Wall Street Unplugged
Episode: 793September 14, 2021

My biggest lesson from 9/11

It was an emotional weekend with the 20th anniversary of 9/11. I remember visiting Ground Zero just a couple of days after the attack…

Today, I deliver a heartfelt message about how dramatic events change our lives… [0:14]

On a much lighter note, it’s been an exciting first week of the football season. I share a couple of sleeper picks to pay attention to… and who I think will win it all. [14:20]

You might be surprised to hear that youth club sports weren’t hindered by COVID at all…. And this secular growth trend isn’t slowing down anytime soon. I share a few of my favorite ways to invest alongside it… and the one risk I see for these investments. [16:55]

Finally, I reveal the biggest mistake investors make… one that can blow up your entire portfolio. [26:44]

Inside this episode:
  • Remembering 9/11 [0:14]
  • Watch these teams this football season [14:20]
  • How to invest alongside youth sports clubs [16:55]
  • The biggest mistake you can make as an investor [26:44]
Transcript

Wall Street Unplugged | 793

My biggest lesson from 9/11

Announcer: Wall Street Unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary direct from Wall Street right to you on Main Street.

Frank Curzio: How’s it going out there? It’s September 14th, I’m Frank Curzio, host of Wall Street Unplugged Podcast, where I break down the headlines and tell you what’s really moving these markets. It was a pretty amazing and emotional weekend. A lot of that had to do with the 20th anniversary of September 11th. I can’t believe it’s been 20 years. 20 years. It doesn’t seem like it’s been that long, but trying to explain this to anyone who’s under 35 years old, it’s not easy. I mean, it’s almost like you can’t. It’s like someone who lived through Pearl Harbor trying to explain that event to someone my age, and we’re just not going to get it. You weren’t there. You didn’t see it, that emotion. Same about investment books. You could read as many as you want and all these risks, but until you go through it, until you’re so sure on something and you just get wrecked and go through that experience of the emotions, that’s when it sticks with you. That’s when the lesson is learned. That’s when everything, just those feelings come out.

Frank Curzio: And this was an event that made the world stop. It showed us how vulnerable we are in the US. We have this pride and we’re great, we’re awesome, we’re strong, best military, and holy cow. We also showed the power of unity as we all came together during one of the toughest times, if not the toughest time, most of our lives. But seeing so much of this again, on all the channels, there’s no politics. MSNBC did a great job. They did a live replay, the live replay of that day to show you the whole entire thing. The 60 Minute piece they did on the FDNY, the fire department during September 11th, one of the most powerful things I’ve ever saw. Holy cow, holy cow. I mean, to the stories people told who were in the Twin Towers when the planes hit, and even to that Mets-Yankees game, how great was that? It was on September 11th, it was electric, the atmosphere, unity, players were in NYFD and NYPD caps.

Frank Curzio: Joe Tory and people from back then, and just showing the President’s pitch and that strike, and how big of a deal that was. It really was. It just brought back a lot of memories, both good and bad. My experience, I worked at Wall Street before September 11th and then a few years again after. I mean, I worked at The Street, but I was not working in New York City at that time. I was living in Queens still. But a lot of my friends did, and the stories they told me, some of them covered in white dust, they couldn’t get out of New York City until that night. Their phones weren’t working, so their families didn’t know if they were alive. One of my closest friends at the time, his brother-in-law, one of the top people at NYPD, one of the first to respond along with the fire commissioner, and Giuliani was there, and they’re waiting to see what to do after the second plane hit.

Frank Curzio: They’re like, okay, we need to speak to the building inspector’s engineers. So, they’re waiting for them to get there. They get there, they said, “There’s no way those buildings are coming down.” So, his brother-in-law sent in around 20 police officers into the burning towers. Every one of them died. So, these are people that he knew closely, at least some of them, right, and knew their families. Think about that for a minute. You forget a lot of this stuff in those stories. And again, it’s not a knock on the building inspectors at all. You’re looking at, there was no high rise steel building that ever collapsed from a fire in history. And then, as they saw the floors coming down and they’re getting reports as those guys climb those floors, it was too late. I mean, not too late, they still got a lot of people out and said, “Hey, you know what? This structure, it’s probably going to collapse.”

Frank Curzio: It said it on 60 Minutes, when they got that message to them and then boom, the first one collapsed, the first tower. But you’re looking at this where the planes, they hit the 60th and the 80th floor. So, the building inspectors didn’t know, the police, fire department didn’t know. I mean, the 60th and 80th floor, I don’t know if you realize how big Twin Towers were, you could be across the street and you could look up and not see the top. I mean, you’d have to have your neck as far back as you possibly can, you can’t even, that’s how big these buildings are. So you’re like, “Okay, you’re good. You can go in. Let’s get people out under the 50 floors, and then try to get everyone out or whatever.”

Frank Curzio: A lot of cops died that day. A lot of firemen died that day. But he saw his brother-in-law about two months later, totally different person, quiet, kind of just staring at things. Never smiled… I think he saw him another time after, he never smiled. A lot of people… How do you come back from that? He’ll be fucked up for life. You’re trying to do your job, trying to save people. Now, this happened on Tuesday, so on Thursday morning, I wanted to get down there. I wanted to see for myself. I’ve lived in New York my whole entire life. And I was just taking M-train from Queens, New York, where I lived, to see if I can get down there, but that train goes straight down to Wall Street, one train. If you go to Midtown, then you’ve got to take another train to go anyplace, this train just drops you off… you just go to Wall Street. But also, one of the stops is the World Trade Center.

Frank Curzio: And most of the York City was on lockdown. Not a lot of people out, in or out of the downtown area unless you were helping and had the right proper identification and badges. It was blocked probably up to Midtown. And you had to be law enforcement, fire department, helping bring in food. I said let me try, let me get on, this train goes right downtown to the World Trade Center. I was with my girlfriend at the time. So, everyone on that train were workers, cops, firemen. A lot of them were dressed down. I’m thinking, “Yeah, if they ask me to get off, I’ll get off if they ask us to get off.” Everyone had blank stares, and just it was crazy. Nobody knew what to do. And again, this is still in rescue mode here, right, because people were still trapped. They’re trying to rescue them. I was surprised nobody questioned us. But you know, we kind of looked like we belonged. And next thing I know, the train just kept going. We got off at the World Trade Center and made our way upstairs. I mean, I’ll never forget it.

Frank Curzio: The mist from that dust still in the air, rubble everywhere. I mean, we were right there. Hundreds of people, which is probably thousands, but it was hundreds where I was, searching for survivors. It was very, very quiet. Now, you’re talking about New York City, downtown, cabs, loud horns, traffic, people everywhere. It was just quiet. Very, very quiet. And I remember looking at everyone’s face, and it was just like our face. It was just… Is this a dream? Is this real? Is this really happening? And when I go back to that day, it’s easy to think about the negatives. It’s easy to think about sadness or even get angry and pissed off. The way I remember this event, or when I think about it today is, and this is from being there, is the unity, the patriotism, how everyone came together. It didn’t matter politics, race, gender, what country you were from. It didn’t matter. It was a traumatic event that impacted all of us, and it quickly let us know what’s really important in our lives.

Frank Curzio: Living, our families, our freedoms, but you see everyone working together. You’re looking at all the stores that were open and it wasn’t a lot, so the Starbucks, McDonald’s, restaurants and the workers went there and they were given free food, free drinks to everyone. People drove from places like Ohio, Michigan, Pennsylvania. I mean, eventually they’d drive from California and everything like days later. The firemen, policemen, from departments all over the country came to help, all of them looking through the rubble trying to find survivors. 70 something police officers died, 340 firemen died that day. There was 23 battalion chiefs that responded, only four survived. These are people that ran up 50 flights of stairs with 70 pounds worth of equipment. Not one refused to go in to save the 2000 people that were trapped above the fires in the towers when they were burning.

Frank Curzio: Watch that 60 Minutes piece, unbelievable. You’re hearing those people get up to those floors, trying to create a stairway, trying to help these people get down before they collapsed. So, 2000 people trapped above the fires and there was 17,000 people in the World Trade Center, in those towers when the first plane hit. So, these guys helped say 14,000 people get out. I mean, some got out right away as soon as the plane hit, but holy cow. And just watching everything and bringing back those memories and those stories. I mean, we do things on September 11 not like we did this weekend. And you had the people, the firemen, their kids wearing their father’s uniform, and a lot of them followed in their father’s footsteps just like I followed in my dad’s footsteps. But after September 11th, something interesting happened, at least to my age group. And many of my friends who lost friends or family members on September 11th, that they winded up marrying their girlfriends, their significant others. Those that were married had kids. I guess it’s kind of like the baby boom years after the war.

Frank Curzio: In 1946, more babies were born that year than any other years, 20% more than 1945. When you see something like that and you live through it, you start taking life more seriously. And that’s for anyone. It’s not just September 11th. For me, losing my dad was huge. I was young. My dad was young, he died very, very young, and that’s your hero that dies, right? And you don’t have that person to be proud of you, to tell you they’re proud of you anymore. I mean, it’s a big event, something I’ve never really dealt with emotionally. And for me, I took things more seriously, especially when it came to work ethic. I started focusing on my strengths a little bit more, not letting them just, let talent waste away or anything like that, but just married, kids, family. My take from all of this is don’t wait for something traumatic to happen to be the person that you’re meant to be. Everybody waits, and they mess around and have fun, and you should have fun and enjoy. But that’s the most important thing, right? Enjoying it.

Frank Curzio: There’s so much anger out there. Over what? Over bullshit. Over people making us choose that want power. It’s just, when you look at everything, it’s pretty insane right now. It’s a crazy world. But don’t wait to be the person you’re meant to be. I mean, one of my favorite quotes is from Mark Twain. When he says the two best days of your life are the day that you were born and the day you find out why. That’s pretty powerful. But for everyone out there listening, find out why, because after a day like September 11th, and some of you, again, it wasn’t even September 11th, there’s something else, a school shooting or something that changed you, life could be very, very, very short. Very short.

Frank Curzio: And when you dying there and you’re taking your last few breaths, what are you going to say? What are you going to think? Will you say, “Wow, I lived a great life. I did everything, everything I wanted to do while I was alive.” Are you wondering how you’re going to be remembered? If this taught us anything, guys, live your life. Live your life. Don’t start tomorrow. Start right now. Emotional time. Hard transition to get into some questions here, but we will. That’s the new format. Tomorrow, a fantastic interview for you, one of your favorite guests. It’s definitely going to provide two really great ideas. Two fantastic ideas you’re going to love. But in this format, we’ll get to some of your questions. Keep sending them in, frank@curzioresearch.com. Again, not the easiest transition, but I’m going to try to make it a little bit more fun after an emotional weekend, at least for me, from someone that’s lived in New York, from someone who knows people that died, from going through those emotions, it’s pretty crazy.

Frank Curzio: So, I’m going to try to transition to something that was fun this weekend, which was sports, which is football. So, Brendan asks, “Hey, Frank, who’s going to win the Super Bowl?” Again, tough transition, but let’s have some fun. Okay? I will say Tampa Bay obviously is the favorite. Every year when we went to the Super Bowl, everyone thinks that team’s going to win the Super Bowl the following year, and they have most of the people intact, and they did look okay. They didn’t look great. Some said the Cowboys played great, they played awesome. They’ve got what three, four turnovers and still lost? But they did play good. It looked pretty good. But I will tell you what’s against Tampa Bay right now. Two things: One, it’s very difficult to win back to back Super Bowls. It hasn’t happened in a very, very long time. Of course, that was with Brady.

Frank Curzio: And two, and this is much more important, is I have a good friend that went to the game and said in Tampa that they ran out of beer and ketchup at half time. They’re going to need their fans to win. They won the Super Bowl in Tampa Bay Stadium last year, you better get some beer there. You may get some ketchup. Those are two most important things. Beer and ketchup. Boom, boom. You ran out at halftime. More supply issues. I do like Cleveland as a sleeper. I know, quarterback issues, we’ll see. I think Mayfield has to play that good and he did throw away that interception, but they look good. They have all the components. They’ve got a great offensive line. They have great offensive weapons. Their defense is very, very, very good. They have everything. I mean, if Mayfield just needed a little bit more confidence and be smarter, I think they going to be there. They’ve got a shot.

Frank Curzio: The Saints look incredible. That could be a sleeper. Maybe the Eagles. Hertz looked amazing. I think it was more of a fad… I mean, Hertz did look amazing and they came out really strong and look great. Their offensive looked great and in sync, but they did play against Atlanta and Atlanta looked horrible. I’m not too sure if that was too easy. But the Eagles are in first place, that’s all I care about. They’re in first place, which is awesome. My top pick is the Chiefs. I mean, last year, you say, well he threw some interceptions, he didn’t throw a touchdown. He didn’t throw a touchdown because his offensive line was terrible. He had two, three guys injured. And I mean, the second they snagged the ball, he had two, three guys in his face. He was running for his life.

Frank Curzio: Now, they have one of the best offensive lines. They really shored it up. Again, a little rusty to come out. And then, Cleveland is tough. Cleveland’s like, on paper Cleveland is one of the best teams. They’re awesome. But I still like the chiefs this year and of course Tampa Bay, but I’m going to go with the Chiefs. They’ve got something to prove and some guys on defense as well. But thanks for the question. And yes, we’re allowed to enjoy some football. Awesome, I’m happy that football’s going on. And it just so happened in one of the most emotional weeks. So, Mario says, “Hey, Frank, love the podcast. I agree with you 90% of the time.” Do you really? I don’t think my wife agrees with me that much. “90% of the time.” Then says, “On politics and COVID. I love the rants. I’m writing to tell you about the idea of a trend that I see. I live in California, very liberal upside down political state. My kids never touched a school room in 2020.”

Frank Curzio: “I have a seven and nine-year-old. We have mask mandates everywhere. My kids are finally at school after 18 months, but with masks on. Regardless of the lockdowns and all the political BS we deal with in California, one thing that never stopped and only got bigger and bigger is club sports. My kids play both club soccer and other sports because it’s expensive. We practice four times a week, never stopped regardless of COVID. We have tournaments once a month, sometimes with more than a thousand kids.” And he says thousands even, “Kids in hundreds of teams, no masks at all. This is your soccer, it’s baseball, softball, et cetera. It’s also not just California. As we had tournaments in San Diego, we had Washington, Texas, Las Vegas coming from around the nation for tournaments. In Florida, club sports are also big as we’re looking to moving there, but it’s the sense of freedom or maybe just a political or COVID break we all look for. Once we drive into the complex, it’s like we’re back into 2019.”

Frank Curzio: “My niece received a full 100% scholarship for softball and never played for a high school. Club sports is growing and growing and parents are throwing tons of money into it. High school sports is dying as parents and athletes don’t want politics or city/state associates with their sports. Here’s now my question: How do we invest in this trend? We all use an app called Team Snap, which is used across all club sports, but they’re not public. I understand that Dicks Sporting Goods is a way to play this trend as surging golf, fishing, camping, any other way that you feel free to mention, but there has to be something out there, some ideas to tap in to this growth market.” Great question. Club sports is definitely huge, if you’re one of those parents in the stands that are athletes, and it’s very big in the recruiting process for colleges. I don’t know if you saw the percentages, but it’s incredible. I mean, close to 80% of men and women who became college athletes played club sports.

Frank Curzio: And you’re seeing that, a lot of people don’t want to deal with the politics. That’s why I removed my kid from the school she’s in. When you’re going to a school, for me, the way I look at it and I’ll say this personally, I don’t know how everyone else looks at it, but those teachers, that system, should be doing the best interest of teaching my kid, or in the best interest of my kid and also best interests of the parents. And right now, that’s not the case. They’re doing the best interest for themselves, for their teachers, for what they believe in. And that’s really fucked up. So, you could see like a big shift where some of the things that they’re teaching… It’s not for the benefit the kids, no, it’s a benefit for themselves. It’s a benefit for themselves. So, you’re seeing a lot of this, just let me get out of the political, whatever side you’re on I want to get out of it. I just feel that. I want my kids to go to sports and enjoy it.

Frank Curzio: And my 13-year-old came to me and talked about Biden. And she saw a news story and she’s like, “Wow, I hate Biden. I hate Biden.” And I told her, I said, “You know what? Don’t say that.” I said, “First of all, you shouldn’t even be thinking about that right now, anything political at 13.” Were you thinking of politics where you’re 13? Holy cow. I was like in my mid-twenties before I started to care about this stuff. 13? How does she have exposure to that? How does she have exposure to this? All the YouTube channels, all the conditioning, all this craziness and social media. It’s like you’ve just got to take them off of everything. Even though sometimes some of that stuff could be educational, but come on. I told her, I said, “Listen, don’t, don’t watch anything. Don’t think about anything. You’re a kid, have fun. Go crazy. You’re in a tough school.” She’s got homework every day. But I was like, “Don’t say that. I don’t want to hear it. I don’t care.”

Frank Curzio: I’m not going to condition her or whatever. She’s going to have our own opinions on different things the way she grows up and how she wants the world, and that’s okay. And also, you didn’t have to hate the other side because I think differently. Today, yes, you have to choose. I hate you, and you’re an asshole, and you’re not right no matter what, no matter what fact you provide. I mean, there’s no negotiation. There’s no middle ground. It’s crazy. So, I see that. Now, to get to your question. Listen, athletics apparel, equipment space is insanely on fire. The only thing I worry about is supply chain issues. You see them grow and grow and where everyone’s talking about years now, not just months, and not just in the auto industry, but everything.

Frank Curzio: But if you’re looking at the names in athletics apparel, equip, that space, holy cow. Lulu Lemon, I mean, Lulu had the highest expectations ever and blew them out, stocks at new highs. Under Armor is doing great, amazing earnings last two quarters out, and if they pull another one, that stock’s really going to go. Nike earnings weren’t that great, but that’s because they really reported great earnings a couple quarters before, and it’s still five cents off its all-time high. Callaway Golf just raised, two great quarters, just raised estimates again. Right? So, you see in those earnings, and again, those stock prices are going to follow and continue to go higher. I don’t see that stopping anytime soon.

Frank Curzio: We’re in a second uptrend in sports and apparel and golf. Remember golf? People didn’t want to know golf. Now, they were forced to play it and one of the things you can play that was kind of COVID friendly and you could take two separate cards and you’re outdoors and stuff. Now I mean, you start playing golf, you’re in. It’s hard. I mean, especially if you’re an athlete because it’s one of the hardest sports, it’s just so difficult and you’ve got to be perfect. It’s one of the few sports that you can play where you’re great one day and it’s like you never even played the next day. It’s crazy. But the best play on all this, I think you mentioned, is Dick’s Sporting Goods. The quarter that they announced, probably the best this earning season, just dialed in special dividend, saying almost every department is great in golf, but they sell lot. Nike, Under Armor, they sell this stuff.

Frank Curzio: And that is the ultimate play on this because you don’t know, Nike again, they came out, I think the stock sold off a little bit and then it’s come back a little bit, but you don’t know, maybe Under Armour drops the ball, inventory concerns, they’re not able to, to fill up inventory for the holiday season, which is a possibility for many of these retailers right now due to supply chain issues. So, when I look at this, yeah, I like Dick’s Sporting Goods, it’s probably the best play, not a pure play, but I like what you think. And I love that. I love when you guys like, “Hey, I’m seeing this, how do I play it?” That’s how you should think. And don’t let it control your life like it does for me. I went to the mall this week.

Frank Curzio: I went to the mall this week because I am going away. I’m going to Dallas on a business trip, a very important business trip, and I’ll be back in a couple days, and I realized that since I lost 25 pounds, I don’t have a suit. So, I had to go to the mall and buy a suit and see if they could tailor it. Luckily, I found someone that could do it on Saturday, and I got it on Sunday. I couldn’t get a space anywhere. I mean, it was jammed, jammed, jammed. I mean, this is a place that has hundreds and hundreds of stores. It has a mall and all hundreds and hundreds of stores everywhere. I mean, you couldn’t get a space going into, not even parking a quarter of a mile away. It was crazy. And people, it wasn’t just like, “Hey, I want to go to the mall.” Everyone had bags, everyone was buying stuff. I had never seen it more crowded than it was.

Frank Curzio: But you want to find out what stores are doing well, who has crowds, where are they buying stuff? Who’s advertising the most, right? Usually, when you’re advertising a lot means that you’re going to bring in a lot of revenue most likely for that quarter. It could be a good earnings quarter. You see a company that’s not used to advertising now you see the commercials everywhere, but pay attention to this stuff. It matters. It matters. So, I love where you’re going with this. This is really, really cool. Great, great question. I get a lot of these all the time. What you’re seeing in different markets and how to play it, and everyone is part of something else. Some of you have kids, some of you just go to college. Some of you are in different industries. That’s how we’re able to understand how the supply chain issues, guys, come on. And I was saying, listen, these guys are lying to you. These guys lying. The data right here, this is from people in the industry.

Frank Curzio: Then you dig even further and then really talk to amazing, amazing sources and saying to confirm it and it’s like, man, these supply issues, it’s a lot worse than you think it is. These guys are like, “Yeah, it’s a one, two quarter problem.” No. no way. Try to buy a car right now, you’re not getting it for nine months unless you buy like the couple that just came onto the lot. I mean, it’s insane. It’s insane. But the way you get into trends, the way you figure out things ahead of time, it’s just by opening up your eyes, looking around you and paying attention. It’s the easiest way to do it. What your neighbors are buying, a new car, and Tesla’s, what’s going on, spending more money, remodeling their homes, going to Home Depot, whatever, Lowe’s. If you pay attention, you’re going to know well ahead of everyone. CNBC, whose jobs, these guys are great analysts and stuff like that, you’re not going to see a lot of them do boots-on-the-ground research.

Frank Curzio: They’re looking at numbers on TV. They have to talk about all the stories, not just the stories that they’re good at. Again, I was there. I was doing that, Fox, CNBC. You go in there, I had a whole thing of stories I was going to talk about and did the research. I’d wake up in the morning like, “Nope, new agenda. Here’s what the story is today.” So, you’re getting forced about talking about what’s good that day or whatever. I mean, listen, so a lot of these trends sneak up on you. You don’t hear about them on TV, but you know, you see them because you’re in these fields. Take advantage of that, man. That’s real time. That’s a huge advantage you have over so many analysts out there. So many of them. I’ll help you with the numbers. But man, you guys keep sending me emails like this, frank@curzioresearch.com. That is absolutely awesome.

Frank Curzio: Last question here is from Jake. He says, “Frank, what is the biggest mistake you see investors make? And thank you for all you do.” The biggest mistake, you guys listening to me, that’s a big mistake. The biggest mistake, I don’t know. To dial it down to one, listening to the wrong people is a really big deal. I like listening to a lot of people, but then I listen to other opinions and then do the data, just research myself. Not doing the homework, not really digging in. But I think the biggest, if I had to name one thing, is risk management. I mean, let’s put this in an example, say someone has bought Bitcoin, and they bought in the hundreds, and they’re sitting on a million dollars, two million dollars. If that’s your first experience with investing, holy cow, good luck, because that never happens, even for some of the professionals in history, gains like that.

Frank Curzio: And we’ve seen some of those gains in our Crypto Intelligence newsletter, which is on fire. Yeah, crypto has taken a little bit of a hit here, and it’s all over the place. Still very, very strong and very high, right? I mean, yes, it’s come down from 66, but look where it was like a year and a half ago, two years ago. I mean, come on. But how do you tell that person to dial it down a little bit or be smart? People say, “Oh, I’m going to hold it.” I mean, do you really want to hold Bitcoin forever? Maybe. I mean, are you going to die with it? What’s the point, right? You want to make money and be able to spend it on your family and stuff, I guess. There’s got to be a level where the investment doesn’t make sense anymore. There just has to be. Not everything’s a Microsoft and a Amazon forever.

Frank Curzio: Maybe some of you hold forever or whatever, but there has to be some level where you’re like, hey, if it gets to this and then you analyze it again and you still see growth and that trend is still secular, it’s still intact. But then, how do you tell them to buy something and earn 10% interest,.10% used to be impossible, and now, 10% is like an average gain. You tell people 10%, they’re like, “That’s all I’m going to make?” But they take on an excessive amount of risk and tend to blow up their entire portfolio, where it’s okay to have a 15, 20, 25% loss, even a 35% loss if you’re looking at that money, having a 35% loss, is going to go up two X, three X. That’s fine. If that’s your expectations, that’s fine. If it doesn’t happen, yay. You have stops, and you’re out of it.

Frank Curzio: I see a lot of people who’ve been holding gold stocks forever, forever. They made a little bit of a move here and there. But come on, for 10 years you’re looking at the market, look where the market went in 10 years and look at gold. You’ve got to be diversified, but that all goes into risk management because I see so many investors and this isn’t just young investors. You’re seeing seasoned investors that lose all their capital. Well, the seasoned investors don’t lose all their capital, they lose everyone else’s capital. I mean, you look at Ackman with Target, he was dead wrong on that one. He got wrecked because he tried to play it through derivatives. Long-term capital management, that was run by Nobel Prize winning economists who are now Wall Street traders.

Frank Curzio: These are supposed to be the smartest guys in a room. There’s a big difference between Nobel Prize economist and being an analyst. It’s huge. To demonstrate, Michael Jordan playing basketball and playing baseball. It’s different. Just because he’s an amazing athlete doesn’t mean he’s great in everything. Just because you’re a doctor doesn’t mean you’re a doctorate at everything. You’ve got to be careful with this shit. David Einhorn shorting Tesla since 2018, he keeps shorting it, he keeps shorting it, he keeps shorting it. But being stubborn, I think, it is not… I’ve been through this that’s why I’m telling you. Being stubborn just doesn’t work. You could be stubborn, stubborn, stubborn, and you’re pissed off that it just doesn’t work. But that’s one of the biggest things I see, because not having at least a little bit of a discipline, you never want to risk all your capital.

Frank Curzio: Maybe some of you do. A lot of people become billionaires by doing that. That’s fine. Just understand that. Make sure that return is worth the risk you’re taking. But remember, when you lose everything, you’re probably losing everything, maybe not the stock goes down but the whole market goes down and maybe you had options or whatever, you put time value on it, which is difficult because you could be right on your thesis but just wrong on the timing. And if you’re playing it through options, you’re dead. You lose everything. Shorted the wrong stock. You saw that with Game Stop and AMC. How many so-called smart people got wrecked? So, you want to always protect yourself because when you see that market coming down, that’s the time you want to buy. I mean, if you got wrecked during COVID and you had options or just whatever. And now, you lost all your money at a time when it was one of the greatest buying opportunities.

Frank Curzio: We said it’s going to be one of the greatest buying opportunities of all money flooding into the market, and we got back in a lot of our stocks did very, very, very well. You want to be buying when the market crashes. If you’re getting wrecked because you have no discipline and no stops or anything. You should be buying at a time when a lot of people do the opposite. They sell when stocks get crushed, and they buy as they go higher, even though buying stocks that go higher seems to be a great strategy these days with growth, depending on which stocks that you’re buying. But that’s probably the biggest mistake that I see.

Frank Curzio: All right, guys, continue sending your questions for this segment. New format, frank@curzioresearch.com. Great interview coming up tomorrow. Someone who is, I would say in the top three when it comes to performance in the Dollar Stock Club, where… You’re not familiar with the Dollar Stock Club? We take one pick from our guests each week and write it up, buy-up-to-price, a stop, basically getting an amazing idea from some of the best analysts in the world that I interview, for a dollar a week. It doesn’t get better than that. Trust me, I’ve been in this industry for 30 years. You’re not going to get better than that. And these are great, guys. But this person has given us some great ideas of the past 12 months. So definitely, definitely listen to tomorrow’s interview. And that’s it for me. I really appreciate all the support, and I’ll see you guys tomorrow. Take care.

Announcer: Wall Street Unplugged is produced by Curzio Research, one of the most respected financial media companies in the industry. The information presented on Wall Street Unplugged is the opinion of its hosts and guests. You should not base your investment decisions solely on this broadcast. Remember, it’s your money and your responsibility.

Frank Curzio, founder and CEO of Curzio Research, is one of America’s most respected stock experts. His research is regularly featured on media outlets like CNBC’s Kudlow Report, The Call, CNN Radio, ABC News, and Fox Business News. His weekly Wall Street Unplugged podcast—ranked the No. 1 “most listened-to” financial podcast on iTunes—has been downloaded over 9 million times.

Editor’s note:

On tomorrow’s episode of Wall Street Unplugged, renowned portfolio manager John Petrides joins Frank to discuss an exciting new trend in consumer spending…

And on Thursday, members of The Dollar Stock Club will receive one of John’s favorite ways to play this trend… delivered straight to their inbox… for just $1.

Here’s how you can be one of them.

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