Revealing My $1,400,000 Stock Portfolio Of Compounding Machines

0:00 Welcome back everyone. It's time to go over a $1.4 million stock portfolio. And this portfolio of mine is only invested in 14 stocks. 14 individual companies that I believe will grow tremendously over the next decade. Now, this portfolio so far has generated in excess of $550,000 in returns. It's compounding. It's continually growing. And the companies that I'm invested in, I think, are the best of the best. So, we have a ton to get to in this episode.

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0:56 If you haven't joined Qualum, I think you're missing out. Most of the people that join it love it. Try it out now risk-f free with a free trial. Now, we start things off today looking at a $1.4 million portfolio. These are the portfolios I've been building on YouTube live weekby week for over 6 years. So, if you're following this channel, you can follow along and see me build this from where it was at $2,000 now to 1.4 million. And I'll continue to build this from 1.4 4 million to 2 million to 4 million to 6 million. I'm going to keep going with this portfolio. But every once in a while, like any good investor, we want to take a break and we want to take a look at what we're doing. We want to do some analysis on if we're making the best decisions and if we own the best stocks possible. And that's what we're going to be doing today. We'll be starting off from biggest to smallest.

1:44 And the largest holding in my portfolio is Google. We have here part of my Google position. Now, my entire $1.4 $.4 million portfolio. The full thing is split across two brokerage accounts. I have part of it in the passive income portfolio and then I have part of it in the story fund. These are two different accounts, but when you combine them together, that's where you get the 1.4 million. With Google, I like this position so much that I had it in both accounts. So, I have a $119,000 position in the passive income account.

2:14 Then, I have another $78,000 position in the story fund. When you combine both of these together, it is $198,000 in value or roughly 15% of my portfolio. Then we look at the gains. In the passive income portfolio, it's $53,000 worth of gains. In the story fund, it's $49,000 worth of gains. So roughly around $100,000 worth of gains. So Google's this massive position. It's around $200,000 with over half the position being gains. A huge winner in the portfolio. Google's one of the best performing stocks over the past 5 years.

2:48 It's an in fact an incredible outperformer. When we look at the outperformance, we can look at Google over just the past 5 years. Okay, we'll just take this metric. It's at 248%. 249 over the past 5 years. That's not counting dividends, which they do pay dividends as well. We can take the QQQ. This is the go-to benchmark for many investors. We take a look at this over the past five years, it's at 89%. So Google is at 245 and the NASDAQ's at 89%. See the level of outperformance here. Just in the past year, the NASDAQ's up 16%. Not bad. The QQQ is doing well. That's a normally a great year. We look at Google and Google is crushing the QQQ. It's just obliterating it. And the truth is that in many cases, the companies that do the best are the ones that every investor is looking at, but they have the wrong takeaway. The wrong takeaway with Google was that this is a company that was in distress. It was going to be destroyed by ChatgBT. The correct takeaway was that Google is far too diversified. They had far too big of an ecosystem and they've been investing in artificial intelligence for a long period of time.

4:00 When I looked at Google, the biggest advantage I had in this company, the reason that I stuck with Google, even though it was very uncertain and very scary for a time in 2025, the reason that I continued to stick with the company was because I believed even if the search business did poorly, even if that portion of the company wasn't doing well, YouTube ads, subscriptions, and cloud and other bets, which is Whimo, would more than justify the market cap of Google. Everyone was so focused on search and the 10 blue links and the dynamics there that they seemingly forgot about Google Cloud, this massively growing cloud hyperscaler.

4:38 They seemingly forgot about YouTube, which YouTube is dominating television. It's beating out Netflix on the TV. It has the Oscars. YouTube is now the place to be for television. They seemingly forgot about Whimo, which continues to expand and expand over and over again. The reason that Google's such a big winner in the portfolio is simple. My assessment was the downside was incredibly limited because even if the search business was disrupted to some extent, then YouTube, Google Cloud, and Whimo and all their subscription businesses would more than justify the current market cap. That was even if search got disrupted. But the fact that search didn't get disrupted and search continued to grow meant that not only was the downside covered, but there was immense upside in the stock. That's why we had a company surge up 70% year-to date. It was priced for the worst, but the best outcome happened, and those become the biggest winners. Now, with Google being a $200,000 position, a 15% waiting, the biggest holding in my portfolio, and over 100% in gains, the question is whether or not I continue to hold it or I start taking gains. In this case, since I like the story of Google, and I continue to like this story, I believe in the total story arc, we're about halfway done. I continue to hold.

5:54 Now, I'm not adding to my position because it's already so big. I don't want to continue to throw money at Google with its higher valuation now, but I believe it's a time period where I'm just going to hold on to this one. I don't feel like taking gains just yet. I don't believe the valuation is too stretched in the high 20s PE ratios, and I don't believe that the story of Google's over. They continue to go from strength to strength. What I see from this company continues to be impressive.

6:18 So, right now, Google is a hold. Now, the next largest holding in this $ 1.4 million portfolio is Mastercard, coming in at around a 12% waiting and it's roughly $178,000 in size. Mastercard, like Google, is a massive position. With every transaction, every singlewhere in the globe, there is a level of fraud. There's a level of deceit. There's people that take advantage of transactions. And Mastercard is a solution for that globally. It's a solution for knowing your customer, for fraud prevention, for insurance, for identity. It has all of these types of very important aspects to any transaction. And Mastercard has pivoted to a business model where even in transactions that aren't done on their network, they still offer these services. So even if it's a government network, even if it's done on stablecoin, Mastercard is selling this protocol of trust. That is what comprises around 40% of their business.

7:15 So we look at the company today and we look at it broken up between two halves. We have right here the value added services. This is the protocol of trust that Mastercard sells. Now with Mastercard right now there's a lot of bare cases. Uh there's a lot of people concerned for a lot of different reasons. There's government rails for example in Brazil you have PICS in India you have UPI. Europe's making their own government rails. In the US you have Fed. Now every government wants to have their own payment network similar to Mastercard. Many investors are concerned about that. There's also just a lot of alternatives. There's buy now pay later.

7:50 There's a transfers. There's things like Zella and Venmo. There's things like Stablecoin. There's lots of different ways to transfer money. And for many investors, that that makes them concerned about Mastercard. Aren't these all a threat to their moat? Well, I went over and actually covered all of these different concerns extensively in an hourong exclusive episode. I don't have time to go over that now, but I believe that all these fears are overstated and that Mastercard will continue to grow organically for a long period of time.

8:18 The stock today is trading down and it's having a notable tradeown for a very specific concern, which is President Trump continually saying that he wants to cap the interest rates on banks by 10% for credit cards. Now, even though Mastercard does not accept interest, so they're not the one earning that interest, if this were to theoretically go through, it would be devastating to both Visa and Mastercard. Even more devastating to Visa because it would mean that the banks no longer can give out credit cards to a huge portion of their customers. The banks would not be able to give credit to so many people if it was capped at 10% interest. The math just would not make sense. But I believe that a 10% cap on credit cards is a nice political talking point, but it's incredibly unlikely to go through for many structural reasons. There's almost no conceivable way that this would work without causing devastating results to the banking system, to our entire transaction system within the United States. People would be buying less and spending less. It would be devastating to the economy. It would also mean that millions and millions of people lose a product that they love that people were choosing to use, which is credit cards.

9:26 There's a lot of structural reasons why I believe that 10% cap will not come to fruition. So, as of right now, I believe that this is a buying opportunity. And that's exactly what I've been doing. I've been buying Mastercard and the stock is attractively valued. My third largest position behind Google and Mastercard is Amazon at $150,000 total position with $50,000 in the green. This one's held in the Story Fund portfolio. So, we have it right here. Amazon's a top position. I've maintained that I believe this company is worth well over $300 per share. And the reason why is simple. Everything is improving for Amazon. The revenue continues to grow at a very fast pace given its size. This is a company that's going to be doing a trillion dollars of US revenue, which is insane. $1 trillion. I'm going to own the stock when it surpasses that point.

10:15 So, it's growing in both retail, it's growing in grocery, it's growing in everyday household items. It's also growing in Amazon web services and you name it. Amazon has their hands in everything. All of it's looking good. But also, very importantly, the company's revenue mix is actually improving. This is the low margin gargantuan portion of Amazon. This is growing by 8%. When we reverse this and we look at just the high margin portions of the company, we have this growing at 13.8%. 8%. So the high margin portion is growing really fast, the low margin portion is growing really slow, meaning overall the revenue mix is getting better. It's improving. The company's becoming higher quality every single day. Amazon, I believe, represents one of the biggest opportunities in the market. It trades at 235 today. I think it won't be long before it's at $300 plus. Once investors get on board with the story of margin expansion of robots and the continued winning of this company in multiple verticals, I think we'll see a very similar thing that we saw with Google. For that reason, I believe the company's attractively valued today. Now, in number four, we have S&P Global, which for this purpose, I'm going to group with Moody's because they're so similar. Both of these companies are in the finance category.

11:28 We have Moody's here with a $15,000 gain. We have S&P Global with a $37,000 gain. together they make up around 14% combined. What I look for with every company to gauge its performance is its free cash flow growth, especially on a per share basis. I want companies growing their free cash flow per share. We have the metric right here. I can take a look at their free cash flow per share and I can see that S&P Global is growing it. Now, it's flat year-over-year, but we zoom out a little bit here. We can go to just the past 10 years. We can see they had a huge spike of free cash flow per share growth back in 2021. It went down a lot because interest rates went up like crazy which affected the amount of debt being issued globally. And [snorts] now I think these companies are positioned well to have a huge debt wall and to grow this free cash flow per share. Now the stock price of these companies has been okay but it hasn't been great. And what's going to cause the stock to go up is massive free cash flow per share growth. If that happens the stock only has one direction to go. It's very unusual that stocks go down while a company grows its free cash flow per share tremendously. It can happen, especially if the company's dramatically overpriced, which I don't think is the case here, but again, it's unusual. Their valuations differ, but I'm equally bullish fundamentally on both of these companies. At number five, we have ASML. This has been another huge winner in the portfolio. It's at $119,000 position today with around $57,000 in gains. ASML is one of the only true monopolies on planet Earth.

12:57 It's a company that builds those gigantic lithography machines. They sell them for $300 to $400 million per machine and then they have service revenue for the rest of that machine's life, which is 20 plus years. So, this company has a continually growing portfolio of machines out there and their service revenue continues to grow as a response. Now, the stock is also moving in the right direction. It's going up like crazy. When we look at ASML, it's up 19% year-to date. My goodness, it's up almost 20% in 2026. We look over the past year, up 85%. Now, where does that leave us today? Well, first of all, we need to know the reason that ASML is going up. Part of the reason that the stock is doing so well is because it becomes more and more certain that ASL is the only one capable of doing what they're doing. But right now, even the Chinese government with all their money, with all their effort, with all their best scientists have not figured out how to replicate what ASML is doing. And ASML is leapfrogging their advantage. They continue to move the goalpost of where they even are. They have machines getting better and better every year. So the incremental advantage of ASML's remote is getting wider and wider every year. And while that's going on, the demand for ASML's product is getting bigger and bigger as well. TSM, one of their biggest customers, just said that they're increasing capex.

14:19 Well, where do you believe that capex is going? it's going to more ASML machines. It's difficult to argue that there could be a company in a better structural position. They have a machine that is wholly required in every single high-end chip. They have a machine that's impossible to replicate or easily do so. No one else has figured out the science behind it. They have a machine that's incredibly expensive and requires ongoing maintenance to make it work correctly. And they have a machine in a category that is artificial intelligence and computational power which our world is increasingly moving towards that direction. And even the bearish aspects of the company have been overstated like the demand in China. Now they're predicting that China will continue to grow in demand because again they have to buy ASML not because they like ASML but because China needs their devices.

15:07 They can't make them themselves. As of right now this is a hold for me. It's a company that I'm not adding to the position, but I'm still holding and I anticipate that ASML stock will continue to give good returns. Now, moving on, we get to holding number six. This is around an 8% waiting, and it's Netflix. Netflix is a $14,000 position with $38,000 being in the green. Now, Netflix is a company that, ironically, it's one that's being sold off. So, Netflix is down big. I I believe right now it's down around 40% from its recent highs, which feels like a big sell-off, right?

15:40 Anytime a stock drops almost 40%. From 133 down to 83, that feels like a gigantic sell-off. So, a lot of investors that are new that are that are new to Netflix or looking at this stock, they're going, "Wow, that's a huge sell-off." But for the OGs, the people that have held this stock longterm, the people that have held the stock before through a 75% sell-off when it was looking like all was lost with Netflix when they were losing subscribers.

16:08 They're literally reporting subscriber losses, when everyone was saying that Disney Plus is crushing them and HBO Max is crushing them. The people that have held through that don't feel like this is a big sell-off. And frankly, when I look at this, it it doesn't even uh it doesn't feel like anything. Maybe I'm a bit dead inside because I held it through that time period, but this just does not feel that important. This doesn't feel that scary. I don't have any concerns with this sell-off at all.

16:35 When you look at the long-term chart and you just drag a line, it actually looks pretty reasonable. It looks like Netflix went up a little bit too much right here. It's trading down a little bit because there's now some scary stuff going on. and they're doing a big acquisition. But overall, it's a long-term trend of Netflix continually growing from its low point in 2022. But even more so, outside of the trading, there's a couple reasons why I'm not worried about Netflix. In fact, when I look at the company today, I've quite literally never been more confident in this company than ever before. I've said before that Netflix is unquestionably a winner. It's almost indisputable at this point. I believe it's inevitable.

17:14 Netflix has one, and I think they'll go from strength to strength. Here's a simple way to think about Netflix. You can look at all the data. You can pour over the numbers. You can do your DCF calculations. You can try to find a good entry point. And while that's great, and I think all of that's important, it's also important to take a step back and look at what the company's doing. Netflix is a company that if you really just look at one number here, they have 325 million paid subscribers. 100% of their customers are paid subscribers.

17:42 325 million, which is growing. They continue to grow the amount of subscribers. All of their revenue is from subscribers and then they're attaching ad revenue on top of that. And then you have a company generating $9 billion in free cash flow which continues to grow. If we look at the latest numbers of how cash generative this business is. It is a cash machine. Just look at this chart for a minute. Netflix generated $9.46 billion in free cash flow in the past 12 months. 9.46 46 million. A couple years ago, it was flat. No free cash flow.

18:20 This shows you the operating leverage inherent in this business model. So, we have a business model with massively growing free cash flow, massively growing revenue, massively growing margins. 100% of the revenue comes from paying subscribers, their whole subscriber base. And they just announced in their most recent earnings that they have industry-leading churn, meaning their retention's so good that people willingly don't cancel. And by the way, Netflix has a product that's one of the easiest in the world to cancel. You can cancel your Netflix subscription in like 5 seconds. Yet, they have 325 million subscribers. This company really has everything in their hands. So, when I look at Netflix, I look at the fact that the stock is trading down. Investors may be concerned. One of the reasons the stock is down is because after their recent earnings report, they announced that they're no longer doing buybacks.

19:08 They're saving up money to buy Warner Brothers Discovery. When a company stops doing buybacks, there's one less big buyer in the market for that stock, meaning that there's now an imbalance. There's more sellers than there are buyers because Netflix used to be a big buyer of their own stock. So, the buyback halting causes investors concern and you can see it selling down as a response. You have the other thing where Netflix just mentioned in their recent earnings that they're increasing their content budget. They're going to be spending around $20 billion on content.

19:38 Now, Wall Street looks at that and they say, "Wow, they're spending more on content. That means that they're going to earn less in free cash flow." While that's true, that's a very short-term look at the company. Netflix has always ramped up their content spend from time to time, but they get such a high return on that content that they make even more free cash flow as a response. So these two things, the halting of the buybacks, the increasing in spend on content makes investors and Wall Street a little nervous. It's going to cause the stock to fall. It'll continue to fall, I believe, into the 70s. So whatever it trades around today, I believe is an opportunity and I have been adding to this position. Holding number seven, we have Microsoft. This is one that I've held for some time. This one again is split up between two different accounts.

20:20 So I have $73,000 worth of it in the passive income portfolio. $31,000 gain here. If we load in the story fund, I have another $22,000 of it and then $10,000 in the green. So, it's roughly a $38,000 gain around $100,000. Overall, it's been a great position. Microsoft has always been a great company. It remains one today. Satcha Nadella has expertly transformed the company from a software company over to the Azure cloud, over to an AI toolbox that's going to be built upon. So, that's the direction he's taken it. I think he's done a wonderful job. Azure obviously is growing quickly, but I believe that there's companies that are a little bit better positioned today, mostly Google and Amazon. So, as of right now, there's not too much of a change in my thoughts on Microsoft. I just consider it a hold.

21:06 In number eight, we have Costco, which is a 6.15% weighted position. If we look at it right here, it's an $84,000 holding with $50,000 in the green. Costco is an OG to the portfolio. I've literally held the company since day one of starting this portfolio many years ago. I wish I had invested more of it when it was at a great deal. At one point, Costco was relatively cheap, like it was priced around the same as a market, maybe a little bit more. And that's when I bought some of the company, but I wish I had more money back then so I could have bought more because this one has been an incredible, incredible performer. Over the past 5 years, it's up 168% far outperforming most hedge funds, the QQQ, the S&P 500.

21:48 You can basically put Costco up to any big index, any great investor, and odds are Costco's outperformed it. Costco drives revenue growth by passing on inflation onto the consumer. So whenever inflation goes up, Costco's a hedge. They just price their items alongside with it. Costco doesn't need to keep their prices flat. They just need to keep them better priced than all their competitors, which they do. So they maintain the best value while constantly increasing prices. And on top of that, if we break down where their revenue comes from, you can see it right here, the revenue by segment. This tiny sliver that you can barely see in orange, this is the membership revenue. Now, when we look at just the membership revenue, it's growing by 12%. This is the subscription portion of the business, which generates over half the profits.

22:34 So, when you look at the net income, you look at this growth right here. this net income. Half of this net income or more comes from that orange sliver. That's the business model. This business model confounds many investors. It confuses them because low margins is their moat. Customer satisfaction equates to loyalty and they transform unyielding loyalty of customer into an annuity-like income stream through their subscriptions. They pile up cash without taking on any leverage. Once they get enormous amounts of cash, they dividend it out in a special dividend. That's why some quarters they pay out years worth of earnings in their dividend like they did back in 2023. They paid a $15 per share dividend. And we're going to have another one come up soon because when we look at their cash balance, their cash balance is growing excessively. They only have $6 billion worth of debt and they have $17 billion in cash. When that gets up to around $20 billion, maybe a little bit more, they're going to dividend that out and I believe it will be around a $20 per share dividend. I love Costco. I love Kirkland Signature.

23:39 I love the experience shopping there. I love how good they treat their customers, too. They'll return, they'll accept returns for like anything. You can go there and just say you didn't like something and they'll be happy to help you out. Uh, it's one of the best companies overall. It's one of the best business models and the stock has been enormously profitable. Costco's looked at as both a growth company and a defensive company. It's looked at as one that's indestructible and an inflation hedge. So, when a company is this good overall, the market has now priced it up to a 50 PE ratio. It's far too expensive. And although I'm unwilling because I'm stubborn, I don't want to sell the company. I'm also unwilling to buy it. For me, this one's a hold, but the valuation I believe is unattractive right now. It's overpriced. I would not be buying Costco stock today. For me, it would be one that you put on the watch list. You wait, wait until investors find some reason to get bearish. Maybe it's because Walmart does something or Amazon does something that's scary. It spooks investors. The stock drops 20 25%. That's an opportunity to get in.

24:42 Right now, I'm not buying any Costco. Now, we're down to holding number 10, and this one's into it. It makes up around 4% of my portfolio. When we look at into it, this is a company that's going through a big sell-off. Investors are spooked. The stock price is going down. I still have gains in the company, but the way that it's going, this could enter into the red soon because investors seem very frightened about this one. Now, it's a $60,000 position with $9,000 in the green. When we look at in it, over the past year, it got as high as around $800 per share, and ever since then, it traded down sharply. Now, why did it trade down over this past month? That is because of a report that came out last month that said that into its set to compete with very difficult comps. Meaning last year they did so good, how can they possibly do well this year compared to last year. Now the funny thing about this stock is even though the stock price is going down, virtually everything with the company has improved. For example, revenue growth has continued to accelerate. So revenue is growing faster than it has the past couple of years. The revenue mix is getting better. The company is becoming more profitable with earnings per share shooting upwards, growing 42% over the past year. Free cash flow has hit all-time highs, growing and accelerating in its growth. I've been concerned for some time that even though init's a great company, it would get the SAS treatment. It would get the software company multiples. It would be bucketed into the same category as Salesforce or Adobe. If that happens, into its in trouble. So for me, even though the company fundamentally is great, it's growing strong, it's in a very strong position, it's growing very fast, but even so, if investors start to view it as a software company, the valuation could collapse. So that's the reason that I refuse to add to the position, I think it's more risky because of that valuation collapse potential. But fundamentally, the company's great. In number 11, we have Salesforce, which is also around a 4% position. This is one of the losers in my portfolio. So, it's a $56,000 position. It's around $10,000 in the red today. It's been ebbing and flowing between minus10,000 to around flat. And that's because I believe there's just too much pessimism today in SAS companies. Salesforce is software as a service. And even though that's out of favor, nobody loves software today, it's still generating good results. The company's still putting up solid numbers. It's still growing its revenue.

27:07 and it's just not getting any bid right now. Looking at Salesforce, it looks very bleak. The price action tells you that this company has something going wrong. The revenue growth has decelerated a little bit, but it's still growing by 9% per year. The agent force, their AI product, continues to gain customers and grow. We have the free cash flow. It jumped up big over the past two years and it's leveled off a little bit, but the free cash flow per share continues to grow. This looks like a strong free cash flow line. The earnings per share also are reaching all-time highs. When we look at the company, it trades at a high free cash flow yield and the PE ratio on a trailing or forward basis is the lowest that it's been in years. So, when I look at Salesforce, I'm reminded that one of the biggest mistakes investors make and especially one that leads to underperformance is continual turnover.

27:55 They're always buying and selling new stocks all the time. I'm trying to be a bit more patient with this one even though it's not performing and it's not doing well. I'll continue to track the fundamentals and as long as the fundamentals are moving in the right direction, I'll continue to own the stock. Holding number 12, we have Texas Roadhouse, which has been a big winner in the portfolio, and it's a restaurant. Restaurants have actually done really well for me. I should buy more restaurants. All of them that I've invested in have done relatively well.

28:20 The worst ones have been flat, but overall, I've been making a lot of money on restaurants. I really like the category. When we look at Texas Roadhouse, this one's around a 4% position. I actually took some gains in it. It's a $50,900 position with $47,000 in the green. So, I invested in this one. It went up around triple and then I took gains out of it. But Texas Roadhouse is a company that even to this day remains fundamentally excellent. It is an excellent company. When you go to Texas Roadhouse, you'll appreciate how well-managed and run it is. And this is something that even though it looks like it's just an average restaurant, not all restaurants are created equal. Texas Roadhouse has a very unique managerial and ownership structure where they make sure that the managers of the restaurant have some equity in the company or equity in their restaurant where they make money based on the performance of that unit. So the managers are directly tied to the performance of their restaurant and they need to meet certain standards. This creates an incredibly powerful incentive to have excellent perunit restaurant structure. For that reason, you get a company that just does what they know how to do very well and very consistently. They offer tremendous value. They offer consistency. They offer a product that isn't going out of style. Texas Roadhouse does steaks really well. They cook them fresh every single time. If they screw up on them, they'll remake it for you. The manager will make sure that your meals perfect.

29:45 When you look at Texas Roadhouse, it's also selling a product that doesn't really have that much disruption threat. Artificial intelligence isn't going to disrupt stakes. You can't make a fabricated fake version of a steak. You can't make a fraudulent version. Beyond Meat has already tried and it doesn't work. You can't make a steak that's not made out of beef. When you have Texas Roadhouse, you have something that cannot be disrupted. The best you can do is compete with it one-on-one by trying to offer a better meal at a better price with better service, which is very difficult to do when a company is executing this well. So, when I look at this one, it's just continued to perform. Look at this revenue growth. It looks near perfect. The only time it's actually had a blip was during CO when they're literally legally shut down.

30:30 Outside of that, the revenue growth has been off to the races. It's a restaurant, so I wouldn't have it as my largest position, but I like having this one in the portfolio, and I feel good about having $50,000 invested in it. Holding number 13, we have Equifax, which is around a 3% position. This one is a $45,000 position with $4,700 in the red. So, the stock hasn't really gone anywhere, but let's go ahead and take a look at what the company's actually doing. Equifax runs a business of knowing who you're doing business with. That's one of the core questions.

30:59 Very similarly to Mastercard, every time that you're lending money or you're hiring someone or you're giving out social security services or different types of welfare, you want to know that you're giving it to the right person because there's fraud, there's lying, and there's deceit. and every type of transaction that people do. So, Equifax sells a service that's called workforce verification or the twin number. It's basically a service that makes it so that when you're giving out money, you can first see who that person is. You can verify their work history. You can look at their work history in ADP or any job that they've held and you can do so instantly. The biggest segment is knowing who you're doing business with.

31:37 The other part, this orange part, is the credit reports part. So Equifax has been doing well, but ever since I bought this company, in fact almost immediately after, there was some big breaking news and dynamic changes in the competitive landscape between the credit rating agencies Equifax and FICO. They basically are going at war with each other, which of course isn't good for business. So I basically bought Equifax and then like a month later, FICO offers this super competitive product to Equifax trying to circumvent them. Then Equifax responds by offering their product for lower margins, lower cost and now you have this big battle between these two companies and investors don't like that. So it was some unfortunate timing. I didn't foresee that happening and that's part of the reason the stock has just been flat. It's been down a little bit. I still think the company will do fine, but right now if I'm looking at opportunities, I currently view Netflix and Amazon as a bigger opportunity than Equifax. In number 14, my smallest position at a 1.5% waiting is Duelingo. This one is a $20,000 position with $14,000 in the red. So, it's down roughly 50% and I just recently bought another $5,000 of the company at $150 per share. Now, when we're looking at Duelingo, it looks ugly in the portfolio. And those red numbers, they cause alarm. They cause you to look at it and think, "Wow, something must be going wrong." When you look at the numbers and the actual fundamentals of the company, you get the exact opposite message. Try to point to this chart and see what's going wrong. Try to point to this chart of their subscriber revenue and see what's going wrong. Or this one here, or this one here of their monthly active users, or this one here of the paid subscribers. All of them are growing up and to the right as per usual. The biggest thing that you could point to is that their revenue growth is decelerating, meaning that it's going a little bit slower quarter after quarter.

33:28 and investors are extrapolating that deceleration to believe that this company's being disrupted. Now, that's some very big extrapolations and I don't agree with the market on this. I don't think that Dualingo is being disrupted. I believe that right now it's normal for any company growing at 40% to have some level of deceleration and that should be fully expected. I never believe that Dualingo would grow at 40% revenue indefinitely. That's an insane revenue growth. The laws of large numbers means that revenue growth slows down at some point for every company is going to slow down. There's no company in the history of the world that's ever grown for 40% indefinitely or even for a prolonged period of time. So I believe that revenue deceleration was inevitable and we're seeing some of that in the market.

34:16 Part of that is because they're focusing less on monetization. They want to grow their daily active users. They want to grow their monthly active users. They want to get more people using the platform. and they want to focus better on education and improving their product than trying to just churn out more cash. But regardless, when I look at any of these metrics, even the financial metrics, the free cash flow per share growing 48%. This is an incredible company with incredible economics. It's one of the most popular consumer apps in the world, and it continues to grow in its total addressable market. Now, there's lots of opinions on Dualingo.

34:48 I've addressed many of the concerns in an hour-ong exclusive. You can view that if you join qualum.com. But outside of that, it's a company that not only am I bullish on, but I continue to add to. I think that it's presenting an opportunity today. I wouldn't build this into the largest position in your portfolio. I do think there's inherent risk as it's a smaller market cap company. It's no Google. It doesn't have an asset like YouTube. So, it's not something that I would make the biggest holding in a portfolio. I don't think that would be prudent. But I do believe that buying a company that's a $7 billion market cap with a billion dollars in cash, meaning that it's around $6 billion net of cash, buying a company that's $6 billion in market cap that's generating hundreds of millions in free cash flow that has 100 plus million people using it that's still growing very quickly to me does not seem like such a bad option. I believe there's a high probability that Dualingo has attractive returns from here. That's part of the reason that I still own the stock. So, that's every holding in my portfolio comprising $1.4 million. And if you want to follow along and see me grow this again to $3 million and $6 million, just make sure you subscribe to the channel. I'll do it here live. And I'll continue to add more companies. I might sell companies. You'll see some trading over time, but in most cases, I'm a long-term investor, so I continue to hold most of the same groups of companies for a very long period of time. That's going to be it for this episode. Hope you enjoyed. See you in the next one.