Warren Buffett has criticized present-

day markets, saying it's hard to find

value when everyone is gambling. My next

guest says value investing still has a

place in today's investing world as the

key to unlocking value is patience.

Let's bring in Tyrone Ross, Jr., CEO of

401 Financial. Always good to see you,

Tyrone. Um, and so, you know, when when

Warren Buffett talks, we tend to listen.

And you know, he has been on record. I

mean, he gave an interview this week in

which he reiterated these comments, but

he he's talked a lot in recent years

about what he calls the casino-like

atmosphere that he thinks has come to

equity markets. I mean, you deal with a

lot of um you know, younger clients. How

do they how do they feel about value

investing? Do they see it as something

that is sort of outdated?

>> They do. I think value investing is

something that needs more education. And

I think there are a lot of young

investors that have a lot more options

that older investors didn't have and is

chasing the next shiny object

unfortunately. Um, and if every firm has

a brokerage now, they're rolling out

some type of prediction market or some

type of, you know, perpetual decks to

trade and futures. It's it's insane. So

yeah, I think value investing still has

a place, but I think it's incumbent upon

fiduciaries to educate a new generation

or what that means to find value um and

have some patience and hold long term.

>> I mean and and Buffett has also said,

you know, it's tough for him to find

value in the market. I mean, certainly

we've seen that because um Bergkshire

Hathaway has not been deploying as much

capital in recent years. So So how do

you look for it? How do you advise

clients to look for it?

What we've done actually is started to

again educate clients on what value

investing is. I think 12% over the last

5 years or so. So definitely not going

to excite grandma at Thanksgiving. But I

think we've also started to look

overseas um expose clients to VT which

is a mix of all the the companies here

and globally to kind of start to show

them investing beyond our shores and try

to find value outside of US markets

which we feel is fairly valued right now

pretty rich if you will but that's

really it is more of an education it's a

conversation and not what is the next

thing that's going to go up 100% in the

next six months

>> right um and on the flip side of that

you have like the casino like atmosphere

in stocks and then you have like actual

casino when you're talking about

prediction markets, right? And something

I was thinking about this morning,

Tyrone, um it was so interesting when

like crypto got to the acceptance level

enough that you had folks like you um

coming in from the advisory side um

saying like you want to allocate x% of

your portfolio to this. Are we at a

point where you would do that for

prediction markets? like do your clients

come because you want to limit the risk

right so are is that a conversation that

you're having at all

>> it's not a conversation that we are

having and I don't think it's a

conversation uh financial advisor should

be having right now um obviously listen

what clients want to do away from the

advisor they should let their advisor

know but I think it's also prudent upon

financial adviserss to say what is the

right thing to do in the scope of a

client's long-term goals and and just

what's just pure gambling and I don't

think any adviser, any fiduciary for

that matter wants anything to do with

gambling. Um so yeah, I think it's it's

tricky here. We don't discuss it. We

haven't had the opportunity to and if it

if we did, I would express the

sentiments that I just shared with you.

>> Gotcha. No allocation towards to towards

gambling. Um that makes sense. Um that

said, you know, he I think Buffett too

has talked about crypto as gambling,

right? Um and so as somebody who is

steeped in the crypto world, h how do

you think about that?

>> Well, this is the part where the

audience goes hypocrite. Now he's about

to [laughter]

>> um so it's very similar in this regard.

If you are a short-term trader and you

are trading crypto, to me, yes, that is

gambling. Um, long-term investing on any

asset class to me has a plan. There is a

process of when to get in and get out.

And crypto as a new and novel asset

class falls into that bucket. Now, folks

would still argue, well, it's new and

novel. There's not a lot of track

record. There is gambling yet, but I

could say the same thing in equities as

well. So, I think long-term being, you

know, very constructive on your views of

why you're investing, when you're going

to get out, making sure your financial

plan is in place. I think crypto has its

place as a long-term investment, but

anything that you're going to trade with

the hopes of getting rich quick will be

and should be considered gambling.

>> Um, and finally, I I want to ask you

about your how you're thinking about

Bitcoin prices right now because we've

seen them kind of bump along the bottom

here. Um, what are you hearing from

clients? Are you know, are they um sort

of true believers or at least patient

enough that they're going to hang on

through this?

Yeah. So, again, our clients, like us,

tend to be crypto hippies. They're true

believers. They're not going to leave. I

personally believe that we go lower and

a lot lower. Um, I don't know when, and

I don't know what that catalyst will be.

It could be the Clarity Act not getting

passed. I don't know. But I do think

we're not out of the woods yet. And I

think that's a good thing for the space

long term. I think so long as Bitcoin

kind of hangs out above $60,000, that's

not good long term. I'd love to see us

go scrape the bottom at 3540,000, wash

out all of the excess and crap that

doesn't belong, and then I think we can

start to push higher when you start to

see all of the major announcements and

things that are happening now. Um, those

announcements usually happen right at at

the, you know, in in a bull market, if

you will, that is really roaring. But to

see some of these announcements in a

bare market, you can see it's going to

be the tide that turns the hand when we

go higher. But yeah, we we're going to

we we can and should go lower. And I

think that'll be accretive for the

space.

>> Are you and clients adding here? Are you

waiting for that further drop?

>> Well, we we tell folks the dollar cost

average, right? So, they'll, you know,

average in on the way down. But, yeah, I

think I I mean, personally, I again, I

would it needs to go lower. I'm backing

up the truck. I might sell this couch

behind me. But, um, but we do have

clients actively and constructively

getting in, um, in relation to what

their other goals are. But yeah, this is

the with you know being down 50% or so

off the highs, it is good to accumulate

a position here and continue to dust

dollar cost average in

>> Tyrone. Good to see you. Thanks so much.

Thank you for having