Energy: Defense Investing? It’s Classified
Industry Focus
The Motley Fool
4.6 • 854 Ratings
🗓️ 15 October 2020
⏱️ 23 minutes
🧾️ Download transcript
Summary
Last month, the U.S. Air Force revealed a prototype for a next generation fighter jet, unveiling a program that had been kept secret throughout its development. What issues do investors face when dealing with classified programs such as this? How should an investor analyze a business that does classified work? Motley Fool Contributor Lou Whiteman joins the show this week to discuss these topics and more!
Stocks Mentioned: MANT, LDOS, BAH, PLTR, LMT, BA, NOC
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Transcript
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| 0:00.0 | Welcome to Industry Focus. The Podcast that dives into a different sector of the stock market each day. |
| 0:11.0 | I'm your host Emily Flippin. I'm Jason Moser. I'm Nick Seyphill. I'm Dylan Lewis. And today |
| 0:16.0 | we're talking financials. Today we're talking consumer goods. |
| 0:19.1 | Wild-C-C-C-Gold's. Wednesday. And we're talking energy. And today we're talking tech. Let's dive in. |
| 0:27.2 | Welcome to Industry Focus. I'm Nick Saipel. Pentagon Watchers got a surprise late |
| 0:31.2 | last month when the Air Force revealed in a designed and built a prototype of its next fighter plane. |
| 0:35.7 | Remarkably, the entire development process likely coordinated with multiple defense contractors |
| 0:40.4 | over the course of many months was completed without any rumors leaking about the program. |
| 0:45.0 | This aircraft is just the latest example of how little we know about the cutting edge of military defense |
| 0:49.2 | and how much investors are kept in the dark about where the Pentagon spends its money. |
| 0:53.6 | On this week's episode, Molly Fool Contributor Lou Whiteman joins the show to take a look |
| 0:56.7 | at classified defense spending and what it means for defense investors. |
| 1:00.3 | Lou, welcome back on the podcast. |
| 1:02.3 | Happy to be here. |
| 1:03.0 | Great to have you on as well always. |
| 1:04.0 | We've got a fun topic this week talking about classified projects in the defense industry. |
| 1:09.0 | Before we dive into some of these projects and maybe how should think about them as an investor. |
| 1:13.0 | This high-level, maybe this is an obvious question, but why are there so many classified |
| 1:16.2 | projects with the U.S. military and with militaries in general? |
| 1:19.2 | Yeah, you know, I mean, dissertations have been written on this, so we won't go in too deep. |
| 1:24.4 | But in a very simple level, the Pentagon will argue that secrecy is the key to military superiority. |
| 1:30.3 | We can't let our rivals, our enemies know what we are working on, no different than a football coach hide into playbook. |
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