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Motley Fool Hidden Gems Investing

The 37% Rule

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 30 September 2016

⏱️ 41 minutes

🧾️ Download transcript

Summary

Costco serves up bulky earnings. Frito Lay delivers for Pepsi. McCormick spices things up. And a beer maker gets a whole lot bigger. Plus, Brian Christian, co-author of Algorithms to Live By, talks computer science, decision-making, and the 37% rule.  Thanks to Pearl Auto for supporting this episode. Go to http://PearlAuto.com/Fool to get free 2-day shipping! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This episode of Motley Full Money is brought to you by Pearl Auto, the folks that make wireless rear-view cameras for your car that retrofit around your license plate and sync with your smartphone so you can drive safer.

0:11.4

Check it out at pearlauto.com slash fool and get free two-day shipping.

0:21.0

Everybody needs money. That's why they call it money.

0:25.1

I'll best see them live on free, but you can give them to the present be the future.

0:32.3

From fool global headquarters, this is Motley Full Money.

0:35.8

It's the Motley Full Money radio show. I'm Chris Hillen joining me in studio this week.

0:39.1

For Million Dollar Portfolio Jason Moser, for Motley Full Rule Breakers and Supernova David Cretzman,

0:44.0

and for Motley Full Pro and Options Jeff Fisher. Good to see you as always, gentlemen.

0:48.0

Hey, hey.

0:48.9

We've got the latest headlines from Wall Street.

0:50.7

We will talk about the computer science of human decisions with author Brian Christian.

0:55.0

And as always, we're giving you an inside look at the stocks on our radar, but we begin this week with retail and beverages.

1:01.1

Costco's fourth quarter profits came in higher than expected thanks in no small part to the lower cost from its new credit card deal with Visa.

1:10.8

Looks like a good deal, but what else did you think about the quarter Jason?

1:14.2

Yeah, I think it was good to see that they were able to present this whole transition with Visa in a positive light.

1:20.6

I mean, there have been some questions. I think at least over the quarter in and how it was actually working out.

1:25.1

I do think the market is probably making a bit more of this quarter than is probably warranted.

1:30.6

Costco is a great business. No, no concerns there, but I think it's very difficult to make the case from today's valuation that it's actually a market beating investment.

1:41.7

And that was the concern we had in a million dollar portfolio for quite some time.

1:45.8

So we did actually end up selling it from the portfolio.

1:48.9

But again, I must reiterate it wasn't because we think it's a bad business.

1:52.6

We love this business. It's just the valuation presented a tough case there.

...

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