Why Valuations Don't Matter

The Compound and Friends

Josh Brown

News, Business, Business News, Investing

4.8 • 1.9K Ratings

🗓️ 1 August 2025

⏱️ 81 minutes

🔗️ Recording | iTunes | RSS

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Summary

On episode 202 of The Compound and Friends, ⁠⁠⁠⁠⁠⁠⁠Michael Batnick⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠Downtown Josh Brown⁠⁠⁠⁠⁠⁠⁠ are joined by Adam Parker to discuss: earnings season, the Fed holding steady, R&D spending in big tech, Hulk Hogan's wealth, and much more! This episode is sponsored by Global X ETFs. Visit: https://www.globalxetfs.com/ and start exploring new opportunities today. Sign up for The Compound Newsletter and never miss out: ⁠⁠⁠⁠⁠⁠⁠thecompoundnews.com/subscribe⁠⁠⁠⁠⁠⁠⁠ Instagram: ⁠⁠⁠⁠⁠⁠⁠instagram.com/thecompoundnews⁠⁠⁠⁠⁠⁠⁠ Twitter: ⁠⁠⁠⁠⁠⁠⁠twitter.com/thecompoundnews⁠⁠⁠⁠⁠⁠⁠ LinkedIn: ⁠⁠⁠⁠⁠⁠⁠linkedin.com/company/the-compound-media/⁠⁠⁠⁠⁠⁠⁠ TikTok: ⁠⁠⁠⁠⁠⁠⁠tiktok.com/@thecompoundnews⁠⁠⁠⁠⁠⁠⁠ Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Michael Batnick and Josh Brown are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management. The Compound Media, Incorporated, an affiliate of ⁠⁠⁠⁠⁠⁠⁠Ritholtz Wealth Management⁠⁠⁠⁠⁠⁠⁠, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. For additional advertisement disclaimers see here ⁠⁠⁠⁠⁠⁠⁠https://ritholtzwealth.com/advertising-disclaimers⁠⁠⁠⁠⁠⁠⁠. Investments in securities involve the risk of loss. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. The information provided on this website (including any information that may be accessed through this website) is not directed at any investor or category of investors and is provided solely as general information. Obviously nothing on this channel should be considered as personalized financial advice or a solicitation to buy or sell any securities. See our disclosures here: ⁠⁠⁠⁠⁠⁠⁠https://ritholtzwealth.com/podcast-youtube-disclosures/ Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	You know what, I notice when I'm here, more than almost anything else I do, is how fast the time goes by. Like, we do an hour or whatever, we do, an hour, 10 minutes. I just feel like it races by. It does. Right? I mean, when I'm with my trainer, one minute takes so long. I mean, the guy's like killing me, but an hour in here flies by. Love it. You know what I mean? What I thought you were going to say is that, yes, I do know exactly what you mean, but I thought you were going to say between appearances, because the last time you were on, I think it was November. By the election, sell the inauguration. It felt like yesterday. The title, I looked at and I thought, okay, at least that aged well because we told people
0:38.4	buy the election, sell the inauguration, and that word perfectly, yeah.
0:41.9	That aged pretty well.
0:43.5	Because sometimes you say stuff that doesn't age so well.
0:46.2	All right, so this is what Sean went back and said the top takeaways.
0:51.1	Prediction markets beats polls.
0:53.0	Yep.
0:53.5	Gross margins matter to the most. We're going to talk about that again today. Sentiment is a risk. Are I supposed to look at you and smile? No, you just look at my eye. You know, all right. So you said sentiment is a risk with nearly everyone bullish and now wallet where he left, overly optimistic. That was a good call. Yeah. And then AI driven margin expansion ahead. Yeah. And then lastly, valuation only hurts when companies miss.
1:14.6	We wrote a big note about valuation this last week.
1:17.2	And Josh mentioned you want to talk about that.
1:18.6	That's cool.
1:19.3	I've gotten a lot of feedback.
1:20.3	Were you afraid to hit publish?
1:22.7	No.
1:23.8	Not even a little.
1:24.9	No.
1:25.8	You know, there are like a – I did get some incoming. I got one old school value PM and a long way firm who asked me to unsubscribe because he said he doesn't like being insulted. And I'm like, look, I didn't mean to insult you. I don't know what you mean on. And then he like unwounded. But you know what?
1:44.3	You've been,
1:44.8	this is not new, right?
1:45.9	You've been saying.
1:46.5	Oh, put these on, right?
1:47.1	You've been saying something like this.
	...

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