Transcript
0:05 >>> THAT MUST BE FOR YOU. OKAY, HERE WE GO. >> GOOD TO SEE YOU. HELLO, EVERYBODY. WELCOME TO TALKS AT GS AND I'M PLEASED TO WELCOME EVERYONE WHO'S WATCHING ON YAHOO FINANCE. AND TO INTRODUCE OUR GUEST TODAY PAUL TUTOR JONES. WE WORKED TOGETHER FOR A NUMBER OF YEAR ONS VARIOUS MATTERS. I'M SHAUR THAT WILL COME UP. PAUL WAS BORN AND RAISE D IN MEMPHIS, TENNESSEE, SO THE ACCENT IS QUH YOU KNOW HAS WORKED VERY K VERY WELL FOR HIM.
0:38 NOT A PUT ON. >> STILL HERE. >> IN 1980, FOUR YEARS AFTER GRADUATING FROM THE UNIVERSITY OF VIRGINIA, JUST FOUR YEAR, HE WENT FROM TRADING COTTON FUTURES TO HIS OWN TRUST FUND. IN 1988, HE FOUNDED THE ROBINHOOD FOUNDATION, A NON-PROFIT DEDICATED TO ALLEVIATING POVERTY IN NEW YORK CITY AND IN 2013, HE COFOUNDED JUST CAPITAL. A NON-PROFIT DEDICATED TO BUILDING A MARKETPLACE THAT BETTER REFLECTS THE PRIORITIES OF THE AMERICAN PEOPLE.
1:11 NOW THAT IS SOME SKETCHY THING AND A LOT TO FILL IN IN BETWEEN. AND SO LET'S JUST START AND I THINK THE FIRST, THE FIRST THING I WANT TO ASK FOR THE BENEFIT OF PEOPLE HERE AND A LOT OF YOUNG PEOPLE HERE IN THE EARLY STAGES OF THEIR CAREER, YOU GET OUT OF SCHOOL YOU KTRADE COTTON. >> WENT TO WORK FOR E.F. HUTTON. >> SOUNDS SO CONVENTIONAL. NO ONE HERE GETS THE JOKE.
1:43 THERE WAS THIS GREAT COMMERCIAL WHEN E.F. HUTTON TALKS. IT WOULD BE LIKE A FLASH MOB. EVERYBODY LISTENS. >> LIKE SUPERMAN CHANGING IN A PHONE BOOTH.pWHAT'S THAT. PHONE BOOTH. SO YOU GO ON THE FLOOR, COTTON FUTURES. VERY ROUGH AND TUMBLE. YOU DO WELL. TELL ME HOW DID YOU BECOME WHO YOU ARE? >> WELL, IT'S FUNNY, I GOT TO BE A TRADER. PROBABLY BECAUSE WHEN I WAS REALLY, REALLY YOUNG I WAS A GAME FANATIC.
2:17 I PLAYED EVERY SINGLE GAME THERE WAS. MONOPOLY. LIFE. PARCHEESE. POKER. I USED TO PLAY HOURS OF SO Y SOLI SOLITAIRE. >> VERY COMPETITIVE IN SOLTAIRE. >> EVERYTHING. GOSH, THERE'S A LOT OF THINGS I CAN SAY, BUT GOSH, I WON'T. THANK GOD I SEE THE HEAD OF MY, THE HEAD OF MY INVESTOR RELATIONS HERE IS GOING YOU CALL.
2:49 THIS IS A PUBLIC VENUE. DON'T BE YOURSELF. >> YES, WHATEVER YOU DO -- WHATEVER YOU DO, DON'T BE YOURSELF. >> SO ANY WAY, I PLAYED A WHOLE BUNCH OF GAMES. CHESS. WHEN I WAS WOLDER, I WAS THE BOOKEE IN OUR FRA TTERNITY, SO HAD BY THE TIME I GRADUATED FROM COLLEGE, I ALREADY HAD PROBABLY AT LEAST A MASTERS IN PROBLEMISTIC THEORY. SO WHEN I WAS IN COLLEGE, I HAD NO IDEA WHAT I WANTED TO DO OTHER THAN DRINK BEER AND THAT I WAS EXTRAORDINARILY GOOD AT.
3:27 SO I THINK IT WAS FEBRUARY OF MY SENIOR YEAR, THE GUY THAT I INHERITED THE BOOK FROM SAID TO ME, OH, MAN, HIS NAME WAS BOB WILSON OF WILSON, OREGON. HE SAID, YOU GOT TO TRY THE SOYBEAN FUTURES. I'M BACK AND WE'RE HEDGING UP. THEY HAD A HUGE PLANTATION AT THE TIME IN ARKANSAS. WE'RE HEDGING UP OUR SOYBEAN CROP AND THIS MAKES FOOTBALL CAMP.
4:04 THEN THAT WEEKEND, I READ A STORY ON A GUY NAMED RICHARD DENNIS. THE BIGGEST LOCAL AT THE BOARD OF TRADE. HE USED TO SAY THAT HE DID HIS BEST TRADING WHEN HE WAS HUNGOVER BECAUSE THERE WAS NO EMOTION. I THOUGHT, HMM, THIS IS STARTING TO GET CHOSE TO WHAT I'M CULTURALLY PRETTY GOOD AT. IT'S SO FUNNY, WHAT I FOUND IN LIFE, I WAS HOME LAST NIGHT. MY KIDS WHO ARE 21 AND 28, AND WE LISTENED TO A COMMENCEMENT ADDRESS FROM STANFORD THIS YEAR.
4:36 FIRST NAME WAS STERLING. THE BLACK ACTOR ON THIS IS US. WHAT'S HIS LAST NAME? STERLING BERRROWN. HE SAID THE TO A HAPPY LIFE IS NOT TO HAVE A CAREER OR A PROFESSION OR TO WANT TO GO DO THIS, BUT TO HAVE A CALLING. SO FOR ME, I THINK IN EVERYTHING I'VE DONE, SOMETHING'S DRAWN ME TO IT RATHER THAN ME THINKING GEE, I'VE GOT TO GO THERE.
5:06 I THINK A REALLY PROFOUND CONCEPT. THAT LET LIFE PULL YOU IN THE DIRECTION THAT JUST COPS NATURALLY AND YOU'RE GOING TO FIND THAT PERFECT INTERSECTION OF PURPOSE AND HAPPINESS. SO NOW JUST, WHEN YOU WERE CONTRACTING, WERE YOU A LOCAL? ZBLI STARTED OUT ON THE FLOOR. >> AS A -- NOT THAT ANYBODY KNOW WHAT IS THIS MEANS ANYMORE. >> THAT'S ACTUALLY A REALLY INTERESTING POINT. BEING A LOCAL BACK THEN.
5:38 >> THESE ARE FIEMME WHO STOOD IN PITS AND EVERYBODY SAY THE MOVIE TRADING PLACES AND THEY WAVE THEIR ARMS. >> SO THAT ACTUALLY IF K I THINK BACK, THAT MIGHT BE THE BIGGEST MISS THAT I HAD IN CAREER. STASRTED OUT WORKING AS A BROKE AND BACK THEN, IT WAS GREAT. 21 YEARS OLD. TO COME IN, TAKE THE SERIES B SEVEN. IT TOOK TWO WEEKS TO STUDY AND PASS IT. THEN THEY HAND YOU BACK THEN, THEY HANDED YOU AT LEAST IN THE COMMODITY DIVISION OF E.F. HUT TON, GAVE ME A BOOK ON TECHNICAL ANALYSIS.
6:18 STOCK TRENDS BY McGHEE AND EDWARDS. TOLD ME READ THAT. I READ IT. READ IT AGAIN. I READ IT. GO HEM, READ IT AGAIN. I READ IT. HE GOES YOU'RE READY THE TRADE. YOU'RE READY TO OPEN ACCOUNTS. SO I'D SAY WITHIN FOUR WEEKS, IFGS TRYING TO TALK MY PARENTS FRIENDS INTO OPENING ACCOUNTS AND LETTING ME TRADE. AT 21, IT WAS LITERALLY HILARIOUS. THAGS HOW I STARTED. ULTIMATELY AS I STARTED TRADING THESE ACCOUNTS, THE GUY THAT I WORK FOR THAT ORIGINALLY HIRED ME WAS THE GREATEST SPECULATOR IN THE WORLD.
7:01 HE SENT ME TO NEW YORK CITY I GUESS I WAS UP HERE FOR SIX MONTHS WORKING ON THE FLOOR. THEN I WENT BACK TO NEW ORLEANS. THAT'S ANOTHER LONG STORY. CAME BACK TO NEW YORK. DURING THAT PERIOD OF TIME, I ENJOYED SO MUCH THE INTERACTION WITH ALL MY CUSTOMERS. I REALLY, REALLY, I'VE ALWAYS BEEN I THINK A SOCIAL PERSON, SO I ENJO IED THAT SO MUCH. WE WERE MAKING MONEY AND TALKING TO THEM ALL THE TIME.
7:27 THEN I REALIZED I COULD DO SO MUCH BETTER IF I JUST TRAYED FOR MYSELF BECAUSE THE COMMISSIONS BACK THEN WERE AND THIS IS GOING TO MAKE YOU REALLY EXCITED. $90 A CONTRACT. CAN YOU IMAGINE THAT? >> TRADE 40,000 FOR $90 TODAY. I REALIZEDIC GO TRADE FOR MYSELF AN CLEAR EVEN THEN CLEARING 30 OR 40 CENTS A CONTRACT. I STARTED DOING THAT FOR MYSELF I DID REALLY K REALLY -- >> YOU WERE SUCCESSFUL IN THE START?
8:01 ZPL PRET THETY MUCH. I HAD TWO PHENOMENAL LEARNING PERIODS WHERE I LOST EVERYTHING. LIKE I HAD $10,000 AND WENT DOWN TO ZERO. THEN I MADE BACK LIKE $20,000 AND THEN WENT DOWN TO ZERO. AND I REMEMBER -- >> ARE YOU JUST USING THESE LOW NUMBERS SO WE CAN ANSWER? >> WHEN YOU'RE 22 YEARS OF AGE AND IT'S 1978 OR '89, A LOT OF MONEY. I REMEMBER MY FATHER COMING TO ME ON THE THIRD TIME AND SAID, YOU'VE GOT TO GET IN SOMETHING SAFE LIKE REAL ESTATE.
8:40 I SAID NO. I'M GOING TO SKIK WITH THIS. THE REST IS HISTORY. I I GUESS THE POINT WAS I GUESS BY 1980, I WAS DOING PRETTY WELL. IN 1980, MY FATHER CAN'T GOING YOU'VE GOT TO DO SOMETHING RESPECTABLE. SO I APPLIED TO HARVARD BUSINESS SCHOOL AND I GOT IN. I WAS THINKING, OKAY, I'M GOING TO GO UP THERE AND WHAT IS THIS PLACE GOING TO TOOEP TEACH ME?
9:11 I WAS PROBABLY MAKING A COUPLE MILLION BUCKS A YEAR TRADING MY OWN ACCOUNT, WHICH WAS A FORTUNE BACK THEN. THE WEEKEND BEFORE I WAS SUPPOSED TO GO, I WAS LOADING UP THE U HAUL TO DRIVE TO BOSTON AND JUST SAID, THIS IS DEVIL RAYS I S. THEY'RE NOT GOING TO TEACH ME ANYTHING ABOUT THIS AND THIS MAY DISAPPEAR. SO I NEVER WENT AND CONTINUED TRADING. >> BACK TO THE POINT. THE ONE THING ABOUT TRADING FOR YOURSELF, I GOT SO LONELY.
9:43 BACK THEN, CLOSED AT 3:00. I'D GO HOME, I'D DO MY CHARGES AND STUFF, GO HOME AT 4:30, WATCH "STAR TREK." IT WAS FINANCIALLY FULFILL, BUT UNFULFILLING IN EVERY OTHER WAY. >> NOT THE INTELLECT AT SATISFACTION OF TALK TO THE OTHER LOCALS. THAT WAS WHEN I ENDED UP BEING THE GREATEST MASS EXTINCTION IN MY LIFETIME. THAT WOULD BE MY ONE BIGGEST, IF I HAD ONE REGRET, IT WAS, THERE WERE PROBABLY 100,000 PEOPLE LIKE ME.
10:25 IF YOU THINK ABOUT THE '80s. FLOOR TRADERS. >> ECOSYSTEM WAS BIG. >> ENORMOUS. AND IT PROBABLY SUPPORTED I WOULD SAY SOMETHING IN THE NEIGHBORHOOD OF FIVE TO $10 BILLION IN PROFITS, NOT EVENLY DISTRIBUTED. CERTAINLY NOT, BUT OVER THAT ECOSYSTEM. AND THEN ALONG CAME ELECTRONIC TRADING. IT WAS REALLY INTERESTING BECAUSE THERE LITERALLY WAS A MASS EXTINCTION OF ENTIRE PROFESSION AND IT HAPPENED SO SLOWLY AND INKRE MENTALLY THAT NO ONE EVER SAW. THE IT WAS REALLY KIND OF A PRECURSOR OF WHAT'S HAPPENING TODAY AND SINCE THAT, WE TOOK ALL THOSE PROFITS, WHICH WERE BEING DISTRIBUTED IN AN EGALITARIAN FASHION OR CERTAINLY SOME KIND OF FASHION THEN WE COMPRESSED THEM AND I WOULD SAY THERE'S PROBABLY THREE OR FOUR FIRMS.
11:16 RENAISSANCE WOULD HAVE BEEN ONE AND DE SHAW. THOSE COMPANIES REALLY TOOK THAT ENTIRE PROFIT STRUCTURE OR THAT ECOSYSTEM. >> INEFFICIENCY THEY WERE GETTING PAID FOR, WHICH WAS F JUST KIND OF AN INEFFICIENCY AND BURDEN ON A MARKET, JUST WENT TO A DIFFERENT PLACE. >> ONLY SHIFTED. I WOULDN'T CALL IT INEFFICIENT. JUST A TRANSACTIONAL NATURE OF BEING A LIQUIDITY PROVIDER. TO SAY BEING AMONG IS,000 PEOPLE.
11:46 THAT WAS THE POWER. THAT WAS THE POWER OF THE COMPUTER. RIGHT? AND SO FACING TO TODAY AS THE ECONOMY CHANGES AND MORE AND YOU'RE SEEING THAT WITH THIS MASSIVE INCOME STRATIFICATION, SO, AS THE PEOPLE WHO HAVE THE SKILLS ARE ABLE TO DO AT SCALE WHAT IT USED TO TOOK, TENS, HUNDREDS OF THOUSANDS OF HUMANS TO DO.
12:17 >> WE CAN SEE THAT NOW. YOU HAVE UBER DISPLACED TAXI DRIVERS. SO THE VALUATION OF UBER, WHICH 50, 60, WHATEVER YOU THINK IT'S WORTH, IS VALUATION THAT AT ATTACHES TO HOW MANY VENTURE CAPITALISTS VERSUS HOW MUCH HUNDREDS OF THOUSANDS OF TAXI DRIVERS THAT DON'T HAVE AN McCAIN. ANOTHER FORM. JUST AN EXAMPLE THAT REPEATS OVER AND OVER. ON THE OTHER HAND, THAT ECOSYSTEM THAT USED TO BE ON WALL STREET, YOU MIGHT AS WELL PUT IN SPECIALIST SYSTEM.
12:49 JUST TO GO, YOU START YOUR HEDGE FUND. TO 1987. >> THE CRASH OF '87 WAS REALLY INTERESTING. JUST BECAUSE THE CRASH PROBABLY NEVER WOULD HAVE HAPPENED ECK SEPTEMBER FOR AGAIN THE MARKET INFRASTRUCTURE AT THIS POINT IN TIME. I REMEMBER I STARTED OUT TRADING COMMODITIES, SO FOR 120 YEARS, ALL COMMODITY FUTURES HAD LIMITS.
13:24 I REMEMBER SO MANY TIMES IN THE LATE '70s, EARLY '80s, THE COTTON MARKET OR SOYBEAN MARKET WOULD BE LIT UP BECAUSE THAT WAS THE ALLOWABLE MARKET. THEY WOULD NOT LET THEM GO ANYMORE. THEY KNEW THE RATIONALITY OF HUMAN NATURE AND THE POSSIBILITY OF WHAT A MOB CAN DO TO ANYTHING. SO THEY HAD LIMITS. NOW FINANCIAL FUTURES COME ALONG. HERE'S A FUNNY STORY. YOU KNOW I TRIED TO WORK FOR GOLDMAN IN 1984.
13:58 WHEN Y'ALL WERE FIRST STARTING, FIRST THINKING ABOUT FUTURES AND THEN THAT'S, FUTURES NOW. >> NOT GOING TO DO THAT. >> I DIDN'T GET A JOB AT MANN. J AARON WAS BOUGHT BY GOLDMAN. WHAT IS IT WITH THESE GOLDMAN GUYS. STUCK UP INCREDIBLY. >> SO '73, THERE WERE NO LIMITS.
14:31 NO LIMITS ON ANY FINANCIAL FUTURES. IT WAS AN ABSOLUTE ACCIDENT WAITING TO HAPPEN. THEN STAY STARTED PORTFOLIO SNURNS. IN '87, YOU CAN LOOK ON A HISTORICAL METRIC AND SEE THE STOCK MARKET WAS STUPIDLY OVERVALUED. TEN-YEAR RATES WERE TEN AND A HALF PERCENT.
15:02 500 BASIS POINTS. WOULD HAVE TEN-YEAR RATE, SEVEN AND A QUARTER AND SEVEN AND A HALF. WHEN THE MARKET BROKE, THE ONE THING I'D SAY I'VE LEARNED THE PAST FOUR YEARS IS THESE PRICE PATTERNS AND WARS, SO OFF AND JUST WITH DIFFERENT TIMES.
15:32 AND I KNEW FOR A FACT IF AND WHEN IT BROKE BECAUSE OF THE DERIVATIVE STRUCTURE THERE WERE NO LIMITS ON FUTURES. I WOULD LIKEN IT TO THIS PAST BREAK. WAS IT A 7, 8% ONE WEEK? YOU HAD ALL THE SHORT VICKS STRUCTURES.
16:03 THAT WAS JUST A BOMB READY TO EXPLODE. JUST A MATTER OF TIME. THAT ENTIRE BREAK IN THE FIRST WEEK OF FEBRUARY WAS ALL DERIVATIVE INSPIRED. AND IF I THINK OF SOME OF THE GREATEST FINANCIAL CRISIS OF THE LAST 30 YEARS, THEY GENERALLY SPEAKING, ARE DERIVATIVE INSPIRED BECAUSE THAT'S WHERE ALL THE LEVERAGE IS. >> YEAH. >> AND SO I CAN'T HELP BUT ASK YOU SEE, WELL, YOU MADE SOME ASPECTS ANALOGOUS TO THE CURRENT POSITION. NOT THAT BAD, THE RETURN, THE DIVIDEND VERSUS INTEREST RATE ISN'T WHERE IT WAS.
16:40 YOU SEE A LOT OF XEXCESSES IN TE CURRENT MARKET. >> I THINK RIGHT NOW, WHEN YOU LOOK AT ANY ASSET PRICE, YOU HAVE TO BE THINKING THAT THIS IS A HEAVILY DUBIOUS SUSTAINABLE PRICE. I SAY THAT FOR A COUPLE OF REASONS. ONE FIRST AND FOREMOST, I DON'T THINK MONETARY POLICY THE WAY IT'S CURRENTLY CONDUCTED IS SUSTAINABLE OVER TIME. WE HAVE IF YOU THINK ABOUT JUST HISTORY. HISTORY IS THE NORMAL REAL TEN-YEAR RATES, 200 BASIS POINTSEN AND RIGHT NOW, WE'RE PROBABLY MINUS 30 OR 40.
17:18 THE NORMAL REAL SHORT-TERM RATES, 100 TO 120 BASIS POINTS. PROBABLY NEGATIVE 40 RIGHT NOW. SO CLEARLY, INTEREST RATE POLICY IS CRAZY. LIKE IF YOU HAD JUST PARACHUTED AND SAY WE HAVE 3.8% UNEMPLOYMENT. 2.8% CPI, WHAT ARE RATES, JUST 4.5, 5, SOMETHING LIKE THAT. SO YOU KNOW RATES ULTIMATELY ARE NOT SUSTAIN BABLE BECAUSE ULTIMATELY, LIKE THE LATE '60s, WE HAD OPERATION TWIST IN THE '50s OR '60s AND HAD LOW REAL RATES THEN EVERYONE KIND OF '60s GOT USED TO ZERO RATES.
18:01 ZERO REAL RATES AND THAT SET US UP FOR THE '70s. I THINK WE'RE DOING THE SAME THING AGAIN. SO I DON'T THINK MONETARY POLICY IS SUSTAINABLE AND CLEARLY FISCAL POLICY, ARE YOU KID DING ME? WE'RE GOING TO BE FOUR THIS YEAR. ADD A HALF OF PERCENT EVERY YEAR FOR THE NEXT FIVE OR SIX YEARS. BE AT SEVEN IN THREE YEARS. THAT'S NOT SUSTAINABLE. SO YOU LOOK AT PRICES OF STOCKS, REAL ESTATE, ANYTHING. YOU KNOW IN THE LONG RUN THAT WE HAVE TO GET BACK TO SOME TIME HAVE TO REVERT BACK TO A NORMAL, REAL RATE OF INTEREST WITH A NORMAL TERM PREMIUM THAT'S EXISTED FOR 250 YEARS.
18:40 WE'RE GOING TO HAVE TO GET BACK TO THAT. WE'RE GOING TO HAVE TO GET BACK TO A SUSTAINABLE FISCAL POLICY. THAT PROBABLY MEANS THE PRICE OF ASSETS GO DOWN IN THE VERY LONG RUN. NOW, THE SHORT RUN, YOU KNOW -- >> FIRE. >> JACKED UP READY, READY TO GO. >> FLARE. >> THAT'S RIGHT. YEAH, IT'S, IT'S KIND OF AMAZE, BUT IT'S YOU KNOW, POURING LIGHTER FLUID ON AN ALREADY LIT FIRE. TWO PRONGS.
19:12 ONE, IT FLARES, THE OTHER PROBLEM IS YOU DON'T HAVE THE LIGHTER FLUID LEFT WHEN YOU NEED IT. SO JUST IMAGINE THE RECESSION COMES. >> WHAT DO YOU DO? OH MY GOD. IT'S GOING TO BE INTERESTING. THEY'RE GOING TO, THIS WILL BE -- >> WHERE ARE YOU GOING TO BE WHEN THAT HAPPENS? >> HOPEFULLY, I'LL HAVE BEEN REALLY SHORT. SO THAT'S A VERY GOOD QUESTION. THE NEXT RECESSION'S REALLY FRIGHTENING BECAUSE WE DON'T HAVE ANY STABILIZERS. WE'LL HAVE MONETARY POLICY, BUT WE DON'T HAVE ANY FISCAL STABILIZERS.
19:46 IN 2000, THE LAST TIME WE WERE AT 3.8% UNEMPLOYMENT, WE HAD A 2.5% BUDGET SURPLUS. >> I GUESS THE HOPE IS FROM THE GUYS WHO ARE PUTTING OUT THE POLICY IS THAT THE RATE OF GROWTH GROW TOG AS TO A POINT WHERE IT JUST SOLVES THE B PROBLEM. SEEMS LIKE A TRECH, BUT THAT'S -- >> I HAVE TO SAY IT FOR EQUAL -- >> YOU COULD HAVE SAID THAT TO ME WHEN REAGAN WAS PRESIDENT.
20:18 >> WE GO THROUGH YOUR CAREER AS A TRADER. BUT YOU HAVE ANOTHER CAREER SIMULTANEOUSLY, WHICH I'D HAVE SO SAY YOU ARE VERY, VERY FAMOUS IN A NARROW PLACE, BUT HAVE HAD A MUCH BIGGER EFFECT ON PEOPLE IN YOUR OTHER CAREER, WHICH IS THAT OF A FILL AN THROW MISS. THAT'S A HIGH PHA LUITEN EXPRESSION EXCEPT YOU STARTED BEING THAT AROUND THE SAME TIME YOU STARRED YOUR FIRM. MAYBE EARLIER. I BROUGHT UP TO YOU THAT I REMEMBER ATZ AT TIME, IT WAS THIS NOVEL IDEA THAT WHO'S THE PERSON ORIGINATED -- I HAVE A DREAM.
20:54 GENE LANG. WHERE YOU ADOPTED A KINDERGARTEN CLASS AND PLEDGED TO SUPPORT THOSE KIDS THROUGH COLLEGE IF THEY STUCK TO IT. AND RIGHT AFTER IT, THIS YOUNG GUY, MY AGE, WHERE THE HECK WAS I, WHO ALSO DID IT. THAT WAS PAUL JONES. >> I WAS IN MY APARTMENT ON MY COUCH AND I THINK I WAS 32 OR 33 AND I SAW THIS 60 MINUTES PIECE ON I HAVE A DREAM.
21:34 I CAN DO THAT. I CALLED GENE THE NEXT DAY. I FELT AT THIS POINT IN TIME, THERE WAS SOMETHING REALLY MISSING IN MY LIFE. I THINK ACTS OF KINDNESS WERE IT'S LIKE BRUSHING YOUR TEETH WITH MY MOTHER AND FATHER. THERE WERE ALWAYS THAT WAY. WHEN I SAW THAT 60 MINUTES PIECE, IT WAS VERY RESONANT WITH ME. I CALLED GENE. I STARTED THIS CLASS AND I REMEMBER THEY HAD THIS MEETING, WHERE EVERYONE WAS GOING TO GET A BOROUGH.
22:05 THERE WAS I THINK THERE WERE FIVE OF US. I GOT LATE AND SO THEY GAVE ME BEST STY DO OR DIE. ANY WAY, SO THAT BECAME A LOVE AFFAIR BETWEEN ME AND BED-STUY AND I ADOPTED THIS CLASS AND WOW. THAT WAS SUCH AN EYE OPENING EXPERIENCE BECAUSE I HAD NO SKILL, NO SOES LOGICAL SKILLS. NO INSIGHTS.
22:38 >> YOU WERE FROM MEMPHIS, FOR CRYING OUT LOUD. >> OKAY, SO I'M GOING TO LET THAT GO. >> BEDFORD STUYVESANT. >> IT WAS TRUE PARTICULARLY IN BED-STUY. ANY WAY, THREE YEARS IN, IT WAS WILD BECAUSE ALL OF A SUDDEN, WE LOST SOME KIDS TO VIOLENCE. WE HAD A SIGNIFICANT PROPORTION OF OUR -- HOW MANY DID YOU START WITH?
23:09 >> WE HAD 86 AND SO I HAD NO IDEA WHAT I WAS DOING. I SAY THREE YEARS IN, IT WAS REALLY EVIDENT THAT I WAS WAY OVER MY HEAD. OUR SCORES WERE NOT IMPROVING IN SCHOOL. WOULD HAVE A REPORT CARD NIGHT EF QUARTER AND OUR SCORES NEVER GOT BETTER. WE HAD AN AFTERSCHOOL PROGRAM. IT WAS MORE AROUND KIND OF TOUCHY FEELY, WE'D PLAY SPORTS AND STUFF LIKE THAT. LITERALLY HAD NO IDEA WHATSOEVER. THEN WE STARTED HAVING I WOULD SAY ABOUT FOUR YEARS IN STARTED HAVING YOUNG MOTHERS IN THE PROGRAM.
23:48 IT WAS JUST REALLY OVERWHELMING. >> KIDS MADE IT TO COLLEGE. >> I THINK WE ENDED UP GET TING I THINK WE GOD 31 INTO COLLEGE. ABOUT FOUR TIMES THE NEIGHBORHOOD RATE AND GRADUATED HALF OF THAT CLASS. THAT WAS THE CRUCIBLE. IT WAS SO IMPORTANT FOR ME ON MY JOURNEY. THERE WAS A HUGE DIFFERENCE BETWEEN EFFORT AND OUTCOME. BECAUSE I'D PUT SO MUCH.
24:22 >> GOSH, I THINK WE WERE SPEND 4 OR $5,000 PER KID PER YEAR WITH NOTHING TO SHOW FOR IT. WHEN I SAY NOTHING TO SHOW FOR IT, THE METRICS, THE ACADEMIC SCORES, GRADE MA TTRICULATION, ATTENDANCE, DROPOUTS, WE WEREN'T IMPROVING ON ANY OF THAT BECAUSE THERE WAS NO FOCUS AND THERE WAS NO DELINEATION OF WHAT THE MISSION WAS AND THERE WAS NO UNDERSTANDING BETWEEN US AND THE KIDS. WE WEREN'T PROVIDING THEM THE SUPPORT THEY NEEDED AND THEIR ENVIRONMENT, THE BACKGROUND ALWAYS WAS SO GREAT.
24:56 THEY JUST BEING THEIR FRIEND AND JUST GIVING THEM PROMISES WASN'T ENOUGH TO OVERCOME A REALLY CHALLENGING ENVIRONMENT. I THINK THE I HAVE A DREAM EXPERIENCE WAS REALLY INFORMATIVE FOR WHAT WE ENDED UP DOING. >> IT TAUGHT YOU TO APPRECIATE THE EFFORT. >> IT'S NOT THAT IT'S IRRELEVANT, BUT YOU REALLY HAVE TO BE SO GOAL ORIENTED AND HAVE MILESTONES ALONG THE WAY AND HOLD YOURSELF ACCOUNTABLE.
25:31 AND ALL THOSE THIPGS I LEARNED REALLY EARLY ON. BUT I LOVE D THE IDEA AND THE CLASS. AND I KEPT ADOPTING CLASSES ALL THE WAY THROUGH. UNTIL I SAY THE MID '90s. THEY WERE DISAPPOINTING BECAUSE ALL THE CLASSES IN THE AFTERSCHOOL PROGRAM THAT STAYED WITH US WERE LITERALLY 90% GIRLS. IT WAS DISAPPOINTING THE YOUNG BOYS COULD IN THE KEEP UP WITH THE FWIRLS.
26:08 I'VE GOT A BOY AND THREE GIRLS. >> JUST FINDING OUT THE ETERNAL TRUTH. THAT BOYS MAY BE A LITTLE DEVELOPMENTALLY CHALLENGED. BUT IT WAS, IT WAS STILL EYE OPENING AND THAT WAS WHEN I ACTUALLY HIFTED FOCUS AND SAID O OKAY, I'M SPENDING ALL THIS MONEY, FORGET TRYING TO BE AN AFTERSCHOOL PROGRAM AND PUTTING A BAND DADE ON THE PROBLEM.
26:39 WHY NOT INSTEAD ATTACK IT FROM THE BEGINNING AND THAT'S WHEN I STARTED A CHARGE SCHOOL SCHOOL. WHICH WAS BED-STUY EXCELLENCE FOR BOYS. WE STARTED ONE, I WANTED TO START ONE SPECIFICALLY FOR BOYS. BECAUSE THEY WEREN'T SO DEVELOPMENTALLY CHALLENGED. WE ENDED UPSTARTING ONE FOR GIRLS, ALSO. WE STARTED WITH BOYS AND THAT ENDED UP BEING ONE OF THE HAPPIEST ENDEAVORS OF MY LIFE BECAUSE REALLY EARLY ON, I'D SAY AND I WAS WORK WG NORM AN ATKINS, WHO YOU REMEMBER WAS -- >> LIFE IS ON THE BOARD.
27:18 >> WORKS VERY HARD. >> NICE TO SAY THAT. >> SHE IS PHENOMENAL. INCREDIBLE. AND IT IS JUST WONDERFUL BECAUSE IT WAS REALLY EVIDENCE FROM THE BEGINNING THAT WITH THE RIGHT INSPACE STATION, DIRECTION, FOCUS, EDUCATIONAL INFRASTRUCTURE, THAT YOU COULD, YOU COULD JUST BLOW THE HOLE MYTH OF THE ACHIEVEMENT GAP AWAY. I WOULD SAY WITHIN FIVE YEARS MAYBE FOUR YEAR, WE WERE NUMBER ONE OUT OF 543 ELEMENTARY SCHOOLS.
27:57 WITH 98% AFRICAN-AMERICAN INNER CITY KIDS. >> I COULD TALK FOR TOO LONG JUST ABOUT WHAT I KNOW YOU'VE DONE AND EVERY TIME I TALK TO YOU, I JUST DISCOVER SOMETHING ELSE. IN THE INTEREST OF TIME, TAKE US THROUGH ROBIN HOOD AND WHAT YOU TRIES TO ACCOMPLISH PRETTY LAVISHLY HAVE ACCOMPLISHED. >> B ROBIN HOOD IN THE EARLY YEARS WAS LIKE THREE STOOGES WITHOUT THE PIE FIGHT. >> OVER 30 YEARS. IN THE BEGINNING, IT WAS JUST A COUPLE OF US MAKING IT UP AS WE SWENT.
28:32 BUT AGAIN, WE WERE BEING, THE GOOD THING IS IS WE WERE BEING FORMED BY OUR FAILINGS ALONG THE WAY, VERY QUICKLY. WE REALIZED WE'RE GOING TO BECOME OUTCOME FOCUSES. AND THE BEST PART OF ROBIN HOOD IS IS I THINK, IN FACT, THE BEST PART AND I HATE TO, WORD F PHILA PHILANTHROPY, THE BEST PART OF MY PROFESSIONAL CAREER HAS BEEN, HAS BEEN BEING INVOLVED IN ON THE CHARITABLE SIDE.
29:06 I THINK OF ALL MY BEST FRIENDS. OF ALL THE PEOPLE WHO I HANG AROUND WITH, ENJOY THE MOST, SPEND THE MOST TIME WITH IS GENE GENERALLY BEEN PEOPLE THAT I MET THROUGH SOME OF THOSE, YOU FIND THE GREATEST PEOPLE AND YOU FIND THIS COMMUNAL BOND AND THERE'S SO MUCH JOY THAT COMES FROM THAT. AND SO MUCH HAPPINESS. SO I'D SAY ON A SELFISH BASIS HAS BEEN THE BEST PART OF IT AND ROBIN HOOD REALLY IF I THINK ABOUT A COLLECTION OF TENS OF THOUSANDS OF NOBLE HEARTS MINDS, THAT IS WHAT THAT HAS BEEN.
29:40 WE CALL IT ROBIN HOOD NATION. IT TRUE WILL IS IS. USUAL ON THE BOARD. F I'VE SEEN SO MANY PEOPLE COME IN. THEY STAY FOR A PERIOD OF TIME. THEY LEAVE US. I THINK THEY ALWAYS LEAVE NO MATTER WHAT LEVEL OF ENGAGEMENT THEY LEAVE LARGER AND BIGGER AND HAPPIER AND MORE PURPSE. >> I JUST LEB REMEMBER, I HAVE TO SAY THIS, IT'S NOT JUST WHAT YOU GIVE OR THE EFFECTIVENESS, BUT I LERPARNED A LOT THAT I HA APPLIED.
30:15 I REMEMBERED RIGHT AFTER 9/11. WHEN EVERYONE, THIS WHOLE COMMUNITY DOWNTOWN WAS RUNNING AROUND THE SMALL BUSINESS AND COULDN'T GET ANYTHING. HOW DO YOU GET THEM MONEY AND EVERYBODY HAD TO APPLY AND THE GOVERNMENT FORM, WHO NEEDS THE MONEY AND VERIFICATION. YOU AND ROBIN HOOD JUST JUST MADE THE STATEMENT, MADE THE DECLARATION, WHY DON'T WE JUST GIVE $5,000 TO EVERYBODY WHO SAYS HE OR SHE NEEDS IT.
30:45 NO QUESTIONS ASKED. HOW MANY PEOPLE WHO DON'T DESERVE IT WILL ASK RELATIVE TO HOW MANY PEOPLE WON'T GET IT IF WE REQUIRE SOME KIND OF BUREAUCRACY OR VERIFICATION. WHERE DO WE WANT TO BE ON THIS. TO GIVE IT TO FEW TOO MANY PEOPLE OR TO EVERYONE AT A TIMELY TIME. THAT WAS AN UNBELIEVABLE CONCEPT AT THAT TIME. >> SO WE HAD CONCERT FOR 9/11. AND WE RAISED ABOUT $60 MILLION. THE QUESTION IS HOW DO WE HELP OUT HALF THE VICTIMS OF THE TOWERS.
31:19 AND THE FIREFIGHTERS AND POLICEMEN. WHAT WAS SO INTERESTING IS THERE WAS SO MUCH BUREAUCRACY AND RED TAPE THAT THOSE FAMILIES WERE RECEIVING NOTHING. SO HERE ALL OF A SUDDEN, COMES THE HOLIDAYS. THE ENOF THE YEAR, THEY'RE GETTING NOTHING. WE SAID LOOK, LET'S SWRUS GO AND GIVE $5,000 TO EVERY FAMILY AND WE COULDN'T EVEN FIND THE LIST OF PEOPLE THAT HAD PASSED AWAY, SO ROBIN HOOD LITERAL LY ENDED P GETTING THE LIST THAT BECAME THE LIST AND WE SENT EVERYBODY A FEDEX CHECK FOR $5,000.
31:56 AMAZING IMPACT THAT HAD. THERE WAS ALL THIS TALK ABOUT THIS HELP, NET NOTHING WAS HITTING THE GROUND. THE OTHER THING IS IT'S SO FUNNY. GOING BACK TO THE CALLING. SO MANY OCH THE MISSIONS WE'VE HAD AT ROBIN HOOD HAVE BEEN B IN RESPONSE. ALMOST LIKE WE WERE CALLED TO IT. IN THE EARLY '90s WHEN AIDS WAS SUCH A HUGE PROBLEM AND THE REAL PROBLEM WITH AIDS WAS THAT IT WAS BEING SPREAD BY NEEDLES. SO I REMEMBER WE HAD ON OUR BOARD, WE HAD JOHN F. KENNEDY JR. AND WINTER, THE EDITOR OF "ROLLING STONE."
32:36 WE HAD THIS BIG ARGUMENT OVER WHETHER WE SHOULD BE FUNDING THE NEEDLE EXCHANGE. IN I GUESS WINCEBURG PARK. WHE THAT'S WHERE ALL THE ADDICTS WERE. THE LEFT, WE CAN'T DO THIS, WE'LL BE ATTACKED. THEN LANGONE, IT WORK, THIS IS HOW IT'S GOING TO STOP. >> RIGHT WINGERS WANTED TO SUPPORT THE DRUG, YOU KNOW. >> IT WAS HILARIOUS. BUT WE'VE BEEN INVOLVED IN A BUNCH OF THOSE.
33:07 TEENAGE PREGNANCY, THAT, 9/11, SANDY RELIEF. >> THAT'S THE POINT. IT WASN'T JUST CONVENTIONAL. I ALWAYS THOUGHT IT WAS LIKE RE REALLY, YOU REALLY BROUGHT A LOT OF NOVELTY AND INSIGHT, THE FIRST INSTANCE I FOUND JARRING. THIS IS THE MOST SENSIBLE WAY TO SPEND FPHILANTHROPIC DOLLARS. >> WE HAVE A NEW EXECUTIVE, WES MOORE. HE'S PHENOMENAL.
33:39 HE'S BRINGING ALL OF US ON BOARD TO, IS WE'VE GOT TO FOCUS ON SOCIAL MOBILITY. BECAUSE RIGHT NOW, YOUR FUTURE LEVEL OF INCOME IS PRETTY MUCH DETERMINED MORE SO THAN EVER IN THE HISTORY OF THIS COUNTRY, BY YOUR PARENTS INCOME. SO SOCIAL MOBILITY IS PROBABLY GOING TO BE YOUR NUMBER BONE FOCUS GOING FORWARD. HOW TO YOU BREAK THOSE CHAINS THAT HOLD YOU BACK? HERE WE ARE, THE LAND OF THE FREE, EQUAL OPPORTUNITY, YET WE RIGHT NOW, HAVE LITERALLY THE MOST RIGID, SOCIAL, CONSTRICTIONS AND RESTRIXS ON OUR YOUNG PEOPLE THEY'VE EVER FACE ND THE HSRY OF THIS COUNTRY.
34:22 IT'S EMBARRASSING, FRANKLY. >> HOW MUCH MONEY HAS ROBIN HOOD DISTRIBUTED? >> 3 BILLION. >> NICE ROUND NUMBER. >> IT'S A GOOD START. >> STARTED OUT WITH $10,000 TRADING AND NOW WE'RE UP TO $3 BILLION. I WANT TO TALK ABOUT JUST CAPITAL, WHICH IS WHAT I REFER TO AS YOUR YOU KNOW, WHOLESALE. KIND OF INSTITUTIONAL APPROACH TO THIS.
34:55 THAT WAS ANOTHER CALLING. THE LAST THING I WANTED TO DO WAS GET INVOLVED IN ANOTHER NOT FOR PROFIT. DEEPAK CHOP RA CALLS ME UP, I HAVE THIS STUDENT AND THIS IDEA AND THE IDEA IS WHY CAN'T CORPORATIONS BE A FORCE FOR GOODNESS. WHY CAN'T THEY USE THEIR CAPITAL, HUMAN AND FINANCIAL FOR JUST CAUSES. JUST CAPITAL IF YOU WILL.
35:29 I THOUGHT, PLEASE. LET ME THINK ABOUT IT. I'LL CALL YOU BACK. I WENT HOME AND I REMEMBERED AT ROBIN HOOD, WE WERE TRYING SO DESPE DESPERATELY TO GET. >> THAT WAS ALSO IN PHILANTHROPY WHERE YOU'RE FIGING. YOU CAN GET THE GOVERNMENT TO COME IN. >> MY STUFF WORKS. WHY DON'T THEY FUND IT. >> I STARTED THINK ING, IT'S 36 BILLION AND THE FEDERAL GOVERNMENT'S 4 TRILLION, SO THAT'S TEN TIMES THE SIZE AND THEN THE PRIVATE SECTOR IS 15 TRILLION, SO THAT'S FOUR TIMES THE SIZE OF THE GOVERNMENT SECTOR.
36:13 REALLY, IF WE'RE GOING TO HAVE SOCIETAL CHANGE, IT'S GOING TO HAPPEN. IT HAS TO HAPPEN THROUGH THE WAY WE DO BUSINESS. AND I CALLED HIM BACK. I SAID YOU KNOW WHAT, LET ME CALL MY GOOD FRIENDS AT GOLDMAN. >> TALK ABOUT THE INDEX. >> SO ANY WAY, BASICALLY, WE EPDED UP -- >> WE'LL GET BACK TO YOUR GOOD FRIENDS AT GOLDMAN. SO LONG STORY SHORT.
36:43 WE CAME TO THE IDEA WHERE WE WOULD CREATE AN INDEX OF, WE'D TAKE THE RUSSELL 1000, THE 1000 LARGEST U.S. COMPANIES AND CREATE AN INDEX WITH A WHOLE VARIETY OF METRICS ON IT. AND THE INDEX WE KEPT THINKING, OH LORD, IF WE CREATE IT, WE'RE GOING TO BE ACCUSED OF SOME KIND OF BIAS. SO THE SECRET SAUCE OF JUST IS THAT WE GO TO THE AMERICAN PEOPLE AND POLL THEM EVERY YEAR.
37:17 >> WHAT'S POIMPORTANT TO YOU. >> WE SKA SK THEM, BLANK SHEET OF PAPER, TELL US WHAT YOU THINK IS IMPORTANT FOR CORPORATE JUSTNESS. THE AMAZING THING IS IS THAT THE AMERICAN PEOPLE HAVE AN INCREDIBLE STORY TO TELL AND TOTALLY DIFFERENT THAN THE WAY WALL STREET OPERATES. NO BETTER EXAMPLE WAS WHEN I TALKED TO YOU LAST WEEK. HOW YOU DOING? WHEN YOU GOING TO RETIRE? YOU SAID, OH GOD, 43 QUARTERS OF EARNING REPORT. I DON'T KNOW. I LOVE IT SO MUCH.
37:47 >> I KNOW. >> 43 QUARTERS. EXACTLY WHAT JUST GETS TO, WHICH IS WHAT THIS DOES IS IT GOES THROUGH AND ASKED THE AMERICAN PUBLIC WHAT'S IMPORTANT. YOU'RE THINKING ABOUT HOW AM I GOING TO GET MY ASS KICKED BECAUSE I MIGHT MISS THESE QUARTERS. HOW AM I GOING TO TAKE HIM TO THE SHED. THE AMERICAN PUBLIC SAYS NO, NO, NO, THE MOST IMPORTANT THING THAT DETERMINES JUSTNESS IS HOW TO YOU PAY AND TREAT YOUR PEOPLE.
38:18 THAT'S 23%. AND THE SECOND THING THEY SAY IS HOW DO YOU TREAT YOUR CUSTOMERS? THE THIRD THING IS ARE YOU PRODUCTS, YOU MAKE QUALITY PRODUCTS A AT GOOD COST AND ARE ARE THEY SOCIALLY BENEFICIAL. FOURTH IS ARE YOUR OPERATIONS ENVIRONMENTALLY SUSTAIN BABLE. FIFTH IS ARE YOU HELPING OUT WITH LOCAL NCOMMUNITIES. SIXTH IS JOB CREATION. ARE YOU CREATING JOBS TO GIVE PEOPLE A FINANCIAL SENSE OF WELL BEING AND FINAL LY, SEVEN, IS SINGLE DIGITS IS HOW ARE YOU SERVING THE INTEREST OF YOUR SHAREHOLDERS AND MANAGEMENT?
38:57 THAT'S WHILD WHEN YOU THINK ABT BECAUSE HERE'S THE AMERICAN PEOPLE THINKING HERE'S SHAREHOLDERS, CLOCKS IN AT 7%. WHEN WE KNOW THE WALL STREET IS MANAGED IS 85% OF WHAT WE DO. >> THE CORRELATION BETWEEN THE BEST RANKED COMPANIES AND FINANCIAL SUCCESS. >> AND THE AMAZING THING. >> CONVENIENT. >> SO THERE'S ACTUALLY A FANTASTIC STORY HERE IN THAT THE TOP 50% OF THAT RUSSELL 1000 THAT IS IN THIS FEW ETF CALLED THE JUST 500.
39:38 THEY ON AVERAGE PAY BETTER THAT BE THE BOTTOM 50%. THEY CREATE 20% MORE JOBS ON AVERAGE. THEY GET FINED ANYWHERE FROM 70 TO 90% LESS. THEY GIVE MORE TO CHARITY AND THE REAL KICKER IS THEY EARN 7% MORE ROE ON AVERAGE. SO IF YOU FOLLOW WHAT THE PERSON PUBLIC SAY, YOU END UP NOTHING ONLY BEING JUST, BUT YOU END UP WG MORE PROFITABLE.
40:13 NOW WE CAN DISCUSS WHY THIS IS. IF THE BIGGEST METRIC IS IS EMPLOYED PAID TREATMENT, THOSE COMPANIES ARE AT THE FOREFRONT OF WHATEVER THE EVOLVING ECONOMY ARE PROBABLY HAVE THE HIGHEST SKILL, MOST MOTIVATED, WORKFORCE THAT'S MAKING GREAT PRODUCTS AND TREATING CUSTOMERS WELL. SO IT'S A REALLY SIMPLE BUSINESS MODEL THAT ACTUALLY HAS A TON OF ALPHA IN IT. SO I DO THINK IT'S IMPORTANT THAT WE AS A SOCIETY, RETHINK THE OLD DEFINITION OF CAPITALISM, WHICH MILTON FRIEDMAN ESPOUSED.
40:56 HE SAID THE SOCIAL RESPONSIBILITY OF A COMPANY IS TO IMPROVE ITS PROFITS. NOW HE SAID THAT IN 1970. WHEN TAX RATES WERE 91%. JUST COME TO 70. ACTUALLY WHAT HE SAID IS SO FUNNY. THE LAST MOVIE I SAW, I WATCHED WALL STREET WHERE GORDON GEKKO SAID GREED IS GOOD. IT'S WHAT MAKES THE COUP TRI GREAT.
41:27 I THINK THAT WAS THE RALLYING CRY FOR YEARS AND MY YEN RATION. >> PROBABLY THE HIGH WATER MARKER. THE SUCCESS OF GREED. SO THE INTERESTING THING ABOUT 1985 IS THAT SINCE THEN, SINCE THAT TIME, THE BOTTOM 9% OF AMERICANS OWNED THE WEALTH THEN. THOED, THEY OWN 23% OF THE WEALTH AND THAT 12 HAS GONE TO THE TOP.1 OF 1%.
42:00 SO SOMETHING -- >> MIGHT BE. >> IF THIS DEFINITION OF CAPITALISM SUSTAINABLE AND -- >> IT WOULD BE REVERSED BY HOOK BY HOOK. >> I THINK MARIE ANTOINETTE WOULD BE A GREAT EXAMPLE OF NO, IT'S PROBABLY NOT. IT'S FUNNY BECAUSE THE FATHER OF CAPITALISM WAS ADAM SMITH AND HE SAID IF JUSTICE IS REMOVED, THE GREAT IMMENSE FABRIC OF SOCIETY WILL IN A MOMENT DISAPATE INTO ADAM'S AND I THINK IF WE JUST THINK ABOUT WHAT'S HAPPENEDED OVER THE PAST 30 YEARS, THAT'S NOT JUST.
42:42 AND HOPEFULLY, WHAT THIS LITTLE IDEA HERE IS THROUGH SOECIAL NORMING, THROUGH CHANGING PEOPLE'S PERCEPTIONS. EVERY CULTURE IS BASED ON WHAT OUR PEERS THINK IS RIGHT. >> YOU CAN GET BACK TO YOUR FRIENDS NOW. >> IT WAS WITH GOLDMAN'S HELP THAT WE SARTED DOING THIS RESEARCH. WE REALIZED THIS INDEX, WE'RE GOING TO HAVE THE JUST 100.
43:21 THEY'RE IN TOP 10%, SO HOPEFULLY FIVE YEARS FROM NOW, WILL BE U BIKTOUS. MAYBE THERE WILL BE ONE OF THE SEAL. WHAT IS THE SHARING ARRANGEMENT. THE PEOPLE CAN ALSO REWARD THE COMPANY BY GETTING NOR CAPITAL. >> I'VE GOT FOUR KIDS IN MY 20Z.
43:52 ANYBODY CAN GO TO OUR WEBSITE RIGHT NOW. GOLDMAN WOULD BE HAPPY TO KNOW I THINK 65 OUT OF 1,000. >> THAT'S TERRIBLE. >> SO YOU'LL BE ABLE TO LOOK AND SEE HOW THAT COMPANY SCORES ON A VARIETY OF METRICS. YOU CAN VOTE WITH YOUR FEET, WHERE YOU WANT TO WORK. I WANT TO WORK AT A GOOD PLACE. >> IT'S A REWARD BECAUSE IT THEN BECOMES EASIER FOR COMPANIES TO RAISE CAPITAL AND BECAUSE PEOPLE AREN'T, IT'S NOT AN ACT OF CHARITY.
44:24 THESE ARE ACTUALLY BETTER COMPANIES. >> CORRECT. >> THAT'S TERRIFIC. I THINK WE'RE DWOIGOING TO TURN OVER. AT 3:45, DO WE LOSE OUR STREAMING AUDIENCE? WHAT DOES THAT MEAN? YES. OKAY. I WANT TO THANK THE PEOPLE AT YAHOO FOR STREAMING THE C CONVERSATION SO FAR. SO THANK YOU VERY MUCH AND THANK YOU VERY MUCH, PAUL. >> THANK YOU.