Billionaire Of The Week: Founder Of Chewy.com

Sam Parr

Sean you and I were sent something from our friend jack steph I'll I'll fill you in so basically there's this guy named ryan cohen ryan cohen he started chewy.com which is like amazon for pet stuff when he was young right sean I think he was like in his early twenties and he was aggressive when he started it he raised a ton of money he started out of florida so he was very much like an individual thinker he was like no we're not doing silicon valley we're going to do this out of florida he raised like a $1,000,000,000 a huge sum ended up selling it for 3 4 5 6,000,000,000 I don't know the exact amount then it goes public worth many billions but after doing that he made I think around like $600,000,000 like a huge amount of money and after he made that money there was an article written where he goes I pretty much put all of my money into 2 stocks apple and wells fargo so he put like all of it in there and since that article went live that means that the money that he put in there has gone up 361% then about a year and a half ago he noticed that there was a brand that he loved that wasn't doing so well and he thought these guys can totally revolutionize the game but they're just really like getting they're getting crushed right now I'm gonna buy 10% of the company which he did for $76,000,000 and that company was gamestop and when he bought gamestop that's when this whole like meme stock thing went down because everyone was like brian cohen bought it and he actually it worked he turned the company around or at least it's in the process but it's being turned around and his $76,000,000 he turned into 1,100,000,000 and he currently still owns like 13% of the company he's on their board of directors now just this morning it was released or announced that he just bought 10% of bed bath and beyond so he's doing the same thing and this guy is a madman I think I'm almost positive he's still only 34 35 years old I also researched on linkedin I'm almost positive that it's just him like he doesn't have an employee maybe he has an assistant but it's like just him like searching around for stuff so this man's crazy and I love him

Shaan Puri

up 60%

Sam Parr

so his money's already up

Shaan Puri

yeah okay he's amazing

Steph Smith

I feel like there should be a ticker for stocks that aren't small but have fallen like **80% or more** from their highs. It's like, what crazy operators want to come in here and totally turn this thing around? I feel like you could also have a podcast about that. You just find a stock like **Bed Bath & Beyond** and you're like, "Look, the highs were at $80. It's now at... what was it before? $6?" What would you do if you were operating this business? Have people come on and battle, like **Jeopardy** style, and see who comes out with the best strategy.

Shaan Puri

That's kinda cool. Yeah, right now there's like a whole bunch of growth stocks that are down, you know, somewhere between 50% to 80% from their all-time high. Stocks like Zoom, Fastly, and a bunch of others. And there's, you know, that kind of Warren Buffett phrase: "Be greedy when others are fearful and fearful when others are greedy." It sure does seem like now is a good time to be greedy when others are fearful, right? There's a lot of opportunity everywhere in the market. So, you know, if these are things that you believe in on a 10-year time scale, then this is a fantastic entry point.

Sam Parr

Here's another interesting one. I was thinking about this Bed Bath & Beyond thing and GameStop. My friend Joe sent this to me. So, do you guys remember Express?

Shaan Puri

yeah of course I

Sam Parr

I don't know if they have that in Canada, but Express mostly sells women's clothes. It's like it was fast fashion before that was even called a thing. So, look at what their market cap is. I think their market cap is **$250,000,000** right now, but their EBITDA is **$150,000,000**. So, I think Express is an interesting one too.

Shaan Puri

yeah but you gotta look at like the debt and all all these other obligations to these things

Sam Parr

they have a they have a ton of debt yes they have a ton of debt that's the problem they've got a ton of debt

Shaan Puri

Jack was... I go, Ryan Cohen is basically doing the Tai Lopez playbook of buying old retailers and spinning them into e-commerce, sort of rejuvenating these big old brands. You know, he's doing the same playbook as Tai Lopez, just without being Tai Lopez, which is actually a great idea in general. That's a great business plan to follow. Do the Tai Lopez playbook without being Tai Lopez is like a great, great idea.

Sam Parr

When people talk about buying, like "buy the dip," I hate that. I'm like, "I don't have any money to buy."

Shaan Puri

chew the dip

Sam Parr

Yeah, that's what I gotta do. I don't know, whenever people say "buy the dip," I'm like, "With what?" I don't owe it anything. What do I do?

Shaan Puri

Well, you don't keep any dry powder. I feel like you're always Mr. "Safety" with cash and other things. You have dry powder, so why aren't you buying the dip?

Sam Parr

I have a $100,000 in cash

Shaan Puri

Oh wow, okay. I think you used to have way more in cash. Now that you're a short-term real estate mogul, you've deployed everything, or what?

Sam Parr

I've deployed everything. Yeah, I don't have that much cash. I don't have it. Boy, do people just hold, like, keep cash in a checking account?

Shaan Puri

Certainly, people do that. They do CDs and different versions of a market neutral cash position.

Sam Parr

I own bonds I own a ton of bonds 7 figures of bonds but I guess I'm just

Shaan Puri

who told you to do that

Sam Parr

it's 5% of my net worth is in bonds

Shaan Puri

Who told you to do that? Nobody buys bonds on their own. Everybody gets told to buy bonds.

Sam Parr

My portfolio is 90% equities and 10% bonds. You don't... wait, do you own a bond?

Shaan Puri

I don't own a single bond

Sam Parr

steph do you

Steph Smith

I don't own a single bond, really. But I feel like Sean's right. What rate are you getting on these bonds? Aren't interest rates at like 0%?

Sam Parr

yeah nothing like 2% yeah you're losing money just like traditional

Shaan Puri

yourself into a money losing position congratulations

Sam Parr

Well, actually, that's a good question. With havoc going on right now, Sean, from 1: Is your net worth down from one year ago today, assuming you did not add any new cash?

Shaan Puri

Yeah, for sure. One year ago was like a market high, right? If you're talking about right after the COVID bounce. So, like, let's say the COVID crash and then the COVID recovery all happened in like a 3-month or 6-month period. Basically, if we take the all-time high from last year to today, I gotta be down 25-30%. Easily, easily 30%.

Sam Parr

I would have thought it would would have been a lot more because of you have more high risk stuff

Shaan Puri

Yeah, but like a lot of my stuff's in Amazon stock, and Amazon stock has done fine. You know, it's down a little bit, but that one's not so bad. I would say that's a pretty large position, so that's not super risky in my opinion. And you know, crypto's down over 30% to 35% from last year for most of it. But I have a few altcoin bets that have done really well. So, like I was on here talking about Luna not long ago. Luna's up 100%, so it's like, you know, that doubled while other stuff went down 30%. So it's okay, you know, we do alright.

Steph Smith

But Sean, where's your psychology at? Because I feel like, you know, everyone knows the strategy: "Yep, buy low, sell high." But when this actually happens, when all your stocks or all your investments go down, it's like so hard to maintain that psychology and be like, "Oh yeah, I'm totally gonna put more money in the market." So, are you like, is your conviction still as strong as it used to be? Are you like, "Yeah, this is awesome, I'm gonna buy the dip," or are you struggling?

Sam Parr

Quick interruption! Do me a favor: scroll down, and you're going to see a link to **The Hustle**. If you want to stay up to date on the tech and business news you need to know, check out **The Hustle**. It's a daily email. I used to help write it, and I love it, so check it out! Scroll down below. Let me guess... don't talk, Sean, don't talk yet. Okay, I have a feeling that this means nothing to you and you're totally cool about this.

Shaan Puri

It's actually even better. I don't even look at it because I'm like, "Oh, why would I look? It's just going to be down." So, I just don't look, which means I don't think about it. This is actually the correct way I should have been doing it altogether. Waking up and seeing green put a lot of nice little pep in my step, but it was sort of this false positive. Now, I just don't look because I'm like, "Oh yeah, of course I'm down 5% again today." It's like, "What? I just lose 5% every day or 2% every day?" That's just an average day now. So, I just don't even look at it. Because I'm not looking at it, it doesn't matter. I wasn't selling when it was going up, and I wasn't not selling when it was going down, so it doesn't really matter the day-to-day fluctuations. Now, I just get some time back because I don't want to go look at it; I don't want to see any carnage. So, I'll just kind of ignore it and go about my day. You know, I kind of pause and ask myself, "Has anything changed?" Meaning, do I view these investments differently now? Do I no longer believe that these are good investments to be in over like a 5 to 10 year period?

Shaan Puri

No, okay, so then you know what? Am I thinking about... there's nothing, nothing to think about essentially at this time. Do I buy the dip? That's one where, you know, sometimes I do like to just chill. I just like to sit on the sideline for a bit because I'm pretty... I've spent a lot of time in my life gambling. I literally played a lot of poker. A lot. I've spent so many days in a casino. So I know the feeling of chasing a loss, trying to win it back. And I just like to make sure that I'm not doing that. There’s a difference between buying the dip and chasing a loss, you know, throwing good money after bad. So I'm just trying to differentiate between the two. Am I on tilt, or do I actually believe that this is a good entry? And, you know, whatever else. So I would say the one thing this does do is it heightens my focus on earning money because, like, oh, I need to earn money. I can't just rely on my investments completely. So, you know, I got off my ass, I taught my course, and I submitted my invoice for the podcast. I do things that will bring cash in because otherwise, you know, it's easy to get lazy when everything's just going up so much. There are many days where you could just look at your portfolio and be like, "Wow, that was a whole year's worth of salary just today." That kind of makes you lazy to do the work that day, in a way, right? Because it's like, "Oh, well, if this could earn that much money just doing nothing every day, why do I need to go hustle for that next dollar?"

Sam Parr

I feel you

Steph Smith

I feel like a lot of people are feeling that way. They're like, "Oh right, I have to work. This doesn't last forever."

Shaan Puri

very healthy very healthy position to be in