GRANT: Hey Mak.

 

MAK: What’s up G?

 

GRANT: Do you know what happens when you start early?

 

MAK: I do G. You go wealthy.

 

BOTH: It’s time for money with Mak & G. Finance for you and your family.

 

MAK: Hey, Lily, thank you for coming over. I am so glad you’re here. Grant is being a boy again if you know what I mean.

 

LILY: Sure I do. Smelly annoying with each of his mouth open, but he’s always really nice to me.

 

MAK: Sure he’s nice to you. He’s not your bother.

 

LILY: Didn’t you mean brother?

 

MAK: Well, he’s actually both a bother and a brother.

 

LILY: I completely understand. You have to live with them. That’s not always easy for anyone to spend every day together.

 

MAK: Hey, did you bring Cindy she in your bag?

 

LILY: Sure is. I think she missed you guys since you haven’t come over lately.

 

MAK: Oh, here comes Grant. Let’s get him. Hide!

 

GRANT: Mak Lilly, is that you? Where are you guys?

 

MAK & LILY: Surprise!!!

 

GRANT: Not funny.

 

LILY: Yeah, it was a little funny. You should have seen your face. I haven’t seen you in a while. What’s been going on?

 

GRANT: I’ve been busy, you know, playing video games. Chillin’ doing tik tok.

 

MAK: Hey, you wrote Cindy.

 

LILY: I sure did. I think she wants to come out and talk.

 

MAK: Please make her come to life. You’re totally as good as Darcy Lin, that 12 year old on America’s Got Talent who was a ventriloquist?

 

LILY: I think you mean ventriloquist. There isn’t a kiss in the word even though I do love doing it. And I do kiss Cindy sometimes.

 

CINDY: Hi, my name is Cindy. What’s yours?

 

MAK: You remember? It’s, don’t you? We’re Mak and G and you’re here with us on a podcast called money with Mack and G.

 

CINDY: Hello Mak & G. Nice to see you again. So this is your podcast. What do you guys talk about?

 

BOTH: Money and other stuff.

 

GRANT: You’re really cute. Are you what they call a dummy?

 

CINDY: You’re cute too. But not too smart. I’m a ventriloquist. So your next 2010 Smart boy. You can call me a puppet that works too.

 

MAK: Ouch! zing by the puppet. Oh, good Cindy.

 

GRANT: Okay. I didn’t know that. But I will remember it. Lily, maybe we can teach you Cindy something on today’s podcast. Since Cindy already schooled me.

 

LILY: Cool. We’d like that. I think it would be fun to learn more about money.

 

MAK: Okay. Now’s the time we usually ask our dad for some help because he’s studying stuff forever.

 

GRANT: Yeah, he knows a lot and has a lot of gray hair. Do you want to do the honors? Just Yo, what’s on this paper?

 

DAD: What is that thing? Its mouth is moving. It’s freaking me out.

 

LILY: Mr. Jones. This is Cindy. Isn’t she beautiful?

 

CINDY: Hi Mr. Jones. How are you beside me? It’s nice to be here with you. Mak & G talk about money.

 

DAD: Wow. I stand corrected. She is super cool. Lily. Did you make her talk? I didn’t see your lips moving at all.

 

MAK: Dad Lily is a professional. She’s no beginner. This isn’t her first rodeo.

 

DAD: Lily. Is this a hobby I’ve been doing since Corona started? Or is it really more serious? And you’ve got a job?

 

MAK: Dad Lily doesn’t have a job. She’s in seventh grade with us..

 

DAD: Okay, you’re right. But Cindy is so lifelike.

 

LILY: Makenna’s, right. I don’t have a job, but I do work at it. And it’s really fun to do. I’ve been doing it for several years. I’ve done shows and other performances at different places.

 

GRANT: Dad she took private lessons courses and went to Camp prior to Corona. You should see her room.

 

DAD: Should I dare ask? What’s in your room Lily?

 

LILY: Well, besides regular stuff like a bed covers pillows, you know, I have 15 ventriloquist figures.

 

DAD: Ventriloquists. What aren’t they called?

 

MAK: Dad? Don’t say that D word. You’ll regret it.

 

DAD: I was gonna say puppet. Who would use a D word. It’s 2020 G.

 

GRANT: I have no idea. Don’t do that.

 

DAD: So isn’t that a little spooky? Kind of like 15 scary clowns watching you sleep.

 

GRANT: Dad now you’re acting weird.

 

DAD: Wait a second. Didn’t nurse Lynn when America’s Got Talent when she was 12 Being a ventriloquist. She’s your age, right?

 

LILY: Yeah, she did. She’s my idol. She’s so funny and a fantastic ventriloquist.

 

CINDY: She can put her hand on my back anytime.

 

MAK: Cindy!

 

DAD: I like Cindy. She’s sassy. Okay, Lily, you know, we talked about money on the show. So how much does it cost to buy a little friend like Cindy?

 

LILY: Well, it starts around $50. But a custom made friend can cost around $1,500. But it’s all the extras that cost.

 

DAD: Like what kind of extra is?

 

LILY: Well, if you want real hair, that’s one thing that will cost you more. And if you want to spend time on the real nostrils, it really brings them to life.

 

GRANT: Doesn’t have real boogers. That’s growth. Can you seriously get real hair?

 

CINDY: Ewwww Cross!!

 

LILY: Yep. My puppet Ernie has great hair, but it’s not real. I put gel in it and it smells great. The muscle thing was a joke. Grant totally took the bait. Most of us don’t have ears so they can’t really hear.

 

CINDY: Hey, these holes on the side of my hair are not from my good luck system. You’re my sister.

 

LILY: Watch yourself in the air. I’ll take you back to OMAS.

 

CINDY: I’m sorry. I won’t do it again. I promise. Correct my stuff…

 

MAK: Isn’t only your grandma. She’s nice. What did you do there?

 

CINDY: Fully…

 

LILY: Relax I’ll cover your holes. Okay. Yes, she is my grandma. Cindy wasn’t looking so good. So we added more internal organs. We did have to cut her open. The surgery was painful for a while.

 

GRANT: That sounds terrible for Cindy.

 

LILY: It wasn’t so bad. We didn’t have to change your skin, which was good.

 

GRANT: You can change your skin in a fortnight by hitting a button and then your armor changes.

 

LILY: Well, it’s much different. You kind of have to rip off the face and the rest of the body to replace it. Or you can just take the easy way out. Just put on a second layer of skin.

 

MAK: Talk about thick skin that would do it.

 

DAD: Thanks for those images. Lily. I’m gonna have a nightmare tonight. I think we should continue this conversation. Our next podcast. I have a question. During quarantine, what is one thing that you Lilly and Mak love to do?

 

MAK & LILY: We love to do crafts.

 

MAK: Yes. Making Stuff painting pictures.

 

LILY: Yes. Anything we can make with our hands is great.

 

GRANT: Lily companies have been affected by Corona some are doing better and selling more and making more money. And others of you opposite.

 

DAD: That’s why I asked what you did during these last couple of months. Did you know there are several businesses that focus on making crafts. Have you ever heard of Etsy?

 

LILY: Yeah, they have lots of crafts, and evil can sell their own homemade crafts, as well as other stuff.

 

DAD: Guys, if you expect the company to grow by selling more products, making more money, it would have been good to buy the stock.

 

MAK: Lily, you can own part of a company. If you buy one slice of pizza and the pizza grows, your piece gets bigger.

 

CINDY: I’m so hungry.

 

MAK: Owning a slice of a company is called buying a stock and.

 

GRANT: If you buy it when it’s small and sell it later when it’s grown for a higher price you make money.

 

LILY: Wow, that sounds really interesting. So what about Etsy? Sounds like their business probably done a lot better. Since we bought a lot of crafts during Corona.

 

GRANT: It has been doing really well with Corona. But I read that there was a huge demand for face masks. So he had really cool handmade masks and things exploded.

 

MAK: It must have introduced a bunch of new shoppers to their company, which helps for the future. So it sounds like the stock must have done very well. But things change quickly.

 

DAD: Grant. How about you let us all know about Etsy stock price prior to Corona, then the price when Corona hit and where it’s at now.

 

LILY: So the price is always moving?

 

DAD: Sure does. Mac and G What is priced based on?

 

BOTH: Supply and demand.

 

GRANT: Okay, before Corona, it was around $60 then when people were scared and didn’t know what would happen and went down to $31 but now it’s over $110.

 

LILY: Wow. So if you sold it for $31, you would have lost $29 on selling nothing? What’s it called again?

 

MAK: I share a stock.

 

LILY: Yeah, but if you would have held onto it until now you would have earned $50. Because people saw the increase in sales and expectations increased.

 

DAD: Lily. I don’t think Cindy could have said it any better.

 

CINDY: The stock dropped 38% from $60 and went up to 254 percent.

 

DAD: I stand corrected. That was awesome, Sandy. So what else changed during Corona?

 

LILY: How about video games?

 

DAD: Lily, this is the fourth episode of the season. Do you think Grant would have let us miss that opportunity to talk about video games?

 

LILY: You’re completely right Mr. Jones. I’ll have to check out your prior episodes with Cindy Of course.

 

MAK: Hey Dad, you did a lot of work from home and had a ton of those video calls in the room. Mac, I think it’s zoom. Dad did a lot and we did some for school too.

 

GRANT: You made us play video games in a room and went on to call and try to keep us quiet.

 

DAD: I think the key word is try. I haven’t heard Lily being really loud on the phone. It was funny for me to hear, because you’re normally quiet whenever you’re around.

 

LILY: I guess I like my video games a lot. Plus, if you have good teammates, it’s a lot more fun. So what happened with Zoom stock?

 

DAD: This one is really interesting. You know all about the US Constitution, right?

 

CINDY: It’s a document that embodies the fundamental laws and principles by which the United States is governed.

 

DAD: Wow, that was amazing. Nice job, Cindy.

 

MAK: She wasn’t done Mr. Jones.

 

CINDY: It contains 4543 words like signatures, has four sheets 28 and three quarter inches by 23 and five, eight inches each. It contains 7591 words, including the 27 amendments.

 

MAK: Wow, maybe we should call Cindy Siri. Amazing. So why do you ask dad?

 

DAD: That was awesome. So do you know what terms and conditions are?

 

GRANT: It’s kind of like the rules when you use software. For a fortnight you can’t team up with opponents or cheat.

 

CINDY: You Sure?

 

MAK: Yeah, didn’t that one guy try to kill you while flying? He had cheated by hacking the system.

 

LILY: I saw it too. And he had the perfect screen name. Hackernoob43. He sure earned that name.

 

GRANT: Noob, noob, noob.

 

DAD: Well, the reason I bring it up is that terms and conditions for zoom are longer than the Constitution. Crazy, huh?

 

MAK: That is I guess I need a lot of rules to cover so many potential situations. Sounds like it makes sense. Dad, I would have guessed zoom exploded with everyone being quarantined. No one had meetings face to face.

 

DAD: Well, in December of 2019, zoom had 10 million users.

 

LILY: That’s a lot, Mr. Jones. That’s more than the population of 40. States. Wow,

 

DAD: You’re right. It took nine years to get to 10 million. Here’s the crazy part: zoom jumped 30 times in just four months to 300 million at the end of April 2020.

 

LILY: So their stock price should have taken off.

 

GRANT: I can’t wait to hear this one. Mac, I think you have a number for these.

 

MAK: Shortly before Corona. It was around $110. But it was on the rise. When most companies got hit, zoom, jumped up and hit $130. And a little over three and a half months later, it doubled to $260.

 

LILY: Wow. So if you bought the stock earlier this year, you would have made a lot of money.

 

DAD: That’s true. But it doesn’t always make sense over a short period of time. Do you guys know there’s a calculation of the price of a share and how many years for the company to earn that amount? I am a very smart person.

 

GRANT: Isn’t that the P E ratio. That’s the price of one share of one stock being divided by a share of earnings.

 

MAK: So if a share of a stock is $10, the company makes $200 per year. And if there are 100 shares, that means five more years.

 

LILY: Hold on. If the company made $200 per year, and there are 100 shares, each share earns $2.

 

CINDY: And if the price of a share is $10, and the price to earnings is $10 divided by $2, which means it takes five years to earn back but you take the stock.

 

DAD: When you go Sandy, that’s perfect. Do you know what the P E ratio is for zoom right now?

 

MAK: Well, with big expectations, it probably means the value will come in the future. And it’s not earning as much now.

 

GRANT: So you pay more now than it really earns. I’m going to take a wild guess the price is 100 times its earning.

 

DAD: Great guess but it’s actually over 1400 times its earnings.

 

MAK: So it would take 1400 years to earn back what you paid for the stock based on today’s performance.

 

DAD: You got it we call this growth investing. You invest in a company because you believe it will grow a lot. Value investing is buying it when it’s on sale. You guys are totally learning a lot.

 

MAK: This is all making sense with different investing styles, and the more we know the better as we can mix styles.

 

GRANT: I like growth investing, as that’s probably more true technology, but we’ll see how value investing is good too.

 

MAK: Dad can we have Lily back on our next podcast and maybe talk about a few more companies that are doing well?

 

GRANT: Yeah, that’s more fun than talking about those companies that are getting hurt.

 

LILY: If I have a vote, you are now registered to vote. That would be fun, and I would love to come back.

 

CINDY: Me too.

 

DAD: Sounds like we have a plan. Now, Lily and Cindy, this is where you say goodbye on the count of 3. 1..2..3…

 

LILY: Bye!

BOTH: You can be sure there are always good investments no matter what the environment, we’re seeing a tremendous amount of new investors entering the market for quick gains. Robin Hood and his Merrie Men is a commission free investment and stock trading app. There has been a storage number of individuals who have recently signed up for this app. It’s a great concept to allow investors to reduce the cost of investing. However, this wave of newcomers has been called the casino stock market, which gives me pause. It’s important that we continue to understand what is happening in the market. We talk about fundamentals of stocks, is there a real product that is produced? Does the company make money? And is there good reason to believe that the expectation is positive for future growth? This reminds me of the late 90s with the.com vo companies weren’t being valued on what was happening but lofty expectations of the future. Many of the winners at the time weren’t making money and several didn’t have a product. Outcome bubbles push stock prices very high on speculation. And it did not end well. There was a lot of talk that the weight of companies was different back then, however, the market took an incredible fall. Many of the companies didn’t even survive. Gaining knowledge and resisting the urge and that’s just because of FOMO, Fear Of Missing Out is not a good reason to jump in. Let’s build the knowledge we need and get comfortable with how things function and put together an investment strategy that fits our objectives and our personality. Thanks for being here and we’ll see you next week with another episode of money with Mak and G. Bye!