YouTube Deep Summary

[00:11] >> Stock is down. It must be something bad. That's all everyone thinks during earnings season. It's like one big echo chamber. It's astonishing to watch, but more often it's totally backward. If a stock is [00:22] down, you might be better off [00:24] assuming it's a buying [00:24] opportunity. I know that sounds like a really ridiculous orthodoxy, but it sure makes sense when I see, like on my screen, the banks and what's going on. Take Goldman Sachs, a company I worked at, know very well. One reason for the Chapel Trust. Whenever I get with Goldman alums and I do or current members, I do that too. [00:41] Among the first things that come [00:43] up after you talk friends and [00:44] family is how cheap the stock [00:46] is. Remember, lots of people use really sophisticated metrics involving return on tangible equity and the efficiency ratio to measure banks versus banks. I never paid, I don't pay that much mind. I am at heart a price to earnings. Multiple man. I [00:57] spent about two dozen pages in [00:58] the soon to be released How to [01:00] Make money in Any market on how [01:02] brilliant the p e multiple is [01:03] when you're trying to compare [01:04] apples to apples. The craziest thing is that Goldman is a fabulous firm, trades at a big discount to the average stock in the S&P 500 because its earnings used to be so hypersonic. This used to be. This is something that CEO David Solomon has worked hard to change. And this quarter showed how the company has become much more of a well-oiled machine, where you're going to get a number that doesn't swing wildly, good, bad or indifferent. I think this is [01:26] the beginning of when the stock [01:27] gets reevaluated upward, and the [01:29] multiple has a giant upward [01:31] revision, and that's going to [01:31] propel the stock much higher. Rocket ship. >> House of pleasure. >> So today when I saw the stock down at one point this morning after Goldman reported a blowout quarter, a truly blowout quarter, I went ballistic at our investing club morning meeting show and said, enough already. When it's down, that doesn't make it bad. When I saw Goldman [01:48] down six, I said someone wanted [01:50] to buy 100 shares by 25. Now by 25. A little bit lower and then by 50. That's called pyramid style buying. Gradually getting more bigger as it goes down. Why [01:58] did I have to give that [02:00] instruction? Because when a stock starts to go lower, it will often keep going lower until all the people who don't know anything are done selling, and you get a terrific price from their ignorance. We saw that Goldman today as the stock eventually rebounded and finished the session up more than six bucks. This was their best trading quarter in history. And it's a great trading firm very strong wealth management beginning of a turn in M&A and IPOs. That's really all you can [02:22] ask for from Goldman. And it's the stuff that's going to make the stock a much higher multiple stock. And I like that. The number of times this kind of thing happens in earnings season is truly insane. People just don't have the time to investigate. So they presume and [02:36] very often they get it wrong. Here's what I want you to do. I can't promise that every decline is a mistake. While there are many mistakes made, plenty of stocks go down because they deserve it. But if you own a stock and you see it go down first, check the conference call transcript, then put it through a chat bot and ask if anything went wrong that you might have missed. I like ChatGPT and [02:56] perplexity to do that. The good ones will tell you what lines may have been a disappointment. Ask it to compare Goldman to the others in the industry. If it checks out the way I saw it, check out, then the answer is you need to do some buying on weakness. Why? Because the [03:09] weakness won't last for long. I like to say there's always a bull market somewhere just for