Is Warren Buffett still right about investing?

[00:01] present-day markets saying it's hard to find value when everyone is gambling. My next guest says value investing still has a place in today's investing world as the key to unlocking value is patience. Let's bring in Tyrone Ross Jr.

[00:15] you Tyrone. Um and so, you know, when when Warren Buffett talks, we tend to listen and you know, he has been on right I mean, he gave an interview this week in which he reiterated these comments, but he he's

[00:29] talked a lot in recent years about what he calls the casino-like atmosphere that he thinks has come to equity markets. I mean, you deal with a lot of you know, younger clients. How do they how do they feel about value investing?

[00:42] Do they see it as something that is sort of outdated? >> They do. I think value investing is something that needs more education. I think there are a lot of young investors that have a lot more options that older

[00:55] investors didn't have and is chasing the next shiny object unfortunately. Um and if every firm has a brokerage now, they're rolling out some type of prediction market or some type of, you know, perpetual decks to trade and

[01:09] futures and it's it's insane. So, yeah, I think value investing still has a fiduciaries to educate a new generation of what that means to find value long-term. >> I mean, and and Buffett has also said,

[01:25] you know, it's tough for him to find value in the market. I mean, certainly Hathaway has not been deploying as much capital in recent years. So, so how do you look for it? How do you advise clients to look for it?

[01:38] clients to look for it? >> What we've done actually is started to again, educate clients on what value investing is. I think 12% over the last 5 years or so. So, definitely not going to excite grandma at Thanksgiving, but I

[01:51] think we've also started to look overseas, um expose clients to VT which is a mix of all the the companies here and globally to kind of start to show them investing beyond our shores and try to find value outside of US markets,

[02:07] which we feel is fairly valued right now, pretty rich if you will, but that's it's a conversation and not what is the next thing that's going to go up 100% in >> Right. Um and on the flip side of that,

[02:20] you have like the casino-like atmosphere in stocks and then you have like actual casino when you're talking about prediction markets, right? And something Tyrone, um it was so interesting when like crypto got to the acceptance level

[02:34] enough that you had folks like you um coming in from the advisory side um saying like you want to allocate X% of your portfolio to this. Are we at a prediction markets? Like do your clients come because you want to limit the risk,

[02:49] right? So are is that a conversation that you're having at all? having and I don't think it's a conversation uh financial advisors should be having right now. Um obviously, listen, what clients want to

[03:03] do away from the advisor, they should let their advisor know, but I think it's also prudent upon financial advisors to say what is the right thing to do in the scope of a client's long-term goals and and just what's just pure gambling. And

[03:18] I don't think any advisor, any fiduciary for that matter wants anything to do with gambling. Um so, yeah, I think it's it's tricky here. We don't discuss it. We haven't had the opportunity to and if it if we did, I would express the

[03:31] sentiments that I just shared with you. >> Got you. No allocation towards towards gambling. Um that makes sense. Um that said, you know, he I think Buffett too has talked about crypto as gambling,

[03:45] right? Um and so as somebody who is steeped in the crypto world, how do you >> Well, this is the part where the audience goes, "Hypocrite! Now he's >> [laughter] >> Um so it it's very similar in this

[03:58] regard. If you are a short-term trader and you are trading crypto, to me, yes, that is gambling. Um long-term investing on any asset class to me has a plan, there is a process of when to get in and get out, and crypto as a new and novel

[04:13] asset class falls into that bucket. Now, folks would still argue, "Well, it's new record, there's gambling." Yeah, but I could say the same thing in equities as could say the same thing in equities as well. So, I think long-term being, you

[04:27] know, very constructive on your views of why you're investing, when you're going to get out, making sure your financial plan is in place, I think crypto has its place as a long-term investment. But, anything that you're going to trade with

[04:39] the hopes of getting rich quick will be and should be considered gambling. >> Um and finally, I I want to ask you about your how you're thinking about Bitcoin prices right now, cuz we've seen them kind of bump along the bottom here.

[04:53] Um what are you hearing from clients? Are you know, are they um sort of true that they're going to hang on through this? >> Yeah, so again, our clients, like us, tend to be crypto hippies. They're true

[05:06] believers, they're not going to leave. I personally believe that we go lower and a lot lower. Um I don't know when and I don't know what that catalyst would be. passed. I don't know, but I do think we're not out of the woods yet. And I

[05:20] think that's a good thing for the space long-term. I think so long as Bitcoin kind of hangs out above $60,000, that's not good long-term. I'd love to see us go, scrape the bottom at 35, 40,000, wash out all of the excess and crap that

[05:34] doesn't belong, and then I think we can start to push higher when you start to see all of the major announcements and things that are happening now. Um those announcements usually happen, right, at at the, you know, in in in a bull

[05:46] roaring, but to see some of these announcements in a bear market, you can see it's going to be the tide that turns the hang when we go higher, but yeah, we we're going to we we can and should go lower, and I think that'll be a creative

[05:59] >> Are are you and clients adding here? Are you waiting for that further drop? >> Well, we we tell folks to dollar cost average, right? So, they'll, you know, think I I mean, personally, I again, I would it needs to go lower. I'm backing

[06:14] up the truck. I might sell this couch that's behind me, but um but we do have in um in relation to what their other goals are. But yeah, this is with, you know, being down 50% or so off the highs, it

[06:28] and continue to dust dollar cost average in. >> Tyrone, good to see you. Thanks so much. >> Thank you for having me.