Pretty solid day in the market today. Assalamu alaikum, everyone. Today is Friday, October the twenty fifth. And if you are a member, your portfolio should be doing pretty darn well today. Looking at the major indices. We are down a bit on the Dow Jones. We are up a bit on the Nasdaq one point two nine percent. On the S&P, we're up half a percentage point, point five, four percent. The Russell is up point two, four percent. Looking at Tesla continues to beast upwards. We're now at two sixty seven. We're up about fifty dollars in the last forty eight hours. Nvidia is up today. Two point one seven percent. Bitcoin miners are doing pretty decently. Iris Energy, for example, is up two point six percent. Hems continues to be a beast for us. Printing money along the way. PLL is down. Oklo had a good day. I think it's being supported by shorts getting burned up today, seven and a half percent. Enphase is up three percent. gold at twenty seven hundred down a smidge bitcoin is at sixty seven thousand seven hundred doge is at thirteen and a half sold as one seventy two and decker's something that hit my radar a stock that hit my radar we'll talk about it in today's live it hit my radar a while ago I I saw people wearing their shoes and I was interested I never ended up pulling the trigger because I'm not really a shoe company investor guy. I like things that have more of a moat beyond just a brand, but it's working for this stock and it's working in a big way up today. We'll talk about that stock in case you're interested in it and I'll give you my two cents on it. By the way, if you are enjoying these lives, do leave a like. I really appreciate it. And likes help other people see the live. So it helps us grow as a channel. So do leave a like if you think the live is deserving of one. I really appreciate that. As-salamu alaykum to everyone in the chat. It's nice to see you all. Jum'ah Mubarak. Make sure to remember me in your dua today. Here, let's turn on the light here. I didn't like the lighting. no are it as they say in arabic um so let's talk about the major things affecting the macro economy and basically we have the nervousness around what's going to happen in the middle east and we also have the upcoming u.s elections so according to calchi The betting odds are now sixty one percent in favor of Trump, thirty eight percent in favor of Harris. Now, if you look at the polls, the numbers are much tighter than this. But as it relates to where people are putting their actual money and and who they are betting on, Trump has the decided advantage here. We'll see if that plays out. on election day and really this will be perhaps a change in how, if this turns out to be correct and it corresponds well with the results that we get, it's going to be a change in how people predict elections in the future. The betting markets will be an increasingly influential indicator to more so than polls, which have traditionally been what we relied on. The betting markets will take their place in terms of guiding people to what the future may hold. Now we got some big news on Bitcoin. Bitcoin's still stuck here, guys. It's at an elevated level historically, but I think we're still below where we should be absent the near-term headwinds. And the tailwinds for this asset continue to build. And so I really think that eventually when this asset breaks out, it's going to break out in a big way. So don't blink. And one of the tailwinds that is supporting this asset is consideration by institutions the largest institutions in the world, the largest companies in the world, governments, consideration of Bitcoin as a reserve asset in their treasuries. And the latest comes from Microsoft. So shareholders have put forth a suggestion for Microsoft to consider holding some Bitcoin on its books in order to diversify its treasury. And really the statement, the supporting statement in favor of this motion is really interesting to read. I encourage you to do so. So some excerpts from this supporting statement include the fact that MicroStrategy, which like Microsoft is a technology company, but unlike Microsoft holds Bitcoin on its balance sheet, has had its stock outperform Microsoft by three hundred and thirteen percent, despite doing only a fraction of the business that Microsoft has. And they're not alone. The institutional and corporate adoption of Bitcoin is becoming more commonplace. Microsoft's second largest shareholder, BlackRock offers its clients a Bitcoin ETF. And so it occurs to me that I don't know which shareholder made this proposal or which group of shareholders made this proposal but perhaps blackrock is behind it and perhaps blackrock as the second largest shareholder of microsoft has a very good idea about If Microsoft decides to hold Bitcoin, what it should use to hold that Bitcoin, perhaps it has an ETF. It can think of an ETF that may be a good selection for Microsoft to put its cash. And by the way, Microsoft has close to a seventy five billion dollars in cash. So even a small percentage of that would move the needle a lot for BlackRock's iBit ETF. And so I think that this is going to be one of many proposals by shareholders for different public companies to consider holding Bitcoin on their books. And it absolutely makes sense for them to do so, especially when you're talking about companies with large amounts of cash just sitting there like melting ice cubes doing nothing for the shareholder when they could be actually accruing shareholder value like what's happening with MicroStrategy. a lot of tailwinds for bitcoin a lot to be excited about for this asset and it's still presenting us with prices that I think are very attractive so if you're convinced with this asset this is a good time to accumulate still but it won't be I think for long Bernstein predicts two hundred thousand Bitcoin and infamous black book amid rising institutional demand. Now, if we look at this, the details here for their report, nothing really new. But what I think was very noteworthy is what they mentioned about the role of Bitcoin. one of the key insights in the report is the increasing adoption of bitcoin among institutional investors who are managing the assets liquidity and volatility risks The report suggests that institutional investors are not deterred by the high volatility of Bitcoin. Instead, they are deploying advanced risk management strategies to mitigate potential drawdowns, including adjusting portfolio allocations and liquidity buffers to accommodate Bitcoin's market behavior. So previously, the volatility of Bitcoin has basically offset the fantastic returns it has had in terms of in terms of marketing it as an attractive asset to hold for these institutions. But now institutions are saying, you know what, we have some risk mitigation strategies that we can employ that will take that volatility, make it a lot more manageable, and we can still enjoy the upside here for this asset. So in light of this, really the volatility should not deter us from holding this asset. But what I found specifically noteworthy about this report is what I've been mentioning really for a while regarding bitcoin miners and that is the compute economy and what bitcoin miners may be able to contribute to that and derive value from so bernstein's analysis shifts focus towards bitcoin's future role in what it calls the compute economy The report suggests that Bitcoin is moving beyond its traditional function as a store of value and is becoming an essential part of the global computational landscape. This involves leveraging Bitcoin's underlying blockchain infrastructure, so Bitcoin miners, for computational tasks, which could fuel advancements in technology and data processing. So when we look at the Bitcoin miners and how they've been valued by the market. It's really been a function of what do we think Bitcoin's price is going to be and how much is it costing us to mine every additional Bitcoin. But there's an added element to that valuation, which is how can we leverage the assets of these Bitcoin miners to provide compute to the compute economy, which is forming before our eyes today. And so that I think is going to be a strong tailwind for the bitcoin miners that have positioned themselves in a way to take advantage of this aspect of bitcoin mining and the compute power and the infrastructure that they've built for it so let's talk about the stock of the day decker's outdoor corporation Now, over the last year, it is up one hundred and five percent. Now, for those who are not familiar with Decker's, they make shoes, different brands of shoes. And some of their brands have become extremely popular as of late, one of them being this Hoka brand. I think I'm pronouncing it right. But if you're in the United States, you see people wearing them everywhere. Personally, I haven't tried a pair, but I've heard some really good reviews. But in my mind, I mean, it's a shoe. Shoes are shoes. I mean, it's not something to write home about. It's not something that I'm going to be thinking about or interested in. It's a shoe. But apparently, this shoe... is selling like hotcakes. And this company is doing extremely well for itself. It reported earnings yesterday. Today it's up ten and a half percent. So, you know, I saw the popularity of this shoe. I saw the company. I looked at it. But in my mind, a shoe is a shoe. And this is not really what I invest in. But the stock has been doing quite well. Now, the PE ratio at thirty, it's not cheap. We'll look at some of the other valuation metrics for it. Now, this is not their most recent quarter, so I'll skip that. I'll take you to the most recent quarter in a second. So this is the press release that they came out with yesterday. Second quarter, Fiscal year, twenty twenty five revenue increased twenty percent to one point three one billion. Second quarter diluted EPS increased thirty nine percent to a dollar fifty nine. That's really what caused the the price of the stock to shoot up. You have a EPS earnings per share that is increasing forty percent. Fiscal year twenty twenty five revenue guidance raised to approximately four point eight billion. diluted EPS guidance raised to a range of five fifteen to five twenty five. Now, five fifteen to five twenty five. The stock is trading hands at one hundred and sixty eight dollars. That's a that's a high multiple here. I wouldn't I wouldn't pay that for a shoe company. But then again, I would have told you the same thing six months ago. I would have told you the same thing a year ago. So this is something that I missed, but I'm fine with missing it. I don't have to get all of the stocks that do well in my portfolio. I just have to make sure that the ones that do make it to my portfolio are good ones and they appreciate faster than the market by a good enough margin. So, but I do want to mention it because some people, you know, investing in shoes is, uh, floats their boat. And so, uh, I'm, I'd like to help those people out and give them my take on this company. So, uh, the, the company is doing fantastic. It's obviously run in a very well way, uh, very efficient and, uh, competent way. Net sales increased twenty percent to one point thirty one billion. We mentioned that geography, they're international. So domestic net sales increased, increased. Now, here's the head scratcher. Gross margins were compared to Now, typically, when you're talking about shoes, you don't have these types of gross margins, but they've been able to command these high gross margins as a function of their brand. The risk to this is that, well, the brand value may decay and gross margins may contract over time, but so far so good for this company. They have other brands, so Hoka is one, UGG is another, and went through a phase, UGG, if you recall, UGG boots when they first came out, had its moment under the sun, Teva and Sanook. So they have other brands as well. And they appear to consistently be able to stay relevant, which is really noteworthy. Cash and cash equivalents, one point two to six billion. compared to eight hundred and twenty three million. So they have a really strong cash generation, which is fantastic. Inventories are basically the same, which is also good. So their sell through is good. And the company had no outstanding borrowing, so their balance sheet is great, their growth is great, their margins are great. This is a great company. So I think that The risk here, obviously, is that their brand decays in value and they no longer become relevant. And they're no longer as relevant as they are right now. And perhaps they're not in style. But... These things are very, very hard to predict. People's tastes and what competition does. This is extremely hard to predict. So it's not really something that you can hang your hat on like, okay, full self-driving. I know Tesla has a lead in that. No one's catching up to them. But there's not really any proprietary technology here. There is a very competent management, a very competent execution, which is... which is not something to scoff at at all. I mean, that's one of the most important elements of any company. If you look at the price to sales ratio, next twelve months, four point five, that's not cheap. But it's not unreasonable either for a company that's growing as fast as they are. Forward price earnings, twenty nine. Again, not cheap, but also not unreasonable considering their margins and their growth. It's not a company that I'm going to put money in. Unless something changes, but it is a company that, you know, if this type of investing is what you're looking for. Actually, in light of its valuation right now, I just wouldn't put money in it. I like when companies like this go through hard times or have a down quarter or for some temporary reason experience a sharp dip in price. I like to pick up then. I don't like to pick up under these circumstances. So with that, let's take some questions and answers. let you be on your way. I know many of you are, uh, still waiting to go to Jama'at. So be quick in our questions here. Nice to see you Rashad. We don't have to get them all. We'll just, uh, get, uh, some good ones in our, uh, make sure that everything that we do add to our portfolio is a good ad inshallah. Uh, and we'll do well. And we hope everyone else, uh, Two is just as well. That's just as well. Muhammad says, simple question. Can we proceed to sell or hold Tesla? I did send an update on our buy and sell prices. Check that out, Muhammad. If you're a member, if you're not a member, become a member. Thanks, Lubna. I really appreciate that. I appreciate the like. Wa alaikum salam, Abdullah. Jamal Mubarak to you. Yeah, so a way to earn money by short selling, so a halal version of short selling, that's something I think that requires some thought. So for me, halal investing, ethical investing, an ethical way to make money is not to negatively impact anyone so that's a general that's a general rule that I follow and so short selling yes you are making a bet against the company which sort of in abstract is is fine there's not necessarily anything unethical about it But it does impact the share price in a way that may or may not be justified. And it's creating artificial supply for the share because you're selling it, but you're not an owner of it. And so you're basically earning money by buying. by negatively impacting the company. And that's not something that I want to be in the business of. And there's other reasons why I think it's, you know, not halal, but it's, you know, fundamentally the idea of earning money by hurting someone is something that I'm against. And therefore the entire idea of short selling, even if you ignore the selling something that you don't own or you ignore the interest that's involved, you ignore those violations just from a a general sense or in general mood to the, uh, to the transaction, it's something that I find off putting and I just wouldn't do, but is there a way to benefit from a stock's price going down in a more ethical way, uh, beyond, you know, just selling when it's high and, you know, buying it back when it's, uh, lower. And perhaps because maybe you don't want to buy back at a lower price. Is there a way to benefit from that? I think that requires more looking into. Do you plan to create lessons for elite members about different taxation rules, for example? Yes, I do plan on creating new lessons for elite members. And we'll see where members tell us they want new lessons. And taxation is one potential topic. Oh, and Braid, assalamu alaikum, wa alaikum salam, has a topic, speaking of topics for new lessons, how to structure your assets properly. Yeah, that's a great topic, inshallah, that we'll talk about. Yeah, moving to Dubai and saving on taxes or other sort of moves that one can make. Absolutely, those are great topics. And keep them coming, by the way. For my buy and sell recommendations and buy and sell prices, take a look at our portfolios and our watch list, please. I've done long distance running in my past, including a couple of marathon. A shoe is a shoe will not be well received by the running community. That's very true. That's very true. This is my non-marathon running self saying that. So, yeah, no, I agree with that. Rashad says, Salam Erkan, do you say that this company makes money the easy way or the hard way? That's a good question, actually. The margins suggest that it's making money in a relatively easy way. And that, I mean, essentially it is, I mean, Amran, sorry to say this, but in my opinion, it's a commodity product. I mean, there's foam there's I mean there's other material but it's not like a proprietary technology that they have going and you know you can't say you know hundreds of millions of dollars and research and development went into this in order to come out with it I'm sure they'll like to claim that something like that happened but I don't think so I mean but Their margins are very good and they're making money in an easy way currently because of, I think, brand and style that they're making is very much what people are looking for right now. The question is, how long can it continue to do that? Maybe it can continue to do that for a very long time, but it's not something that I feel necessarily secure in to just... buy and have complete trust that this advantage will maintain into the future indefinitely. Walaikum salam, Tyler. Nice to see you. Azure is asking about Bitdeer. I think that Bitdeer will do well and different miners are going to run at different times. Thank you. I appreciate that. Dr. Boss says, Assalamu alaikum. Are we due for a major correction in the next few years considering the Federal Reserve is printing money into oblivion? I think the major correction could come if we have something like inflation paired with an economic slowdown. That could trigger a correction. That being said, if the Federal Reserve is printing money like there's no tomorrow, then it's also logical to conclude that assets that are denominated in this currency, which is losing value, should rise in value when denominated in that currency so the the inflationary nature of fiat makes people I think more eager eager to trade their fiat for something that can preserve their purchasing power their wealth better and so demand for assets oftentimes at higher and higher multiples is going to support asset prices. As is typical with macroeconomic analysis, you have many different factors that are impacting the price at once. And at any given time, which factor overpowers the other, it's very hard to tell. And so really the only thing you can do as an investor is just make sure that you're invested in the top one percent of assets. And that's what you should strive for. Invest in the top one percent of assets in terms of scarcity and the top one percent of assets in terms of usefulness to others. And if you do that, you're going to do well. Don't worry about the macro. It'll solve itself, inshallah. So we try and worry about the things that we can actually influence that we have some amount of control over. And the rest, you just have to say, you know what, I'm going to let Allah subhanahu wa ta'ala deal with that. I'll do what I can do and the rest Allah subhanahu wa ta'ala will deal with. And he'll deal with in the best way possible. So with that, if you enjoyed this live, leave a like, become a PIF member. If you're not a PIF member yet, until next time, make sure to take care of yourself. Oh, and for PIF members, just a friendly reminder, Sunday we'll have our PIF member meeting. I'll obviously send out a note about that as a reminder. But since I had you with me, I figured I'd mention it. Sunday, inshallah, at ten a.m. Eastern time, we'll have our PIF number meeting. So I hope to see as many of you there as possible. Until next time, make sure to take care of yourself. As-salamu alaykum and peace be upon you all.