Carl Icahn …… danger ahead [VIDEO]

Carl Icahn …… danger ahead [VIDEO]

Carl Icahn …… danger ahead [VIDEO]

0:00I am concerned about that’s a major bubble but I will say too short it
0:09tomorrow this market keeps going up and up with zero interest rates and that’s
0:15what’s really pushing it sounds like you’re saying this could be the
0:18beginning of something problematic I think that will it happen it’s when it
0:24will happen there’s one investor out there that a lot of CEOs just hafta take
0:32the phone call from because when you get a call from this guy carl icahn he
0:35probably wants to shake things up a little bit giving his thoughts on stocks
0:39broadly I believe the market is extremely overheated also if more
0:44respected investors had warned about the market in 2007 we might have avoided the
0:49crisis in 2008 overall the dus equity market do you think it’s in store for a
0:55dramatic pullback I’ve been worried for the list five six months about the
1:01market and the economy canada dangerous but that we did speak four or five times
1:07wanting about the problems we have I want to speak out now
1:13because I know this may sound corny but I grew up in the streets of Queens I
1:17loved his country and I feel so strongly about the dysfunction that is going on
1:23both in washington and
1:26boardrooms of corporate America
1:38over the years the risk of being modest I probably have one of the best records
1:43on wall street working on broken companies or companies with great
1:47potential and just have problems many times in management what management is
1:52doing and I countries in that position right now
1:57Congress currently in a nail-biting three-way tie for least popular branch
2:02of government and just look at her record thirty years no tax revolt 30
2:08years no immigration as a result you have this movement toward a guy like
2:12that because you want somebody that’s not behold two an establishment so we
2:18need president that can move congress and I think donald Trump could do it I
2:23disagree with him on certain issues and certainly would talk to a more but this
2:27is what this country needs somebody to wake it up one obvious problem the
2:32government should have fixed a long time ago is the carried interest tax loophole
2:37people and was really good friends of mine I like him but not having to pay
2:43full taxes on money the journey is an absurdity I would take carried interest
2:50and I would let people that are making hundreds of millions of dollars year pay
2:54some tax because right now they’re paying very little tax and I think it’s
2:57outrageous to go to raise taxes on your cell teddy roosevelt was great he stood
3:02up to JPMorgan and we did we get a guy like that again
3:05Donald baby’s breath but is willing to say what he believes in willing to say
3:11hey this is complete bullshit the middle class guy who’s making the 50,000 you
3:16realize I’m being taken advantage of you can read you can understand you know in
3:19Tsarist Russia had to have a revolution and as I would bring out the machine
3:23guns ammo and down all these guys have to do is vote so we need government to
3:29get out of this gridlock to get out of this dysfunction a quintessential
3:33example is repatriation which to translate means that is true point two
3:40trillion dollars in profits that american companies have already hit Asia
3:45South America and Europe companies domiciled in this country but make goods
3:53in another country producing and selling liquor nothing to do with the united
3:58states that money is sitting there and the companies would bring it back but it
4:03is completely totally unfair the companies say and rightly so that they
4:08have to pay a double tax they make the widgets over there they sell them over
4:12there why should they have to pay a double tax with no other country demands
4:17that from their companies except the United States a country should itself in
4:22the foot because he’s companies its able without are bringing back then so they
4:26punishing to punish the little guy again because of that money came back it would
4:31make for jobs that money doesn’t go two matches that money is given to somebody
4:35who’s and will invest in somewhere else in this country and help to create more
4:40jobs as opposed to take you the money over in Europe and invested in Ireland
4:45or somewhere like that it’s absurd not to make a deal and these companies are
4:50willing to pay a tax and everybody agrees that it should be done is just
4:54having a food fight over it’s almost funny if it wasn’t so serious
4:58who’s gonna get the credit for it you know
5:01gonna be republicans that put their foot down and say we should take you back all
5:08the democrats have won 15 percent to take that money back so the holdings of
5:13service and worship true and versions which I call inversions been a lot of
5:18companies and say hey you know what we’re gonna get out of this country
5:21completely we don’t need to be here they make most of their equipment and make
5:25the widgets make before whatever they do in another country why should they be
5:30here at all and the same type of short-term thinking that’s happening
5:36with the government is happening in corporate America today the irony of
5:40lower interest rates is that companies today instead of taking the money that
5:46they can borrow and really a lot of capital new machinery new equipment in
5:50their workers to make them more productive what they do with the money
5:54is almost perverse they just go in and buy another company to show the analysts
5:59on wall street there are going up so the stock will go up and its financial
6:03engineering at its height the earnings that are being put out today I think
6:12they’re very suspect the guidance to giving doesn’t talk about stock
6:16compensation they ignore restructuring course they don’t advertise intangible
6:21assets they ignore the cost of taking over another company we sell the city
6:26she is like taking the drug you know borrow money very cheaply taking over
6:32another company you feel good like steroids you know the athletes jump in
6:36pretty high and so those companies they can show a huge even a number that we
6:41all know is that gonna be there in 23 is look I know this stuff I’ve taken over
6:45companies I understand the way of it so these earnings are fallacious and
6:51another reason the fallacious is a lot of companies that are doing buybacks
6:56shouldn’t be doing it when you start doing those buybacks what it does its
7:00short-term fixed but it weakens the balance sheet now I am a proponent for
7:07buybacks and companies like apple with a city in the 200 billion in
7:11cash and not a lot of debt they should do buybacks especially an apple with its
7:16stock is nine times earnings but you have companies today
7:19music companies I should selling at thirty times earnings 28 uncertainties
7:24and have no net worth because they keep buying back stock yet analysts look at
7:31quarter-to-quarter if you earlier according to the stock closed up and up
7:34and now love to see those who just want to just see quarter to quarter earnings
7:39see the stock up and yet you really do gap which is a tougher rhetoric you
7:47haven’t really increase service for three years
7:49GAAP earnings they’ve stated about $100 shipped after three years and even GAAP
7:54earnings the suspect which means we’re paying huge multiple but what is gonna
7:59happen to that market who was going to buy your stocks in those early start
8:04coming down and that’s with low interest rates which i think is another scary
8:10issue the Federal Reserve least unchanged go rate hike from the federal
8:15reserve the funds rate unchanged at a range of zero to a quarter percent it
8:20also cites global economic weakness yesterday and again decided not to raise
8:25interest raised the question is why should they raise rates and it’s almost
8:32a rhetorical question so many reasons they should raise rates because low rate
8:37side by definition building bubbles building real estate bubbles building
8:43bubbles even in the auto market because the fed balance she has mushroomed from
8:49less than a trillion dollars to over 4.5 trillion which is a huge almost
8:56unbelievable move and all that money
8:59crowds out the little guy the middle class investor has nowhere to go with
9:03their money but into the market or even more concerning high-yield bonds that a
9:09very risky and they’re being sold on mas to the public just as mortgage-backed
9:14securities so companies issues he’s high-yield bonds and by other companies
9:20and in fact the M&A business just doing mergers and acquisitions has doubled
9:26from 45 years ago up to 2 trillion dollars the irony of lower interest
9:31rates is that why you think it’s going to help create jobs and make the workers
9:36more productive it’s not happening if you look at our companies today the
9:40growth of productivity is an all-time low property plant equipment is older
9:44than it’s ever been so we are not taking care of these companies we have making
9:48her knees actually like taking over other companies by low interest rates
9:53and when I say is what price is low interest rates would just that simple
10:01the panacea we would never have recessions we would never had these
10:05crises we would never have these panics and look I’m not either criticize the
10:10Fed cause the Fed did save a certain way but then again you could argue that got
10:14us into it to begin with you know to adultery with very low interest rates I
10:18mean it’s like giving somebody medicine and this medicine is being given and
10:23given give it and we don’t know what’s going to happen you don’t know how bad
10:26the end of this is going to be you do know though that would you did it a few
10:31years ago
10:32can cause a catastrophe caused 08 we do you draw the line here
10:43and I just say what I mean up to all that to say what I mean
10:46Blackrock is an extremely dangerous company ok not that larry is dangerous I
10:54know I said in my debate with Larry Fink that I think Blackrock is a dangerous
11:00company I don’t mean that in a bad way don’t mean to insult Blackrock and black
11:04practice it to make money that’s what do every does does a great job at it he was
11:09the major problem in it
11:11ok Mrs Jones calls them or even insurance company or even a pencil and
11:15say look we can’t make any income we need income so the wealth management
11:19good looks and says well you can buy high-yielding don’t even know what you
11:23mean higher yields well black record a great name and we can buy you know what
11:29is the reaching EPS ok good why not you don’t know the price I don’t understand
11:34what the prices they don’t let the state with the risk is high yields really
11:38stands for junk bonds people are buying these not really understanding what
11:43they’re buying it if you just look at the numbers they were amazingly risky
11:49you have 2.2 trillion of junk box up five years ago up a trillion dollars I
11:55mean that’s a helluva lot when you think about the whole as happy as only ninety
11:59truly but was he does what he does best
12:01it sells securities I used to live was over these guys that sell these bonds at
12:06a used to say you know the Mafia has a better code of ethics are you guys you
12:10know you selling this crap as you keep selling and and in fact you’re showing
12:14some of this and now is really what’s going on and it’s just deja-vu Blackrock
12:20is sort of a name on there and this is one of the problems you had no 7 we have
12:26brand names are a lot of these housing things and wealth management guys
12:29believe there is liquidity here but if and when there is a real problem in the
12:36is gonna be a rush to the exits I get a movie theater and people want to sell
12:40those bonds and think they can sell them there is no market form we are going to
12:47a cliff
12:48get this party Mario they’re all of this party they’re having a drink at having
12:54fun and you know who’s pushing that thing it’s Larry Fink and Janet Yellen I
13:03don’t think that’s fair but I tried to and then you can help me
13:07should be pushing this thing I could not somebody should have said that so no
13:12seven and I’m telling you know 7 I talk like this but I never really came out
13:16and we should say it every 1 21 Janet wants to she wants to put the brakes on
13:20it and where to go and the people in the polity no no don’t touch those grades
13:26don’t touch is destroyed and they’re moving toward this clip say this thing
13:31is going to go over this clip again it was gonna destroy it
13:35they gonna hit up black rock
13:41and you know I said it lifted late but I will tell you this i’ve seen this before
13:46the number of times I’ve been around a long time I was sorry 6974 7987 and then
13:542000 wasn’t pretty and I think time is coming that might make some of those
14:00times looked pretty good you know I look back and I love this country but I sure
14:06as hell don’t level of the politicians in it was a CEO’s I think they’ve taken
14:11advantage of the system and it’s just deja-vu the public they got screwed it
14:18always gonna get screwed again I think of said he added that said those who do
14:23not learn from history are doomed to repeat it and I am afraid we’re going
14:28down that road

Mohnish Pabrai On Value Investing, Missed Opportunities and Autobiographies

Mohnish PabraiIn August, Mohnish Pabrai took part in Brown University's Value Investing Speaker Series, answering a series of questions from students. Q3 2021 hedge fund letters, conferences and more One of the topics he covered was the issue of finding cheap equities, a process the value investor has plenty of experience with. Cheap Stocks In the Read More

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