for compound founder, I don't like it here that the numbers are only for seven years, it's too short, The result is good, above that the 10th is excellent, And that will ultimately also be reflected in the price of prevention, I think that this prevention also makes even higher value. Yeah, the prevention is about eight times the production. Eight percent of the production. I could say she's a little expensive today, but not terrible, Because there is also, if really the company continues to survive at this rate, So we can buy the price a little higher and settle. It was a great idea that I couldn't send to all the listeners, Because it's actually the paywall that's subscribed to Various Investments Insights, I've done it a few times, it costs about 300 bucks a year, But here's some ideas with three leading investors, And one of the investors spoke there this week, I'll link his name to sources, He talked about this amazing friendship, Even my song says about it, to make a trip and give for the entrance fee, It's just mathematically, not correct, because for 100 Bagger, Even if you ask a high price, in the end with the company you will be able to be okay. The question is if it's really 100 Bagger, here's also the discussion, If you want to talk for a moment, if we've started this discussion, The list of companies that had 100 Baggers, and some companies a little bigger, Unlike a very small company, which looks like a squirrel, But it's still unproven as far as I'm concerned, I'm sure the company is just now taking this playbook to another country, The idea is wonderful, Sheri will tell you, And this future also spoke to me once about this company, stay away. א' כי this company depends very much on man, As long as he's competent, You can argue how much it depends on the same person, But he is a very, very eccentric man. He's a fanatic, but he's a fanatic at the level, And it can sometimes be amazing, It could also be a problem, And speaking of which, I'm personal, And you said it again, And now we're gonna talk about this a little bit, For you, this is a company where the chances of losing are relatively low. But there's also a business model that's very interesting, But he hasn't proven it yet outside of Australia, No company in this size or any other has done this in a long time. So there's a potential rabbi here, The numbers look good, But still it's more of a story for me right now, A friend than I am, Okay, let's do more homework, I don't want to say no or say yes, But not enough to see a good number straight buy, This is of course my first step. I'm very much in agreement with you, Which gives us one positive indication from a very complete set, And we must take into account the reality itself. Now I'm connecting to what you're saying, I think, first, by the way, just, He says there's a company in Germany that does it in a similar model. And it works in large volumes, But I agree with you, I think there's a lot more question marks. One, do it with 100 partners, It's not like doing it with 5,000 partners, What I'm gonna do is do it at 100, I mean, with all due respect, 100 partners is one size, Skill is different things, It's a different level of management, It's a different kind of thing. Can you still keep the same production value, You're doing to the partners too much, Maybe yes, maybe not, It's a risk, it's a risk. The owner's name, It's both an opportunity and a liability for me, I mean, if anyone can do it, it's him. You should be like, I'm gonna have to make it work. He's also relatively young, Unlike the one I brought in the beginning, She was already 100 Bagger, And the man in control there is already approaching 70, He's a guy who's not even 40 yet. No, no, 49. 49, but he's relatively young. Yeah, I think he's been doing this for 21 years. The subject is... Wait, second minute, I see you want to rule out my thesis. I'll tell you, What is the source of my enthusiasm? My passion, It's more significant in terms of the downside. I mean, I always look at a combination, What's the upside and what's the downside. If he succeeds, The upside is very clear to all of us. If he manages to continue growing in Australia, Even to penetrate the American market, I'm also running it in a big bag, It's a monster. A monster like that, The numbers in it could be psychic, Like we talked about before. That's the upside. But I always think, So what's my downside? Because you can sit here and open up to the risks that could be. And my downside, I look at it as I buy today's business, That it's a simple business, Easy to understand, A lot of risks. It's a business that provides services, In a field that is very, very sticky. People don't change their bills every day. If you're happy with your accounting, You stay with him for a hundred years. He raised you in a reasonable manner, Your trade has been going on for years. If he cares, If he gives you value, If he gives you a good value, You'll be happy to pay him, too. He'll also bring more customers, and the plant organically. And you get 50 percent in this business, that is very very solid, Very well, And you pay for it double, of EV to free cash flow, About 20, 17, 18 years old. Not too expensive, I mean, not cheap, It's not a suggestion. But he didn't go, Don't look at me. It didn't work out. So you have a business that's profitable. Now it's clear that if this doesn't work, So it's going to take a lot of time, And the movement is much lower, So you also have multiple contractions, And he can also burn a lot of money trying. He can in all his experience, to develop infrastructure in the United States, You're a very big man, So even burning a lot of money on it, That you spend and will not go, And all his servants, Every year, I'm trying to grow up. That in the end, He can make and burn the money, So it's not that there are no risks, But in terms of the business plan, It's hard for me to see here, You know, something hurts terribly, Although, again, In terms of the manager's fee, The things I said, The reductions are multiplied, And if he starts burning money, And people will not believe in him, The administration will be dissolved, And the investment can go down, Just to explain what I'm saying, I mean, it's something that can happen. I'll tell you something, To tell us, To get the power and the configuration out, Company whose business model, Based on the purchase of additional companies, and economic model, I'm not a person. I don't have a problem with it. I know that I will, We didn't check what prices he was buying, We don't have that information, But it's a very, very dangerous business model. Because most of the purchases that are made in the world, For the time being, They're not good purchases. Yeah, but that's not exactly the model here. That's right, that's right. I understand you, But that's not the model, He doesn't buy. Why did you buy it? Purchase fell on lack of synergy, The people's organization, The human desire here, His model is here, That's what I like, Because he makes a model of 50% suspects, The man stays and runs his business as he is. He doesn't make it up, He's not here. He's just helping him with specific things he's taking away from him. Think, you will be, Somebody comes to you tomorrow and says, Listen, I'm going to, I'm doing you a marketing, I bring you clients, I'm making you work for me, I'm doing you an administration, I'm doing all this for you, I'll leave you your name, Your business, Everything is yours, All you do is manage investments. And you get today because of that shit you got, Let's say, A big part of your business. And think, as long as he's really able to let you do it and it will work. And he also helps bring in clients, If I'm not wrong. Obviously, obviously, I said, first, He does all the marketing for you first, He does all the marketing for you, The whole operation, All the digital, You don't have to worry about tomorrow, You have to deal with and choose investments every day, And you're making the same amount of money. This girl has been on my radar a long time, Accountant needs this and accountant needs this, The question is if he won't fall into the gloom, I wonder if he doesn't, Once the market has worked it into this, It can break down over time. I think, I'm being honest, I think it's a good company to start, Put her in a bag, I can recommend again, of course, But she's definitely nominated, A company that could definitely be nominated, I'm not posting, Just tell you a little bit, Inrei will tell us to come here, But definitely, And we brought her for you too, And we brought her for the main event, That people will understand the formula, And I'll try to identify it, At least the basis of a company, That could be, I'll tell you too, One of the things he talks about, That interest of my religion is connected to this thing, He says part of their agreement, The partner pays, Nineteen percent of the cycle, By reinvesting in business, It's like part of the model, As in the formula, Yes, yes, I know. He says that now the business is growing, Well, that's interesting. We learned a lot. I'm going to be fine. Thank you to our friends, Amazing man, that guy. You want to give us a tip to finish? Yeah, something small, If you'll let me be, Jewish spiritual matter, You know I'm not anymore, I can't say anymore, I am a great religious man. But I come from a religious background, And in the last few years, Of course since I'm with the sweet kids, I took on some custom, I don't always stand by him, And maybe in honor of the New Year, Anyone who wants to can also try it, Of course not here, We're not alone. There is no religious convention here. Even though I was in the party on Christmas, In any case, I'm sleeping in the night, But even without a religious covenant, What do you want? It's fun, Not just a cold, It's every one, They want to return you in repentance, It's not frozen, Right, All right, I'll see you later. In any case they don't, But they're sweet, It's not the company, Really they are, What's that supposed to mean, Or at least not talking, With no one to stand up, What I am has no connection to the liver, And this is, I'm on Friday night, It's actually time, It's family time, There's something to look forward to, I'm trying to finish, Close all the dealerships, And I'll take my little ones, To the girl on Friday at the synagogue, It's a relatively short prayer on Friday, Usually, It's a shared experience. That we have, We're waiting for her, Going on foot, Without agreeing, Without a car, Without a word of faith, Going for half an hour, Listen to some music, Each has his own formula, I'm doing it again, And I thought while I was in prayer at New Year's, Regardless of religious matters, It's something traditional, beautiful. Home with me, We eat together, I really enjoy it, I've been waiting for this all week. This is my little tip, Sharing something I do personally, Good thing, The best tip in the world, I recommend the book of Oren Marks, I opened with his quote, And this is my tip for today, guys, The ability not to write so clearly and accurately, And need complex issues, In a clean way, She's a work tool, Look, I'm going to be a little late. Be careful, It's really healthy for his sanity, Good book, I enjoy every word. It's one of the other books, Really in the top 10, And they're not complex enough, I agree with them, His book has influenced me a lot. Good for you, It's a lot of fun. I enjoyed it. See you next week. And guys, we have the weekend, I hope he brings us good news in this new year, And we'll have more successes, And return home to the kidnappers, And after the war, And for ever, And the plant, And we will live as a people, And as much as possible. I'm going to take her, Thank you, Good week, Have a good year. Bye, now.