Three Motley Idiot contributors discuss it out.
On this podcast, Motley Idiot contributors Rick Munarriz, Lou Whiteman, and Jason Corridor talk about promoting choices they need they might take again. In addition they have a look at some shares that would thrive within the new regular. There’s additionally a sporty have a look at a few of this yr’s largest winners and losers.
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A full transcript is under.
This podcast was recorded on Sept. 08, 2025.
Rick Munarriz: Do not go on a path to promote destruction. Motley Idiot Cash begins. I am Rick Munarriz, and right this moment I am joined by two of my favourite voices in Fooldom, Jason Corridor and becoming a member of us for Hidden Gems, Lou Whiteman. We’re going to check out some shares that we imagine will head greater within the coming months. We’re additionally going to play a brand new sport known as Double Hassle. However first, buyers spend a very long time treating their shares as soul mates. Generally they need to be handled as cell mates. We spend loads of time discussing meat cutes in relation to inventory concepts. In the present day, I wish to speak about breakups. Extra to the purpose, what is the resolution to promote that you simply remorse probably the most? Mine is straightforward, however I wish to begin with you, Lou. Like making an attempt to determine what to do with a clean spreadsheet sq., let’s speak about your worst promote resolution.
Lou Whiteman: I am a horrible particular person to ask this as a result of it is so boring, Rick. Not as a result of I am good, not as a result of I haven’t got horrible errors, however reasonably I do not are likely to dabble within the early stage corporations that get these nice explosions later greater. I guarantee you, if I’d have owned Amazon or if I’d have owned Tesla again within the day, I’d have bought them, and I’d have regretted them now. However I do have loads of regrets, and I do suppose there is a lesson there as a result of I share a theme. Two actually good corporations I bought years in the past. One, Axos Monetary, the web financial institution. I feel it is up like 200% since then. I actually remorse that. The opposite is Loews, not the house enchancment firm, however the monetary resort conglomerate. It is nearly a double since then. The similarities, the rationale I remorse them, these aren’t the oh, my gosh, I might be a trillionaire now, however I will be trustworthy, I bought them with none good cause. I had no magic course of. I had no guideline. I principally acquired tired of them, and I noticed one thing shinier and flashier, and that’s the worst cause to promote. Not dramatic declines. This simply eats at me as a result of that is the hazard of performing on the whim as a substitute of with actual intent. Each time I have a look at these, I get somewhat unhappy inside.
Rick Munarriz: Lots of actual world relationships finish for a similar cause, Lou. Jason, what’s in your plate?
Jason Corridor: I may go together with one which Lou talked about. I may go together with Tesla. I purchased I imagine in round 2016. I bought a few years later for a good little revenue. Shares up 2,000% since I held. Rule Breaker buyers that that adopted the Rule Breakers portfolio have loved 16,000% in wins proudly owning Tesla. Now, clearly a monetary mistake, however unsure that I remorse it as a result of I did not promote it for issues concerning the enterprise as a lot as simply issues about Elon Musk’s capacity and curiosity in staying targeted on Tesla, and issues concerning the firm’s capacity to ship extra than simply EVs and possibly batteries. I may additionally go together with promoting half of my Nvidia stake about two years in the past. Inventory is up 446%, and it is by no means been under the value that I bought. I do not actually remorse that although as a result of I bought it at this level in my monetary life the place I am fascinated with place sizing, and it had grow to be such an out-sized place in my portfolio. I am nonetheless OK with that call although possibly I ought to have let that drawback grow to be a a lot larger drawback. However the one which I actually remorse, Rick, I even wrote about it on idiot.com in August of 2013, and that was promoting Microsoft, and it was proper as Steve Ballmer was leaving and set to get replaced by Satya Nadella. I bought fully as a result of I simply ran out of persistence at actually absolutely the mistaken time to have been operating out of persistence with Microsoft, and it has been an 18-bagger since I wrote that article and since I bought my shares.
Rick Munarriz: Ouch, Jason. I’ve a narrative to share too. Make investments lengthy sufficient, and you will get a 10-bagger. In case your intention is true, you could even wind up with 100-bagger, 1,000-bagger, a ten,000-bagger, or understandably much more uncommon. I’ve 100,000 bagger in my portfolio, and it is killing me. I purchased 500 shares of Netflix in October 2002 when it was a damaged IPO, just some months after hitting the market. After a pair of inventory splits, I’d have 7,000 shares value $8.7 million right this moment. Sadly, I’ve bought 99% of my shares over the previous 23 years. I bought 80% simply a few months into my shareholder tenure, and I remorse that much more than the opposite 19% I paired again a lot later because the place grew to become a bigger a part of my portfolio.
Lou Whiteman: My coronary heart goes out to all of us, and horrible tales. Additionally, I do not suppose we ought to be afraid to promote. If something, I really feel like I ought to be extra open to promoting for the correct causes. I feel you can also make unhealthy choices for those who refuse to promote. However once more, I come again to, mine, you must have a cause. It’s important to have a course of and keep it up. If the thesis has modified, you must in all probability promote. Should you do not imagine it anymore, it is promoting since you truly wish to use the cash for a life occasion, if you are going to get married or you’ve got youngsters. Look, that is a cause to promote. We will use the cash. I’ve tried to work on being extra purposeful to gradual issues down, to not react, not search for shiny objects. I feel you’ll be able to keep away from the worst regrets by simply have a plan, persist with it. It is simply, gosh, Jason, there’s a lot stimulus coming at us. How do you keep on a plan?
Jason Corridor: Yeah, Lou, you are proper. I feel remorse minimization is one thing that as buyers, now we have to sharpen that talent and actually construct that muscle. That does not imply ignoring errors and pretending like they do not occur. It’s important to be taught from them. However one of many issues that I’ve realized to do is to construct a framework that helps me cut back the unforced errors, principally making quick time period choices with long run investments. That is loads of instances the issues that leads us to promote too quickly, and higher align my actions with all of my monetary objectives, whether or not they’re the long run ones, but in addition the quick time period ones too. Aligning these choices primarily based on what the asset itself is will be one of the crucial essential steps to take. It is actually the one which’s helped me keep away from many of the worst errors. what? My coronary heart would not exit to you, Rick. My coronary heart would not exit to you, Lou. I do not really feel sorry for myself right here as a result of I have a look at my portfolio, and general, errors are a part of the method, and I do know all three of us have accomplished fairly nicely and we’re got down to attain all of our quick time period and long run monetary objectives. It is a part of the method, and hopefully, sharing these tales with others which have made errors. Fools listening, I hope this helps you out somewhat bit too.
Lou Whiteman: Yeah.
Rick Munarriz: My lesson is that you must by no means purchase a inventory simply because it goes down. By the identical metrics, you additionally should not promote a inventory simply because it goes up. I agree with you each, not dwelling on the promoting, be taught one thing and transfer on. Or within the phrases of Nicole Kidman as she walks into an empty AMC theater, one way or the other heartbreak feels good in a spot like this. Arising subsequent, we shift gears to speak about shares we like proper now. Lou, Jason, we’re not a boy band but, however like NSYNC, we will go over some buy-buy-buys.
The market got here underneath stress on Friday after every week jobs report made it much more doubtless that the Fed will begin to minimize charges later this month. Each transfer creates a chance. I wish to go across the room and see what shares is in your radar as a possible purchase forward of what may very well be three months of small however potent charge cuts. Jason, what’s one inventory you suppose will rise within the fall?
Jason Corridor: I’ll go on a limb right here, and I’ll convey up one which I do not suppose that charge cuts straight are the rationale that the inventory goes to go up, and I’ll provide you with a scorching tackle Starbucks. I’ll give it to you in so much much less time than it might have taken you to get your favourite cup of caffeine from that espresso big over the previous couple of years. Starbucks’ shares are principally on a six-year extremely risky dropping streak. Income progress has stalled. Tons of legit competitors has emerged all around the world. We have got one other IPO that is developing fairly quickly in that espresso area. I do know that feels like a horrible inventory to count on to go up, proper, Rick?
Rick Munarriz: Yeah, however you had me percolating, Jason. Why do you suppose Starbucks will rise within the fall?
Jason Corridor: In brief, Starbucks appears prefer it’s lastly working via years of issues which have damage the enterprise, and these issues have been occurring earlier than we realized they have been issues. The collision of an excessive amount of expertise that was driving a ton of orders bumped into an excessive amount of complexity behind the counter, together with numerous different poor operational choices, damage the shopper expertise, damage the corporate’s relations with its employees. This is a stat. Starbucks hasn’t had a optimistic quarter of comps. That is that essential measure of retail of gross sales at shops which were open for at the least one yr. Hasn’t had a optimistic comps quarter because the finish of 2023. That is seven straight destructive comp quarters, critically. Now, Brian Niccol, I imagine is the very best operator within the restaurant trade, was introduced in simply 13 months in the past to repair actually a damaged enterprise that is hooked up to an unbelievable model. There have been indicators of life the previous couple of quarters. Comps have nonetheless been down, however a lot much less worse than previous to Niccol’s implementing the Starbucks’ Again to Starbucks initiative. After we mix that optimistic momentum over the previous six months with a extremely brutal comp interval that was final yr’s fall quarter. It was notably unhealthy, comps have been down a brutal 7%. I feel the mix of low expectations and a low bar for what may seem like fairly good outcomes that units Starbucks as much as beat expectations when it experiences in October, and I feel there’s going to be momentum that may drive the fill up.
Rick Munarriz: Yeah, let’s hope so. Lou, inform us a couple of inventory that you simply like right here.
Lou Whiteman: Typical knowledge has it that small caps do higher in a charge minimize setting as a result of the price of borrowing ought to come down, and smaller corporations are typically extra on the sting in relation to debt. With that in thoughts, what I am watching is a inventory known as Montrose Environmental, ticker MEG. They’re solely about $1 billion market cap. They seem to be a roll up, and so they’re an energetic acquirer, in order that they have loads of debt, particularly 330 million debt in comparison with simply 11 million in money. They’re the kind of firm that will get an extended lifeline or life will get so much simpler for them if their price of debt can come down.
Rick Munarriz: Lou, I bear in mind you writing about Montrose a pair years in the past when it was a beneficiary of COVID-related testing. Why do you suppose it should rise within the fall?
Lou Whiteman: Yeah, that was extra of a distraction. What they do at a core, they supply vital companies with environmental cleanup and environmental air high quality monitoring, water high quality monitoring. These are long run wants, Rick. These are issues that we simply any administration, no matter’s occurring, there is a want for this. Montrose has loads of patents in areas like neutralizing micro plastics and getting them out of the water. What units them other than me is that this roll up. It’s a threat, however in an trade stuffed with, principally, small and regional gamers, they’re a nationwide participant. They have been a consolidator. They’ve the dimensions to tackle larger initiatives, and likewise giant company prospects which have operations all around the nation. They’ve the choice with Montrose to only do enterprise with one vendor. Should you’re a mining firm, you’ll be able to work with them nationwide as a substitute of getting to discover a companion in each market they function. That is no certain factor, but it surely’s intriguing, and if they will get borrowing charges down, their odds of success enhance.
Jason Corridor: One of many issues that is so compelling about what you are speaking about, Lou, is the market is suffering from these sleepy little underappreciated corporations in markets like that which are massively fragmented which have a very good report of rolling up and consolidating. I feel that is value having a look at.
Lou Whiteman: It is simply costly, and if the debt will get cheaper, simply life will get simpler.
Rick Munarriz: Yeah, discover a consolidator in a fragmented sector, and you can also make some huge cash that approach. My inventory is Zillow Group. There are two lessons of shares right here, however I am going with the Class A voting inventory buying and selling on the ticker image ZG. Zillow operates the main residential actual property portal with 243 million common month-to-month distinctive customers.
Jason Corridor: Wow, housing, not a fantastic market proper now, Rick. What’s acquired you considering that Zillow can rise within the fall?
Rick Munarriz: If financing charges begin shifting markedly decrease within the coming months, it may breathe new life into the depressed residential actual property market that has seen its transaction quantity inch simply 1-2% greater over the previous yr. Demand will spike as homebuyers money in on getting extra bang for his or her mortgage buck. Provide may also lastly begin to ease as soon as householders aren’t afraid to money out of their low charges on present digs. Zillow lights the housewarming candle on each ends. The surge in demand creates extra app and web site site visitors, and that is a dinner bell for the actual property brokers and different advertisers paying for publicity to this profitable viewers. Extra houses hitting the market will make it much more essential to pay as much as stand out on the platform. Zillow’s inventory is thrashing the market over the previous yr, but it surely’s additionally flat with the place it was 5 years in the past. It would not appear honest. Zillow is again to posting double-digit income progress, and adjusted earnings is rising even quicker. It is doing nicely now. It ought to actually be doing nicely just a few months from now.
Lou Whiteman: Rick, I really like the inventory concept, however I am extra intrigued with the three of us as a boy band. We have to speak about that extra after that is over.
Rick Munarriz: We’ll, in concord. After we get again, I escape a brand new sport to see if Jason and Lou can kind this yr’s largest gainers from its largest losers. Stick round. We’ll finish the present in sync.
Jason, Lou, from our tradition Change Program with Hidden Gems, let’s play Double Hassle. Let’s go over the principles as a result of it is a model new sport. I’ll point out a inventory that is been on the transfer this yr. Should you suppose it has greater than doubled, say double. Should you suppose it is misplaced greater than half of its worth in 2025, say hassle. Easy sufficient, let’s go. First one, Freshpet, FRPT, the corporate behind refrigerated canine and cat meals. Double or hassle, Jason?
Lou Whiteman: I’ll say hassle. I hear about it a lot, however possibly. I used to be going to say double. Nicely, simply let’s have enjoyable.
Rick Munarriz: We’re having enjoyable. However Jason is correct, hassle, down 63%. Freshpet continues to be posting double digit gross sales progress, but it surely started the yr with a steep valuation that is excessive even in canine years. Subsequent up, Wayfair. ticker image W, on-line furnishings retailer. We in all probability know this firm. Double or hassle, Lou?
Lou Whiteman: I have not personally purchased something shortly, however I feel different individuals have. I will say double right here.
Jason Corridor: I feel it is bounced again. It is struggled a lot popping out of the pandemic. I feel there’s been somewhat little bit of a restoration.
Rick Munarriz: Yeah, it has been fairly a restoration, at the least for the inventory. Up 103%, so a double, you are each right. Wayfair is getting market share throughout a cyclical downturn, however in its newest quarter, adjusted earnings practically doubled. Third up, we’re touring distant for Banco Santander, SAN is the ticker image, Spain’s largest financial institution. Double or hassle? Begin with you, Jason.
Jason Corridor: Man, I feel I am mistaken right here, however I’ll say double as a result of I do know European banks have simply taken it on the chin, however I feel there’s some life coming again into that sector.
Lou Whiteman: Yeah, positively double for me, simply the place Europe’s going.
Rick Munarriz: Yeah, up 110%. The banking big has been increasing throughout Europe and Latin America for a while, and early this yr, it shaped a partnership with Verizon to spice up its presence within the US. Subsequent up, C3.ai. Ticker image, AI. A supplier of AI software program instruments for the power trade and different enterprises. Double or hassle, Lou?
Lou Whiteman: That is hassle.
Jason Corridor: Yeah, completely hassle. I do not wish to get sued, so I am not going to say something however hassle.
Rick Munarriz: Yeah, down 55%, web losses hold widening, and income is now going the mistaken approach. Having some challenges there, regardless of its superior ticker image for the instances. Lastly, Newegg Commerce, NEGG, shopper electronics retailer. Double or hassle, Jason?
Jason Corridor: I’ll say double. I am making a wild guess right here. Utterly coming from the angle of a shopper of pc electronics, they’re nonetheless the gold customary.
Lou Whiteman: They have been loopy some time in the past. They’ve come again to Earth. It isn’t hassle. It is acquired to be a double.
Rick Munarriz: Yeah, not only a double. Up 452%.
Lou Whiteman: Nonetheless, wow.
Rick Munarriz: Yeah, income progress has turned optimistic in 2025 after three years of decline. That is the nice factor. However what’s actually carrying it’s principally the truth that it is using the brand new wave of meme inventory, in order that’s occurring proper now for that inventory. However clearly, the corporate that is fundamentals at the least are beginning to flip the nook. Jason and Lou, thanks for going over the highs and lows of investing and worth strikes with me right this moment. If you wish to give the boy band a shot, we will attempt attempt attempt.
Lou Whiteman: Rick, I am bullish on you. You are a double.
Rick Munarriz: That feels like hassle. Thanks. Thanks to the 2 of you. A double dose of knowledge to my me them. As at all times, individuals on this system might have curiosity within the shares they speak about, and the Motley Idiot might have formal suggestions for or in opposition to, so do not buy or promote shares primarily based solely on what you hear. All private finance content material follows Motley Idiot editorial requirements and isn’t accepted by advertisers. Commercials are sponsored content material and supplied for informational functions solely. To see our full promoting disclosures, please try our present notes. For Jason Corridor, Lou Whiteman, and all the Motley Idiot Cash group, I am Rick Munarriz. Could your days be sunny and your life, Motley Idiot Cash.
